Using structural equation modelling to assess the sustainable competitive advantages provided by the low-cost carrier model

2018 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Vedant Singh ◽  
S. Vaibhav ◽  
Somesh Kr. Sharma

PurposeThe purpose of this study is to examine the relationships between the dimensions of sustainable competitive advantages in the Indian low cost airlines.Design/methodology/approachThis study used structural equation modelling methods to identify the factors that significantly affect the sustainable competitive advantages enjoyed by Indian low-cost carriers (LCCs). Specifically, this study is based on the data from 208 airline experts that populate multiple structural equation models.FindingsResults indicate that indigenous efficiency, the LCCs perceptions of threat, dexterity, strategic persuasion and the LCC adopting an enabling role positively affect LCCs’ competitive advantages. These five factors were all correlated with each other. The results also show that relative to an LCC’s dexterity, indigenous efficiency is a stronger predictor of an LCC’s competitive advantages.Originality/valueThis study provides low-cost airlines with valuable information for designing effective strategies for obtaining competitive advantages in the LCC sector. To conclude the paper, the authors offer practical recommendations for managers and suggest some avenues for future research in this area.

Author(s):  
Joseph Mbawuni ◽  
Simon Gyasi Nimako

Purpose This study aims to examine factors affecting the adoption of Islamic banking (IB), which is an innovative and emerging form of banking, in a non-Islamic Sub-Saharan African (SSA) country. Design/methodology/approach It used primary data collected from a cross-section of 975 respondents using self-administered structured questionnaire. Empirical data were analysed using SPSS version 16 and partial least squares structural equation modelling (PLS-SEM) for Muslim and non-Muslim groups. Findings Consumer attitude, readiness to comply with Sharia law, knowledge, perceived innovativeness and perceived benefits were critical determinants of bank customers’ intention to adopt IB in both Muslim and non-Muslim sub-groups. The least influential factors were perceived religion effect (PRE) and perceived threat of violence (PTV). PTV was not a significant factor to non-Muslims, but it was a significantly negative factor to Muslims’ intentions to adopt IB. PRE has a positive influence on Muslims’ intention to adopt IB, but it has a negative effective on non-Muslims’ adoption intentions. Research limitations/implications This study is limited to only bank customers in Ghana. Moreover, service quality factors were not included in the research model because IB is yet to be given full-fledged operational license in Ghana. Future research should extend the study to other emerging countries to improve the generalizability of the findings. Practical implications Policymakers are encouraged to develop stakeholder-oriented strategies to promote effective consumer education in IB. Also, IB institution should endeavour to develop innovative financial products that are Sharia-compliant and economically beneficial to individual and business needs of bank customers. Moreover, policymakers and management of IB institutions should ensure effect governance structures to guide IB operations. Originality/value This study provides initial structural equation modelling of determinants of IB adoption in emerging countries and provides empirical evidence on the spread of IB in non-Islamic SSA, which is an under-researched area. It is the first study to empirically report on the influence of PTV, readiness to compliance Sharia law and perceived innovativeness of IB on intentions to adopt IB in non-Islamic SSA context.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nursyazwani Mohd Fuzi ◽  
Nurul Fadly Habidin ◽  
Sabrinah Adam ◽  
Sharon Yong Yee Ong

Purpose This study aims to examine the relationship between environmental cost (EC) on organisational performance (OPM) through an environmental management system (EMS) as the mediating variable. Design/methodology/approach A total of 2,600 manufacturers were identified and consequently selected as the entire study population. Additionally, this study used the structural equation modelling technique to identify the mediator effects of EMS between EC and OPM. Findings The EC and EMS relationship on OPM produced direct and indirect consequences. Hence, it is concluded that manufacturing industry in Malaysia are focused on the OPM when implementing EC and EMS. Originality/value The model would incorporate EC and EMS implementation on OPM in the Malaysian manufacturing industry. This study could also be advantageous to the industry in improving EC, EMS and OPM.


2018 ◽  
Vol 11 (3) ◽  
pp. 761-782 ◽  
Author(s):  
Shamil George Naoum ◽  
Carlos Herrero ◽  
Charles Egbu ◽  
Daniel Fong

Purpose It is axiomatic that construction is a fast-paced and competitive industry, which goes hand in hand with many construction professionals suffering from stress including construction project managers (C-PMs). The role of C-PMs is crucial to achieving project success as they are responsible for planning the project, organising human resources, controlling operations and the budget, and forecasting probable difficulties. The purpose of this paper is to investigate the causal relationships between stressors, stresses, stress-coping behaviours and their impact on the performance of C-PMs. Design/methodology/approach To investigate the relationships between stress and performance among C-PMs, a questionnaire was designed based on the extensive literature, and was sent to 150 C-PMs who had amassed at least five years’ direct working experience in the construction industry. A total of 44 completed questionnaires were returned. Correlation analysis and structural equation modelling were employed to understand the integrated relationships between these factors. Based on the data collected and analysis of the results, an integrated structural equation model of the stresses and performances of C-PMs was developed using AMOS version 22.0. Findings The results of structural equation modelling reveal the following: burnout is the type of stress that has the highest impact on the performance of C-PMs, being detrimental to their interpersonal performance (IPP) and positive for their organisational performance (OP), whereas physiological stress worsens the task performance of C-PMs and objective stress improves their IPP. The most active stressor towards the performance of C-PMs is “workgroup cooperation”, which has an impact on the IPP in a positive way but is detrimental to the OP. Career-developing environment, poor organisational structure and role conflict affect both stress and performance together. Originality/value This study provides a comprehensive investigation into the impact of various types of stress on the performances of C-PMs. The result constitutes a significant step towards the stress management of C-PMs in the dynamic and stressful construction industry.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Joseph Junior Aduba

PurposeThe purpose of this study is to examine the gains, challenges and determinants of electronic banking adoption in Nigeria.Design/methodology/approachThis paper applied the generalized structural equation modelling (GSEM) to a large sample of respondents surveyed from five of the six geopolitical zones of Nigeria to model the determinants of electronic banking. In addition to many other advantages, GSEM can be used as a likelihood function. As a result, this paper proposes GSEM as the most appropriate tool for modelling the socioeconomic determinant of electronic banking adoption.FindingsAbout three-quarter of respondents adopted at least a form of electronic banking. However, only a tenth of users used e-banking for purchase of goods or services, implying low electronic payment adoption. The low adoption of electronic payment was due to poor digital security infrastructure which made users vulnerable to widespread electronic frauds. The findings also show that the adoption of e-banking platforms or services was characterized by users' socioeconomic status. For example, the odds of adopting internet/mobile banking decreases with older users but increase with higher educational attainment and income, whereas the odds of adopting e-banking platforms such as short message service (SMS) and point of sale (POS) banking increases with older users and informally employed users respectively.Practical implicationsFor a sustainable cashless economy and financial inclusion in Nigeria, policy consolidation that provides safe e-banking services is necessary. Also, e-banking service providers should deliver specific contents and services that match the physical and economic characteristics of users.Originality/valueGeneralized structural equation modelling (GSEM) is a robust likelihood function method that combines the power of structural equation modelling with the generalized linear model. The application of GSEM to predict the likelihood of adopting a banking technology or Service has not been explored in electronic banking literature. Also, as a fast-growing economy with a heterogeneous population, Nigeria presents an interesting context to study the determinants of electronic banking.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
David Asamoah ◽  
Dorcas Nuertey ◽  
Benjamin Agyei-Owusu ◽  
Joseph Akyeh

PurposeThe study examines how supply chain responsiveness (logistics process responsiveness, operations systems responsiveness and supplier network responsiveness) impacts the ability of firms to attract, satisfy and retain customers.Design/methodology/approachUsing a quantitative approach, a total of 250 questionnaires were distributed to firms in the Kumasi metropolis in the Ashanti Region of Ghana, with 100 useable responses retrieved. The effect of supply chain responsiveness on customer development was analysed using partial least squares structural equation modelling.FindingsThe findings showed that operations systems responsiveness and supplier network responsiveness drive the logistics systems responsiveness of firms as hypothesized. It was also revealed that operations systems responsiveness and logistics process responsiveness enhanced customer development, but supplier network responsiveness did not. Logistics process responsiveness additionally partially mediated the effect of operations systems responsiveness on customer development.Originality/valueTo the best of the researchers' knowledge, no previous studies have empirically examined interrelationships between the dimensions of supply chain responsiveness. Additionally, no previous study has examined the effect of supply chain responsiveness on customer development.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ricardo Jorge Correia ◽  
Mário Sérgio Teixeira ◽  
José G. Dias

PurposeThis paper aims to explore a new causal link between learning, market and entrepreneurial orientations and firms' performance by introducing dynamic capabilities and competitive advantages as mediator variables.Design/methodology/approachThe mediating role of dynamic capabilities and competitive advantages is tested using a sample of 1,190 Portuguese firms, and structural equation models.FindingsIt is shown that dynamic capabilities mediate the relationship between the three orientations–learning, market and entrepreneurial–and competitive advantages of differentiation and cost leadership, and both competitive advantages lead to firm's performance. It is also shown that learning orientation is an antecedent of market orientation and entrepreneurial orientation.Practical implicationsThis research shows that firm's performance depends on the capacity of firms to learn, innovate, be proactive, take risks and collect the best market data. Indeed, by optimizing the internal management and knowledge dissemination, firms will develop a set of capabilities and competitive advantages that lead to an appropriate response to market challenges.Originality/valueThis study tests the relationship between strategic orientations and firm's performance by taking the mediating effects of dynamic capabilities and competitive advantages into account. This research was conducted in Portugal.


2021 ◽  
pp. 117-178
Author(s):  
Todor Krastevich ◽  
Atanaska Reshetkova

This chapter is dedicated to the structural equation modelling methods applied to solve sustainable development research problems. A structural equation model is an abstraction of reality, and the researcher’s job is to build a model that approximates that reality as closely as possible. This task can be difficult if we do not have a clear understanding of what the reality of the studied phenomena is. Sometimes there is a sound theory behind the studied phenomena, and we can use variables that other researchers have already pointed out as valid indicators. In other situations, we have to start with a set of variables and test many hypothetical relationships based only on theoretical work. In this chapter, we focus on providing researchers with the knowledge needed to specify, evaluate, and interpret structural equation models (SEMs) in any field of social sciences, but most and foremost—in research related to the concept of sustainable development.


2018 ◽  
Vol 35 (10) ◽  
pp. 2304-2327 ◽  
Author(s):  
Milad Kalantari Shahijan ◽  
Sajad Rezaei ◽  
Muslim Amin

PurposeThe purpose of this paper is to investigate the qualities of delighted cruise travelling experience and proposed cruisers’ experience, service convenience and perceived overall value as the drivers of cruisers’ satisfaction and revisit intention. Thus, the attributes of an effective cruise-marketing strategy in formulating consumer’s recreational experiences are examined.Design/methodology/approachA total of 287 questionnaires were collected and structural equation modelling technique was used to analyse data obtained from cruise travellers.FindingsThe empirical results indicated that service convenience and cruisers’ experience significantly influence perceived overall cruisers’ satisfaction and revisit intention, whereas perceived overall cruise value influences perceived overall cruisers’ satisfaction but not cruisers’ revisit intention. Furthermore, empirical assessments support that service convenience is a higher-order model (reflective-reflective) consisting of decision convenience, access convenience, transaction convenience, benefit convenience and post-benefit convenience.Originality/valueThis research is among ongoing attempts that have been carried out regarding the qualities of cruise satisfaction and revisits intention and uncovers recreational experiences to propose an effective cruise-marketing strategy.


2019 ◽  
Vol 23 (4) ◽  
pp. 649-674
Author(s):  
Bismark Duodu ◽  
Steve Rowlinson

Purpose The purpose of this paper is to advance new insights into how internal and external social capital (SC) facets influence exploratory and exploitative innovation directly, and indirectly through absorptive capability (AC), by drawing on the relational and knowledge-based views. Design/methodology/approach The paper empirically tests the developed model using 135 survey responses from managers in construction contractor firms. Data were factor analysed, and path estimates determined using partial least squares structural equation modelling to test the hypotheses. Findings The results reveal that each social capital (SC) facet has direct benefits for both exploratory and exploitative innovation. The findings also show a mix of full and partial mediation paths between the facets of SC and innovation types through AC. Originality/value Extant research linking SC facets with innovation categories is fragmented. Added to this fragmentation is the dearth of studies linking both intra-firm and inter-firm SC with exploratory and exploitative innovation in firms. This paper makes a novel contribution by testing a model of the direct and indirect links (through AC) between internal and external SC and both exploratory and exploitative innovation in the context of construction contractor firms. The findings show how both facets of SC are necessary for exploratory and exploitative innovation. It reveals the types of relationships and capabilities necessary for specific innovation objectives.


2007 ◽  
Vol 21 (2) ◽  
pp. 91-111 ◽  
Author(s):  
Kwok Leung ◽  
Al Au ◽  
Xu Huang ◽  
Jenny Kurman ◽  
Toomas Niit ◽  
...  

The relationships between social axioms, general beliefs that people hold about the social world, and values, defined as desirable goals for life, were examined in five cultural groups. Results show that the correlations between social axioms and Schwartz's (1992) values are generally low, suggesting that they represent two distinct types of construct. Based on a structural equation modelling approach, results further show that generally speaking, the five axiom dimensions are related to the value types in a meaningful and interpretable manner, and that these relationships are generally similar across the five cultural groups. Implications of these results and directions for future research are discussed. Copyright © 2006 John Wiley & Sons, Ltd.


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