scholarly journals Organizational learning, innovativeness and performance of financial service firms in an emerging market: examining the mediation effects of customer-focused strategy

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yuliansyah Yuliansyah ◽  
Hussain Gulzar Rammal ◽  
Maryani Maryani ◽  
Ismie Roha Mohamed Jais ◽  
Zuraidah Mohd-Sanusi
Keyword(s):  
Organizational Learning ◽  
Dynamic Capabilities ◽  
Emerging Market ◽  
Financial Service ◽  
Service Firms ◽  
Mediation Effects ◽  
Content Type ◽  
Resource Flexibility ◽  
Survey Responses ◽  
Financial Service Firms

PurposeThe study investigates the extent to which organizational learning and innovativeness can improve the firms' performance through a customer-focused strategy.Design/methodology/approachData were collected from Indonesian financial service firms using a questionnaire-based survey. The 157 useable survey responses were analysed to test the proposed hypotheses using SmartPLS.FindingsThis study finds that both organizational learning and innovativeness have a positive effect on performance. The effect of organizational learning on performance depends on the variations of the customer-focused strategy. However, innovativeness does not mediate through customer-focused strategy to enhance performance.Practical implicationsIn firms that implement business model innovation, managers should focus on resource flexibility. Where it is responsive, managers need to be concerned with ensuring various uses of existing resources to understand the performance effectively.Social implicationsAs one of the types of dynamic capabilities, organizational learning and innovativeness are also important antecedents of performance.Originality/valueThis study extends the business innovation model from the adaptability of customer-focused strategy. The findings confirm that organizational learning has a prominent role in meeting customer needs for a dynamic market.

Interacting with Muslim customers for new service development in a non-Muslim majority country

2019 ◽  
Vol 10 (4) ◽  
pp. 1017-1036 ◽  
Author(s):  
Intekhab Alam
Keyword(s):  
Financial Services ◽  
Emerging Market ◽  
Financial Service ◽  
Service Development ◽  
Service Firms ◽  
New Service Development ◽  
Content Type ◽  
Customer Interaction ◽  
Muslim Majority ◽  
Financial Service Firms

Purpose The purpose of this paper is to discuss the process of interaction with the Muslim customers in developing new Islamic financial services in a secular and non-Muslim majority emerging country, India. Design/methodology/approach Data were collected using a multiple case study methodology in which the service managers of 23 financial service firms and their customers were interviewed. A total of 46 managers and 31 Muslim customers provided data for this paper. Findings A service firm must interact with its Muslim customers to obtain key input and information for developing new Islamic financial services, particularly in a Muslim minority country. The Muslim customers are willing to work with the financial service firms for the purpose of new service development and are a good source of information for new Islamic financial services. Practical implications The paper has implications for the financial service firms interested in achieving growth and prosperity by developing and marketing new services to the growing population of Muslim customers in the emerging markets, particularly India. Originality/value The issue of customer interaction in new service development is a key concept in the extant literature, yet no study has explored this concept for the Islamic banking and financial products in a non-Muslim majority emerging market. This is the first paper that has applied the customer interaction in new service development theory to the interaction process of Muslim customers in a non-Muslim majority country and, thus, addressed a worthwhile research gap.

Consumer financial anxiety

2014 ◽  
Vol 32 (6) ◽  
pp. 515-533 ◽  
Author(s):  
Devon S. Johnson ◽  
Mark Peterson
Keyword(s):  
Financial Crisis ◽  
Financial Services ◽  
Financial Service ◽  
Service Firms ◽  
Regulatory Oversight ◽  
Content Type ◽  
The Usa ◽  
Financial Anxiety ◽  
The 2008 Financial Crisis ◽  
Financial Service Firms

Purpose – The purpose of this paper is to examine how small and medium-sized, regional financial service firms reacted to the financial crisis by helping their customers cope with their heightened state financial anxiety during the Economic Crisis of 2008. It also examines the variety of strategies pursued by these firms to rebuild consumer trust in their brands in the ensuing years. Design/methodology/approach – The authors relied on grounded theory as a methodological approach to understand the unfolding situation of the financial crisis and to inductively develop a framework explaining managers’ experience with consumer financial anxiety and trust. Data collection involved key informant interviews with 20 CEOs and senior marketing and sales professionals of financial service firms in the USA. Findings – The study discloses a desire among many retail financial institutions to re-personalize their relationships with customers following the financial crisis. One motivating factor for this has been a demand by regulators for more evidence that the firm really knows its customers. The paper also found that some managers are ambivalent about mentioning regulatory oversight and Federal Deposit Insurance Corporation (FDIC) insurance to customers because it is unclear whether these issues heighten or reduce consumer fears. More research is needed to provide guidance to managers on how mention of regulatory oversight may be used strategically in a crisis. Research limitations/implications – This study was limited to regional financial service firms in the USA with assets of less than$1 billion. The extension of the study to compare other geographical markets or to large financial service firms remains to be done. This investigation could tell us whether consumers now trust regional banks more than they do large national banks, difference in the strategies they employed and whether they resulted in different rates of brand equity recovery. Practical implications – This paper suggests that the 2008 financial crisis may have resulted in permanent changes in consumer attitudes to financial services. As one manager suggested, “consumers have moved from a trust-me phase to a show-me phase.” This implies that financial service managers need to rethink how they build consumer trust. Such managers would do well to consider ways of integrating actions that reinforce the company's integrity and commitment to its customers into different stages of their firms’ relationships with consumers. Social implications – Many small and medium-sized banks are re-embracing community-banking practices including building strong personal relationships with stakeholders after years of underinvesting due to these banks’ pursuit of property development investments. As a result of these developments, a stronger financial services industry could likely emerge. Accordingly, trust for this battered industry among consumers could improve. Originality/value – This paper discuss how the depersonalization of customer interactions by financial services firms through increased use of electronic channels and the use of call centers as primary interaction points may have weakened customer relationships and worsened consumer anxiety during the 2008 financial crisis. Additionally, it discusses both the failure of regulatory oversight and the symbolic effects of the big bank failures and the Madoff scandal in heightening consumer fears. Based on managerial interviews the paper discusses how financial service firms countered consumer anxiety by providing social support to customers, by repersonalizing customer interactions, and by reconnecting with local community values.

Does organizational learning differ in manufacturing and service firms? Evidence from Mexico

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rodrigo Garza Burgos ◽  
James P. Johnson ◽  
Misty L.L. Loughry
Keyword(s):  
Organizational Learning ◽  
Firm Performance ◽  
Developing Economies ◽  
Emerging Market ◽  
Manufacturing Firms ◽  
Learning Processes ◽  
Service Firms ◽  
Content Type ◽  
Individual Level ◽  
The Individual

Purpose This paper aims to investigate organizational learning (OL) at the individual, group and organizational levels in service and manufacturing firms in Mexico to determine if there are differences in how OL operates or in the link between OL and firm performance. Design/methodology/approach The authors surveyed experienced managers from 1,093 Mexican firms across a range of service and manufacturing industries, using the Strategic Learning Assessment Map (Bontis et al., 2002). Findings Organizational learning processes (OLPs) were highly similar in service and manufacturing firms and OL had a strong positive association with performance in both types of firms. OLPs at the individual level had a slightly greater impact on performance for service firms. Research limitations/implications The results provide further evidence of the strong link between OL and firm performance. There were no significant correlations of firm size or age with the OLPs or firm performance. However, the micro-companies that constitute 95% of Mexican firms were under-represented in the sample. Practical implications OLPs are equally important in manufacturing and service firms and across developed and developing economies. Therefore, OL should pervade all organizations. Managers should create cultures that encourage employees to produce new ideas and share those ideas with peers and supervisors through both formal and informal communication processes. Social implications The findings indicate that the individual employees’ contributions to OL are the main driver of the impact of OLPs on firm performance and that individual-level learning processes are even more relevant for service firms than for manufacturing firms. As value co-production takes place simultaneously at the moment of the service delivery/service consumption, the individual learning stock is fundamental for enhanced firm performance. Originality/value The authors believe this to be the first large-scale study to compare OLPs in manufacturing and service firms across industries in a major emerging market.

Financial service firms in an emerging market

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Keyword(s):  
Design Methodology ◽  
Emerging Market ◽  
Business Strategies ◽  
Service Firms ◽  
Improve Performance ◽  
Content Type ◽  
Pertinent Information ◽  
Key Resources ◽  
Financial Service Firms ◽  
Practical Implications

Purpose 10;This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings Companies aiming to improve performance should ensure business strategies are customer-oriented. Desired outcomes become likelier still through a strong emphasis on organizational learning and innovativeness that is supplemented by a flexible approach to optimize the use and impact of key resources. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

scholarly journals Identifying Decisive Socio-Political Sustainability Barriers in the Supply Chain of Banking Sector in India: Causality Analysis Using ISM and MICMAC

Mathematics ◽  
2021 ◽  
Vol 9 (3) ◽  
pp. 240
Author(s):  
Wen-Kuo Chen ◽  
Venkateswarlu Nalluri ◽  
Man-Li Lin ◽  
Ching-Torng Lin
Keyword(s):  
Supply Chain ◽  
Banking Sector ◽  
Matrix Multiplication ◽  
Financial Service ◽  
Assessment Process ◽  
Service Firms ◽  
Fuzzy Delphi ◽  
Political Sustainability ◽  
Improvement Programs ◽  
Financial Service Firms

The banking sector often plays a crucial role in the improvement of infrastructure and economy of any country. In many emerging economies, it is apparent that a wide variety of social and political issues are related to the associated supply chain sustainability of financial service firms. Although such sustainability and its implementation issues have largely been addressed in existing research literature and in practice for many years, the attention towards socio-political sustainability aspects has been quite limited. Thus, this study attempted to explore the determinants for improving socio-political sustainability in financial service firms. Through adopting the fuzzy Delphi method (FDM), performing an exhaustive literature review, and conducting semi-structured interviews with the decision-makers of the service firms, nine key barriers for socio-political sustainability were first identified in this study. Then, the influence relationships of the key barriers were assessed by 15 experts. During the assessment process, the interrelationships and their dependence powers among key barriers were analyzed using the interpretive structural modelling (ISM) approach and cross-impact matrix multiplication applied to classification (MICMAC) methods. The assessment results show that among the studied barriers, “antisocial considerations”, “unstable political climate”, and “lack of political coherence” are the decisive barriers that affect the socio-political sustainability in the supply chain of financial service firms. The knowledge in understanding and reducing these decisive barriers can provide service sector practitioners, especially those with limited resources, the enhanced capability to conduct better planning and designing of effective and continuous improvement programs, so as to win over new consumers and retain existing clients by offering sustainable services.

scholarly journals Organizational learning capability and open innovation

2018 ◽  
Vol 56 (6) ◽  
pp. 1217-1231 ◽  
Author(s):  
Marta Peris-Ortiz ◽  
Carlos Alberto Devece-Carañana ◽  
Antonio Navarro-Garcia
Keyword(s):  
Organizational Learning ◽  
Open Innovation ◽  
Dynamic Capabilities ◽  
Qualitative Comparative Analysis ◽  
Incremental Innovation ◽  
Learning Capability ◽  
Content Type ◽  
Knowledge Based ◽  
Learning Factors ◽  
The Relationship

PurposeThe purpose of this paper is to investigate the relationship between open innovation (OI) and radical and incremental innovation success in knowledge-based companies. The company’s human resources and organizational learning capability are considered as the fundamental nexus of this relationship.Design/methodology/approachAt the conceptual level, the paper analyzes the relationships between dynamic capabilities and OI and between OI and innovation success. Fuzzy-set qualitative comparative analysis (fsQCA) was used to study how innovation is implemented in 29 companies.FindingsFsQCA identifies combinations of factors that facilitate incremental innovations. These combinations reveal the path to implementing company policies that enable incremental innovation and foster radical innovation.Research limitations/implicationsThe nature of the study sample means that the findings should be generalized with precaution. The most valuable implication is the identification of combinations of factors that help companies manage innovation.Originality/valueScarce literature links organizational learning factors and OI to different types of innovation. The use of fsQCA to analyze the cases also marks a breakthrough in the innovation literature.

Examining the role of logistics 4.0 enabled dynamic capabilities on firm performance

2020 ◽  
Vol 31 (3) ◽  
pp. 607-628 ◽  
Author(s):  
Surajit Bag ◽  
Shivam Gupta ◽  
Zongwei Luo
Keyword(s):  
Firm Performance ◽  
Operations Management ◽  
Structural Equation ◽  
Dynamic Capabilities ◽  
Organizational Capabilities ◽  
Technological Capabilities ◽  
Capability Development ◽  
Content Type ◽  
Questionnaire Online ◽  
Survey Responses

PurposeThe study investigates the effect of technological capabilities, organizational capabilities and environmental capabilities on Logistics 4.0 capabilities and also examines the effect of Logistics 4.0 capabilities on firm performance.Design/methodology/approachThe proposed theoretical framework is tested using WarpPLS 6.0 software. We selected samples from the Automotive Component and Allied Manufacturers in South Africa. Initially, we sent the structured questionnaire online using Google forms to 800 potential respondents. After doing follow ups, we received 230 completed survey responses. Further, data preparation is done using established scientific approach and we checked suitability of its use in structural equation modelling. After ensuring all necessary checks are completed, the results are found satisfactory to further proceed with testing of research hypotheses.FindingsIt is observed that technological capabilities, organizational capabilities and environmental capabilities show significant effect on Logistics 4.0 capabilities. However, the outcome of technological capabilities and environmental capabilities on Logistics 4.0 capabilities (ß = 0.27) is found stronger than organizational capabilities. Logistics 4.0 capabilities shows significant effect on firm performance.Practical implicationsIt is important that the sustainability goals are aligned with Logistics 4.0 strategies. Managers need to increase focus towards development of Logistics 4.0 dynamic capabilities that enhance agility and responsiveness in the supply chain. Managers should check the financial performance and market conditions continuously to further review logistics performance as this can influence the overall firm performance.Originality/valueThis study advances the literature on Logistics 4.0 applications in operations management by investigating the key links such as Logistics 4.0 capability development and firm performance.

How organizations implement new practices in dynamic context: role of deliberate learning and dynamic capabilities development in health care units

2019 ◽  
Vol 23 (6) ◽  
pp. 1176-1195 ◽  
Author(s):  
Shashank Mittal
Keyword(s):  
Health Care ◽  
Organizational Learning ◽  
Process Model ◽  
Dynamic Capabilities ◽  
Implementation Process ◽  
Improvement Program ◽  
Content Type ◽  
Deliberate Learning ◽  
Care Improvement ◽  
Practice Implementation

Purpose Organizations learn semi-automatically through experience or consciously through deliberate learning efforts. As there seems to be a “black-box” in the possible linkages between deliberate learning and new practice implementation, this paper aims to develop and test a process model, linking deliberate learning and new practice implementation through complementary competencies of task and environmental flexibility. Design/methodology/approach As part of a field study, health-care improvement program (to transfer the improvement training program for new practice implementation) of 186 HCUs was used for testing our hypothesis. In addition to descriptive statistics, multiple hierarchical regressions and bootstrapping were used to test the study hypotheses. Findings Findings suggest that deliberate learning is positively and significantly related with new practice implementation, and dynamic capabilities in the form of task and environmental flexibility mediates this relationship. Research limitations/implications The present study makes theoretical and practical contributions by linking literature from new practice, organizational learning and dynamic capabilities; and by delving into the deliberate learning activities undertaken by health-care units. Originality/value Organizational learning in health care has almost become inevitable today due to the ever-changing dynamics of the industry. Barring handful of studies, the current state of literature is almost entirely tilted towards experience-based learning and deliberate learning is not well studied. To address this gap, the study aims to develop and test a process model linking development of dynamic capabilities with deliberate learning and new practice implementation. Further, findings of this study will help organizations and managers to understand and thereby effectively manage new practice implementation process through the use of deliberate activities.

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