scholarly journals Revisiting the contingency theory: dissection of entrepreneurial orientation elements in retail franchisee performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Samantha Naidu ◽  
Gurmeet Singh ◽  
Jashwini Narayan

PurposeThis study aims to analyze how various contingencies within the contingency theory influence the entrepreneurial orientation (EO) elements and performance of retail franchisees in a South Pacific Island nation.Design/methodology/approachThis study employs a quantitative approach of data collection from 203 managers in a total of 89 retail franchise outlets. Convenience and snowball sampling techniques were used with data analysis through SPSS AMOS and covariance-based structural equation modelling (CB-SEM).FindingsThe results confirmed that technology, innovation and promotion; competitive edge and value co-creation; high return opportunity capitalization; and empowerment and support influenced franchisee performance, while responsive customer focused leadership and competitor knowledge proved to be insignificant. The findings supported EO's influence on both financial and non-financial indicators, with greater influence on financial indicators. The result revealed that EO accounts for partial impact on franchisee performance, while the remaining impact could be attributed to organization and environment contingencies.Originality/valueThe study proposes a novel context of EO in franchising, where we dissect key elements within the EO dimensions. It also adds to the extant literature on how the broader context of environmental and organizational factors termed as “strategic fit” affects entrepreneurial franchisee performance.

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Luu Tien Dung ◽  
Huynh Thi Thuy Giang

Purpose This study aims to reveal the effect of the two international intrapreneurship activities of employee strategic renewal behaviour and new business venture behaviour on small and medium enterprises (SMEs)’s export performance with the direct and indirect effects of transformational leadership, international entrepreneurial orientation and internal corporate social responsibility (CSR) practices. Design/methodology/approach The study sample consists of 461 employees at 168 Vietnamese import and export SMEs in the Ho Chi Minh City of Vietnam. The data is analysed by structural equation modelling. Findings The paper reveals that the two international intrapreneurship activities of employee strategic renewal behaviour and new business venture behaviour significantly contribute to SMEs’ export performance. Transformational leadership, internal CSR practice and international entrepreneurial orientation positively and significantly direct influence the two international intrapreneurship activities. The effects of transformational leadership on international intrapreneurial behaviours are partially mediated by firm internal CSR practices and international entrepreneurial orientation. Research limitations/implications Firms would have to form the architecture and mechanisms to apply internal CSR and international entrepreneurship orientation for supporting the dedication of international intrapreneurship with a transformational leadership base. Originality/value The study contributes to the body of knowledge on international business by integrating resource-based view theory and dynamic capabilities theory in a way that benefits entrepreneurship and SMEs’ export performance.


Author(s):  
Syed Zulfiqar Ali Shah ◽  
Maqsood Ahmad

Purpose This paper aims to investigate the effects of entrepreneurial orientation (EO) on the performance of small and medium-sized enterprises (SMEs) with mediating role of differentiation strategy in Pakistan. Design/methodology/approach A theoretical framework has been developed to base the hypotheses, as also to determine the exact approach in this study. To establish the influence of EO on the performance of SME, a five-point Likert scale questionnaire has been used to collect data from middle and senior managers who operate in SMEs in the manufacturing sectors. The sample illustrates 166 incumbents, comprising 68.07 per cent from middle management and 31.93 per cent from senior management operating in manufacturing sector of SMEs, by means of a stratified random sampling technique. The collected data were analyzed using SPSS and Amos graphics software. Hypotheses were tested by using structural equation modeling (SEM) technique. Findings EO, as a whole, presents a significant positive effect on the performance of SMEs. Moreover, differentiation strategy partially mediated the relationship between EO and performance of SMEs. Two dimensions of EO, proactiveness and risk-taking propensity, strongly increased firm performance while innovativeness, competitive aggressiveness, autonomy and competitive energy did not cause any significant change. The findings differ from the current view of western enterprises that innovativeness (INO) played a major role by increasing performance of SMEs. The results transpired that innovativeness (INO) tends to reduce performance of SMEs, but the p-value did not reach a high significance value. Research limitations/implications The main limitation of this empirical study is comparatively a small size of the sample. The analysis of power suggests that a larger sample could have provided more reliable and extensive results. Regardless of that, the analysis of reliability, using the Cronbach's alpha, exhibited the consistency of outcomes in providing an accurate portrait of the EO influences on the performance of SME. Practical implications The study verifies that two dimensions of EO have considerable effects on the performance of SMEs, while the others have not, whereas, the EO, as whole, has significant positive effect on performance of SMEs. These findings should be helpful for researchers looking for appropriate performance measures, and for entrepreneurs aiming at getting support for their decisions and evaluating their performance. Originality/value The current study appears to be first of its kind focusing on the link between EOs, as whole, and its dimensions, to performance of SMEs and differentiation strategies within the specific context of Pakistan.


2016 ◽  
Vol 116 (8) ◽  
pp. 1445-1467 ◽  
Author(s):  
Ignacio Tamayo-Torres ◽  
Leopoldo J. Gutiérrez-Gutiérrez ◽  
Francisco Javier Llorens-Montes ◽  
Francisco J. Martínez-López

Purpose The purpose of this paper is to analyze the roles played by organizational learning (OL) and innovation in organizations immersed in the processes of adaptation and strategic fit in dynamic and turbulent environments. The authors analyze whether OL and innovation act as sources of strategic fit, and whether strategic fit positively affects performance. Design/methodology/approach The authors use data from a survey of a representative sample of 204 respondents from European firms active in high-technology sectors (response rate: 10.42 percent) and structural equation modeling (using the EQS 6.1 program) to undertake a transversal study. Findings The model confirms that OL and the capacity to innovate positively influence managers’ decisions to adapt their organizations to changes in dynamic environments. The achievement of strategic fit, in turn, improves organizational performance. The authors propose considering the innovation climate as a facilitator of new product and process development, although the innovation climate is not a direct antecedent of fit. Research limitations/implications This study is limited by the fact that the analysis is cross-sectional and by the fact that all measures used are based on managers’ perceptions. Practical implications Managers should create and support an entrepreneurial culture that stresses continuous learning. They should also foster programs aimed at developing abilities, and promote the development of capabilities that facilitate acceptance of organizational change. Investments in building certain capabilities, such as OL and the capacity to innovate, are strategically justified, especially in turbulent environments. Originality/value This study is one of the first to investigate the complex interactions among OL, innovation, strategic fit, and performance. The results improve our understanding of the links between strategic fit and performance.


2020 ◽  
Vol 15 (6) ◽  
pp. 1219-1241 ◽  
Author(s):  
Ejikeme Emmanuel Isichei ◽  
Kalu Emmanuel Agbaeze ◽  
Maria Onyejeche Odiba

PurposeThis paper addresses the mediating effect of structural infrastructure capability on the relationship between entrepreneurial orientation (EO) and SMEs performance in emerging economies, focusing on Nigeria. It addresses the need to ensure that small and medium-sized enterprises (SMEs) are able to overcome the inherent challenges in their external environment actively and, thus, contribute to economic growth through internal management variables.Design/methodology/approachThe study adopted a survey design, utilising a sample of 377 SMEs covering the six geopolitical zones in Nigeria. A questionnaire was used for data collection, and data analysis was conducted using partial least squares structural equation modelling (PLS-SEM) with the aid of SmartPLSv3.FindingsThe study found that innovativeness and proactiveness, as dimensions of EO, have a significant effect on SMEs' performance. Risking-taking, however, showed no significant effect on performance. The study found that structural infrastructure capability significantly mediates the EO–performance relationship.Practical implicationsThe paper provides practical implications for society, as managers and SMEs' support agencies in emerging markets can be encouraged to focus more on internal management activities to support knowledge sharing within the organisation, given its relevance to improving performance, rather than focusing only on EO.Originality/valueThe study further strengthens and validates the resource-based view (RBV) theory and contributes to expanding knowledge on the relevance of internal management variables (knowledge sharing) in managing small and medium-scale enterprises. The study further advances theories regarding knowledge management's role, as a function of internal management system in the EO–performance relationship, thus helping to close the research gap related to these relationships from an emerging-economy perspective.


2014 ◽  
Vol 18 (1) ◽  
pp. 75-91 ◽  
Author(s):  
Heeyoung Jang ◽  
Ilsang Ko

Purpose – The objective of this study is to identify the factors that affect CoP activation and performance variables obtainable through CoP activities, and to gain greater insight into their relationships and the mechanisms. In particular, this paper intends to illustrate the role of perceived risk factor for the loss of uniqueness of one's own knowledge in terms of their influence on CoP activities. Design/methodology/approach – In this study, the human behaviours were divided into online and offline CoP activities and adopted affirmative affect and social norm from the Triandis model. In addition, the paper considered perceived expectation, perceived risk, and organization support as independent variables. These would accelerate online and offline activities in the community of practice. The paper considered relationship commitment and individual performance in the context of performance evaluations via CoP activities. A structural equation model was developed with research variables and hypotheses. Findings – As the consequence of the empirical assessment of the variables influencing the on/offline activities of a CoP, social norm, perceived expectation, perceived risk, and organizational support showed significantly influential relationships with online activities, and affirmative affect, perceived expectation, and organizational support evidenced significantly influential relationships with offline activities. However, with regard to online CoP activities, affirmative affect was not shown to be significant. As to offline activities, perceived risk was not shown to be significantly influential, while it was determined to significantly influence online activities in a negative direction. Originality/value – The results of this study demonstrated that on/offline CoP activities were significantly influential in terms both of relationship commitment and individual performance.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Márcia Maria Garçon ◽  
Vânia Maria Jorge Nassif ◽  
Tiago Jessé Souza de Lima

Purpose The purpose of this paper is to develop and test a model that aims to explain individual entrepreneurial orientation (IEO) focused on the context of social entrepreneurship (SE) (Social-IEO) by considering the personal values and attitude toward social change through direct and indirect effects. To achieve this purpose, the authors created and validated a scale to measure Social-IEO. Design/methodology/approach The paper uses scale construction techniques (DeVellis, 2016) and survey method for data collection. As such, this study was conducted by considering a sample of 198 social entrepreneurs. Multivariate data analysis and structural equation modeling are used to validate the theoretical model. Findings The Social-IEO scale was validated and shows to adequately encompass and measure the construct. The proposed model has predictive relevance and explains 45% of Social-IEO. Findings suggest that self-transcendence value has no direct effect on Social-IEO. Additionally, conservation and self-promotion values do not have a negative correlation with Social-IEO. Finally, attitude of social change has a strong explanatory power to Social-IEO. The findings offer important theoretical and practical implications for the field of entrepreneurship education and entrepreneurial behavior. Originality/value The definition of a specific concept of IEO applied to the context of SE contributes to the correct understanding of its dimensions, measurement and management. This eliminates a gap in studies and contributes to expand and strengthen research. It also provides an original empirical approach, as the method used to measure IEO in a reflective way is unusual in previous studies.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Dharma Tuah Putra Nasution ◽  
Ahmad Rafiki ◽  
Adelina Lubis ◽  
Yossie Rossanty

Purpose The purpose of this study is to examine the dimensions of entrepreneurial orientation (EO), knowledge management process (KMP) and dynamic capability (DC) toward the adoption of electronic commerce (e-commerce) of small and medium enterprises (SMEs) in North Sumatera. Design/methodology/approach This study used a quantitative methodology using Smart PLS of structural equation model. A survey is done by distributing the questionnaires to the respondents (owner-managers) of SMEs across sectors. Using a convenient sampling technique, 131 respondents were selected. Using a cross-sectional survey design, 11 hypotheses were tested. Findings It is found that both innovativeness and proactiveness of EO have a significant relationship with e-commerce adoption (EA), while the risk-taking of EO is found as insignificant. Both risk-taking and proactiveness of EO are significantly related to KMP, but innovation of EO is found to be insignificant. Moreover, KMP significantly mediates the relationship between risk-taking and proactiveness of EO and EA, while KMP insignificantly mediates the relationship between innovativeness of EO and EA. Finally, it is found that DC has a significant relationship in EA. Originality/value By using the resource based-theory, the study on the decision of EA by SMEs is conducted which focuses on a number of internal and external factors influencing the adoption decision. This differs from other studies using theories of the technological, organizational and environmental, theory of acceptance and use of technology, theory of planned behavior, theory of reasoned action and others which emphasized on the implementation and usage of EA.


2018 ◽  
Vol 118 (9) ◽  
pp. 1749-1765 ◽  
Author(s):  
Mingu Kang ◽  
Ma Ga (Mark) Yang ◽  
Youngwon Park ◽  
Baofeng Huo

Purpose The purpose of this paper is to examine the role of supply chain integration (SCI) in improving sustainability management practices (SMPs) and performance. Design/methodology/approach Based on data collected from 931 manufacturing firms in multiple countries and regions, the authors conducted a structural equation modeling analysis to test the proposed hypotheses. Findings The findings suggest that supplier and customer integration are vital enablers for both intra- and inter-organizational SMPs. The results also reveal that both intra- and inter-organizational SMPs are significantly and positively associated with sustainability performance (i.e. economic, environmental and social performance) and function as complements to jointly enhance environmental and social performance. Originality/value This study incorporates SCI into the sustainability literature, providing a new perspective on sustainability and supply chain management research.


2014 ◽  
Vol 19 (5) ◽  
pp. 494-507 ◽  
Author(s):  
Martha C. Andrews ◽  
K. Michele Kacmar ◽  
Charles Kacmar

Purpose – The purpose of this paper is to explore the role of mindfulness as a predictor of the two components of regulatory focus theory (RFT): promotion and prevention focus. It further examines promotion focus and prevention focus as mediators of the mindfulness-job satisfaction and mindfulness-turnover intentions relationships. Finally, job satisfaction is also examined as a mediator of the mindfulness-turnover intentions relationship. Design/methodology/approach – The model was tested using data collected via a snowball approach. Online surveys were distributed to undergraduate students enrolled in a business course. Students were then given the opportunity to earn extra credit by sending the survey to potential respondents. The relationships were tested using structural equation modeling. Findings – Support was found for four of the six hypotheses. Prevention focus did not negatively mediate the relationship between mindfulness and job satisfaction as well as the relationship between mindfulness and turnover intentions. Research limitations/implications – One limitations of this research is the placement of mindfulness as an antecedent to promotion and prevention focus. Another plausible alternative is to consider mindfulness as a consequence. An additional limitation is the use of a snowball sampling technique. Future research should examine these findings using employees of a single organization. Originality/value – This research theoretically and empirically links RFT and mindfulness. This study also adds to the limited research empirically linking RFT and turnover intentions, both directly and indirectly via job satisfaction. Finally, this research extends previous research that established the positive relationship between mindfulness and job satisfaction by examining the mindfulness-job satisfaction-turnover intentions relationship.


2017 ◽  
Vol 30 (6) ◽  
pp. 957-977 ◽  
Author(s):  
Moses Mpiima Kibirango ◽  
John C. Munene ◽  
Waswa J. Balunywa ◽  
Jovent K. Obbo

Purpose The purpose of this paper is to examine, explain, predict and guide the processes, mechanisms and outcomes of intrapreneurial behaviour to provide evidence that novelty ecosystems mediate the relationships between generative influence, positive deviance and intrapreneurial behaviour. It also enlightens the capacity of replicating the intrapreneurial best practices. Design/methodology/approach The study uses an integrated approach of entrepreneurship and complexity theories. Its subjects were full-time designated university employees in the Republic of Kenya. A total number of 244 employees were selected using snowball sampling technique from ten public and private universities in the Kenya. A self-administered questionnaire was used to collect data. Findings The structural equation modelling path analysis and the bootstrapping results confirmed full mediation of novelty ecosystems in the relationship between generative influence and intrapreneurial behaviour. The findings, further, verified that novelty ecosystems partially mediate the relationship between positive deviance and intrapreneurial behaviour. Research limitations/implications Subjective appraisals were used, despite the fact that studied variables are ultimately based on what employees perceive. Future research should generate and include more objective measures. Practical implications Intrapreneurial behaviour can only be explained and predicted through novelty ecosystems. University leaders need to fully understand and facilitate novelty ecosystems. Social implications A deeper understanding of the power of generative influence, positive deviance and novelty ecosystems will not be fully realized until researchers devote as much energy and attention to facilitation as has been devoted to conflict. Originality/value This study extends existing intrapreneurial research into complexity approach.


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