Enhancing competitive advantage and financial performance of consumer-goods SMEs in export markets: how do social capital and marketing innovation matter?

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
So Won Jeong ◽  
Jae-Eun Chung
Keyword(s):  
Social Capital ◽  
Financial Performance ◽  
Competitive Advantage ◽  
Consumer Goods ◽  
Export Markets ◽  
Resource Based View ◽  
Content Type ◽  
Marketing Innovation ◽  
Research Gap ◽  
Foreign Distributor

PurposeBuilding on the resource-based view (RBV), this study examines the differential roles of internal and external social capital (SC) in enhancing the marketing innovation (MI), competitive advantage and financial performance of Korean small and medium-sized enterprises (SME) in export markets.Design/methodology/approachIn total, 197 valid cases were obtained from Korean manufacturing SMEs in the consumer goods sector. Then, a path analysis was employed to test the proposed hypotheses.FindingsFirst, SME internal SC positively influenced MI, whereas external SC positively influenced foreign distributor's MI (or foreign distributor MI). Second, SME MI was positively associated with foreign distributor MI. Third, no statistical differences were found in the strength of the paths from foreign distributor and SME MI to competitive advantage. Meanwhile, foreign distributor MI positively affected financial performance more than SME MI. Fourth, SME competitive advantage predicted a positive financial performance. Finally, the effect of SME MI on financial performance had an inverted “U” shape.Originality/valueThis study fills a research gap in the MI literature by identifying MI in terms of its actors (SMEs and their foreign distributors) and examining the differential roles of internal and external SC in MI.

Could CSR improve the financial performance of developing countries’ firms? Analyses of mediating effect of intangible resources

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohamed Hamdoun ◽  
Mohamed Akli Achabou ◽  
Sihem Dekhili
Keyword(s):  
Developing Countries ◽  
Human Capital ◽  
Financial Performance ◽  
Competitive Advantage ◽  
Mediating Effect ◽  
Social Dimension ◽  
Content Type ◽  
Intangible Resources ◽  
The Impact

Purpose This paper aims to examine the link between corporate social responsibility (CSR) and financial performance in the context of developing countries. More specifically, the mediating role of a firm’s competitive advantage and intangible resources, namely, human capital and reputation are studied. Design/methodology/approach The study considered a sample of 100 Tunisian firms. The analysis makes use of the structural equation modelling method to explore the relationship between CSR and financial performance, by including mediator variables. Findings The results confirm that CSR has no significant direct effect on financial performance. In particular, they indicate that the social dimension of CSR has a negative impact on performance. However, CSR does have a positive impact on competitive advantage via the two intangible resources considered, human capital and company reputation. Research limitations/implications The research fills a gap that occurred in the previous literature. In effect, previous studies focussed only on the direct link between CSR and financial performance. In addition, it enriches the limited literature on CSR strategies in the context of developing countries. However, further studies should explore the opposite relationship, i.e. the impact of financial performance on CSR strategy. In addition, the authors believe that amongst other potential research avenues, it would be interesting to study the moderating role of the activity sector. Practical implications From a practical point of view, this study suggests new applications with respect to the link between CSR and financial performance. To enhance their company’s financial performance, managers need to ensure that intangible resources are managed efficiently. Originality/value The paper contributes to the literature by examining how a firm’s intangible resources mediate between CSR and competitive advantage and how competitive advantage mediates between intangible resources and financial performance. Second originality is related to the study of the link between CSR and the financial performance of business organisations in the context of a developing country.

From corporate social responsibility activities to financial performance: role of innovation and competitive advantage

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahnoor Zahid ◽  
Hina Naeem ◽  
Iqra Aftab ◽  
Sajawal Ali Mughal
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Competitive Advantage ◽  
Manufacturing Firms ◽  
Equation Modeling ◽  
Content Type ◽  
Corporate Social ◽  
The Relationship

Purpose The purpose of this study is to scrutinize the effect of corporate social responsibility activities (CSRA) of the firm on its financial performance (FP) and analyze the mediating role of innovation and competitive advantage (CA) in the relationship between CSRA and FP in the manufacturing sector of an emerging country, i.e. Pakistan. Design/methodology/approach Data has been collected through an electronic structured questionnaire from 300 middle-level and top-level managers by surveying different manufacturing firms of Gujranwala, Pakistan. The study’s hypotheses have been checked by analyzing the reliability and validity of data and applying confirmatory factor analysis and structural equation modeling through statistical package for the social sciences and analysis of moment structures. Findings Outcomes of this study supported the hypothesized model. It has been found that the CSRA plays a significant positive role in determining the FP of the firm. Furthermore, the CA and innovation have been proved as significant mediators between CSRA and FP. Originality/value The first time examining the intermediation of innovation and CA in the relationship between CSRA and FP is the primary input of this study to the literature. Practically, this study’s findings will help strategy makers of manufacturing firms in emerging countries develop better strategies for implementing CSRA, enhancing innovation, seeking CA and improving FP.

Managerial innovative capabilities, competitive advantage and performance of healthcare sector during Covid-19 pandemic period

foresight ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Demetris Vrontis ◽  
Hani El Chaarani ◽  
Zouhour El Abiad ◽  
Sam El Nemar ◽  
Alissar Yassine Haddad
Keyword(s):  
Health Care ◽  
Financial Performance ◽  
Competitive Advantage ◽  
Health Care Sector ◽  
Healthcare Sector ◽  
Equation Modeling ◽  
Content Type ◽  
Innovative Capabilities ◽  
Managerial Capabilities ◽  
The Relationship

Purpose The purpose of this paper is to reveal the impact of dynamic managerial innovative capabilities on the competitive advantage (CA), financial performance (FP) and non-financial performance (NFP) of the health-care sector during the very turbulent Covid-19 pandemic period. The focus is on human behavior and personnel interaction in the hospitals that receive Covid-19 cases. Design/methodology/approach Data for this research was collected from the medical sector in Lebanon. The authors approached 14 public hospitals and 60 private hospitals for the study and only 48 hospitals (total of 284 respondents) accepted to complete the survey and provide data using a structured questionnaire. Findings This study reveals the moderating impact of CA on the relationship between dynamic managerial innovative capabilities and the performance of the health-care sector. Based on 48 Lebanese health-care centers during the Covid-19 pandemic, the results of the structural equation modeling model indicate that dynamic managerial innovative practices positively impact on CA and NFP. The results also reveal that CA has a moderating effect on the relationship between dynamic managerial innovative practices and NFP. Practical implications This study does not reveal any direct or indirect relationship between managerial capabilities and FP during the pandemic. Originality/value As the world deals with the Covid-19 pandemic, the health-care sector needs new approaches and methods for confronting the constantly evolving and turbulent environment. This study examines how health-care leaders are dealing with these dynamic challenges and tests a three-dimensional SEM model of dynamic managerial capabilities (sensing, seizing and reconfiguration) that impact CA.

Examining the influence of expatriates’ social capital and knowledge-sharing behavior on financial performance

2019 ◽  
Vol 28 (3) ◽  
pp. 557-577 ◽  
Author(s):  
Wann Yih Wu ◽  
Li Yueh Lee ◽  
That Thi Pham
Keyword(s):  
Social Capital ◽  
Customer Satisfaction ◽  
Financial Performance ◽  
Knowledge Sharing ◽  
Balanced Scorecard ◽  
Organizational Support ◽  
Content Type ◽  
Moderation Effect ◽  
Internal Process ◽  
The Impact

Purpose The purpose of this paper is to examine the impact of expatriate’s social capital and knowledge sharing on multinational companies’ (MNCs) financial performance, with a specific focus on the influence of trust, commitment, organizational support and the four elements of balanced scorecard (BSC). Design/methodology/approach A quantitative questionnaire survey was conducted using expatriates of MNCs in Taiwan as the respondents. Findings Trust and organizational support are significant predictors of knowledge sharing and social capital, which further facilitate their influence on learning and growth, customer satisfaction, internal process improvement and financial performance of MNCs. Besides, social capital serves as an accelerate agent to promote the influence of trust on knowledge sharing, and customer satisfaction serves as a catalyst on the influence of learning and growth and internal process on a firms’ financial performance. Practical implications This study provides a clear articulation of the role of knowledge sharing on the financial performance and its moderation effect on the elements of BSC. Trust and organizational support are essential for knowledge sharing and expatriates’ social capital. The roles of social capital and knowledge sharing are critical for expatriates to be success in the overseas market places. Originality/value Since the evidences regarding expatriate performance rarely integrate the variables of social capital, knowledge sharing and BSC into a more comprehensive framework, the results of this study can be an important reference for academicians to do further validation. These results are also critical for practitioners to develop dispatching policies for the expatriates in the oversea market places.

scholarly journals Architectural marketing capabilities of exporting ventures

2019 ◽  
Vol 36 (6) ◽  
pp. 1026-1041 ◽  
Author(s):  
Vasilis Theoharakis ◽  
Yannis Angelis ◽  
Georgios Batsakis
Keyword(s):  
Financial Performance ◽  
Market Orientation ◽  
Export Performance ◽  
Likelihood Estimation ◽  
Estimation Procedure ◽  
Marketing Capabilities ◽  
Content Type ◽  
Foreign Distributor ◽  
The Impact

Purpose The importance of architectural marketing capabilities (i.e. marketing planning and implementation) in exporting ventures has been recognised. However, extant literature has not taken into account the explicit roles and required synergy between the exporter and their foreign distributor in delivering these capabilities. Drawing from the resource-based theory, the purpose of this paper is to examine the complementarity of distributor implementation capability and market orientation with exporter planning capability. Design/methodology/approach The study was carried out using a survey. Data were collected from 147 Greek exporters who replied to our questionnaire and the hypotheses were tested using the full information maximum likelihood estimation procedure. Findings The results support the hypotheses about the importance of exporter planning capability on financial performance and the complementary role of distributor market orientation. Further, the authors find that the distributor’s implementation capability partially mediates the impact of the exporter’s planning capability on financial performance. Originality/value This study contributes to a better understanding about the complementarity of exporter and distributor capabilities. It demonstrates the crucial role of the distributor in the deployment of architectural capabilities for the export venture: the distributor’s market orientation and implementation capability have the final say in achieving higher levels of export performance.

scholarly journals Direct effects of quality management on competitive advantage

2016 ◽  
Vol 33 (9) ◽  
pp. 1286-1310 ◽  
Author(s):  
Ibrahim A. Elshaer ◽  
Marcjanna M. Augustyn
Keyword(s):  
Quality Management ◽  
Financial Performance ◽  
Competitive Advantage ◽  
Group Analysis ◽  
Quality Data ◽  
Equation Modeling ◽  
Management Decision ◽  
Direct Effects ◽  
Content Type ◽  
Business Outcomes

Purpose The purpose of this paper is to examine direct effects of quality management on competitive advantage within the context of the resource-based view of a firm. Design/methodology/approach Survey data have been obtained from 288 general managers of luxury hotels in Egypt. The authors have used six dimensions and 22 indicators of quality management, two indicators of competitive advantage that manifest the hotel’s above average financial performance relative to competitors within the study sample, and a multi-group analysis in structural equation modeling (SEM). Findings The results indicate that quality management may be a source of competitive advantage. Top management leadership and supplier management differentiate hotels with above average financial performance from its competitors. The role of customer focus and employee management in generating competitive advantage is questionable while process management and quality data and reporting may not contribute to achieving competitive advantage. Research limitations/implications Only direct effects of quality management on competitive advantage are examined within the context of a luxury hotel industry in Egypt. Similar studies within other contexts and models that study indirect effects of quality management on competitive advantage with factors that might moderate these effects are needed. Future studies could compare effects of quality management on competitive advantage with effects of quality management on other business outcomes. Practical implications The results may inform management decision making concerning the development of capabilities that may generate competitive advantage. Social implications The current study contributes in providing further evidence that may contribute to enhancing the understanding and knowledge of the relationship between quality management and competitive advantage. Originality/value This study contributes to the debate on strategic value of quality management and resource-based sources of competitive advantage. Methodologically, this study shows an alternative approach to measuring competitive advantage and indicates that applying a multi-group analysis in SEM may contribute to producing original results.

The importance and the adaptation of internal resources as a competitive advantage for the internationalization of food companies

2019 ◽  
Vol 9 (3) ◽  
pp. 305-320
Author(s):  
Gessuir Pigatto ◽  
Giuliana Aparecida Santini Pigatto ◽  
Eduardo Guilherme Satolo ◽  
Amanda dos Santos Negreti
Keyword(s):  
Competitive Advantage ◽  
Design Methodology ◽  
Gray Relational Analysis ◽  
Resource Based View ◽  
Content Type ◽  
Internal Resources ◽  
Relational Analysis ◽  
Gray Correlation ◽  
Correlation System ◽  
Practical Implications

Purpose The purpose of this paper is to analyze how Brazilian food companies in the State of São Paulo determine the importance of and the need to adapt their internal resources as a competitive advantage for internationalization. Design/methodology/approach From a resource-based view (RBV), 35 different factors grouped into four categories were identified and presented to 24 companies. The data were analyzed through a gray relational analysis to establish all factors’ order of importance. Findings Factors linked to human and organizational resources present greater adaptability and allow companies competitive and sustainable advantages but have not yet been explored thoroughly. Identifying and adapting internal resources do not guarantee achieving competitive and sustainable advantages, as the access to international market is also a consequence of commercial agreements developed by countries and economic blocks. Practical implications The analysis highlights the fragility of competitiveness among the companies analyzed in exporting products with commodity characteristics, with none or little differentiation. Such products are traded mainly through trading companies, which allow the access of the same market to internal competitors and other countries. Thus, any lapse promoted by the company may be enough for it to lose its competitiveness and, hence, market space. Originality/value This paper stands out in the field of strategic management, specifically in the research on RBV, exportation and competitiveness, by making use of the theory of gray correlation system in an innovative and original way.

Network activities as critical sources of creating capability and competitive advantage

2019 ◽  
Vol 58 (3) ◽  
pp. 544-568 ◽  
Author(s):  
Chih-Hsing Liu ◽  
Angela Ya-Ping Chang ◽  
Yen-Po Fang
Keyword(s):  
Social Capital ◽  
Human Capital ◽  
Competitive Advantage ◽  
Organizational Performance ◽  
Innovation Capability ◽  
Content Type ◽  
Political Ties ◽  
Depth Analysis ◽  
The Relationship ◽  
Business Ties

Purpose The purpose of this paper is to propose a new integrated model that combines the concepts of network ties (e.g. political ties and business ties), the organization of internal critical attributes (such as social capital, human capital and innovation capability) and analyses of how those critical attributes influence organization performance and competitive advantage. Design/methodology/approach A structural equation model and three-way interactions in moderated multiple regressions was used to test the hypotheses on a sample of 621 cultural and creative industry (CCI) managers in Taiwan. Findings The results indicate that human capital mediates the relationship between social capital and innovation capability. Furthermore, innovation capability also plays a mediating role in connecting the relationships between human capital, competitive advantage and organizational performance. The findings indicate that business ties strengthen the relationship between social and human capital. The level of human capital is at its peak when social capital, business ties, and political ties considerably interact with one another. Research limitations/implications The present study conceptualized the topic and systematized the questionnaire design and data collection, statistical analysis, and report writing. This study performs a systematic analysis to present the research but does not employ in-depth qualitative interviews to analyse the essential attributes of the different entrepreneurial styles. In-depth interviews enable the interviewees to completely depict their feelings, experiences, motivations, emotions and attitudes. Thus, this method can provide an in-depth analysis. Studies can be conducted to analyse the complexity of the processes involved. Practical implications This study determines and emphasizes that networking with various factors to create innovation is the key to enhancing competitive advantage and organizational performance. Innovation is a unique characteristic and a basic kinetic energy that affects various strategic organizational behaviours that positively influence competitive advantage and facilitate organizational performance. Hence, CCI firms need to consider market orientation and innovation in this highly competitive environment. Originality/value To the best of the knowledge, how CCI firms use networking sources to create competitive advantage and organizational performance, thereby promoting the development of the CCIs of Taiwan, has not been analysed in the tourism-related literature. Thus, the present study provides a significant contribution to the human capital literature, in which empirical research analyses the three-way interaction and demonstrates the empirical insights that may be used to study human capital. The findings reported in this study will encourage future researchers to employ multilevel human capital perspectives.

scholarly journals The effect of marketing innovation, market orientation, and social capital on competitive advantage and marketing performance: A study in MSMEs of embroidery Central Java Province

2015 ◽  
Vol 18 (3) ◽  
pp. 351
Author(s):  
Ag. Sunarno Handoyo
Keyword(s):  
Social Capital ◽  
Competitive Advantage ◽  
Market Orientation ◽  
Small And Medium Enterprises ◽  
Marketing Innovation ◽  
Marketing Performance ◽  
Central Java ◽  
Structure Equations ◽  
Medium Enterprises ◽  
Central Java Province

This study deals with marketing innovation, market orientation, and social capital in affecting the competitive advantage and marketing performance in Micro, Small, and Medium Enterprises (MSMEs) of embroidery in Central Java Province. In this respect, this study tried to test and analyze the effect of marketing innovation, market orienta-tion, and social capital on competitive advantage and marketing performance in Micro, Small, and Medium Enterprises (MSMEs) of embroidery in Central Java Province. The samples are 150 respondents as the owners of the embroidery business in Central Java Province. The technical analysis used is Structure Equations Modeling with AMOS Software version 22. The results show that: (1) marketing innovation has significant effect on competitive advantage; (2) market orientation has significant effect on competi-tive advantage; (3) social capital has significant effect on competitive advantage; (4) competitive advantage has significant effect on marketing performance; (5) marketing innovation has significant effect on marketing performance; (6) market orientation has significant effect on marketing performance; (7) social capital has no significant effect on marketing performance. The implication of this study is that the MSMEs of embroidery could improve marketing performance by increasing marketing innovation, market orientation, social capital and competitive advantage. This study also shows that competitive advantage is an intervening variable on marketing performance.

Antecedents and consequences of supply chain information integration: a resource-based view

2016 ◽  
Vol 21 (6) ◽  
pp. 661-677 ◽  
Author(s):  
Baofeng Huo ◽  
Zhaojun Han ◽  
Daniel Prajogo
Keyword(s):  
Supply Chain ◽  
Service Quality ◽  
Financial Performance ◽  
Information Integration ◽  
Positive Relationship ◽  
Operational Efficiency ◽  
Equation Modeling ◽  
Resource Based View ◽  
Content Type ◽  
Antecedents And Consequences

Purpose This paper aims to investigate the antecedents of supply chain information integration (SCII) and their consequences on company performance from the perspective of resource-based view (RBV). Design/methodology/approach Based on empirical survey data collected from 202 Australian manufacturers, this study examines the effects of strategic supply chain relationship (SCR) and supply chain technology (SCT) internalization on external and internal information integration (II) and the effects of external and internal II on operational (operational efficiency and service quality) and financial performance. Structural equation modeling and the maximum-likelihood estimation methods are used to test the proposed relationships. Findings The results indicate that both strategic SCR and SCT internalization are positively related to external and internal II. Moreover, strategic SCR has a stronger positive relationship with external II than with internal II, and SCT internalization has a stronger positive relationship with internal II than with external II. Internal II is positively related only to service quality, and external II is positively related only to operational efficiency. Both operational efficiency and service quality are positively related to financial performance. Originality/value This study contributes to the SCII literature and provides significant managerial implications for manufacturers to leverage their supply chain resources and capabilities by establishing a resources-capabilities-performance framework for the antecedents and consequences of SCII.

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