The moderating role of subsidiary size on the association between institutional distance and subsidiary’s access to complementary local assets: evidence from Vietnam

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dut Van Vo ◽  
Yusaf H. Akbar ◽  
Loc Dong Truong

Purpose This study aims to investigate the moderating effects of subsidiary size on the association between institutional distance and subsidiary’s access to complementary local assets (ACLA) in a transition economy. Design/methodology/approach The data of 1,027 subsidiaries located in Vietnam were extracted from the survey of General Statistics Office of Vietnam. Hausman’s test shows that random effect model is appropriate to estimate the moderating effects of subsidiary size on the association between the institutional distance and subsidiary’s ACLA. Findings The findings revealed that the greater formal and informal institutional distances between home and host countries, the lower a subsidiary’s ACLA in a transition economy. In addition, larger subsidiaries’ ACLA in a more formal and informal institutional distant country are higher than smaller subsidiaries. Research limitations/implications Multinational enterprise (MNEs) have a continuous need to use their foreign subsidiaries operating in host countries, particularly those with transition economies, to overcome institutional differences to ACLA in a transition economy. In addition, subsidiaries should be invested with greater resources to collaborate with local partners to serve for accessing to complementary local assets in transition economy characterized by an uncertainty institutional environment. Originality/value By integrating the institutional theory and the resource-based view, the study developed a theoretical model about the moderating role of subsidiary size on the association between institutional distance and subsidiary’s ACLA in transition economy. The findings confirmed that simultaneously applying the institutional theory and the resource-based view to investigate location-specific advantages exploitation of subsidiaries is relevant not only in developed economies but also in a transition economies.

2014 ◽  
Vol 26 (7) ◽  
pp. 1065-1082 ◽  
Author(s):  
Hui-Chun Huang ◽  
Ya-Ting Chang ◽  
Che-Yi Yeh ◽  
Chung-Wei Liao

Purpose – The authors empirically evaluated the effect of price promotions on customer quality evaluations and repeat-purchase intentions in coffee chain stores. The moderating role of customer characteristics in this process was also investigated. Design/methodology/approach – Consumers in 12 coffee chain stores were surveyed and 488 usable questionnaires were obtained. Relationships in the test model were examined using structural equation modeling techniques. A multiple-group solution was used to test the moderating effects of consumer characteristics. Findings – The results of structural equation modeling analyses suggested that price-promotion activities at Starbucks in Taiwan had a favorable effect on customer quality evaluations and positively influenced repeat-purchase intentions. The moderating effects of consumer characteristics were partially supported. Whereas sex showed no significant moderating effect, consumption frequency did demonstrate a moderating effect. Practical implications – The results indicate that existing customers may see price promotions at Starbucks in Taiwan as a reward or incentive, and thus lead to an increase in favorable evaluations. The findings provide a new perspective that may encourage those involved in the marketing of coffee chain stores to manage price promotions in a more strategic manner by considering customer characteristics. Originality/value – The effects of price promotions on brand evaluation remain controversial and may vary among product categories. Additionally, most studies regarding price promotions have used an experimental approach, and few studies of price promotions in the coffee industry have been reported. The study is among the first to empirically examine the effects of price promotions and the moderating role of consumer characteristics in the process at coffee chain stores.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shaobo Wei ◽  
Fenfen Zhu ◽  
Xiayu Chen

PurposeInnovative use of enterprise systems (ES) by employees is essential for organisations to benefit from huge investments in such systems. Drawing on job demands-resources (JDR) theory, this study explores how stressors (i.e. challenge and hindrance stressors) influence employees' innovative use of ES, as well as considering the moderating effects of IT mindfulness.Design/methodology/approachData were collected from a longitudinal survey of 152 employees in a large financial service company in China. Hierarchical multiple regression was used to test the research model.FindingsResults showed that challenge stressors exerted a positive effect and hindrance stressors had no significant effect on innovative use of ES. Furthermore, we found that IT mindfulness weakened the positive effect of challenge stressors and the negative effect of hindrance stressors on innovative use of ES.Originality/valueThis study is among the first to extend the research of innovative use of ES by considering two types of stressors based on the JDR theory. Besides, new insights are provided on how to promote employees' innovative use of ES in the post-acceptance stage according to the different levels of IT mindfulness of employees.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rayenda Khresna Brahmana ◽  
Hui Wei You ◽  
Maria Kontesa

PurposeThis research aims to examine the moderating role of CEO power on the relationship between retrenchment strategy and firm performance by framing the relationship under an agency theory, and power circulation theory.Design/methodology/approachThis study focuses on a sample of 319 non-financial public listed companies in Malaysia from the year 2011–2016 and estimates the model under two-step GMM panel regression to eliminate the endogeneity issue.FindingsThe results show that the retrenchment strategy increased firm performance. Meanwhile, greater CEO power changes that retrenchment effect into increased performance. This study also indicates the CEO power strengthens the relationship between firm performance and retrenchment. However, CEO power does not have any effect on the performance of low retrenchment, and the performance of big firm size.Research limitations/implicationsThe findings show that the higher CEO power cause higher firm performance and higher retrenchment. This research suggests that CEO power can make retrenchment strategy works and the decision made can affect the firm performance significantly.Originality/valueThis study examines the effect of CEO power on the performance of retrenchment strategy implementation by contesting agency theory, power circulation theory, and resource-based view theory within the emerging country context.


2020 ◽  
Vol 39 (6) ◽  
pp. 793-809
Author(s):  
Monowar Mahmood ◽  
Md. Aftab Uddin ◽  
Alexandr Ostrovskiy ◽  
Nurlan Orazalin

PurposeBased on the tenets of the conservation of resources (COR) theory, this study investigated the influence of different leadership styles on organizational performance in the context of a Eurasian country (i.e. Kazakhstan). It further examined the moderating role of corporate culture in the leadership-organizational performance relationship.Design/methodology/approachUsing the quantitative survey method, the study collected data from 321 managerial employees working in local and multinational corporations in Kazakhstan. The collected data were analysed using SPSS software, and factor analysis, path analysis and hierarchical regression analysis were conducted to validate the hypotheses. Furthermore, structural equation modelling was developed to assess the moderating effects of the variables.FindingsThe findings reveal that among different leadership styles, transformational, transactional and paternal leadership have higher influences on organizational performance. Among different corporate cultures, clan culture appears to have higher moderating effects on the leadership-organizational performance relationship. The moderating role of corporate culture on the leadership influence-organizational performance relationship supports the “resource caravan” effects of the composition model theory.Research implicationsBased on the premises of the COR theory, this study suggests developing multiple leadership competencies among managerial employees to be more effective in any given organizational or country context. As a result of the inclusiveness of multiple competencies, the study further suggests the consideration of an “integrated leadership approach” in the Eurasian context. Consistent with the national cultural syndrome, and as preferred by employees, managers could focus on developing a clan or group culture to strengthen their influencing power on employees.Originality/valueThe study adopts the COR theory by considering leadership competencies as unique resources of individual managers, which suggests the development of an “integrated leadership approach” for better management development and improved organizational performance. Furthermore, the study contributes by validating the applicability of the “conservation of resources” and the “composition model” theories in leadership studies.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sebastiano Cupertino ◽  
Gianluca Vitale ◽  
Pasquale Ruggiero

PurposeThis paper investigates whether and how Directive 2014/95/EU affects financial performance as well as its moderation effect on the relationship between financial and non-financial performance, involving different stakeholders' perspectives.Design/methodology/approachWe adopted the panel data approach to perform random effects regression analysis on a sample of 435 European listed non-financial companies, considering a timeframe of six years. Furthermore, the moderation effect of the Directive 2014/95/EU on the relationship between financial and non-financial performance has been tested.FindingsNFD regulation negatively affects firms' operating profitability and shareholder value while produces no effects on debtholders' returns. Nevertheless, the Directive 2014/95/EU has general positive moderating effects on the relationship between non-financial and financial performance, mitigating the direct costs induced by pursuing non-financial performance.Research limitations/implicationsShifting from mimetic to coercive isomorphism caused a strengthening of the complementarity between financial and non-financial performance dimensions, extending the concept of performance itself. The analysis carried out is limited to a short-term timeframe and on non-financial companies subject to the Directive 2014/95/EU.Practical implicationsThe paper highlights trade-offs between the costs induced by non-financial activities and the benefits of being compliant with the non-financial disclosure (NFD) regulation, supporting managers in allocating business resources.Originality/valueThis paper is among the first that investigates the impact of mandatory NFD on the relationship between non-financial and financial performance. It is also one of the earliest in finding some pieces of evidence on the direct impact of Directive 2014/95/EU on EU companies' financial performance.


2019 ◽  
Vol 15 (4) ◽  
pp. 406-424 ◽  
Author(s):  
Maryam Kriese ◽  
Joshua Yindenaba Abor ◽  
Elikplimi Agbloyor

Purpose The purpose of this paper is to examine the moderating role of financial consumer protection (FCP) in the access–development nexus. Design/methodology/approach The study is based on cross-country data on 102 countries surveyed in the World Bank Global Survey on FCP and Financial Literacy (2013). The White heteroscedasticity adjusted regressions and Two-stage least squares regressions (2SLS) are used for the estimation. Findings Interactions between FCP regulations that foster fair treatment, disclosure, dispute resolution and recourse and financial access have positive net effects on economic development. However, there is no sufficient evidence to suggest that interactions between financial access and enforcement and compliance monitoring regulations have a significant effect on economic development. Practical implications First, policy makers should continue with efforts aimed at instituting FCP regimes as part of strategies aimed at broadening access to financial services for enhanced economic development. Second, instituting FCP regimes per se may not be enough. Policy makers need to consider possible intervening factors such as the provision of adequate resources and supervisory authority, for compliance monitoring and enforcement to achieve the expected positive effect on economic development. Originality/value This study extends evidence in the law–finance–growth literature by providing empirical evidence on the effect of legal institution specific to the protection of retail financial consumers on the access–development nexus using a nouvel data set, the World Bank Global survey on FCP and Financial Literacy (2013).


2017 ◽  
Vol 32 (7) ◽  
pp. 913-924 ◽  
Author(s):  
Jeen-Su Lim ◽  
William K. Darley ◽  
David Marion

Purpose The study aims to explore supply chain influence (SCI) on the linkages among market orientation, innovation capabilities and firm performance (FP), using the resource-based view as a theoretical backdrop. Design Survey data from 182 top managers who are involved in strategy formulation and innovative direction of their companies was collected and analyzed using moderated multiple regression analysis. Findings Results revealed a moderating role of the SCI in that the proactive market orientation (PMO) and FP relationship is stronger when SCI is high, and innovation commercialization capability (ICC) and FP relationship is stronger when SCI is low. Practical implications Firms pursuing high PMO strategy must collaborate with supply chain function to achieve the full effect of PMO. Additionally, as supply chain is critical to meeting customers’ needs, these firms should allow supply chain to exert greater influence to enjoy the positive effects of PMO in addition to ensuring full integration into marketing strategy implementation. Also, firms with high ICC need to limit SCI to maximize the benefit of ICC on FP, just as innovation management needs to be cognizant of other functional areas. Originality/value The study investigates the potential moderating role of SCI on the relationships among market orientation, ICC and FP. The study fills a gap in the understanding of the nature and role of supply chain in the marketing–supply chain interaction, and the impact on FP.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Qiang Lu ◽  
Jinliang Chen ◽  
Hua Song ◽  
Xiangyu Zhou

Purpose The purpose of this study is to examine how cloud computing assimilation reduces supply chain financing (SCF) risks of small and medium enterprises (SMEs). This study also investigated the mediating roles of internal and external supply chain integration between cloud computing assimilation and the SCF risks of SMEs, as well as the moderating role of environmental competitiveness. Design/methodology/approach Data was collected from surveys of SMEs located in China. Multiple regression analysis was used to validate the proposed theoretical model and research hypotheses. Findings The findings show that cloud computing assimilation could reduce the SCF risks of SMEs directly. The results also indicate that both internal and external supply chain integration mediate the relationship between cloud computing assimilation and SCF risks. Furthermore, environmental competitiveness inhibits the effects of cloud computing assimilation on SCF risks. Originality/value To our best knowledge, this is the preliminary study to explore the role of cloud computing assimilation in reducing the SCF risks of SMEs. Also, this study attempted to investigate the process by which cloud computing assimilation affects the SCF risks of SMEs.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lijing Zhao ◽  
Shuming Zhao ◽  
Hao Zeng ◽  
Jingyi Bai

PurposeDrawing on identity theory and the symbolic interactionism perspective of identity theory, this study aims to construct a moderated mediation framework to test the effects of perceived overqualification (POQ) on knowledge sharing (KS) through professional identity threat (PIT) and the moderating role of coworkers' help-seeking behavior (CHSB).Design/methodology/approachThis paper uses a quantitative multistudy research design with a combination of a scenario experiment (Study 1) and a two-wave field study among 220 supervisor-subordinate dyads at a power company in China. Using analysis of variance, confirmatory factor analysis (CFA) and bootstrapping method, the authors validated the research hypothesis.FindingsIn the scenario experiment study (study 1), the authors find that POQ is positively related to PIT and that CHSB negatively moderates the positive impact of POQ on PIT. The field study (study 2) replicated the above findings and found that PIT mediates the negative effect of POQ on KS. In addition, CHSB negatively moderates the mediating role of PIT between POQ and KS.Originality/valueFirst, the current study extended the nomological network of POQ research by examining its influence on employees' KS. Second, this study empirically investigated the mediating role of PIT, which provided a new explanatory mechanism for the influence of POQ. Finally, this study demonstrates the moderating role of CHSB—a situational factor that has been ignored in previous studies.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xi Ouyang ◽  
Kong Zhou ◽  
Yuan-Fang Zhan ◽  
Wen-Jun Yin

PurposeDrawing on the extended self-theory, this study explores the dynamic process through which reactive helping could influence proactive helping through self-investment and investigate the moderating role of task difficulty in affecting this process.Design/methodology/approachThis study, with a sample of 582 diary surveys from 66 employees, used experience sampling techniques to analyze the proposed hypotheses.FindingsThe results revealed that self-investment could mediate the positive relationship between reactive helping and proactive helping. Additionally, task difficulty acts as an essential role in facilitating the process raised by reactive helping. Further examination revealed that the moderated mediation effect in this model was also significant.Practical implicationsManagers should encourage help-seeking and positive responses to requests, especially in groups with difficult tasks, which could build helpers’ extended self at work and increase their proactive helping behaviors at the following episode.Originality/valueAs verifying the dynamic trajectory of reactive helping, this study enriches our understanding of whether and how helping behaviors are likely to grow over time. Besides, it complements current pieces of literature by exploring the potential positive implication of reactive helping with a helper-centric perspective.


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