Interrelated effects of technological and non-technological innovation on firm performance in EM – A mediation analysis of Peruvian manufacturing firms

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Javier Fernando Del Carpio Gallegos ◽  
Francesc Miralles
Keyword(s):  
Firm Performance ◽  
Emerging Markets ◽  
Technological Innovation ◽  
Latin American ◽  
Mediation Analysis ◽  
Manufacturing Firms ◽  
Equation Modeling ◽  
High Tech ◽  
Mediation Effects ◽  
Content Type

PurposeFirm innovative performance in emerging markets must take into account the peculiarities of their competitive environment. Research on the effect of innovation on firm performance focuses mainly on high-tech firms in developed countries. This study proposes a model that empirically examines how technological and non-technological innovation influence Peruvian manufacturing firms' performance.Design/methodology/approachUsing the resource-based view, a model is proposed that allows the mediation effects of technological innovation and non-technological innovation on firm performance among low and medium-low technological intensity manufacturing firms to be analyzed. The study uses structural equation modeling and mediation analysis with data from 503 Peruvian firms researched in the 2012 National Survey of Innovation.FindingsThe model's validation shows that the integrated perspective is relevant for emerging markets like Peru. Moreover, the results confirm that technological and non-technological innovation and their interrelationship are important for understanding the performance dimensions of Peruvian manufacturing firms.Originality/valueThis paper contributes to the literature on innovation in Latin American economies, proposing and validating a model that combines the mediation effects of technological and non-technological innovation to explain the relevant dimensions of firm performance in emerging markets.

Strategic orientations, firm performance and the moderating effect of absorptive capacity

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Manuel-Alejandro Ibarra-Cisneros ◽  
María del Rosario Demuner-Flores ◽  
Felipe Hernández-Perlines
Keyword(s):  
Firm Performance ◽  
Market Orientation ◽  
Absorptive Capacity ◽  
Entrepreneurial Orientation ◽  
Manufacturing Firms ◽  
Moderating Effect ◽  
Equation Modeling ◽  
Content Type ◽  
Strategic Orientations ◽  
The Relationship

PurposeThe purpose of this article is to study the moderating effect of absorptive capacity, defined as the set of organizational routines and processes through which companies acquire, assimilate, transform and exploit knowledge to produce a dynamic organizational capacity (Zahra and George, 2002), in three strategic orientations: market orientation; technology orientation and entrepreneurial orientation and their positive relationship in the performance of the medium and large Mexican manufacturing firms. Likewise, it is determined whether these three combined SOs influence firm performance.Design/methodology/approachThe data was collected from 171 medium and large-sized Mexican manufacturing firms. The proposed hypotheses are tested using partial least square structural equation modeling (PLS-SEM).FindingsDespite the importance of knowledge for the development of firms, the results indicate that the moderating effect of absorptive capacity is only present in the relationship between entrepreneurial orientation and firm performance. That is, firms cannot take advantage of knowledge simultaneously between the three strategic orientations. For their part, market orientation and entrepreneurial orientation exert a positive influence on firm performance.Practical implicationsThe main practical implication for the manufacturing industry is that they must develop mechanisms to detect what kind of knowledge affects each strategic orientation, in this way it can make the absorptive capacity influence the relationships between SO and FP.Originality/valueThe main contribution consists of studying the moderating effect of the absorptive capacity on the relationship between three strategic orientations and firm performance, and not concentrating solely on the simultaneous use of these strategies as is commonly done.

Chasing productivity demands, worker well-being, and firm performance

2020 ◽  
Vol 49 (9) ◽  
pp. 1823-1843
Author(s):  
Mastura Ab Wahab ◽  
Ekrem Tatoglu
Keyword(s):  
Firm Performance ◽  
Well Being ◽  
Manufacturing Firms ◽  
Equation Modeling ◽  
Flexible Work Arrangements ◽  
Flexible Work ◽  
Content Type ◽  
Work Arrangements ◽  
The Impact ◽  
The Relationship

PurposeThis study aims to examine the impact of chasing productivity demands on worker well-being and firm performance in manufacturing firms in Malaysia. Flexible work arrangements and human resources support are used as moderators to mitigate the adverse impacts associated with chasing productivity demands.Design/methodology/approachData were collected from 213 workers from manufacturing firms through a survey questionnaire utilizing structural equation modeling.FindingsThe findings of the study show that flexible work arrangements play a significant role in moderating the relationship between chasing productivity demands and well-being, and between chasing productivity demands and firm performance. The study also shows that flexible work arrangements are important to buffer the adverse effects of chasing productivity demands on worker well-being. In addition, flexible work arrangements strengthen the positive effect of worker well-being on firm performance.Research limitations/implicationsThis study highlights the importance of flexible work arrangements in overcoming the negative impact of the relationship between chasing productivity demands and worker well-being and strengthening the positive impact of the relationship between worker well-being and firm performance.Originality/valueThis study has extended the variable of chasing productivity demands in the existing literature on the job demands–job control model, specifically in manufacturing firms.

Drivers of supply chain integration and the role of organizational culture

2016 ◽  
Vol 22 (1) ◽  
pp. 89-115 ◽  
Author(s):  
Erlinda N. Yunus ◽  
Suresh K. Tadisina
Keyword(s):  
Organizational Culture ◽  
Supply Chain ◽  
Firm Performance ◽  
Manufacturing Firms ◽  
Supply Chain Integration ◽  
Equation Modeling ◽  
Content Type ◽  
The Impact ◽  
The Relationship

Purpose – Supply chain integration (SCI) is a set of practices driven by many factors and circumstances. The purpose of this paper is to examine firms’ internal and external drivers of SCI, evaluate the impact of the integration on firm performance, and further investigate the moderating role of organizational culture in strengthening the relationships between firms’ drivers and SCI. Design/methodology/approach – For the purpose of this study, manufacturing firms were identified as the focal firms in supply chains, and thus data were collected through a survey of 223 Indonesian-based manufacturing firms. Two informants from each firm became the respondents. Structural equation modeling was used to analyze the data. Findings – This study confirmed the positive relationship between SCI and firm performance. The results also indicated that internal driver, or specifically firms’ customer orientation (CO), triggered the initiation of SCI. Organizational culture, in terms of external focus, positively influenced the relationship between CO and SCI. Research limitations/implications – This study illustrates the important role of organizational culture in determining the shape of the relationship between firms’ drivers and SCI. The results of this study enhance the understanding of SCI, especially related to types of organizational culture that could promote the integration. Originality/value – This study brings a different dimension of SCI as this study provides evidence from a developing country, which might implement different practices as compared those of developed countries. This study provides a measure of internal drivers, which has not been empirically investigated. The new measure was tested and validated using a rigorous process, and thus could be employed in other studies with different settings.

Proximity as determinant of business cooperation for technological and non-technological innovations: a study of an agribusiness cluster

2017 ◽  
Vol 32 (1) ◽  
pp. 167-178 ◽  
Author(s):  
Cristian Geldes ◽  
Jorge Heredia ◽  
Christian Felzensztein ◽  
Marcos Mora
Keyword(s):  
Factor Analysis ◽  
Technological Innovation ◽  
Emerging Economy ◽  
Equation Modeling ◽  
High Tech ◽  
Technological Innovations ◽  
Content Type ◽  
Business Innovation ◽  
Determining Factor ◽  
Positive Determinant

Purpose This paper aims to use the proximity approach of economic geography with its spatial dimension (geographic) and their non-spatial dimensions (social, institutional, cognitive and organizational) to shed light on the determinants of business cooperation with other organizations. It is also examined whetherthis cooperation is a determining factor for business innovation (innovation networks), drawing a distinction between technological and non-technological innovations. Design/methodology/approach The study has a quantitative approach; it analyzes the case of 312 companies in a cluster of agribusinesses in an emerging economy (Chile). The proposal model and its interrelations are tested with exploratory factor analysis, confirmatory factor analysis and structural equation modeling. Findings The results show that cognitive-organizational proximity is a positive determinant of business cooperation with other organizations, whereas social and institutional proximity are negative determinants. It is also established that business cooperation is a positive determinant of business innovation. It is more relevant in the case of technological innovation unlike non-technological innovations. In addition, it is noted that business cooperation levels are lower in micro-enterprises, a result that differs from developed countries. Practical implications For business managers, it is best to cooperate with companies that are similar in terms of cognitive and organizational levels for innovation. At the same time, it is necessary develop strategies to reduce the social and institutional barriers to cooperation, especially in the agribusiness sector. Originality/value The contributions of the study are as follows: an in-depth quantitative examination of the relationships of various non-spatial proximities as determinants of business cooperation; an analysis of whether business cooperation with other organizations is a determining factor for business innovation, distinguishing between technological and non-technological innovation; and testing these relationships in the context of agribusiness in an emerging economy such as Chile’s because most of studies are related to high-tech sector and developed economies.

Quality management, innovation capability and firm performance

2019 ◽  
Vol 31 (6) ◽  
pp. 1003-1027 ◽  
Author(s):  
Saumyaranjan Sahoo
Keyword(s):  
Firm Performance ◽  
Quality Management ◽  
Operations Management ◽  
Manufacturing Firms ◽  
Equation Modeling ◽  
Future Research ◽  
Innovation Capability ◽  
Manufacturing Companies ◽  
Senior Managers ◽  
Content Type

Purpose Many organizations are facing competitive challenges due to the rapid pace of technological changes. Both quality management (QM) and innovation are the competitive factors that are intensely embedded into organizational products, services and processes. In order to achieve higher firm performance, manufacturing firms are needed to adopt QM practices as well as develop innovation capability. Therefore, the purpose of this paper is to examine the relationship among QM, innovation capability (IC) and firm performance under both mediation and moderation models using structural equation modeling. Design/methodology/approach The approach of this study is quantitative. The data used to test the hypotheses were gathered from Indian small- and medium-sized enterprises (SMEs) interviewing senior managers with a structured questionnaire. These hypothesized relationships are tested with data collected from 134 Indian manufacturing firms by using SPSS and AMOS statistical software. Findings Overall, the findings clearly show that QM through the firm’s IC is indirectly associated with a firm’s business performance. It supported the notion that QM practices encourage the definition of innovation strategies of products and processes within a manufacturing setup, which positively affected different aspects of firm performance. More importantly, this study supports the findings of past studies that questioned the role of QM practices in improving a firm’s IC. Research limitations/implications Some limitations of this study include: although a cross-sectional survey has been applied, the research does not permit us to account for the lag between implementation and performance. It also brings the opinion of a limited number of senior managers of Indian manufacturing SMEs, and hence both the sample size could be increased and the nationality of the respondent/responding firms could be expanded for future research. Practical implications In light of the obtained results, several recommendations were introduced to assist decision makers in manufacturing companies. The paper contains suggestions for improving manufacturing firm’s performance through developing IC and adopting QM practices. Originality/value This paper extends theoretical contribution in production and operations management literature, highlighting how QM practices and firm’s IC have to interact in determining an organization’s success and sustaining its global competitiveness.

scholarly journals Mediation analysis in partial least squares path modeling

2016 ◽  
Vol 116 (9) ◽  
pp. 1849-1864 ◽  
Author(s):  
Christian Nitzl ◽  
Jose L. Roldan ◽  
Gabriel Cepeda
Keyword(s):  
Least Squares ◽  
Partial Least Squares ◽  
Mediation Analysis ◽  
Structural Equation ◽  
Equation Modeling ◽  
Path Modeling ◽  
Mediation Effects ◽  
Content Type ◽  
Mediated Effects ◽  
Wide Range

Purpose Indirect or mediated effects constitute a type of relationship between constructs that often occurs in partial least squares (PLS) path modeling. Over the past few years, the methods for testing mediation have become more sophisticated. However, many researchers continue to use outdated methods to test mediating effects in PLS, which can lead to erroneous results. One reason for the use of outdated methods or even the lack of their use altogether is that no systematic tutorials on PLS exist that draw on the newest statistical findings. The paper aims to discuss these issues. Design/methodology/approach This study illustrates the state-of-the-art use of mediation analysis in the context of PLS-structural equation modeling (SEM). Findings This study facilitates the adoption of modern procedures in PLS-SEM by challenging the conventional approach to mediation analysis and providing more accurate alternatives. In addition, the authors propose a decision tree and classification of mediation effects. Originality/value The recommended approach offers a wide range of testing options (e.g. multiple mediators) that go beyond simple mediation analysis alternatives, helping researchers discuss their studies in a more accurate way.

Strategic customer service orientation, lean manufacturing practices and performance outcomes

2014 ◽  
Vol 25 (5) ◽  
pp. 699-723 ◽  
Author(s):  
Paul Hong ◽  
Ma Ga (Mark) Yang ◽  
David D. Dobrzykowski
Keyword(s):  
Customer Service ◽  
Lean Manufacturing ◽  
Performance Outcomes ◽  
Manufacturing Firms ◽  
Equation Modeling ◽  
High Tech ◽  
Service Orientation ◽  
Content Type ◽  
Lean Practices ◽  
And Performance

Purpose – The notion of achieving competitive advantage using a strategic customer service orientation (SCSO) has received increased research attention. The purpose of this paper is to examine the concept of SCSO in the context of rapidly changing competitive market environments. An organization-wide SCSO can be implemented through lean manufacturing practices to achieve favorable operational and business performances (BPs). Design/methodology/approach – This study employs survey methodology to examine a research model that theorizes eight hypotheses with respect to the relationships among SCSO, human and technical lean practices, and performance outcomes (operational and BPs). Data from 571 firms participating in the International Manufacturing Strategy Survey (IMSS) IV are analyzed using structural equation modeling (AMOS 20). Findings – The findings suggest that firms with a SCSO implement both human and technical aspects of lean manufacturing practices leading to better performance results. The findings also indicate that performance outcomes are indirectly influenced through the combined efforts of technical and human lean manufacturing practices. Research limitations/implications – Generalizations here are limited to manufacturing firms. SCSO beyond manufacturing firms like healthcare or high-tech organizations that implement lean practices in response to a SCSO have yet to be examined and provide fertile opportunities for future research. Practical implications – These findings suggest practical insight into how to integrate service-driven value creation and delivery for achieving both cost effectiveness and quality performance outcomes. Originality/value – The examination of the consequences of SCSO in manufacturing firms from multiple countries is a novel contribution in the field, as is the examination of technical and human lean practices. It comes at a time when manufacturing firms increasingly recognize the value of services for global competitiveness.

Innovation performance of Italian manufacturing firms

2017 ◽  
Vol 20 (3) ◽  
pp. 428-445 ◽  
Author(s):  
Fabio de Oliveira Paula ◽  
Jorge Ferreira da Silva
Keyword(s):  
Structural Equation ◽  
Manufacturing Industry ◽  
Manufacturing Firms ◽  
Innovation Performance ◽  
Equation Modeling ◽  
High Tech ◽  
Content Type ◽  
External Knowledge ◽  
Italian Manufacturing Firms ◽  
Internal Knowledge

Purpose The purpose of this paper is to explain how internal and external sources of knowledge influence the innovation performance (IP) in Italian manufacturing firms and how different these relationships are for low-technology (LT) and high-technology (HT) firms. Design/methodology/approach The study proposed a model relating external knowledge, internal knowledge and IP that was tested using Bayesian structural equation modeling with a sample of Italian manufacturing firms of Community Innovation Survey 2010. It was run separately for high-tech firms (including HT and medium-HT aggregations of manufacturing industries of NACE Rev. 2) and low-tech firms (including LT and medium-LT aggregations). Findings The results showed a difference between high-tech and low-tech manufacturing firms in Italy. The investments to leverage internal knowledge sources are important for high-techs and not significant for low-techs. On the other hand, the level of external KS improves significantly the IP of low-techs and has a negative effect for high-techs. The level of absorptive capacity is central to improve the positive effect of the external knowledge on the IP for all firms, but it is still underdeveloped. Originality/value The effects of 2008 economic crisis hit the Italian manufacturing industry specifically hard and are still felt. Innovation is a solution for firms’ growth and Italy is considered a below-average innovator country in Europe. The study could identify important gaps in Italian manufacturing firms that hinder their innovative performance improvement.

Relationships among advanced manufacturing technology, innovation, export, and firm performance

Kybernetes ◽  
2018 ◽  
Vol 47 (9) ◽  
pp. 1836-1856 ◽  
Author(s):  
Serkan Altuntas ◽  
Omer Cinar ◽  
Selahattin Kaynak
Keyword(s):  
Firm Performance ◽  
Conceptual Model ◽  
Manufacturing Firms ◽  
Manufacturing Technology ◽  
Equation Modeling ◽  
Advanced Manufacturing Technology ◽  
Advanced Manufacturing ◽  
Manufacturing Companies ◽  
Content Type ◽  
The Relationship

Purpose The purpose of this study is to find the relationships among advanced manufacturing technology (AMT), innovation, export and firm performance by using data obtained from 310 Turkish manufacturing firms. Design/methodology/approach A survey study was performed to obtain data from manufacturing firms. Multiple-item scales were adapted from the literature to conduct the survey in this study. Data were collected from five cities located in the Southeastern Anatolia Region in Turkey (Gaziantep, Adiyaman, Kilis, Diyarbakir and Sanliurfa). Structural equation modeling was utilized to investigate the relationships among AMT, innovation, export and firm performance in Turkish manufacturing firms operating in several industries. The direct and indirect relations between these variables are examined in the proposed conceptual model. In addition, the complex relations including in the proposed model are assessed in detail through the mediation analysis. Findings Six of the proposed ten hypotheses related to manufacturers are validated by the empirical evidence from manufacturing companies in Turkey. Significant findings obtained in this study include the following: there are strong positive associations between the use of AMT and innovation and between export and firm performance. In addition, innovation mediates the relationship between AMT and firm performance and between AMT and export. Finally, export mediates the relationship between AMT and firm performance and between innovation and firm performance. It is expected that the results obtained from this empirical analysis will help decision makers and managers to construct a good technology and production management strategy for manufacturing systems. Originality/value In this study, a novel conceptual model is proposed to examine the relationships among AMT, innovation, export and firm performance via the use of survey responses from 310 Turkish manufacturing firms. To the authors’ best knowledge, this is the first study that proposes such a conceptual model in the literature.

Supply chain learning and organizational performance: evidence from Chinese manufacturing firms

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Zia Ul Haq
Keyword(s):  
Supply Chain ◽  
Firm Performance ◽  
Financial Performance ◽  
Organizational Performance ◽  
Manufacturing Firms ◽  
Operational Performance ◽  
Equation Modeling ◽  
Content Type ◽  
Different Types ◽  
The Relationship

Purpose Despite the significance, no study examines the relationship between supply chain (SC) learning components and focal firm performance. This study aims to investigate different types of SC learning (supplier, customer and internal learning) and their influence on the focal firm’s operational and financial performance. Design/methodology/approach Grounded in knowledge-based view and absorptive capacity theory, this study applies structural equation modeling to test the conceptual model based on data collected from 213 manufacturing firms in China. Findings The findings indicate that supplier and customer learning improve internal learning. Customer and internal learning have direct influence on operational performance, whereas internal learning mediates the relationship between supplier learning and operational performance. Moreover, all three dimensions of SC learning do not affect financial performance directly but operational performance plays the mediating role in their relationship. Research limitations/implications This study only investigates SC learning outcomes without exploring its antecedents. In addition, SC learning and their impacts on firm performance are tested empirically with cross-sectional data collected only from manufacturing firms in China. Practical implications The findings furnish managers to seek for competitive advantages through different types of SC learning. Originality/value This study offers new insights concerning the performance implications of SC learning. It divides SC learning into dimensions and shows the distinctive impacts of these dimensions on focal firm’s performance using an empirical method.

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