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.

Business model innovation and growth of manufacturing SMEs: a social exchange perspective

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jiawen Chen ◽  
Linlin Liu ◽  
Yong Wang
Keyword(s):  
Business Model ◽  
Social Exchange ◽  
Structural Equation ◽  
Firm Growth ◽  
Structural Changes ◽  
Resource Constraints ◽  
Business Model Innovation ◽  
Customer Relationship ◽  
Equation Modeling ◽  
Content Type

PurposeThis study investigates business model innovation in small- and medium-sized manufacturing enterprises (SMEs) and its impact on firm growth.Design/methodology/approachThe study was based on analyzing data collected through a questionnaire survey. Structural equation modeling was applied to test the hypotheses.FindingsBusiness model innovation has a positive effect on SME growth in the manufacturing sectors. Moreover, growth is also achieved through the indirect effect of business model innovation on customer trust and commitment.Practical implicationsManagers will benefit from understanding how business model innovation can help their companies to overcome resource constraints and achieve sustained growth. When manufacturing SMEs engage in modular or structural changes to their business model, they may find it worthwhile to focus on maintaining a relationship of trust and commitment with their customers.Originality/valueThis study highlights business model innovation as a unique and important, yet underexplored, factor in manufacturing SME growth. The findings also untangle the complex processes of customer relationship management by which business model innovation improves manufacturing competitive advantage for SMEs.

Market orientation, strategic flexibility and business model innovation

2020 ◽  
Vol 35 (4) ◽  
pp. 771-784
Author(s):  
Dong Yang ◽  
Zelong Wei ◽  
Huibin Shi ◽  
Jie Zhao
Keyword(s):  
Market Orientation ◽  
Business Model ◽  
Dynamic Capabilities ◽  
Business Model Innovation ◽  
Future Research ◽  
Strategic Flexibility ◽  
Internal Dynamic ◽  
Content Type ◽  
Resource Flexibility ◽  
Positive Effect

Purpose This study aims to investigate how market orientation (MO) motivates firms to develop business model innovation and how such effects are moderated by strategic flexibility. Design/methodology/approach In this study, a questionnaire-based survey was undertaken to test the proposed hypotheses. The empirical study was conducted on a sample of 204 firms using two key informants (408 respondents) in China. The regression model is used to test the proposed model. Findings This research finds that both responsive market orientation (RMO) and proactive market orientation (PMO) have a positive effect on business model innovation. The effects of RMO and PMO on business model innovation are contingent on resource (coordination) flexibility in different ways. More importantly, this study finds that resource flexibility enhances the positive effect of RMO and weakens the positive effect of PMO. The study also finds that coordination flexibility enhances the positive effect of PMO. Research limitations/implications Future research can explore the internal mechanisms through which RMO and PMO promote business model innovations. Although the study finds that both the MOs promote business model innovation, they may promote business model innovation through different mediating effects. Future research can explore the role of external dynamic capabilities. This research mainly focuses on the internal dynamic capability of focal firms. However, as a focal firm-centered boundary spanning activity system, to transform into a new business model, firms not only need to reconfigure internal resource base, but also need to realign external collaboration network. Practical implications This research also bears important managerial implications. First, firms should be aware of the positive effect of MO on business model innovation. Firms with higher level of RMO or PMO can promote business model innovation. Second, when firms implement RMO for business model innovation, managers should focus on resource flexibility. Where MO is responsive, marketing managers need to be concerned with ensuring various applications of existing resource so as to understand effectively the current customers and market domain. Third, to leverage PMO for business model innovation, firms should adopt coordination flexibility. For firms with higher level PMO, firms should try to find the new internal coordination process for customer latent needs. Originality/value The conclusion extends the business model innovation research from the view of dynamic capabilities. As one of types of dynamic capabilities, MO is also the important antecedent of business model innovation. Further, this research also discusses the role strategic flexibility plays in business model innovation.

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.

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.

Impact of business model innovations on SME’s innovativeness and performance

2019 ◽  
Vol 14 (4) ◽  
pp. 521-539 ◽  
Author(s):  
Rimantas Gatautis† ◽  
Egle Vaiciukynaite ◽  
Asta Tarute
Keyword(s):  
Business Model ◽  
Structural Equation ◽  
Positive Impact ◽  
Equation Modeling ◽  
Future Research ◽  
Data Set ◽  
Content Type ◽  
Innovation Activities ◽  
Organizational Inertia ◽  
Multiple Characteristics

Purpose Business model innovations (BMIs), their drivers and outcomes are attracting increasing attention in academic literature. However, previous studies have mainly focused on large companies, while knowledge of BMI in small-to-medium-sized enterprises (SMEs) is limited. Therefore, the purpose of this paper is to add new insights into how related BMI drivers, practices and outcomes are in relation to SMEs. Design/methodology/approach An extensive review of the existing literature was performed. Consequently, the relationships between BMI drivers, BMI practices and outcomes of BMI were developed as a conceptual framework. An empirical study was carried out. A structural equation modeling (SEM) procedure was used to empirically test the model using a quantitative data set of Lithuanian SMEs (n=73). Findings The study provides insights into the relations between BMI drivers, BMI practices and outcomes of BMI in SMEs. The findings of SEM, four drivers (innovation activities, strategic orientation, market and technology turbulence, respectively) are indicated to contribute to BMI of SMEs. In addition, the results proved that the implementation of BMI practices leads to strategic and architectural changes in firms and has a positive impact on SMEs performance and innovativeness. Research limitations/implications Empirical research is focused on a limited number of internal and external BMI drivers, which have an influence on BMI in SMEs from one geographical region. Consequently, there are many external and internal BMI drivers which also may have an influence on BMI in SMEs, such as industry life cycle, organizational inertia and leadership. Meanwhile, SMEs possess multiple characteristics, i.e. a phase of maturity, gender of CEO, firm size and industry; therefore, the aforesaid aspects are considered to be significant limitations. In addition, the importance of SMEs characteristics as mediators for the effects on a firm’s performance and innovativeness should be considered in future research avenues. Practical implications Findings of this research can be used by SME managers to better understand how firms might actively engage in BMI practices, what drivers lead to BMI and, in turn, affect their firm’s performance and innovativeness. SME managers should be encouraged to pay attention to strategic and architectural changes of BM that can contribute to enterprise performance and innovativeness. Originality/value This paper adds to the stream of BMI research by empirically exploring drivers and outcomes of BMI in SMEs. In addition, this paper fulfills research gaps proposed by Bouwman et al. (2018), Foss and Saebi (2017), Heikkilä, Bouwman and Heikkilä (2018) and Lambert and Davidson (2013), and enhances the current overall understanding of BMIs.

Enhancing supply chain performance through collaborative planning, forecasting, and replenishment

2019 ◽  
Vol 25 (4) ◽  
pp. 625-646 ◽  
Author(s):  
Hassan Barau Singhry ◽  
Azmawani Abd Rahman
Keyword(s):  
Supply Chain ◽  
Structural Equation ◽  
Dynamic Capabilities ◽  
Collaborative Planning ◽  
Mediating Effect ◽  
Equation Modeling ◽  
Supply Chain Performance ◽  
Innovation Capability ◽  
Manufacturing Companies ◽  
Content Type

Purpose Despite the importance of collaborative planning, forecasting, and replenishment (CPFR), its influence on supply chain innovation capability (SCIC) and supply chain performance (SCP) has not been sufficiently examined. The purpose of this paper is to examine the antecedence of SCP through CPFR and SCIC. Design/methodology/approach Through cluster and stratified random sampling, 286 responses from top managers of 1,574 Nigerian manufacturing companies were analyzed. Data analysis was performed using structural equation modeling with AMOS graphics. Findings The results show that SCIC has a full mediating effect on the relationship between CPFR and SCP. Specifically, CPFR has a significant relationship with both SCP and SCIC, and SCIC also relates significantly to SCP. Practical implications This study offers implications for manufacturers in developing countries in general, and in Nigeria in particular, by providing a guideline on how to improve SCP through CPFR. Originality/value The paper contributes to the limited studies on CPFR and SCP by extending this line of study into the realm of innovation capability and innovation. It integrates the social exchange theory and the dynamic capabilities theory to examine the collaborative processes of CPFR in the supply chain context. This study stressed the importance of boundary theoretical spanning by extending CPFR and SCP into the domain of innovation capability.

scholarly journals Six Sigma for dynamic capabilities development: becoming more flexible organizations

2020 ◽  
Vol 11 (1) ◽  
pp. 35-56 ◽  
Author(s):  
Leopoldo Gutierrez-Gutierrez ◽  
Vanesa Barrales-Molina ◽  
Marisel Fernandez-Giordano ◽  
Beatriz López-Morales
Keyword(s):  
Significant Relationship ◽  
Six Sigma ◽  
Structural Equation ◽  
Dynamic Capabilities ◽  
Knowledge Integration ◽  
Organizational Adaptation ◽  
Equation Modeling ◽  
Organizational Flexibility ◽  
Content Type ◽  
The Relationship

Purpose Once the operational benefits of Six Sigma are well-recognized in the literature, this research advances the strategic advantages of this initiative. Thus, this paper aims to analyze how dynamic capabilities (DCs) mediates the relationship between Six Sigma implementation and organizational flexibility, not discussed in the literature yet. Design/methodology/approach Data from 66 Six Sigma European firms are used for a structural equation modeling and additional tests –Baron and Kenny’s test and Preacher and Hayes’s test – to analyze the mediating role of DCs. Following the scholars’ recommendations, the authors have created a second-order factor explained by knowledge absorption, organizational learning and knowledge integration to measure DCs. Flexibility, understood as the capacity for organizational adaptation, is measured through its operational and strategic dimensions. Findings The results show a significant relationship between Six Sigma practices – team management and statistical metrics – and DCs. In addition, the authors find support for a significant relationship between DCs and the operational and strategic dimensions of flexibility. Finally, the results confirm that DCs act as a mediating variable in the relationship between Six Sigma practices and flexibility. Practical implications The study contributes to literature that supports the decision to implement Six Sigma. In particular, key Six Sigma practices are identified for those managers who wish to foster DCs generation and organizational flexibility inside their companies. Originality/value This research analyzes the relationship between Six Sigma and strategic variables, answering the call for research about Six Sigma influence on long-term organizational success.

Organizational flexibility and project portfolio performance: the roles of innovation, absorptive capacity and environmental dynamism

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Aamir Saeed ◽  
Yuanyuan Jiao ◽  
Muhammad Mohsin Zahid ◽  
Humaira Tabassum ◽  
Shazia Nauman
Keyword(s):  
Structural Equation ◽  
Equation Modeling ◽  
Portfolio Performance ◽  
Project Portfolio ◽  
Environmental Dynamism ◽  
Organizational Flexibility ◽  
Content Type ◽  
Mediating Role ◽  
The Relationship

PurposeThe aim of the current study is to empirically assess the effects of organizational flexibility on project portfolio (PP) performance, with the mediating role of innovation and moderating effects of environmental dynamism (ED) and absorptive capability (AC).Design/methodology/approachData were collected from 173 manufacturing firms and analyzed using structural equation modeling (SEM) with the help of a partial least squares (PLS) approach.FindingsResults show that innovation partially mediates the relationship between organizational flexibility and PP performance. Furthermore, the moderating effect of ED between organizational flexibility and innovation was analyzed. Additionally, AC also observed as a moderator between innovation and PP performance.Originality/valueBased on the resource-based view, this study contributes to the literature by addressing the roles of innovation, ED and AC in the relationship between organizational flexibility and PP performance. Implications for managers also discussed in the end; for example, to be more competitive, they should incorporate flexibility into the firm to encourage innovation. It also emphasizes to select new innovative opportunities that correspondingly have effects on the PP performance.

scholarly journals Antecedent and outcomes of innovation-based growth strategies for exporting SMEs

2017 ◽  
Vol 24 (4) ◽  
pp. 733-752 ◽  
Author(s):  
Mohammad Javadinia Azari ◽  
Tage Koed Madsen ◽  
Øystein Moen
Keyword(s):  
Business Model ◽  
Product Innovation ◽  
Structural Equation ◽  
Negative Impact ◽  
Export Performance ◽  
Positive Association ◽  
Business Model Innovation ◽  
Growth Strategies ◽  
Content Type ◽  
Different Types

Purpose The purpose of this paper is to investigate the antecedent and outcomes of different types of innovation as complementary growth strategies, which may enable exporting small- to medium-sized enterprises (SMEs) to achieve success in export markets. Design/methodology/approach This study is based upon a quantitative survey on Norwegian exporting SMEs. A total of 380 questionnaires were received representing 16.8 per cent response rate. A structural equation modelling analysis is carried out on the sample. Findings The study finds positive and significant associations between the firm’s growth ambition and the pursuance of product and business model innovations. Moreover, the firm’s export degree and scope has a significant and positive association with its product innovation strategy, but the association with its business model innovation is significantly negative. Research limitations/implications The study’s findings indicate that future studies should incorporate different types of innovation strategies since their associations with export performance differ substantially. Treating innovation as a general construct appears to be too simplistic. Practical implications The study’s results indicate that focus on product innovation enhances the export performance of SMEs, but that focus on business model innovation has a negative impact. The latter may be too costly and distract focus from the firm’s core competences, whereas product innovation can be assumed to provide further competitive strength. Originality/value By taking a holistic approach towards innovation, this study addresses a gap in the literature on innovation and exporting in SMEs in order to investigate the association between different types of innovation-based growth strategies and the firms’ export prosperity.

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