Orchestrating internal and external resources to achieve agility and performance: the centrality of market orientation

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Randy Kurniawan ◽  
Adler Haymans Manurung ◽  
Mohammad Hamsal ◽  
Wibowo Kosasih
Keyword(s):  
Firm Performance ◽  
Market Orientation ◽  
Business Process ◽  
Structural Equation ◽  
Dynamic Capabilities ◽  
Business Environment ◽  
Equation Modeling ◽  
Content Type ◽  
Telecommunication Technology ◽  
Bargaining Position

PurposeThis study examines the collaborative impact of networking capability and balanced agile project management (APM) on firm performance through the mediating role of market orientation and business process agility of medium and large telecommunication technology providers in Indonesia.Design/methodology/approachResearch data were collected from the executive management of telecommunication technology providers in Indonesia via a questionnaire survey to obtain 150 valid questionnaires for analysis. This study analyzed the overall model fit and causal relationship using confirmatory factor analysis (CFA) and structural equation modeling (SEM).FindingsThe results indicate that market orientation fully mediates the link between networking capability-business process agility and balanced APM-business process agility. Furthermore, business process agility mediates the relationship between market orientation and firm performance.Research limitations/implicationsThis study is based on a cross-sectional nature and might fail to capture the dynamic of the studied variables over an extended period.Originality/valueThe study extends the knowledge that dynamic capabilities, represented by networking capability and balanced APM, must be framed by market orientation to create customer value and improve bargaining position. However, market orientation alone is not enough in a highly dynamic business environment. Organization also requires business process agility, responsiveness and adaptability to timely address customers' needs and requirements.

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.

Dynamic capabilities of logistics service providers: antecedents and performance implications

2019 ◽  
Vol 31 (4) ◽  
pp. 1058-1075 ◽  
Author(s):  
Ivy S.N. Chen ◽  
Patrick K.O. Fung ◽  
Simon S.M. Yuen
Keyword(s):  
Supply Chain ◽  
Firm Performance ◽  
Structural Equation ◽  
Dynamic Capabilities ◽  
Service Providers ◽  
Equation Modeling ◽  
Service Firms ◽  
Content Type ◽  
Logistics Service ◽  
The Relationship

Purpose Dynamic capabilities (DC) have been linked to firm competitive advantage, but the ways in which firms can create and build these DC are still not clear. The purpose of this paper is to propose a model with organizational learning (OL) and supply chain orientation (SCO) as antecedents of dynamic logistics capabilities and firm performance as the outcome. The study tests this model on a sample of logistics service firms. Design/methodology/approach Partial least squares structural equation modeling was used to analyze the data collected from 103 logistics firms drawn from the Chartered Institute of Logistics and Transportation of Hong Kong. Findings Results show that OL directly enhances DC and indirectly through SCO. The relationship between OL and SCO is stronger than the relationship between OL and DC. DC are positively related to logistics firm performance. Research limitations/implications The study relied on perceptual and self-reported data from senior management. Relationships among variables may also be inflated by common method variance but efforts were taken to reduce this threat. Practical implications Logistics firms should promote a learning culture in the organization. Organization learning enhances a firm’s willingness to change and innovate. It also helps employees to gain a better understanding of clients’ supply chains and possibilities. SCO helps the firm to direct its reconfiguration and renewal efforts where the returns are the highest. Originality/value There is scant empirical research on the antecedents of DC outside of manufacturing and knowledge-intensive services. The study focused on the logistics services industry. SCO, a necessary strategic orientation for firms in the supply chain, has not been empirically investigated in the previous research. This study addressed these gaps in the literature and contributes to the understanding of the factors giving rise to DC.

Networking capability and firm performance: the mediating role of market orientation and business process agility

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Randy Kurniawan ◽  
Dyah Budiastuti ◽  
Mohammad Hamsal ◽  
Wibowo Kosasih
Keyword(s):  
Firm Performance ◽  
Market Orientation ◽  
Direct Effect ◽  
Business Process ◽  
Content Type ◽  
Mediating Role ◽  
Telecommunication Technology ◽  
The Relationship ◽  
Significant Direct Effect

Purpose This study aims to examine the effect of networking capability through market orientation and business process agility on the firm performance of medium and large telecommunication technology providers in Indonesia. Design/methodology/approach Research data was collected from the executive management of telecommunication technology providers in Indonesia via a questionnaire survey to obtain 150 valid questionnaires for analysis. This study analysed the overall model fit and hypotheses through confirmatory factor analysis and structural equation modelling. Findings The results reveal that networking capability has a positive and significant effect on market orientation. However, networking capability does not have a significant direct effect on business process agility. The results also indicate that market orientation does not have a significant direct effect on firm performance but through the mediating role of business process agility. Practical implications The findings provide a practical foundation for the organisation’s networking capability to be framed by market orientation and business process agility to enhance firm performance. Originality/value The results indicate that market orientation mediates the relationship between networking capability and business process agility. The findings also reveal that business process agility mediates the relationship between market orientation and firm performance. This study also reconceptualises market orientation to embody the inter-partner coordination dimension and reconceptualise business process agility to embody business partner switching capability.

Dimension of corruption and firm performance: an empirical analysis from BEEPS survey

2020 ◽  
Vol 47 (3) ◽  
pp. 384-403 ◽  
Author(s):  
Gaygysyz Ashyrov ◽  
Isaac Nana Akuffo
Keyword(s):  
Firm Performance ◽  
Peer Review ◽  
Empirical Analysis ◽  
Structural Equation ◽  
Business Environment ◽  
Least Square ◽  
Equation Modeling ◽  
Firm Productivity ◽  
Content Type ◽  
Different Dimensions

PurposeThe link between corruption and firm performance has received considerable critical attention. However, until now, far too little attention has been paid to different dimensions of corruption and their relationship with firm performance. The aim of this paper is, therefore, to examine the relationship between dimensions of corruption and firm productivity.Design/methodology/approachThis paper uses the fifth wave of Business Environment and Enterprise Performance Survey, which is based on the survey questionnaire with senior managers of 16,566 randomly selected firms across 32 developing countries. Empirical analysis employs structural equation modeling (SEM) and instrumental variable two-stage least square (IV 2SLS) estimation techniques.FindingsOur results revealed that political corruption and red tape have a positive relationship with firm productivity. We also found that perceived extent of bribe and corruption experience are positively related to the firm productivity.Practical implicationsFindings suggest that multifaceted dimensions of corruption exist. Therefore, policymakers should develop anticorruption measures by taking into account these dimensions. In addition, policymakers should focus on improving institutional quality by reforming laws and measures to detect and punish government officials.Originality/valueSo far only few studies have looked at the dimensions of corruption; therefore, this study seeks to examine the effect of different dimensions of corruption together on firm performance in postcommunist countries.Peer reviewThe peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-08-2019-0476

The interplay between digital manufacturing and dynamic capabilities: an empirical examination of direct and indirect effects on firm performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Marco Savastano ◽  
Nicola Cucari ◽  
Francesco Dentale ◽  
Ari Ginsberg
Keyword(s):  
Firm Performance ◽  
Structural Equation ◽  
Manufacturing Industry ◽  
Dynamic Capabilities ◽  
Manufacturing Sector ◽  
Disruptive Innovation ◽  
Equation Modeling ◽  
Digital Manufacturing ◽  
Empirical Examination ◽  
Content Type

PurposeThe purpose of this paper is to identify and empirically examine the dynamic capabilities (DC) that drive the development of digital manufacturing capabilities (DMC) and the role of DMC in mediating their influence on firm performance.Design/methodology/approachBased on the dynamic capabilities view (DCV) of the firm, the authors develop a set of hypotheses that are tested through a survey of 110 managers in the manufacturing sector. The hypothesized model is tested through structural equation modeling.FindingsThe results indicate that although higher-order DC (HODC) have a strong influence on firm performance, their effects are partially mediated by the DMC that they generate, by positively affecting the extended production process.Practical implicationsThe analysis contributes to a better understanding of the interplay between levels of the DC hierarchy by finding that DMC play an important role in translating HODC into enhanced firm performance.Originality/valueBy complementing the DCV with the disruptive innovation theory in a specific fast changing context, this study introduces a new construct (DMC) providing an original and considerable contribution to the literature. To the best of the authors’ knowledge, it is the first empirical study that includes and assesses all these elements together in the context of the manufacturing industry.

Comprehending a knowledge framework as a source of dynamic capabilities in IJVs through PLS-SEM

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Madhavi Kapoor ◽  
Vijita Aggarwal
Keyword(s):  
Knowledge Transfer ◽  
Absorptive Capacity ◽  
Structural Equation ◽  
Dynamic Capabilities ◽  
Global Market ◽  
Innovation Performance ◽  
International Joint Ventures ◽  
Mediation Effect ◽  
Equation Modeling ◽  
Content Type

Purpose This study aims to investigate the relationship among knowledge transfer enablers, knowledge transfer process, absorptive capacity and innovation performance in the context of Indian international joint ventures (IJVs). These elements are woven with the thread of dynamic capabilities theory (DCT) into an integrated framework. Design/methodology/approach Data analysis is conducted on a quantitative survey of 196 IJVs with partial least squares structural equation modeling as the statistical technique. Findings Co-learning strategy, collaborative trust culture, information technology-based resources and systems and organizational structural design are found to be significant knowledge transfer enablers. Absorptive capacity has a complementary partial mediation effect on the positive relationship between knowledge transfer and innovation performance of Indian IJVs. Research limitations/implications The study has pioneered in explicating the criticality of IJV’s internal dynamics to cope with the global market dynamism in a much needed Indian context. Practitioners must focus on building dynamic capabilities in IJVs to make them sustainably competitive, as proposed and evaluated by this study. Further, IJV managers need to strategize their resources, routines and structure dynamically to foster knowledge transfer and innovativeness. Originality/value The comprehensive model on DCT offered by this study is rare to match in literature with a completely new context, which is the need of the hour.

Bifurcating the dynamic dominant logic: technical and evolutionary patterns of action

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chandra Dwipayana ◽  
Ruslan Prijadi ◽  
Mohammad Hamsal
Keyword(s):  
Structural Equation ◽  
Dynamic Capabilities ◽  
Digital Transformation ◽  
Superior Performance ◽  
Integrative Model ◽  
Equation Modeling ◽  
Content Type ◽  
Dominant Logic ◽  
Term Performance ◽  
Evolutionary Fitness

PurposeThis study proposed the integrative model of dynamic dominant logic (DL) with exploitation (EP) and exploration (ER) as a pattern of actions in endeavoring firm performance (FP). This study also intended to explain the multiple patterns of DL in creating technical and evolutionary fitness simultaneously.Design/methodology/approachThis study used a cross-sectional quantitative analysis of the Indonesian commercial banking population facing digital transformation and was analyzed using covariance-based structural equation modeling through parceling.FindingsThe model confirmed that DL positively affects EP and ER. It also revealed that DL indirectly impacts FP through EP, indicating changes in the traditional banking business through the strong acceptance of “new realities” in adapting to the rapid growth of technology. Hence, this study discovered that during the recent banking digital transformation, the beneficial inertia of the technical pattern of action might lose effectiveness in creating superior performance.Practical implicationsDL is vital in locking short-term performance while maintaining long-term performance opportunities through EP and ER to promote digital transformation. Accordingly, it induced banks to adopt new technology for value creation and fortifying competitive advantage.Originality/valueThis study provided a theory about how DL links the firm's decision-making process by promoting multiple patterns of action in achieving technical and evolutionary fitness. It highlighted the DL as a resource conceptualization that promotes resource development through EP and ER as microfoundation of dynamic capabilities during the tension of institutionalization and digital transformation.

Strategic orientations, firm performance and the moderating effect of absorptive capacity

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Manuel-Alejandro Ibarra-Cisneros ◽  
María del Rosario Demuner-Flores ◽  
Felipe Hernández-Perlines
Keyword(s):  
Firm Performance ◽  
Market Orientation ◽  
Absorptive Capacity ◽  
Entrepreneurial Orientation ◽  
Manufacturing Firms ◽  
Moderating Effect ◽  
Equation Modeling ◽  
Content Type ◽  
Strategic Orientations ◽  
The Relationship

PurposeThe purpose of this article is to study the moderating effect of absorptive capacity, defined as the set of organizational routines and processes through which companies acquire, assimilate, transform and exploit knowledge to produce a dynamic organizational capacity (Zahra and George, 2002), in three strategic orientations: market orientation; technology orientation and entrepreneurial orientation and their positive relationship in the performance of the medium and large Mexican manufacturing firms. Likewise, it is determined whether these three combined SOs influence firm performance.Design/methodology/approachThe data was collected from 171 medium and large-sized Mexican manufacturing firms. The proposed hypotheses are tested using partial least square structural equation modeling (PLS-SEM).FindingsDespite the importance of knowledge for the development of firms, the results indicate that the moderating effect of absorptive capacity is only present in the relationship between entrepreneurial orientation and firm performance. That is, firms cannot take advantage of knowledge simultaneously between the three strategic orientations. For their part, market orientation and entrepreneurial orientation exert a positive influence on firm performance.Practical implicationsThe main practical implication for the manufacturing industry is that they must develop mechanisms to detect what kind of knowledge affects each strategic orientation, in this way it can make the absorptive capacity influence the relationships between SO and FP.Originality/valueThe main contribution consists of studying the moderating effect of the absorptive capacity on the relationship between three strategic orientations and firm performance, and not concentrating solely on the simultaneous use of these strategies as is commonly done.

Investigate the role of distributed leadership and strategic flexibility in fostering business model innovation

2019 ◽  
Vol 13 (1) ◽  
pp. 93-112 ◽  
Author(s):  
Suqin Liao ◽  
Zhiying Liu ◽  
Lihua Fu ◽  
Peichi Ye
Keyword(s):  
Business Model ◽  
Distributed Leadership ◽  
Structural Equation ◽  
Dynamic Capabilities ◽  
Business Model Innovation ◽  
Equation Modeling ◽  
High Tech ◽  
Strategic Flexibility ◽  
Environmental Dynamism ◽  
Content Type

PurposeThe purpose of this paper is to examine whether the new distributed leadership patterns is an important driver for innovating business model. By synthesizing insights from the dynamic capabilities perspective, it also explores how and when distributed leadership enhances the business model innovation (BMI) by involving strategic flexibility as a mediator and environmental dynamism as important contingency.Design/methodology/approachA survey via questionnaire was conducted with 262 CEOs and 262 senior managers from Chinese high-tech companies that provided the research data. Structural equation modeling and linear regression analyses were used to test the time-lagged data, and then the main research questions were responded to.FindingsThe analysis reveals that distributed leadership has a significant direct influence on BMI, and that distributed leadership also indirectly affects BMI by enhancing strategic flexibility. Environmental dynamism strengthens the positive effect of distributed leadership on BMI under strategic flexibility.Originality/valueThis paper advances and enriches the emerging stream of BMI research. It presents an innovative conceptual analysis of the antecedents of BMI, and it shows a possible solution for BMI that complements extant research that considers which and how the leadership style of the organizations affects the business model change.

scholarly journals The effect of IC components on innovation performance in Serbian companies

2018 ◽  
Vol 48 (3) ◽  
pp. 448-466 ◽  
Author(s):  
Sladjana Cabrilo ◽  
Aino Kianto ◽  
Bojana Milic
Keyword(s):  
Structural Equation ◽  
Deep Understanding ◽  
Business Environment ◽  
Innovation Performance ◽  
Equation Modeling ◽  
Content Type ◽  
Innovative Performance ◽  
Positive Effects ◽  
Innovation Potential ◽  
Structural Capital

Purpose In investigating the linkage between intellectual capital (IC) and innovation, it is important not only to explore how IC as a whole is associated with organizations’ innovative performance but also to gain a deep understanding of the role of different IC components (groups of intangibles) in companies’ innovation performance, which is the purpose of this paper in the context of Serbian companies. Design/methodology/approach This research is based on survey data collected from 100 Serbian companies with at least 100 employees during 2014/2015. Six IC components were analyzed (human, structural, internal relational, external relational, renewal and entrepreneurial) in terms of their effect on innovation performance. Analyses were conducted using structural equation modeling and correlation analysis. Findings Findings demonstrate that renewal capital, internal relational capital and structural capital have statistically significant positive effects on overall innovative performance in Serbian companies. Practical implications The outcomes reveal potential and barriers within IC that are crucial to innovation performance in Serbian companies. In this way, this study enables a deeper understanding of intangible drivers of innovation and highlights possibilities to foster intangible innovation potential in Serbian companies. Originality/value As context (economic and cultural) has emerged as a relevant factor in researching IC, this study is original in investigating IC effect on innovation within the Serbian business environment. Additionally, the broad sexpartite taxonomy of IC contributes to a wider understanding of knowledge and its linkages to innovation.

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