Managerial skills and performance in small businesses: the mediating role of organizational climate

2020 ◽  
Vol 14 (3) ◽  
pp. 361-377
Author(s):  
Gholamhossein Mehralian ◽  
Mohammad Peikanpour ◽  
Maryam Rangchian ◽  
Hamed Aghakhani
Keyword(s):  
Organizational Climate ◽  
Small Businesses ◽  
Structural Equation ◽  
Business Performance ◽  
Mediating Effect ◽  
Equation Modeling ◽  
Data Set ◽  
Content Type ◽  
Managerial Skills ◽  
And Performance

Purpose The purpose of this paper is to develop a conceptual model to determine whether organizational climate (OC) mediates the effect of managerial skills (MSs) on business performance in small businesses, such as pharmacies. Design/methodology/approach The model proposed in this research was tested using separate questionnaires specifically designed for managers, employees and clients. The data set consists of responses from 301 managers, 470 clients and 328 employees from community pharmacies in Tehran, capital of Iran, which were analyzed using structural equation modeling. Findings Although the results indicated no significant direct relationship between MSs and pharmacy performance (PP), they also confirmed that having a context-appropriate set of MSs can positively affect PP via the mediating effect of OC. Originality/value This is the first study investigating how MSs improve performance in retail pharmacies. Although this research focuses specifically on small businesses in the pharmaceutical industry, it nevertheless contributes to the literature by showing the importance of OC.

“Process of strategic planning and cognitive diversity as determinants of cohesiveness and performance”

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Radoslaw Nowak
Keyword(s):  
Strategic Planning ◽  
Structural Equation ◽  
Business Performance ◽  
Past Research ◽  
Equation Modeling ◽  
Negative Effects ◽  
Healthcare Organizations ◽  
Content Type ◽  
Original Dataset ◽  
And Performance

PurposeThe purpose of this paper is to investigate the effects of the process of strategic planning on cohesiveness and performance in cognitively diverse units.Design/methodology/approachThis study uses structural equation modeling (SEM) to analyze an original dataset collected from employees working in healthcare organizations in the United Sates.FindingsThis study finds the negative effects of cognitive differences among employees on a unit's cohesiveness and performance and the positive moderating effects of the process of strategic planning on such relationships. Consequently, revealing the cohesiveness enhancing function of the process of strategic planning.Originality/valueThe study contributes to past research by revealing that business organizations could use the process of strategic planning to enhance their internal cohesiveness, in turn improving their business performance. This study explains that when the process of planning clearly defines an organization's mission, goals and implementation plans, employees working in highly diverse units will be more likely to better understand, accept and in turn also support their organization as a whole and its critical strategic goals. This should increase internal cohesiveness and lead leading to better performance.

scholarly journals Influence of learning and service innovation on performance

2020 ◽  
Vol 17 (2) ◽  
pp. 157-175 ◽  
Author(s):  
Thaise Caroline Milbratz ◽  
Giancarlo Gomes ◽  
Linda Jessica De Montreuil Carmona
Keyword(s):  
Organizational Performance ◽  
Structural Equation ◽  
Service Innovation ◽  
Mediating Effect ◽  
Equation Modeling ◽  
Business Services ◽  
Data Set ◽  
Content Type ◽  
Starting Point ◽  
Architectural Firms

Purpose This paper aims to analyze the influence of organizational learning (OL) and service innovation (SI) on organizational performance of knowledge-intensive business services (KIBS) and examine the mediating role of SI. Design/methodology/approach Hypotheses were tested using the theoretical OL model of knowledge acquisition, distribution, interpretation and organizational memory (Huber, 1991; Lopez, Peon, & Ordas, 2005; Jiménez-Jiménez & Sanz-Valle, 2011), using structural equation modeling partial least squares analysis of a survey data set of Brazilian architectural firms. Findings Findings suggest that OL is significantly linked to SI and so is SI to organizational performance. However, neither the direct relationship between OL and organizational performance could be verified, nor the mediating effect of SI. Practical implications These results can offer KIBS managers insights that suggest that OL alone does not guarantee a significant impact in organizational performance, but it is a starting point for achieving SIs, that lead to performance improvement and competitive advantages. Originality/value This paper contributes to the knowledge production in the following ways: to the understanding of the relationship between OL and SI and its effect on organizational performance, traditionally overlooked in the literature; to the study of SIs, considering the importance of the service sector; and to the study of innovation processes in architectural firms, a sector traditionally understudied, because of the focus on large construction firms.

Collaborative e-business efforts and firm performance

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Anwar Alsheyadi
Keyword(s):  
Structural Equation ◽  
Business Performance ◽  
Mediating Effect ◽  
Operational Performance ◽  
Future Research ◽  
Complementarity Effect ◽  
Content Type ◽  
And Performance ◽  
Using Data ◽  
Complementarity Effects

PurposeThe purpose of this study is to examine how e-business (EB) practices and performance are directly and indirectly related, and to examine the complementary effects of adopting various types of EB practices on both business and operational performance, where the latter is conceptualized as a mediator between EB practices and business performance.Design/methodology/approachThe structural equation modelling was used to examine the conceptual model using data collected through a survey of 108 Omani manufacturing firms. EB was conceptualized as a second-order factor resulted from a production of a simultaneous adoption of three distinct groups of EB practices to examine the complementarity effect of EB practices on performance.FindingsControlling for the variations of firm size and age effects, the empirical analysis of this study found support for the superior effects of the complementarities amongst various EB practices on business performance, but this effect will be indirect through the operational performance.Research limitations/implicationsThe research findings may lack generalisability due to the possible effects of other contextual factors which should be considered by future research studies.Practical implicationsSeveral implications are highlighted for the effective deployment of collective EB competencies, and for the role of operational performance on achieving higher business benefits.Originality/valueThis paper satisfies the need to validate the complementarity effects model in different contexts such as EB, and the need to investigate the mediating effect of other factors on EB practices and business performance.

Absorptive capacity and business performance

2018 ◽  
Vol 118 (9) ◽  
pp. 1787-1803 ◽  
Author(s):  
Xueyuan Liu ◽  
Haiyun Zhao ◽  
Xiande Zhao
Keyword(s):  
Direct Effect ◽  
Indirect Effects ◽  
Structural Equation ◽  
Business Performance ◽  
Mediating Effect ◽  
Equation Modeling ◽  
Content Type ◽  
Proposed Model ◽  
Multiple Paths

PurposeThe purpose of this paper is to examine the multiple paths of absorptive capacity’s (AC) effect on business performance (BP): direct effect and indirect effects through innovation and mass customization (MC).Design/methodology/approachThe authors examined the role of innovation and MC capability on the relationship between AC and BP. Data from 278 Chinese firms in four manufacturing industries collected by questionnaire are used to empirically examine the proposed model by Structural equation modeling.FindingsThe results show that AC can directly enhance BP, and indirectly through innovation and MC capability. The study also finds that MC capability has a stronger mediating effect than innovation.Originality/valuePrior studies have not yet built linkages between AC and BP with both innovation and MC’s effects. This study provides empirical evidence of the effects of AC on BP and three paths are discussed including AC’s direct effect and indirect effects through innovation and MC to firm’s BP. This study provides a new direction for executives to better understand the movement of knowledge along supply chain and in intra-organizational environment, and of the importance of innovation and MC capability since they are essential carriers for BP enhancement.

The influence of lean management and environmental practices on relative competitive quality advantage and performance

2020 ◽  
Vol 31 (7) ◽  
pp. 1351-1372 ◽  
Author(s):  
Yaw Agyabeng-Mensah ◽  
Esther Ahenkorah ◽  
Ebenezer Afum ◽  
Dallas Owusu
Keyword(s):  
Environmental Sustainability ◽  
Environmental Performance ◽  
Structural Equation ◽  
Business Performance ◽  
Equation Modeling ◽  
Lean Management ◽  
Environmental Practices ◽  
Content Type ◽  
Industry Type ◽  
And Performance

PurposeFirms are adopting strategies to advance product quality and environmental sustainability to achieve improved profitability and shareholders’ wealth. The study investigates strategies that create a superior quality performance to competitors and improve both environmental and business performances. This paper explores the direct and indirect influence of lean management and environmental practices on relative competitive quality advantage, environmental performance and business performance.Design/methodology/approachThe study uses a quantitative method where data is gathered from 259 manufacturing firms in Ghana. The data is gathered through customized questionnaires. The partial least squares structural equation modeling (SmartPLS 3.2.8) is used to analyze the data. Firm size, industry type and importance of environmental issues are used as control variables in this study.FindingsThe findings of the study indicate that both lean management and environmental practices create relative competitive quality advantage and improve environmental performance and business performance. Environmental performance and relative competitive quality advantage mediate the influence of lean management and environmental practices on business performance. The results further indicate that lean management creates a higher relative competitive quality advantage than environmental practices, while environmental practices have more potency to enhance environmental performance than lean management.Originality/valueThe study develops and proposes a comprehensive theoretical framework that examines the potency of environmental practices and lean management in creating a relative competitive quality advantage and improving environmental performance and business performance from a Ghanaian perspective, which is an emerging economy in Africa. Lean management and environmental practices may jointly help firms create relative competitive advantage and improve environmental performance to enhance business performance.

Social capital, knowledge sharing and innovation of small- and medium-sized enterprises in a tourism cluster

2018 ◽  
Vol 30 (6) ◽  
pp. 2417-2437 ◽  
Author(s):  
Namhyun Kim ◽  
Changsup Shim
Keyword(s):  
Social Capital ◽  
Knowledge Sharing ◽  
Structural Equation ◽  
Business Performance ◽  
Equation Modeling ◽  
Relational Capital ◽  
Content Type ◽  
Structural Capital ◽  
And Performance ◽  
Practical Implications

PurposeThis study aims to identify the structural relationship among social capital, knowledge sharing, innovation and performance of small- and medium-sized enterprises (SMEs) in a tourism cluster.Design/methodology/approachA total of 199 valid questionnaires are collected from SMEs in the Bomun tourism cluster in South Korea. A structural equation modeling approach is used to test the research hypotheses.FindingsThe findings suggest that social capital constructs, including network density of structural capital, relational capital and cognitive capital, all positively influence knowledge sharing among SMEs in the cluster. This implies that creating social capital is critical to enhancing the competitiveness of SMEs. This study confirms that knowledge sharing positively affects SME performance through innovation.Research limitations/implicationsThis study suggests that social capital, consisting of structural, cognitive and relational capital, facilitates increased knowledge sharing and innovation in a tourism cluster, which in turn enhances SME business performance.Practical/implicationsThis study suggests that tourism cluster policies should focus on how to create a friendly operational climate to build social capital and support SME innovation.Originality/valueThis study contributes to the literature on social capital and innovation as well as the discourse on tourism clusters by addressing knowledge sharing among SMEs in a tourism cluster. It also expands the knowledge sharing and innovation literature by focusing on inter-organizational social networking among SMEs.

Foundations of strategic flexibility: focus on cognitive diversity and structural empowerment

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Radoslaw Nowak
Keyword(s):  
Structural Equation ◽  
Business Performance ◽  
Relevant Information ◽  
Joint Effect ◽  
Mediating Effect ◽  
Equation Modeling ◽  
Strategic Flexibility ◽  
Cognitive Diversity ◽  
Structural Empowerment ◽  
Content Type

Purpose The purpose of this paper is to investigate the effects of cognitive diversity and structural empowerment on strategic flexibility in the context of business performance. Design/methodology/approach Structural equation modeling (SEM) is used to statistically test the data that were collected from health-care organizations located in the USA. Findings SEM reveals the positive main effect of cognitive diversity on strategic flexibility, the moderating effect of structural empowerment on the effect of cognitive diversity on strategic flexibility and performance and the mediating effect of strategic flexibility on the joint effect of cognitive diversity and structural empowerment on business performance. Originality/value The study reveals that diversity in cognitive resources and workplace empowerment can jointly support business performance via strategic flexibility. The paper explains that this positive effect can take place because the two factors jointly enable business organizations to find better internal applications for new relevant information, thus allowing firms to quickly reorganize their internal resources in a way that leads to better performance.

Does employee understanding of strategic objectives matter? Effects on culture and performance

2020 ◽  
Vol 13 (4) ◽  
pp. 477-493 ◽  
Author(s):  
Radoslaw Nowak
Keyword(s):  
Organizational Culture ◽  
Structural Equation ◽  
Service Management ◽  
Critical Role ◽  
Mediating Effect ◽  
Equation Modeling ◽  
Business Organizations ◽  
Content Type ◽  
Strategic Objectives ◽  
And Performance

PurposeThe purpose of this paper is to investigate whether employees' understanding of their organization's strategic objectives could be used by business organizations to develop a desired type of organizational culture that will improve business performance.Design/methodology/approachStructural equation modeling (SEM) was conducted on the data collected in 2018 from professionals working in the healthcare industry in the USA.FindingsSEM revealed the positive effect of employee understanding of their organization's strategic objectives on the development of a serving culture, and the mediating effect of serving culture on the relationship between employee understanding of strategic objectives and performance.Research limitations/implicationsThis study emphasizes that having a well-defined mission and strategic goals may not be sufficient. Business organizations must also ensure that all employees clearly understand the meaning of such objectives. Employee understanding can become instrumental, as it could allow business organizations to develop a desired type of organizational culture that will support the implementation of the firm's strategic objectives.Originality/valueThe study is a valuable addition to past research. First, it advances the literature on strategy by exploring the critical role of employee understanding of their organization's strategic objectives in the context of culture and performance. Thus, it allows scholars to better explain how business organizations could more effectively utilize their process of strategic planning. In the domain of organizational culture, the paper contributes by identifying a new antecedent of serving culture. Furthermore, the paper also contributes to the literature on service management by identifying a mechanism that service organizations could use to increase their performance.

Believe they can succeed, and they will: intrapreneurial behavior and leadership

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Farrukh ◽  
Fanchen Meng ◽  
Ali Raza
Keyword(s):  
Organizational Climate ◽  
Structural Equation ◽  
Chemical Engineering ◽  
Theoretical Development ◽  
Equation Modeling ◽  
Pharmaceutical Chemical ◽  
Participative Leadership ◽  
Content Type ◽  
Member Exchange

PurposeA leader's job is not to put greatness into people, but rather to recognize that it already exists and to create an environment where that greatness can emerge and grow (Smith, 2014). Based on Brad Smith's quote, the purpose of this study is to investigate the role of the leader's expectations, leader-member exchange (LMX) and organizational climate for innovation in fostering the intrapreneurial behavior (IB) of employees.Design/methodology/approachData were collected from employees and their supervisors working across industries such as pharmaceutical, chemical, engineering and manufacturing. Collected data were then analyzed using the structural equation modeling technique.FindingsThe authors’ results show that LMX and leaders' expectations are positively linked to employees' IB. Moreover, this association is mediated by organizational climate.Practical implicationsThis study's findings contribute to the literature on intrapreneurship and may also help practitioners formulate interventions to foster IB in organizations that will ultimately lead to higher performance.Originality/valueThis study attempted to investigate the effect of LMX and the Pygmalion effect on IB through employees' perception of organizational climate for innovation. The literature in this field is scarce and theoretical development is weak because traditional collaborative or participative leadership approaches are more relevant to an outcome than innovation.

From managing customers to joint venturing with customers: co-creating service value in the digital age

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Christine Falkenreck ◽  
Ralf Wagner
Keyword(s):  
Perceived Risk ◽  
Structural Equation ◽  
Business Models ◽  
Joint Venture ◽  
Digital Age ◽  
Partial Least Square ◽  
Least Square ◽  
Equation Modeling ◽  
Data Set ◽  
Content Type

Purpose Until today, scholars claim that the phenomenon of “co-creation” of value in an “interacted” economy and in the context of positive actor-to-actor relationships has not been adequately explored. This study aims to first to identify and separate the accessible values of internet of things (IoT)-based business models for business-to-business (B2B) and business-to-government (B2G) customer groups. It quantifies the drivers to successfully implement disruptive business models. Design/methodology/approach Data were gathered from 292 customers in Western Europe. The conceptual framework was tested using partial least square structural equation modeling. Findings Managing disruptions in the digital age is closely related to the fact that the existing trust in buyer-seller relationships is not enough to accept IoT projects. A company’s digitalization capabilities, satisfaction with the existing relationship and trust in the IoT credibility of the manufacturer drives the perceived value of IoT-based business models in B2B settings. Contrastingly, in B2G settings, money is less important. Research limitations/implications Research refers to one business field, the data set is of European origin only. Findings indicate that the drivers to engage in IoT-related projects differ significantly between the customer groups and therefore require different marketing management strategies. Saving time today is more important to B2G buyers than saving money. Practical implications The disparate nature of B2B and B2G buyers indicates that market segmentation and targeted marketing must be considered before joint-venturing in IoT business models. To joint venture supply chain partners co-creating value in the context of IoT-related business models, relationship management should be focused with buyers on the same footing, as active players and co-developers of a personalized experience in digital service projects. Originality/value Diverging from established studies focusing on the relationship within a network of actors, this study defines disruptive business models and identifies its drivers in B2B and B2G relationships. This study proposes joint venturing with B2B and B2G customers to overcome the perceived risk of these IoT-related business models. Including customers in platforms and networks may lead to the co-creation of value in joint IoT projects.

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