Firm’s strategic orientation, market context, and performance

2016 ◽  
Vol 28 (4) ◽  
pp. 378-404 ◽  
Author(s):  
Anders Pehrsson
Keyword(s):  
Entrepreneurial Orientation ◽  
Strategic Orientation ◽  
International Strategy ◽  
Local Market ◽  
Foreign Markets ◽  
Content Type ◽  
And Performance ◽  
Meta Analyses ◽  
The Impact ◽  
Practical Implications

Purpose The purpose of this paper is to extend the understanding of relationships between entrepreneurial orientation (EO) and performance, and between market orientation (MO) and performance in different market contexts that set boundaries for performance. Design/methodology/approach The paper presents a review of studies containing empirical research incorporating EO, MO, market context and firm performance. Findings Patterns regarding content of previous studies of the issue are outlined, and crucial research gaps are identified. These concern a lack of focus on relationships between EO/MO and performance of foreign units. Research limitations/implications First, further studies on international strategy need to develop EO/MO components that are consistent with foreign units’ value-adding roles. Second, the impact of dynamism originating from competitors in foreign markets needs attention. Third, direct impacts of market dynamism on performance of foreign units, and moderating roles of EO/MO need to be studied. Practical implications International competitiveness of the firm as a whole would benefit from higher performance of foreign units that may be achieved through aligning EO/MO with local market contexts. Originality/value Meta-analyses show that it is difficult to establish universal direct relationship between EO/MO and performance and that the importance of market context is underestimated. The paper provides opportunities for further studies that may clarify underlying contingency mechanisms.

Market orientation and women-owned SMEs performance

2020 ◽  
Vol 9 (2) ◽  
pp. 215-234 ◽  
Author(s):  
Muhammad Amir Rashid ◽  
Masood Nawaz Kalyar ◽  
Imran Shafique
Keyword(s):  
Market Orientation ◽  
Entrepreneurial Orientation ◽  
Design Methodology ◽  
Strategic Decision ◽  
Hierarchical Regression ◽  
Full Potential ◽  
Survey Questionnaire ◽  
Content Type ◽  
And Performance ◽  
Practical Implications

PurposeThis research aims to investigate the contingent effect of entrepreneurial orientation (EO) and strategic decision responsiveness (SDR) on the link of market orientation (MO) and performance of women-owned small and medium-sized enterprises (WSMEs).Design/methodology/approachData were collected from 909 WSMEs of Punjab province Pakistan through survey questionnaire. Hierarchical regression is employed to perform the analysis.FindingsResults reveal that although higher-level dimensions of MO directly affect the WSMEs performance, however this linkage becomes stronger under SDR and higher-level dimensions of EO.Practical implicationsManagers should emphasis on the demonstration of EO's dimensions and SDR to utilize the full potential of MO to promote WSMEs performance.Originality/valueTo study the contingent effect of SDR and EO's dimensions in the MO–WSMEs performance nexus is the novelty of this study.

Navigating the entrepreneurial quest for high export performance

2020 ◽  
Vol 36 (5) ◽  
pp. 13-15
Keyword(s):  
Risk Taking ◽  
Entrepreneurial Orientation ◽  
Export Performance ◽  
Foreign Market ◽  
Strategic Choices ◽  
Content Type ◽  
Probability Of Success ◽  
Pertinent Information ◽  
The Impact ◽  
Practical Implications

Purpose 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 This research paper concentrates on the impact of entrepreneurial orientation (EO) on strategic choices when entering a foreign market. On balance the results reveal that combining all three EO trait dimensions – innovativeness, risk taking, and proactiveness – creates the best probability of success when entering a product into a new foreign market by deploying either an explorative or an exploitative product marketing strategy. Although a riskier explorative strategy is the most promising option for building longer-term competitive advantage, blending this with elements of a more conservative but growth-lacking exploitative strategy can yield synergistic benefits. Originality/value The briefing saves busy executives, strategists 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.

The role of internationalization in entrepreneurial orientation-performance link: empirical study of SMEs in a developing nation perspective

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Zaynab Dadzie ◽  
Ahmed Agyapong ◽  
Abdulai Suglo
Keyword(s):  
Firm Performance ◽  
Empirical Study ◽  
Entrepreneurial Orientation ◽  
Developing Nation ◽  
Content Type ◽  
Mediating Role ◽  
And Performance ◽  
The Impact ◽  
The Relationship

Purpose This study aims to examine the mediating role of internationalization in the relationship between the dimensions of entrepreneurial orientation (EO) and performance, empirical study of small and medium scale enterprises (SMEs) in a developing nation. Design/methodology/approach The study uses a sample of 158 exporting SMEs based in the sub-Saharan developing economy, Ghana. The use of hierarchical regression (ordinary least square analysis) was used by the researcher to assess the suggested model of the study. Findings Largely supporting the conjectural predictions, the study indicates that EO positively and significantly influences performance; internationalization fully mediates the relationship between innovativeness and performance of export firms; internationalization fully mediates the relationship between risk-taking and performance of export firms; and finally, internationalization partially mediates the relationship between competitive aggressiveness and performance of export firms. Managers are, therefore, encouraged to strategically develop both their EO and internationalization, as the study has confirmed that EO has both a direct and indirect relationship with performance. Originality/value This study integrated a resource-based view of the firm and international entrepreneurship theory as a theoretical foundation. Theoretically, internationalization’s mediating role reveals the relevance of this construct in the linkage between entrepreneurial orientation and firm performance. Furthermore, the study extends the entrepreneurial orientation concept to the international business literature by estimating and testing models of the mediating link between entrepreneurial orientation and performance. Moreover, the study seeks to broaden the knowledge of entrepreneurial orientation and its relationship with performance in small and medium businesses. The study further extends the limited studies on performance, driven by entrepreneurial orientation and internationalization in a developing nation (Ghanaian) context. This paper besides seeks to highlight the impact of entrepreneurial orientation on performance when channeled through internationalization. The study also reveals the dimensions of entrepreneurial orientation to be important antecedents of internationalization, in attempts at unearthing the critical predictors of firm performance, especially those of international characteristics.

Innovation types and performance in growing UK SMEs

2007 ◽  
Vol 27 (7) ◽  
pp. 735-753 ◽  
Author(s):  
Adegoke Oke ◽  
Gerard Burke ◽  
Andrew Myers
Keyword(s):  
Design Methodology ◽  
Analytical Techniques ◽  
Web Based ◽  
Content Type ◽  
Radical Innovations ◽  
And Performance ◽  
Telecommunications Industries ◽  
The Impact ◽  
Practical Implications ◽  
Survey Questionnaires

PurposeThe objective of this study is to explore the types of innovation that are predominant in UK SMEs, whether they are predominantly radical or incremental, and to investigate the impact of these innovations on performance.Design/methodology/approachA web‐based survey instrument was used to administer survey questionnaires to a sample of UK SMEs in manufacturing, engineering, electronics, information technology and telecommunications industries. The response rate was 13.8 percent. Relevant statistical analytical techniques including regression for analysis was then used.FindingsIt is found that the SMEs tend to focus more on incremental than radical innovations and that this focus is related to growth in sales turnover.Practical implicationsIt is not such a bad idea for SMEs, particularly those operating in high technological industries, to focus on incremental innovations as these are actually related positively to sales turnover growth.Originality/valueAn investigation of the types of innovation that SMEs pursue is pioneering in the field as previous studies of this type have been based on large firms. The contention that the raison d'etre of SMEs is to develop radical innovations is not supported empirically, at least for the sample of SMEs. In addition, it is found that the age of an SME is not related to its focus on either incremental or radical innovation. These are the contributions of this paper.

Regulatory non-compliance and performance of deposit money banks in Nigeria

2018 ◽  
Vol 26 (3) ◽  
pp. 425-441 ◽  
Author(s):  
Ismaila Yusuf ◽  
Damola Ekundayo
Keyword(s):  
Emerging Economy ◽  
Bottom Line ◽  
Content Type ◽  
Correlational Research ◽  
And Performance ◽  
Using Data ◽  
The Cost ◽  
The Impact ◽  
Nigerian Banking ◽  
Practical Implications

Purpose The purpose of this study is to examine regulatory sanctions from an emerging economy perspective and analyzing the impact of regulators imposed monetary sanctions on banks’ performance. Design/methodology/approach The study adopted correlational research design to examine the effect of regulatory penalties on the performance of deposit money banks in Nigeria. This study used panel data from a sample of 15 deposit money banks in Nigeria for the period of 2006-2015. Multiple regression analysis was carried out. Findings Results showed that penalties imposed by regulators in the Nigerian banking industry have no significant impact on the bottom line of the defaulters. Penalties imposed on foreign exchange and international trade related infraction showed that the cost of penalties is below the benefits enjoyed from such infractions. Practical implications The insignificant impact of penalties on performance implies that deposit money banks have considered penalties imposed by regulators as operational expenses and transferred such to customers. Originality/value The study differs from other studies that examined regulatory penalties on performance by focusing on financial performance and using data from an emerging economy perceived to have weak regulatory environment.

Understanding franchisee performance

2018 ◽  
Vol 47 (7) ◽  
pp. 733-751 ◽  
Author(s):  
Enrico Colla ◽  
Maria Eugenia Ruiz-Molina ◽  
Catherine Chastenet De Gery ◽  
Maryline Schultz ◽  
Martine Deparis ◽  
...  
Keyword(s):  
Affective Commitment ◽  
Structural Equations ◽  
Least Squares Regression ◽  
Content Type ◽  
Bidirectional Communication ◽  
And Performance ◽  
Structural Equations Model ◽  
The Impact ◽  
Practical Implications

Purpose The purpose of this paper is to investigate the impact of participative franchising on performance from the franchisee perspective. In particular, the paper analyses the impact of the franchisee autonomy – in human resource management and marketing decisions – affective commitment to the network and network innovativeness on the franchisee relative performance. Design/methodology/approach A survey answered by 226 franchisees in France allowed to estimate a structural equations model through partial least squares regression analysis to test the hypothesised relations between autonomy, affective commitment, innovativeness and performance. Findings According to the authors’ findings, franchisee’s autonomy in commercial policies, mediated by to franchisor’s ability to innovate and acknowledge innovations stemming from the franchisees, and the affective commitment to the network, emerge as strong determinants of the franchisee’s performance. Research limitations/implications The results confirm the conclusions of other research, but extend and integrate them, providing evidence that the role of participative franchising should not be neglected. Practical implications The results obtained provide evidence about the importance of bidirectional communication instruments in the relations between franchisor and franchisee, and participation tools for the identification, recognition and support to the innovative successful practices developed by franchisees to be quickly implemented by other franchisees in the network. Originality/value This paper looks at franchisee autonomy, affective commitment and innovativeness as potential determinants of franchisee’s performance, being the latter an underexplored topic.

Creating the asset of foreignness: Schrödinger’s cat and lessons from the Nissan revival

2017 ◽  
Vol 24 (1) ◽  
pp. 55-77 ◽  
Author(s):  
Jusuke J.J. Ikegami ◽  
Martha Maznevski ◽  
Masataka Ota
Keyword(s):  
Single Case ◽  
Senior Leaders ◽  
Content Type ◽  
Cultural Research ◽  
Cross Cultural Research ◽  
Patterns Of Behavior ◽  
And Performance ◽  
The Impact ◽  
Practical Implications

Purpose This paper challenges the assumption in cross-cultural research of liability of foreignness (LOF). The literature review demonstrates that LOF comes from pressures for isomorphism, while asset of foreignness (AOF) can derive from the active process of breaking norms. The purpose of this paper is to explore how leaders can initiate and sustain AOF. Design/methodology/approach The paper analyzes the case of the Nissan revival led by Carlos Ghosn and the impact in the years after. The analysis is based on the authors’ interviews and discussions with Ghosn and senior leaders at Nissan and Renault, complemented with published interviews and assessments. Findings Analysis confirmed the potential for AOF, and further uncovered four patterns of behavior that created AOF virtuous cycles among Nissan leaders: initiating trust, shaping identity, anchoring and transcending common language, and acting positively on ignorance. The virtuous cycles were sustainable and transformed into new global strategic perspectives. Research limitations/implications The paper proposes a research model identifying moderators between foreignness and performance. Generalizability is limited by the focus on a single case study. Practical implications The four sets of behaviors can serve as guides to action for leaders when working in foreign contexts. Originality/value This research goes beneath the surface of a famous example to analyze leadership dynamics over time, and provides insight on positive aspects of foreignness.

Academic research meets practice: why controversial results are not controversial

2018 ◽  
Vol 16 (1) ◽  
pp. 66-74 ◽  
Author(s):  
Patrick M. Wright ◽  
Anthony J. Nyberg
Keyword(s):  
Performance Measures ◽  
Academic Research ◽  
Chief Executive ◽  
Future Research ◽  
Content Type ◽  
Ceo Pay ◽  
And Performance ◽  
Hiring And Firing ◽  
The Impact ◽  
Practical Implications

Purpose This paper aims to explore some of the practical challenges boards face in setting chief executive officer (CEO) pay to show why the failure to see considerable overlap between pay and performance may not be due to poor governance. Design/methodology/approach This paper critically explores the different types of pay reported in public sources (actual vs realized) and the types of performance measures used in CEO pay research. This paper then conceptually reviews the broader governance responsibility of boards, particularly the hiring and firing of CEOs and the impact these decisions have on CEO pay. Findings The authors suggest that much of the lack of overlap between pay and performance may be because of misaligned timing of the pay and performance measures, differences between internally promoted and externally hired CEOs and severance packages of fired CEOs. They conclude that the lack of overlap may not signal failure on the part of boards, but rather may reflect the risk and uncertainty those boards face in hiring and firing of CEOs. Research limitations/implications The analysis shows how using publicly available sources of pay and performance data ignores the practical challenges that boards face in setting pay, and suggests greater care be given to future research purporting to show that boards are failing in their governance responsibilities. Practical implications CEO pay may not be as misaligned with performance as many researchers conclude, but may be due to the risks and uncertainty inherent in governance. Social implications The distributive justice critique of CEO pay may not be valid. Originality/value As opposed to simply mining public databases, this paper more accurately describes some of the variables that impact how boards set CEO pay.

What is the value of entrepreneurial orientation on the network and performance? An examination in trade fairs context

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Pedro Silva ◽  
Vera Teixeira Teixeira Vale ◽  
Victor Ferreira Moutinho
Keyword(s):  
Entrepreneurial Orientation ◽  
Sales Performance ◽  
Structural Equations ◽  
Trade Fair ◽  
Content Type ◽  
Level Of Satisfaction ◽  
Modeling Techniques ◽  
And Performance ◽  
Network Capability ◽  
Practical Implications

Purpose The purpose of this paper is to examine the influence of entrepreneurial orientation on the network and exhibitor’s performance. The entrepreneurial orientation is seen as a highly competitive factor for the company, which can foster its trade fair business. Design/methodology/approach A survey-based quantitative approach was adopted, including a questionnaire (n = 362) applied to companies participating in trade fairs. To arrive at results, the study developed structural equations modeling techniques, using SPSS 24 and AMOS 20 software. Findings The study demonstrates positive impacts of entrepreneurial orientation on network capability and consequent exhibitor’s non-sales performance and exhibitor’s sales performance. A conceptual model is presented. Research limitations/implications The study was carried out mainly on Portuguese companies, restricting its generalization. In addition, the exhibitor’s performance was measured based on the exhibitors’ level of satisfaction and not on real sales results. Practical implications The study offers a process which the results highlight such as innovativeness, proactivity, risk-taking, competitiveness and autonomy (dimensions of entrepreneurial orientation) as a mix of important ingredients for the exhibitor’s networking. The networking promotes intangible results (non-sales performance) that can generate sales (sales performance). Originality/value The study is the first research to apply entrepreneurial orientation in the trade fair context and it also presents a relationship between non-sales performance and sales performance.

The relationship between budgetary evaluation, firm size and performance

2015 ◽  
Vol 34 (8) ◽  
pp. 973-986 ◽  
Author(s):  
Azzouz Elhamma
Keyword(s):  
Emerging Economies ◽  
Firm Size ◽  
Evaluation System ◽  
Design Methodology ◽  
Management Control ◽  
Content Type ◽  
And Performance ◽  
The Impact ◽  
The Relationship ◽  
Practical Implications

Purpose – The purpose of this paper is to present the main results of the first empirical study done in Morocco and attempts to highlight the impact of the firm size on the budgetary evaluation and its performance according to the firm size. Design/methodology/approach – Data were collected using a questionnaire sent to the Moroccan firms. A total of 62 questionnaires were correctly returned. The response rate was 15 per cent. Findings – In this research, we identified three principal styles of budgetary evaluation: “strict budgetary evaluation” adopted by 21 per cent of the sample; “moderate budgetary evaluation” adopted by 27.4 per cent of the surveyed enterprises; and “lower budgetary evaluation” adopted by 51.6 per cent of the sample. The first style is adopted especially by large firms. The firm’s performance is significantly and positively correlated with the budgetary evaluation in large enterprises. This correlation is not significant in SMEs. Practical implications – The findings of this research can help managers of companies in emerging economies in the choice of a better budgetary evaluation system. Originality/value – The outcomes of the study are relevant both to the literature on budgetary evaluation in particular and on management control in general, since they determine that the correct fit between budgetary evaluation and firm size causes a positive and significant change in the firm’s performance.

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