scholarly journals Packages of management control systems, entrepreneurial orientation, and performance in Brazilian startups

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Anderson Betti Frare ◽  
Ana Paula Capuano da Cruz ◽  
Carlos Eduardo Facin Lavarda ◽  
Chris Akroyd

Purpose This study aims to understand the relationship between the elements of a startup firms’ management control system (MCS) package, its entrepreneurial orientation (EO) and firm performance. Design/methodology/approach The authors collected survey data from a sample of 100 Brazilian startups who had exited technology-based parks and incubators. The authors used two data analysis techniques, namely, partial least squares structural equation modeling (PLS-SEM) and fuzzy-set qualitative comparative analysis (fsQCA). Findings The findings show that cultural and planning controls were the only two MCS elements that were included in all high-performing startup firms’ MCS packages. The authors also found that EO has a positive influence on firm performance through the MCS package. Research limitations/implications The mixed-method approach allowed for a holistic view of the analyzed phenomenon. PLS-SEM analysis was applied to the symmetric relationships between the proposed relationships while fsQCA was used to analyze the asymmetric combinations between EO dimensions and MCS package elements, which promoted high firm performance. Practical implications The authors show how different combinations of MCS elements form a package, mediating EO, which can enable high performance. Originality/value Using fsQCA and PLS-SEM, the authors were able to better understand the important role that MCS package adoption has on a startups’ performance and provide new evidence regarding the interface between MCS and EO. This extends the understanding of the importance that cultural and planning controls have in an MCS package to support startup performance.

2019 ◽  
Vol 31 (4) ◽  
pp. 1647-1665 ◽  
Author(s):  
Pablo Ruiz-Palomino ◽  
Felipe Hernández-Perlines ◽  
Pedro Jiménez-Estévez ◽  
Santiago Gutiérrez-Broncano

Purpose Drawing on the theories of servant leadership and upper echelons, this paper aims to highlight the mechanisms through which CEO servant leadership enhances firm innovativeness in hotels. This study aims to test a multiple mediation model by considering the mediating role of encouragement of participation (EoPART) – a high-performance human resources (HR) practice – and employees’ voice (EVOICE) in sequence. Design/methodology/approach Data were collected from HR managers of 34 hotels in the hospitality industry in Spain, which represents an important international tourist destination. Two methods of rigorous data analysis were used (partial least squares [PLS], structural equation modeling and fuzzy-set qualitative comparative analysis [fs/QCA]), which enabled robust findings to be produced with minimal sample size requirements. Findings CEO servant leadership had a positive indirect effect on firm innovativeness in hotels, via the sequential application of EoPART and EVOICE. Research limitations/implications The findings provide new HR-related insights regarding the encouragement of firm innovativeness in hotels: CEOs can boost innovativeness in their hotels through the development of EoPART systems, which in turn favor EVOICE. Originality/value This is one of the first studies to analyze whether CEO servant leadership has an impact on innovativeness in hotels. Moreover, this study is the first to show the internal mechanisms (EoPART, EVOICE) through which CEO servant leadership encourages hotel innovativeness.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Manuel-Alejandro Ibarra-Cisneros ◽  
María del Rosario Demuner-Flores ◽  
Felipe Hernández-Perlines

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.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Daniela Corsaro ◽  
Isabella Maggioni

Purpose This study aims to offer a conceptualization of sales transformation, a phenomenon that is redefining the role of salespeople and the nature of Business-to-Business (B2B) relationships while disrupting the selling logics across a variety of industries. Design/methodology/approach Through a two-stage approach, the authors propose and test a conceptual model of sales transformation. The authors conducted 20 interviews and two focus groups with sales directors and managers. The authors then surveyed directors, executives and managers in the sales area (n = 190) and tested a reflective–formative hierarchical model using partial least squares structural equation modeling (PLS-SEM). Findings Sales transformation is a multidimensional construct that includes four higher-order dimensions, namely, people, digitalization, integration and acceleration, and 16 sub-dimensions. These dimensions simultaneously contribute to the sales transformation phenomenon that is conceptualized as a systemic process. This study also offers a measurement tool to assess the degree of sales transformation and enhance the value generated through sales. Originality/value Although many companies are facing challenges stemming from the process of sales transformation, most studies have only focused on micro-aspects of this transformation. This study provides a holistic view of sales transformation aimed at understanding the complexity of this phenomenon by adopting a macro-level perspective on the different dimensions that contribute to its occurrence and development.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Márcia Maria Garçon ◽  
Vânia Maria Jorge Nassif ◽  
Tiago Jessé Souza de Lima

Purpose The purpose of this paper is to develop and test a model that aims to explain individual entrepreneurial orientation (IEO) focused on the context of social entrepreneurship (SE) (Social-IEO) by considering the personal values and attitude toward social change through direct and indirect effects. To achieve this purpose, the authors created and validated a scale to measure Social-IEO. Design/methodology/approach The paper uses scale construction techniques (DeVellis, 2016) and survey method for data collection. As such, this study was conducted by considering a sample of 198 social entrepreneurs. Multivariate data analysis and structural equation modeling are used to validate the theoretical model. Findings The Social-IEO scale was validated and shows to adequately encompass and measure the construct. The proposed model has predictive relevance and explains 45% of Social-IEO. Findings suggest that self-transcendence value has no direct effect on Social-IEO. Additionally, conservation and self-promotion values do not have a negative correlation with Social-IEO. Finally, attitude of social change has a strong explanatory power to Social-IEO. The findings offer important theoretical and practical implications for the field of entrepreneurship education and entrepreneurial behavior. Originality/value The definition of a specific concept of IEO applied to the context of SE contributes to the correct understanding of its dimensions, measurement and management. This eliminates a gap in studies and contributes to expand and strengthen research. It also provides an original empirical approach, as the method used to measure IEO in a reflective way is unusual in previous studies.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Amiram Markovich ◽  
Kalanit Efrat ◽  
Daphne R. Raban

PurposeThis study aims to augment the understanding of dynamic capabilities (DCs) by exploring the interrelations among the DC categories (sensing, seizing, reconfiguring) and the distinct impact of each DC on firm performance under low and high levels of competitive intensity.Design/methodology/approachThe analysis is based on a cross-sectional survey of 139 managers in Israel. The data were collected through Web-based questionnaires using the Qualtrics software. A two-stage data analysis was performed using structural equation modeling (SEM).FindingsThe findings indicate that DCs follow a sequence in which sensing drives seizing, which, in turn, enhances reconfiguring. The effects of sensing are mainly manifested through its direct impact on seizing, with no evidence for an impact of sensing on company performance. Moreover, under low competitive intensity, only seizing appears to impact performance, while under high competitive intensity, reconfiguring joins seizing in improving firm performance.Originality/valueThe study's findings advance the debate on the direct vs sequential nature of DCs by indicating an internal DC sequence. Our research also advocates for a crucial role of sensing in enhancing DCs, regardless of the level of competitive intensity. Furthermore, this research expands the understanding of the consequences of DCs and enables the prioritization of DC categories under low and high competitive intensity.


2019 ◽  
Vol 41 (5) ◽  
pp. 1098-1119 ◽  
Author(s):  
Neha Gahlawat ◽  
Subhash C. Kundu

Purpose The purpose of this paper is to examine the relationship between participatory HRM and firm performance through a series of mediators. Design/methodology/approach Primary data were collected from 569 respondents belonging to 207 organizations operating in India. Structural equation modeling and bootstrapping via PROCESS were used to analyze the hypothesized relationships between participatory HRM and firm performance. Findings The study has highlighted that participatory HRM in the form of self-managed teams, flexible work arrangements and empowerment results in better organizational climate, heightened affective commitment, reduced intention to leave and enhanced firm performance. Furthermore, it has been established that organizational climate, affective commitment and intention to leave serially mediate the relationship between participatory HRM and firm performance. Practical implications The study gives strong indications that adopting bundle of participatory HRM practices is beneficial for generating positive organizational climate, enhanced employee attitudes and superior firm performance. Originality/value By establishing serial mediation through organizational climate, affective commitment and employees’ intention to leave, this study brings new insights into the interpretation of underlying mechanism existing between participatory HRM and firm performance, thus uniquely contributes to the HRM and OB literature.


2020 ◽  
Vol 55 (1) ◽  
pp. 219-246
Author(s):  
Ruwan Bandara ◽  
Mario Fernando ◽  
Shahriar Akter

Purpose The purpose of this study is to examine privacy issues in the e-commerce context from a power-responsibility equilibrium theory (PRE) perspective. Design/methodology/approach The data was collected using an online survey (n = 335) from online shopping consumers. This study used partial least squares-structural equation modeling (PLS-SEM) and fuzzy-set qualitative comparative analysis (fsQCA) techniques to empirically examine the proposed relationships. Findings A lack of corporate privacy responsibility and regulatory protection can deprive consumers of privacy empowerment and damage consumer trust to trigger privacy concerns and subsequent defensive responses. Also, the fsQCA revealed five causal configurations to explain high consumer defensive behaviours. Research limitations/implications This study identifies the importance of PRE theory in the privacy context. Consumer privacy concerns, privacy empowerment and trust are established as strong mediators between corporate/regulatory privacy protection efforts and consumer backlash. The application of fsQCA verified that consumer privacy behaviour can be better explained by different configurations of the same causal antecedents. Practical implications The findings highlight the importance of increasing trust and privacy empowerment as mechanisms to manage privacy concerns and consumer backlash through responsible organisational and regulatory privacy protections. The importance of balancing power and responsibility dynamics for maintaining a healthy information exchange environment is identified. Originality/value This study extends the PRE framework of privacy to include corporate privacy responsibility, privacy empowerment and trust. This is one of the first studies to explore both antecedents and outcomes of privacy empowerment. Also, the application of complexity theory and fsQCA to explain consumers’ defensive responses is novel to the literature.


2019 ◽  
Vol 25 (3) ◽  
pp. 433-456 ◽  
Author(s):  
Chengli Shu ◽  
Dirk De Clercq ◽  
Yunyue Zhou ◽  
Cuijuan Liu

PurposeThe purpose of this paper is to examine how entrepreneurial orientation (EO) and strategic renewal (as a critical dimension of corporate entrepreneurship) might transmit government institutional support and thereby enhance firm performance in a transition economy.Design/methodology/approachMulti-respondent data were collected from 230 Chinese-based firms. The hypotheses were tested with structural equation modeling, in combination with a bias-corrected bootstrap method, to assess the significance of the theorized direct and indirect relationships.FindingsGovernment institutional support enhances EO and strategic renewal individually, yet EO also fully mediates the relationship between government institutional support and strategic renewal. Moreover, strategic renewal fully mediates the relationship between EO and firm financial performance, and it partially mediates the relationship between EO and firm reputation.Originality/valueThis study contributes to entrepreneurship literature by testing an organization-level model of entrepreneurial phenomena in established firms that identifies EO and strategic renewal as two distinct mechanisms through which government institutional support in a transition economy can enhance organizational effectiveness, which entails the firm’s financial performance and reputation. In doing so, this study provides an extended understanding of how EO and strategic renewal might influence a firm’s financial and nonfinancial outcomes in different ways.


2019 ◽  
Vol 41 (5) ◽  
pp. 830-850 ◽  
Author(s):  
François L'Écuyer ◽  
Louis Raymond ◽  
Bruno Fabi ◽  
Sylvestre Uwizeyemungu

Purpose Within the manufacturing sector, small- and medium-sized enterprises (SMEs) face specific challenges with regard to their strategic HRM capabilities. In this context, an emerging issue for both researchers and practitioners regards HR information systems (HRIS), i.e. the deployment of strategic IT capabilities to enable the firm’s high-performance work system (HPWS) capabilities and thus improve the performance of its HR function. The purpose of this paper is to address this issue by using a capability-based mediation perspective to study the strategic alignment of HR and IT. Design/methodology/approach A survey study of 206 manufacturing SMEs was realized and the data thus obtained was analyzed through structural equation modeling. Findings Results confirm that the HRIS capabilities of SMEs influence the performance of the HR function through their strategic alignment with the HPWS capabilities of these enterprises. Practical implications The results suggest that the manufacturing SMEs most active in developing their HRIS capabilities while developing their HPWS capabilities are most likely to develop a competitive advantage through the improved performance of their HR function. This is especially important in a time when firms of all sizes across the globe are waging a “war for talent,” and are enabled to do so by their strategic use of IT. Originality/value The results of the study constitute a valid basis for prediction and prescription with regards to the strategic alignment of human and IT resources.


2018 ◽  
Vol 7 (1) ◽  
pp. 41-72 ◽  
Author(s):  
Rakesh Kumar Mishra ◽  
Sheeba Kapil

Purpose The purpose of this paper is to explore the relationship of board characteristics and firm performance for Indian companies. Design/methodology/approach Corporate governance structures of 391 Indian companies out of CNX 500 companies listed on National Stock Exchange have been studied for their impact on performance of companies. Structural equation modeling methodology has been employed on data for five financial years from 2010 to 2014 for selected companies. Market-based measure (Tobin’s Q) and accounting-based measure (return on asset) have been employed for measuring firm performance. Findings Empirical findings indicate that there is significant positive association between board size and firm performance. Board independence is found significantly related to firm performance. Number of board meetings is found to be sending positive signal to the market creating firm value. Separation of CEO and chairman of the board is found to be value creating and overburdened directors affect firm performance adversely. Findings also suggest that the governance-performance relationship is also dependent upon the type of performance measures used in the study. Research limitations/implications Limitations of this study are in terms of data methodology and possible omission of some variables. It is understood that the qualitative dynamics happening inside board meetings impact corporate performance. The strategic decisions-making process adopted by the boards to fight competition or to increase market share is not available in public domain easily. The decision-making processes and monitoring for implementation of these decisions could impact corporate governance-performance relationship. These parameters and their impact on corporate performance are not covered under the scope of the present study. However, the same could have thrown more light on governance-performance relationship. Originality/value The paper adds to the emerging body of literature on corporate governance-performance relationship in the Indian context using a reasonably wider and newer data set.


Sign in / Sign up

Export Citation Format

Share Document