Impact of organizational dynamic capability on international expansion and the moderating role of environmental dynamism

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sheshadri Chatterjee ◽  
Ranjan Chaudhuri ◽  
Demetris Vrontis ◽  
Alkis Thrassou
Keyword(s):  
Theoretical Model ◽  
International Business ◽  
Business Strategy ◽  
Dynamic Capability ◽  
International Expansion ◽  
Environmental Dynamism ◽  
Content Type ◽  
Moderating Role ◽  
International Business Strategy

Purpose The purpose of this study is to examine the impact of dynamic capability (DC) of organizations on international expansion and further investigate the moderating role of environmental dynamism in the same context. Design/methodology/approach Based on the dynamic capability view (DCV) theory and related literature on international business strategy, a theoretical model is developed. This model is subsequently validated with the structural equation modelling technique through a survey of 324 respondents from Indian organizations. The study also examines the moderating impacts using the multigroup analysis method. Findings The study finds that organizations’ sensing, seizing and transformational capabilities impact positively and significantly on international marketing capability, as well as on technological innovation capability, which positively and significantly impacts organizations’ international expansion ability. The study also finds that there is a significant moderating impact of environmental dynamism on organizations’ international expansion. Research limitations/implications This study has provided a unique theoretical model which can explain the factors impacting organizations’ ability toward international expansion. The study also provides vital insights and directions to practitioners, researchers and academicians on the international business strategy for the expansion of organizations. The theoretical model, however, cannot be generalized, as data was taken only from Indian firms. Originality/value The study adds to the body of knowledge of international business strategy, international marketing strategy and technological innovation, adding to the scant research on the relationship between organizations’ DC and the international expansion strategy through a unique and tested model with an explanative power of 73%.

Small and medium enterprises’ internationalisation and business strategy: some evidence from firms located in an emerging market

2014 ◽  
Vol 8 (2) ◽  
pp. 168-186 ◽  
Author(s):  
Syed Zamberi Ahmad
Keyword(s):  
International Business ◽  
Business Strategy ◽  
Qualitative Data ◽  
Small And Medium Enterprises ◽  
Emerging Market ◽  
Peninsular Malaysia ◽  
International Expansion ◽  
Content Type ◽  
The Government ◽  
Medium Enterprises

Purpose – The purpose of this paper is to investigate the international business strategy, key driving factors and the major barriers that may hinder the internationalisation progress of Malaysian small and medium-sized enterprises (SMEs). Design/methodology/approach – Based on the aims of the study, the paper encompasses both quantitative and qualitative data. For quantitative data, structured questionnaires were used, and a total of 216 SMEs that engaged in international business participated using purposeful sampling, covering all the states in Peninsular Malaysia. For the collection of qualitative data, the study involved in-depth interviews with 25 owners/managers of SMEs. Findings – The findings indicate that the motives of SMEs for international expansion are varied, and that SMEs still face many institutional challenges, which have prevented them from making a greater contribution. Research limitations/implications – Due to lack of resources, firms from West Malaysia were included. West Malaysian firms may well possess characteristics concerning the challenges and issues to internationalisation that are unique to their region. Originality/value – The paper addresses a knowledge gap in respect of the internationalisation process of SMEs in the context of Southeast Asia. The findings of this paper will have relevance for policymaking and supportive measures at the government level to create an environment that will stimulate the competitiveness of SMEs in their attempts for internationalisation.

International business strategy: development of an integrated framework and typology

2020 ◽  
Vol 30 (3) ◽  
pp. 345-373 ◽  
Author(s):  
Som Sekhar Bhattacharyya
Keyword(s):  
Literature Review ◽  
International Business ◽  
Business Strategy ◽  
International Market ◽  
Building Blocks ◽  
Foreign Country ◽  
Content Type ◽  
Integrated Framework ◽  
Resources And Capabilities ◽  
International Business Strategy

Purpose The purpose of this study is international business strategy (IBS) has evolved into a complex and vast domain of study. Given this fact, the author first proposed a set of screens that a firm’s IBS manager was required to assess before venturing into a foreign country. Then the author developed an integrated IBS framework to secure a holistic view regarding IBS. Finally, the author proposed a typology to classify IBS archetypes. Design/methodology/approach The author undertook a systematic and integrated literature review of IBS literature. The literature review was carried out with a conceptual perspective in mind. Incremental and argumentative logic was applied to develop the integrated IBS framework from a wide domain of literature. Furthermore, the typology on IBS initiatives was also developed based upon a classification scheme developed in the framework. Findings The author developed the integrated conceptual framework based upon six building blocks which were conceptual elements. The framework consisted of the antecedent variable as internationally deployable organizational resources and capabilities (IDORC), the mediating variables as internationally implementable organizational process (IIOP), internationally executable practices and activities (IEPA) and international market product service offerings (IMPSO). The moderating variable was international initiatives management direction and control (IIMDC), while the dependent variable was international market performance assessment (IMPA). Thus, IDORC, IIOP, IEPA, IMPSA, IIMDC and IMPA were the building blocks of IBS framework. There were 12 types of IBS typologies based upon the dominant role played by the home and host countries in the six building block elements of IBS mentioned. The 12 typologies were domestic reproduction (DR), foreign country centric offerings (FCCO), international offerings perspective (IOP), foreign country-driven activities (FCDA), international-driven activities (IDA), foreign country-driven process (FCDP), international-driven process (IDP), foreign country initiatives domestically controlled (FCIDC), international initiatives domestically controlled (IIDC), international initiatives home-dominant foreign dyad controlled (IIHDFDC), international independent initiative (III) and international coordinated network approach (ICNA). Research limitations/implications In this study, an integrated framework on IBS was developed. In the theoretical framework, antecedent (DORC), mediating (IIOP, IEPA and IMPSA), moderating (IIMDC) and dependent variables (IMPA) have been incorporated. This was the first theoretical contribution of this paper toward IBS theorization. Second contribution of this paper was toward typology development regarding IBS initiatives archetypes. The 12 typologies were DR, FCCO, IOP, FCDA, IDA, FCDP, IDP, FCIDC, IIDC, IHDFDC, III and ICNA. The IBS typology is based upon the six constituent concepts developed from literature. Practical implications Managers who are responsible for the planning and execution of IBS initiatives could from the integrated IBS framework comprehend what would be the steps required to plan and execute an IBS strategy in its entirety for success in foreign markets. Furthermore, managers could understand the various mediation and moderation roles regarding the IBS factors present in any firm internationalization effort. This would help managers not only to amplify the mediating effects but also to tweak the efforts of moderation so as to arrive at better internationalization performance. The section on typology on IBS initiatives would help managers to secure a better fit for the IBS initiative of the firm. The typology would anchor managerial perspectives regarding how the home country firm organizational contributions on resources and capabilities, processes, practice activities and products and services need to be offered in foreign countries. Originality/value To the best of author’s knowledge, this is one of the first frameworks regarding an integrated perspective on IBS and a typology on IBS based upon a set of antecedent (resources and capabilities), mediation (process, activities and market offerings), moderation (management control) and dependent (performance) variables building on firm resource-based view perspectives.

Mediating effect of organizational learning and moderating role of environmental dynamism on the relationship between strategic change and firm performance

2019 ◽  
Vol 12 (2) ◽  
pp. 275-297 ◽  
Author(s):  
Haruna Isa Mohammad
Keyword(s):  
Organizational Learning ◽  
Firm Performance ◽  
Strategic Change ◽  
Developed Countries ◽  
Mediating Effect ◽  
Environmental Dynamism ◽  
Content Type ◽  
The Relationship ◽  
Moderating Role

Purpose With the materialization of literature on strategic change, it is clear that organizational learning and organizational dynamism have been among the most notable areas of study. The purpose of this paper is to extend the literature on strategic management by examining the mediating effects of organizational learning and the moderating role of environmental dynamism on the relationship between strategic change and firm performance. Design/methodology/approach A survey questionnaire was administered to 650 respondents who were both corporate and business-level managers of 22 main deposit money banks (commercial banks) and their branches across the country. In total, 630 questionnaires were returned and 587 were used after following all the processes of data preparation. Path analysis was employed to test the hypotheses in this study using Smart PLS 3. Findings The study found a significant mediating effect of organizational learning on the relationship between strategic change and firm performance. Although no significant moderating role of environmental dynamism was found, the directions of the path coefficients are consistent with the hypothesis. All the relationships between the constructs are significant. Research limitations/implications It is paramount for managers to understand the type of environment and learning that fits diverse kinds of strategic changes in order to improve firm performance. It is evident that changes that are not proactive and generative organizational learning may seem dangerous for a firm. However, organizations should learn to incorporate the change to be able to compete in a dynamic competitive environment. Originality/value Prior studies on strategic change, environmental dynamism and organizational learning have mainly focused on manufacturing and construction industries in the developed countries, but less has been done in the service sector, particularly the banking organizations in developing countries. Nigeria is one of those countries. Therefore, this study focuses on the links between strategic change and firm performance, moderating role of environmental dynamism and the mediating effect of organizational learning within the context of the Nigerian deposit money banks.

scholarly journals International business travelers' job exhaustion: effects of travel days spent in short-haul and long-haul destinations and the moderating role of leader-member exchange

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Liisa Mäkelä ◽  
Jussi Tanskanen ◽  
Hilpi Kangas ◽  
Milla Heikkilä
Keyword(s):  
International Business ◽  
Well Being ◽  
Business Travel ◽  
Content Type ◽  
Business Travelers ◽  
Member Exchange ◽  
Path Models ◽  
Moderating Role ◽  
Health Process

PurposeThe purpose of the present study is to examine the general and travel-specific job exhaustion of international business travelers (IBTs). The study employs a JD-R model to explain general and travel-specific job exhaustion (IBTExh) through international business travel as demand and leadership (LMX) as a resource buffering the demands of international business travel.Design/methodology/approachThe study was conducted among Finnish service company employees who had taken at least one international business trip during the previous year. The data (N = 569), collected in 2015, were analyzed with path models.FindingsThe results suggest that a higher number of international business travel days is related to a higher level of job exhaustion, especially the exhaustion related to international business travel. Moreover, a high-quality LMX was found to be linked to lower levels of both types of exhaustion. Interestingly, for those IBTs' with a low-quality LMX, even a high number of long-haul international business travel days was not connected with IBTExhOriginality/valueThe contribution of our study is threefold. First, this study contributes to JD-R theory and the ill-health process by focusing on a job-specific well-being indicator, IBTExh, in addition to general exhaustion. Second, specific job demands related to international business travel, particularly the duration of business travel spent in short-haul and long-haul destinations, contributes to the literature on global mobility. This study sheds light on the potential effects on IBTs of different types of business travel. Third, our study contributes to the leadership literature and the importance of acknowledging the context in which LMX occurs.

scholarly journals International business competence and innovation performance: the role of ambidextrous organizational culture andenvironmental dynamism

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ghulam Mustafa ◽  
Zahid Ali ◽  
Virginia Bodolica ◽  
Prajwal Kayastha
Keyword(s):  
Organizational Culture ◽  
International Business ◽  
Innovation Performance ◽  
Mediation Effect ◽  
Environmental Dynamism ◽  
Content Type ◽  
Software Application ◽  
Seafood Industry ◽  
Using Data

Purpose This study aims to examine the influence of international business competence (IBC) on innovation performance of organizations activating in global markets. The study also explores whether ambidextrous organizational culture (AOC) acts as an antecedent of IBC and whether the environmental dynamism affects the IBC–innovation performance relationship. Design/methodology/approach The authors assessed the hypothesized relationships using data collected from a sample of companies operating in the Norwegian seafood industry. The direct, mediating and moderating effects were tested using partial least squares (PLS) with SmartPLS software application. Findings The empirical analysis revealed that AOC is positively associated with IBC, while IBC is a significant predictor of innovation performance. The findings also corroborated the proposed mediation effect of IBC, but refuted the moderating role of environmental dynamism. Originality/value This study contributes to the international business literature by suggesting that companies equipped with IBC can excel in innovative undertakings and that organizational culture can be effectively leveraged to develop such competences.

Does independent goal interdependence impair dynamic capability? The mediating role of supplier integration and the moderating role of internal integration

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Linbo Yang ◽  
Joo Seng Tan ◽  
Chenjing Gan
Keyword(s):  
Supply Chain ◽  
Dynamic Capability ◽  
Content Type ◽  
Mediating Role ◽  
Supplier Integration ◽  
Cooperation And Competition ◽  
Goal Interdependence ◽  
Internal Integration ◽  
Moderating Role

PurposeRapidly changing technological and marketing environments challenge the survival of business organizations. Developing dynamic capability is critical in helping companies respond to today's turbulent environments. Thus, fruitful studies on the antecedents of dynamic capability have been conducted. However, in the context of the supply chain, little is known about the factors that can be harmful to dynamic capability. Drawing on the theory of cooperation and competition, the first purpose of this study is to examine the relationship between independent goal interdependence with suppliers and dynamic capability by focusing on the mediating role of supplier integration. Combining the information processing theory and transaction cost economics with the theory of cooperation and competition, the second purpose of this study is to discuss and test the moderating role of internal integration.Design/methodology/approachUsing a carefully designed questionnaire, a large-scale survey was employed to collect data in China. The senior manager (e.g. president, vice president, chief executive officer [CEO], executive or purchasing manager) of each company was asked to participate in our survey. The final valid sample in our survey consisted of 233 companies. Hierarchical multiple regression statistical analysis and bias-corrected bootstrapping methods were applied to test the correlation, mediation, moderation and moderated mediation relationships between variables.FindingsThe authors found that independent goal interdependence negatively influences dynamic capability through frustrating supplier integration. In addition, the moderated mediation model analysis shows that internal integration weakens the positive direct effect of supplier integration on dynamic capability while neutralizing the negative indirect effect of independent goal interdependence on dynamic capability. The theoretical and managerial implications of these results are discussed.Originality/valueFirst, starting from the goal interdependence and supply chain management perspectives, this research not only is consistent with remote theoretical research that explains why interdependence among organizations influences the capability to enhance competitive advantage but also incorporates relevant internal and external factors that influence dynamic capability. Second, by proposing an innovative boundary factor – internal integration – this study also contributes to adjusting the predictions of the theory of cooperation and competition. Third, focusing specifically on the negative antecedent of dynamic capability can provide a better understanding of the antecedents that cause companies to have weakened dynamic capability.

PepsiCo MEA: the role of packaging in brand activation

2015 ◽  
Vol 5 (3) ◽  
pp. 1-12
Author(s):  
Melodena Stephens Balakrishnan
Keyword(s):  
Learning Outcomes ◽  
International Business ◽  
Business Strategy ◽  
Consumer Behaviour ◽  
Subject Area ◽  
Master's Students ◽  
Content Type ◽  
Advertising Industry ◽  
Business Practitioners

Subject area Marketing, International Business, Strategy, Packaging, Promotion. Study level/applicability Graduate students. Case overview This case is recommended to master's students studying consumer behaviour, products strategy, brand activation and international business. Practitioners in the food industry, design and advertising industry may also find this case interesting. Policymakers looking at mobility of products across borders may also consider this case interesting. Expected learning outcomes This paper explains the role of packaging in brand and product strategy; describes how packaging can give a competitive advantage in the fast-moving consumer goods category; relates consumer insights to strategy using packaging to achieve market objectives like penetration, market share increase, engagement and loyalty. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes.

Technological capabilities, open innovation and perceived operational performance in SMEs: the moderating role of environmental dynamism

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Seyedeh Khadijeh Taghizadeh ◽  
Davoud Nikbin ◽  
Mirza Mohammad Didarul Alam ◽  
Syed Abidur Rahman ◽  
Gunalan Nadarajah
Keyword(s):  
Open Innovation ◽  
Structural Equation ◽  
Operational Performance ◽  
Equation Modeling ◽  
Technological Capabilities ◽  
Environmental Dynamism ◽  
Content Type ◽  
Innovation Practices ◽  
Moderating Role

Purpose In the current dynamic environment, technological capabilities and open innovation play vital roles in operational performance of small and medium enterprises (SMEs). Thus, the purpose of this paper is to explore the influence of technological capabilities on open innovation and consequent impact on perceived operational performance of the SMEs in Malaysia by considering the moderating effect of environmental dynamism. Design/methodology/approach This study is quantitative in nature and used a survey questionnaire to gather responses from 202 SME owners in Malaysia. The data were analyzed with SmartPLS software, as it used structural equation modeling. Findings The results show that technological capabilities significantly influence open innovation whereas open innovation plays an instrumental role to achieve operational performance of the SMEs. Interestingly, environmental dynamism was found to have a negative moderating role in the relationship between open innovation and perceived operational performance. Practical implications This paper will assist SME managers in making effective decisions while using technological capabilities and open innovation practices. Managers need to be aware of the vital role of technological capabilities to build external and internal collaboration and incorporate their knowledge that is necessary for open innovation practices. The results also assist managers in a way that in the dynamic and competitive environment SMEs should take further proactive actions to compete in the market to survive. Originality/value This study provides new insights by dismantling technological capabilities and open innovation to understand further the effects of technological capabilities on open innovation and its consequence on a firm’s operational performance.

CEO overconfidence and firm internationalization: the moderating role of experience and managerial discretion

2020 ◽  
Vol 11 (4) ◽  
pp. 597-616
Author(s):  
Runhui Lin ◽  
Fei Li ◽  
Adedigba Olawoyin
Keyword(s):  
Manufacturing Industry ◽  
Management Practice ◽  
Managerial Discretion ◽  
International Expansion ◽  
Content Type ◽  
Upper Echelons Theory ◽  
Firm Internationalization ◽  
The Impact ◽  
Moderating Role

Purpose Overconfidence as an important psychological factor can also affect CEO’s cognitive preferences, while there are few studies about the impact of CEO’ overconfidence on the international expansion of companies. This paper aims to fill this gap and further discuss the moderating role of CEO’s overseas experience, CEO duality and ownership. Design/methodology/approach The authors focus on the Chinese context, collect 2008–2016 data from China's manufacturing industry as sample, use fixed effect model to analyse the effect of CEO overconfidence on international expansion strategy of Chinese firms. Findings The empirical results show that: CEO overconfidence positively promotes the degree of firm internationalization. CEO foreign experience positively affects the internationalization degree, but can restrain overconfidence thus negatively regulate this impact relationship. When duality is present, both CEO power and managerial discretion are pronounced and they exhibit a stronger effect. Firm’s equity nature will affect the relationship between CEOs' overconfidence and the degree of internationalization. Compared with private enterprises, CEOs in state-owned enterprises have limited power, therefore, this influence relationship is weaker. Originality/value This study has emphasized the importance of top executives' psychological characteristics on firm internationalization, which is key application and complement of upper echelons theory and fills the research gap in the literature. In this paper, the authors found the advantages of overconfidence for firms, which helps to understand the complex meaning of overconfidence. The results of moderating effect further explore the application of overconfidence in different context, which has some implications for management practice.

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