Institutional pressures and the extent of cross-channel integration: the moderating effect of enterprise's capabilities

2020 ◽  
Vol 3 (1) ◽  
pp. 113-133
Author(s):  
Guangling Zhang ◽  
Chenchen Liu ◽  
Hui Wang

PurposeCurrently, the issues of cross-channel integration (CCI) have become the attentive focus. However, little research based on institutional theory details the drivers of and obstacles to adopt CCI strategy. Combined with resource-based view (RBV) and institutional theory, this thesis studies the effect of institutional pressures on the manufactures' extent of CCI, through exploring the moderating effects of firm's technology competence and relationship governance capabilities on the relationship between institutional pressures and the extent of CCI.Design/methodology/approachThe survey data of 249 valid research samples were obtained from Chinese manufacturing enterprises. Statistical software such as SPSS 22.0 and AMOS 18.0 was used to analyze the data and test the conceptual model and relevant research hypotheses from an empirical perspective.FindingsThe results of empirical study from 249 manufacturers indicate that the mimetic, coercive and normative pressures perceived by enterprises can significantly promote their extent of CCI; relationship governance capabilities attenuate the positive impact of mimetic pressures on the extent of CCI, but strengthen that of normative pressures on the extent of CCI; besides, technology competence can attenuate the positive effect of mimetic pressures on the extent of CCI, but enhance that of normative pressures on the extent of CCI.Originality/valueFew studied the impact of the interaction of internal capabilities and external institutional pressures on CCI of enterprises. This study combines institutional theory and resource-based view to fill the theoretical gap in this regard.

Author(s):  
Wendy L. Tate ◽  
Lisa M. Ellram ◽  
Kevin J. Dooley

Purpose – Suppliers play a more significant role in the environmental footprint of supply chains than most final manufacturers. The purpose of this paper is to apply transaction costs and institutional theory to help understand why the more conservative, or reactive suppliers may or may not be likely to adopt environmental practices. Design/methodology/approach – This research builds on a prior conceptual paper and uses the results of a survey to test whether transaction costs and institutional theory can provide insight into supplier's adoption of environmental practices. Findings – This research finds that perceived transaction costs affect supplier cooperation in adopting environmental practices. Suppliers are more likely to adopt an environmental practice if information-seeking costs are low or the cost of adoption is considered necessary to maintain the relationship. Data did not support the hypotheses concerning institutional pressures. Originality/value – There is much research in the area of proactive adoption of environmental business practices. This research looks specifically at what influences the adoption of environmental business practices by suppliers that are more reactive or hesitant to be leaders in this area.


2019 ◽  
Vol 11 (3) ◽  
pp. 536-554 ◽  
Author(s):  
Yi Qing ◽  
Moyu Chen ◽  
Yu Sheng ◽  
Jikun Huang

Purpose The purpose of this paper is to investigate the impact of mechanization services on farm productivity in Northern China from an empirical perspective, with the aim to identify the underlying market and institutional barriers. Design/methodology/approach The authors apply the regression method with the control of village fixed effects to examining the relationship between capital–labor ratio, mechanization service ratio and farm productivity, using the panel data collected in 2013 and 2015 by CCAP. Findings Mechanization services improve farm productivity through substituting labor, but it may generate a less positive impact on farms who do not have self-owned capital equipment. Originality/value It is the first study to investigate how mechanization services affect farm productivity for grain producers in Northern China.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohammad Nisar Khattak ◽  
Noor Muhammad ◽  
David Robinson

PurposeThis study determines the relationship between small and medium-sized enterprises (SMEs) and their support providers during three phases: pre-conflict environment, during conflict environment, and the post-conflict (uncertain) environment with the reference to institutional theory in the northwest region of Pakistan where there is ongoing unrest between the authorities and the insurgents.Design/methodology/approachUsing a qualitative approach, a total of 23 semi-structured interviews were conducted, 19 with the owner-managers of small manufacturing firms and 4 from small business support providers in the region.FindingsThe authors theorise the changing role of support agencies as differing institutional gaps, while conflict is destructive for SMEs and support agencies; paradoxically the crisis results in stronger relationships between the support providers and SMEs which was weaker in the pre-conflict environment. Such stronger relationship enhanced the cognitive pillar of institutional theory where entrepreneurship is supported by various groups including government agencies and SMEs to alleviate unemployment in the region which is one of the potential reasons of terrorism in the country.Practical implicationsThe study may have value for policymakers who need to know more about how small businesses and support providers develop a support network in difficult regions and give a comprehensive framework to other conflictual regions who face similar circumstances.Originality/valueThis research contributes to the previous literature in several ways. First, the study reveals the impact of conflict environment on small businesses and support providers where a little research has been undertaken. Second, the study shows the support mechanism in three different intervals pre-conflict, during the conflict and post-conflict and how the Talibanization in the region has a positive impact by strengthening the support structure among small businesses and support providers. Finally, the study contributes to the growing body of literature on entrepreneurship in conflict environments.


2016 ◽  
Vol 21 (3) ◽  
pp. 398-416 ◽  
Author(s):  
Yi-Chun Huang ◽  
Min-Li Yang ◽  
Ying-Jiuan Wong

Purpose This study aims to explore the relationships among institutional pressures, commitment of resources and returns management. Returns management is regarded as a part of supply chain management. However, the research in returns management has received much less attention. To bridge the gap, this study concerns key concepts from two important schools of thought, i.e. institutional theory and the resource-based view, to build up the research model. Design/methodology/approach Retailers and maintenance providers in the 3C industry (computers, communication and consumer electronics) in Taiwan were surveyed, and the statistical methods of hierarchical and moderated regression were used to examine the relationships among institutional pressures, commitment of resources and returns management. Findings Institutional pressures, comprising non-market and market pressures, affect the implementation of returns management (product return practices and product recovery practices). Commitments of resources positively and significantly moderate the relationship between the pressures imposed by non-market and market actors and product return practices and product recovery practices. Research limitations/implications This study investigates only the factors that drive returns management. Future research can examine the relationship between the antecedents and consequences of returns management. Furthermore, returns management may become increasingly critical for firms to develop and perform corporate social responsibility (CSR). Therefore, future research can investigate the relationship between CSR practices and returns management. Practical implications This research suggests that managers under institutional pressures should continually pay attention to the effects of external factors on returns management. Additionally, the results reveal that a commitment of resources can reinforce the relationship between the pressures imposed by non-market and market actors and the implementation of returns management. Under significant institutional pressures and resource constraints, managers may increase the effectiveness of returns management while attending to the concerns of non-market and market actors. Originality/value This study presents a model that considers three major explicative variables: institutional pressures, resources commitment and returns management. It is the first investigation to integrate three streams of literature on institutional theory, the resource-based view and returns management.


2020 ◽  
Vol 27 (4) ◽  
pp. 555-578 ◽  
Author(s):  
Esteban Lafuente ◽  
László Szerb ◽  
András Rideg

PurposeThe analysis of the interconnectedness between resources and capabilities, and the way businesses use them as competitive weapons is a central element of the strategic management literature. Finding the appropriate configuration of competitive pillars is particularly relevant for resource-constrained small businesses. Drawing on the resource-based view and the configuration theory, this study evaluates the effect of both competitiveness and the configuration of the competitiveness system on performance.Design/methodology/approachAn index methodology based on the configuration theory was used to compute the competitiveness index on a unique sample of 625 Hungarian small- and medium-sized firms. The study hypotheses were tested via regression analysis.FindingsResults show that the impact of competitiveness-enhancing strategies is conditional on the configuration of the system of competencies. Low-competitive businesses benefit more from investments in the weakest competitive pillar, while strategies oriented to improve more than one competitive pillar yield higher competitiveness improvements among high-competitive businesses. Our findings also indicate that competitiveness positively impacts performance, and that the exploitation of competitive strengths leads to superior results among high-competitive businesses.Originality/valueBy employing an index methodology, our analysis contributes to unveil how competitiveness impact business performance. The proposed analysis has value for scholars and strategy makers by showing how the configuration of the business' competitive system—in terms of competitive strengths and weaknesses—conditions the generally positive impact of competitiveness enhancing actions linked to the acquisition or development of resources and capabilities.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rosa Lombardi ◽  
Antonietta Cosentino ◽  
Alessandro Sura ◽  
Michele Galeotti

Purpose This paper aims to examine the European Union (EU) 95/2014 Directive’s impact on large public companies. It chose Italy as a pivotal country that made non-financial information assurance mandatory, going beyond the EU Directive’s original requirements. Specifically, it investigates how the UE Directive fosters institutionalisation of the non-financial reporting (NFR) process in organisations. Design/methodology/approach Two large public companies in Italy are used as case studies. Data are gathered from annual and integrated reports, institutional websites and semi-structured interviews with the managers and employees involved in different organisational positions. The authors adopted the neo-institutional theory as a theoretical lens to identify the organisations’ response to the (external) institutional pressures influencing corporate reporting practices. Findings The findings demonstrate how the EU Directive fostered changes to large public companies’ reporting practices and external pressures contributed to influencing changes to internal organisational practices in terms of new internal processes, procedures and structures. These changes are motivated by the companies’ need to guarantee reliable information to be produced in their non-financial reports. Practical implications This paper helps academics and policymakers to advance NFR practices by understanding regulatory factors that can foster changes in the internal reporting process and responsibility within organisations. Originality/value The findings provide some empirical insights to foster reflections on the EU Directive’s effectiveness in changing reporting practices. This paper contributes to enriching the literature on institutional theory in shaping mandatory non-financial disclosure by identifying the institutional pressures influencing the effectiveness of regulations to change NFR practices.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Zhaoguo Zhang ◽  
Chi Zhang ◽  
Danting Cao

Purpose At present, the number of corporates certified by ISO14001 in China is ranked first in the world. This paper aims to explore the effectiveness of ISO14001 certification and the moderating effect of financial performance and external institutional pressures on the effectiveness. Design/methodology/approach This paper selects Shenzhen and Shanghai A-share listed companies in the heavy polluting industry from 2010 to 2017 as the research sample, and studies the impact of ISO14001 certification on corporate environmental performance and the moderating effect of financial performance and external institutional pressures. Findings This paper finds that ISO14001 certification has a positive impact on corporate environmental performance; corporate financial performance has a positive moderating effect in the relationship between ISO14001 certification and corporate environmental performance; government regulation, industry competition and media supervision also have positive moderating effects; and corporate environmental information disclosure has not yet had a positive moderating effect. Originality/value Most of the current empirical research on this topic are carried out in the context of developed countries, and lack empirical evidence from developing countries. This paper will help to make up for this deficiency. In addition, this paper will help explain why the effectiveness of ISO14001 certification generates variation in different corporates and under what conditions it will play a positive role.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ozgur Ozdemir ◽  
Erhan Kilincarslan

Purpose This study aims to examine the governance role of shareholders and board of directors in determining firm performance through an eclectic multi-theoretic model that integrates structure and incentive functions of agency theory and capability aspect of the resource-based view. Design/methodology/approach The research model uses a large panel data set of 2,364 UK firms over the period 2000–2010 and uses alternative specifications of the model to improve robustness. Findings The results show that the industry experience of major shareholders as a proxy for shareholder capability has a significant positive impact on investee firm performance. The findings also reveal that the lock-in effect of the largest shareholder has a positive impact on performance, whereas the monitoring effectiveness of shareholders is not associated with ownership concentration. Moreover, the results indicate the underlying capabilities of the board of directors and their impact on corporate performance – particularly, the interlocking directorates of executives have a positive impact on firm performance but those of non-executives have a negative one. However, the previous directorship experience of non-executives has a positive impact on performance. Research limitations/implications This study presents a more comprehensive and complete understanding of the governance-performance relationship beyond the narrow or partial explanations provided by single-theory-based studies or those of investigating the effect of various governance tools separately. Practical implications This study provides more insights into the capability dimension of shareholders and the role of incentives in motivating shareholders to exercise stronger oversight on the management rather than just using ownership concentration. Hence, the study can serve as valuable guidance for investors, corporate managers and policymakers. Originality/value To the best of the knowledge, this is the first comprehensive study that uses an eclectic philosophical approach, integrating the agency theory and resource-based view, to not only examine the impact of board of directors but also investigate the governance role of shareholders in modern corporations to understand how shareholders acquire the requisite skills and information, the best practices and processes, and ultimately use the scarce and inimitable resources that help investee firms in improving their performance.


2020 ◽  
Vol 12 (11) ◽  
pp. 4506 ◽  
Author(s):  
Badar Latif ◽  
Zeeshan Mahmood ◽  
Ong Tze San ◽  
Ridzwana Mohd Said ◽  
Allah Bakhsh

This paper explores the impact of institutional pressures on the adoption of environmental management accounting (EMA). EMA has been recognized as a valuable mechanism to deal with environmental issues. This paper uses institutional theory to explain the drivers of EMA adoption in Pakistan. Data were collected from the manufacturing sector in Pakistan through a questionnaire-based survey. The study concludes that coercive, normative and mimetic pressures have a significant and positive impact on the adoption of EMA.


2019 ◽  
Vol 31 (1) ◽  
pp. 169-192
Author(s):  
Sajad Fayezi ◽  
Andrew O’Loughlin ◽  
Ambika Zutshi ◽  
Amrik Sohal ◽  
Ajay Das

Purpose The purpose of this paper is to investigate the impact of behaviour-based and buffer-based management mechanisms on enterprise agility using the lens of the agency theory. Design/methodology/approach This study is based on data collected from 185 manufacturing enterprises using a survey instrument. The authors employ structural equation modelling for data analysis. Findings The results of this study show that buffer-based mechanisms used for dealing with agency uncertainty of supplier/buyer not only have a positive impact on agility of enterprises, but are also contingent on the behavioural interventions used in the relationship with a supplier/buyer. Behaviour-based mechanisms also positively impact enterprise agility through mitigating the likelihood of supplier/buyer opportunism. Practical implications This study demonstrates that buffer- and behaviour-based management mechanisms can be used as complementary approaches against agency uncertainties for enhancing enterprise agility. Therefore, for enterprises to boost their agility, it is vital that their resources and capabilities are fairly distributed across entities responsible for creating buffers through functional flexibility, as well as individuals and teams dealing with stakeholder engagement, in particular, suppliers and buyers. Originality/value The authors use the lens of the agency theory to assimilate and model characteristic agency uncertainties and management mechanisms that enhance enterprise agility.


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