Moderating effects orientation and innovation strategy on the effect of uncertainty on the performance of business environment

2017 ◽  
Vol 59 (6) ◽  
pp. 1211-1219 ◽  
Author(s):  
Adji Achmad Rinaldo Fernandes ◽  
Solimun
Keyword(s):  
Business Performance ◽  
Business Models ◽  
Business Environment ◽  
Moderating Effect ◽  
Strategic Orientation ◽  
Civil Aviation ◽  
Aviation Industry ◽  
Content Type ◽  
A Company

Purpose This research aims to examine the moderating effect of strategic orientation on the effect of environmental uncertainties on business performance and the moderating effect of innovations on the effect of environmental uncertainties on performance of the business in the aviation industry in Indonesia. Design/methodology/approach Research data were collected in stages by means of interviews with corporate leaders of Indonesian airlines and branch managers of several airports, as well as with the Directorate of Civil Aviation as the regulator. A pre-test and focus group discussion (FGD) were conducted to directly determine the questionnaire aspects of the research object, following which an immediate revision was made to the questionnaire. The data from the survey used in each variable were obtained from the mail questionnaire survey. The data collected using the survey are the main data used in the present study. Findings The model of environment–strategy–performance (ESP) can work well in improving performance if supported by innovations. These findings deepen the ESP paradigm in the aviation industry (Miles and Snow, 1978; Segev 1987; Covin and Slevin, 1989; Miller and Shamsie, 1996) that during conditions of high environmental uncertainties, strategic orientation, rather than a single response, will be effective if supported by innovations that provide the strategy with flexibility. The initial implications of these modeling results generate the findings that the effect of environmental uncertainties in the aviation industry (classified as strictly regulated) on performance of a company is largely determined by the direction of the strategic orientation and the innovation level. Research limitations/implications Interactions between innovations and environmental uncertainties have a significant negative effect on the achievement of business performance of the branches with a coefficient of 0.02 and a t-value of 2.00, meaning that the innovation level of a branch has an increasingly stronger influence on the business performance of the branch in the uncertain environment with limitations or underestimated by the branch manager or the innovation level of the branch is not supported with airport facilities and services, which means that the provision of airport facilities and services is inversely proportional to the needs of the airline branches. In other words, the variable “innovations” is a moderating variable for the effect of environmental uncertainties on business performance. Practical implications The results of the modeling performed in this research also show that innovations play a major role in the implementation of the ESP model (Blumentritt and Danis, 2006). The empirical phenomena and descriptive analysis results suggest that the Indonesian airlines which have been quite successful and have demonstrated an above-average performance possess higher levels of innovations. This finding corroborates that of previous studies that environmental uncertainties and direction of strategic orientation will determine the ability of a company to overcome the barriers to innovations, by maximizing innovative resources in achieving the target of innovations (Manu, 1992; O’Regan and Ghobadian, 2005; Hult et al., 2003), and more specifically, it indicates that strategic orientation that is prospective in nature leads to a high level of innovations (Salavou et al., 2004). Social implications The research findings indicate that innovations have a central role in the ESP models and are able to offer a new concept as a modification of the ESP model which in the study is called ESIP. The role of innovations in the ESIP model puts innovations as a variable moderating the effect of environmental uncertainties on performance and the effect of strategic orientation on performance. Moreover, based on the summary of the results for the analysis of the ESIP model, the following can be explained: first, environmental uncertainties have a significant and positive effect on the innovation level or the higher the level of environmental uncertainties, the more is the number of the innovations that an Indonesian airline branch creates. External environmental conditions that are likely to be complex and dynamic found in the area of operations make the branch management more able to identify barriers to innovations and manage resources to be more creative and productive for the attainment of the targets of innovations. Originality/value Innovations in business models as a new effort in improvisation specific to the business stage of the basic model (not very valuable) become more advanced business processes to produce products that are more valuable for consumers, at a more efficient cost with better profitability (Chesbrough, 2007b). So far, research on the role of innovations in response to environmental uncertainties and implementation of strategies to improve the performance of the ESP model is still done partially, so that there is no comprehensive model to describe the role of innovations in this ESP model, or let us say that a gap exists between theories and opportunities to conduct further research on the role of innovations in the ESP model.

The mediating effect of strategic orientation and innovations on the effect of environmental uncertainties on the performance of business in the Indonesian aviation industry

2017 ◽  
Vol 59 (6) ◽  
pp. 1269-1278 ◽  
Author(s):  
Adji Achmad Rinaldo Fernandes ◽  
Solimun
Keyword(s):  
Business Performance ◽  
Business Models ◽  
Evolutionary Economics ◽  
Strategic Orientation ◽  
Mediating Effect ◽  
Aviation Industry ◽  
Content Type ◽  
Industrial Environment

Purpose This study aims to (1) examine the mediating effect of strategic orientation on the effect of environmental uncertainties on business performance, and (2) examine the mediating effect of innovations on the effect of environmental uncertainties on performance of the business in the aviation industry in Indonesia. Design/methodology/approach The research design was conducted through a survey, and the testing form was carried out using “Relationship Causal Studies” or a study to analyze the causality among environmental uncertainties, strategic orientation, innovations and performance of branches/stations of airlines in the Indonesian aviation industry. The sample was selected by determining the number of branches/stations of the Indonesian airlines to be selected into the sample, then more than one unit managers were selected as respondents representing their respective branches/stations. The number of the target sample in this study was 250 branches. Techniques used to address the hypotheses of the present study were Descriptive Analysis and Structural Model Analysis. The inferential statistical analysis focuses on the subject of the analysis and data interpretation to draw conclusions. Findings These research findings provide a contextual overview of the aviation industry in Indonesia that activities to make innovations in airline branches play a vital role in encouraging business performance. Moreover, the analysis shows that the more innovative a branch the better its business performance. This corroborates the finding (Spacapan and Bastic, 2007; Talke, 2007) that being highly innovative can ensure sustainable and long-term business performance. Research limitations/implications The findings of this research suggest that innovations mediate the effect of environmental uncertainties on business performance. These findings corroborate the results of previous studies that suitability between strategic orientation and innovations of a company in response to environmental uncertainties will affect performance of the company (Li and Gima, 2001; Manu, 1992). These findings also strengthen the view that companies with a higher level of innovations (innovative) have better business performance and competitive advantages (Kessler and Chakrabarty, 1996; Salavou et al., 2004; Spacapan and Bastic, 2007). Furthermore, based on findings, it can be interpreted that management that is able to overcome barriers to innovations, maximize innovation resources and achieve the target of innovations in the form of creation of better products/services will have better performance. The ability of the management to identify and overcome barriers to innovations and maximize the sources of innovation will generate products or services that can be accepted by the customers and eventually these products and services will be able to compete with better business performance (Blumentritt and Danis, 2006). Practical implications Findings of this research indicate the positive and significant mediating effect between environmental uncertainties on business performance, through the mediation of innovations, competitive conditions of the industrial environment which can encourage organizations to evolutionarily be more innovative in managing business to compete in the long term (Franke, 2007). This is also consistent with the theory of evolutionary economics (Nelson and Winter, 2000) that the old strategy may not suit the changes in the environment, and therefore companies should continue to seek new breakthroughs with persistent improvement and innovations. Social implications Dynamic and competitive conditions of the industrial environment require organizations to more intensively explore sources (capabilities) of innovations and accelerate generation of the innovations (Franke, 2007; Berry et al., 2006; Dobni, 2006; Davila et al., 2006; Spacapan and Bastic, 2007). Contextually, it appears that the competitive conditions of the aviation industry in either the short term or in the long term require business actors to be more innovative and to survive (Franke, 2007). Originality/value Innovations in business models as a new effort in improvisation specific to the business stage of the basic model (not very valuable) become more advanced business processes to produce products that are more valuable for consumers, at a more efficient cost with better profitability (Chesbrough, 2007b). So far, research on the role of innovations in response to environmental uncertainties and implementation of strategies to improve the performance of the environment-strategy-performance (ESP) model is still done partially so that there is no comprehensive model to describe the role of innovations in this ESP model, or let us say that a gap between theories and opportunities to do further research on the role of innovations in the ESP model exists.

scholarly journals Servitization strategies from customers’ perspective: the moderating role of co-creation

2019 ◽  
Vol 34 (3) ◽  
pp. 628-642 ◽  
Author(s):  
José L. Ruiz-Alba ◽  
Anabela Soares ◽  
Miguel A. Rodríguez-Molina ◽  
Dolores M. Frías-Jamilena
Keyword(s):  
Structural Equation ◽  
Business Models ◽  
Service Providers ◽  
Moderating Effect ◽  
Mediating Effect ◽  
Content Type ◽  
The Impact ◽  
Moderating Role ◽  
Different Levels

Purpose This paper aims to investigate the moderating role of co-creation in the implementation of servitization strategies in the pharmaceutical industry in a business-to-business (B-to-B) context. More specifically, this investigation explores the impact of different levels of services (base, intermediate and advanced) on servitization and on performance by using co-creation as a moderating factor. Design/methodology/approach A research framework was developed and empirically tested in the pharmaceutical sector. Data collection was conducted through the online distribution of questionnaires. The final sample included 219 pharmacy stores, and the data were analysed using structural equation modelling. Findings Main findings suggest that when the level of co-creation of the design of services is high, there are significant effects of servitization on firm performance. The moderating effect of co-creation is illustrated in regard to intermediate and advanced services, but results referring to the impact of intermediate services on servitization appear non-significant with a low degree of co-creation. No significant effects could be found for the impact of base services on performance and servitization for both high and low degrees of co-creation. Findings show an impact of advanced services on performance through the mediating effect of servitization when the degree of co-creation is high. Originality/value Most research concerning servitization has been done from the perspective of manufacturers and service providers. This study adds value to the literature because it was designed from a customer’s perspective. Moreover, it contributes towards the conceptualization of the servitization research strategy and business models in a B2B context. This is accomplished through the investigation of the moderating effect of co-creation on the impact of the different levels of services on servitization and on performance.

Marketing orientation, strategic orientation and their synergistic impact on business performance

2016 ◽  
Vol 18 (1) ◽  
pp. 27-52 ◽  
Author(s):  
Hardeep Chahal ◽  
R.C. Dangwal ◽  
Swati Raina
Keyword(s):  
Business Performance ◽  
Service Sector ◽  
Positive Impact ◽  
Strategic Orientation ◽  
North India ◽  
Strong Impact ◽  
Integrated Marketing ◽  
Content Type ◽  
Marketing Orientation

Purpose The main purpose of this study is to examine the synergistic impact of marketing orientation (MO) and strategic orientation (SO) on business performance (BP) and to explore role of entrepreneurial qualification (moderating) and SO (mediating) in MO and BP relationship. Design/methodology/approach Nine hundred small and medium-sized enterprises (SMEs) owners/managers operating in Jammu District, North India, are contacted during October 2013 to February 2014. Findings The study identifies and confirms MO (marketing strategy, customer philosophy, operational efficiency and integrated marketing) and SO (defensive, proactive, analytical and risk-averse) as multi-dimensional constructs. Although both orientations have positive impact on SMEs performance, however, their synergistic impact is weak. In addition, the study also reveals that MO has direct and indirect impact (through SO) on BP. Lastly, there exists moderating role of entrepreneurial qualification between MO and SO. Research limitations/implications The major limitation of the study is the focus on SMEs. Based on the strength of the relationships among the dimensions and sub-dimensions of the MO, SO and BP, replication and validation of research in service sector across the country and globe is required to generalise the results and to develop stronger theory. Originality/value This is the first empirical study to investigate the synergistic impact of two well-established notions – MO and SO. It provides empirical evidence for the claim that synergistic impact of marketing and SO on BP is weak, unlike their respective strong impact on BP. This study also clarifies roles of entrepreneurial qualification and SO in MO and BP relationship.

Strategic Orientation Based on Business Environment and Entreprenurs Behavior as Well as its Effects on SME Performance and Competitiveness in Bali Indonesia

2018 ◽  
Vol 9 (02) ◽  
Author(s):  
I Nengah Suardhika ◽  
I Gusti Ayu Wirati Adriati
Keyword(s):  
Business Performance ◽  
Study Finding ◽  
Business Environment ◽  
Strategic Orientation ◽  
Business Strategies ◽  
Testing Hypotheses ◽  
Entrepreneurial Behaviour ◽  
Significant Difference ◽  
Management Functions

The purpose of this study is to test and to analyze the role of the external business environment and internal supports entrepreneurial behaviour in improving the implementation of strategies oriented to improve the performance of the business that drives the creation of high competitiveness in export-oriented SMEs at Bali.Data were collected through a questionnaire involving 175 export-oriented SMEs in Bali, but 138 questionnaires that used for the analysis. Non-response bias test showed there is no significant difference between the questionnaires back in time with the late (less than one month), so the data can be used for further analysis. Prior to testing hypotheses with path analysis through software programmed AMOS 7.This study finding that the existence of export-oriented SMEs in Bali has not been proven to align the orientation strategy with the business environment both external and internal to optimize business performance. However, adjustment activities with the business environment for business strategies appropriate to support entrepreneurial behaviours in carrying out management functions can create a superior competitive advantage for export-oriented SMEs in Bali. 

The role of dialogue between executives and ground-level employees mediated by MACS

2014 ◽  
Vol 9 (2) ◽  
pp. 189-212 ◽  
Author(s):  
Ülle Pärl
Keyword(s):  
Control Function ◽  
Ground Level ◽  
Business Environment ◽  
Open Communication ◽  
Content Type ◽  
Lack Of Information ◽  
And Control ◽  
A Company

Purpose – The purpose is to understand the manner in which companies use management accounting and control systems (MACS) for dialogical communication in assisting collaboration and the coordination of actions. The task of the research is to answer the following questions: why is it important to support dialogical communication by MACS in the organisation? Who are the salient stakeholder(s) in a company implementing collaboration and cooperation? How does one analyse and understand the role of MACS as a medium for supporting dialogical communication? Which aspects of dialogical communication are (not) fulfilled in the implementation of MACS and why? Design/methodology/approach – This study's philosophical assumptions are based on relational constructivism as a social science perspective. This study uses a participative action and observation case study as its methodology. Findings – Based on this case study, it can be concluded that most of the assumptions that dialogue could take place were fulfilled in departments in need of changes for competition and economic reasons. In the departments that did not need changes, assumptions of mutual openness, mutual confirmation and non-manipulation were not fulfilled – information from MACS was hidden and censored. The open dialogue by MACS between ground and senior groups was prevented resulting in a lack of information on different practices at the organisational level. One assumption that was problematic even in departments in need of changes was the assumption of non-evaluation. There is a paradox or contradiction between the contemporary business environment needing innovativeness and creativity, which means free and open communication without evaluation, and the coordination and control function which is a common part of MACS. Research limitations/implications – In this study, the data collection, documentation and analysis were carefully conducted and several methods applied to deal with possible bias. Nevertheless, the problem of the observer bias cannot be entirely eliminated since an individual researcher can never be separated from his or her background, philosophical views and experiences. Practical implications – The paper makes a strong practical contribution. Based on this case study, it has been demonstrated that MACS could be a medium to support dialogue between senior and ground levels if: senior management sees the need for dialogue between organisational members; management and other organisational members support and believe in dialogue which could be mediated by MACS. Originality/value – The conceptual novelty of the research lies in tying the concept of dialogue in the environment of stakeholder capitalism with the MACS framework. The contribution of this research is to shed more light on the role of MACS as one option of mediums for supporting dialogue between top and ground-level managers.

Fake it or make it: employee well-being in emotional work settings

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Poonam Mehta
Keyword(s):  
Job Satisfaction ◽  
Work Engagement ◽  
Well Being ◽  
Civil Aviation ◽  
Aviation Industry ◽  
Comprehensive Model ◽  
Content Type ◽  
Work Settings ◽  
Emotional Work

PurposeThe objective of the present study is to measure the well-being of employees who are engaged in frontline roles and actively engrossed in frequent regulation and management of emotions while performing interpersonal interactions. The study has conceptualised the comprehensive model to measure employee well-being with three work-related dimensions, namely work engagement, burnout and job satisfaction in emotional work settings.Design/methodology/approachThe study has been conducted on employees of the civil aviation industry in North India working on various frontline profiles. Data have been collected from 600 employees through a pretested questionnaire, and structural equation modelling (SEM) has been performed to test the hypothesis.FindingsThe findings of the study have revealed that all three dimensions, namely work engagement, burnout and job satisfaction are statistically significant measures of employee well-being in emotional work settings. Also, the study has determined that employees are highly satisfied and engaged at work despite having a feeling of burnout.Research limitations/implicationsThe study has enriched the literature by presenting and analysing a comprehensive model of employee well-being in emotional work settings of the civil aviation industry.Practical implicationsThe study will aid the various service industries in the framing of the intervention and training programs, which would help in promoting the well-being of employees who are specifically engaged in emotional work.Social implicationsThe study is very substantial in offering various parameters over which national well-being policies for individuals can be framed.Originality/valuePriorly, very few studies have attempted to recognise the role of the aforementioned variables in emotional work settings in a comprehensive manner. Further, the study has emphasised the unrecognised role of job satisfaction and work engagement where burnout is prevailing due to the presence of high emotional job demands.

Understanding the rise of African business

2014 ◽  
Vol 5 (3) ◽  
pp. 249-268 ◽  
Author(s):  
Kaja Tvedten ◽  
Michael Wendelboe Hansen ◽  
Søren Jeppesen
Keyword(s):  
Literature Review ◽  
Business Performance ◽  
Analytical Framework ◽  
Business Environment ◽  
Future Research ◽  
Enterprise Development ◽  
Content Type ◽  
Private Sector Development ◽  
Data Limitations

Purpose – In light of recent enthusiasm over African private sector development, the purpose of this paper is to review the business literature on African enterprise development with a view of identifying lacunas in the literature and of developing an analytical framework that may guide future research on this issue. Design/methodology/approach – The paper provides a review of the extant literature on African enterprise development by juxtaposing the traditional pessimistic view of African business performance with more recent, optimistic accounts. Based on the literature review, lacunas in the literature are identified and an integrative framework for analysing African enterprise development is developed. The framework is used to provide an overview of the received literature on African enterprise development, to identify voids and lacunas and to identify new research agendas. Findings – While a growing number of studies suggest profound improvements in the performance of African enterprises, data limitations, conceptual ambiguities and absence of comprehensive studies still cautions against sweeping generalizations. The paper reviews the literature on factors shaping the performance of African enterprises, observing that while much research is focusing on the role of the African business environments for enterprise development, much less attention has been devoted to the role of firm-specific capabilities, strategies and management. The paper concludes by advocating a contingency approach to research on African enterprise development that emphasizes the interplay between firm-specific factors and the specificities of the African business environment. Originality/value – The paper provides a comprehensive literature review on African enterprise development and presents a novel framework for understanding African enterprise development from a business perspective.

The strategic importance of tacit knowledge management activities in construction

2010 ◽  
Vol 10 (2) ◽  
pp. 138-163 ◽  
Author(s):  
L. Chen ◽  
Sherif Mohamed
Keyword(s):  
Knowledge Management ◽  
Tacit Knowledge ◽  
Business Performance ◽  
Explicit Knowledge ◽  
Business Environment ◽  
Professional Staff ◽  
Sampling Frame ◽  
Content Type ◽  
Strategic Role

PurposeTacit knowledge is perceived as the most strategically important resource of the construction organisation, and the only renewable and sustainable base for its activities and competitiveness. Knowledge management (KM) activities that deal with tacit knowledge are essential in helping an organisation to achieve its long‐term organisational objectives. The purpose of this paper is to provide empirical evidence for the stronger strategic role of tacit KM in comparison to explicit KM.Design/methodology/approachA questionnaire survey was administered in 2005 to a sample of construction contractors operating in Hong Kong to elicit opinions on the internal business environment, intensity of KM activities as executed by targeted organisations, and contribution of these activities to business performance (BP). A total of 149 usable responses were received from 99 organisations representing about 38 per cent of the sampling frame. The statistical analyses helped to map the reported KM activities into two groups that, respectively, deal with tacit and explicit knowledge. The sensitivity to variations of organisational policies and strength of association with BP in relation to the two groups of KM activities were also compared empirically. A total of 15 interviews with the managerial and professional staff of leading contractors was undertaken to provide insightful narratives of KM implementations.FindingsThe effective implementation of organisational policies, such as encouraging innovations and strengthening strategic guidance for KM, would facilitate human interactions of tacit KM. Higher intensity of activities in managing tacit knowledge would ultimately help the organisations to achieve economic gain in the long run.Originality/valueThe stronger strategic role of tacit KM is empirically investigated and established within the context of construction organisations.

Promoting strategic performance through strategic orientation and strategic renewal

2019 ◽  
Vol 58 (2) ◽  
pp. 376-392 ◽  
Author(s):  
Hassan Ahmed Shah ◽  
Muhammad Yasir ◽  
Abdul Majid ◽  
Muhammad Yasir ◽  
Asad Javed
Keyword(s):  
Positive Impact ◽  
Moderated Mediation ◽  
Strategic Orientation ◽  
Mediation Model ◽  
Content Type ◽  
Strategic Performance ◽  
Strategic Renewal ◽  
Mediating Role ◽  
Moderated Mediation Model

Purpose The purpose of this paper is to explore the ways in which strategic orientation (SO) and strategic renewal (SR) could create the possibility for improving strategic performance (SP). The indirect effect of SO was also tested in this study. Furthermore, by using the moderated mediation model, the authors also investigated the moderating role of organizational ambidexterity (OA). Design/methodology/approach The results of this cross-sectional study are based on a survey conducted on 1,430 owner/managers of SMEs. To analyze the relationship among variables, this study used descriptive, correlation and hierarchical multiple regression approach. Findings Results revealed that SO positively affects SR and SP in SMEs. Furthermore, the mediating role of SR between the relationships of SO and SP was also confirmed. Moreover, OA strengthens the connection between SO, SR and SP. Practical implications The current study provides new insights for strategic planning and management by focusing on SO along with its different dimensions. Therefore, it provides new guidelines and a roadmap that would be helpful in achieving the objectives of SP. Originality/value The study makes significant contributions to the extant literature by adding new knowledge about the positive impact of SO on SP. Moreover, with the analysis of mediating role of SR in this relationship, the study has made significant addition to the existing literature on SP. Furthermore, moderated mediation model adds value to the existing body of knowledge.

How does renqing influence purchase intentions in the Chinese business-to-business context?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xun Zhang ◽  
Biao Xu ◽  
Jun Wu
Keyword(s):  
Positive Relationship ◽  
Purchase Intentions ◽  
Moderating Effect ◽  
Content Type ◽  
Mediating Role ◽  
Chinese Business ◽  
The Relationship ◽  
Business To Business ◽  
Positive Effect

Purpose This study aims to examine the relationship between renqing and purchase intentions and the mechanism of its impact in the Chinese business-to-business (B2B) context. Design/methodology/approach Renqing in China has played an important role in business relationships and has been receiving increased attention in both practice and theory. However, little is known about whether it can influence purchase intentions in a rational B2B condition. This research aims to examine the relationship between renqing and purchase intentions and the mechanism of its impact in the Chinese B2B context. Based on a survey of 1,010 industry buyers from 468 Chinese downstream buyer companies, the empirical findings indicate a positive relationship between renqing and purchase intentions and the mediating role of long-term orientation (LTO) for increasing purchase intentions. In addition, this study also finds that product involvement (PI) has a negative moderating effect on the relationship between renqing and purchase intentions, which means that renqing has a big positive effect on purchase intentions in low PI conditions. The results highlight several implications for B2B companies that sell products to Chinese enterprises. Findings The empirical findings indicate a positive relationship between renqing and purchase intentions and the mediating role of LTO for increasing purchase intentions. In addition, this study also finds that PI has a negative moderating effect on the relationship between renqing and purchase intentions, which means that renqing has a big positive effect on purchase intentions in low PI conditions. Originality/value First of all, by answering the research question, this study shows that renqing has a positive effect on purchase intentions in Chinese B2B context. Second, this study elucidates the influence mechanism of renqing on purchase intention and identifies the mediating effect of LTO and the moderating effect of PI.

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