Corporate foresight and its effect on innovation, strategic decision making and organizational performance (case study: Iranian banking industry)

foresight ◽  
2017 ◽  
Vol 19 (6) ◽  
pp. 559-576
Author(s):  
Mahdi Joneidi Jafari ◽  
Seyed Akbar NiliPourTabataba’i
Keyword(s):  
Decision Making ◽  
Organizational Performance ◽  
Structural Equation ◽  
Banking Industry ◽  
Strategic Decision ◽  
Equation Modeling ◽  
Strategic Decision Making ◽  
Content Type ◽  
Corporate Foresight

Purpose This paper aims to examine the capability of corporate foresight in the organizations and its impacts on innovation, quality of managers’ strategic decision-making and organizational performance in the banking industry of Iran. Design/methodology/approach In the first part, upon introducing corporate foresight from the two process and content perspectives, influential elements in this construct are discussed. Then, corporate foresight’s relationship with innovation and strategic decision-making is examined and its effect on organizational performance is analyzed within a structural model. Using interview and questionnaire, the data research were collected from the banking industry of Iran including 30 banks (state-commercial banks, specialist-state banks, interest-free loan funds and private banks). Through descriptive, inferential statistical analyses and structural equation modeling using SPSS and Smart PLS software, reliability of the measurement model with 576 samples was confirmed. Findings The results show that the corporate foresight playing three roles of initiator, strategist, and opponent affects the innovation. Moreover, the research results suggest that using the data from the foresight and identifying the weak signals, we can reduce the uncertainty and issue prior warnings in order to enhance the quality of manager’s strategic decision making and promote the organizational performance. Originality/value This paper is one of the articles from the sources of the doctoral thesis of Futures Studies as “The relationship between knowledge absorption capacity, corporate foresight and its effect on the performance of the banking industry in Iran”.

The role of heuristic-driven biases in entrepreneurial strategic decision-making: evidence from an emerging economy

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Maqsood Ahmad ◽  
Syed Zulfiqar Ali Shah ◽  
Yasar Abbass
Keyword(s):  
Decision Making ◽  
Emerging Economy ◽  
Strategic Decision ◽  
Strategic Decision Making ◽  
Decision Making Process ◽  
Strategic Decisions ◽  
Content Type ◽  
The Relationship

PurposeThis article aims to clarify the mechanism by which heuristic-driven biases influence the entrepreneurial strategic decision-making in an emerging economy.Design/methodology/approachEntrepreneurs' heuristic-driven biases have been measured using a questionnaire, comprising numerous items, including indicators of entrepreneurial strategic decision-making. To examine the relationship between heuristic-driven biases and entrepreneurial strategic decision-making process, a 5-point Likert scale questionnaire has been used to collect data from the sample of 169 entrepreneurs who operate in small- and medium-sized enterprises (SMEs). The collected data were analyzed using SPSS and Amos graphics software. Hypotheses were tested using structural equation modeling (SEM) technique.FindingsThe article provides empirical insights into the relationship between heuristic-driven biases and entrepreneurial strategic decision-making. The results suggest that heuristic-driven biases (anchoring and adjustment, representativeness, availability and overconfidence) have a markedly negative influence on the strategic decisions made by entrepreneurs in emerging markets. It means that heuristic-driven biases can impair the quality of the entrepreneurial strategic decision-making process.Practical implicationsThe article encourages entrepreneurs to avoid relying on cognitive heuristics or their feelings when making strategic decisions. It provides awareness and understanding of heuristic-driven biases in entrepreneurial strategic decisions, which could be very useful for business actors such as entrepreneurs, managers and entire organizations. Understanding regarding the role of heuristic-driven biases in entrepreneurial strategic decisions may help entrepreneurs to improve the quality of their decision-making. They can improve the quality of their decision-making by recognizing their behavioral biases and errors of judgment, to which we are all prone, resulting in a more appropriate selection of entrepreneurial opportunities.Originality/valueThe current study is the first to focus on links between heuristic-driven bias and the entrepreneurial strategic decision-making in Pakistan—an emerging economy. This article enhanced the understanding of the role that heuristic-driven bias plays in the entrepreneurial strategic decisions and more importantly, it went some way toward enhancing understanding of behavioral aspects and their influence on entrepreneurial strategic decision-making in an emerging market. It also adds to the literature in the area of entrepreneurial management specifically the role of heuristics in entrepreneurial strategic decision-making; this field is in its initial stage, even in developed countries, while, in developing countries, little work has been done.

Relational and Contractual Governance in Family Firms: Effects on Strategic Decision Making

2002 ◽  
Vol 15 (3) ◽  
pp. 205-222 ◽  
Author(s):  
Mikko Mustakallio ◽  
Erkko Autio ◽  
Shaker A. Zahra
Keyword(s):  
Decision Making ◽  
Social Control ◽  
Structural Equation ◽  
Family Firms ◽  
Strategic Decision ◽  
Equation Modeling ◽  
Strategic Decision Making ◽  
Formal Control ◽  
Governance Model ◽  
The Social

Governance of family firms differs from mainstream corporate governance in an important respect: Important owners, i.e., family members, may have multiple roles in the business. In this paper, we develop and test a model of family firm governance that incorporates both formal control and social control aspects of governance. Governance based on the formal control draws on agency theory, whereas the social control aspects draw on social theories of governance, addressing social capital embedded in relationships. Drawing on these theories, we examine the influence of different governance mechanisms on the quality of strategic decision making. The Family Business Governance Model is tested using survey data from 192 family firms in Finland. We use structural equation modeling in testing the empirical validity of the model. The empirical analysis largely supports our hypotheses on formal control and social control as well as their influences on the decision-making quality.

Mediating effects between World Games identification and licensed merchandise

2014 ◽  
Vol 24 (4) ◽  
pp. 384-398 ◽  
Author(s):  
Lee-Joy Cheng ◽  
Chin-Chia Yeh ◽  
Seng-Lee Wong
Keyword(s):  
Decision Making ◽  
Structural Equation ◽  
Perceived Quality ◽  
Equation Modeling ◽  
Content Type ◽  
Purchasing Intention ◽  
Licensed Merchandise ◽  
Decision Making Model ◽  
International Events

Purpose – The purpose of this paper is to explore consumer decision-making factors related to purchases of licensed merchandise, while focussing on how consumers’ identification with the 2009 World Games (WG), perceptions of quality and attitudes toward collecting, affect the decision-making model with regards to purchasing intention. Design/methodology/approach – The research model is based on the study of Kwak and Kang (2009), but also includes an assessment of consumers’ collecting attitudes. A purposive sampling method was adopted and data were collected from 1,985 valid samples via questionnaire surveys during the 2009 WG in Kaohsiung, Taiwan. Structural equation modeling was used to test the decision-making model presented in this study. Findings – The results reveal that consumers’ intentions with respect to purchasing licensed merchandise are influenced most by their attitudes toward collecting, followed by the perceived quality of the merchandise. The findings also suggest that the greater the perceived quality of licensed merchandise, the more positive the consumer attitude toward collecting. Lastly, the study finds no direct effect between respondent WG identification and intention to purchase licensed merchandise. Research limitations/implications – An exploratory concept proposed in this study, WG identification, is quite different from either event or place identification. In this study, due to its influence on at least two other relationships, the effects of one's attitude toward collecting prove to be much more complicated than the previous literature suggests. Since all data were collected in Taiwan, the research findings may have been influenced by particular local cultural and political factors, and therefore might not be well informed by inferences drawn from western populations. Practical implications – It was found that emphasizing the collectability of licensed merchandise is the most effective strategy for increasing consumer purchasing intention and promoting sales of merchandise at similar international events and competitions. This finding should encourage those interested in increasing consumers’ purchasing intention to pay more attention to the importance of licensed commemorative merchandise. Originality/value – Due to a lack of first-hand data on the consumption of licensed merchandise at major international events and competitions, little direct empirical research has been done in Taiwan. This study is the first attempt to explore this issue.

CRM, service quality and organizational performance in the banking industry: a comparative study of conventional and Islamic banks

2020 ◽  
Vol 38 (5) ◽  
pp. 1081-1106 ◽  
Author(s):  
Hind Lebdaoui ◽  
Youssef Chetioui
Keyword(s):  
Service Quality ◽  
Organizational Performance ◽  
Customer Service ◽  
Structural Equation ◽  
Banking Industry ◽  
Positive Impact ◽  
Equation Modeling ◽  
Islamic Banks ◽  
Content Type ◽  
Conventional And Islamic Banks

PurposeThis paper aims to examine a model that uses customer service quality as an intervening mechanism in the relationship between customer relationship management (CRM) practices and organizational performance in two different banking structures: conventional and Islamic. The study focuses on organizational and technological practices of CRM, as both have been demonstrated to be critical to CRM success.Design/methodology/approachThe analysis is based on responses from 247 managers from conventional banks and 141 managers from Islamic banks operating in Morocco using a self-administered questionnaire. The partial least squares structural equation modeling (PLS-SEM) technique is employed for data analysis.FindingsFindings demonstrate that customer service quality plays a mediating role between CRM practices (organizational and technological) and organizational performance in both conventional and Islamic banks. Our results confirm the positive impact of CRM practices on organizational performance in the two banking structures.Practical implicationsThis study enhances our understanding of how CRM practices contribute to improving customer service quality and organizational performance in both conventional and Islamic banks. Bank managers, who aim to deliver superior service quality and achieve customer satisfaction and retention, should capitalize on the benefits of implementing CRM organizational and technological practices.Originality/valueThe present paper bridges a gap pertaining to key practices and factors that impact CRM success in the banking industry. It is the first of its kind to investigate the effect of CRM practices on organizational performance with customer service quality as a mediating variable. The study also contributes to the field of CRM literature, as CRM has rarely been addressed in an Islamic banking context.

A model for examining the effects of communication on innovation performance: emphasis on the intermediary role of strategic decision-making speed

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Fariborz Rahimnia ◽  
Homa Molavi
Keyword(s):  
Decision Making ◽  
Data Analysis ◽  
Innovation Performance ◽  
Strategic Decision ◽  
Equation Modeling ◽  
Strategic Decision Making ◽  
Decision Making Process ◽  
Content Type ◽  
Intermediary Role

PurposeIn recent years, rapid changes in the economic situation and high levels of competition have increased the need for innovation in order to gain success. In such circumstances, organizational strategists are considered as critical in determining the success or failure of organizations. Using innovation in various aspects of organizational operations is the most important factor to achieve sustainable competitive advantages in industry. As a result, analyzing the effective factors involved in promoting the efficiency of innovative activities in the organization and ways of achieving it are of utmost importance. Thus, this paper examines the relationship between communication and innovation performance with respect to the intermediary role of strategic decision-making process speed.Design/methodology/approachThe present study has used quantitative methodology and questionnaire to collect data from 450 managers and members who are involved in the decision-making process in 150 companies operating in the food-industry sector. Data analysis was done by using structural equation modeling and AMOS software.FindingsThe results of the data analysis suggest that communication and strategic decision-making speed possess a significant positive impact on innovation performance. Also, strategic decision-making speed has sufficiently played the intermediary role between communication and innovation performance.Originality/valueThis survey specifies the effects of communication on the success of making fast strategic decision and innovation performance which aid Iranian food companies to tackle one of the managerial challenges: postponing strategic decisions due to lack of efficient communication to get information. In addition, to the best of the authors' knowledge, this essay is a first in Iran.

The indirect effects of performance measurement system and organizational ambidexterity on performance

2018 ◽  
Vol 24 (5) ◽  
pp. 1176-1199 ◽  
Author(s):  
Elizandra Severgnini ◽  
Valter Afonso Vieira ◽  
Edwin Vladimir Cardoza Galdamez
Keyword(s):  
Decision Making ◽  
Organizational Performance ◽  
Three Dimensions ◽  
Strategic Decision ◽  
Strategic Decision Making ◽  
Organizational Ambidexterity ◽  
Exploration And Exploitation ◽  
Content Type ◽  
Software Companies ◽  
Attention Focus

Purpose Performance measurement systems (PMSs) have long been used for monitoring and improving administrative performance. In parallel, organizational ambidexterity refers to firms that manage different organizational functions and various demands to generate performance. The purpose of this paper is to propose that three dimensions of PMS increase organizational ambidexterity and consequently they influence organizational performance. In this framework, organizational ambidexterity mediates the relationships between three dimensions of PMS and organizational performance. Design/methodology/approach The data were collected through a structured questionnaire sent to Brazilian software companies. Owners, directors, project managers and responsible for company strategy answered the questionnaire. The final sample was 227 Brazilian software firms that answered according to their PMSs and organizational ambidexterity. Findings The results provide four main findings. First, the three dimensions of PMS, namely—attention focus, legitimization and strategic decision-making—influenced organizational ambidexterity. Second, organizational ambidexterity had a major effect on organizational performance. Third, organizational ambidexterity mediated the indirect effects of attention focus, legitimization and strategic decision-making on organizational performance. Fourth, exploration and exploitation—two dimensions of organizational ambidexterity—mediated the indirect effect of the abovementioned PMS dimensions on organizational performance. Research limitations/implications Although there are different dimensions of organizational ambidexterity, this paper is limited to two of the most used ones: exploitation and exploration. In addition, the results were limited to subjective—in contrast to objective—performance measures. Practical implications Software companies can use PMS for attention focus, legitimization of firm’s choices and strategic decision-making to increase their exploration and exploitation capabilities. Moreover, software companies can use strategic decision-making to control existing strategies and establish new strategies for legitimizing ambidextrous choices and thereby support their decision-making process. Originality/value The data showed that not only organizational ambidexterity mediates the effects of the three dimensions of PMS use on performance, but also exploration and exploitation.

An institutional view of the communication flows between relation-based and rule-based countries

2017 ◽  
Vol 12 (1) ◽  
pp. 79-92 ◽  
Author(s):  
Sandra Simas Graca ◽  
Patricia M. Doney ◽  
James M. Barry
Keyword(s):  
Decision Making ◽  
Emerging Market ◽  
Strategic Decision ◽  
Equation Modeling ◽  
Strategic Decision Making ◽  
Supplier Relationships ◽  
Rule Based ◽  
Content Type ◽  
Strategic Cooperation ◽  
Institutional View

Purpose The purpose of this paper is to examine the strategic decision-making process regarding communication flows and trust and their impact on firm cooperation in the context of buyer-supplier relationships in rule-based vs relation-based countries. An institutional view is explored to demonstrate how informal institutions shape a firm’s strategic decision making in the internationalization process. Design/methodology/approach A conceptual model and accompanying research hypotheses are tested on data from a survey of 169 US and 110 Brazilian buyers. Structural equation modeling is used to test the hypotheses. Findings Results suggest that the pattern of flows of communication on building trust and increasing strategic cooperation is based upon the governance of the individual’s country of origin. Quality communication is found to have a greater impact on trust in the USA, while two-way communication is the factor with the greatest effect on trust in Brazil. Frequency of communication and socialization are also found to have indirect, but important distinct roles in the flows of communication in both countries. Trust is also found to be a strong predictor of strategic cooperation. Practical implications Results provide insight into what patterns of communication flows are most influential in increasing a buyer’s trust in a supplier, so that suppliers can better formulate strategies to enter overseas markets. Originality/value This study extends the communication, trust, and cooperation literature to the context of buyer-supplier relationships in distinct county settings. Comparisons are made between one developed country characterized by rule-based governance, with a low-context style of communication and high country trust and one emerging market characterized by relation-based governance, with a high-context style of communication and low country trust.

On the relationship between purchasing integration and purchasing decision-making speed

2015 ◽  
Vol 45 (3) ◽  
pp. 214-236 ◽  
Author(s):  
Lutz Kaufmann ◽  
Julia Gaeckler
Keyword(s):  
Decision Making ◽  
Structural Equation ◽  
Strong Support ◽  
Mediating Effect ◽  
Strategic Decision ◽  
Equation Modeling ◽  
Content Type ◽  
Purchasing Decision ◽  
Strategic Purchasing ◽  
The Relationship

Purpose – First, this study expands knowledge on the strategic decision process dimension decision-making speed by analyzing decision-making speed and two possible antecedents in a purchasing context. Second, it takes an additional step toward clarifying the relationship between strategic and lateral integration. Specifically, the purpose of this paper is to analyze the potential mediating effect of lateral purchasing integration on the relationship between strategic purchasing integration and purchasing decision-making speed. Design/methodology/approach – This research analyzes survey data of 152 firms from Austria, Germany, and Switzerland using covariance-based structural equation modeling. Findings – The results of the structural equation model provide strong support for the hypothesized relationships. Strategic purchasing integration drives lateral purchasing integration, which in turn positively influences purchasing decision-making speed. Research limitations/implications – This study focusses solely on internal types of integration. A logical next step would be to further enrich the model by including external dimensions, such as supplier or customer integration. Practical implications – This study should help managers gain a better understanding of the relationship between strategic and lateral purchasing integration, highlighting their positive impact on decision-making speed. Decision-making speed is particularly important for companies operating in volatile markets and time-constrained business environments. Originality/value – This study offers new insights into the theoretical and empirical connection between intra-organizational purchasing integration, unpacked as strategic purchasing integration and lateral purchasing integration, and purchasing decision-making speed. Furthermore, it offers insights into decision-making speed in a purchasing context.

A study on top managers from a resource-based perspective

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ya-Ti Hsu ◽  
Kuo-Chien Chang
Keyword(s):  
Decision Making ◽  
Transformational Leadership ◽  
Firm Performance ◽  
Entrepreneurial Orientation ◽  
Strategic Decision ◽  
Equation Modeling ◽  
Strategic Decision Making ◽  
Content Type ◽  
Top Managers ◽  
Inspirational Motivation

Purpose This study aims to apply the resource-based and upper-echelons perspectives to integrate concepts of strategic decision-making (i.e. speed and quality) and transformational leadership behavior (i.e. inspirational motivation, intellectual stimulation, individualized consideration and idealized influence) to examine how these resources are influenced by the characteristics of top managers (i.e. demographic backgrounds and entrepreneurial orientation) to affect firm performance. Design/methodology/approach Using evidence from a sample of 111 top managers from different firms in Taiwan, this research examined the relationships among the selected variables using two versions of the designed questionnaire: one for the leader, and the other for the followers. Confirmatory factor analysis and structural equation modeling were used to analyze the data. Findings The findings reveal the following: the entrepreneurial orientation of top managers does affect their leadership style, which affects firm performance; if top managers display traits of transformational leadership, then firm performance will be higher, likely because transformational leaders tend to make high-quality decisions and strategic decision-making speed was influenced by the experience of top managers and the inspirational motivation provided by transformational leadership. Originality/value This study makes three specific contributions: improving the limitations of demographics-based top-management studies by investigating both demographics and psychological characteristics; advancing research on the relationships between entrepreneurial orientation and performance by integrating transformational leadership behaviors and examining the proposed research model from a resource-based perspective.

The Dubai tennis ball machine

2011 ◽  
Vol 1 (1) ◽  
pp. 1-3
Author(s):  
Zeenath Reza Khan
Keyword(s):  
Decision Making ◽  
Information Technology ◽  
United Arab Emirates ◽  
Subject Area ◽  
Strategic Decision ◽  
Strategic Decision Making ◽  
Tennis Ball ◽  
Content Type ◽  
The Impact

Subject area Ethics in IT, community informatics, management. Study level/applicability Undergraduate and postgraduate information technology and citizens' rights, strategic decision making. Case overview This case spotlights Athlete Sports in Dubai, United Arab Emirates (UAE). It focuses on the malfunction of the company's equipment that is rented from ABC Sports Equipment. Athlete Sports has been in the UAE over a decade and has positioned itself fairly at the top due to its qualified coaches and quality of facilities it provides. The case highlights the company's transition from owning equipment to leasing equipment that increases profits. However, it also sheds light on ABC Sports' venture into code reusability in order to upgrade equipments faster. The case looks closely at the ultimate consequences of ABC Sports' practice and the impact it has on Athlete's Sports' clients and the subsequent decisions the managers are expected to make. Expected learning outcomes This case can be used to teach strategic decision making, and ethics in information technology. Supplementary materials A teaching note is available on request.

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