scholarly journals Global offshoring portfolio diversity and performance implications

Author(s):  
Nidthida Lin ◽  
Hao Tan ◽  
Stephen Chen

Purpose The purpose of this paper is to examine how three key dimensions of a firm’s offshoring portfolio – location diversity, functional diversity and governance mode – affect the financial and innovation outcomes of offshoring. Design/methodology/approach The authors investigate the relationships between the diversity of a firm’s offshoring portfolio and its offshoring outcomes using a sample of US, European and Asia Pacific firms engaging in offshoring activities. Findings The authors found that: location diversity shows a significant “flipped S-shape” relationship with innovation outcomes, but has a negative impact on financial outcomes, functional diversity has a significant and positive effect on innovation outcome and the use of an outsourcing governance mode significantly moderates these relationships, such that the degree of offshore outsourcing weakens some of these effects. Originality/value The authors conclude that firms which strategically coordinate all three dimensions of their offshoring portfolio are more likely to achieve better innovation or financial outcomes from their use of offshoring in global supply chain and sourcing.

2016 ◽  
Vol 8 (3) ◽  
pp. 376-389 ◽  
Author(s):  
Pranab Kumar Pani ◽  
Pallavi Kishore

Purpose – There is growing evidence that learning is faster, measurably better and more productive in a classroom setting when a student attends classes regularly. Each student brings in his/her experience, skills, and unique learning styles to a class – thus a classroom environment can potentially create positive externalities through which a student can gain substantially from various strengths of his/her peers. However, students do remain absent from their classes for a variety of reasons. One of the measurable effects of regular non-attendance in a university class, where students from various cultures and regions interact, is the academic performance. The purpose of this paper is to determine if there is any potential causal link between absenteeism (attendance) and academic performance. Design/methodology/approach – Data were culled from the records of three batches of students in a British university campus in the Middle East. Quantile regression methods were used to establish the causal relationship between absenteeism and academic performance. Findings – A quantile regression analysis reveals that absenteeism has negative impact on academic performance. This also suggests that low performers are worse affected by absenteeism as compared to the high performers. Research limitations/implications – Inclusion of some other factors, such as study habits, additional hours spent on quantitative modules, student’s ethnicity background, particularly in the context of United Arab Emirates, could have emboldened the robustness of the study. Non-availability or paucity of this information, to some degree, has limited the conclusions of this study. Originality/value – Proponents of mandatory attendance argue that there is a positive correlation between attendance and performance. But, one very important issue which gets overlooked is who actually benefits more by attending classes – are the shirkers who have a poor attendance record or the ones who are more sincere, more regular, and active participants in a class? This study uses quantile regression analysis to address this issue.


2020 ◽  
Vol 49 (9) ◽  
pp. 1859-1877
Author(s):  
José Fernández-Menéndez ◽  
Óscar Rodríguez-Ruiz ◽  
José-Ignacio López-Sánchez ◽  
María Isabel Delgado-Piña

PurposeThe purpose of this paper is to study how job reductions affect product innovation and marketing innovation in a sample of 2,034 Spanish manufacturing firms in the period 2007–2014.Design/methodology/approachPoisson and logistic regression models with random effects were used to analyse the impact of downsizing on some innovation outcomes of firms.FindingsThe results of this research show that the stressful measure of job reductions may have unexpected consequences, stimulating innovation. However downsizing combined with radical organisational changes such as new equipment, techniques or processes seems to have a negative impact on product and marketing innovation.Originality/valueThis research has two original features. First, it explores the unconventional direction of causality from the planned elimination of jobs to innovation outputs. Secondly, the paper looks at the combined effect of downsizing and other restructuring measures on different types of innovation. Following the threat-rigidity theory, we assume that this combination represents a major threat for survivors that leads to lower levels of product and marketing innovation.


2020 ◽  
Vol 20 (3) ◽  
pp. 401-427
Author(s):  
Babatunji Samuel Adedeji ◽  
Tze San Ong ◽  
Md Uzir Hossain Uzir ◽  
Abu Bakar Abdul Hamid

Purpose The non-existence of the corporate governance (CG) concept for practices by non-financial medium-sized firms (MSFs) in Nigeria informed. This study aims to determine whether CG practices influence firms’ performance and whether sustainability initiative (SI) mediates the relationship between CG and MSFs’ performance in Nigeria. Design/methodology/approach A total of 300 firms were selected on convenience sampling basis from South Western Nigeria using a structured questionnaire. The authors used Statistical Package for Social Sciences for exploratory data analysis and hypotheses were tested using covariance-based structural equation modelling. Findings The results show that CG has a significant positive effect on performance [financial performance (FNP) and non-financial performance (NFP)] and SI. SI has a mixed impact on performance, e.g. a significant positive impact on NFP but insignificant negative impact on FNP. Similarly, SI has a combined mediating effect in the relationship between CG and performance, e.g. fully mediates CG → NFP and does not mediate CG → FNP. Firms are to invest in social and environmental initiatives substantially. CG codes will complement the International Financial Reporting Standards for MSFs. Research limitations/implications This study supports the assumptions of theories (institutional, stakeholder and agency) as the basis for the usage of multiple approaches to determine the outcome of hypotheses, especially in developing climes. Practical implications The study contributes to CG and performance literature by examining the mediating effects of SI. The paper also shows the necessity to emphasise NFP aspect. Policymakers should evolve CG codes to encourage stakeholders to believe more in the corporate existence of MSFs for strengthening capital-base and quality personnel engagement. Originality/value To the best of the authors’ knowledge, this is one of the first empirical attempts showing the evidence on the relationship between CG and NFP in Nigeria.


2020 ◽  
Vol 13 (3) ◽  
pp. 393-411 ◽  
Author(s):  
C. Muhammad Siddique ◽  
Hinna Fatima Siddique ◽  
Shama Urooj Siddique

PurposeThis study has two primary objectives: (1) to shed light on the mechanism by which authoritarian leadership unfolds its impact on such critical aspects of subordinates' work lives as job satisfaction and in-role performance and (2) to identify the moderating conditions which place limits on the impact of authoritarian leadership on work outcomes.Design/methodology/approachData were collected on 552 supervisor-subordinate dyads from the United Arab Emirates. A series of research hypotheses were tested using a mixed-method statistical approach, including CFA and moderated hierarchical regression analysis.FindingsAs predicted, authoritarian leadership exerts negative impact on subordinates' job satisfaction and performance through poor quality LMX and weak employee organizational embeddedness. Both LMX and employee embeddedness mediated the negative relationship between authoritarian leadership and outcome measures while power distance moderated the relationship of authoritarian leadership with LMX and employee organizational embeddedness. Low power distance orientation was found to exacerbate the negative impact of authoritarian leadership on the quality of both LMX relationships and employee embeddedness.Research limitations/implicationsThe study shares limitations of most studies cast in the survey research design.Practical implicationsThe findings underscore the importance of work environment in nurturing high quality LMX relationships and employee organizational embeddedness to buffer the negative effect of authoritarian leadership on subordinates' job satisfaction and performance. In high power distance cultures where workplace inequality is largely rationalized, subordinates who perceive their leaders as authoritarian tend to show low job satisfaction and poor in-role performance. These findings illustrate the importance of management intervention in the early stage of recruitment and selection to attract managers receptive to egalitarian leadership approaches who can equip subordinates with appropriate resources to enhance their job satisfaction and performance outcomes.Originality/valueThe study offers valuable new insights into the mechanism by which authoritarian leadership influences work outcomes in a high-power distance culture. It represents first systematic effort in the Middle Eastern context to identify the conditions that mediate the linkage between authoritarian leadership and work outcomes. The study adds value to the literature by investigating the moderating role of power distance at the individual level of analysis. It detects significant differences in subordinates' perception of power inequality in the workplace in a culture viewed as a high-power distance culture and illustrates how such differences in turn shape the quality of LMX and employee organizational embeddedness.


2015 ◽  
Vol 26 (5) ◽  
pp. 660-677 ◽  
Author(s):  
Safal Batra ◽  
Sunil Sharma ◽  
Mukund R Dixit ◽  
Neharika Vohra ◽  
Vishal K Gupta

Purpose – Industry appropriability – the degree to which firms in an industry can appropriate benefits from their innovations – is a crucial dimension of industry environment. Small and medium manufacturing enterprises (manufacturing SMEs), because of their limited resource base, tend to be especially sensitive to the appropriability conditions in their industry. The purpose of this paper is to understand the influence of industry appropriability on firm outcomes (innovativeness and performance), and posits technology orientation as a dynamic capability that helps firms overcome appropriability barriers in their industry. Design/methodology/approach – Data were collected from 162 manufacturing SMEs in India. Multiple linear regression analysis was used to test the proposed hypotheses. Findings – This study reveals that the perceived level of appropriability of manufacturing SMEs impacts their innovativeness. Further, findings also support technology orientation as a crucial firm-specific characteristic which enables firms to overcome unfavorable appropriability conditions. Technology orientation plays a significant role in mitigating the negative impact of lower appropriability conditions. Even when the patent regime is unfavorable, technology-oriented firms are able to innovate and perform better. Practical implications – The findings suggest technology orientation as a strategic mechanism for manufacturing SMEs to respond to conditions of unfavorable appropriability regime. Originality/value – This study elaborates the benefits of integrating industry-level and firm-level characteristics. Specifically, an attempt was made to extend the existing research on industry appropriability by bringing in the contingent effect of technology orientation. The context of manufacturing SMEs yielded several interesting insights.


2016 ◽  
Vol 50 (1/2) ◽  
pp. 29-57 ◽  
Author(s):  
James R. Brown ◽  
Scott K. Weaven ◽  
Rajiv P Dant ◽  
Jody L Crosno

Purpose – The aim of this study is to explore possible contingent variables that might explain these twin contradictory effects of marketing channel governance. Franchisors govern their systems to limit opportunism and enhance performance. However, the exact opposite often occurs. Design/methodology/approach – This paper develops an integrative conceptual model of franchisor governance of its franchisees. This model is tested empirically with data collected from 197 Australian franchisees. Findings – Under strong relational norms, goal congruence and outcome monitoring limit franchisee opportunism; compliance enhances franchisee performance, while opportunism reduces it. With weaker norms, outcome monitoring facilitates compliance, and goal congruence boosts franchisee performance, as does franchisee opportunism. However, norms fail to mitigate behavioral monitoring’s negative impact on opportunism. Research limitations/implications – This research confirms the positive and negative effects of franchisor governance. It also shows that norms can reverse the positive link between franchisee opportunism and performance. It additionally illustrates how goal congruence and compliance can limit opportunism and boost performance. Future research should refine this study’s measures, incorporate additional constructs into the conceptual model and test the generalizability of these findings in lesser-developed economies. Practical implications – This research shows that monitoring has both positive and negative effects on franchisee opportunism and performance. To avoid monitoring’s adverse effects, franchisors are advised to enhance goal congruence, boost franchisee compliance and develop strong relational norms. Originality/value – This paper shows that goal congruence, as well as franchisor outcome monitoring, can mitigate the negative effects of franchisor behavioral monitoring on franchisee opportunism, as do relational norms.


Author(s):  
Robert M. Wiseman ◽  
Hadi Faqihi

Purpose The purpose of this paper is to enrich the finding by Aguinis et al. (2018) that there is little overlap between the extremes of firm performance and the extremes of CEO pay using a novel approach to characterize the distribution of pay and performance. The authors aim to shift the focus of compensation researchers from fruitlessly trying to link pay to performance to theory-rich accounts of pay that take into consideration the idiosyncratically motivated and socially embedded nature of CEO compensation. Design/methodology/approach The authors’ approach in this commentary is conceptual. They synthesize compensation literature from different fields such as economics, finance, sociology, strategic management and corporate law, as well as the empirical findings from the focal paper to support their characterization of the current state of the literature and future directions it should take. Findings The authors synthesize discussion of CEO pay down to three dimensions of CEO responsibilities and motivations. They argue that a realistic pay design should take into account that CEOs have limited control over performance, they are accountable to multiple stakeholders and they are motivated by financial as well as nonfinancial incentives. Originality/value The commentary presents researchers with high-order framing of CEO pay that goes beyond debating over methodology or narrowly focusing on limited behavioral drivers of pay setting. Instead, the authors encourage researchers to take advantage of their three-legged framework to theorize about CEO pay.


2014 ◽  
Vol 34 (11) ◽  
pp. 1440-1462 ◽  
Author(s):  
Yina Li ◽  
Fei Ye ◽  
Chwen Sheu

Purpose – The purpose of this paper is to examine the effects of social resources on promoting information sharing practice and, thereby, improving firm performance. In particular, the authors are interested in addressing the following research questions. First, can the development of social capital (expressed in three dimensions: cognitive capital, structural capital, and relational capital) promote the content and quality of supply chain information sharing? Second, what are the relationships among the three social capital dimensions in the context of information sharing? Third, what are the effects of shared information (content and quality) on firm performance? Design/methodology/approach – A theoretical model and several research hypotheses, well-grounded in the western literature, are developed. Data from 272 manufacturers in China were collected to test the model and the hypotheses. Structural equation modeling was used for statistical analysis. Findings – The statistical results reveal that each social capital dimension has different effects on information sharing and performance. Namely, relational capital and cognitive capital have significant positive influences on information sharing. Structural capital has no direct positive impact on information sharing, but it displays indirect affects through the other two social capital dimensions. Furthermore, both the content and quality of the shared information improve manufacturing efficiency and responsiveness performance. Finally, the paper also recognizes possible reciprocal causality between relational capital and cognitive capital. Research limitations/implications – First, considering the distinct role of social relations in China, future studies should examine the influence of social capital and the potential reciprocal relationship between trust and shared vision, using data from other countries. Second, data were collected solely from the Pearl River Delta, China. Studies based on samples drawn from other regions, such as the Yangtze River Delta, the Bohai Sea economic area, and southwest China, would provide a degree of geographic and economic diversity and extend the generalizability of the results. Practical implications – Despite the touting of the value of information sharing, many companies struggle with the practice. The findings help us understand the process by which social capital accumulates and contributes to information sharing. Namely, firms must first engage in social interactions with supply chain partners in order to develop a trusting relationship and a shared vision for information sharing. The managers must also be aware of the possible reciprocal relationship between trust and shared vision. Both the volume and content of information sharing are critical to the performance. Social implications – Manufacturers can use the concept of social capital to build relational rents for information sharing. Originality/value – Responding to the call from the literature, this study extends the discussion of antecedents and consequences of supply chain information sharing, with a focus on the influences of relational resources. The paper proves that social capital provides a valid theoretical base from which to examine the role of social relations in promoting supply chain information sharing. Previous supply chain research in social capital often limited its consideration of social capital to relational capital. Understanding the effects of all three dimensions of social capital and their inter-relationships would contribute to the process by which social capital accumulates and promotes information sharing. Additionally, a study with the Chinese data should validate the theoretical model developed based on western literature, and offer valuable insights to researchers and practitioners from both economic and cultural perspectives.


2017 ◽  
Vol 23 (3) ◽  
pp. 186-204 ◽  
Author(s):  
Ambika Prasad ◽  
Darleen DeRosa ◽  
Michael Beyerlein

Purpose The purpose of this paper is to understand different aspects of structural dispersion in virtual teams (VTs). The study measures five types of dispersion, their impact on VT performance and the moderating effect of electronic communication. Design/methodology/approach The authors collected data from 44 globally distributed VTs representing 403 members. The authors used details of the members’ locations to measure five elements of dispersion for each team: spatial, time-zone, number of locations, extent of numerical balance across locations and extent of isolated members for a team. The authors used two items to assess effective electronic communication and measured team performance on four items from three sources – members, leaders and third-party stakeholders. Findings Using regression, the authors found that the number of sites, degree of team balance and isolation had a negative impact on team performance. Spatial and temporal dispersion did not impact performance. Effective electronic communication moderated the relationship of team performance with team balance and the number of sites. Research limitations/implications Study presents novel findings on the role of team configuration in VTs. Limitations: the study provides pointers to the likelihood of a non-linear relationship between spatial distance and performance; however, the scope of the paper does not permit an examination of this model. Future research can study this relationship. Second, the study does not examine how team configuration impacts the team processes that discount performance. Finally, the study treats each index of dispersion as independent of the others. The analysis does not study the interplay between and among the indices. Practical implications The findings provide clear indicators for managers and researchers of VTs on the issues associated with the location and configuration of the teams. Managers, while designing and managing dispersed members are now informed of the impact of the number of sites and the sub-group dynamics. The study underscores the importance of effective electronic communication in managing dispersion. Social implications The study presents how faultiness based on location of VT sub-groups (as represented in the configuration of a team) can hamper performance. Literature suggests that this faultiness can also extend to social identities (based on gender, culture, etc.). The indicators provided by this study in this respect provide a topical focus for research because diverse dispersed teams are becoming more prevalent. Originality/value The study is the first empirical exploration of dispersion in VTs beyond the traditionally acknowledged dimensions of spatial distance and time-zones. It is a timely response to the recent trends in literature. Additionally, the study derives data from a unique data set of global VTs, thus making findings easily generalizable.


2017 ◽  
Vol 23 (6) ◽  
pp. 1167-1195 ◽  
Author(s):  
Andres Ramirez-Portilla ◽  
Enrico Cagno ◽  
Terrence E. Brown

Purpose The purpose of this paper is to explore the influence that adopting open innovation (OI) has on the innovativeness and performance of specialized small and medium-sized enterprises (SMEs). This paper also examines the adoption of OI within a firm’s practices and models, and within the three dimensions of firm sustainability. Design/methodology/approach Survey data from 48 specialized SMEs manufacturing supercars were analyzed using partial least squares structural equation modeling. SmartPLS software was used to conduct a path analysis and test the proposed framework. Findings The findings suggest that high adoption of OI models tends to increase firm innovativeness. Similarly, the adoption of OI practices has a positive effect on innovativeness but to a lesser extent than OI models. The moderation results of innovativeness further show that OI models and practices can benefit the performance of SMEs. Specifically, two dimensions of performance – environmental and social performance – were found to be greatly influenced by OI. Research limitations/implications Due to parsimony in the investigated model, this study only focuses on OI adoption as practices and models without considering its drivers or other contingency factors. Practical implications This paper could help practitioners in SMEs better understand the benefits of adopting OI to be more innovative but also more sustainable. Originality/value This study contributes to the literature on the role of OI practices and models regarding the dimensions of firm sustainability performance by being the first paper to investigate this relationship in the context of small and medium manufacturers of supercars.


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