Supplier change, market competition and enterprise innovation

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yafei Zu ◽  
Ruonan Zhang

PurposeThe purpose of this paper is to study enterprise innovation in the perspective of external supplier relationship. On this purpose, this paper examines the impact of supplier change on enterprise innovation with the moderating role of market competition.Design/methodology/approachUsing 2012–2020 empirical data of Chinese listed manufacturing enterprises, this paper investigates the relationship among supplier change, market competition and enterprise innovation through a two-way interaction model.FindingsThe results show that supplier change has a negative impact on enterprise innovation. And market competition intensifies the negative relationship between supplier change and enterprise innovation. Additional analyses indicate that the main effect and the moderating effect are more significant when the enterprise is non-state-owned or has lower ownership concentration.Originality/valueThis paper studies enterprise innovation from the perspective of external stakeholders. It focuses on supplier relationship in a dynamic variation view, instead of the traditional static ones. Moreover, this paper explores the contingency effect of market competition and gives practical implications for managers to adjust innovation strategy flexibly.

2019 ◽  
Vol 23 (4) ◽  
pp. 291-305 ◽  
Author(s):  
Asif Hussain Samo ◽  
Hadeeqa Murad

Purpose This study aims to determine the impact of liquidity and financial leverage on the profitability, using a sample of 40 selected publicly quoted companies in the textile sector of the Pakistani economy. Design/methodology/approach Through quantitative approach, pooled panel regression and descriptive statistics models are used by taking annual data of Pakistan’s textile sectors from 2006 to 2016. Secondary data has been gathered from financial statements of the firms. Findings The results revealed that there is a positive relationship between liquidity and profitability and negative relationship between financial leverage and profitability. The results for liquidity measure CR revealed positive strong impact on ROA and the financial leverage measure D_E ratio showed negative but not strong impact on ROA. The other part of result concluded that there is a positive strong impact of C_R on ROE too and D_E has a negative impact on ROE. Research limitations/implications The results are showing the impact among these ratios for the textile sector of Pakistan only. Practical implications This study can help higher management of textile firms firm in decision-making stating clearly about how to perform well to enhance financial health of company, which can encourage investors to invest in companies having sound market standing. Originality/value This study takes the latest empirical data with different analysis technique.


2020 ◽  
Vol 46 (9) ◽  
pp. 1123-1143
Author(s):  
Omar Farooq ◽  
Zakir Pashayev

PurposeThis paper documents the impact of product market competition on the value of advertising expenditures.Design/methodology/approachThe authors use the data for non-financial firms from India and the pooled regression procedure to test their arguments during the period between 2009 and 2018.FindingsThe results show that advertising expenditures of firms operating in sectors with relatively high competition are more valuable than advertising expenditures of firms operating in sectors with relatively low competition. The results of the study are robust across various proxies of advertising expenditures and firm performance. Furthermore, the results also show that the positive impact of product market competition on the value of advertising expenditures is confined only to firms that already have lower agency problems.Originality/valueThe results of the study highlight the importance of product market competition on the value of advertising expenditure in the emerging market setting, where agency problems are supposed to be high.


2018 ◽  
Vol 44 (2) ◽  
pp. 207-221 ◽  
Author(s):  
Hussein Ali Ahmad Abdoh ◽  
Oscar Varela

Purpose The purpose of this paper is to examine the effects of product market competition on capital spending (investments) financed by cash flow (CF), and the role of financial constraints (FC) on these effects. Design/methodology/approach The Herfindahl-Hirschman index of concentration measures competition. Earnings retention, working capital, the Kaplan and Zingales (1997) index and CF shortfalls measure FC. Regressions relating capital spending to competition are performed for the full sample, as well as financially constrained and unconstrained, and growth and value firms’ sub-samples. For robustness, large reductions in import tariffs are examined to exogenously measure competition, with the impact of these on capital spending tested via the difference-in-difference method. Findings The results show that competition fosters valuable investments when firms are financially unconstrained, especially for growth firms, and reduces these investments when they are financially constrained, especially for value firms. Practical implications The role of policy makers in alleviating FC should be focused toward growth firms that operate in competitive industries. As well, increasing financial pressure on value firms in competitive industries can have desirable effects, as it forces these firms to reduce investment inefficiency. Originality/value Many firm-specific and environmental factors drive the relation between competition and investment. Khanna and Tice (2000) find profitable firms increasing and highly levered firms decreasing investments in response to Wal-Mart’s entry into their markets. Jiang et al. (2015) suggest that environments with predictable growth drive a positive relation between competition and investments. This study claims that another factor that affects this relation is the firm’s level of FC.


2021 ◽  
Vol 13 (17) ◽  
pp. 9878
Author(s):  
Lei Shen ◽  
Cong Sun ◽  
Muhammad Ali

The structure of the manufacturing industry has forced manufacturing companies to understand the importance of digitalization and servitization transformation, in terms of production and R&D. In this study, we examine the relationship between servitization, digitization, and enterprise innovation performance through the lens of dynamic capabilities within enterprises. We also discuss the impact of the transformation servitization strategy on business innovation, and the mechanisms by which it impacts business innovation performance. The study’s findings indicate that servitization significantly contributes to innovation performance, and digitalization acts as a mediating mechanism between the proposed relationships. Thus, this article argues for the integration and growth of servitization and digitization.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Upasna A. Agarwal ◽  
Sushmita A. Narayana

PurposeThe present study aims to examine the impact of relational communication, operationalized in terms of information sharing, quality and frequency of information, on buyer's trust and relationship satisfaction in a buyer–vendor relationship. The study also tests the mediating role of trust and the moderating role of relationship commitment in relational communication and satisfaction relationship.Design/methodology/approachThe data for the study were collected through a questionnaire survey from 321 managers of the different firms who were directly or indirectly involved in making procurement or purchasing decision in the firm and were familiar with the firm's supplier relationships.FindingsRelational communication was found to be positively related to relational satisfaction and trust partially mediated this relationship. Further, relationship commitment moderated relational communication-satisfaction relationship, such that the positive affect of relational communication on relational satisfaction was accentuated when buyer experienced higher relationship commitment towards the supplier.Research limitations/implicationsUsing single source, self-reported questionnaire data and cross-sectional research design are the limitations of this study. Studies in future should consider a dyadic perspective. The study outlines the need to explore investments and strategies in enhancing relational communication in buyer–vendor relationships.Originality/valueAnchored in theoretical foundations of social exchange theory, the study integrates and tests behavioral aspects of buyer–vendor relationship. Testing an integrated model with direct and indirect effects of relational communication on relationship satisfaction in buyer–vendor is a significant contribution of the research. The study also contributes by examining relational exchanges in buyer-vendor relationships in India, an underrepresented context in buyer–supplier relationship (BSR) literature.


2017 ◽  
Vol 32 (1) ◽  
pp. 42-57 ◽  
Author(s):  
Ji Eun Park ◽  
Sung-Joon Yoon

Purpose The purpose of this paper is to further our understanding of the sources of consumer animosity and the moderating role of product involvement on purchase intentions. Design/methodology/approach Animosity is examined in the context of South Korean consumers’ purchase intentions toward Japanese products. A structural equation model was estimated in Lisrel 8.80 to assess the proposed model. Findings The results offer evidence that consumer ethnocentrism and susceptibility to normative influence have a positive relationship with animosity while cosmopolitanism has a negative relationship with animosity. Furthermore, animosity negatively influences intentions to purchase for high-involvement products, but not for low-involvement products. Practical implications International marketing managers can better identify the risk that consumer animosity poses to their products and services based on level of product involvement and characteristics of the market segment. Originality/value This study offers clarity to the understanding of animosity by examining additional antecedents of animosity that reflect different world views. It also provides an exception to the previous findings that in general animosity has a negative impact on consumers’ willingness to buy products of countries for which consumers have animosity. In other words, the effect of animosity on purchase intention of products from a disliked country depends on the degree of involvement.


2017 ◽  
Vol 7 (2) ◽  
pp. 173-189 ◽  
Author(s):  
Walaa Wahid Elkelish

Purpose The purpose of this paper is to investigate the relationship between related party transactions disclosure (RPTD) and firm valuation in the United Arab Emirates (UAE), an emerging market. Design/methodology/approach Data on study variables were obtained manually from the published financial statements of all listed companies in the stock market during the period 2008-2012. Panel regression analysis models with fixed and random effects were used to ensure reliability of results. Several robustness checks were undertaken on the study outcomes. Findings The empirical results show that there is a significant negative relationship between RPTD and firm valuation in the UAE. RPTDs for subsidiaries and associates have the most damaging impact on firm valuation. Other control variables such as corporate governance disclosure (CGD), debt to equity, asset tangibility and sales growth show significant impact on firm valuation. Research limitations/implications The potential difference in the understanding of what constitutes “related party” across companies may affect the extent of related party disclosure across companies. Furthermore, some variables are not controlled for such as ownership structure and cultural values. Practical implications This paper provides useful practical guidelines for regulatory agencies, corporate managers and other stakeholders for improving the financial reporting system. Originality/value RPTD was measured according to the International Financial Reporting Standards (IAS 24) standards. Furthermore, the impact of new control variables such as CGD and product market competition was tested for financial and non-financial sectors.


2019 ◽  
Vol 9 (2) ◽  
pp. 56
Author(s):  
Nguyen Tan Vinh

Asymmetric infomation has caused difficulties for investors in the financial market when the enterprises have high competitiveness in the market but there are acts of using unusual capital structure. Investment decisions on the stock market of investors will be negatively affected by asymmetric information. In particular, the manufacturing enterprises have made an important contribution to Vietnam’s economic structure. Therefore, the authors conduct research to assess the impact of product market competition on the capital structure of manufacturing enterprises listed in the Vietnam stock market from 2010 to 2018. By analyzing panel data through the Generalized Method of Moments (GMM), the research results indicate: Competitiveness factors HHI has a negative impact on debt ratio (DR)—the results support the predation theory. When businesses are highly competitive, there will be a tendency to reduce the debt ratio. At the same time, the research results also show the variables ROA and CGIR have negative effects on DR. GRTA and NDTS variables do not affect the DR of manufacturing enterprises. The results of this study will help investors to make their decisions more wisely.


2016 ◽  
Vol 37 (2) ◽  
pp. 226-240 ◽  
Author(s):  
Jeffrey J. Haynie ◽  
Stanley G Harris ◽  
Christopher Brian Flynn

Purpose – The purpose of this paper is to examine the impact of core self-evaluations (CSE) and change uncertainty on job satisfaction and turnover intentions within the context of an organizational change. Because individuals high in CSE are expected to be able to cope better with uncertainty, the authors also tested the mitigating effect of CSE on the change uncertainty-attitude relationships. Design/methodology/approach – Surveys were completed and returned by 398 employees in the midst of a merger containing measures of CSE, change uncertainty, job satisfaction, and turnover intentions. The survey was voluntary and administered cross-sectionally. Findings – Change uncertainty was found to negatively influence job satisfaction and positively influence turnover intentions. Additionally, CSE positively impacted job satisfaction and negatively impacted turnover intentions. High CSE was also found to minimize the negative impact of examined change uncertainty-job attitude relationships. Research limitations/implications – The research has implications for the role of CSE in attitude formation within a change context and adds to existing literature supporting the detrimental effects of change uncertainty on job attitudes. Also, the study provided evidence of how CSE interacts with change uncertainty reducing the detrimental impact on job attitudes. Future research should continue to examine the role of CSE in the way employees react to other change-related stressors. Originality/value – The relationships among change uncertainty, CSE, and job attitudes were explored through a theoretical lens and tested empirically using employees in the midst of an organizational change.


2018 ◽  
Vol 38 (1) ◽  
pp. 295-310 ◽  
Author(s):  
Frank Wiengarten ◽  
Annachiara Longoni

Purpose The purpose of this paper is to assess the influence of uncertainty on workplace accidents at the plant level. Furthermore, this study explores such relation in complex settings (i.e. manufacturing networks) and assesses whether or not information sharing in such environments can reduce the potentially negative impact of uncertainty on accidents. Design/methodology/approach To assess the relationships between uncertainty, accidents and information sharing the authors utilise cross-country survey data collected through the sixth iteration of the International Manufacturing Strategy Survey. The authors conceptualise workplace accidents through production time lost due to accidents. Furthermore, the authors conduct multiple regression analyses to test the hypotheses. Findings Results suggest that procurement, production, and demand uncertainties do indeed lead to an increase in workplace accidents at the plant level. Furthermore, the negative impact of uncertainty can be significantly reduced through information sharing. Originality/value This study represents a comprehensive attempt to simultaneously assess the impact of uncertainty on workplace accidents at the plant level and the possible moderating impact of information sharing.


Sign in / Sign up

Export Citation Format

Share Document