Linking national business system and firm level innovation

2019 ◽  
Vol 23 (5) ◽  
pp. 765-788 ◽  
Author(s):  
Bashir Ahmad ◽  
Mehmet Erçek
Keyword(s):  
System Level ◽  
Equation Modeling ◽  
Sense Making ◽  
Exploration And Exploitation ◽  
Firm Level ◽  
Content Type ◽  
Business System ◽  
Knowledge Repositories ◽  
Knowledge Exploration ◽  
National Business

Purpose The purpose of this paper is to explain the link between national business system (NBS) and innovation decisions at the firm level by offering sequentially ordered sense-making mechanisms that enable the formation of firm-specific knowledge repositories and knowledge-processing capabilities. Design/methodology/approach This study engages in an extensive scale development effort to collect representative data about the NBS in the Pakistani setting, complemented by relevant validity and reliability tests. The overall theoretical model was tested on 214 firms by means of a structural equation modeling approach, using partial least-squares algorithms. Findings The results statistically supported the role of firm-level knowledge repositories (intellectual capital) and knowledge exploration and exploitation capabilities (absorptive capacity) as sequential mediators in the association of NBS and firm-level innovation. Besides, bridging networks of lateral ties among Pakistani businesses are found to be more effective than bonding networks of vertical ties in encouraging radical innovations. Originality/value This study significantly extends the literature about the NBS approach. It provides specific sense-making mechanisms (i.e. priming, triggering and editing) about how abstract institutional templates constituted at the business system level are translated into firm-level actionable sets by the help of intangible resource repositories and processes that guide knowledge exploration and exploitation.

Complementarity effect of supply chain competencies on innovation capability

2019 ◽  
Vol 25 (6) ◽  
pp. 1251-1272 ◽  
Author(s):  
Ying Liao ◽  
Yulong Li
Keyword(s):  
Supply Chain ◽  
Structural Equation ◽  
Equation Modeling ◽  
Supply Network ◽  
Innovation Capability ◽  
Exploration And Exploitation ◽  
Complementarity Effect ◽  
Content Type ◽  
Essential Components ◽  
Network Flexibility

Purpose From the perspective of the economic theory of complementarity, the purpose of this paper is to examine how internal collaboration and external competencies would provoke and strengthen each other, and subsequently enhance organizational innovation capability. Design/methodology/approach The survey data were collected from 201 manufacturing firms and checked for common method variance, validity and reliability. Structural equation modeling was then used to test the hypothetical complementarity effect. Findings The results suggest that internal collaboration (as a manifestation of exploitative learning) and external competencies, which include supply network flexibility and supplier operational capabilities (as manifestation of exploratory learning), do in fact compensate for each other’s deficiencies. Complementary deployment of internal collaboration and external competencies enhances each other’s contribution to innovation capability. Practically, the study indicates that organizations should consider making concerted efforts to develop internal collaboration, supply network flexibility and supplier operational capability as a bundle. Originality/value Extensive discussions exist in the literature on exploration and exploitation being essential components of innovation and their conflicting impact on innovation efficiency and effectiveness. But how an organization should operationally develop supply chain competencies in order to maximize overall innovation capability still remains largely an unanswered question. The current study advances the research on the inter-relationships between exploration and exploitation by empirically demonstrating the complementary nature of internal collaboration and external competencies in developing sustainable innovation capabilities.

The individual side of ambidexterity

2019 ◽  
Vol 41 (3) ◽  
pp. 592-613 ◽  
Author(s):  
Andrés Salas Vallina ◽  
Maria D. Moreno-Luzon ◽  
Anna Ferrer-Franco
Keyword(s):  
Structural Equation ◽  
Public Hospitals ◽  
Equation Modeling ◽  
Exploration And Exploitation ◽  
Cross Sectional ◽  
Learning Capability ◽  
Content Type ◽  
Individual Level ◽  
The Individual ◽  
The Relationship

PurposeThe purpose of this paper is twofold: first, to examine whether inspirational leadership of heads of specialized medical units is related to individual ambidexterity of their dependent physicians; and second, to study the possible mediating role of organizational learning capability (OLC) in the relationship between inspirational leadership and individual ambidexterity.Design/methodology/approachStructural equation modeling was used on a sample of 194 medical specialists from Spanish public hospitals.FindingsResults show that inspirational leadership is positively related to individual ambidexterity among healthcare physicians. In addition, the results of the study revealed that the relationship between inspirational leadership and individual ambidexterity is mediated by conditions that facilitate learning, namely, OLC.Research limitations/implicationsThis study uses cross-sectional data, which do not guarantee causality relationships among the examined variables.Practical implicationsThe results of this paper suggest first that heads of healthcare units should inspire followers to achieve both exploration and exploitation. Second, it is also necessary to consider that inspirational leaders promote those conditions that facilitate learning, which should be particularly taken into account to enhance both physician’s exploration and exploitation.Originality/valueIn stressing an evident gap in the relationship between leadership and ambidexterity at the individual level, this paper attempts to advance in the leadership literature by revealing how the action or power of moving the intellect or emotions, and enhancing enthusiasm and confidence, empowers physicians to both explore and exploit knowledge. The results also indicate that the inspiration transmitted by the heads of medical services, facilitate physician’s perceived learning conditions which, in turn, fosters their individual ambidexterity.

How perceptions of firm environmental and social values influence frontline employee outcomes

2020 ◽  
Vol 34 (7) ◽  
pp. 999-1011
Author(s):  
Colin B. Gabler ◽  
V. Myles Landers ◽  
Adam Rapp
Keyword(s):  
Natural Environment ◽  
Structural Equation ◽  
Word Of Mouth ◽  
Equation Modeling ◽  
Frontline Employees ◽  
Employee Outcomes ◽  
Firm Level ◽  
Environmental Orientation ◽  
Content Type ◽  
Social Good

Purpose More than ever, consideration of the natural environment and social welfare are values that firms must signal to their stakeholders. One way to do this is by adopting an environmental orientation (EO) and pro-social organizational identity (PSOI). The purpose of this paper is to examine how frontline employees (FLEs) respond to these firm-level values through four outcomes. Design/methodology/approach Polynomial structural equation modeling with response surface analysis was implemented on FLEs survey data to uncover how different levels of EO and PSOI impact sales performance, word-of-mouth, turnover intent and job satisfaction. Findings Both firm-level values have a positive and direct effect on all four outcomes. However, each imposes a boundary condition as well. Specifically, salespeople perform better when their firm has a stronger EO, but they are happier in their work, less likely to quit and more likely to spread positive word-of-mouth when PSOI is stronger. Practical implications The results suggest that perceptions of a firm-level EO or PSOI enhance employee-level outcomes. Signaling to employees that your firm cares about the natural environment and the greater social good positively influences employee outcomes, but optimization of each outcome depends on the strength of those values. Originality/value This research answers two specific research calls. First, it applies signaling theory to the workplace context, positioning FLEs as the receivers and feedback mechanisms of firm-level signals. Second, using too-much-of-a-good-thing logic, it uncovers boundary conditions imposed by social and environmental constructs on frontline outcomes.

Managing the tensions between exploration and exploitation in large construction projects

2017 ◽  
Vol 17 (4) ◽  
pp. 492-510 ◽  
Author(s):  
Per Erik Eriksson ◽  
Henrik Szentes
Keyword(s):  
Collaborative Design ◽  
Construction Projects ◽  
Current Knowledge ◽  
Practical Importance ◽  
Fine Tuning ◽  
High Tech ◽  
Exploration And Exploitation ◽  
Structured Interviews ◽  
Firm Level ◽  
Content Type

Purpose Prior studies highlight the importance of building ambidextrous capabilities to achieve both exploitation of current knowledge and technologies to make profits today, and exploration of new knowledge and technologies to adapt to and prepare for tomorrow’s demands. In spite of its theoretical and practical importance, research on organizational ambidexterity in project-based organizations is scarce. Thus, the purpose of the paper is to study how ambidexterity may be managed and how exploration and exploitation may be achieved in construction projects. The research identifies some drivers and barriers to exploration and exploitation and also sheds light on how various management approaches interact and affect exploration and exploitation activities. Design/methodology/approach The empirical material is drawn from 40 semi-structured interviews with managers representing the client, the contractor and the designer involved in each of the seven large construction projects in the sample. Findings In contrast to prior literature in high-tech industries where exploitation focuses on continuous development, exploitation in construction projects often involves adopting conventional methods and solutions based on existing knowledge without any development efforts at all. This may enhance short-term efficiency and lower risk at the project level but increase risk at the firm level. Tight time schedules hinder both radical innovations and incremental developments, and the findings also reveal that to invest in efforts on explorative solutions, it must be possible to exploit the solutions in the same project. Research limitations/implications In this empirical context, the traditional structural and sequential ambidexterity solutions are not sufficient. In construction projects, contextual ambidexterity solutions in which key project actors collaborate in developing systemic innovations and fine-tuning solutions across projects are more effective. Practical implications Sufficient project size and/or long-term contracts over a series of projects enhance both investments in explorative activities and exploitation through continuous developments from project to project. In design–bid–build contracts, the client and consultant often miss opportunities to explore new technical solutions that rely on contractor competencies. Early procurement of contractors (e.g. in collaborative design–build contracts) thereby enables the achievement of both exploration and exploitation. Originality/value This study provides important input to the authors’ understanding of how exploration and exploitation may be managed in project-based industries, which has been scarcely studied in previous ambidexterity literature.

scholarly journals From sense-making to perceived organizational performance: looking for the best way

2019 ◽  
Vol 38 (2) ◽  
pp. 105-117 ◽  
Author(s):  
Marta Mas-Machuca ◽  
Frederic Marimon
Keyword(s):  
Organizational Performance ◽  
Employee Engagement ◽  
Structural Equation ◽  
Mediation Effect ◽  
Equation Modeling ◽  
Sense Making ◽  
New Paradigm ◽  
Measurement Scales ◽  
Content Type ◽  
Managerial Implications

PurposeMission statements (SMs) are a frequent strategic tool, yet little is known about their effects on economic performance. The purpose of this paper is twofold: first, to model and assess the relationships among the sense-making of the SM, employee mission engagement (EME), organizational mission fulfillment (OMF) and perceived organizational performance (PER) and, second, to determine the path that best explains these connections.Design/methodology/approachThis paper reports the results of an empirical investigation drawn from a sample of 132 managers at different levels in two Spanish companies. The data analysis was performed in two steps: the first was to assess the reliability of the measurement scales and the second was to build a causal model using structural equation modeling analysis.FindingsThe findings suggest that the best path to explain the relationships between the SM and perceived organizational performance (PER) is SM, EME, OMF, PER, with a full mediation effect for EME and OMF. These findings are consistent with previous research.Practical implicationsThe managerial implications of these results are that just having a good mission and effective communication of the mission is not enough. The mission has to be related to employee engagement and, at the same time, the organization needs to be mission driven.Originality/valueThis research provides a new paradigm for understanding the relationships between sense-making around the SM, EME, OMF and PER, and helps to adjudicate among possible outcome paths and better explain the inter-relationships among these constructs.

Crisis, rigidity and nonliberal governance in Japan: the cases of Mitsubishi Motors and Kanebo

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Seijiro Takeshita ◽  
Soo Hee Lee ◽  
Christopher Williams ◽  
Jacqueline Jing You
Keyword(s):  
Capital Investment ◽  
Environmental Turbulence ◽  
Management Decision ◽  
Formal Organization ◽  
Business Systems ◽  
Content Type ◽  
Business System ◽  
Management Decision Making ◽  
National Business Systems ◽  
National Business

PurposeThe authors examine the nature of institutional rigidity and governance problems contributing to crisis and under-performance of large corporations in Japan during a period of environmental turbulence for corporate Japan.Design/methodology/approachThrough explorative case studies of Mitsubishi Motors and Kanebo over a 10-year period from the mid-1990s to the mid-2000s the authors see how informal norms deeply embedded in the Japanese business system prevented the adoption of more liberal forms of governance that may have helped to overcome crisis.FindingsDespite fundamental differences in formal organization between the two cases, there were similar underlying problems in terms of (1) mechanisms for capital investment that would underpin strategic resilience and rejuvenation and (2) management decision-making and strategic control during crisis.Research limitations/implicationsThe cases show how normative institutions rather than formal regulative institutions matter to strategic continuity in national business systems that are put under pressure.Originality/valueThe authors link informal norms of governance intrinsic to a country to the issues of strategic resilience and responses during crisis and warn against the retrenching to traditional governance approaches where there has been criticism of alternative governance approaches.

Digging deep into the enterprise innovation ecosystem

2019 ◽  
Vol 13 (4) ◽  
pp. 820-839 ◽  
Author(s):  
Cong Sun ◽  
Jiang Wei
Keyword(s):  
Network Effect ◽  
System Level ◽  
Innovation Ecosystem ◽  
Firm Level ◽  
Chinese Enterprises ◽  
Content Type ◽  
Organizational Boundary ◽  
Ecological Evolution ◽  
Enterprise Innovation ◽  
Nested Structure

Purpose The purpose of this paper is to explore how Chinese enterprises overcome their lack of resource and capabilities and eventually fulfill global resource accumulation, fast innovative commercialization and significant technological breakthrough by establishing and coordinating innovation ecosystem at firm level. Design/methodology/approach This paper first reviewed the literature on the structure and coordinating mechanism of enterprise innovation ecosystem and identified two important gaps on the characteristics of ecosystem actors and the logic of innovative coordination. Then, the paper adopted grounded analysis about the construction and evolution of Haier’s innovation ecosystem based on longitudinal case data. On the basis of the case study, the construct of firm-level innovation ecosystem and new logic of coordination are formed. Findings This paper found the emerging phenomenon of sub-organizational ecosystem actors and depicted that the establishing process of firm-level innovation ecosystem went through three majors stages, and the corresponding coordinating logic changed from proactive intervention to reactive self-evolution. Originality/value This paper tried to make contributions to the studies of structure and coordinating mechanism of enterprise innovation ecosystem, and proposed the enterprise itself could build firm-level ecosystem within its organizational boundary and interact with external ecosystem. The findings enlightened the nested structure of ecosystem, opened the black box of organizational boundary and broke the limitation that existing researches only analyse innovation ecosystem at system level and regard firms as basic analytical unit. Besides, this paper proposed that the coordination of innovation ecosystem can be passively fulfilled by network effect and ecological evolution, where previous studies mainly focused on proactive institutional intervention and resource investment. This point could provide Chinese enterprises with good references.

Firms’ continuance intention on SaaS use – an empirical study

2019 ◽  
Vol 32 (1) ◽  
pp. 189-216 ◽  
Author(s):  
Ricardo Martins ◽  
Tiago Oliveira ◽  
Manoj Thomas ◽  
Sara Tomás
Keyword(s):  
Diffusion Of Innovation ◽  
Structural Equation ◽  
Equation Modeling ◽  
Management Support ◽  
Continuance Intention ◽  
Firm Level ◽  
Diffusion Of Innovation Theory ◽  
Content Type ◽  
Top Management Support ◽  
Risk Framework

Purpose Although studies have investigated reasons for software as a service (SaaS) adoption, it is unclear how firm-level SaaS use impacts future SaaS intentions. The purpose of this paper is to propose a theoretical model that integrates the technology-organization-environment framework, institutional theory, diffusion-of-innovation theory and the opportunity-risk framework to analyze the drivers of SaaS use and its continuance intention. Design/methodology/approach The authors evaluated the direct, moderating and mediating effects of determinants on SaaS continuance intentions using structural equation modeling and data from 301 firms. Findings Results found that top management support and normative pressures influenced SaaS use. Cost saving and security concerns were direct predictors of perceived opportunities and perceived risks, respectively. Perceived opportunities and risks and actual SaaS use influenced SaaS continuance. Interestingly, perceived opportunities were found to be a negative moderator on the relationship between SaaS use and SaaS continuance. Originality/value The results reveal insightful and controversial findings for SaaS research.

Cross-impact of leverage and firm performance: developed vs frontier bank-based economies

2019 ◽  
Vol 45 (8) ◽  
pp. 982-1000 ◽  
Author(s):  
Sibanjan Mishra ◽  
Ranjan Dasgupta
Keyword(s):  
Firm Performance ◽  
Capital Structure ◽  
Empirical Studies ◽  
Order Theory ◽  
Simultaneous Equation ◽  
Equation Modeling ◽  
Firm Level ◽  
Content Type ◽  
The Cross ◽  
And Performance

Purpose The purpose of this paper is to investigate the cross-impact of leverage and performance for firms operating in the developed and frontier bank-based economies. Design/methodology/approach This study uses annual panel data for a sample of 400 firms over a period of 27 years from 1990 to 2016. The sample sample firms consist of developed, Germany, France and Japan, and frontier including Argentina and Sri Lanka bank-based economies firms. The authors employ a simultaneous equation modeling consisting of two equations estimated using the two-stage least squares procedure to examine the cross-relationships between leverage and performance after controlling for other firm-level variables like size, growth and liquidity. Findings The empirical results are presented in two sets. First, in the case of firms in the developed bank-based sample, the authors find a negative debt-to-performance relationship and a negative performance-to-debt relationship. This inconsistent negative debt–performance relationship implies that firms operating in these economies use debt beyond a threshold limit, which, in turn, increases agency issues between the managers and debt-holders, thereby influencing firm performance adversely. Second, for frontier economies firms, the authors find a positive debt-to-performance relationship in line with the “trade-off theory.” Furthermore, the authors find a negative performance-to-debt relationship for both sub-samples in line with the “pecking-order theory.” Originality/value The study is distinct from earlier empirical studies and contributes largely to the existing literature. First, it emphasizes whether financial leverage influences firm performance in bank-based economies as firms operating in such systems are exposed directly to the strict regulatory environment. Second, it investigates whether any reverse relationship emanating from firm performance to capital structure holds for firms of these countries. This issue, to the best of author knowledge, is unanswered in previous research, more specifically for developed and frontier bank-based economies. Moreover, the results are relevant, as firm managers, analysts and policymakers must consider the importance of such cross-debt-performance relationships, while determining the optimal capital structure, in the bank-based economies.

Strategizing in horizons and verizons

IMP Journal ◽  
2017 ◽  
Vol 11 (2) ◽  
pp. 274-288 ◽  
Author(s):  
Lars Huemer
Keyword(s):  
Supply Chain ◽  
Design Methodology ◽  
Management Theory ◽  
System Level ◽  
Business Network ◽  
Firm Level ◽  
Content Type ◽  
Conceptual Study ◽  
Additional Value ◽  
Level Of Analysis

Purpose The study has two related objectives. At the firm level of analysis, the author proposes that a clearer distinction between firms’ mediating functions and mediators could enhance the understanding of business network strategizing. Whereas firms’ mediating functions have received attention in IMP research, less focus has been given to organizations whose core business is mediation. At the system level of analysis, the study complements the perception of a network horizon with that of a network verizon. Whereas the horizon is closely associated with work on firms’ mediating functions, the network verizon is of particular interest to mediators. The paper aims to discuss these issues. Design/methodology/approach This conceptual study combines IMP insights with strategic management theory. Findings The notion of a network horizon is important for business network strategizing, but also influences the perception of relevant network structures. These structures tend to be characterized by sequential interdependencies and a long-linked technology, often associated with physical products and production facilities. The notion of a network verizon highlights a network “depth” that has been unnoticed by previous work, which has focused on how narrow or wide a firm’s network horizon should be. The network horizon and the network verizon add strategizing options in terms of connecting key actors in the network to create additional value. Originality/value This paper concerns how IMP scholars understand boundaries and firms, and how perceptions of these influence business network strategizing. The study articulates a distinction between firms’ mediating functions and those organizations that fundamentally create value through mediating services. This distinction has system-level implications. In particular, the claim that the basis for a firm’s strategizing is its network horizon is discussed. The author proposes the notion of a “network Verizon,” providing a boundary perception of specific relevance to mediators. The network verizon portrays a network depth beyond both sequential tiers in a supply chain and links between different supply chains.

Sign in / Sign up

Export Citation Format

Share Document