International diversification and firm performance: a four-stage model

2016 ◽  
Vol 11 (3) ◽  
pp. 362-375 ◽  
Author(s):  
Alberto Ferraris ◽  
Stefano Bresciani ◽  
Manlio Del Giudice

Purpose The purpose of this paper is to investigate the relationship between international diversification (ID) and performance in multinational firms by proposing a new and unified theory of multinationality that incorporates, integrates and extends previous concepts and hypotheses. Design/methodology/approach The study relies on data concerning the world’s largest companies, derived from the Fortune Global 500. An OLS regression analysis has been carried out in order to test a four-stage relationship between ID and performance. Findings On a final sample of 391 multinationals, this paper provides an empirical evidence that support the existence of a four-stage theory by using a relevant sample of “top” multinational firms. Research limitations/implications This study has two main limitations: first, a single indicator was used to measure ID; second, some potential variables have had to be excluded due to data availability. Practical implications This paper offers some intriguing practical implications, as well: first, it points out to some thresholds where performances are higher at certain level of ID; second, it highlights that performance will face two kinds of decreases due to intra-regional and inter-regional liability of foreignness; finally, it individuates differences with regard to some firms’ characteristics such as home or host country’s behaviors and about the kind of industries in which they operate, as well. Originality/value This is one of the first studies that tests and finds positive evidences about a four-stage theory, regarding to the relationship between ID and performance. Moreover, it proposes other interesting results with regard to the differences between home vs host country-oriented firms and between manufacturing vs services multinational firms.

2018 ◽  
Vol 33 (4) ◽  
pp. 574-584 ◽  
Author(s):  
Anni Rajala

Purpose Relationship learning is viewed as an important factor in enhancing competitiveness and an important determinant of profitability in relationships. Prior studies have acknowledged the positive effects of interorganizational learning on performance, but the performance measures applied have varied. The purpose of this study is to examine the relationship between interorganizational learning and different types of performance. The paper also goes beyond direct effects by investigating the moderating effects of different research designs. Design/methodology/approach This paper applies a meta-analytic approach to systematically analyze 21 independent studies (N = 4,618) to reveal the relationship between interorganizational learning and performance. Findings The findings indicate that interorganizational learning is an important predictor of performance, and that the effects of interorganizational learning on performance differ in magnitude under different research conditions. Research limitations/implications The paper focuses on interorganizational learning, and during the data collection, some related topics were excluded from the data search to retain the focus on learning. Practical implications The study evinces the breadth of the field of interorganizational learning and how different research designs affect research results. Moreover, this meta-analysis indicates the need for greater clarity when defining the concepts used in studies and for definitions of the concepts applied in the field of interorganizational learning to be unified. Originality/value This study is the first to meta-analytically synthesize literature on interorganizational learning. It also illuminates new perspectives for future studies within this field.


2015 ◽  
Vol 53 (10) ◽  
pp. 2377-2389 ◽  
Author(s):  
Alexander Bruggen

Purpose – The purpose of this paper is to examine the effect of workload on quantitative and qualitative job performance. Different levels of workload can affect performance of employees, and it is important for firms to assess the effect of this in order to improve capacity decisions. The literature is not entirely clear on the relationship and calls for further empirical evidence on that matter. Design/methodology/approach – The study uses field data from a mid-sized grocery supplier. In total, 9,210 observations of 27 employees over three years and eight months are analyzed with different statistical models. Employees all work in the same department so that it is a very homogenous data set. Findings – Results show that there is an inverted U-shape relationship between workload and performance. Output of employees increases up to a certain point after which it decreases. Similarly, the quality of performance is highest under moderate levels of workload, which provides evidence against a tradeoff between quantity and quality. Research limitations/implications – The study uses a unique set of data from one firm, which limits generalizability, but adds to an important stream of literature. Practical implications – Results show how workload has a direct effect on performance. Consequently, firms need to balance the workload in order to be able to maximize the performance of their employees. Originality/value – Despite the relevance of the topic, there is hardly any empirical evidence on the relationship between workload and performance. This study thus contributes to the management literature and provides significant evidence on an inverted U-shape between workload and quantitative performance.


2019 ◽  
Vol 30 (1) ◽  
pp. 65-86 ◽  
Author(s):  
Jingya You ◽  
Yongqiang Chen ◽  
Yuanyuan Hua ◽  
Wenqian Wang

Purpose This paper aims to explain how contractual complexity, including contractual control, coordination and adaptation, makes a difference to the task and relationship conflict, and then, to investigate the moderating roles played by both, total interdependence and interdependence asymmetry, in altering the association between the two types of conflicts. Design/methodology/approach This study obtained data through a questionnaire survey in the Chinese construction industry and the final sample consisted of 232 responses. The data were analysed using hierarchy analysis using SPSS. Findings The results are as follows: first, higher contractual control and coordination reduce the level of relationship conflicts, and higher contractual coordination also reduces the level of task conflicts; second, task conflict positively affects relationship conflict; third, task conflict mediates the relationship between contractual coordination and relationship conflict; and finally, when total interdependence is higher, task conflict induces more relationship conflict. On the contrary, high interdependence asymmetry weakens the positive relationship between task and relationship conflicts. Practical implications This study highlights the importance of contracts in conflict management. The findings can guide practitioners in drafting suitable contracts to deal with task and relationship conflicts more effectively. Originality/value This study differentiates the effects of distinct components of contracts on task and relationship conflicts, and then reveals the contingent effects of interdependence on the relationship between task and relationship conflicts in inter-organisational transactions.


2015 ◽  
Vol 34 (8) ◽  
pp. 973-986 ◽  
Author(s):  
Azzouz Elhamma

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.


2017 ◽  
Vol 66 (8) ◽  
pp. 1020-1042 ◽  
Author(s):  
Marina D’Agostini ◽  
Vilmar Antonio Gonçalves Tondolo ◽  
Maria Emília Camargo ◽  
Angela Isabel dos Santos Dullius ◽  
Rosana da Rosa Portella Tondolo ◽  
...  

Purpose The purpose of this paper is to examine the relationship between sustainable operations practices (SOP) and performance. Design/methodology/approach This study was conducted through a systematic literature review followed by a meta-analysis of correlations. Findings In the results, 14 of the relationships examined showed a positive relationship and 12 the presence of moderators. The study findings indicate that contingency affects the relationship between SOPs and performance. Research limitations/implications The research presented in this paper is mainly limited to databases that were searched. Among the quantitative articles selected from the databases, many did not have the data needed to conduct the meta-analysis, which may have limited the results of this study. Practical implications Using the results of this study, practitioners can become aware of to the occurrence of moderating factors in the relationships, which can range from interference from other practices and variables to characteristics of the organization itself or the market in which organizations operate. Originality/value This study uses a multidimensional approach for both SOP and performance. This approach allowed a more complete and comprehensive result, showing how these SOPs influence the different categories of performance, expanding the understanding of the relationship between practices and performance.


2019 ◽  
Vol 39 (4) ◽  
pp. 437-451 ◽  
Author(s):  
Mohammed Aboramadan ◽  
Belal Albashiti ◽  
Hatem Alharazin ◽  
Souhaila Zaidoune

Purpose The purpose of this paper is to examine the links between organizational culture, innovation and banks’ performance in Palestine. Design/methodology/approach Data were gathered from 186 employees working in the Palestinian banking sector. The data gathered were analyzed using the PLS-SEM approach. Findings The findings of the study show that organizational culture and marketing innovation have a positive impact on banks’ performance. Moreover, it was found that marketing performance partially mediates the relationship between organizational culture and banks’ performance. Practical implications The paper may be of use for banks managers to create an organizational culture, which fosters both innovation and performance. Originality/value The paper is unique as it examines organizational culture, innovation and performance links in a non-western context.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Engin Aydoğan ◽  
Özcan Arslan

Purpose The purpose of this paper is to investigate the relationship between human resource management (HRM) practices bundles and organizational commitment, and find answers for questions on which of these bundles contribute how to the employees’ performance and loyalty according to their demographic characteristics in maritime market. Design/methodology/approach Two separate surveys were applied to 104 employees of international maritime companies. Factor and reliability analyses were carried out to ensure the surveys’ validity and reliability. Then, correlation analysis was conducted to determine whether there is a relationship between HRM practices and organizational commitment. Finally, independent groups t-test was used to determine if perceptions of employees on HRM practices and their organizational commitment vary according to their demographic characteristics. Findings Moderate positive and negative linear relationships between HRM practices bundles and organizational commitment were found. Also, significant differences between the organizational commitment levels of employees and their perceptions on the effects of HRM practices to their performance were determined. Research limitations/implications Surveys were conducted only on Turkish employees in maritime sector and companies only that published annual and social responsibility report were examined. Practical implications HR managers should pay attention on HRM practices bundles to increase the level of employee’s organizational commitment and performance. While doing this, they also should take their employees’ demographic characteristics on account. This study can give clues about management of employees with different perceptions on performance and commitment. Originality/value The authors add the literature by identifying the link between HRM practices bundles and organizational commitment. To the best of the authors’ knowledge, this is the first study, which reveals the link between HRM practices bundles and organizational commitment dimensions, separately. Also, an original new questionnaire was produced, which measures the employees’ perceptions on the effects of HRM practices to performance.


2019 ◽  
Vol 27 (5) ◽  
pp. 38-40

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 This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings Traditional ritualistic annual appraisals are no longer favored, with many companies loosening the relationship between performance ratings and pay. The social and psychological aspects of appraisals are often overlooked. A balance of informal and formal processes is important, with continual feedback and dialogue. The skillset of managers is key to ensuring employees feel satisfied with the process and view outcomes as being fair. A good employment relationship thus leads to increased employee cooperation and performance, and increased outcomes for both the individual and the organization. Originality The briefing saves busy executives 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.


2015 ◽  
Vol 47 (7) ◽  
pp. 386-393
Author(s):  
Steven H. Appelbaum ◽  
Oleksandr Kryvenko ◽  
Mauricio Rodriguez Parada ◽  
Melina Rodica Soochan ◽  
Barbara T. Shapiro

Purpose – The purpose of this paper is to explore the relationship between multiculturalism and performance, and attempt to reconcile some of the varying points of views, in order to suggest practical implications for managers in the workplace. Design/methodology/approach – A review of the literature regarding both diversity and performance was performed. Next, the focus was on the relationship specifically between racial-ethnic diversity and performance. To show the relevance of the paper, materials dedicated to Canadian population and immigration was included. Findings – It is still somewhat inconclusive whether diversity can have a definite positive or negative impact on organizational performance. The literature reviewed shows that authors have differing opinions. One element appears to be clear: diversity of itself does not necessarily bring benefit. For a diverse group to perform well, it must be well managed. Diversity remains an underused tool that managers have yet to learn to utilize. Research limitations/implications – At the time of writing, there was not a significant amount of published material on the direct relationship between multiculturalism and performance. This paper attempts to gather and make sense of the various views formalized thus far and puts forth a new question of how to turn multiculturalism in the workplace into an asset for organizations. Practical implications – Managers still do not agree on how to take full advantage of diversity. As the Canadian workforce becomes more and more diverse, so increases the importance of addressing and answering this question in practical terms. Especially facing the increased globalization of corporations, taking advantage of the untapped potential that resides in a culturally diverse work team should be at the top of every international company’s goals. Social implications – The importance of studying the relationship between multiculturalism and performance is crucial because in developed countries like Canada organizations are becoming increasingly culturally diverse. Much has been written about the effect of group diversity on conflict and creativity, on the performance of heterogeneous groups vs homogeneous groups, on organizational commitment among ethnic minorities, and on self-fulfilling performance expectations. Originality/value – This paper is a useful source for managers interested in understanding the real value of diversity in the workplace, as well as for researchers studying the relationship between corporate diversity and corporate performance.


2018 ◽  
Vol 14 (1) ◽  
pp. 213-225 ◽  
Author(s):  
Neuza Ribeiro ◽  
Daniel Gomes ◽  
Shaji Kurian

Purpose This study aims to examine the relationship between authentic leadership (AL), affective commitment and individual performance. More specifically, this study aims to understand how AL influences employees’ affective commitment, how AL influences individual performance, how affective commitment influences individual performance and how affective commitment mediates the relationship between AL and individual performance. Design/methodology/approach In total, 212 Portuguese employees participated in this study. A quantitative methodology was used. Baron and Kenny’s linear regression method and Sobel test were used to test the mediation relationship. Findings The results reveal that affective commitment mediates the relationship between AL and employees’ performance. In others words, leaders’ authenticity promotes employees’ affective commitment, which, in turn, increases their individual performance. Practical implications This research has practical implications for human resource management in organizations, particularly in selection processes and training of leaders and managers. Practitioners looking to increase employee commitment and performance can do so by augmenting the AL. Originality/value This study enriches the knowledge about the relevance of emerging areas such as AL theory and responds to the need to understand underlying mechanisms linking AL with workers’ commitment and performance (i.e. testing the construct’s nomological network).


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