Target Costing, Business Model Innovation, and Firm Performance: An Empirical Analysis of Chinese Firms

Author(s):  
Hao-Chen Huang ◽  
Mei-Chi Lai ◽  
Meng-Chun Kao ◽  
Yi-Chun Chen
2019 ◽  
Vol 22 (3) ◽  
pp. 541-561 ◽  
Author(s):  
Changwei Pang ◽  
Qiong Wang ◽  
Yuan Li ◽  
Guang Duan

Purpose The purpose of this paper is to examine how business model innovation (BMI) mediates the relationship between integrative capability, business strategy and firm performance. Design/methodology/approach A literature review provides the model and hypotheses. Using a sample of 165 Chinese firms, the authors conduct the examination using a theoretical model and hypotheses following standard analysis methods. Findings The results show that BMI positively mediates the relationship between integrative capability and firm performance. Moreover, a differentiation strategy positively moderates the link between BMI and firm performance, while a cost leadership strategy presents a significantly negative moderating effect. Research limitations/implications First, the authors test the hypotheses using data from China; thus data from other emerging economies should be tested. Second, the authors use cross-sectional data in this study making it impossible to verify the dynamic developed in the process of BMI; a longitudinal study could provide a more comprehensive understanding. Third, the authors consider one intermediate mechanism to test the relationship of integrative capability and firm performance; additional factors may link integrative capability and firm performance. Practical implications The mediating effect of BMI suggests managers should pay more attention to BMI to improve firm performance, and they should understand that BMI’s role varies across different business strategies. Originality/value The paper is original in its investigation of the effect of integrative capability and BMI on firm performance using data from China and demonstrates the mediating effect of BMI on the relationship between integrative capability and firm performance.


Author(s):  
José Pablo Abeal Vázquez ◽  
Begoña A. García ◽  
Javier Tarrío Saavedra

This chapter aims to contrast if internationalization is a key element to explain the performance of a company, especially focusing on small and medium-size entreprises (SMEs), and to identify if a business model (BM) based on exports leads to more successful companies. There is a broad theoretical body and a representative set of methodological approaches in this area of knowledge; however, the conclusions reached are very different and in many cases hardly comparable, being limited to a specific temporal and geographical scope. For the purpose of giving a step further in the investigation of BM based on exports, the SMEs from the Autonomous Community of Galicia (Spain) are analyzed through an exploratory research over the 2002-2013 period. The empirical analysis takes into account a range of firm variables linked to both firm management and fixed factors, such as the type of sector, the location, and the economic situation.


2020 ◽  
pp. 1771-1796
Author(s):  
Rohit Kumar ◽  
Amit Kumar

The practices facilitating Corporate Entrepreneurship Capability (CEC), an intangible organizational capability embedded in an enterprise's culture are particularly important to innovation. The existing literature suggest the important of combining practices, however, there is a distinct lack of theoretical as well as empirical studies that have explored how these practices work together to promote and facilitate CEC. While different alternatives to realize the simultaneous reconciliation of exploration and exploitation have been proposed, how organizations build CEC is not fully understood. In this chapter, the authors first define CEC and then explain its relationship with Business Model Innovation (BMI), Innovation Ambidexterity (IA) and firm performance. The chapter is a theoretical contribution and builds on the Schumpeter view on entrepreneurship and innovation, resource-based theory of the firm and corporate entrepreneurship literature. The authors have suggested alternate contingency models for testing relationships among CEC, BMI, IA and Firm Performance.


2020 ◽  
pp. 214-239
Author(s):  
Rohit Kumar ◽  
Amit Kumar

The practices facilitating Corporate Entrepreneurship Capability (CEC), an intangible organizational capability embedded in an enterprise's culture are particularly important to innovation. The existing literature suggest the important of combining practices, however, there is a distinct lack of theoretical as well as empirical studies that have explored how these practices work together to promote and facilitate CEC. While different alternatives to realize the simultaneous reconciliation of exploration and exploitation have been proposed, how organizations build CEC is not fully understood. In this chapter, the authors first define CEC and then explain its relationship with Business Model Innovation (BMI), Innovation Ambidexterity (IA) and firm performance. The chapter is a theoretical contribution and builds on the Schumpeter view on entrepreneurship and innovation, resource-based theory of the firm and corporate entrepreneurship literature. The authors have suggested alternate contingency models for testing relationships among CEC, BMI, IA and Firm Performance.


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