Culture, strategy formulation, and firm performance: a meta-analysis

2020 ◽  
Vol 33 (1) ◽  
pp. 147-176 ◽  
Author(s):  
Silvio Borrero ◽  
Alejandro Acosta ◽  
Aida F. Medina
Keyword(s):  
Firm Performance ◽  
Latin American ◽  
Meta Analysis ◽  
Empirical Studies ◽  
Future Orientation ◽  
Strategy Formulation ◽  
Partial Explanation ◽  
Analytical Strategy ◽  
Content Type ◽  
Cultural Contexts

PurposeThis article explores how strategy formulation affects firm performance to determine whether rational/analytical strategy formulation is more effective than emergent/reflexive strategy formulation. Additionally, the article assesses if such superiority holds for different cultural contexts.Design/methodology/approachMeta-analysis was performed using the Raju, Burke, Norman, and Landis (RBNL) procedure applied to a dataset of 43 empirical studies reporting 54 effect sizes on strategy–performance relationships.FindingsImplementing a formal strategy formulation process positively relates to firm performance. Rational/analytical formulation approaches are more effective than emergent/reflexive approaches in enhancing firm performance, especially for cultures with low future orientation, high uncertainty avoidance, and high power distance.Research limitations/implicationsThe reduced number of published empirical studies limited the scope and generalizability of the results across countries, industries, or firms. This limitation might be especially true for Latin American firms given the absence of relevant studies in this region. Another potential limitation is related to the distinction between strategy formulation and strategy implementation. Given the empirical nature of the studies meta-analyzed, strategic tools are used as a proxy to determine the formulation approach.Practical implicationsFirms that operate in short-term oriented, uncertainty-avoiding, and elitist cultures should favor implementing rational/analytical strategy formulation techniques rather than emergent/reflexive approaches. Although prescriptive recommendations are limited by the lack of studies in Latin America, firms in this region would seem to be better off using rational/analytical strategy formulation approaches.Originality/valueThese findings provide a partial explanation for the varying results yielded by strategy formulation and suggest cultural contexts in which rational/analytical strategy formulation should be more effective than emergent/reflexive approaches.

Corporate governance and firm performance in Latin America: a meta-analysis

2018 ◽  
Vol 31 (1) ◽  
pp. 195-211 ◽  
Author(s):  
Flávia Schwartz Maranho ◽  
Ricardo Leal
Keyword(s):  
Corporate Governance ◽  
Latin America ◽  
Firm Performance ◽  
Latin American ◽  
Boards Of Directors ◽  
Meta Analysis ◽  
Shareholder Wealth ◽  
Content Type ◽  
The Relationship ◽  
Latin American Countries

Purpose The relationship between the role played by corporate governance (CG) mechanisms and shareholder wealth is an important and mature topic in some countries and regions. However, despite the considerable number of studies, the results are still inconclusive. The purpose of this paper is to contribute to the debate around the theme in Latin America through a meta-analysis. Design/methodology/approach The study used meta-analytic procedures to review 42 articles produced by researchers from Latin American countries, whose samples were composed of Latin American firms. Findings The results suggest that CG best practices are associated with better Latin American firm performance. The evidence also suggests that results are moderated by the characteristics of boards of directors, the ownership, and control structure and various simultaneous CG mechanisms, through broad indices and special CG trading segments. Originality/Value The relationship between GC and firm performance possesses certain peculiarities in the case of Latin American countries and the literature on the region is certainly not as abundant and mature. As most of the articles reviewed were written in Portuguese and Spanish and published in local journals, the consolidation produced should also be useful for researchers throughout the world by enabling them to access their ideas.

The impact of servitization on firm performance: a meta-analysis

2018 ◽  
Vol 38 (7) ◽  
pp. 1562-1588 ◽  
Author(s):  
Weijiao Wang ◽  
Kee-Hung Lai ◽  
Yongyi Shou
Keyword(s):  
Firm Performance ◽  
Meta Analysis ◽  
Empirical Studies ◽  
Effective Means ◽  
Superior Performance ◽  
Future Research ◽  
Quantitative Review ◽  
Content Type ◽  
And Performance ◽  
The Impact

Purpose Servitization has been recognized as an effective means for manufacturers to achieve superior performance. However, the servitization-performance relationship is controversial since prior empirical studies have provided inconsistent and even contradictory results. Hence, the purpose of this paper is to provide a quantitative review on the servitization-performance relationship based on research findings reported in the extant literature. Design/methodology/approach Studies from 41 peer-reviewed journal articles were sampled and analyzed. A meta-analytic approach was adopted to conduct a quantitative review on the relationship between servitization and firm performance. Findings The results confirm a positive servitization-performance relationship. In addition, the results reveal that the observed servitization-performance relationship is influenced by the operationalization of constructs (servitization and performance) and control variables (industry and region). Originality/value As the first meta-analysis on the servitization-performance relationship, this study contributes to the servitization literature and provides future research directions.

Market orientation, innovation commercialization capability and firm performance relationships: the moderating role of supply chain influence

2017 ◽  
Vol 32 (7) ◽  
pp. 913-924 ◽  
Author(s):  
Jeen-Su Lim ◽  
William K. Darley ◽  
David Marion
Keyword(s):  
Supply Chain ◽  
Firm Performance ◽  
Market Orientation ◽  
Innovation Management ◽  
Strategy Formulation ◽  
Content Type ◽  
Positive Effects ◽  
The Impact ◽  
Moderating Role

Purpose The study aims to explore supply chain influence (SCI) on the linkages among market orientation, innovation capabilities and firm performance (FP), using the resource-based view as a theoretical backdrop. Design Survey data from 182 top managers who are involved in strategy formulation and innovative direction of their companies was collected and analyzed using moderated multiple regression analysis. Findings Results revealed a moderating role of the SCI in that the proactive market orientation (PMO) and FP relationship is stronger when SCI is high, and innovation commercialization capability (ICC) and FP relationship is stronger when SCI is low. Practical implications Firms pursuing high PMO strategy must collaborate with supply chain function to achieve the full effect of PMO. Additionally, as supply chain is critical to meeting customers’ needs, these firms should allow supply chain to exert greater influence to enjoy the positive effects of PMO in addition to ensuring full integration into marketing strategy implementation. Also, firms with high ICC need to limit SCI to maximize the benefit of ICC on FP, just as innovation management needs to be cognizant of other functional areas. Originality/value The study investigates the potential moderating role of SCI on the relationships among market orientation, ICC and FP. The study fills a gap in the understanding of the nature and role of supply chain in the marketing–supply chain interaction, and the impact on FP.

Determinants of the firm performance of returnee entrepreneurs in Somalia: the effects of external environmental conditions

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohamed-Abdullahi Mohamed ◽  
Asmat-Nizam Abdul-Talib ◽  
AfifahAlwani Ramlee
Keyword(s):  
Firm Performance ◽  
Conceptual Framework ◽  
Empirical Studies ◽  
Theoretical Background ◽  
Future Research ◽  
African Countries ◽  
Content Type ◽  
Somali Diaspora ◽  
Post Conflict ◽  
Perceived Environmental Uncertainty

Purpose This study aims to examine the role of returning Somali diaspora entrepreneurs on firm performance and their perceived environmental obstacles. Design/methodology/approach The paper draws on a broad literature review and covers a theoretical background to develop a research framework. It presents several propositions to be empirically tested to determine the influence of returnee entrepreneurs’ success and the challenges they face in the process. Findings The paper offers an overview of how Somali diaspora returnee entrepreneurs can use their resources to succeed in their business and the possible environmental uncertainties that could hinder them. The study highlights some under-researched areas and provides future research directions. Research limitations/implications A research investigation is needed to test the proposed conceptual framework empirically. Further research is also recommended to use other predictors when investigating the perceived environmental uncertainty faced by returnee entrepreneurs. Practical implications In the diaspora entrepreneurship literature, returnee entrepreneurs in post-conflict African countries did not get enough attention. Hence, the study will contribute theoretically to the literature. Originality/value The paper provides a conceptual framework that will help understand returnee entrepreneurs in post-conflict states in Africa, paving the way for empirical studies on the topic.

scholarly journals The performance of corporate bond issuers in times of financial crisis: empirical evidence from Latin America

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Marc Berninger ◽  
Bruno Fiesenig ◽  
Dirk Schiereck
Keyword(s):  
Latin America ◽  
Latin American ◽  
Empirical Studies ◽  
Corporate Bond ◽  
Economic Conditions ◽  
Corporate Debt ◽  
Market Reactions ◽  
Content Type ◽  
Financing Decisions ◽  
Theoretical Approaches

PurposeThe fundamental theory of Modigliani and Miller (1958) states that a firm's financing decisions are independent from the firm's value. Nevertheless, several empirical studies as well as theoretical approaches from the past decade impugn this relation for real markets with their immanent inefficiencies. However, these questions are rather than academic in nature: Especially the influence of macroeconomic conditions on the market perception of debt issues is from high economic importance, since the need for new liquidity usually becomes even more urgent when the economic conditions worsen.Design/methodology/approachThis paper analyzes the reaction of shareholders to the issue of debt by Latin American firms under special consideration of the macroeconomic sentiment. To do so, a sample of debt issued by Latin American companies between 2003 and 2010 is empirically examined through an event study.FindingsThe authors empirically demonstrate that specifically in Latin America, debt issuing companies show a significant underperformance during recessionary periods and an overperformance during nonrecessionary periods. These findings differ from previous results for mature capital markets. The authors conclude that not only the overall economic conditions matter to explain stock market reactions on bond issues but also the maturity of the corporate debt market plays an important role.Originality/valueThe authors provide first evidence that the previously described changes in the returns on specific stocks depending on the economic sentiment (Baker and Wurgler, 2006) are under certain conditions also present in the market for corporate debt.

Research on capital structure determinants: a review and future directions

2017 ◽  
Vol 13 (2) ◽  
pp. 106-132 ◽  
Author(s):  
Satish Kumar ◽  
Sisira Colombage ◽  
Purnima Rao
Keyword(s):  
Capital Structure ◽  
Meta Analysis ◽  
Empirical Studies ◽  
Secondary Data ◽  
Theoretical Models ◽  
Order Theory ◽  
Organizational Level ◽  
Future Research ◽  
Content Type ◽  
The Impact

Purpose The purpose of this paper is to study the status of studies on capital structure determinants in the past 40 years. This paper highlights the major gaps in the literature on determinants of capital structure and also aims to raise specific questions for future research. Design/methodology/approach The prominence of research is assessed by studying the year of publication and region, level of economic development, firm size, data collection methods, data analysis techniques and theoretical models of capital structure from the selected papers. The review is based on 167 papers published from 1972 to 2013 in various peer-reviewed journals. The relationship of determinants of capital structure is analyzed with the help of meta-analysis. Findings Major findings show an increase of interest in research on determinants of capital structure of the firms located in emerging markets. However, it is observed that these regions are still under-examined which provides more scope for research both empirical and survey-based studies. Majority of research studies are conducted on large-sized firms by using secondary data and regression-based models for the analysis, whereas studies on small-sized firms are very meager. As majority of the research papers are written only at the organizational level, the impact of leverage on various industries is yet to be examined. The review highlights the major determinants of capital structure and their relationship with leverage. It also reveals the dominance of pecking order theory in explaining capital structure of firms theoretically as well as statistically. Originality/value The paper covers a considerable period of time (1972-2013). Among very few review papers on capital structure research, to the best of authors’ knowledge; this is the first review to identify what is missing in the literature on the determinants of capital structure while offering recommendations for future studies. It also synthesize the findings of empirical studies on determinants of capital structure statistically.

Corporate social responsibility and SME performance: a meta-analysis

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Stephen Oduro ◽  
Kot David Adhal Nguar ◽  
Alessandro De Nisco ◽  
Rami Hashem E. Alharthi ◽  
Guglielmo Maccario ◽  
...  
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Meta Analysis ◽  
Empirical Studies ◽  
Content Type ◽  
Analytic Review ◽  
Managerial Implications ◽  
Corporate Social ◽  
The Impact

PurposeThis study aims to draw on instrumental and ethical theories to offer a quantitative review of the extant literature on the corporate social responsibility (CSR)–small-medium enterprises (SMEs) performance relationship through a meta-analysis.Design/methodology/approachEmpirical studies from 57 independent peer-reviewed articles, including 66,741 firms, were sampled and analysed. Both subgroup and meta-regression analyses (MARA) were used to test the hypotheses of the study.FindingsThe authors' results demonstrated that social-oriented, economic-oriented and environment-oriented CSR activities have a positive, significant influence on overall, financial and non-financial performance of SMEs; however, the effect of social-oriented CSR activities is the strongest. Moreover, the impact CSR dimensions have on non-financial performance is stronger than on financial performance. Additionally, findings showed that the association between CSR and SME performance is positively and significantly influenced by contextual factors (i.e. sector and region of study) and methodological factors (i.e. performance measurement, study type, theory usage, sampling size and operationalisation of constructs).Originality/valueThe study is the pioneering meta-analytic review on the CSR–SME performance relationship, thereby clarifying the anecdotal results, synthesising the fragmented empirical studies and exploring the contextual and methodological factors that may account for between-study variance. Following the study's findings, the authors delineate insightful suggestions for future scholarship and fine-grained managerial implications for practitioners.

The impact of service innovation on firm performance: a meta-analysis

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Changli Feng ◽  
Ruize Ma ◽  
Lin Jiang
Keyword(s):  
Firm Performance ◽  
Positive Impact ◽  
Meta Analysis ◽  
Service Innovation ◽  
Future Research ◽  
Quantitative Review ◽  
Content Type ◽  
And Performance ◽  
The Impact ◽  
The Relationship

PurposeWith the rise of service economy, many companies are attempting to gain a competitive advantage through service innovation. However, the existing research has not drawn consistent conclusions about the relationship between service innovation and firm performance. Hence, the purpose of this paper is to provide a quantitative review on the service innovation-performance relationship based on research findings reported in the extant literature.Design/methodology/approachStudies from 46 peer-reviewed articles were sampled and analyzed. A meta-analytic approach was adopted to conduct a quantitative review on the relationship between service innovation and firm performance, and the effects of any potential moderators were further explored.FindingsThe results found that service innovation has a significant positive impact on firm performance. Additionally, the relationship between service innovation and firm performance is influenced by measurement moderators (economic region and performance measurement), and contextual moderators (firm type, innovation type, customer factors and attitudes toward risk).Originality/valueThe meta-analysis has been used to explore the relationship between service innovation and firm performance, and the findings have contributed to the literature on service innovation, as well as providing future research directions.

scholarly journals Online company blogs as narrations of plural leadership

2019 ◽  
Vol 33 (4) ◽  
pp. 609-621
Author(s):  
Arja Ropo ◽  
Elina I. Mäkinen ◽  
Inka Seppä
Keyword(s):  
Leadership Style ◽  
Narrative Analysis ◽  
Leadership Practices ◽  
Empirical Studies ◽  
Online Data ◽  
Analytical Strategy ◽  
Content Type ◽  
Leadership Research ◽  
Plural Leadership ◽  
Second Category

Purpose The purpose of this paper is to examine how companies that characterise their leadership style as plural, shared or distributed narrate their actions and practices in online blog texts. Design/methodology/approach The data consist of online blog texts published by seven Finnish IT companies. The analytical strategy draws on both thematic and structural approach to narrative analysis. The blog texts were analysed thematically to uncover different aspects of plural leadership. The analysis revealed a narrative pattern consisting of three categories that explain why and how companies implemented plural leadership. Findings The first category in the narrative pattern describes the motivation for engaging in plural leadership. The second category explains how the companies broke down existing hierarchies in order to create new flexible work roles. The third category describes how the organisations sought to create a communal culture and a strong sense of trust using symbols, material objects and spaces. Research limitations/implications The study contributes to leadership research that emphasises post-heroic leadership conceptualisations. The narrative pattern provides future empirical studies a framework for analysing plural leadership practices in different organisational settings. Whereas this study sheds light on the ways in which organisations and their leadership practices can be investigated using online data, traditional organisational ethnographies can make a further contribution to this line of research. Practical implications Implementing plural leadership in organisations can lead to informal power plays. Attention should be paid on to how plural leadership evolves in flat hierarchies and promotes community building. Originality/value Company webpages have rich information on how companies operate and perceive themselves. They provide yet another window for observing organisational activities. This study makes a novel contribution to how plural leadership is practiced and conceptualised in online blog texts.

scholarly journals A meta-analysis of the quantitative studies in continuance intention to use an information system

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Frank Bivar Franque ◽  
Tiago Oliveira ◽  
Carlos Tam ◽  
Fernando de Oliveira Santini
Keyword(s):  
Information System ◽  
Meta Analysis ◽  
Empirical Studies ◽  
Theoretical Models ◽  
Temporal Analysis ◽  
Perceived Usefulness ◽  
Intention To Use ◽  
Continuance Intention ◽  
Content Type

PurposeThis study aims to describe, synthesise and clarify the findings of published studies on individual continuance intention to use an information system (IS), considering the fact that the number of studies in the continuance intention context are growing exponentially and cover several different subjects.Design/methodology/approachThe research uses meta- and weight analysis by taking 115 empirical studies from continuance intention to use an IS. The data are presented in different views using significant and non-significant relationships from all the studies. Furthermore, it uses hierarchical linear meta-analysis to analyse potential moderators that can influence continuance intention.FindingsThe results reveal that affective commitment, attitude, satisfaction, hedonic value and flow are the best predictors of continuance intention to use an IS. Sample size, individualism, uncertainty avoidance and long-term orientation moderate the relationship of perceived usefulness on continuance intention. Power distance, masculinity and indulgence moderate relationship satisfaction on continuance intention.Practical implicationsThe results reveal that continuance intention to use an IS has been studied in different countries, with different cultures; therefore, IS providers should have diversified managing strategies, to ensure the satisfaction of users and long-term usage of their IS.Originality/valueThe study provides a systematic overview of the most relevant variables used in the literature, including a temporal analysis of the theoretical models, highlighting the evolution of the constructs and presents a moderation analysis.

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