Why do some SMEs explore more while others exploit further? Evidence from Chinese SMEs

2019 ◽  
Vol 13 (2) ◽  
pp. 379-396
Author(s):  
Hong Hu ◽  
Qiang Wang ◽  
Jixiang Chen

Purpose Why do some small and medium-sized enterprises (SMEs) explore more while others exploit further? What are the driving forces of their exploratory and exploitative innovation? These are intriguing questions worthy of in-depth research. The purpose of this paper is to crack these problems from both objective (i.e. organizational slack) and subjective (i.e. market orientation) perspectives. Specifically, the paper examines the effects of unabsorbed and absorbed slack on exploratory and exploitative innovation and the mediating roles played by proactive and responsive market orientation. Design/methodology/approach The authors collected data from 214 SMEs in several industries of China. These businesses were located in the city of Shanghai and the provinces of Jiangsu and Zhejiang in the southeastern part of China. The survey method was used to test the hypotheses. Findings Results reveal that unabsorbed and absorbed slack could affect exploratory and exploitative innovation. Proactive and responsive market orientation are related to unabsorbed and absorbed slack, exploratory and exploitative innovation, and they play the roles of mediators in two sets of the relationships. Research limitations/implications This research presents several profound insights for venture capitalists regarding to making investment decisions and for the entrepreneurs of SMEs in terms of how much resource slack they should gain and retain to reach intended level of exploratory and exploitative innovation. Some of the limitations of this study relate to the single respondent in each firm, lack of examination on relevant contextual factors and potential moderators. Originality/value This study addresses the gaps in the literature by exploring the mechanisms underlying the effects of different kinds of organizational slack on the two elements of ambidextrous innovation in non-large-scale businesses in a non-Western cultural setting.

2015 ◽  
Vol 27 (2) ◽  
pp. 267-293 ◽  
Author(s):  
Jing Zhang ◽  
Yanxin Jiang ◽  
Rizwan Shabbir ◽  
Yanling Duan

Purpose – Literature has not paid enough attention to the antecedents of market orientation in the context of transitional economy and many authors focus on internal antecedent factors which could be controlled by the organizations. To address the research gaps, the purpose of this paper is to examine the impact of institutional pressures upon market orientation implementation in mainland China. Design/methodology/approach – Based on multiple case studies of four large B2B manufacturing firms, this paper presents a conceptual framework incorporating three kinds of institutional antecedents of market orientation. Then the developed framework is empirically tested and the impacts of antecedent factors are compared by a fully structured questionnaire survey of 235 Chinese manufacturing firms. Findings – The research findings indicate that during the market-oriented organizational change, normative and mimetic institutional pressures are important driving forces. In addition, the significant institutional antecedent factors are pressures arising from strategic partnership, system certification requirements, industry benchmarking, management consultation and intensive competition. Originality/value – This research is first of its kind as it probes into institutional antecedents of market orientation among Chinese firms by combining cross-case study and large-scale survey. It contributes greatly to the literature of market orientation and institutional theory, and also provides relevant managerial implications for firms as to how to improve market-orientation degree.


2017 ◽  
Vol 11 (4) ◽  
pp. 617-636 ◽  
Author(s):  
Long Zhang ◽  
Ali Kara ◽  
John E. Spillan ◽  
Alma Mintu-Wimsatt

Purpose The role of marketing as a business function is rapidly changing in China. Consequently, their views on marketing orientation – whether it is accepted, rejected, modified or reframed – have been seriously impacted. This paper aims to report on the results of a survey among Chinese small- and medium-sized enterprise (SME) managers and their perceptions of the market-orientation philosophy. In particular, emphasis was placed on three dimensions of market orientation: intelligence generation, intelligence dissemination and responsiveness. The effect of market orientation on business performance was also examined. Design/methodology/approach The authors collected data from 214 managers from SMEs. These businesses were located in the cities of Beijing, Shanghai and Shenzhen. The commonly used market orientation (MARKOR) measure was used to test the hypotheses. Findings Consistent with the extant literature, the findings provided empirical support for the three dimensions of market orientation among Chinese SME. The authors also found that a positive relationship existed between Chinese SME market orientation and firm performance. Research limitations/implications This study provides major insights into the market orientation measurement and practices of SME in China. From a measurement perspective, the empirical support for MARKOR across a non-Western context is noteworthy. From a practitioner perspective, the implications relating to understanding Chinese SME and how these companies can best market their products and services to their respective markets are critical. Some of the limitations of our study relates to the sample size, convenience sampling and geographic concentration of the respondents. Originality/value This study addresses the gaps in the literature by exploring market orientation in non-large scale businesses as well as the adaptation of the concept in a non-Western cultural setting. The findings extend the conceptualization and application of market orientation to Chinese SME.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Bambang Tjahjadi ◽  
Noorlailie Soewarno ◽  
Viviani Nadyaningrum ◽  
Aisyah Aminy

PurposeThis study aims to investigate whether human capital readiness affects business performance, and if so, whether the effect is mediated by global market orientation.Design/methodology/approachThis is a quantitative study employing partial least square structural equation modeling (PLS-SEM) to test the hypotheses. Using a survey method, the data were collected using both online and offline questionnaires. As many as 433 owners/managers of micro-, small- and-medium-sized enterprises (MSMEs) in the East Java Province of Indonesia participated in this study. A mediating research framework was developed to investigate the mediating role of global marketing orientation on the human capital readiness–business performance relationship.FindingsThe results show that human capital readiness has a direct and positive effect on business performance. Further analysis reveals that global market orientation partially mediates the effect of human capital readiness on business performance.Research limitations/implicationsFirst, this study focuses on the MSMEs in the East Java Province of Indonesia. Caution needs to be taken if the results are generalized to other regions. Second, it employed a survey method that is commonly criticized as having the potential to be biased.Practical implicationsThe findings provide a more comprehensive understanding of owners/managers of human capital readiness and how it should be improved to better execute global market orientation strategies to achieve the desired business performance.Social implicationsBecause MSMEs play a crucial role in society, this study provides a general model to improve the welfare of society by enhancing the MSMEs' business performance. By understanding its antecedents, namely, human capital readiness and the global market orientation, improvements can be made.Originality/valueHuman capital readiness has been rarely examined in previous studies. This is the only study applying the constructs of human capital readiness, global market orientation and business performance to the Indonesian MSME research setting.


2016 ◽  
Vol 7 (2) ◽  
pp. 84-99 ◽  
Author(s):  
Emma Hoksbergen ◽  
Andrea Insch

Purpose The purpose of this paper is to address the need to understand how younger music festival-goers use and engage with a music festival’s Facebook page, and how they perceive this social networking service (SNS) as a potential on-line platform for value co-creation. Design/methodology/approach Face-to-face in-depth interviews were conducted with 16 young adults who attended an annual New Year’s Eve music festival, Rhythm and Vines, in Gisborne, New Zealand. Findings Analysis of the interview data revealed that the majority of participants did not actively engage with this platform and could be categorised as passive viewers or information-seekers. In addition, participants perceived five types of value from using this SNS: functional, social, emotional, interactive and aesthetic value. Even though participants were not segmented due to the small sample size, patterns in their levels of engagement with Facebook, attendance status, reasons for attending the festival and the combinations of forms of value that they perceived were identified. Research limitations/implications Future research should use a large-scale survey method to obtain a representative sample that is generalisable to a specific population of music festival-goers. Practical implications Dominance of features on Facebook providing festival-goers with functional value suggests they prefer a passive or co-optation approach to value co-creation in this context. Due to the limited extent of participants actively co-creating value on this platform, alternative means of encouraging interaction to co-create value with festival-goers should be investigated. Originality/value This study demonstrates that this SNS provides this group of young adults with a means to connect their real-time festival experience, with their on-line Facebook social network during the year.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Viachaslau Filimonau ◽  
Ayşen Coşkun ◽  
Belen Derqui ◽  
Jorge Matute

Purpose Although the challenge of food waste (FW) in the foodservice sector is significant, restaurant managers do not always engage in its reduction. The psychological reasons for this disengagement remain insufficiently understood. This study aims to explore the antecedents of behavioural intention of restaurateurs (not) to reduce FW. The influence of three factors is tested, namely, market orientation; environmental apathy alongside selected neutralization techniques, namely, appeal to higher loyalties; denial of injury and denial of responsibility. Design/methodology/approach The study uses the method of a large-scale managerial survey (n = 292) administered in the commercial foodservice sector of Spain. The data are analysed via structural equation modelling with partial least squares. Findings The study finds that market orientation affects managerial intention to reduce FW but not their attitude, while environmental apathy influences managerial attitudes but not their behavioural intention. The study confirms the negative effect of such neutralizers as the appeal to higher loyalties and the denial of injury on suppressing managerial intention to reduce FW. Contrary to initial anticipations, another established neutralizer, the denial of responsibility, exerts no significant effect. Practical implications The study elaborates on the interventions necessitated to neutralize the effect of the neutralizers on managerial (un)willingness to reduce FW in the commercial foodservice sector. Originality/value This is the first known attempt to understand the drivers of managerial engagement in FW reduction in the commercial foodservice sector through the prism of environmental apathy, market orientation and neutralization theory.


2014 ◽  
Vol 25 (6) ◽  
pp. 848-872 ◽  
Author(s):  
Sami Kara ◽  
Suphunnika Ibbotson ◽  
Berman Kayis

Purpose – Improved environmental performance of products and services have lately become one of the main strategic and operational goals of manufacturers. This is due to influences from various stakeholders including government, consumers, societies and the business partners. Evidently, different manufacturers differently implement their environmental practices for sustainable product development depending on various driving factors such as customer awareness, legislation, economic benefits and competitive strategies, etc. In theory, manufacturers can efficiently undertake sustainable product development by implementing life cycle thinking into their system. This way, they can monitor the environment hot spots throughout a product life cycle and be able to minimise the environmental impact effectively. Therefore, several researchers have focused on developing tools and strategies to support the manufacturers in implementing sustainable manufacturing and product development studies. However, in reality, each manufacturer may operate their manufacturing system differently to accommodate different demands and constraints induced by firm characteristics and its regional location. Their attempts to implement the sustainable tools and strategies to their companies would also be different. Thus far, a number of studies have studied the implementation for a specific company. No studies have examined the relationship between their decisions and implementation for different characteristics of firms and different manufacturing locations. Therefore, the purpose of this paper is to comprehensively investigate the practices of manufacturers towards sustainable product development. Design/methodology/approach – A detailed statistical analysis was conducted on the survey data gathered from 330 manufacturing organisations in 13 countries. The research questions mainly cover implementation approaches, decision tools and techniques used and main driving forces at the strategic and operational levels concerning environmental practices in sustainable product development. This is to bridge the gaps between the research outputs and implementations in practice for the developed sustainable strategies and tools. Results highlighted interesting relationships of the implementations across different geographical regions (locations) as well as types and sizes of manufacturers. They can be used to shed some light for future research direction, the dominant driving forces of consumers and regulations importance towards the manufacturer practices to improve not only the environmental performance but also their social responsibility. In total, 12 null hypotheses were formulated to test the relationships as well as the correlations between the manufacturing characteristics and the research questions which cover several driving forces in implementing the environmental strategies. Findings – The results of this large-scale global research highlighted that different geographical/manufacturing regions are driven mainly by legislation, competition and consumer pressures whilst manufacturers of different sizes utilise various decision tools. Design tools such as LCA, DFE and ECQFD methods are likely to be utilised in the medium-and high-complexity product development by OEM and ETM manufacturers. Environmental responsibility plays an important role and also enhanced by other driving forces such as the economic benefits, the long-term survival in the market and the company image. Research limitations/implications – Future work may include some or all of the following; such as respondents of this survey may be re-contacted and comparative data can be gathered from these manufacturers to capture the changes over the years. Further investigation of the sustainable supply chain management approaches, influences of dynamic driving forces and the environmental practices towards cleaner production practices such as improving energy efficiency, minimising waste, recycling scraps and reusing product as well as the product recovery practices for used products would be beneficial to gather and evaluate. This would support to address the current trends and emerging practices. Practical implications – Results highlighted interesting relationships and thus provide some answers on strategies adopted by many manufacturers for the sustainability approaches and implementations across different geographical regions (locations) as well as types and sizes of manufacturers. The wave of change towards sustainability is clearly on enterprises, industries, communities and governments for thinking about solutions to increase the awareness in environmental sustainability thus reduce carbon footprint. In some areas there is clear progress but for many, this process is just beginning. Social implications – There is an overwhelming amount of information, methods and opinions, and proliferation of initiatives. It is in this climate that not only manufacturers but society must provide a practical and effective way to develop and disseminate the skills and knowledge required to fuel an environmentally sustainable economy. To achieve this, results of global surveys like this paper may support manufacturers who need to work with communities and stay well connected to their stakeholders. This may lead to developing training packages that accurately reflect industry needs and provide leadership in communities and workforce development. Originality/value – There is generally an understanding of the sustainable product development and the use and role of tools and techniques to improve environmental performance of manufacturers at micro-level (within companies based on selected product, process, environmental tools and manufacturing characteristics). Whereas, a large-scale research like this paper, to present the status of sustainable product and process development approaches used by manufacturers located around the globe, of different sizes, types within existing operational and corporate strategies and eco-design initiatives have not been detailed.


2019 ◽  
Vol 31 (3) ◽  
pp. 1066-1085 ◽  
Author(s):  
Karen L. Xie ◽  
Linchi Kwok ◽  
Jiang Wu

Purpose The purpose of this study is to examine the effects of host attributes and travelers’ frequency of past stays and their interaction on the likelihood of repeat purchase of home-sharing services at both the host and listing levels. Design/methodology/approach A combination of econometrics analyses using a large-scale, granular online observational data set collected from a home-sharing platform was performed. Findings Travelers exhibit salient loyalty to home-sharing services. At the host level, host attributes including acceptance rate and listing capacity positively affect travelers’ likelihood of repeat purchase; such effects diminish as travelers’ frequency of past stays with a host/listing increases. At the listing level, confirmation efficiency and acceptance rate are critical, and travelers’ frequency of past stays matters. Research limitations/implications Responding to the call for more research on customer loyalty of sharing economy, this study instantiated on a home-sharing website in China and adds a unique perspective to the research domain, but its findings may not be generalized in other settings. Practical implications This study identifies the factors affecting customers’ repeat purchase behaviors at both the host and listing levels, allowing the hosts, webmasters of home-sharing websites and even hoteliers to advance specific tactics to promote repeat purchase among travelers. Originality/value Loyalty was measured with real-time internet-enabled observational data about travelers’ actual repeat purchase behavior on a home-sharing website, rather than assessing consumers’ behavioral intentions through the conventional survey method. Two specific levels of customer loyalty were analyzed, including the ones towards a service provider (host) and a service product (listing).


2020 ◽  
Vol 49 (3) ◽  
pp. 197-205
Author(s):  
Yongfeng Liu ◽  
Yi Liu ◽  
Duolong Di

Purpose The purpose of this study is to focus on the preparation of macroporous adsorption resins (MARs) functionalized with carbazole and N-methylimidazole, and adsorption behaviors of (–)-epigallocatechin gallate (EGCG) and caffeine (CAF) on the functionalized MARs. Design/methodology/approach Based on the Friedel–Crafts and amination reactions, novel MARs functionalized with carbazole and N-methylimidazole were synthesized and characterized by the BET method. Accordingly, adsorption behaviors and structure-activity relationships for EGCG and CAF were studied in detail. Findings The results showed that pseudosecond-order kinetic model was provided with a better correlation for the adsorption of EGCG and CAF onto L-1 and L-2, and pseudofirst-order kinetic model was the most suitable model to illustrate the adsorption process for EGCG and CAF on L-3. The result indicated that Langmuir, Freundlich, Temkin–Pyzhev and Dubinin–Radushkevich isotherms all could better illustrate the adsorption processes of EGCG and CAF on L-1, L-2 and L-3. Practical implications This study provides theoretical guidance and technical support for the efficient separation and purification of EGCG and CAF from waste tea leaves by MARs on a large scale. In addition, the results showed that this novel MARs would provide useful help and be used in large-scale production of active ingredients from natural products in the industry and other fields. Originality/value Adsorption kinetic models such as pseudofirst-order, pseudosecond-order and intra-particle diffusion kinetic models, and adsorption isotherm models such as Langmuir, Freundlich, Temkin–Pyzhev and Dubinin–Radushkevich isotherms models were adopted to illustrate the adsorption mechanisms of EGCG and CAF. The main driving forces for MARs with no functional groups were pore sieving effects, p–p conjugation effects and hydrophobic interactions, and the other significant driving forces for MARs functionalized with carbazole and N-methylimidazole were electrostatic interactions, ion-dipole and hydrogen bonding interactions. This study might provide scientific references and useful help for large-scale separating and enriching active ingredients in natural products using the technology of MARs with special functional groups.


2017 ◽  
Vol 21 (3) ◽  
pp. 656-674 ◽  
Author(s):  
Yueqi Wang ◽  
Bin Guo ◽  
Yanjie Yin

Purpose The purpose of this study is to explore organizational factors that act as antecedents of open innovation search. The authors aim to empirically examine whether the extent to which the organizational slack is absorbed determines its influence on firms’ openness in innovation search. In addition, the authors also examine the moderating effect of absorptive capacity on the relationship between slack and open innovation search. Design/methodology/approach This study adopted secondary data from multiple sources (NBER, Compustat and US census) and then constructed a ten-year balanced panel dataset of 298 manufacturers. The generalized least square method was used to explore the determinants of open innovation search among manufacturing firms. Findings The results of this study reveal that the absorption level of organizational slack indeed determines the openness in innovation search. Specifically, absorbed slack negatively affects a firm’s openness in innovation search, whereas unabsorbed slack promotes open innovation search. Additionally, the relationship between absorbed slack and open innovation search will be less negative with the increase of absorptive capacity. Originality/value Different from most previous studies that have examined the performance effect of open search among high-tech and large enterprises, this study focuses on the antecedents of open search strategy in both high- and low-tech, large and small firms. The findings reveal that different forms of organizational slack divergently influence a firm’s open search strategy, contributing to the understanding of the relationship between organizational slack and knowledge search behavior in a broader context, as well as the understanding of the moderating effect of absorptive capacity.


Author(s):  
Olivia F. Lee ◽  
Matthew L. Meuter

PurposeThe purpose of this paper is to explore the role of technology through the study of electronic health record system in delivering patient‐centered services. The goal is to identify the antecedents and consequences of adopting a technology orientation (TECHOR) approach in a large‐scale hospital and healthcare system.Design/methodology/approachA grounded approach is used whereby extensive literature review and field studies were conducted over a two‐year period. The three major field research activities included observation on hospital premises, semi‐structured interviews, and focus group discussions with hospital employees from a large‐scale hospital and healthcare system.FindingsThe findings reveal that TECHOR is institutionalized as a result of its demonstrated effectiveness in delivering patient‐centered services with improved cost effectiveness, efficiency, safety, and quality control.Research limitations/implicationsEmpirical testing of the presented framework is an important future research direction to validate the current qualitative investigation.Practical implicationsBy understanding the driving forces and consequences of TECHOR, healthcare managers can better understand and manage their technology initiatives. Such effort will help healthcare organizations to create new services in meeting evolving demands and establishing long‐lasting competitive advantage.Originality/valueThis paper fulfills a research gap by presenting a firm‐level construct crucial to successful planning and implementation of technology‐enabled health services.


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