Networking capability and firm performance: the mediating role of market orientation and business process agility

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Randy Kurniawan ◽  
Dyah Budiastuti ◽  
Mohammad Hamsal ◽  
Wibowo Kosasih
Keyword(s):  
Firm Performance ◽  
Market Orientation ◽  
Direct Effect ◽  
Business Process ◽  
Content Type ◽  
Mediating Role ◽  
Telecommunication Technology ◽  
The Relationship ◽  
Significant Direct Effect

Purpose This study aims to examine the effect of networking capability through market orientation and business process agility on the firm performance of medium and large telecommunication technology providers in Indonesia. Design/methodology/approach Research data was collected from the executive management of telecommunication technology providers in Indonesia via a questionnaire survey to obtain 150 valid questionnaires for analysis. This study analysed the overall model fit and hypotheses through confirmatory factor analysis and structural equation modelling. Findings The results reveal that networking capability has a positive and significant effect on market orientation. However, networking capability does not have a significant direct effect on business process agility. The results also indicate that market orientation does not have a significant direct effect on firm performance but through the mediating role of business process agility. Practical implications The findings provide a practical foundation for the organisation’s networking capability to be framed by market orientation and business process agility to enhance firm performance. Originality/value The results indicate that market orientation mediates the relationship between networking capability and business process agility. The findings also reveal that business process agility mediates the relationship between market orientation and firm performance. This study also reconceptualises market orientation to embody the inter-partner coordination dimension and reconceptualise business process agility to embody business partner switching capability.

The impact of balanced agile project management on firm performance: the mediating role of market orientation and strategic agility

2020 ◽  
Vol 30 (4) ◽  
pp. 457-490 ◽  
Author(s):  
Randy Kurniawan ◽  
Dyah Budiastuti ◽  
Mohammad Hamsal ◽  
Wibowo Kosasih
Keyword(s):  
Project Management ◽  
Firm Performance ◽  
Market Orientation ◽  
Content Type ◽  
Mediating Role ◽  
Telecommunication Technology ◽  
Agile Project Management ◽  
Strategic Agility ◽  
The Impact

Purpose This study aims to examine the impact of balanced agile project management (balanced APM) on firm performance through the mediating role of market orientation and strategic agility of medium and large telecommunication technology providers in Indonesia. Design/methodology/approach Research data was collected from the executive management of telecommunication technology providers in Indonesia via a questionnaire survey to obtain 150 valid questionnaires for analysis. This study analyzed the overall model fit through confirmatory factor analysis and causal relationships through structural equation modeling. Findings The results indicate that market orientation mediates the link between balanced APM and strategic agility and that strategic agility mediates the link between market orientation and firm performance. Research limitations/implications The choice of single telecommunication industry in a single country, Indonesia, provides a limitation on external validity. It is, therefore, suggested to extend the research efforts to other industry sectors in multi-country environments. Originality/value This study extends the knowledge about agile project management by embracing balancing control enforcement and tests it empirically. This study also re-conceptualizes strategic agility to embrace business partner switching capability and market orientation to embrace the inter-partner coordination dimension. Finally, the results highlight that agile project management needs to be framed by market orientation to create higher value for customers. However, market orientation alone is not enough and that the organization requires strategic agility to achieve firm performance.

“Ownership structure and firm performance: the mediating role of board characteristics”

2020 ◽  
Vol 20 (4) ◽  
pp. 719-737 ◽  
Author(s):  
Md Mamunur Rashid
Keyword(s):  
Firm Performance ◽  
Ownership Structure ◽  
Indirect Effect ◽  
Positive Influence ◽  
Board Independence ◽  
Content Type ◽  
Board Characteristics ◽  
Mediating Role ◽  
The Relationship

Purpose The purpose of this study is to examine the mediating role of corporate board characteristics in the relationship between ownership structure and firm performance in the listed public limited companies of Bangladesh. Design/methodology/approach The study analyzed 527 annual reports of listed companies in Bangladesh for the years 2015-2017. The direct and indirect effect of ownership structure on firm performance was examined using AMOS 23. Baron and Kenny’s (1986) four steps procedure was used to establish the mediating role of board characteristics. Findings The results demonstrated that foreign ownership and director ownership have significant positive influence on both accounting and market based firm’s performance, while institutional ownership exhibits positive influence only on accounting-based performance (return on assets). With respect to mediating effect, the results show that board size and board independence partially mediate the relationship between ownership structure and firm performance. Research limitations/implications The major limitation of the study is that it focuses only on three years data in examining the hypothesized relationship among the variables. Practical implications Investors, regulators and managers can get evocative insights, particularly who seek to improve their company’s performance in the capital market through restructuring their ownership structure and board composition. Originality/value The study focuses on both direct and indirect effect of ownership structure on firm performance in the context of an emerging and developing economy. In examining the indirect effect, the study uses board size and board independence as the mediating variables.

Institutions and entrepreneurship: the mediating role of corruption

2017 ◽  
Vol 13 (3) ◽  
pp. 262-282 ◽  
Author(s):  
Mohsen Mohammadi Khyareh
Keyword(s):  
Direct Effect ◽  
Rule Of Law ◽  
Institutional Quality ◽  
Test Theory ◽  
Entrepreneurial Activity ◽  
Content Type ◽  
Mediating Role ◽  
Mediation Hypothesis ◽  
The Relationship

Purpose The purpose of this paper is to examine the mediating role of corruption in the relationship between entrepreneurship and institutional quality in a sample of 90 countries from all around the world. Design/methodology/approach The data were collected from the Global Entrepreneurship Monitor, which developed a model where Corruption Perception Index as a proxy for corruption mediates the relationship between the variable rule of law as a proxy for institutional quality and opportunity entrepreneurship as a proxy for productive entrepreneurship. Correlation, Baron and Kenny approach (causal steps approach) and PROCESS Macro (normal test theory) developed by Hayes were used to find out the direct and indirect effects of institutional quality between corruption and entrepreneurship. Findings The bootstrap mediation results indicated that institutional quality was a significant predictor of corruption and corruption was a significant predictor of entrepreneurship. These findings support the mediation hypothesis. In addition, findings showed that there is a negative relation between corruption and productive entrepreneurship and a positive relation between institutional quality and productive entrepreneurship. Research limitations/implications The current study only considered the single proxy for institutional quality, i.e. rule of law; therefore, some other proxies for institutional quality such as government effectiveness and doing business can be used for future studies. Moreover, the proposed model does not control for the country differences like GDP or development stages of countries. Practical implications The findings of this study indicate that the total association between institutional quality and entrepreneurship is not only direct but also that rule of law contributes to levels of entrepreneurship through reduced levels of corruption. As a result, countries with higher levels of rule of law tended to experience corruption at lower levels, which in turn contributed to the emergence of increased levels of entrepreneurship. Furthermore, these results may be beneficial for organizations fighting against corruption, because entrepreneurial activity can be add to the group of economical drivers constrained by corruption. It is also beneficial for policy makers who focus on promoting entrepreneurship, since one way to increase entrepreneurial activity is to lower the existing corruption level. Originality/value The results indicated that the direct effect of institutional quality on the entrepreneurship remained significant when controlling for corruption, thus suggesting partial mediation. In other words, corruption only mediates part of the effect of institutional quality on entrepreneurship, that is, the intervention (institutional quality) has some residual direct effect even after the mediator (corruption) was introduced into the model.

The role of internationalization in entrepreneurial orientation-performance link: empirical study of SMEs in a developing nation perspective

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Zaynab Dadzie ◽  
Ahmed Agyapong ◽  
Abdulai Suglo
Keyword(s):  
Firm Performance ◽  
Empirical Study ◽  
Entrepreneurial Orientation ◽  
Developing Nation ◽  
Content Type ◽  
Mediating Role ◽  
And Performance ◽  
The Impact ◽  
The Relationship

Purpose This study aims to examine the mediating role of internationalization in the relationship between the dimensions of entrepreneurial orientation (EO) and performance, empirical study of small and medium scale enterprises (SMEs) in a developing nation. Design/methodology/approach The study uses a sample of 158 exporting SMEs based in the sub-Saharan developing economy, Ghana. The use of hierarchical regression (ordinary least square analysis) was used by the researcher to assess the suggested model of the study. Findings Largely supporting the conjectural predictions, the study indicates that EO positively and significantly influences performance; internationalization fully mediates the relationship between innovativeness and performance of export firms; internationalization fully mediates the relationship between risk-taking and performance of export firms; and finally, internationalization partially mediates the relationship between competitive aggressiveness and performance of export firms. Managers are, therefore, encouraged to strategically develop both their EO and internationalization, as the study has confirmed that EO has both a direct and indirect relationship with performance. Originality/value This study integrated a resource-based view of the firm and international entrepreneurship theory as a theoretical foundation. Theoretically, internationalization’s mediating role reveals the relevance of this construct in the linkage between entrepreneurial orientation and firm performance. Furthermore, the study extends the entrepreneurial orientation concept to the international business literature by estimating and testing models of the mediating link between entrepreneurial orientation and performance. Moreover, the study seeks to broaden the knowledge of entrepreneurial orientation and its relationship with performance in small and medium businesses. The study further extends the limited studies on performance, driven by entrepreneurial orientation and internationalization in a developing nation (Ghanaian) context. This paper besides seeks to highlight the impact of entrepreneurial orientation on performance when channeled through internationalization. The study also reveals the dimensions of entrepreneurial orientation to be important antecedents of internationalization, in attempts at unearthing the critical predictors of firm performance, especially those of international characteristics.

High-performance human resource management and firm performance

2015 ◽  
Vol 115 (2) ◽  
pp. 353-382 ◽  
Author(s):  
Kangyin Lu ◽  
Jinxia Zhu ◽  
Haijun Bao
Keyword(s):  
Firm Performance ◽  
Human Resources ◽  
High Performance ◽  
Human Resources Management ◽  
Chinese Enterprises ◽  
Content Type ◽  
Resources Management ◽  
Mediating Role ◽  
The Relationship

Purpose – Human resources have become a key issue in relation to the strong competition between service firms. Therefore, the purpose of this paper is to explore the relationship between high-performance human resource management (HRM) within this field to firm performance, making a useful attempt to explore the “black box” of enterprise human resources management effect on firm performance. Design/methodology/approach – In order to validate the relationship between high-performance HRM and firm performance, Chinese service industry samples were collected. Structural equation modeling and regression are adopted to estimate the direct effect of high-performance HRM on firm performance and the mediating role of innovation. Findings – The results show that the impacts of high-performance HRM on firm performance are significant. Moreover, innovation plays a partial mediating role between them. Training, work analysis and employee participation has a significantly positive impact on firm performance, while effects of profit sharing, employee development and performance evaluation on enterprise performance is not significant. The results strongly support the hypothesis that innovation holds intermediary variables between high-performance HRM and firm performance. Practical implications – Studying the relationship between high-performance HRM and firm performance can help Chinese enterprises more reasonable and effective learning foreign advanced management ideas and methods. And then can help Chinese enterprises to establish a high-performance HRM system that is suitable for Chinese enterprises; the research can help enterprises to identify meaningful practice of human resources management, outstanding keys, and perfect the HRM system of enterprises; research on innovation and innovative thinking is conducive to develop employees’ innovation motive, promote employee’ innovative behavior, and improve firm performance. Originality/value – This paper takes innovation as a mediating variable into the model and studies the intermediary role of innovation.

A Case Study of the Mediating Role of Innovation on the Relationship Between Environmental Uncertainty, Market Orientation, and Firm Performance

2016 ◽  
Vol 13 (06) ◽  
pp. 1750003 ◽  
Author(s):  
Cevahir Uzkurt ◽  
Halil Semih Kimzan ◽  
Cengiz Yılmaz
Keyword(s):  
Firm Performance ◽  
Market Orientation ◽  
Product Innovation ◽  
Environmental Uncertainty ◽  
Mediating Effect ◽  
Hierarchical Regression ◽  
Mediating Role ◽  
The Relationship

In recent years, environmental uncertainty and market orientation have been considered key elements of superior firm performance. Although environmental uncertainty and market orientation may affect firm performance, innovation also mediates these effects. In this study, a conceptual model was developed to test the mediating effect of innovation on the relationships between these constructs. Data for the study were collected from Turkey’s Top 500 Companies. Hierarchical regression and multiple regression analyses were employed to test the research hypotheses. The findings of the study revealed that the direct effects of environmental uncertainty and innovation on firm performance were statistically significant, although the effect of market orientation was not. The results obtained from the present study seem to indicate a possible “dual effect” of market orientation on firm performance. The results also indicated that innovation, especially product innovation, mediates the relationship between environmental uncertainty and firm performance. The findings indicate that innovation, especially product innovation, is critical for firm performance.

Impact of export market orientation on export performance

2014 ◽  
Vol 9 (4) ◽  
pp. 403-425 ◽  
Author(s):  
Ku-Ho Lin ◽  
Kuo-Feng Huang ◽  
Yao-Ping Peng
Keyword(s):  
Market Orientation ◽  
Information Exchange ◽  
Export Performance ◽  
Export Market ◽  
Organizational Relationships ◽  
Content Type ◽  
Mediating Role ◽  
The Relationship ◽  
Degree Of Internationalization

Purpose – The purpose of this paper is to explore the mediating role of export market orientation (EMO) in the relationship between inter-organizational relationships and export performance, and the moderating role of degree of internationalization in the relationship between EMO and export performance. Design/methodology/approach – The authors sent questionnaires to the 1,000 largest manufacturers listed in CommonWealth magazine (2009), and a random sample of 500 machinery manufacturers listed in the Taiwan Association of Machinery Industry Directory. The authors received 244 completed questionnaires through which to examine the hypotheses. Findings – The findings show that trust and social interaction positively influence EMO, which then enhances export performance. However, the moderating effect of degree of internationalization has no significant impact on the EMO and export performance relationship. Research limitations/implications – Future studies should conduct two-way research on focal firms (manufacturers) and overseas partners (agents or distributors) through common variables including trust, commitment, satisfaction, etc. The results indicate that the content validity of the present study is somewhat inadequate, possibly due to the cultural differences involved. Practical implications – Overseas information exchange between exporters and partners fosters firms’ export performance. Thus, closer relationships with channel partners or customers via trust and social interactions may help firms to conduct appropriate EMO activities to access overseas market information and improve export performance. Originality/value – By investigating Taiwanese exporters, who tend to emphasize relational capital, the authors determine that EMO is important in understanding how inter-organizational relationships influence export performance. The authors also contribute a more comprehensive view to the literature.

Organizational agility: do agile project management and networking capability require market orientation?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Adler Haymans Manurung ◽  
Randy Kurniawan
Keyword(s):  
Project Management ◽  
Organizational Performance ◽  
Market Orientation ◽  
Organizational Agility ◽  
Content Type ◽  
Telecommunication Technology ◽  
Agile Project Management ◽  
The Relationship ◽  
Moderating Role

PurposeThis study aims to examine the joint impact of networking capability and agile project management on organizational agility of telecommunication technology providers' in Indonesia. The study also examines the moderating role of market orientation as a predominant strategic orientation on the relationship between agile project management and organizational agility.Design/methodology/approachResearch data were collected via a questionnaire survey from the executive management of telecommunication technology providers in Indonesia to obtain 150 valid questionnaires for analysis. This study analyzed the overall model fit and causal relationship using confirmatory factor analysis and structural equation modeling.FindingsThe results indicate that networking capability positively affects organizational agility. However, agile project management's significant effect on organizational agility occurs only when the relationship is moderated by market orientation. The results of the study also demonstrate that organizational agility positively affects organizational performance.Research limitations/implicationsThis study is based on a cross-sectional nature and might fail to capture the studied variables' dynamic over an extended period.Originality/valueThe study enriches the previous literature in organizational agility by presenting the collective impact of networking capability and agile project management and the moderating role of market orientation. However, dissimilar with major prior studies, the results indicate that agile project management's direct effect on organizational agility is not significant. Agile project management needs to be moderated by market orientation to create exceptional customer values and overcome the competition for the organization to achieve organizational agility, responsiveness and adaptability to address customers' needs and requirements. Furthermore, the study's result corroborates the importance of organizational agility to achieve organizational performance in the highly dynamic telecommunication industry.

Mediating role of immediate performance outcomes between supply chain integration and firm performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nikhat Afshan ◽  
Purnendu Mandal ◽  
Angappa Gunasekaran ◽  
Jaideep Motwani
Keyword(s):  
Supply Chain ◽  
Firm Performance ◽  
Financial Performance ◽  
Performance Outcomes ◽  
Supply Chain Integration ◽  
Equation Modeling ◽  
Content Type ◽  
Mediating Role ◽  
The Relationship

PurposeThe purpose of this paper is to examine the mediating role of immediate performance outcomes on the relationship between dimensions of supply chain integration (SCI) and financial performance.Design/methodology/approachThis study tests the proposed model linking dimensions of SCI, immediate performance outcomes and financial performance using structural equation modeling on a sample of Indian manufacturing companies.FindingsThe findings suggest that the relationship between dimensions of SCI and firm performance is fully mediated through the immediate performance outcomes.Originality/valueThis study deals with the potential benefits of SCI, especially in developing countries like India, where a little research has been done in this area. Also, this study provides support to practitioners that SCI is an effective way of improving both supply chain performance and financial performance.

scholarly journals The nexus between dynamic capabilities and competitive firm performance: the mediating role of open innovation

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Asta Pundziene ◽  
Shahrokh Nikou ◽  
Harry Bouwman
Keyword(s):  
Firm Performance ◽  
Open Innovation ◽  
Dynamic Capabilities ◽  
Competitive Performance ◽  
Content Type ◽  
Mediating Role ◽  
Competitive Firm ◽  
The Relationship ◽  
Practical Implications

PurposePrior research has reported the indirect implications of firm's dynamic capabilities on their competitive firm performance. Our attention now turns to open innovation since it has been confirmed to be an influential factor contributing to the superior performance of technological firms. So far there has been little research on assessing the relationship between a firm's dynamic capabilities as an antecedent of the competitive performance of the firm or investigations into the mediating role of open innovation in this relationship.Design/methodology/approachDrawing on the theory of dynamic capabilities, we developed a framework as a way to better understand the role of open innovation, which could then help to better explain the relationship between firms' dynamics capabilities and their competitive firm performance. Based on the empirical data of 465 firms operating in innovative and non-innovative industries, we employed structural equation modelling (SEM) to examine the research hypotheses and the path relationships in the proposed model.FindingsThe SEM analysis revealed that a firm's dynamic capabilities significantly impact its open innovation performance and that open innovation, consequently, impacts the competitive performance of the firm. Moreover, the results show that the path between dynamic capabilities and competitive firm performance is partially mediated through open innovation.Practical implicationsThe findings provide practical implications and draw managerial attention to the importance of: (1) investing in innovation, (2) engaging customers in the innovation process and (3) maintaining innovation management excellence as significant antecedent factors in increasing competitive firm performance.Originality/valueConsidering the lack of empirical research in the literature on the links between dynamic capabilities and open innovation, this paper contributes to the dynamic capabilities and open innovation literature by confirming that open innovation not only mediates the relationship between these two aspects but also strengthens the effect the dynamic capabilities have on competitive firm performance. Besides, due to the significant impact of dynamic capabilities on open innovation, dynamic capabilities might be regarded as an antecedent of open innovation.

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