scholarly journals Quality ambidexterity, competitive strategies, and financial performance

2017 ◽  
Vol 37 (10) ◽  
pp. 1496-1519 ◽  
Author(s):  
Ahmad Herzallah ◽  
Leopoldo J. Gutierrez-Gutierrez ◽  
Juan Francisco Munoz Rosas

Purpose The purpose of this paper is to examine the relationship between quality ambidexterity (QAMB), competitive strategies (cost leadership, differentiation, and focus), and firm performance in Palestinian industry, and to analyze the combination of quality exploitation (QEI) and quality exploration (QER) (QAMB) associated with the different levels of each competitive strategy. Design/methodology/approach Using data collected through a survey of 205 Palestinian industrial firms, the study conducted structural equation modeling to test the proposed relationships. Additional statistical analyses were applied to the combinations of QEI and QER for each competitive strategy. Findings The results show a positive and significant relationship between QAMB and three competitive strategies, and between competitive strategies and financial performance, focus strategy excepted. Balanced combination with similar levels of QEI and QER is found to be more suitable for higher levels of competitive strategies implementation, whereas an excess of QER over QEI is associated with lower levels of strategies implementation. Research limitations/implications Although Palestine has two regions, the West Bank and the Gaza Strip, all survey respondents were from the West Bank. The data used in this study come from the industrial sector only. Originality/value This study is the first empirical test to examine the impact of QAMB on financial performance through competitive strategies. The study results may help managers to implement QEI and QER practices in order to allocate resources effectively and ultimately improve financial performance.

2017 ◽  
Vol 37 (9) ◽  
pp. 1142-1163 ◽  
Author(s):  
Frank Wiengarten ◽  
Muhammad Usman Ahmed ◽  
Annachiara Longoni ◽  
Mark Pagell ◽  
Brian Fynes

Purpose The purpose of this paper is to empirically investigate the impact of complexity on the triple bottom line by applying information-processing theory. Specifically, the paper assesses the impact of internal manufacturing complexity on environmental, social, and financial performance. Furthermore, the paper assesses the moderating role of connectivity and shared schema in reducing the potential negative impact of complexity on performance. Design/methodology/approach Multi-country survey data collected through the Global Manufacturing Research Group were utilized to test the hypotheses. The authors used structural equation modeling to test the measurement and initial structural model. Furthermore, to test the proposed moderating hypotheses, the authors applied the latent moderated structural equations approach. Findings The results indicate that while complexity has a negative impact on environmental and social performance, it does not significantly affect financial performance. Furthermore, this negative impact can be reduced, to some extent, through connectivity; however, shared schema does not significantly impact on the complexity-performance relationship. Originality/value This study presents a comprehensive analysis of the impact of complexity on sustainability. Furthermore, it provides managerial applications as it proposes specific tools to deal with the potential negative influences of complexity.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Taghreed Al Dari ◽  
Fauzia Jabeen ◽  
Matloub Hussain ◽  
Dana Al Khawaja

Purpose This study aims to develop a theoretical framework of the impact of clan and hierarchy cultures and knowledge technological capabilities on organizational learning. Design/methodology/approach A questionnaire survey was used to collect data from 693 employees working in knowledge management centers in various law and enforcement units in the United Arab Emirates (UAE). Structural equation modeling was used to test the relationships between the variables. Findings The findings show that the clan culture had a significant negative effect on organizational learning. However, hierarchy culture and knowledge technological capabilities had a significant positive impact in predicting organizational learning behavior. Research limitations/implications The study focuses on a specific type of public organization only, which somewhat limits the generalizability of the research results. Second, as the study was cross-sectional, the causal relationships could not be inferred directly. The study results will help policymakers create a learning organization by examining the impact of organizational culture and knowledge of technological capabilities. Originality/value This paper has added knowledge about the relationship between culture types, knowledge technological capabilities and organizational learning, particularly in the UAE. This study helps to bridge the gap in research on culture and knowledge technological capabilities and organizational learning.


2018 ◽  
Vol 32 (4) ◽  
pp. 387-399 ◽  
Author(s):  
Miguel Ángel Moliner ◽  
Diego Monferrer-Tirado ◽  
Marta Estrada-Guillén

Purpose The purpose of this paper is to analyze the impact of the customer engagement and customer self-brand connection on customer advocacy and firms’ financial performance. The research focuses on the financial sector and studies a complex organization with a uniform strategy, but which attends the public in different centers (bank branches). Design/methodology/approach A theoretical model of effects is tested using dyadic methodology, with 225 dyads (bank branch manager – average of five customers). The authors use structural equation modeling (EQS6.1) to test the relationships. Findings The results corroborate the hypotheses, with the exception of the influence of customer self-brand connection on financial performance. These analyses show that in the banking sector, where the intensive use of new information and technologies has led to a reduction in direct physical contact with the customer, the off-line experience continues to have a notable economic impact. Furthermore, investment in the brand from an experiential approach determines customer advocacy. Originality/value The contribution of this paper is twofold. This research analyzes from a theoretical and empirical perspective the impact of the customer engagement and customer self-brand connection on customer advocacy and firms’ financial performance.


2018 ◽  
Vol 29 (2) ◽  
pp. 301-328 ◽  
Author(s):  
Laure Ambroise ◽  
Isabelle Prim-Allaz ◽  
Christine Teyssier ◽  
Sophie Peillon

Purpose The purpose of this paper is to examine the environment-strategy-structure fit in the context of industrial servitization and its impact on the profitability of manufacturing SMEs. Design/methodology/approach Data were collected from face-to-face interviews with the CEOs of 184 French manufacturing SMEs. These primary data were complemented by the indicators extracted from a financial database to ensure objective measures of financial performance. Analyses were conducted by means of partial least squares structural equation modeling. Findings The research tests the impact of the organizational design (customer interface, service delivery system and service culture (SC)) on financial performance. It also tests the moderating effect on this relationship of servitization strategies adopted by the firm (added services (AS), activities reconfiguration (AR) and business model reconfiguration (BMR)) and the environment in which the firm is situated (industry dynamism, competitive intensity and industry munificence). Research limitations/implications This study considers the coalescence of the environment-strategy-structure to be a driver of firm performance in the context of industrial firms’ servitization. Three specific servitization strategies (AS, AR and BMR) are suggested based on the service offering’s impact on the customer’s activity chain or business model. Practical implications The research proposes some optimal organizational design depending on servitization strategy and environmental factors; for example, SC has a strong impact on financial performance when BMR is adopted. Originality/value This empirical study is based on an extended sample of 184 SMEs and provides quantitative support for the claim that good alignment between strategy and organizational design based on environmental factors increases profitability.


2020 ◽  
Vol 17 (1/2) ◽  
pp. 79-95
Author(s):  
Praveen Kulkarni ◽  
Rohit Mutkekar ◽  
Sanjeev Ingalagi

Purpose Start-ups are the new avenues for innovation and employment. Strategic management is critical for employee engagement and skill development of start-ups. This study aims to understand the impact of strategic management on employee engagement and skill development. Design/methodology/approach The study attempts to identify principal factors of strategic management influencing employee engagement and skill development. Structural equation modeling has been used to understand effects of the study. Findings The study results have shown the challenges concerning employee skill development and reflected on importance of the employee engagement programmes for the growth of the human resource in the start-ups. Research limitations/implications The study has confined to strategic management for employee engagement and skill development. However, studies related to challenges encountered by start-ups in the specific areas of marketing, operations and finance, etc. would provide more detailed impact on the growth of start-ups. Practical implications This study provides an insight into strategic management for employee engagement and skill development. The results would provide directions for improving strategy management from the perspective of employee engagement and skill development. Social implications The study on start-ups provides a direction to the owners of start-ups to understand the importance of strategic management and human resource management for building strong enterprising which can provide employment opportunity for the youth of the nation and improve the society at large. Originality/value This paper is an attempt to provide directions for managing challenges from the perspective of employees’ engagement and skill development, which is essential for growth and sustainability in the future.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Julen Castillo Apraiz ◽  
Nicole Franziska Richter ◽  
Jesus Matey de Antonio ◽  
Siegfried Gudergan

Purpose This study aims to advance understanding about quality management (QM) practices by clarifying how competitive strategy conditions the impacts of exploitative and explorative QM practices on performance. Design/methodology/approach The authors apply partial least squares structural equation modeling to data from a sample of German pharmaceutical firms. Findings The results show that the impact of exploitative and explorative QM practices on firm performance is contingent on the competitive strategy pursued. Explorative QM practices are significantly more relevant for firms following a differentiation strategy, whereas exploitative QM practices are significantly more relevant for cost leaders. Furthermore, for strategically ambidextrous firms that follow simultaneously a cost and a differentiation focus, the interplay of the two QM practices matters. Originality/value This paper contributes to understanding which kind of management practices, exploitative and/or explorative, have greater performance impacts under certain competitive strategy conditions.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Robert J. Harrington ◽  
Michael C. Ottenbacher ◽  
Laura Schmidt ◽  
Jessica C. Murray ◽  
Burkhard von Freyberg

Purpose Based on the Oktoberfest context and memory-dominant logic (MDL), the purpose of the study included assessing drivers of the perceptions of experience uniqueness; if these drivers and experience uniqueness perceptions transformed in memorable experiences; and if memorable experiences translated into enhanced life satisfaction. Based on these relationships, a typology and theory extension is provided integrating practical examples. Design/methodology/approach A five-factor model was tested using exploratory structural equation modeling and structural equation modeling; the factors included food and beverage quality; connectedness; experience uniqueness; meaningfulness and memorability; and life satisfaction. Findings Guests connectedness impacted life satisfaction perceptions. Positive perceptions of the experience uniqueness resulted in higher memorability. Food and beverage quality impacted both memorability and life satisfaction. Higher memorability resulted in higher life satisfaction. Attendee nationality impacted the relationship among several of the study’s factors. Research limitations/implications Progress was made on assessing the MDL concepts and translating them into quantitative values. Study results supported the impact of connectedness and product quality on perceptions of Oktoberfest experience uniqueness along with the impact of meaningfulness of the experience on life satisfaction perceptions. The authors acknowledged limitations because of one Oktoberfest beer tent focus and the weaknesses of survey methodology, limiting pre- and post-activity reporting and future investigation of moderating effects. Practical implications The consideration of higher order impacts (i.e. life satisfaction) is needed when delivering experiences and to entice loyalty and social media apostles. Consumers’ experience connectedness with high-quality perceptions and unique service design are likely to translate to memorable experiences, leading to life satisfaction perceptions. The concept of creating the experience “with” the customer appears to be a key aspect of memorability. Originality/value These results tested aspects of MDL and a typology emerged of ideal types as a modified MDL framework driven by two continua: transactional vs experiential quality and experiences designed “to” vs “with” customers.


Author(s):  
Kelly Weeks ◽  
Alfred Guiffrida ◽  
Mahdi Safa

Purpose The purpose of this paper is to extend the developing body of knowledge on supply chain performance by addressing the impact of resource commitment (RC), product route efficiency (PRE), and manufacturing flexibility (MF) on a firm’s financial performance (FP) has a direct impact on supply chain operations. Design/methodology/approach Survey questionnaires were developed in conjunction with literature guidance. Exploratory and confirmatory factor analysis was used in conjunction with structural equation modeling to give a robust analysis of the problem setting. Findings Discoveries herein indicate that committing resources in itself is insufficient to adequately increase FP over the long term. However, the mediating variables of MF and PRE were found to significantly improve a firm’s bottom line. Originality/value Prior research has been somewhat lacking and inconsistent with regards to the nature of causal and mediating relationships found between RC, PRE, MF, and a firm’s financial performance. Given the increasing global nature of competition, understanding the relationships between potential factors that could positively impact a firm’s FP has a large potential direct impact and benefit on supply chain operations.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Javier Gonzalez-Benito ◽  
Isabel Suárez-González ◽  
Daniel González-Sánchez

PurposeCompetitive strategy is one of the key factors traditionally related to performance, but research explaining the mechanisms through which this strategy improves business results is scant. This study aims to shed light on this relationship by analyzing human resource management (HRM) strategy as an essential tool for transforming business strategy into results.Design/methodology/approachFocusing on two generic competitive strategies, the authors establish hypotheses on the need for alignment among four echelons: business strategy, HRM system objectives, HRM system capabilities and business performance. The authors test these hypotheses with structural equation modeling techniques using data provided by 204 industrial companies.FindingsThe results show that to get the most out of a competitive strategy based on quality differentiation, HRM system objectives and capabilities must be focussed on quality. In the same way, a competitive strategy based on innovation differentiation requires HRM system objectives and capabilities focussed on flexibility to achieve the maximum impact on performance. In this second case, alignment is fundamental in low dynamic environments.Originality/valueThis research not only provides additional evidence for the strategic relevance of the human resources (HR) function but also reveals the potential benefits of focusing on objectives and capabilities rather than on practices. Moreover, it shows that the role of HRM objectives and capabilities in the implementation of a competitive strategy can be shaped by factors beyond the company's control, such as environmental dynamism.


2020 ◽  
Vol 12 (6) ◽  
pp. 2407 ◽  
Author(s):  
Jaffar Abbas ◽  
Qingyu Zhang ◽  
Iftikhar Hussain ◽  
Sabahat Akram ◽  
Aneeqa Afaq ◽  
...  

This current study is among the very few investigations, which seeks the relationship between knowledge management and sustainable organizational innovation in garment business firms. This investigation focused on examining how organizational learning mediates the relationship between knowledge management and sustainable organizational innovation. This research establishes that knowledge management and organizational innovation procedures are integral parts of the progress and survival of the organizations. The received data of this population reports on the garment firms, operating their businesses in Lahore and Gujranwala. The study applied a stratified random sampling method for data collection and employed structural equation modeling (SEM) to examine the hypothesized relationships. The results specify that knowledge management shows a significant positive association with organizational learning, which in turn reveals a positive linkage to sustainable organizational innovation in SMEs of the garment industry. The study results also specify that organizational learning mediates the relationship between knowledge management and sustainable organizational innovation. This research survey identifies the significance of knowledge management and organizational learning in executing the process of organizational innovation, and it helps business managers to understand organizational learning as a mediator, which in turn indicates the benefits of knowledge management in achieving sustainable organizational innovation. This review provides an empirical indication of original data to investigate the linkage between knowledge management, sustainable innovation process, and organizational learning culture in the Pakistani garment sector. The generalizability of the study fallouts is restricted to the garment industry, and it offers valuable insights for imminent researchers.


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