Information technology and performance in industrial business relationships: the mediating effect of business development

2017 ◽  
Vol 32 (7) ◽  
pp. 998-1008 ◽  
Author(s):  
Cecilia Lindh ◽  
Emilia Rovira Nordman

Purpose The study addresses a gap in research concerning the specific purpose of information technology (IT) in business relationships and how it impacts business development and relationship performance. To fill this gap, the purpose of this study is to investigate the prospective effects of IT on business development and relationship performance in the business relationships of industrial firms. Design/methodology/approach Building on previous research from the industrial business relationship field, 353 relationships between Swedish industrial firms and their customers are analyzed with linear structural relations in LISREL. Findings The findings show that the effect of IT on relationship performance is not direct but mediated by business development measured in terms of business creation and product development. Research limitations/implications The study’s results imply that IT that is integrated in inter-firm operations has to be assigned a specific purpose to effectively influence relationship-specific performance. The results also indicate that more research is needed to provide additional insights about the relation between IT and performance in business relationships. Social implications If the full potential of IT-based solutions could be reached, then this could lead to the generation of new products and technologies and more competitive companies, which in turn would create more jobs and greater wealth. Originality/value In conclusion, this study fills a gap in research by highlighting that IT studied with a business relationship approach is particularly important under certain conditions. As such, the study contributes to the research stream seeking to understand the role of IT in industrial marketing and how IT should be used for increasing relationship performance.

2014 ◽  
Vol 20 (3) ◽  
pp. 480-501 ◽  
Author(s):  
Peter Ekman ◽  
Peter Thilenius ◽  
Torbjörn Windahl

Purpose – Research has shown that companies focus their internal processes when they adopt enterprise resource planning (ERP) systems. However, the ERP systems need to expand their functionality to include customers and suppliers (with e-commerce functionality) to reach their full potential. The purpose of this paper is to consider business relationships as a resource but also a limitation when companies strive to get an extended ERP system. Design/methodology/approach – The paper presents an illustrative case study of an industrial company's process of developing an extended ERP and how the company's portfolio of business relationships has affected the solution. The analysis is supported by the markets-as-networks theory. Findings – The process of developing an extended ERP system needs to incorporate the company's business partners (customers and suppliers). It is a simultaneously bottom-up and top-down process given that the operative frontline staff hold the knowledge about the company's business relationships while the corporate management has the means of extending the ERP system functionality and align it with the focal company's strategy. Research limitations/implications – Companies need to consider the fact that the technological and financial status of their customers and suppliers differ. Thus, an effective and flexible extended ERP system needs to include both a high-end and low-end solution as well as understand that a full interorganizational integration might not be realistic. Originality/value – The paper puts forth business relationship portfolios as an important factor to consider when extending the ERP system functionality in the supply chain and toward customers.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Timothy Shea ◽  
Syed Aktharsha Usman ◽  
Sengottuvel Arivalagan ◽  
Satyanarayana Parayitam

Purpose The purpose of this study is to empirically examine knowledge management (KM) practices as a moderator in the relationship between organizational culture and performance. The effect of four types of organizational culture on organizational performance was studied. In addition to direct effects, most importantly, KM practices as a moderator in strengthening the culture-performance relationship were empirically examined. Design/methodology/approach A carefully crafted survey instrument was distributed and data was collected from 1,255 respondents from 10 information technology companies in India. After checking the psychometric properties of the instrument, this paper performs hierarchical regression to test hypotheses. Findings The results reveal that: cooperative culture, innovative culture, consistent culture and effectiveness culture were all positively and significantly related to organizational performance; KM practices were positively and significantly related to organizational performance, KM practices moderate the relationship between various dimensions of organizational culture and organizational performance. Research limitations/implications As with any survey-based research, the present study suffers from the problems associated with self-report measures. These are common method bias and social desirability bias. However, this study attempts to minimize these limitations by following appropriate statistical techniques. Practical implications This study contributes to both practicing managers and the literature on KM and organizational culture. The study suggests that managers use KM practices, which are all-pervasive and very important for improving organizational performance. The results highlight the importance of implementing KM practices in organizations. Originality/value This study provides new insights into the importance of KM practices in achieving sustained competitive advantage by achieving organizational effectiveness. To the knowledge, the importance of KM practices is underemphasized in organizational culture research.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Haseena Bader Alkatheeri ◽  
Fauzia Jabeen ◽  
Khalid Mehmood ◽  
Gabriele Santoro

PurposeThis paper aims to investigate information technology capabilities (ITC)’s influence on organizational performance (OP) within the hospitality industry. Specifically, it analyzes the indirect effects of sustainability practices (SP) and service quality (SQ) on the relationship between ITC and OP. The moderating effect of top management support (TMS) is also examined.Design/methodology/approachUsing a three-wave time-lagged design, 507 UAE hotels' managers took part in the study. Hierarchical regression bootstrapping approach was used to examine the hypothesis.FindingsThis study suggests that ITC are positively related to OP. Furthermore, the study found that SP and SQ mediate the ITC-OP relationship. TMS moderates the positive relationship between ITC and OP and also moderates the relationship between SQ and OP. Additionally, TMS moderates the indirect effect of SQ on the association between ITC and OP, such that the mediating effect is stronger when TMS is at a high level.Research limitations/implicationsThe study shall assist the practitioners of the hospitality firms to focus their attention on ITC to improve SQ and hence achieve optimal performance.Originality/valueThe novelty of this research lies in the presentation of an integrated framework based on a resource-based view to solve the contemporary challenges facing hospitality firms operating in emerging markets in integrating ITC and SP for better organizational results.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tibor Mandják ◽  
Zsuzsanna Szalkai ◽  
Erika Hlédik ◽  
Edit Neumann-Bódi ◽  
Mária Magyar ◽  
...  

Purpose The main goal of the paper is to describe the knowledge interconnection process embedded in an interactive business relationship. The purpose of this study is to understand the knowledge interconnection inside the supplier-buyer relationship in the field of contract manufacturing. The knowledge interconnection process is defined by the authors as a process linked to business relationships, which contains different types of knowledge and various sub-processes related to them. Design/methodology/approach The Industrial Marketing and Purchasing Group (IMP) research framework has been applied and the contribution is a better understanding of the role of knowledge in the interactive business world. The empirical evidence is based on a case study of a Hungarian contract manufacturing company. This paper describes empirical, qualitative research about knowledge interconnection processes applying an abductive research design. Findings The knowledge interconnection process is linked to business relationships. It is a complex process, which contains three types of knowledge and five sub-processes. The knowledge evolution indicates the links between the different types of knowledge. The sub-processes relate to different types of knowledge and allow the flow of knowledge between the supplier and the buyer. In the business relationship, this flow of knowledge makes possible the new knowledge creation. A model of the knowledge interconnection process has been developed. Research limitations/implications Single case studies can create rich descriptions of complex phenomena, but the possibility for generalization is limited. Another limitation is that the knowledge interconnection process has been studied only from the supplier’s perspective. The present research extends IMP’s knowledge of embedded knowledge. In addition, empirical research contributes to the emerging field of IMP research that explores knowledge as a resource but lacks an empirical foundation. Practical implications The knowledge interconnection process is a decisive factor in the development and maintenance of long-term customer relations in the field of contract manufacturing. The evolution of knowledge types – from the body of knowledge to knowledge in use – demands the management of different sub-processes. Knowledge selection, knowledge recombination, knowledge mobilization and new knowledge creation processes are more strongly related to the supplier-customer dyad, while the knowledge relocation process has a network character. The knowledge interconnection process influences the company’s body of knowledge and its relationship management capability. Originality/value The originality of the study is, on the one hand, an empirical examination of the process of knowledge interconnection. On the other hand, the development of a model of the knowledge interconnection process. A further feature is that empirical research has been conducted in the field of contract manufacturing.


2019 ◽  
Vol 27 (2) ◽  
pp. 198-216 ◽  
Author(s):  
Juan Cepeda ◽  
José Arias-Pérez

Purpose Currently, it is commonly accepted that information technology capabilities (ITC) positively influence organizational agility. Nevertheless, studies have recently started to demonstrate that different organizational factors mediate this relation under the controvertible assumption that companies are capable of responding quickly to market changes using their IT in combination with other internal resources. Therefore, companies have given very little attention to collaborative work with external partners. The purpose of this study is to analyze the mediating effects of the acquisition and exploitation capabilities of open innovation on the information technology capabilities – organizational agility relationship. Design/methodology/approach Structural equation modeling was used to test the proposed model with survey data from a multinational corporation that operates in South American emerging economies in the pension and savings businesses. Findings This study found that only the open innovation capability of exploitation has a partial mediating effect. This means that this organizational ability serves as a bridge so that IT capabilities can have a positive incidence on organizational agility. Originality/value This paper adopts a more novel study focus that emphasizes the importance of collaborative work and of the use of external resources that are implicit in open innovation capability. On the other hand, this organizational ability implies external embeddedness, which is usually approached mainly from the network theory in the international business literature; however, this study offers a more interesting study focus in which externally oriented organizational abilities such as open innovation are more important for external embeddedness than are the size and quality of the external network.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
José Arias-Pérez ◽  
Joaquin Alegre ◽  
Cristina Villar

Purpose There has been a great interest in the literature in understanding the incidence of information technology capabilities (ITC) on innovation performance (IP). Recently, it has been proven that this relationship is mediated by organizational factors requiring an additional effort in terms of information processing in a rational and analytical manner, including strategic market orientation and absorptive capacity; however, the role of emotions in this discussion has not been widely addressed. A scenario in which emotions are inhibited, in particular, emotional capability (EC), prevents the activation of other forms of cognition relating to intuition, experience and empathy. Therefore, the purpose of this paper is to analyze the mediating effect of EC on the relationship between ITC and IP. Design/methodology/approach The authors analyzed the statistical significance of the indirect effects through structural equations. Findings The results show the existence of partial mediation of EC. Therefore, it is evidenced that less rational constructs, such as EC, serve as a bridge between ITC and IP, on account of the improvement in information processing, the level of information technology (IT) use and virtual communication. Originality/value This finding is quite significant because it forces innovation researchers and practitioners to reconsider the prevailing study perspective that explores only analytical mediators, which implies an additional effort in terms of rational processing of information. All this because there is a risk of accentuating the cognitive overload and increasing the levels of stress that lead employees to stop receiving and using information provided by IT services, which compromises the possibility of obtaining better results in innovation.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Neuza Ribeiro ◽  
Daniel Gomes ◽  
Ana Rita Oliveira ◽  
Ana Suzete Dias Semedo

Purpose The incompatibility between the sphere of work and the family is a reality that plagues many workers today. The difficult articulation of these two domains leads to the experience of the phenomenon called work–family conflict (WFC). This paper aims to assess the impact that WFC may have on employee engagement and performance, as well as on their turnover intention. It is also intended to test the mediating effect of engagement on the relationship between WFC and performance, and between WFC and the turnover intention. Design/methodology/approach One hundred and sixty-seven employees from various Portuguese organizations were surveyed. Respondents reported their perceptions of own WFC, engagement, performance and turnover intention. Findings The results revealed that employees who feel a higher WFC have lower levels of engagement and greater intention to leave the organization. The WFC showed no relation to performance. Engagement takes on the mediating role in the relationship between WFC and the turnover intention. Practical implications The relevance of this study is related to the implications that it may bring to companies in the context of implementing work–family balance strategies to reduce the referred conflict. Originality/value This study contributes to WFC literature by attempting to integrate in the same model four concepts in a single study to provide a model that depicts the chain of effects between WFC, engagement, individual performance and turnover intention, which has never been done in the Portuguese context.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xiaohui Zhan ◽  
Yun Liu

Purpose The topic of employees’ unethical pro-organizational behavior (UPB) has attracted more and more interest in both practice and academic fields. However, previous studies have mainly investigated the antecedents of UPB and little research has discussed the outcome variables. This study aims to provide a comprehensive understanding of the effect mechanism of UPB on employee performance evaluation rated by a supervisor through a leader-member exchange (LMX) and the moderating role of supervisor bottom-line mentality (BLM). Design/methodology/approach This study used a sample consisting of 304 employees and 96 supervisors in several manufacturing firms in China. The authors used hierarchical linear modeling to test the hypotheses, as this was cross-level research. In addition, this paper also uses Mplus7.4 to test the moderating effects of supervisor BLM on the indirect effects between the UPB and performance evaluation by a moderated path analysis. Findings The results confirm that UPB is positively related to performance evaluation rated by supervisors. Additionally, the mediating effect of LMX in the relationship between UPB and performance evaluation is successfully demonstrated. Furthermore, supervisor BLM cross-levelly moderates the relationship between UPB and LMX, as well as moderates the mediation effect of LMX on the correlation between UPB and performance evaluation. Research limitations/implications The primary contribution of this research is building a cross-level model for the effect of UPB on followers’ performance evaluation scored by the supervisor and thereby extending the nomological networks of both UPB and performance evaluation literature. Another contribution the study makes to the literature is that it provides a new perspective to understand how UPB relates to followers’ performance evaluation. Originality/value This is the first study about how and when UPB predicts followers’ performance evaluation rated by the supervisor.


2020 ◽  
Vol 9 (2) ◽  
pp. 215-234 ◽  
Author(s):  
Muhammad Amir Rashid ◽  
Masood Nawaz Kalyar ◽  
Imran Shafique

PurposeThis research aims to investigate the contingent effect of entrepreneurial orientation (EO) and strategic decision responsiveness (SDR) on the link of market orientation (MO) and performance of women-owned small and medium-sized enterprises (WSMEs).Design/methodology/approachData were collected from 909 WSMEs of Punjab province Pakistan through survey questionnaire. Hierarchical regression is employed to perform the analysis.FindingsResults reveal that although higher-level dimensions of MO directly affect the WSMEs performance, however this linkage becomes stronger under SDR and higher-level dimensions of EO.Practical implicationsManagers should emphasis on the demonstration of EO's dimensions and SDR to utilize the full potential of MO to promote WSMEs performance.Originality/valueTo study the contingent effect of SDR and EO's dimensions in the MO–WSMEs performance nexus is the novelty of this study.


2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ilkka Tapani Ojansivu ◽  
Jan Hermes

Purpose Business relationships are considered long-term and stable. Furthermore, over time, business relationships are expected to become and remain “institutionalized”. The undertone is that this process is deterministic and inevitable. While the authors do not question the long-term nature of business relationships, they argue that the process of “institutionalization” requires more construct clarity. Consequently, they ask the following: What is the source of resilience in business relationships, and how are these relationships maintained over time? Design/methodology/approach To unravel these questions, the authors conducted an historical case study of a business relationship between a government buyer and a software seller extending over two decades. Findings The authors found that while the network around the business relationship is crumbling and all odds are in favor of relationship dissolution, the active maintenance work of key individuals in the relationship prevented detrimental effects and resulted in not only its continuation but also an increased degree of institutionalization. Research limitations/implications The authors contribute to the Industrial Network approach (INA) by providing a non-deterministic approach to the typically taken-for-granted end phase of business relationships. Practical implications The findings illustrate that the process of institutionalization is manageable but requires hard work, highlighting managers as the principle vehicle of relationship maintenance. Originality/value The authors provide construct clarity around the process of “institutionalization”. In fact, they regard the process as reverse compared to the early interpretation in the INA literature in which a business relationship is assumed to start as a “clean slate” and then begins to represent the industry codes of practice over time. They found that “institutionalization” implies that a business relationship is no longer compared with nor is comparable to the institutional prescriptions; in contrast, the relationship has established its own rules and norms, which have been taken for granted by the buyer and seller organization.


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