When do customer orientation and innovation capabilities matter? An investigation of contextual impacts

2019 ◽  
Vol 32 (2) ◽  
pp. 445-472 ◽  
Author(s):  
Olimpia C. Racela ◽  
Amonrat Thoumrungroje
Keyword(s):  
Firm Performance ◽  
Firm Size ◽  
Customer Value ◽  
Structural Equation ◽  
Customer Orientation ◽  
Idea Generation ◽  
Equation Modeling ◽  
Innovation Capability ◽  
Content Type ◽  
Organizational Creativity

Purpose Grounded on resource-advantage (R-A) theory, the purpose of this paper is to investigate how customer orientation, as a higher-order or interconnected operant resource, enhances firm performance through creativity capability (i.e. idea generation and problem solving) and innovation capability (i.e. the implementation of creative ideas) – among firms of different sizes and within different market contexts. The authors conceptualize customer orientation as a firm’s capacity to create and deliver superior customer value through the processing of market intelligence, as demonstrated by the firm’s composite operant resources of market-sensing, customer-relating and customer-response capabilities. Design/methodology/approach Data were collected via qualitative in-depth interviews for scale development followed by a mail questionnaire survey for quantitative responses. A final sample size of 190 firms based in Thailand participated and the data were analyzed using structural equation modeling and bootstrapping multi-group comparisons to investigate the hypothesized mediation and moderation effects. Findings Customer orientation enhances organizational creativity and innovation capabilities, which improve firm revenue and financial performance. The relationships among customer orientation, creativity capability, innovation capability and firm performance vary depending on firm size, market dynamism and customer type. Practical implications Managers need to consider contextual factors, particularly firm size, market dynamism and the nature of their buyer markets as key contingencies in their resource deployment decisions intended to develop customer orientation and innovation capabilities. Originality/value This study advocates R-A theory by empirically revealing how different hierarchical resources within a firm are intertwined to provide firms with competitive R-A. The findings further highlight a contingent nature of customer orientation–innovation–performance relationships among firms in an emerging economy.

scholarly journals Relational resources and performance of Chinese third-party logistics providers

2017 ◽  
Vol 47 (9) ◽  
pp. 864-883 ◽  
Author(s):  
Yongyi Shou ◽  
Jinan Shao ◽  
Anlan Chen
Keyword(s):  
Firm Performance ◽  
Structural Equation ◽  
Third Party ◽  
Superior Performance ◽  
Equation Modeling ◽  
Third Party Logistics ◽  
Innovation Capability ◽  
Content Type ◽  
The Third Party Logistics ◽  
Relational Resources

Purpose Drawing upon the theory of the resource-based view, the purpose of this paper is to examine the relationships among relational resources, innovation capability and firm performance in the third-party logistics (3PL) industry. Design/methodology/approach Based on data collected from 203 3PL providers in China, this study adopts the approach of structural equation modeling to examine the hypothesized relationships among relational resources, innovation capability and firm performance. Findings The results of this research confirm that relational resources have a positive effect on firm performance. However, the effect is not direct, but realized through the mediation of innovation capability. This study indicates that relational resources are important for 3PL providers to achieve superior performance, and innovation capability plays a mediating role between relational resources and firm performance. Originality/value The main contributions of this paper to the literature are twofold. First, it extends the extant research by highlighting the mediating mechanism of innovation capability in relational resources’ influence on firm performance. Second, it advances the existing perspectives on 3PL firms in the Chinese context and this sheds light on logistics research on emerging markets.

Environmental management in small and medium enterprises: the role of customer orientation and firm performance

2019 ◽  
Vol 34 (8) ◽  
pp. 1779-1790
Author(s):  
Euehun Lee ◽  
Sang Hyun Jo ◽  
Haeyoung Jeong
Keyword(s):  
Environmental Management ◽  
Firm Performance ◽  
Structural Equation ◽  
Customer Orientation ◽  
Small And Medium Enterprises ◽  
Equation Modeling ◽  
Related Factors ◽  
Content Type ◽  
Show Evidence ◽  
Medium Enterprises

Purpose The purpose of this study is to explore the antecedents and effects of environmental management (EM) and its related factors on firm performance from the perspective of small and medium-sized enterprises (SMEs). Most previous studies have focused on determining the effects of environmental efforts on environmental performance. This study aims to illustrate that effective EM – along with other factors such as customer emphasis, recognition and capabilities – generates positive firm performance for SMEs. Additionally, the stdy aims to show evidence that EM is worth proactively pursuing rather than being viewed as a burden and being subject to reactive task by SMEs. Design/methodology/approach The authors collected data via a questionnaire from 300 SMEs through a professional research company. They then used the data to assess a model and determine the relationships between the different constructs using structural equation modeling. Findings The results testify to the optimal structure between the study’s constructs: customer emphasis on EM, recognition and implementation of EM, capabilities and the performance of SMEs that have implemented EM. The main finding is that EM has a positive relationship to firm performance. Originality/value This study’s findings could likely persuade SMEs and policymakers to more proactively engage in EM. It also contributes to offer evidence that customer orientation plays an important role in SMEs’ implementation of EM and its impact on firm performance.

scholarly journals Examining the link between service modularity and firm performance

2016 ◽  
Vol 26 (5) ◽  
pp. 696-720 ◽  
Author(s):  
Colin C.J. Cheng ◽  
Eric Shiu
Keyword(s):  
Firm Performance ◽  
Structural Equation ◽  
Radical Innovation ◽  
Equation Modeling ◽  
Service Firms ◽  
Actual Process ◽  
Innovation Capability ◽  
Content Type ◽  
Negative Effect

Purpose While service scholars have generally supported the idea that service modularity enhances firm performance, the literature offers very little evidence of the actual process through which service modularity continuously contributes to firm performance. The purpose of this paper is to examine the link from a capability perspective: service modularity capabilities-service modularity-new service advantage-firm performance, as well as the moderating role of radical innovation capability in the effect of service modularity on new service advantage. Design/methodology/approach To examine this link, data were collected from a cross-industry survey of 231 leading service firms. Structural equation modeling and hierarchical moderated regression analyses were employed to test the model. Findings Analyses reveal that new service advantage mediates the service modularity-firm performance relationship. Moreover, service modularity capabilities act in an important antecedent role to configure service modularity. Among the findings, it is worth emphasizing that radical innovation capability not only strengthens the positive effect of, but also alleviates the negative effect of, service modularity on new service advantage. Originality/value This study provides a more complete understanding of how service modularity enhances firm performance by discovering the hidden role of new service advantage that bridges service modularity and firm performance, clarifying the role of service modularity capabilities in configuring service modularity, and confirming the important role of radical innovation capability in sustaining the effectiveness of service modularity.

Ethical leadership in the salesforce: effects on salesperson customer orientation, commitment to customer value and job stress

2016 ◽  
Vol 31 (7) ◽  
pp. 914-927 ◽  
Author(s):  
Charles H. Schwepker ◽  
Thomas N. Ingram
Keyword(s):  
Job Stress ◽  
Ethical Leadership ◽  
Value Creation ◽  
Customer Value ◽  
Structural Equation ◽  
Customer Orientation ◽  
Equation Modeling ◽  
Content Type ◽  
Business To Business

Purpose The purpose of this paper is to attempts to better understand the role of ethical leadership in the business-to-business customer value creation process. Drawing on job demands-resources theory (Bakker and Demerouti, 2007; Demerouti et al., 2001), this paper develops and tests a model that examines the relationships among ethical leadership, customer orientation, commitment to providing superior customer value and job stress in the salesforce. Design/methodology/approach The sample includes 408 business-to-business salespeople. Structural equation modeling is used to test the study’s hypotheses. Findings Findings suggest that ethical leadership directly and indirectly (via customer orientation) influences commitment to providing superior customer value. Furthermore, both ethical leadership and salesperson commitment to providing value directly influence salesperson job stress. Originality/value This paper develops and tests a model that examines the relationships among constructs not previously examined, as they relate to business customer value creation.

Complementarity effect of supply chain competencies on innovation capability

2019 ◽  
Vol 25 (6) ◽  
pp. 1251-1272 ◽  
Author(s):  
Ying Liao ◽  
Yulong Li
Keyword(s):  
Supply Chain ◽  
Structural Equation ◽  
Equation Modeling ◽  
Supply Network ◽  
Innovation Capability ◽  
Exploration And Exploitation ◽  
Complementarity Effect ◽  
Content Type ◽  
Essential Components ◽  
Network Flexibility

Purpose From the perspective of the economic theory of complementarity, the purpose of this paper is to examine how internal collaboration and external competencies would provoke and strengthen each other, and subsequently enhance organizational innovation capability. Design/methodology/approach The survey data were collected from 201 manufacturing firms and checked for common method variance, validity and reliability. Structural equation modeling was then used to test the hypothetical complementarity effect. Findings The results suggest that internal collaboration (as a manifestation of exploitative learning) and external competencies, which include supply network flexibility and supplier operational capabilities (as manifestation of exploratory learning), do in fact compensate for each other’s deficiencies. Complementary deployment of internal collaboration and external competencies enhances each other’s contribution to innovation capability. Practically, the study indicates that organizations should consider making concerted efforts to develop internal collaboration, supply network flexibility and supplier operational capability as a bundle. Originality/value Extensive discussions exist in the literature on exploration and exploitation being essential components of innovation and their conflicting impact on innovation efficiency and effectiveness. But how an organization should operationally develop supply chain competencies in order to maximize overall innovation capability still remains largely an unanswered question. The current study advances the research on the inter-relationships between exploration and exploitation by empirically demonstrating the complementary nature of internal collaboration and external competencies in developing sustainable innovation capabilities.

Dynamic capabilities: interrelations and distinct effects on performance in low and high competitive intensity environments

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Amiram Markovich ◽  
Kalanit Efrat ◽  
Daphne R. Raban
Keyword(s):  
Firm Performance ◽  
Structural Equation ◽  
Dynamic Capabilities ◽  
Equation Modeling ◽  
Company Performance ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
Competitive Intensity ◽  
Content Type ◽  
Impact Performance

PurposeThis study aims to augment the understanding of dynamic capabilities (DCs) by exploring the interrelations among the DC categories (sensing, seizing, reconfiguring) and the distinct impact of each DC on firm performance under low and high levels of competitive intensity.Design/methodology/approachThe analysis is based on a cross-sectional survey of 139 managers in Israel. The data were collected through Web-based questionnaires using the Qualtrics software. A two-stage data analysis was performed using structural equation modeling (SEM).FindingsThe findings indicate that DCs follow a sequence in which sensing drives seizing, which, in turn, enhances reconfiguring. The effects of sensing are mainly manifested through its direct impact on seizing, with no evidence for an impact of sensing on company performance. Moreover, under low competitive intensity, only seizing appears to impact performance, while under high competitive intensity, reconfiguring joins seizing in improving firm performance.Originality/valueThe study's findings advance the debate on the direct vs sequential nature of DCs by indicating an internal DC sequence. Our research also advocates for a crucial role of sensing in enhancing DCs, regardless of the level of competitive intensity. Furthermore, this research expands the understanding of the consequences of DCs and enables the prioritization of DC categories under low and high competitive intensity.

Improving competitiveness in education institutes – ABC’s neglected potential

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
John Sorros ◽  
Petros Lois ◽  
Melita Charitou ◽  
Alkiviadis Theofanis Karagiorgos ◽  
Nicholas Belesis
Keyword(s):  
Customer Value ◽  
Structural Equation ◽  
Cost Allocation ◽  
Added Value ◽  
Equation Modeling ◽  
Educational Institutions ◽  
Resource Exploitation ◽  
Content Type ◽  
Cost Strategy

Purpose Because of the education sector’s evolution, accounting initiatives are required regarding competitiveness. Activity-based costing’s (ABC) neglected potential as a cost strategic tool initiated this research, which aims to identify administrative and operational factors that support or hinder its implementation in educational institutions as a predictor of competitiveness. Design/methodology/approach A theoretical model was proposed and tested through structural equation modeling to identify relationships between accounting departments, cost procedures, the transmissibility of information and competitiveness. Using quantitative and qualitative methods, a scale of items was derived, denoting an institute’s cost strategy and ABC implementations and returned from 417 Greek education institutes. Findings An accounting department’s role in accurate data transmissibility and an institution’s organizational structure significantly affect cost-related competitiveness. The importance of information sharing is strengthened by current cost allocation capabilities and the accounting department’s influence on management. Research limitations/implications ABC’s limited implementation in the Greek education sector complicated the theoretical model’s construction, as a variety of geographical and institutional factors were taken into consideration. Practical implications Customer value provides a competitive advantage and constitutes the basis of solid price strategies. Research demonstrates ABC’s importance for education institutions’ competitiveness and resource exploitation. Social implications Education’s commercialization urges costing strategy prioritization. ABC could benefit competitiveness and attract long-term funds and investments. To create value institutions, the allocation of incurred costs to added-value activities is crucial. Originality/value This study sheds light on vague issues institutions face when dealing with ABC. Understanding accounting departments’ influence shows ABC’s feasibility even for smaller or less efficiency-oriented education institutions.

Participatory HRM and firm performance

2019 ◽  
Vol 41 (5) ◽  
pp. 1098-1119 ◽  
Author(s):  
Neha Gahlawat ◽  
Subhash C. Kundu
Keyword(s):  
Firm Performance ◽  
Organizational Climate ◽  
Structural Equation ◽  
Affective Commitment ◽  
Intention To Leave ◽  
Employee Attitudes ◽  
Primary Data ◽  
Equation Modeling ◽  
Content Type ◽  
The Relationship

Purpose The purpose of this paper is to examine the relationship between participatory HRM and firm performance through a series of mediators. Design/methodology/approach Primary data were collected from 569 respondents belonging to 207 organizations operating in India. Structural equation modeling and bootstrapping via PROCESS were used to analyze the hypothesized relationships between participatory HRM and firm performance. Findings The study has highlighted that participatory HRM in the form of self-managed teams, flexible work arrangements and empowerment results in better organizational climate, heightened affective commitment, reduced intention to leave and enhanced firm performance. Furthermore, it has been established that organizational climate, affective commitment and intention to leave serially mediate the relationship between participatory HRM and firm performance. Practical implications The study gives strong indications that adopting bundle of participatory HRM practices is beneficial for generating positive organizational climate, enhanced employee attitudes and superior firm performance. Originality/value By establishing serial mediation through organizational climate, affective commitment and employees’ intention to leave, this study brings new insights into the interpretation of underlying mechanism existing between participatory HRM and firm performance, thus uniquely contributes to the HRM and OB literature.

scholarly journals Antecedents and outcomes of supply chain management in Bangladesh

2019 ◽  
Vol 1 (1) ◽  
pp. 68-87 ◽  
Author(s):  
Mohammed Belal Uddin ◽  
Bilkis Akhter
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Business Strategy ◽  
Customer Value ◽  
Structural Equation ◽  
Principal Component ◽  
Equation Modeling ◽  
Competitive Advantages ◽  
Chain Management ◽  
Content Type

PurposeThe purpose of this paper is to investigate the institutional and significant competences that have allowed organizations to employ supply chain management (SCM) practices, the practices of SCM and the benefits of SCM practices for both buyers and suppers.Design/methodology/approachA theoretical model (including hypotheses) has been proposed regarding antecedents, SCM practices and outcomes of SCM. Using purposive sampling method, data were collected from different manufacturing, distributing, wholesaling and retailing organizations. Collected data were analyzed in a principal component analysis and structural equation modeling, including confirmatory factor analysis, and path analysis.FindingsThe empirical results provided supportive evidences in favor of the hypotheses and theoretical arguments except one hypothesis. This study did not a find positive relationship between organizational compatibility and SCM practices. The study found relationships between mutual trust and SCM practices, communication and SCM practices, and cooperation and SCM practices, which were positive and significant. Again, the relationships between SCM practices and competitive advantages, and SCM practices and long-term orientation and growth were also positive and significant.Practical implicationsPractitioners could also use the findings to align SCM with business strategy and gain an insight for better utilization of the available resources and technology to perform better.Originality/valueThis study will provide guidance as to the preconditions that need to be in place in order for a company to implement SCM with its suppliers and customers. It will remind practitioners to stay focused on the ultimate goals of SCM – lower costs, increased customer value and satisfaction, and, ultimately, competitive advantage.

Corporate social responsibility, innovation capability and firm performance: evidence from SME

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dawit Bahta ◽  
Jiang Yun ◽  
Md Rashidul Islam ◽  
Muhammad Ashfaq
Keyword(s):  
Corporate Social Responsibility ◽  
Firm Performance ◽  
Social Responsibility ◽  
Financial Performance ◽  
Developing Country ◽  
Equation Modeling ◽  
Innovation Capability ◽  
Content Type ◽  
Corporate Social

Purpose The purpose of this paper is to examine corporate social responsibility (CSR) and its effect on small and medium enterprises’ (SMEs) innovation capability and financial performance from the perspective of a developing country. It also aims to explore the role of innovation capability as a mediating factor in the linkage between CSR and SMEs’ financial performance. Design/methodology/approach A questionnaire was distributed among managers/owners of the sampled companies. Using a data set of 402 Eritrean firms and partial least squares structural equation modeling, direct and mediating effects were tested. Findings The result reveals that CSR has a positive and significant effect on the financial performance and innovation capability of SEMs. Besides, innovation capability has a positive and significant effect on the business performance of SMEs. The result also supports a partial mediation effect of innovation capability on the association between CSR and firm performance. Practical implications The findings from this research could enhance the awareness of the entrepreneurs, researchers and policymakers on CSR-SMEs’ relationship and help understand the importance of CSR as a crucial driver mechanism for companies to become more innovative and competitive. Originality/value By empirically examining the relationship between CSR, innovation capability and performance in SMEs, this study contributes to the ongoing scholarly discussion on the linkage between CSR and financial performance. Also, to the best of the authors’ knowledge, no other study investigated the mediating role of innovation capability on the link between CSR activities and firms’ financial performance in SMEs from a developing country perspective, making substantial contributions to research in terms of theory, practice and policy.

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