Saving for the bad times: slack resources during an economic downturn

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Maria Agusti ◽  
Jose L. Galan ◽  
Francisco J. Acedo
Keyword(s):  
Economic Downturn ◽  
Slack Resources ◽  
Content Type ◽  
Financial Measures ◽  
Industrial Companies ◽  
Environmental Threat ◽  
Industrial Sectors ◽  
Similar Resource ◽  
And Performance

Purpose This paper aims to examine what firms in Spanish industrial sectors redeployed their resources, depending on their organisational slack (resource excess), when faced with the global economic crisis of 2008. Design/methodology/approach Various financial measures for slack resources and performance have been analysed from more than 400 Spanish firms from 2006 (pre-crisis) to 2017 (recovery). Findings The first finding is that every slack is useful against an economic downturn. The results show how industrial companies use their slack resources when faced with a generalised crisis according to the level of slack possessed. The key role of the available slack against this environmental threatens is remarked. Research limitations/implications Not every resource is useful against an economic downturn. The results show how industrial companies use their slack resources when faced with a generalised crisis in accordance with the types and levels of slack. The key role of the liquid resources, in particular cash, against this environmental threat is discussed. However, we also observe the behaviour of firms with only a few excess resources and find very similar resource consumption patterns. Originality/value Although organisational slack is a well-known concept in management, few studies deal with how companies consume or use other types of resources when confronting a crisis. This paper not only addresses this question but also offers insights for a detailed evaluation of various types of slack during and after a crisis.

scholarly journals Relationship between slack resources and performance: temporal symmetry and duration of effects

2020 ◽  
Vol 29 (3) ◽  
pp. 255-275 ◽  
Author(s):  
Maria Agusti-Perez ◽  
Jose Luis Galan ◽  
Francisco J. Acedo
Keyword(s):  
Long Term Effects ◽  
Short Term ◽  
Slack Resources ◽  
Content Type ◽  
Industrial Companies ◽  
Permanent Effect ◽  
And Performance ◽  
The Impact ◽  
Temporal Symmetry ◽  
Financial Profitability

PurposeAlthough slack resources and their relationship to performance have been widely studied in the literature, the temporal symmetry of this relationship, and the duration of its effects, are still unknown aspects and are the objective of this paper.Design/methodology/approachTo evaluate this effect, an exploratory study has been designed on a sample of 449 Spanish industrial companies over a period of 12 years, assessing the impact of idle resources on economic and financial profitability. By means of hierarchical regressions, the short- term, medium- term and long-term effects of slack resources have been evaluated.FindingsThe results show that the impact on performance depends on the type of resource considered. Available slack has a consistent and positive effect on economic profitability in the short term. Other types of slack show persistent effects on performance, but, in the case of the recoverable slack, with a negative sign that contradicts the benefits provided by these resources. Finally, potential slack only has a permanent effect on financial profitability, but the sign changes depending on the economic context under consideration. There are also differences in the duration of the effects according to the type of resources.Originality/valueThis paper advances the knowledge about the slack-performance relationship over time that has been scarcely studied.

The effect of strategic alignment on purchasing management

2017 ◽  
Vol 40 (11) ◽  
pp. 1175-1200 ◽  
Author(s):  
Javier Alfonso Rodríguez-Escobar ◽  
Javier González-Benito
Keyword(s):  
Operations Management ◽  
Structural Equation ◽  
Planning Process ◽  
Strategic Alignment ◽  
Future Research ◽  
Sources Of Information ◽  
Content Type ◽  
Industrial Companies ◽  
And Performance

Purpose This research aims to establish the role of the purchasing function’s strategic alignment in the relationship between well-established practices and performance in that function. It is argued that the strategic alignment of purchasing may have effects (direct, mediating and moderating effects) on the purchasing function’s operating performance. Design/methodology/approach The hypotheses derived from key studies about strategic and advanced purchasing practices are tested with data from 156 industrial companies using structural equation modelling methodology. Findings The results suggest that the effect of strategic alignment on the role of purchasing consists of mediated effects on purchasing performance through implementation of certain advanced practices. It was also concluded that strategic alignment – as well as the implementation of these advanced purchasing practices – fosters the implementation of differentiation strategies based on quality, dependability and flexibility rather than on the implementation of cost leadership strategies. Research limitations/implications Although it is a common practice in operations management research, the use of perceptual measures obtained from a single informant constitutes a noteworthy limitation. Future research should make an effort to combine different sources of information and to identify and use more objective indicators. Practical implications Top managers should take into account the need to involve the purchasing function in the firm’s strategic planning process. Originality/value The results not only confirm findings from previous literature as to the purchasing function’s strategic relevance but also help clarify the mechanisms that make this integration important.

The psychological role of the leader in turbulent times

2009 ◽  
Vol 8 (3) ◽  
pp. 30-35 ◽  
Author(s):  
Catherine Sandler
Keyword(s):  
Leadership Development ◽  
Oil And Gas ◽  
Leadership Behavior ◽  
Professional Services ◽  
Economic Downturn ◽  
Content Type ◽  
For Profit ◽  
Turbulent Times ◽  
And Performance

PurposeThis paper aims to deliver a psychological perspective on the theme of leading in turbulent times.Design/methodology/approachDrawing on 20 years' experience of consulting, coaching and teaching in the field of leadership development, the author outlines the dynamics that businesses face during an economic crisis. Based on her extensive observation of workplace behavior, the author describes the psychological and emotional role that leaders need to play if they are to optimize morale and productivity during turbulent times. The author's ideas have been developed as a result of coaching numerous leaders and top teams at board and director level in FTSE 100 and 250 companies and top professional services firms, as well as SMEs and not‐for‐profit organizations. Her private sector clients come from every area, including investment banking, oil and gas, IT, property, retail, law, accountancy and venture capital. Many of these organizations operate in highly competitive markets where managing uncertainty and change is the norm. However, the economic downturn has presented additional challenges, especially to those at the sharp end of the credit crunch and the collapse in consumer confidence.FindingsIt is concluded that four leadership behaviors are critical in times of crisis. Taken together, they enable leaders to support their workforce effectively during turbulent times, so maximizing morale and performance. The paper also highlights the role of HR and specific ways in which seasoned HR professionals can help leaders manage their own emotions and demonstrate these four behaviors.Originality/valueThis article reflects the author's original, practice‐based observations about organizational dynamics and leadership behavior during challenging times.

Internal projects as strategic tools: an organisation-level perspective and a research agenda

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Torbjørn Bjorvatn
Keyword(s):  
Project Management ◽  
Theory Development ◽  
Future Research ◽  
Content Type ◽  
Theoretical Contribution ◽  
Research Areas ◽  
Linear Relationships ◽  
Strategic Role ◽  
And Performance

PurposeThe purpose of this conceptual paper is to describe and explain how organisations use internal projects to implement organisation-level strategy objectives.Design/methodology/approachTheory development with an emphasis on explaining key constructs and their mutual relationships. The theoretical contribution is represented in a diagram along with a detailed verbal account.FindingsThe paper develops a dynamic, cross-level framework to illustrate the organisational processes and outcomes that determine project-based strategy implementation within a single organisation. The interplay between the base organisation and the project, and benefits realisation were singled out as key future research areas. The proposed framework engages with central discourses in the fields of project management, strategic management, innovation studies, knowledge management and organisation studies.Research limitations/implicationsOnly the contours of an organisation-level theory of strategically motivated internal projects are outlined. Future research must elaborate on the complexities, the non-linear relationships and the boundary conditions that follow from the proposed framework.Practical implicationsManagers are alerted to the strategic role of internal projects, how these projects help connect strategy and performance and what the accompanying organisational processes and outcomes look like.Originality/valueThe paper constitutes an early conceptual treatment of strategy-driven internal projects as a distinct project category, thus addressing a major knowledge gap in project studies. Organisational project-management theory is extended with suggestions for future research.

Intergenerational hybrid products in periods of discontinuous change

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Wilian Gatti Junior ◽  
Alceu Salles Camargo Junior ◽  
Paul Varella
Keyword(s):  
New Technologies ◽  
New Technology ◽  
Annual Reports ◽  
Discontinuous Change ◽  
Historical Case ◽  
Content Type ◽  
Industrial Sectors ◽  
Hybrid Products ◽  
Organizational Inertia

PurposeThis study examines the role of hybrid products employed in companies' innovation strategy within three American industrial sectors: tires, typewriters and photography cameras.Design/methodology/approachThe authors selected historical cases that enabled us to present the role of hybrid products in periods of discontinuous change. Different sources are employed in this study: papers, books, cases, working papers, videos, manuals and product catalogues, companies' annual reports, company websites, advertising, collectors' websites and museums, in addition to press and other media reports.FindingsThe authors’ historical case analysis points to two forms of hybrid products. (1) Exploitation-hybrid, which incorporates significant elements from the existing dominant design and aims at extending the revenue-generating opportunities of the existing products. (2) Exploration-hybrid, which works as an offensive strategy, as the firm uses the exploration-hybrid to promote a gradual and controlled adoption of new technology by reducing risks and the cost of change for the customer.Research limitations/implicationsThe authors’ proposed definitions strengthen the idea that hybrids are not only a reflection of organizational inertia (exploitation-hybrid). Hybrids can also mean a more proactive stance in the strategy of developing and adopting new technology (exploration-hybrid).Originality/valueThis study acknowledged hybrid products as a learning instrument that materialized the organizational ambidexterity, favoring at the same time exploitation, generally attributed to organizational inertia, and the exploration of new segments of customers or the use of new technologies.

How the creative mindset affects entrepreneurial success in the tourism sector: the mediating role of innovation capability

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Natthawut Yodchai ◽  
Pham Thi Minh Ly ◽  
Lobel Trong Thuy Tran
Keyword(s):  
Tourism Industry ◽  
Innovation Capability ◽  
Entrepreneurial Success ◽  
Content Type ◽  
Analytical Technique ◽  
Mediating Role ◽  
Business Goals ◽  
Tourism Sector ◽  
And Performance

Purpose This study aims to adopt implicit theory (IPT) to develop a creative mindset model and drive entrepreneurial success through innovation capability (IC). Design/methodology/approach Expert interviews were conducted using a questionnaire protocol. This study investigated the effect of the creative mindset on entrepreneurial success through IC, using a partial least squares analytical technique and by interviewing 176 Thai business owners. Findings The creative mindset drove entrepreneurial success through IC. Entrepreneurs possessing a growth mindset reflected and drove success directly or through IC. Although, those with a strong, fixed mindset did not significantly affect entrepreneurial success, they could drive success through IC. Research limitations/implications This study provides further insight into the probable causation of how the creative mindset and IC affect tourism entrepreneurs’ success. Accordingly, this study contributes a framework to help entrepreneurs’ creativity and performance in achieving their business goals. Originality/value Drawing from IPT, this study empirically tests and substantiates the mediating role of IC in the relationship between the creative mindset and entrepreneurial success in the tourism industry. This study can help entrepreneurs increase their managerial effectiveness.

Knowledge management, workplace climate, creativity and performance

2018 ◽  
Vol 30 (8) ◽  
pp. 592-612 ◽  
Author(s):  
Amro Alzghoul ◽  
Hamzah Elrehail ◽  
Okechukwu Lawrence Emeagwali ◽  
Mohammad K. AlShboul
Keyword(s):  
Job Performance ◽  
Knowledge Sharing ◽  
Authentic Leadership ◽  
Equation Modeling ◽  
Workplace Climate ◽  
Content Type ◽  
And Performance ◽  
The Impact ◽  
The Relationship

Purpose This study aims at providing empirical evidence pertaining to the interaction among authentic leadership, workplace harmony, worker's creativity and performance in the context of telecommunication sector. These research streams remain important issues and of interest as the world continues to migrate toward a knowledge-based economy. Design/methodology/approach Applying structural equation modeling, this study diagnosed the impact of Authentic leadership (AL) on employees (n = 345) in two Jordanian telecommunication firms, specifically, how it shapes workplace climate, creativity and job performance. The study also tests the moderating role of knowledge sharing in the model, as well as the mediating role of workplace climate on the relationship between AL and positive organizational outcomes. Findings The empirical result suggests that AL positively influences workplace climate, creativity and job performance; workplace climate positively influences creativity and job performance; workplace climate mediates the relationship between AL and creativity, and job performance; and knowledge sharing behavior moderates the relationship between AL and workplace climate. Originality/value This study highlights the magnificent power of AL and knowledge sharing, not only in shaping the workplace atmosphere but also in delineating how these variables stimulate creativity and performance among employees. The implications for research and practice are discussed.

scholarly journals Infrastructure development in Africa’s regions: investment trends and challenges

2021 ◽  
Vol 295 ◽  
pp. 01029
Author(s):  
Alina Ibragimova ◽  
Yan Wang ◽  
Michail Ivanov
Keyword(s):  
Empirical Evidence ◽  
Production Function ◽  
Global Economy ◽  
Point Of View ◽  
Economic Downturn ◽  
Infrastructure Development ◽  
Social Infrastructure ◽  
Economic Point ◽  
Industrial Sectors

The purpose of this work is to provide information on the development of the infrastructure of the African economy. The study provides statistics on African regions and industries. This article focuses on the forms of economic and social infrastructure, and directs to determine the share development infrastructural in Africa. The Africa has entered an era of devastating change this study shows that with the unfolding economic downturn in the northern economies that have traditionally dominated the global economy. The article provides empirical evidence on how the industrial sectors developed from an economic point of view. The authors believe that infrastructure affects output and productivity directly as a contribution to the production function of other sectors and as part of GDP formation. The article discusses the development of infrastructure for the period 1999-2019 without more detailed dynamics. It also does not explain the main topics developed by the authors. The work provides knowledge on how investments are developing in Africa, how industries have developed, and what is the role of each infrastructure sector in this development. It also shows how different areas of infrastructure work with different successes in creating new paths in the African economy.

Adapting Altman's model to predict the performance of the Palestinian industrial sector

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Bahaa Awwad ◽  
Bahaa Razia
Keyword(s):  
Stock Exchange ◽  
Statistical Significance ◽  
Multiple Linear Regression Model ◽  
Industrial Sector ◽  
Main Hypothesis ◽  
Content Type ◽  
Independent Variables ◽  
Industrial Companies ◽  
And Performance ◽  
The Relationship

PurposeThis study aims to adopt the Altman model in order to predict the performance of industrial companies listed on the Palestinian Stock Exchange during the period of time between 2013 and 2017.Design/methodology/approachThe study sample consisted of 12 industrial companies listed on the Palestine Stock Exchange, and their financial disclosure period extended for 5 years. Multiple linear regression model was used in the analysis to determine the relationship between the independent variables and the dependent variable where the independent variables were (X1, X2, X3). This study is based on one basic assumption, which is that the Altman's model cannot predict the performance of the Palestinian industrial sector.FindingsThe results of the analysis proved the negation of the zero main hypothesis. This means that Altman's model can predict the performance of the Palestinian industrial sector at the level of statistical significance (a = 0.05), as well as the existence of a statistically significant relationship between each of the independent variables (X2, X4, X5) and the dependent variable (Log (Z-score)). Hence, the relationship of X1 and X3 with the dependent variable was not statistically significant.Social implicationsThis paper highlights different challenges that face the adaption of Atman's model and performance prediction in the Palestinian industrial sector. The findings of the analysis have the potential to help future researchers in examining and dealing with new challenges.Originality/valueThis paper presents a vital review of adopting Altman's model in the Palestinian industrial sector. A number of recommendations have been made, the most important of which is that most of the companies are located in the red zone. The Altman's model must be adapted in order to fit the Palestinian environment according to the results of statistical analysis and according to a proposed model, which is Log (Z) = −0.653 + 0.72X2 + 0.18X4 + 0.585X5.

scholarly journals Promoting creativity and innovation: expected and unexpected consequences

2019 ◽  
Vol 13 (3) ◽  
pp. 296-310 ◽  
Author(s):  
Thi Hong Nguyen ◽  
Angelina Nhat-Hanh Le
Keyword(s):  
Unethical Behavior ◽  
Structural Equation ◽  
Path Model ◽  
Equation Modeling ◽  
Task Characteristics ◽  
Content Type ◽  
And Performance ◽  
Creativity And Innovation ◽  
Unexpected Consequences

Purpose The paper aims to explore the role of climate for creativity and innovation as the situational variable to lead to both expected and unexpected consequences (e.g. performance and unethical behavior), by discovering the relationships among task characteristics (e.g. difficulty, clarity and performance pressure), individual psychological aspects (e.g. mindfulness and self-justification) and work environmental conditions (e.g. peer behavior and climate for creativity and innovation). In this study, task characteristics are proposed to positively associate with unethical behavior via mindfulness. Moreover, climate for creativity and innovation is proposed to moderate the relationship between self-justification and unethical behavior. Finally, unethical behavior is predicted to positively influence on performance. Design/methodology/approach Data were collected from the sample of salespeople, who are working for variety of companies in Vietnam. Partial least squares structural equation modeling (PLS-SEM) and SmartPLS 3 are implemented to test the path model. Findings Emphasizing both bright and dark sides of promoting creativity and innovation, the study highlights the role of climate for creativity and innovation in strengthening the positive relationship between self-justification and unethical behavior. In turn, unethical behavior positively influences performance. Further, the findings indicate that mindfulness contributes in explaining unconscious unethical behavior. Originality/value Exploring the relationships among climate for creativity and innovation, unethical behavior and performance, this paper contributes for deeper understanding of variety aspects of innovation. Demands for an intelligent management in modern workplaces are suggested.

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