Scale development and validation for measuring business-to-business Wasta relationships

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ron Berger ◽  
Bradley R. Barnes ◽  
Avi Silbiger

Purpose Managers of multinational enterprises (MNEs) from developed economies are often cautious to understand the cultural environment where they do business. This is predominantly true in developing economies, and even more so in certain Arab countries where MNEs have limited knowledge and experience. The purpose of this study is to report on the development of a research instrument that is applicable to Arab business culture, following the 2011 Arab Spring. The investigation draws on data from three different groups of people, i.e. leaders (business professors and leading politicians), business people and postgraduate business students, all of Palestinian nationality. The article examines the Arabic culturally based business structure called Wasta, a system that relies on social networks and the reciprocal exchange of favors. A research instrument is developed to measure three dimensions of Wasta across these three different groups of people and examines their influence on relationship satisfaction and organizational performance. The findings reveal that the groups are affected differently by these dimensions and see different utility in Wasta. Such insights may be useful for MNE practitioners when entering Arab countries, when seeking to employ younger Arabs and when partnering with Arab businesses or dealing with government officials. Design/methodology/approach Research paper Findings This study has focused on the impact of Wasta on relationship satisfaction and on relationship performance for three different groups of individuals: business people, students and leaders. It was hypothesized that higher levels of each component of Wasta would contribute positively to relationship satisfaction, and that the latter would in turn lead to higher relationship performance. Findings generally supported these hypotheses with some variations among groups. Furthermore, it was predicted that the model would be relevant to all three groups, but would be structured differently reflecting their different views of business. The findings of this study help answer our research question about the socio-economic, cultural and political factors that influence the business process involving Arab and non-Arab business managers. Originality/value Original paper

Author(s):  
Ahmad Farhan Alshira'h ◽  
Hijattulah Abdul-Jabbar

Purpose The purpose of this paper is to investigate the impact of tax audit, tax rate and tax penalty on sales tax compliance and examine the moderating effect of patriotism on the associations between tax audit, tax rate and tax penalty with sales tax compliance among Jordanian manufacturing small- and medium-sized enterprises (SMEs). Design/methodology/approach In this study, 660 questionnaires were distributed by using systematic random sampling to manufacturing SMEs in Jordan, after which a total of 385 useable questionnaires were deemed suitable for analysis. Partial least squares structural equation modelling (PLS-SEM) was used to validate the measurement model and structural model and the predictive relevance of the study’s model. Findings The findings showed that tax audit and tax penalty were positively associated with the level of sales tax compliance, whereas tax rate was insignificantly associated with sales tax compliance. They also demonstrated the moderating significant effect of patriotism on the relationship between tax penalty, tax audit and tax rate with sales tax compliance. Research limitations/implications Tax authorities and policymakers in developing majority societies in developing countries and in other Arab countries, especially in Jordan may use the results to focus their interest on the formulation of policies founded on the outcomes of the study to strengthen eligible SMEs to comply to further boost their sales collections. Originality/value This study extends the deterrence theory in the context of sales tax compliance by proposing the moderating effect of patriotism in the deterrence theory on sales tax compliance among SMEs. Moreover, the suitability for the use of PLS-SEM as a statistical tool in investigating the extended deterrence theory with patriotism as a moderating variable as well as its implications for theory and practice was also discussed.


Kybernetes ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Josef Spurný ◽  
Ivan Kopeček ◽  
Radek Ošlejšek ◽  
Jaromír Plhák ◽  
Francesco Caputo

Purpose The aim of the paper is to analyze the impact of cooperativeness of managers who occupy central positions in interaction networks on the performance and stress levels of a whole organization. Design/methodology/approach To explore this relationship, a multi-parameter agent-based model is proposed which implements the prisoner’s dilemma game approach on a scale-free network in the NetLogo environment. A description of the socioeconomic aspects and the key concepts implemented in the model is provided. Stability and correctness have been tested through a series of validation experiments, including sensitivity analysis. The source code is available for further exploration and testing. Findings The simulations revealed that improving the stress resistance of all employees moderately increases organizational performance. Analyzing managers’ roles showed that increasing only the stress resistance of managers does not account for significantly higher overall performance. However, a substantial increase in organizational performance and a decrease in stress levels are achieved when managers are unconditionally cooperative. This effect is stronger for the lowered stress resistance of employees. Therefore, the willingness of managers to cooperate under all circumstances can be a key factor in achieving better performance and building a more pleasant, stress-free working environment. Originality/value This paper aims to present a model for analyzing cooperation, specifically in the organizational context, extending the prisoner’s dilemma with novel concepts and mechanisms. Although the results confirm the existing theories about the importance of central nodes in complex networks, they also provide further details on how the cooperative behavior of central nodes (i.e. the managers) might benefit the organization.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nathaniel Ayinde Olatunde ◽  
Imoleayo Abraham Awodele ◽  
Bosede Olajumoke Adebayo

Purpose The purpose of this study is to examine the impact of coronavirus disease 2019 (COVID-19) on indigenous contractors in a developing economy with a view to enhancing their performance. Design/methodology/approach The study used a purposive sampling technique to select 37 indigenous contractors with ongoing construction contracts in Osun State, Nigeria who provided data for the study. A structured interview protocol was used to elicit the required information from the interviewees and frequency, percentage and content analysis were used for data analysis. Findings The results showed that the critical impact of COVID-19 on indigenous contractors in a developing economy is: time overrun, loss of profit and creation of dispute. Further results showed that other impacts are a disruption in supply of labour, locally sourced materials are with additional cost, the additional cost of implementing COVID-19 protocols, difficulty in sourcing imported materials and absence of new jobs with the corresponding retrenchment of workers. Practical implications The study recommended special palliatives for the indigenous contractors from the government so as to cushion the impact of the pandemic on them, thereby enhance their survival and performance. A special arbitration panel is set up in each state of the federation to look at disputes arising from the aftermath of the pandemic, this is with a view to adequately compensate indigenous contractors with genuine and properly compiled claims. inferring from the findings of the study, it suffices to say that the severity of the impact of the pandemic is very high on indigenous contractors in developing economies, as such a better preparedness strategy could lessen the impact of such pandemic in the future. Originality/value The study is an attempt to unearth the impact of COVID-19 on indigenous contractors with ongoing construction contracts in a developing economy. The study will be of value to construction stakeholders in providing the information needed to devise strategies to minimise the impact of a pandemic on indigenous contractors in future projects thereby enhance their performance.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ullal Manohar Bhat ◽  
Dhananjay Bapat ◽  
Amit Mookerjee

Purpose The purpose of this paper is to identify critical personality traits affecting and influencing buying behaviour in high involvement consumer durables. It also intends to guide practitioners in selecting appropriate marketing frameworks, consumer segments and processes considering the characteristics of consumer behaviour in developing economies. Design/methodology/approach It systematically reviews the literature on consumer personality traits, its measurement and related consumer buying behaviour. It uses data collected from potential car buyers at various car showrooms across the Indian subcontinent. The authors have worked with the online survey firm Qualtrics, to gather a data set of 328 car purchase intenders’ responses to their validated survey. The model was tested using the SmartPLS. Findings The personality traits of imagination, agreeableness and social factors positively influenced attitude towards automobiles with advanced technology. Further, in line with the theory of planned behaviour, it is seen that a positive attitude towards advanced technology and design for automobiles makes a person more willing to pay for the same. Research limitations/implications The study is confined to consumers intending to purchase a car, who are Indian residents. Originality/value It adds to the comparatively lesser body of study on the impact of personality traits on intentions and attitudes in high involvement consumer durable purchases. Further, it serves as an empirical examination of the adoption of new technologies, in the context of high involvement consumer durables. For practicing managers, it provides a reference for deciding future development directions and approaches related to the effective market launch strategies and commercialization of advanced technology automobiles in India.


2017 ◽  
Vol 10 (4) ◽  
pp. 256-276 ◽  
Author(s):  
Vladimir Hlasny

Purpose The purpose of this paper is to evaluate opportunities for early childhood development (ECD) regarding children’s prenatal care, access to nutrition, health, parental care and cognitive-developmental activities, in 33 surveys from 13 countries. A total of 15 indicators for children’s opportunities are assessed including their typical level, inequality across demographic groups, and factors responsible. Design/methodology/approach Probability regressions estimate the effects of various household circumstances on children’s engagement in development opportunities. Dissimilarity indexes and human opportunity indexes are computed for each ECD dimension. To understand the impact of each household characteristic, Shorrocks-Shapley decomposition is performed. Findings ECD opportunities are poor but improving and becoming more equal across many countries. Progress is uneven. As may be expected, household wealth affects inequality for ECD opportunities facilitated by markets or governments, but not non-market opportunities. For preventive healthcare and preschool enrollment, access is deteriorating, reflecting low priority given to them in public policy. Children’s height falls behind in the first two years of children’s life, suggesting the need for targeted institutional interventions. Surprisingly, countries experiencing uprisings see conditions improving, while other Arab countries see them stagnating or deteriorating. Originality/value Local and national policy should tackle the identified opportunity gaps. Policymakers should allocate proper investment in medical and educational infrastructure and better coordinate support for disadvantaged families to ensure proper prenatal and ECD. International organizations should provide assistance with these programs.


2016 ◽  
Vol 33 (8) ◽  
pp. 1124-1137 ◽  
Author(s):  
Satish Mehra ◽  
Joshua T. Coleman

Purpose The purpose of this paper is to study the impact of successfully coordinating infrastructural capabilities, such as technology, and structural capabilities, such as people, on the performance of service businesses. Effective coordination of these two types of capabilities is shown to impact the implementation of quality management practices and the design of marketing strategy, both of which when utilized properly, lead to enhanced organizational performance. Design/methodology/approach The authors surveyed retail banking firms for this study to analyze empirical data on infrastructural and structural capabilities. Results were corroborated on the basis of in-depth interviews with several banking managers to provide real world verification of the findings. Findings Results indicate that both infrastructural and structural capabilities positively impact the design of marketing strategy, while only structural capabilities impact the implementation of quality management practices. Both, successfully implemented quality management ideals and a well-designed marketing strategy, are shown to enhance overall organizational performance. Research limitations/implications Research was conducted on a specific sector of the service industry, the banking sector. Also, the relatively small size of the study sample may have impacted the outcome of research applicability in some large businesses. Continuously emerging financial regulations could not be incorporated in the study. On the positive side, strong managerial feedback provides guidance toward adopting the study results, and lays the foundation for future research. Originality/value As today’s rapidly evolving society pushes people out of service encounters, replacing them with efficient and cost-saving technology, roles of both the people and the technology in an organization must be fully understood. This paper shows that, despite the exponential growth of technological innovation, both people and technology are critical to enhancing organizational performance through sound quality management practices and supportive marketing strategies.


2015 ◽  
Vol 27 (4) ◽  
pp. 430-446 ◽  
Author(s):  
Busaya Virakul

Purpose – This paper aims to propose an effective response by business organizations to the impact of global challenges and sustainable development (SD). It also presents an overview model of organizational performance employing such an approach. Design/methodology/approach – This paper is a conceptual work based upon a review of theories, research findings and reports gathered from relevant literature. The review yielded the following research framework: many countries are facing global challenges; these global challenges are affecting business organizations as external factors; SD is a concept employed to address these challenges; SD can be applied in business organizations through corporate social responsibility (CSR), corporate governance (CG) and sustainability policy and practices; and embedding CSR, CG and sustainability concepts at a strategic level is an effective response to global challenges. Findings – Global challenges are impacting on business organizations and will continue to do so into the future. CSR, CG and sustainability concepts are increasingly being adopted by leading business organizations throughout the world. Embedding CSR, CG and sustainability concepts at a strategic level can sustain long-term organizational performance, as they help businesses face global challenges in a positive manner and maintain their position in societies on good terms with all stakeholders. Research limitations/implications – Different cultural or socio-economic environments may limit the interpretation and application of the findings or propositions in this research. Practical implications – How CSR, CG and sustainability concepts can be holistically implemented in business practices. Social implications – The role of business in lessening the effect of global challenges and supporting SD is illustrated in the proposed model. Originality/value – This paper demonstrates connections among the following critical influences on organizational performance: global challenges; SD; and CSR, CG and sustainability.


2016 ◽  
Vol 38 (2) ◽  
pp. 200-223 ◽  
Author(s):  
Arup Varma ◽  
Linda Russell

Purpose – The purpose of the paper is twofold – first, to explore the role of perceived organizational support (POS) during the three critical stages of the female expatriate experience, with a view to explaining the disproportionately low numbers of females in expatriate roles; and second, to offer specific suggestions to multi-national enterprises to help them create a level playing field so females can compete for expatriate assignments. Design/methodology/approach – The authors draw upon the theory of POS to explore how the perceived lack of support from their organization during the critical stages of expatriate assignments affects women’s interest, and potentially their performance, in expatriate assignments. The authors develop and present relevant propositions. Findings – This is a conceptual paper that offers a process model of the impact of POS on the three stages of selection of females for expatriates. Research limitations/implications – From a theoretical perspective it is clear that POS can play an important role in the willingness of females to accept international assignments. Thus POS can be a critical determinant of the potential levels of female participation in expatriate assignments. Previously, scholars have argued that the low numbers of female expatriates may be a result of a lack of interest on their part, or because they may not be welcomed in many countries. However, subsequent theses have argued, and many studies have shown, that females can be equally successful. The proposed process model helps to better understand how organizations might dismantle the barriers faced by potential female expatriates, by addressing the key issues at each stage. Practical implications – Multinational enterprises need to ensure that they are drawing from their full pool of talent, if they are to compete effectively against other multinational enterprises. By paying attention to the suggestions, and adopting and executing the propositions, they will be able to avoid the possibility that their qualified female employees may withdraw from the organization if they believe that they are not likely to be considered for expatriate assignments, simply because of their gender, even though they are interested. Social implications – From a societal perspective, it is indeed critical that qualified females are provided the same opportunities that are made available to males. Given that roughly half the population is female, multi-national enterprises that fail to treat their female employees fairly will be seen as poor corporate citizens. Originality/value – This is the first paper to address the critical issue of low numbers of females on expatriate assignments by drawing upon the tenets of the theory of POS. The authors offer several propositions to help multinational enterprises understand the impact of the gender imbalance in expatriate assignments, and offer suggestions on how organizations might improve the participation of females in expatriate assignments.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Vincent Dutot ◽  
Francois Bergeron ◽  
Andrea Calabrò

PurposeWith the increasing digitalization processes taking place in different industries, the success of family small and medium-sized enterprises (SMEs) appears to be more under threat than for any other types of organizations, especially when information technologies (ITs) are not adequately used and managed. To grow and increase the chances of survival, family SMEs need more than ever IT. Stemming from agency theory, the aim of this article is to understand whether family harmony impacts the performance of family SMEs and to what extent IT mediates this relationship.Design/methodology/approachThe research follows a quantitative approach, based on a sample of 182 family SMEs. Structured equation modeling, through SmartPLS, was employed to validate the research model.FindingsThis study’s main findings suggest that family harmony positively impacts firm performance and that IT governance and strategy mediate positively this relationship.Research limitations/implicationsFirst, the relatively limited number of respondents limits the degree of representativeness of all family SMEs. Replicating the research with a larger number of respondents could strengthen the findings. Second, this study is limited to French firms and future research could extend the findings by looking at cross-country comparisons.Practical implicationsFamily SMEs are encouraged to link their IT governance with their IT strategy in order to increase their organizational performance. A favorable family harmony will make it easier to choose and implement a richer IT strategy and put in place an adequate IT governance function.Originality/valueThis research offers an enriched knowledge of the roles of family harmony and technological innovation in family SMEs and IT contexts as significant predictors of organizational performance. It contributes to family firm theory through the identification of three determinants of family SMEs' performance.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Anastasia A. Katou

PurposeThe purpose of this study is to investigate the impact of high-performance work systems (HPWS) on organizational performance through the mediating role of human resources (HR) flexibility (expressed by functional flexibility, skills malleability and behavioural flexibility).Design/methodology/approachThe study examines theoretical relationships in the Greek context, which reflects changing economic and financial crisis, based on multilevel structural equation modelling estimation, using three waves of sample data collected in years 2014, 2016 and 2018 from organizations operating in the private sector.FindingsThe study finds that although HPWS positively influences all three HR flexibility dimensions, this positive effect is not transferred equally to organizational performance. The dominant effect on organizational performance is attributed to skills malleability, a smaller effect to behavioural flexibility and a negligible effect to functional flexibility.Research limitations/implicationsAlthough the data collected refer to three different years, most of the companies and individuals responded to sampling were different. As such, the study does not allow for dynamic causal inferences due to its quasi-longitudinal nature.Practical implicationsThe findings of this study may influence managerial decisions in developing bundles of HPWS policies and practices in relation to HR flexibility attributes.Originality/valueSince most studies consider HR flexibility as an aggregated construct, this study is possibly one of the very few studies that is examining the differential impact of the HR flexibility dimensions on organizational performance in turbulent times.


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