A meta-analytic study on exploration and exploitation

2020 ◽  
Vol 35 (1) ◽  
pp. 97-115 ◽  
Author(s):  
Xiaofeng Shi ◽  
Lixun Su ◽  
Annie Peng Cui
Keyword(s):  
Firm Performance ◽  
Market Orientation ◽  
Firm Size ◽  
Entrepreneurial Orientation ◽  
Firm Age ◽  
Exploration And Exploitation ◽  
Firm Capabilities ◽  
Content Type ◽  
Size Firm ◽  
The Relationship

Purpose This study aims to fill three theoretical gaps in previous literature on exploration and exploitation: the relationship between exploration and exploitation is inconclusive; the influences of exploration and exploitation on firm performance are not consistent; and no empirical studies have integrated the antecedents of exploration and exploitation from the different research fields. Design/methodology/approach The study conducted a meta-analysis to quantitatively synthesize 143 studies with 257 independent samples to understand the relationship between exploration and exploitation and their consequences and antecedents. Findings The results show that exploration and exploitation are positively correlated with each other, and both of them can boost firm performance. Moreover, firm capabilities, firm size, firm age, competitive intensity, market orientation and entrepreneurial orientation positively influence exploration, and firm resources, firm capabilities, firm size, firm age, market orientation and entrepreneurial orientation positively influence exploitation. Competitive intensity negatively influences exploitation. Surprisingly, market turbulence does not significantly influence exploration or exploitation. Originality/value The results not only contribute to the theories by reconciling the inconsistent results but also provide insight for firms with guidance about under what conditions they should use what strategies.

Strategic orientations, firm performance and the moderating effect of absorptive capacity

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Manuel-Alejandro Ibarra-Cisneros ◽  
María del Rosario Demuner-Flores ◽  
Felipe Hernández-Perlines
Keyword(s):  
Firm Performance ◽  
Market Orientation ◽  
Absorptive Capacity ◽  
Entrepreneurial Orientation ◽  
Manufacturing Firms ◽  
Moderating Effect ◽  
Equation Modeling ◽  
Content Type ◽  
Strategic Orientations ◽  
The Relationship

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.

Customer orientation and firm’s business performance

2016 ◽  
Vol 50 (12) ◽  
pp. 2162-2191 ◽  
Author(s):  
Sanja Pekovic ◽  
Sylvie Rolland
Keyword(s):  
Firm Performance ◽  
Market Orientation ◽  
Firm Size ◽  
Business Performance ◽  
Customer Orientation ◽  
Mediating Effect ◽  
Moderating Effects ◽  
Market Environment ◽  
Content Type ◽  
The Relationship

Purpose The purpose of this study is to develop a better theoretical and empirical understanding of the causal and contextual mechanisms explaining the relationship between customer orientation and business performance. Design/methodology/approach A three-stage least squares model was used on a sample of 3,720 French firms with 20 or more employees. Findings By using a moderated mediation approach, it was found that the mediating effect of environmental customer innovation on the relationship between customer orientation and business performance under different contextual factors (market environment, firm size and sector of activity) can be significantly stronger or weaker. Research limitations/implications This analysis is restricted by the choice of one particular country, and further research should use data from other countries to develop a general understanding of the issues examined. Additionally, examining relevant mechanisms other than firm performance measures will advance the understanding of the customer orientation–firm performance linkage. Because of the fact that the majority of variables used are binary and that each survey was conducted in a particular situation and in a particular context, the picture portrayed could be biased. Because environmental issues not only concern consumers but also all other market actors, it would be highly useful to verify the obtained results using broader concepts such as Hult’s (2011) “market orientation plus” concept or the “sustainable market orientation” developed by Mitchell et al. (2010). Practical implications According to the results, to achieve market success and sustain a competitive advantage, managers must simultaneously invest in customer orientation and innovation performance. Additionally, managers should consider market environment, firm size and sector of activity as important contingencies in their decision of whether to invest in customer orientation. Originality/value This study makes an important contribution by opening up a “black box” and offers a deeper perspective on how and why customer orientation affects firm performance. In particular, rather than providing separate analyses of mediating and moderating effects, this study proposes a simultaneous analysis that reveals how and under what conditions customer orientation improves business performance.

Entrepreneurial orientation and firm performance in Italian firms

2020 ◽  
Vol 26 (4) ◽  
pp. 629-646 ◽  
Author(s):  
Jeremy Galbreath ◽  
Lorenzo Lucianetti ◽  
Ben Thomas ◽  
Daniel Tisch
Keyword(s):  
Firm Performance ◽  
Firm Size ◽  
Entrepreneurial Orientation ◽  
Competitive Strategy ◽  
Low Cost ◽  
Secondary Data ◽  
Content Type ◽  
For Profit ◽  
Contingency Perspective ◽  
The Relationship

PurposeConsidering that context is important and relying on a contingency perspective, the purpose of the study is to analyze the relationship between an entrepreneurial orientation (EO) and firm performance in one of the world's oldest economies: Italy. The contingency perspective relies on competitive strategy as a moderating variable.Design/methodology/approachUsing a mix of primary and secondary data sources, relationships are explored in a sample of 229 Italian for-profit firms. Moderated regression analysis is used for the sample and additional tests are conducted by firm size groupings.FindingsThe analysis suggests that an EO is positively associated with firm performance in the sample firms. Further, competitive strategy acts as a moderating influence: a low-cost strategy negatively influences the relationship, while a differentiation strategy positively influences the relationship. The firm size groupings do not appear to affect the results.Research limitations/implicationsThe study examines only for-profit firms in a single country, Italy; therefore, generalizability is limited. The results must be interpreted in light of these limitations.Originality/valueThis study contributes to the entrepreneurship literature by considering a relatively new international context in the EO–firm performance relationship. Further, a new contingency perspective is advanced by considering competitive strategy. In doing so, this study extends an understanding of the conditions under which an EO might be associated with firm performance.

The impact of firm size, firm age and environmental management certification on the relationship between green supply chain practices and corporate performance

2019 ◽  
Vol 27 (1) ◽  
pp. 319-346 ◽  
Author(s):  
Hassan Younis ◽  
Balan Sundarakani
Keyword(s):  
Supply Chain ◽  
Firm Size ◽  
Corporate Performance ◽  
Green Supply Chain Management ◽  
Green Supply Chain ◽  
Firm Age ◽  
Control Variables ◽  
Content Type ◽  
Size Firm ◽  
The Relationship

Purpose The purpose of this paper is to explore if control variables have any impact on corporate performance when implementing green supply chain management practices. The research in particular examines the impact of firm size, firm age and possession of environmental management system (EMS) certification as control variables on different dimensions of the corporate performance. Design/methodology/approach The research design consists of a comprehensive literature review, followed by an empirical questionnaire based survey with responses of 117 participant organizations proceeded by a comprehensive statistical analysis to validate the developed theoretical framework and contribute to both practical and methodological approach. This study investigates the impact of each of these three control variables on four dimensions of corporate performance using multiple regression analysis. Findings The research found that there is positive relationship between firm size and environmental performance, economic performance and social performance but not with operational performance. The study also found that a certified EMS within UAE firms is having a positive impact on all four performance dimensions while firm age does not have any relationship with any of the four performance outcomes. Research limitations/implications The research provides guidance for supply chain managers in the UAE and other similar emerging market in order to better understand the relationship between control variables, impact and performance, on corporate outcome. The paper also describes relevant strategies that should be taken into consideration by these managers in order to build their sustainable supply chain. The research contributes to social dimensions of supply chain sustainability on how resilient green strategies are important for supply chain stakeholders during uncertain conditions so that it can respond to uncertain changes in order to contribute to corporate social responsibility. Some of the limitations of this research include the geographic coverage of the study region and other methodological limitation. Originality/value This research is the first of its kind in the UAE region to assess the link between firm control variables and its impact on green supply chain management practices; which are less studied in the green supply chain literature. While there might be few other studies that addressed and uncovered the relationship between implementing green supply chain management practices and corporate performance, however, no study has attempted to find out if firm size, firm age and possession of EMS would have any impact on the green supply chain practices and corporate performance relationship. The research was conducted in an emerging economy to understand the relationship better. A series of recommendations are also provided for firms interested in improving their environmental performance while implementing green supply chain practices.

scholarly journals A Theoretical Framework on Market Orientation-firm Performance Linkage in Textile Processing Industry: Mediating Effect of Entrepreneurial Orientation

Webology ◽  
2021 ◽  
Vol 18 (Special Issue 03) ◽  
pp. 261-273
Author(s):  
Dibyendu Pal ◽  
Kumar Shalender
Keyword(s):  
Firm Performance ◽  
Organizational Performance ◽  
Conceptual Model ◽  
Market Orientation ◽  
Entrepreneurial Orientation ◽  
Mediating Effect ◽  
Textile Processing ◽  
Processing Industry ◽  
Relationship Of ◽  
The Relationship

The objective of this theoretical paper is to explore the relationship of market orientation (MO) and organizational performance in the context of Indian textile processing industry. The study also aims to construct a conceptual model which can hypothesize the relationship between market orientation, firm performance, and entrepreneurial orientation (EO). The conceptual model is drawn with the help of extant literature review of studies conducted by various authors in the area of market orientation and entrepreneurial orientation. The study presents a model depicting the inter-relationship among MO, EO and firm performance. The proposed model also propounds that the relationship between market orientation and firm performance is mediated by entrepreneurial orientation. This work will be helpful for different stakeholders of textile processing industry to understand the importance of MO and EO and their impact on the performance of the organization. Also, the proposed conceptual model showing inter-relationship among MO, EO and firm performance is an addition to the existing pool of knowledge.

scholarly journals Government institutional support, entrepreneurial orientation, strategic renewal, and firm performance in transitional China

2019 ◽  
Vol 25 (3) ◽  
pp. 433-456 ◽  
Author(s):  
Chengli Shu ◽  
Dirk De Clercq ◽  
Yunyue Zhou ◽  
Cuijuan Liu
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Entrepreneurial Orientation ◽  
Transition Economy ◽  
Institutional Support ◽  
Equation Modeling ◽  
Content Type ◽  
Strategic Renewal ◽  
Firm Financial Performance ◽  
The Relationship

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.

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.

scholarly journals DO FINANCIAL RATIOS, FIRM CHARACTERISTICS AND CORPORATE GOVERNANCE AFFECT FIRM PERFORMANCE?

2019 ◽  
Vol 20 (1) ◽  
pp. 45-50
Author(s):  
JENNY ◽  
SILVY CHRISTINA
Keyword(s):  
Regression Analysis ◽  
Firm Performance ◽  
Firm Size ◽  
Stock Exchange ◽  
The Other ◽  
Debt Ratio ◽  
Firm Characteristics ◽  
Firm Age ◽  
Board Size ◽  
Size Firm

The purpose of this research is to provide evidence about variables that influence firm performance. These variables are board size, debt ratio, firm size, firm age, return on asset, and independent board. Sample of this research are 67 manufactured companies listed in Indonesia Stock Exchange. The sample selected using purposive method, during the 2013 until 2015. Hypothesis tested by using multiple regression analysis. In this research, firm performance were measured by Tobin’s Q. The result of this research shows that debt ratio, firm size, return on asset and independent board have influence on firm performance. The other variables such as board size and firm age have no influence on firm performance.

The moderating role of environmental munificence on innovativeness in B2B markets

2019 ◽  
Vol 35 (5) ◽  
pp. 795-802
Author(s):  
Misra Cagla Gul
Keyword(s):  
Multiple Regression ◽  
Market Orientation ◽  
Entrepreneurial Orientation ◽  
Positive Impact ◽  
Middle Level ◽  
Content Type ◽  
Environmental Munificence ◽  
The Relationship ◽  
Moderating Role

Purpose The purpose of this paper is to understand the relationship between two business orientations, namely, entrepreneurial orientation and market orientation, and innovativeness taking into account the moderating influence of environmental munificence. Design/methodology/approach This is a multiple respondent quantitative study. A total of 312 marketing managers middle level and above from 79 firms participated in the survey. Multiple regression and hierarchical multiple regression was the method of choice for data analysis. Findings Findings indicate that environmental munificence moderates the entrepreneurial orientation – innovativeness relationship. Findings reveal that even though a significant impact of entrepreneurial orientation is not present on innovativeness, this insignificance may be due to environmental munificence. Market orientation has a direct positive impact on innovativeness, and environmental munificence negatively moderates this relationship suggesting that when the environment is less munificent, the market orientation – innovation link becomes stronger. Practical implications Managers should be aware that the more munificent an environment becomes, having an entrepreneurial orientation will be more important for innovativeness. In addition, results of this study suggest that being market oriented more strongly impacts a firm’s ability to innovate in non-munificent environments where growth opportunities are undesirable. Originality/value This study is unique in that it is a multi-respondent study with respondents from different layers of each participating organization, incorporating the moderating impact of the business environment’s munificence on business orientations–innovativeness relationship.

Exploring performance of software houses

2019 ◽  
Vol 16 (1) ◽  
pp. 1-11 ◽  
Author(s):  
Sakhawat Ur Rehman Sahibzada Jawad ◽  
Sadaf Naushad ◽  
Seemab Yousaf ◽  
Zahid Yousaf
Keyword(s):  
Firm Performance ◽  
Market Orientation ◽  
Longitudinal Research ◽  
Content Type ◽  
Correlation And Regression Analysis ◽  
Firm Innovativeness ◽  
Implementation Approach ◽  
The Impact ◽  
The Relationship ◽  
Theoretical Foundations

Purpose The purpose of this paper is to explore the impact of market orientation on firm performance of software houses and examine the mediating firm innovativeness in the relationship between market orientation and firm performance. Design/methodology/approach Data were collected from the employees of software houses located in two big cities of Pakistan. Mean, SD, correlation and regression analysis were conducted to check the relationship among variables. Findings Results show that the performance of software houses largely depends on firm innovativeness and market orientation. Research limitations/implications The authors recommend that further studies are required to test the propositions in longitudinal research design for achieving in-depth insights. Practical implications Software houses need to pay more attention toward market orientation and innovativeness. Originality/value It has been observed that software houses pay less attention toward market dynamics. This research discusses an implementation approach based on solid theoretical foundations to achieve the firm performance through market orientation and firm innovativeness.

Sign in / Sign up

Export Citation Format

Share Document