Nonlinear and complementary effects of responsive and proactive market orientation on firms’ competitive advantage

2019 ◽  
Vol 32 (4) ◽  
pp. 841-859
Author(s):  
Fabian F. Osorio Tinoco ◽  
Miguel Hernández-Espallardo ◽  
Augusto Rodriguez-Orejuela
Keyword(s):  
Competitive Advantage ◽  
Market Orientation ◽  
Hierarchical Regression ◽  
Future Research ◽  
Manufacturing Companies ◽  
Positive Interaction ◽  
Cross Sectional ◽  
Content Type ◽  
Positive Effects ◽  
Proactive Market Orientation

Purpose The purpose of this paper is to clarify how responsive market orientation (RMO) and proactive market orientation (PMO) create competitive advantage. Design/methodology/approach Nonlinear and interaction effects are tested by applying hierarchical regression analysis to a sample of 272 Colombian manufacturing companies. Findings The results show that although market orientation promotes the competitive advantage of a business, both approaches – responsive and proactive – exhibit saturation effects and a positive interaction. Research limitations/implications The main limitation of this study is the cross-sectional design and the use of a single source for data collection. It is suggested that future research includes different orientations combined with these two market orientations – responsive and proactive – for achieving competitive advantage. In addition, further studies could replicate this analysis for different environmental conditions. Originality/value This paper simultaneously evaluates the nonlinear and complementary effects of RMO and PMO. From a strategic standpoint, it presents an empirical confirmation of the familiarity trap, the failure trap and the positive effects of combining RMO and PMO.

Intellectual capital and competitive advantage in Uganda’s microfinance industry

2017 ◽  
Vol 8 (4) ◽  
pp. 498-514 ◽  
Author(s):  
Nixon Kamukama ◽  
Tumwine Sulait
Keyword(s):  
Competitive Advantage ◽  
Intellectual Capital ◽  
Methodological Approach ◽  
Hierarchical Regression ◽  
Future Research ◽  
Individual Contribution ◽  
Microfinance Institutions ◽  
Cross Sectional ◽  
Content Type ◽  
The Individual

Purpose The paper examines individual contribution of intellectual capital elements to competitive advantage. The purpose of this paper is to explore the weight of individual intellectual capital elements in explaining competitive advantage in Uganda’s microfinance industry. Design/methodology/approach Hierarchical regression was used because of its capacity to indicate precisely what happens to the model as different predictor variables are introduced. Findings This study confirms that the three intellectual capital elements are the strong predictors of competitive advantage and they account for 44 percent of variance in competitive advantage. However, the order of importance of these variables in explaining the variance in competitive advantage in the microfinance industry (basing on their standardized β values) is relational capital, structural capital and human capital. Research limitations/implications Only a single research methodological approach was employed and future research through interviews could be undertaken to triangulate the data. Furthermore, the findings from the present study are cross-sectional; future research should be undertaken to examine the longitudinal effects of intellectual capital elements. Practical implications The findings can help the management to intensify initiatives to encourage greater understanding and acceptance of the concept of intellectual capital that boosts competitive edge in the industry. Originality/value This is the first study that focuses on testing the individual contribution of intellectual capital dimensions to competitive advantage in Uganda’s microfinance institutions.

Creative climate and organisational resilience: the mediating role of innovation

2015 ◽  
Vol 23 (4) ◽  
pp. 564-587 ◽  
Author(s):  
Samuel Mafabi ◽  
John C. Munene ◽  
Augustine Ahiauzu
Keyword(s):  
Public Sector ◽  
Hierarchical Regression ◽  
Future Research ◽  
Long Term Effects ◽  
Cross Sectional ◽  
Content Type ◽  
Mediating Role ◽  
Creative Climate ◽  
Cross Sectional Design

Purpose – This study aims to investigate the mediation role of innovation between creative climate and organisational resilience. Design/methodology/approach – The study used a cross-sectional design to collect data about the study variables from parastatal managers using self-administered questionnaires. Hierarchical regression and Medigraph were used to test hypotheses. Findings – Creative climate has a significant association with innovation and organisational resilience. Innovation partially mediates the effect of creative climate on organisational resilience. Research limitations/implications – The sample size was small involving only parastatals. The results may be different in an expanded public sector. The study was cross-sectional that is limited in examining long-term effects of creative climate and innovation on organisational resilience. Therefore, a longitudinal study design is proposed for future research. Practical implications – Managers in parastatals need to provide a conducive creative climate that promotes innovations for organisational resilience. Originality/value – The study provides empirical evidence on the mediation role of innovation in the relationship between creative climate and organisational resilience in a public sector. The evidence shows the contribution of innovation in striving for organisational resilience based on the creative climate.

Competitive advantage

2017 ◽  
Vol 8 (2) ◽  
pp. 221-234 ◽  
Author(s):  
Nixon Kamukama ◽  
Diana Susan Kyomuhangi ◽  
Richard Akisimire ◽  
Laura A. Orobia
Keyword(s):  
Financial Performance ◽  
Competitive Advantage ◽  
Commercial Banks ◽  
Bootstrap Method ◽  
Mediation Effect ◽  
Future Research ◽  
Cross Sectional ◽  
Content Type ◽  
Managerial Competence ◽  
The Relationship

Purpose The purpose of this paper is to examine the mediating role of competitive advantage in the relationship between managerial competence and financial performance of commercial banks in Uganda. Design/methodology/approach A cross-sectional survey was employed using 22 fully licensed and operational commercial banks in Uganda. Data were analyzed using descriptive statistics, zero order correlation and hierarchical regression analyses. Further, the bootstrap method was used to test the mediation effect of competitive advantage. All the analyses were performed using SPSS v21. Findings The findings reinforce the important position of managerial competence on financial performance of commercial banks. First, managerial competence enhances firms’ competitive advantage. Second, managerial competence has an indirect effect on financial performance through competitive advantage. Overall, managerial competence and competitive advantage are strong predictors of financial performance of commercial banks. Research limitations/implications The study employed only a single research methodological approach, therefore future research could be undertaken using a mixed approach and triangulate to compare findings. Furthermore, the findings from the present study are cross-sectional, considering the limitations there in, a longitudinal approach should be explored. Practical implications Emphasis should be put on improving the knowledge and skills of managers so as to attain a competitive edge in the market and thus register increased profits. This will help practitioners make legitimate decisions and conclusions that can foster business growth. Originality/value A mediation effect of competitive advantage in the relationship between managerial competence and financial performance was tested; previous studies have tended to test the direct effects.

Effect of entrepreneurial and market orientation on consumer engagement and performance of manufacturing SMEs

2018 ◽  
Vol 41 (1) ◽  
pp. 133-147 ◽  
Author(s):  
Abdullah Al Mamun ◽  
Muhammad Mohiuddin ◽  
Syed Ali Fazal ◽  
Ghazali Bin Ahmad
Keyword(s):  
Market Orientation ◽  
Peninsular Malaysia ◽  
Industrialized Countries ◽  
Consumer Engagement ◽  
Cross Sectional ◽  
Content Type ◽  
Positive Effects ◽  
Multi Stage ◽  
Consumer Orientation ◽  
And Performance

Purpose This study aims to examine the effect of entrepreneurial and market orientations on consumer engagement and the performance of manufacturing small- and medium-sized enterprises (SMEs) under the premise of the resource-based view (RBV) theory. Design/methodology/approach This study adopts a cross-sectional design, and quantitative data were collected from 360 manufacturing SMEs in Peninsular Malaysia. SMEs were selected using a stratified multi-stage sampling method from a total of 37,861 manufacturing SMEs. The respondents were selected from Selangor, Johor, Penang, Perak, Kelantan and Terengganu, as these states make up the majority (79 per cent) of the manufacturing SMEs in Malaysia. Findings Entrepreneurial and market orientations have statistically significant positive effects on consumer engagement. Consumer engagement in turn positively affects the performance of manufacturing SMEs in Peninsular Malaysia. Findings also revealed a partial mediation of consumer engagement between entrepreneurial and market orientations on performance. Research limitations/implications A larger sample size may improve the generalizability of the findings. Managers may be able to apply the findings of this paper in developing strategies for their manufacturing SMEs, specifically, by focusing on entrepreneurial and market orientation to raise consumer engagement and to improve the overall performances of their SMEs. Originality/value This study focuses on manufacturing SMEs in Malaysia, an emerging country with conditions unique to other industrialized countries. This study aims to demonstrate that integrated entrepreneurial and market orientations have significant effects on SMEs’ performance. This relationship could be mediated by consumer engagement. Specifically, consumer orientation may influence the effect of entrepreneurial and market orientations on overall firm performance..

Market orientation, entrepreneurial orientation and performance in emerging markets

2015 ◽  
Vol 10 (3) ◽  
pp. 560-571 ◽  
Author(s):  
Tina Gruber-Muecke ◽  
Katharina Maria Hofer
Keyword(s):  
Firm Performance ◽  
Emerging Markets ◽  
Market Orientation ◽  
Entrepreneurial Orientation ◽  
Emerging Market ◽  
Cross Sectional Study ◽  
Research Literature ◽  
Future Research ◽  
Cross Sectional ◽  
Content Type

Purpose – The purpose of this paper is to examine how market-oriented and entrepreneurial-oriented behaviour drives firm performance in an emerging markets context. Design/methodology/approach – Using data from 170 Austrian exporters to Central and Eastern Europe, the authors test a conceptual model including market-oriented and entrepreneurial-oriented practices as predictors of performance. Findings – Results indicate that both market-orientated and entrepreneurial-oriented strategies have positive performance effects in emerging markets. Research limitations/implications – A limitation is that firms were not examined longitudinally, as this is a cross-sectional study. Future research may include longitudinal studies or focus on other markets/regions. Practical implications – Firms are encouraged to adopt a market-oriented and entrepreneurial-oriented strategy to achieve better results in international, emerging market operations. Originality/value – The authors add to the emerging economy research literature by studying the relevance of market orientation and entrepreneurial orientation in determining firm performance in emerging markets. Furthermore, this study supports the generalizability of findings from an advanced to an emerging economies research setting.

Internationalisation of SMEs: does entrepreneurial orientation matter?

2017 ◽  
Vol 13 (2) ◽  
pp. 96-113 ◽  
Author(s):  
Mohammed Ngoma ◽  
Abaho Ernest ◽  
Sudi Nangoli ◽  
Kusemererwa Christopher
Keyword(s):  
Entrepreneurial Orientation ◽  
Research Question ◽  
Point Of View ◽  
Hierarchical Regression ◽  
Future Research ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
Content Type ◽  
Bivariate Correlation ◽  
Self Administered Questionnaire

Purpose The purpose of this paper is to investigate entrepreneurial orientation (EO) as a predictor of internationalisation of small- and medium-sized enterprises (SMEs). The key research question is “to what extent do the dimensions of EO (innovativeness, proactiveness and risk taking) predict internationalisation of SMEs?” Design/methodology/approach The study adopts a cross-sectional survey to collect data from 282 SMEs, with the use of a multi-dimensional self-administered questionnaire. All the measures in this study were adopted from existing instruments from previous studies and all showed a CVI above 0.8. Data were analysed quantitatively using descriptive statistics, correlations and hierarchical regression. The nature and strength of the relationships between the variables was tested using the zero-order bivariate correlation analysis. Findings The study establishes a significant relationship between the dimensions of EO and internationalisation of SMEs. Research limitations/implications This paper contributes to the corpus of literature on internationalisation of SMEs. Future research should consider the major constructs from a longitudinal point of view given that cross-sectional studies sometimes fail to examine the interaction effect of the variables. Practical implications The paper illustrates how EO dimensions can influence an entrepreneur’s decision to go international especially handling the process of internationalisation and its dynamics. Originality/value The paper provides contextual evidence from a developing country to the effect that as local investors get more inclined to EO, they in the process ease their way to joining the international business arena.

IT and relationship learning in networks as drivers of green innovation and customer capital: evidence from the automobile sector

2016 ◽  
Vol 20 (3) ◽  
pp. 444-464 ◽  
Author(s):  
Antonio Leal-Millán ◽  
Jose Luis Roldán ◽  
Antonio L. Leal-Rodríguez ◽  
Jaime Ortega-Gutiérrez
Keyword(s):  
Competitive Advantage ◽  
Manufacturing Sector ◽  
Personal Contact ◽  
Future Research ◽  
Sustainable Competitive Advantage ◽  
Green Innovation ◽  
Content Type ◽  
Positive Effects ◽  
Strategic Assets ◽  
Customer Capital

Purpose Despite the positive effects of customer capital (CC), questions remain over how managers enable CC growth by applying their skills and capabilities through managerial actions and strategies, such as developing information technology (IT) capability, fostering relationship learning (RL) activities and developing green innovation performance (GIP) with clients. These questions are especially pertinent in small and medium-sized enterprises and automotive industry companies that operate through supply chains, where knowledge about customers is likely to result from personal contact between customers and organisational members. The purpose of this paper is to analyse the extent to which these managerial actions were more likely to lead to the successful creation of CC. Design/methodology/approach Using the partial least squares technique, this paper studies how these three managerial actions impact on CC. To do so, data from 140 companies in the Spanish automotive components manufacturing sector have been used. Findings The findings support the influence of RL on both GIP and CC. RL is a key managerial action in exploiting customer information and knowledge advantages, enabling firms to structure and reconfigure resources to produce new ways to compete and to satisfy stakeholders. In addition, results show that GIP is a determinant of CC because of its contribution to achieving sustainable competitive advantage, with GIP performing a mediating role in the relationship between RL and CC. A second contribution shows that IT is not in itself able to yield a competitive advantage, thereby validating the existence of complementary or co-focused strategic assets such as RL and GIP, which enhance IT’s influence on CC. Research limitations/implications The authors were unable to explore the subtleties of the processes over time. Future research should include a longitudinal study. Practical implications This study considers RL an essential factor in achieving both GIP and CC. Consequently, managers should seek to build strong RL cultures. In addition, this study shows that IT is not in itself able to yield a competitive advantage, thereby validating the existence of complementary or co-focused strategic assets such as RL and GIP. Originality/value No study has ever examined these three antecedent variables (IT, RL and GIP) together, with the aim to examine their effects on CC.

The role of external customer mind-set among service employees

2015 ◽  
Vol 29 (1) ◽  
pp. 38-48 ◽  
Author(s):  
Rajesh Iyer ◽  
Mark C Johlke
Keyword(s):  
Market Orientation ◽  
Work Experience ◽  
Work Motivation ◽  
Future Research ◽  
Front Line ◽  
Cross Sectional ◽  
Content Type ◽  
Subsequent Performance ◽  
Southeastern Us ◽  
Mind Set

Purpose – The purpose of this study is to develop and test a model of the antecedents and outcomes of one aspect of customer mind-set (CMS) – external CMS (ECMS) — among front-line employees. The goal of this paper is to help managers address customer-level orientation by further investigating the external dimension of CMS (referred to as ECMS). Design/methodology/approach – Data were gathered from a sample of front-line employees of a variety of firms located in a mid-sized southeastern US city. Findings – The results indicate that greater amounts of job autonomy and job satisfaction are positively associated with front-line employee ECMS, while the employee’s global role ambiguity, customer-specific ambiguity and role conflict are negatively associated with ECMS. In turn, front-line employee ECMS is associated with increased work motivation and sales performance. Research limitations/implications – The data are cross-sectional in nature; so, strictly causal relations cannot be inferred from these results. Also, the sample primarily consists of younger females with less work experience and who are employed at smaller organizations. Therefore, future research should further test these relations in different samples to increase the robustness of the results. Practical implications – This research utilizes a rich description of the front-line employee’s job attitudes and work characteristics to build a model describing their association with the extent to which the ideas of market orientation have taken hold at the operational level and their relationship with the employee’s motivation and subsequent performance. It shows that both internal and external characteristics are associated with front-line employee ECMS, which itself is very strongly related to desirable job outcomes. Originality/value – The firm’s financial performance is most directly affected by how well it serves its external customers. However, there has been no research on the role and the consequences of employee ECMS. There are only a few studies (less than five) that have empirically explored the CMS. Therefore, the many potential benefits from a deeper understanding of a market orientation culture and behaviors at the level of the front-line employee remain unclear, particularly in regards to its ECMS dimension.

Mediating roles of capabilities between R&D-marketing integration and business performance

2018 ◽  
Vol 12 (1) ◽  
pp. 81-98 ◽  
Author(s):  
Abdul Ali ◽  
Ken Matsuno
Keyword(s):  
Structural Equation ◽  
Business Performance ◽  
Equation Modeling ◽  
Future Research ◽  
Marketing Capability ◽  
Manufacturing Companies ◽  
Performance Impact ◽  
Cross Sectional ◽  
Content Type ◽  
Technical Capability

Purpose Following the resource-based view, this paper aims to investigate the business performance impact of R&D–marketing integration and marketing and technical capabilities at the organization level in a non-Western context. Specifically, this work explores the mediating role of the two capabilities, while accounting for potential moderating effects and under the contingency of technological turbulence. Design/methodology/approach Survey data were collected from the paired marketing and R&D executives of 207 Japanese manufacturing companies. Data were analyzed using structural equation modeling. Findings The results show that marketing capability – by itself and also coupled with technical capability – mediates the relationship between R&D–marketing integration and business performance, while technical capability alone does not. Research limitations/implications This study’s subjective performance measures and cross-sectional design have inherent limitations. The exploration of antecedents and other contingency variables would provide ample scope for future research. Practical implications The findings suggest that managers need to build these two capabilities, especially marketing capability, because R&D–marketing integration by itself will not be sufficient to improve business performance. Originality/value This study provides empirical evidence for a new theoretical link through which R&D–marketing integration impacts business performance at the program level. The findings may also partially explain the mixed and conflicting results often found in past studies.

The influence of board characteristics on corporate illegality

2017 ◽  
Vol 25 (2) ◽  
pp. 133-148 ◽  
Author(s):  
Gundeep Kaur Virk
Keyword(s):  
Board Of Directors ◽  
Large Fraction ◽  
Future Research ◽  
Manufacturing Companies ◽  
Cross Sectional ◽  
Data Set ◽  
Content Type ◽  
The Board Of Directors ◽  
The Impact ◽  
The Relationship

Purpose In light of frequent corporate scams and frauds, this paper aims to investigate the relationship of corporate illegality with the board of directors’ characteristics in Indian manufacturing companies. Design/methodology/approach The board of director characteristics of sample companies charged with violation of the Securities Exchange Board of India (SEBI) regulations from 2008 to 2013 are matched to an equivalent-sized control data set. A cross-sectional logistic regression model is applied to test the hypothesized association. Findings The findings suggest that the SEBI violations are less likely to occur when a large fraction of the board of directors consists of independent directors and when the individual directors have multiple appointments on the boards of other companies. However, it is observed that the size of the board and its meetings have no observable association with violation of the SEBI regulations. Research limitations/implications This work is likely to aid future research in exploring the impact of governance mechanisms on the occurrence of illegality. In future, studies may be conducted to investigate the probability of illegal corporate events using a larger sample size and corporate governance variables which have not been examined in the present study. Practical implications The analysis provides corporate policy makers and investors an insight to evaluate the vulnerability of a company being engaged in illegality based on its board features. Originality/value The present study is distinct from previous reports as it makes a novel attempt to gauge the relationship between the board of directors’ characteristics and the occurrence of illegality in the Indian corporate section.

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