scholarly journals The nexus between dynamic capabilities and competitive firm performance: the mediating role of open innovation

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Asta Pundziene ◽  
Shahrokh Nikou ◽  
Harry Bouwman
Keyword(s):  
Firm Performance ◽  
Open Innovation ◽  
Dynamic Capabilities ◽  
Competitive Performance ◽  
Content Type ◽  
Mediating Role ◽  
Competitive Firm ◽  
The Relationship ◽  
Practical Implications

PurposePrior research has reported the indirect implications of firm's dynamic capabilities on their competitive firm performance. Our attention now turns to open innovation since it has been confirmed to be an influential factor contributing to the superior performance of technological firms. So far there has been little research on assessing the relationship between a firm's dynamic capabilities as an antecedent of the competitive performance of the firm or investigations into the mediating role of open innovation in this relationship.Design/methodology/approachDrawing on the theory of dynamic capabilities, we developed a framework as a way to better understand the role of open innovation, which could then help to better explain the relationship between firms' dynamics capabilities and their competitive firm performance. Based on the empirical data of 465 firms operating in innovative and non-innovative industries, we employed structural equation modelling (SEM) to examine the research hypotheses and the path relationships in the proposed model.FindingsThe SEM analysis revealed that a firm's dynamic capabilities significantly impact its open innovation performance and that open innovation, consequently, impacts the competitive performance of the firm. Moreover, the results show that the path between dynamic capabilities and competitive firm performance is partially mediated through open innovation.Practical implicationsThe findings provide practical implications and draw managerial attention to the importance of: (1) investing in innovation, (2) engaging customers in the innovation process and (3) maintaining innovation management excellence as significant antecedent factors in increasing competitive firm performance.Originality/valueConsidering the lack of empirical research in the literature on the links between dynamic capabilities and open innovation, this paper contributes to the dynamic capabilities and open innovation literature by confirming that open innovation not only mediates the relationship between these two aspects but also strengthens the effect the dynamic capabilities have on competitive firm performance. Besides, due to the significant impact of dynamic capabilities on open innovation, dynamic capabilities might be regarded as an antecedent of open innovation.

How open innovation practices drive innovation performance: moderated-mediation in the interplay between overcoming syndromes and capabilities

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
María Isabel Roldán Bravo ◽  
Antonia Ruiz Moreno ◽  
Alejandro Garcia Garcia ◽  
Irene Huertas-Valdivia
Keyword(s):  
Indirect Effect ◽  
Open Innovation ◽  
Dynamic Capabilities ◽  
Innovation Performance ◽  
Content Type ◽  
Mediating Role ◽  
The Relationship ◽  
Inside Out ◽  
Desorptive Capacity

Purpose This paper aims to investigate whether and under what conditions open innovation (OI) drives innovation performance (IP) in the financial sector. To this end, the paper first analyzes in-depth the indirect effect of overcoming two attitudinal mediators, namely, not-invented-here syndrome (NIHS) and not-sold-here syndrome (NSHS). It then uses dynamic capabilities theory to hypothesize that the indirect effects are moderated by absorptive and desorptive capabilities, respectively. Design/methodology/approach The authors perform an empirical study of major Spanish financial entities. Data are collected from 288 questionnaires from employees at branches of 13 bank entities. Regression analysis tests the mediating role of overcoming syndromes and the moderated-mediating role of dynamic capabilities in the OI–IP relationship. Findings Results confirm the indirect effect of overcoming NIHS on the relationship between outside-in OI and IP, and the indirect effect of overcoming NSHS on the relationship between inside-out OI and IP. Further, absorptive capacity moderates the indirect effect between outside-in OI practices and IP by overcoming NIHS, and desorptive capacity moderates the indirect effect between inside-out OI practices and IP by overcoming NSHS. Originality/value This paper advances knowledge by explaining discrepancies in the sign of the OI–IP relationship. By introducing comprehensive absorptive and desorptive capacity models to explain OI, it advocates an integrative framework to understand OI activities and their outcomes. Managers should develop these capacities using human talent training and cultural values development to mitigate NIHS and NSHS and optimize firms’ OI efforts and the improved IP benefits derived from them.

Assessing the mediating effect of leadership capabilities on the relationship between organisational resilience and organisational performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Afzal Izzaz Zahari ◽  
Norhayati Mohamed ◽  
Jamaliah Said ◽  
Fauziah Yusof
Keyword(s):  
Dynamic Capabilities ◽  
Higher Learning ◽  
Mediating Effect ◽  
Organisational Performance ◽  
Content Type ◽  
Mediating Role ◽  
Learning Institutions ◽  
The Relationship ◽  
Practical Implications

PurposeThe COVID-19 pandemic had brought drastic economic, social and technological changes in society. The drastic changes and uncertainty in the environment had forced various industries to evolve effectively to cope with the unexpected change and subsequently bounce back to regain business success. For instance, private higher learning institutions face steep challenges due to the shortfall of organisational capabilities. The study aims to examine the role of leadership capabilities and organisational resilience in regaining organisational success among higher private learning institutions in Malaysia.Design/methodology/approachAccording to the dynamic capabilities theory, organisational resilience and leadership capabilities are among the highest order of indicators for organisational success. Subsequently, this study examines the mediating role of leadership capabilities on the relationship between organisational resilience on organisational performance. The dynamic capabilities-based framework was tested using the structural equation modelling technique with the use of partial least squares approach. Data were analysed using 120 responses.FindingsBased on the 120-questionnaire survey received, this study found that organisational resilience and leadership capabilities contribute significantly to the performance of private higher learning institutions. In addition, this study found strong support for the mediating role of leadership capabilities to promote performance. The findings have both theoretical and practical implications for post-disaster organisation resilience development.Research limitations/implicationsThe work focuses on values that would have an impact towards organisational performance, which is an important factor of survival in an unpredictable environment. The findings are limited by the indicated constraints used in this study.Practical implicationsOrganisational survival techniques would provide managers, owners and leaders effective techniques that can be implemented to extend and improve the organisation's life cycle. The focus on organisational resilience and leadership factors would greatly improve the overall sustainability and performance of the organisation.Originality/valueThe study contributed by showing the importance, use and interaction needed from organisational resilience and leadership capabilities for them to survive when there is a sudden change in the environment. The timing and uniqueness of the data during the pandemic illustrates how organisations can survive with high levels of weightage towards resilience and leadership. This research is different from other studies as it had examined the impact of values and resilience and leadership in organisations.

Open innovation and organizational ambidexterity

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Bang-Ning Hwang ◽  
Yi-Ping Lai ◽  
Chunhsien Wang
Keyword(s):  
Firm Performance ◽  
Open Innovation ◽  
Moderated Mediation ◽  
High Tech ◽  
Organizational Ambidexterity ◽  
Content Type ◽  
Mediating Role ◽  
The Relationship ◽  
Moderating Role

PurposeThis study aims to examine the relationships among open innovation, organizational ambidexterity and firm performance. One important aspect of open innovation is that it enables a firm to develop its organizational ambidexterity capability and become more efficient in using this capability to improve its performance.Design/methodology/approachThe authors introduce a moderated mediation theoretical framework to reveal the bridging role of organizational ambidexterity in the effect of open innovation on firm performance. The theoretical model is empirically validated using survey data from 215 high-tech firms.FindingsThe authors find that open innovation plays a moderating role in the relationship between organizational ambidexterity and firm performance. Furthermore, organizational ambidexterity plays a significant mediating role in the relationship between open innovation and firm performance, and open innovation has a nonlinear, inverse U-shaped moderation effect on the relationship between organizational ambidexterity and firm performance.Research limitations/implicationsThis is one of the first studies to undertake a moderated mediation analysis by highlighting the mediating role of organizational ambidexterity and the moderating role of open innovation in influencing firm performance. The authors make a theoretical contribution to the field of open innovation and organizational behavior, and the authors provide concrete and feasible decision-making suggestions to decision makers adopting open innovation.Practical implicationsThe empirical results can help high-tech firm managers ascertain the organizational ambidexterity practices that can be employed and determine the level of open innovation to enhance firm performance.Originality/valueThis research provides new insights into whether and how firms can grasp the benefits of organizational ambidexterity to undertake open innovation activities. The findings not only contribute to advancing the mediating effect of organizational ambidexterity but also verify the inverse U-shaped moderation of open innovation in the relationship between organizational ambidexterity and firm performance.

Improving performance through leaders' forgiveness: the mediating role of radical innovation

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Emilio Domínguez-Escrig ◽  
Francisco Fermín Mallén Broch ◽  
Ricardo Chiva Gómez ◽  
Rafael Lapiedra Alcamí
Keyword(s):  
Organizational Performance ◽  
Explanatory Variable ◽  
Radical Innovation ◽  
Structural Equations ◽  
Content Type ◽  
Mediating Role ◽  
Firm Turnover ◽  
The Relationship ◽  
Practical Implications

PurposeThe objective of this study is to analyze the relationship between leaders' forgiveness and organizational performance using radical innovation as an explanatory variable.Design/methodology/approachThe study was conducted in a sample frame of 11,594 Spanish companies. A total of 600 valid questionnaires were obtained. The structural equations were used to validate the proposed hypotheses.FindingsResults confirmed the hypotheses proposed in the model: the authors provided, through structural equations, empirical evidence of the relationship between leaders' forgiveness and organizational performance, mediated by radical innovation. Leaders' forgiveness promotes radical innovation and, in turn, performance.Research limitations/implicationsThe sample of companies is heterogeneous in terms of firm turnover, size and age. The study is focused on radical innovation.Practical implicationsThe present study may help to develop more humane policies to manage human resources, by taking into account employees' feelings and needs.Originality/valueThe business field is closer to competitive values and has traditionally underestimated the importance of leaders' forgiveness. This is one of the few studies that empirically analyze the consequences of leaders' forgiveness within organizations.

Dynamic capabilities: antecedents and implications for firms' performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ricardo Jorge Correia ◽  
Mário Sérgio Teixeira ◽  
José G. Dias
Keyword(s):  
Structural Equation ◽  
Dynamic Capabilities ◽  
Structural Equation Models ◽  
Causal Link ◽  
Competitive Advantages ◽  
Content Type ◽  
Mediating Role ◽  
Strategic Orientations ◽  
The Relationship

PurposeThis paper aims to explore a new causal link between learning, market and entrepreneurial orientations and firms' performance by introducing dynamic capabilities and competitive advantages as mediator variables.Design/methodology/approachThe mediating role of dynamic capabilities and competitive advantages is tested using a sample of 1,190 Portuguese firms, and structural equation models.FindingsIt is shown that dynamic capabilities mediate the relationship between the three orientations–learning, market and entrepreneurial–and competitive advantages of differentiation and cost leadership, and both competitive advantages lead to firm's performance. It is also shown that learning orientation is an antecedent of market orientation and entrepreneurial orientation.Practical implicationsThis research shows that firm's performance depends on the capacity of firms to learn, innovate, be proactive, take risks and collect the best market data. Indeed, by optimizing the internal management and knowledge dissemination, firms will develop a set of capabilities and competitive advantages that lead to an appropriate response to market challenges.Originality/valueThis study tests the relationship between strategic orientations and firm's performance by taking the mediating effects of dynamic capabilities and competitive advantages into account. This research was conducted in Portugal.

Organizational injustice and knowledge hiding: the roles of organizational dis-identification and benevolence

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sadia Jahanzeb ◽  
Dirk De Clercq ◽  
Tasneem Fatima
Keyword(s):  
Well Being ◽  
Content Type ◽  
Mediating Role ◽  
Knowledge Hiding ◽  
The Relationship ◽  
Sense Of Obligation ◽  
Moderating Role ◽  
Practical Implications ◽  
Organizational Injustice

PurposeWith a basis in social identity and equity theories, this study investigates the relationship between employees' perceptions of organizational injustice and their knowledge hiding, along with the mediating role of organizational dis-identification and the potential moderating role of benevolence.Design/methodology/approachThe hypotheses were tested with three-wave survey data collected from employees in Pakistani organizations.FindingsThe experience of organizational injustice enhances knowledge hiding because employees psychologically disconnect from their organization. This mediation by organizational dis-identification is buffered by benevolence or tolerance for inequity, which reduces employees' likelihood of reacting negatively to the unfavourable experience of injustice.Practical implicationsFor practitioners, this study identifies organizational dis-identification as a key mechanism through which employees' perceptions of organizational injustice spur their propensity to conceal knowledge, and it reveals how this process might be mitigated by a sense of obligation to contribute or “give” to organizational well-being.Originality/valueThis study establishes a more complete understanding of the connection between employees' perceptions of organizational injustice and their knowledge hiding, with particular attention devoted to hitherto unspecified factors that explain or influence this process.

Quality of working life and career engagement of cancer survivors: the mediating role of effect of disease and treatment

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Siti Raba’ah Hamzah ◽  
Siti Nur Syuhada Musa ◽  
Zulaiha Muda ◽  
Maimunah Ismail
Keyword(s):  
Cancer Survivors ◽  
Working Life ◽  
Valuable Insight ◽  
Quality Of Working Life ◽  
Content Type ◽  
Mediating Role ◽  
The Relationship ◽  
Practical Implications

Purpose This study aims at investigating the relationship between the quality of working life and career engagement of cancer survivors and the mediating role of the effect of disease and treatment. Design/methodology/approach A cross-sectional study was conducted on 400 cancer survivors in Malaysia. The participants, aged between 18 and 40, were Malaysian citizens undergoing follow-up sessions at the Kuala Lumpur General Hospital and the National Cancer Institute of Malaysia. Data were analysed using descriptive statistics, Pearson’s correlation coefficient and regression analysis that implemented Baron and Kenny’s method for mediation were used for analyses. Findings The effect of treatment and disease was found to significantly mediate the relationship between quality of work-life and career engagement of cancer survivors. Research limitations/implications The instrument for this study was a self-reported questionnaire, with participants responding to specific items on a five-point Likert scale under the supervision of the researchers. As results from the survey were subjective in nature, the bias in the participants could not be eliminated completely. This study was also limited to the two main parameters, namely, quality of working life and career engagement and a mediator, namely, effects of the disease and treatment. Moreover, as the survey was conducted in only two hospitals in the Klang Valley area, the results cannot be generalized to other cancer survivors in other regions of Malaysia. Practical implications The results of this study indicated that the mediating role of the effects of disease and treatment on the relationship of the quality of working life subscales with career engagement. Practical implications, cancer survivor consciousness of the effects of disease and treatment is very important and should be addressed and could be notable to improve the quality of working life. Originality/value This study gives valuable insight to managers and practitioners by investigating the relationship between the quality of working life and career engagement and mediates by the effects of disease and treatment. The findings highlight the challenges cancer survivors face on their return to working life. The findings also highlight the need for management to take steps to help cancer survivors cope with career engagement for better work performance.

“Ownership structure and firm performance: the mediating role of board characteristics”

2020 ◽  
Vol 20 (4) ◽  
pp. 719-737 ◽  
Author(s):  
Md Mamunur Rashid
Keyword(s):  
Firm Performance ◽  
Ownership Structure ◽  
Indirect Effect ◽  
Positive Influence ◽  
Board Independence ◽  
Content Type ◽  
Board Characteristics ◽  
Mediating Role ◽  
The Relationship

Purpose The purpose of this study is to examine the mediating role of corporate board characteristics in the relationship between ownership structure and firm performance in the listed public limited companies of Bangladesh. Design/methodology/approach The study analyzed 527 annual reports of listed companies in Bangladesh for the years 2015-2017. The direct and indirect effect of ownership structure on firm performance was examined using AMOS 23. Baron and Kenny’s (1986) four steps procedure was used to establish the mediating role of board characteristics. Findings The results demonstrated that foreign ownership and director ownership have significant positive influence on both accounting and market based firm’s performance, while institutional ownership exhibits positive influence only on accounting-based performance (return on assets). With respect to mediating effect, the results show that board size and board independence partially mediate the relationship between ownership structure and firm performance. Research limitations/implications The major limitation of the study is that it focuses only on three years data in examining the hypothesized relationship among the variables. Practical implications Investors, regulators and managers can get evocative insights, particularly who seek to improve their company’s performance in the capital market through restructuring their ownership structure and board composition. Originality/value The study focuses on both direct and indirect effect of ownership structure on firm performance in the context of an emerging and developing economy. In examining the indirect effect, the study uses board size and board independence as the mediating variables.

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.

High-performance human resource management and firm performance

2015 ◽  
Vol 115 (2) ◽  
pp. 353-382 ◽  
Author(s):  
Kangyin Lu ◽  
Jinxia Zhu ◽  
Haijun Bao
Keyword(s):  
Firm Performance ◽  
Human Resources ◽  
High Performance ◽  
Human Resources Management ◽  
Chinese Enterprises ◽  
Content Type ◽  
Resources Management ◽  
Mediating Role ◽  
The Relationship

Purpose – Human resources have become a key issue in relation to the strong competition between service firms. Therefore, the purpose of this paper is to explore the relationship between high-performance human resource management (HRM) within this field to firm performance, making a useful attempt to explore the “black box” of enterprise human resources management effect on firm performance. Design/methodology/approach – In order to validate the relationship between high-performance HRM and firm performance, Chinese service industry samples were collected. Structural equation modeling and regression are adopted to estimate the direct effect of high-performance HRM on firm performance and the mediating role of innovation. Findings – The results show that the impacts of high-performance HRM on firm performance are significant. Moreover, innovation plays a partial mediating role between them. Training, work analysis and employee participation has a significantly positive impact on firm performance, while effects of profit sharing, employee development and performance evaluation on enterprise performance is not significant. The results strongly support the hypothesis that innovation holds intermediary variables between high-performance HRM and firm performance. Practical implications – Studying the relationship between high-performance HRM and firm performance can help Chinese enterprises more reasonable and effective learning foreign advanced management ideas and methods. And then can help Chinese enterprises to establish a high-performance HRM system that is suitable for Chinese enterprises; the research can help enterprises to identify meaningful practice of human resources management, outstanding keys, and perfect the HRM system of enterprises; research on innovation and innovative thinking is conducive to develop employees’ innovation motive, promote employee’ innovative behavior, and improve firm performance. Originality/value – This paper takes innovation as a mediating variable into the model and studies the intermediary role of innovation.

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