scholarly journals Insurers' risk management as a business process: a prospective competitive advantage or not?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Danish Ahmed ◽  
Xie Yuantao ◽  
Umair Saeed Bhutta
Keyword(s):  
Risk Management ◽  
Competitive Advantage ◽  
Business Process ◽  
Dynamic Capabilities ◽  
Discriminant Validity ◽  
Insurance Industry ◽  
Insurance Companies ◽  
Equation Modeling ◽  
Content Type ◽  
Convergent And Discriminant Validity

PurposeInsurance companies exist to manage the risk of others, which is why they are perceived to be competitive in risk management (RM). Considering this, we investigate how different RM capabilities make insurers effective in RM. These capabilities include understanding risk and risk management (URRM), risk identification (RI), risk assessment and analysis (RAA) and risk monitoring (RMON) activities in insurance companies. In addition, the authors probe how these capabilities can jointly yield a competitive advantage for the insurance industry under the resource-based view (RBV) and dynamic capabilities perspective (DCP).Design/methodology/approachThe authors present a latent variable RM model for the insurance industry and employ structural equation modeling (SEM) to test the hypotheses. Furthermore, the authors also conduct confirmatory factor analysis (CFA) and convergent and discriminant validity analysis for model fit and invariance testing, respectively.FindingsThe results show that insurers who investigated RM-related capabilities directly influence their risk management practices (RMPs). Moreover, improving these capabilities will make insurers more effective in managing the risks of others. Thus, RM as a business process will yield a competitive advantage for the insurance sector. The findings are supported by the theoretical insights presented by the RBV and DCP. Furthermore, the model also adheres to the convergent and discriminant validity cut-off values.Originality/valueTo the best of the authors’ knowledge, this is the first study examining insurers' RM practices as a source of a competitive advantage.

scholarly journals Dynamic Capabilities and Competitive Advantage of Telecommunication Companies in Ghana. The Role of Innovation Capability

2021 ◽  
pp. 146-160
Author(s):  
Nana Esi Quagraine ◽  
Cai Li ◽  
Isaac Ahakwa ◽  
Nana Aba Quagraine
Keyword(s):  
Competitive Advantage ◽  
Structural Equation ◽  
Dynamic Capabilities ◽  
Discriminant Validity ◽  
Internal Consistency Reliability ◽  
Equation Modeling ◽  
Innovation Capability ◽  
Sustainable Performance ◽  
Convergent And Discriminant Validity ◽  
Telecommunication Companies

This paper explored the link between dynamic capabilities, innovation capabilities, and competitive advantage of telecommunication companies in Ghana, considering a mediation interaction. Data were obtained from two hundred and fifty (250) employees from selected telecommunication companies in the Accra metropolis through simple random probability sampling. However, two hundred and forty-two (242) responses were deemed accurate and used in the analysis. Partial Least Squares (PLS) based on Structural Equation Modeling (SEM) was employed in the analysis. From the findings, this study’s data met internal consistency reliability, convergent, and discriminant validity. Dynamic capabilities had a positive and significant impact on innovation capability and competitive advantage. Also, dynamic capabilities through innovation capability positively impacted competitive advantage and were statistically significant. Based on the findings, it’s recommended that organizations and managers consider both exploitation and exploration competencies in product development as both competencies influence various aspects of an organization’s competitive advantage, as this will help ensure organizations’ sustainable performance and thus remain competitive.

Enterprise risk management and Solvency II: the system of governance and the Own Risk and Solvency Assessment

2020 ◽  
Vol 21 (4) ◽  
pp. 317-332 ◽  
Author(s):  
Pablo Durán Santomil ◽  
Luis Otero González
Keyword(s):  
Risk Management ◽  
Insurance Industry ◽  
Solvency Ii ◽  
Enterprise Risk Management ◽  
Insurance Companies ◽  
Legal Form ◽  
Content Type ◽  
Enterprise Risk ◽  
Solvency Assessment

Purpose The purpose of this paper is to analyze how enterprise risk management (ERM), the system of governance and the Own Risk and Solvency Assessment (ORSA) have been boosted with the entry of Solvency II. Design/methodology/approach For this analysis, the authors have undertaken a survey of chief risk officers (CROs) working in Spanish insurance companies. Findings The results show that Solvency II has definitely promoted ERM in the European insurance industry and improved the system of governance of the insurance companies, and that the perceived value of the ORSA for the companies is higher than the cost. It is clear that the quality of ERM implemented by companies is higher in those that face more complex risks and with greater interdependencies – that is, larger companies, foreign insurers and insurers with several lines of business – but is unaffected by the legal form of the entity (mutual/corporation). Originality/value This study conducts primary research with surveys of CROs and develops a measure of the quality of ERM implemented by insurance companies.

Linking strategic entrepreneurship to business growth in Iranian IoT-based companies

Kybernetes ◽  
2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Babak Ziyae ◽  
Majid Vagharmousavi
Keyword(s):  
Competitive Advantage ◽  
Structural Equation ◽  
Dynamic Capabilities ◽  
Business Strategies ◽  
Equation Modeling ◽  
Continuous Change ◽  
Business Growth ◽  
Content Type ◽  
Strategic Entrepreneurship ◽  
The Relationship

Purpose Strategic entrepreneurship (SE) is effective in the formation of business strategies that involve simultaneous opportunity-seeking and advantage-seeking behaviors. SE revitalizes firms to achieve competitive advantage in the current turbulent markets. The purpose of this paper is to understand in more detail how SE influences business growth (BG) through the lens of dynamic capabilities (DC) theory. Design/methodology/approach Using a quantitative research method and structural equation modeling technique, the measurement and structural models were developed to test the research hypotheses. For this purpose, a survey was conducted among 159 internet of thing (IoT)-based companies in Iran. Findings The findings show that DC theory provides the theoretical underpinning to describe the effect of SE and its dimensions on entrepreneurial opportunity recognition (EOR). Results also reveal that EOR mediates the relationship between SE and BG. Furthermore, this research empirically verifies that organizational entrepreneurship and value creation moderate the relationship between EOR and BG. Originality/value IoT identifies a pathway for continuous change that helps to improve firms’ competitiveness and innovation. This paper provides a new insight into how Iranian IoT-based companies can enhance their SE to recognize entrepreneurial opportunities and gain competitive advantage. Mainly, this study singles out and discusses the variegated features that characterize the implementation of SE by Iranian IoT-based companies having different characteristics.

Fashion attributes preferred by young Bangladeshi consumers while buying casual clothes

2018 ◽  
Vol 22 (4) ◽  
pp. 540-556 ◽  
Author(s):  
Tamgid Ahmed Chowdhury ◽  
Tania Akter
Keyword(s):  
Structural Equation ◽  
Discriminant Validity ◽  
Apparel Industry ◽  
Primary Data ◽  
Equation Modeling ◽  
Male And Female ◽  
Content Type ◽  
Female Consumers ◽  
Convergent And Discriminant Validity ◽  
Made In

PurposeThe purpose of this paper is threefold: first, to identify a list of fashion attributes preferred by young Bangladeshi consumers while buying casual clothes; second, to test the applicability of Kano’s quality theory in the apparel industry; and, finally, to explore the differences in fashion priorities between male and female consumers.Design/methodology/approachThis study is based on primary data collected through a survey from 1,177 young consumers of urban Bangladesh. Structural equation modeling was used to develop the attribute index. Also, convergent and discriminant validity and construct reliability of the index were tested.FindingsThe study offers a four-dimensional 19-item index representing the desirable fashion attributes. This paper also confirms the applicability of Kano’s theory in the apparel industry. Results revealed that “well-designed casual attires” and “discount offers” are top-ranking attributes as perceived by both male and female consumers. However, there are differences in the preferences. Women prioritized irritation-free, durable and soft fabric, whereas men preferred attributes such as suitability of color and functionality in the workplace.Practical implicationsThe findings of the study provide clothing suppliers of Bangladesh with information that may be utilized while preparing their options. For instance, as casual clothes are frequently worn and washed, a quality fabric that looks good even after several washes is highly recommended. Dress manufacturers need to offer colorful attires to women, whereas for men, more color options should be available. Casual clothes should be made in a way that they are acceptable in the community and workplace.Originality/valueAs research on exploring desirable fashion qualities in developing markets (especially in South Asian region) is rare, this study is contributing to the literature by offering validated apparel attribute index.

Injecting courage into strategy: the perspective of competitive advantage

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Joanna Radomska ◽  
Przemysław Wołczek ◽  
Aleksandra Szpulak
Keyword(s):  
Firm Performance ◽  
Competitive Advantage ◽  
Dynamic Capabilities ◽  
Capabilities Approach ◽  
Mediating Effect ◽  
Superior Performance ◽  
Equation Modeling ◽  
Content Type ◽  
Dynamic Growth ◽  
A Priority

Purpose This study aims to examine the mediating effect of four antecedents of competitive advantage on the linkage of risky strategy to firm performance, measured by revenue dynamics. It considers the roots of competitive advantage to highlight different patterns and foundations of achieving superior performance. It investigates whether pursuing a risky strategy fosters revenue dynamics growth and whether different mediators are included in that relationship. Design/methodology/approach Path analysis (structural equation modeling) method is used to analyze data from 122 companies of various sizes and industries. All respondents were responsible for executing strategic management processes. The paper used the subjective perspective, which is based on the individual opinion of senior company managers and owners. Findings The authors find a positive relationship between risky strategy and firm performance, but no evidence of a mediating role of competitive advantage and dynamic growth in this relationship. Competitive advantage should be perceived as a set of integrated factors that can be analyzed from an aggregated perspective. Integrating all antecedents requires a holistic and systematic approach and the development of a particular mindset. Aggregated competitive advantage is related to setting dynamic growth as a priority. However, no relationship between risky strategy and achieving competitive advantage, or between implementing a risky strategy and setting dynamic growth as a priority, is observed, which was assumed to explain the revenue dynamics growth. Research limitations/implications Secondary data should be analyzed to explore how risky strategies are manifested, and which managerial decisions are reflected in high-level risk. A multidimensional scale could be developed to check how risk shapes the constructs’ interdependence. Therefore, the dynamic capabilities approach could be further expanded. Practical implications This research offers insights into the short-term relationship between risky strategy and revenue dynamics, although competitive advantage does not mediate that relationship. Special attention should be paid to the selected antecedents of competitive advantage, as they influence dynamic growth. Originality/value This work provides insights into different antecedents of competitive advantage, which is not necessarily based on making risky decisions, and into factors that facilitate firm performance measured by revenue dynamics.

Orchestrating internal and external resources to achieve agility and performance: the centrality of market orientation

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Randy Kurniawan ◽  
Adler Haymans Manurung ◽  
Mohammad Hamsal ◽  
Wibowo Kosasih
Keyword(s):  
Firm Performance ◽  
Market Orientation ◽  
Business Process ◽  
Structural Equation ◽  
Dynamic Capabilities ◽  
Business Environment ◽  
Equation Modeling ◽  
Content Type ◽  
Telecommunication Technology ◽  
Bargaining Position

PurposeThis study examines the collaborative impact of networking capability and balanced agile project management (APM) on firm performance through the mediating role of market orientation and business process agility of medium and large telecommunication technology providers in Indonesia.Design/methodology/approachResearch data were collected from the executive management of telecommunication technology providers in Indonesia via a questionnaire survey to obtain 150 valid questionnaires for analysis. This study analyzed the overall model fit and causal relationship using confirmatory factor analysis (CFA) and structural equation modeling (SEM).FindingsThe results indicate that market orientation fully mediates the link between networking capability-business process agility and balanced APM-business process agility. Furthermore, business process agility mediates the relationship between market orientation and firm performance.Research limitations/implicationsThis study is based on a cross-sectional nature and might fail to capture the dynamic of the studied variables over an extended period.Originality/valueThe study extends the knowledge that dynamic capabilities, represented by networking capability and balanced APM, must be framed by market orientation to create customer value and improve bargaining position. However, market orientation alone is not enough in a highly dynamic business environment. Organization also requires business process agility, responsiveness and adaptability to timely address customers' needs and requirements.

Measuring dynamic absorptive capacity in national innovation surveys

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Marlon F.R. Alves ◽  
Simone V.R. Galina
Keyword(s):  
Absorptive Capacity ◽  
Dynamic Capabilities ◽  
Discriminant Validity ◽  
Measurement Model ◽  
Dynamic Capability ◽  
Capacity Measurement ◽  
Content Type ◽  
Sustained Competitive Advantage ◽  
Convergent And Discriminant Validity ◽  
Innovation Surveys

PurposeThe dynamic capability view reshaped the understanding of how firms can achieve a sustained competitive advantage through innovation. However, studies based on national innovation surveys have not incorporated this vision when measuring absorptive capacity, especially the evolutionary aspects of dynamic capabilities. This study addresses this gap.Design/methodology/approachWe empirically validate a scale using a national innovation survey based on the Oslo Manual standards. Using a five-wave survey, we demonstrate the scale's reliability, convergent and discriminant validity and stable structure across industries and over time.FindingsThis research integrates the dynamic capability literature with absorptive capacity measurement to propose and validate a multi-item and bidimensional scale for national innovation surveys.Originality/valueWe provide a measurement model that captures an evolutionary conceptualization of absorptive capacity as a dynamic capability. Hence, our contribution enhances the quality and validity of studies on absorptive capacity and advances the understanding of how firms develop and deploy absorptive capacity to drive performance.

Structural process model of organizational innovativeness types for sustainability: a dynamic capability perspective

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kumar Verma Bhupendra ◽  
Shirish Sangle
Keyword(s):  
Business Process ◽  
Process Model ◽  
Dynamic Capabilities ◽  
Dynamic Capability ◽  
Measurement Scale ◽  
Equation Modeling ◽  
Product Innovativeness ◽  
Content Type ◽  
Structural Process ◽  
Organizational Innovativeness

Purpose This paper aims to present an empirical test to analyze a structural process model based on constructs of organizational innovativeness types considering sustainability aspects. It explores interdependency among constructs of organizational innovativeness identified as product, process, behavioral, market, strategic and risk innovativeness. It integrates a dynamic capability perspective to strengthen the existing literature. Design/methodology/approach Sample for data analysis covers 389 managers of firms demonstrating some traits of sustainability orientation and operating in a developing economy like India. Structural equation modeling is applied to test the causal model. Findings Study reveals that risk innovativeness along with strategic innovativeness leads to behavioral innovativeness which further causes product innovativeness and business process innovativeness. Business process innovativeness supports product innovativeness leading to market innovativeness of a firm. Characteristics of organizational innovativeness linked with the risk-taking ability of top management can be a critical differentiating factor between conventional and sustainability-oriented firms. Research limitations/implications The factor of risk innovativeness was applied as per the existing measurement scale and has a scope for further exploration. It also offers an opportunity to reassess organizational innovativeness processes considering sustainability aspects. Practical implications The study may help organizations to develop a systemic approach to evolve and develop business processes linked to organizational innovativeness considering sustainability challenges and uncertain market conditions. Social implications Development of organizational innovativeness considering sustainability aspects may lead to innovative and disruptive products/services leading to mitigate climate change issues, thus helping global societies in long run. Originality/value The study offers common ground linked to the bodies of research related to dynamic capabilities, micro-foundations of dynamic capabilities, innovative capability and sustainability.

Measuring the experience of off-price fashion shopping: scale development and validation

2018 ◽  
Vol 22 (4) ◽  
pp. 454-475
Author(s):  
Gary Mortimer ◽  
Syed Muhammad Fazel-e-Hasan ◽  
Kathleen A. O’Donnell ◽  
Judi Strebel
Keyword(s):  
Consumer Behavior ◽  
Structural Equation ◽  
Discriminant Validity ◽  
Three Dimensional ◽  
Equation Modeling ◽  
Retail Sector ◽  
Content Type ◽  
Repurchase Intentions ◽  
Convergent And Discriminant Validity ◽  
Shopping Experience

Purpose Off-price fashion retailers are expected to dominate the retail sector over the next five years. Surprisingly, selling excess designer labels, in what some describe as a disorganized manner, appeals to certain shoppers who enjoy the “thrill of the hunt.” Recent research conceptualized consumers, whose motivation for, and outcomes from, fashion shopping set them apart from previously reported shopper types. Referred to as “Sport Shoppers,” they view fashion shopping as an achievement domain. The purpose of this paper is to quantify such shoppers through the development of a valid psychometric scale. Design/methodology/approach Four studies, comprising depth interviews and online surveys, across two countries were employed to develop a three-dimensional scale of the sport shopping experience. Factor analyses and structural equation modeling were used to analyze and test a theoretically hypothesized model. Findings Study 1 generated items aligned to the three theoretical dimensions of the sport shopping experience. Study 2 confirmed reliability and factor structure of the psychometric scale. Study 3 provides evidence of convergent and discriminant validity with previous shopper types. Finally, Study 4 demonstrates nomological validity through a theoretically hypothesized model of the sport shopping experience. Originality/value This is the first study to employ achievement goal theory in a consumer behavior context to delineate an emergent shopper type. The developed scale is the most comprehensive, multi-dimensional measure of the experience of this new consumer type. As such, it represents a valuable contribution to fashion retail and consumer behavior literature. The scale enables practitioners to quantify target markets and identify relationships to other factors, such as overall satisfaction and brand repurchase intentions.

Development and validation of financial well-being related scales

2019 ◽  
Vol 37 (4) ◽  
pp. 1025-1040 ◽  
Author(s):  
Farah Diba M.A. Abrantes-Braga ◽  
Tania Veludo-de-Oliveira
Keyword(s):  
Interest Rates ◽  
Credit Card ◽  
Discriminant Validity ◽  
Well Being ◽  
Confirmatory Factor Analyses ◽  
Content Type ◽  
Convergent And Discriminant Validity ◽  
Group Interviews ◽  
Development And Validation ◽  
Additional Income

PurposeThe purpose of this paper is to develop valid and reliable scales for assessing a driver and two obstacles potentially related to financial well-being (FWB): financial preparedness for emergency, beliefs of credit limits as additional income and risky indebtedness behaviour.Design/methodology/approachThe scales were developed from scratch across six studies, employing a two-step methodology, which encompassed both qualitative (e.g. focus group, interviews) and quantitative (i.e. online surveys) data collection. Exploratory and confirmatory factor analyses were employed to test and validate the proposed scales.FindingsThis study provides a set of three parsimonious, self-reported behavioural measures that could be employed in conjunction with objective economic indicators to identify individuals who are financially ill prepared and potential candidates for delinquency. The three proposed scales achieved satisfactory levels of reliability and convergent and discriminant validity.Research limitations/implicationsThe resulting scales still need to be tested for predictive validity and in different consumer groups. The scales were validated in a single culture population (Brazil, a country that presents extraordinarily high credit card interest rates), and they should be tested cross-culturally in countries with different economic and credit policies.Originality/valueThe literature on FWB has traditionally employed objective financial indicators as an attempt to measure the concept of FWB and its elements. Self-reported behavioural measures of such constructs are scant to the point of being non-existent for some elements. This study is the first to offer scales for measuring the elements of financial preparedness for emergency, beliefs of credit limits as additional income and risky indebtedness behaviour.

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