The moderating effect of firm size on relational capital and firm performance

2019 ◽  
Vol 20 (4) ◽  
pp. 510-532 ◽  
Author(s):  
Antonio Corvino ◽  
Francesco Caputo ◽  
Marco Pironti ◽  
Federica Doni ◽  
Silvio Bianchi Martini
Keyword(s):  
Firm Performance ◽  
Competitive Advantage ◽  
Firm Size ◽  
Resource Dependence ◽  
Resource Dependence Theory ◽  
Moderating Effect ◽  
Relational Capital ◽  
Ongoing Debate ◽  
Content Type ◽  
The Relationship

Purpose The purpose of this paper is to contribute to the ongoing debate regarding the relationship between relational capital (RC) and firm performance, by investigating the moderation effect of firm size and its key role in defining conditions for competitive advantage. Design/methodology/approach The paper uses the interpretative lens of the resource dependence theory, and refreshes consolidated studies rooted in RC. It identifies a set of variables to measure the influence of RC on firm performance, including the cost of goods sold, interest expenses and earnings per share. Content analysis was used to capture specific features of corporate disclosure tools using 51 items pertinent to RC. The authors used a specific disclosure index drawing on data collected from 73 listed firms in France, Germany, Italy and the UK. Data covering the period from 2011 to 2013 were analyzed using six regression models. Findings Firm size has a moderating effect on the relationship between RC and some variables linked to firm performance. Originality/value The study combines an internal and external perspective to investigate the interplay between firms and market environments, and therefore, enriches the ongoing debate concerning the relationship between RC and firm performance. It outlines possible ways through which RC can become an effective source of competitive advantage.

The influence of chief data officer presence on firm performance: does firm size matter?

2019 ◽  
Vol 119 (3) ◽  
pp. 495-520 ◽  
Author(s):  
Yu Nie ◽  
John Talburt ◽  
Serhan Dagtas ◽  
Taiwen Feng
Keyword(s):  
Firm Performance ◽  
Firm Size ◽  
Performance Indicator ◽  
Moderating Effect ◽  
Hierarchical Regression ◽  
Rank Test ◽  
Content Type ◽  
The Cost ◽  
Size Matter ◽  
The Relationship

PurposeThe purpose of this paper is to investigate the relationship between the chief data officer’s (CDO) presence and firm performance, and the moderating effect of firm size.Design/methodology/approachThe performance data for 64 treatment firms with CDOs and 64 control firms without CDOs is collected from Compustat database. The Wilcoxon signed-rank test is used to analyze the performance differences between treatment firms and control firms. Hierarchical regression method is used to test the moderating effect of firm size.FindingsThe results indicate that the profit ratios of treatment firms are significantly improved after the appointment of CDOs, and the profit ratios of treatment firms are significantly higher than that of the control firms. For the cost ratios, the findings provide some empirical evidence revealing two of the cost ratios are lower and only one ratio is higher for the treatment firms after CDOs’ appointment. Firm size moderates the relationship between the CDO’s presence and firm performance indicator, ROS, in the same direction. Firm size has no moderating effect on relationships between CDO’s presence and other performance indicators.Practical implicationsThe findings provide practical insights that will help managers to realize the importance of CDOs and their work. CDOs would bring some cost to the firms, but they would bring more profit to firms. In addition, if for large firms, the CDO’s presence would bring more ROS.Originality/valueThe study explores the relationship between the CDO’s presence and firm performance. It is the first attempt to explore the CDO’s presence and the cost performance in the specific time period, and the study is also the first attempt to analyze the moderating effect of the firm size on the relationship between the CDO’s presence and firm performance.

Strategic orientations, firm performance and the moderating effect of absorptive capacity

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Manuel-Alejandro Ibarra-Cisneros ◽  
María del Rosario Demuner-Flores ◽  
Felipe Hernández-Perlines
Keyword(s):  
Firm Performance ◽  
Market Orientation ◽  
Absorptive Capacity ◽  
Entrepreneurial Orientation ◽  
Manufacturing Firms ◽  
Moderating Effect ◽  
Equation Modeling ◽  
Content Type ◽  
Strategic Orientations ◽  
The Relationship

PurposeThe purpose of this article is to study the moderating effect of absorptive capacity, defined as the set of organizational routines and processes through which companies acquire, assimilate, transform and exploit knowledge to produce a dynamic organizational capacity (Zahra and George, 2002), in three strategic orientations: market orientation; technology orientation and entrepreneurial orientation and their positive relationship in the performance of the medium and large Mexican manufacturing firms. Likewise, it is determined whether these three combined SOs influence firm performance.Design/methodology/approachThe data was collected from 171 medium and large-sized Mexican manufacturing firms. The proposed hypotheses are tested using partial least square structural equation modeling (PLS-SEM).FindingsDespite the importance of knowledge for the development of firms, the results indicate that the moderating effect of absorptive capacity is only present in the relationship between entrepreneurial orientation and firm performance. That is, firms cannot take advantage of knowledge simultaneously between the three strategic orientations. For their part, market orientation and entrepreneurial orientation exert a positive influence on firm performance.Practical implicationsThe main practical implication for the manufacturing industry is that they must develop mechanisms to detect what kind of knowledge affects each strategic orientation, in this way it can make the absorptive capacity influence the relationships between SO and FP.Originality/valueThe main contribution consists of studying the moderating effect of the absorptive capacity on the relationship between three strategic orientations and firm performance, and not concentrating solely on the simultaneous use of these strategies as is commonly done.

scholarly journals Partnership-Based Supply Chain Collaboration: Impact on Commitment, Innovation, and Firm Performance

2019 ◽  
Vol 11 (2) ◽  
pp. 449 ◽  
Author(s):  
Nina Shin ◽  
Sun Park ◽  
Sangwook Park
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Structural Equation ◽  
Resource Dependence ◽  
Resource Dependence Theory ◽  
Equation Modeling ◽  
Supply Network ◽  
Supply Chain Collaboration ◽  
The Impact ◽  
The Relationship

With increasing numbers of nodes and links in supply network relationships, understanding partnership management and the required level of collaboration is important for sustainable supply network alignment. This study explores the impact of partnership orientation on partnership commitment and firm performance using a model based on social capital theory and resource dependence theory. It aims to understand the appropriate partnership orientation for the desired level of commitment and firm performance, including innovation, operational, and financial performance. Using a survey of 423 respondents representing three different partnership structure types (supplier, buyer, and parallel-aligned firms’ perspectives), the relationship between partnership orientation and commitment in enhancing firm performance is investigated using structural equation modeling. Additional analysis identifies the moderating role of commitment and investment exchange on performance. The findings show that positive relationships between both investment and contractual-based partnership orientation positively contribute to partnership commitment, but the direct association between partnership commitment and firm performance type varies by partnership structure. Furthermore, (i) investment exchange level moderates the relationship between commitment and innovation and operational performance regardless of partnership structure type, (ii) negative investment exchange signals higher firm performance from the buyer firm’s perspective, and (iii) positive investment exchange is absolutely necessary for financial performance from the supplier firm’s perspective.

Industry innovation spending and openness to collaboration as levers for firm performance

2019 ◽  
Vol 22 (4) ◽  
pp. 617-638 ◽  
Author(s):  
Luiz Fernando de Paris Caldas ◽  
Fabio de Oliveira Paula ◽  
T. Diana L. van Aduard de Macedo-Soares
Keyword(s):  
Firm Performance ◽  
Knowledge Spillovers ◽  
Moderating Effect ◽  
Firm Innovation ◽  
Content Type ◽  
Innovation Activities ◽  
Industry Collaboration ◽  
And Performance ◽  
Italian Manufacturing Firms ◽  
The Relationship

Purpose The purpose of this paper is to analyze to what extent spending on innovation activities and collaboration at the industry level affects the relationship between firm innovation and performance. Design/methodology/approach A conceptual model was proposed and empirically tested using multiple linear regression. The data were obtained from the Community Innovation Survey 2012, composing a sample of 890 Italian manufacturing firms. Findings The results provided full support for the positive moderating effect of intra-industry innovation spending and partial support for the positive moderating effect of intra-industry collaboration, both regarding the relationship between firm innovation spending and performance. Knowledge spillovers derived from intra-industry innovation spending and intra-industry collaboration affect firm performance. While this finding corroborates other studies that have found that the intra-industry R&D spending influences firms’ innovation and performance, it also contributes to improve the understanding about the complementarity of internal innovation activities and knowledge spillovers. Originality/value This study contributes to theory by filling a gap concerning the complementarity of internal innovation activities and the effect of knowledge spillovers to improve firm performance. Our findings suggested that intra-industry openness to collaboration and innovation spending, as proxies of knowledge spillovers, plays an important role in complementing firm level innovative efforts, even in the case of firms that spend less on innovation and have a lower degree of collaboration. This is especially relevant for small and medium enterprises, which can take advantage of access to the necessary information to overcome their internal resource constraints for R&D and innovation. The originality of these findings adds value in terms of furthering the understanding of this phenomenon.

Assessing the mediating effect of sustainable competitive advantage on the relationship between organisational innovativeness and firm performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Vural Çağlıyan ◽  
Melis Attar ◽  
Aleem Abdul-Kareem
Keyword(s):  
Firm Performance ◽  
Competitive Advantage ◽  
Customer Value ◽  
Business Performance ◽  
Mediating Effect ◽  
Survey Method ◽  
Sustainable Competitive Advantage ◽  
Content Type ◽  
Theoretical Contribution ◽  
The Relationship

Purpose This study aims to assess the mediating effect of sustainable competitive advantage (SCA) on the relationship between organisational innovativeness (OI) and performance of small- and medium-sized enterprises (SMEs) operating in Konya, Turkey. Design/methodology/approach A survey method is used to collect the necessary data for this research. A total of 264 respondents from 83 SMEs partook in the study. In choosing the sample size, both purposive sampling and simple random techniques are used. The data gathered are analysed using SPSS program and Hayes PROCESS macro v.3.4.1. Findings The results of the analyses reveal that OI has a statistically significant positive effect on SCA and firm performance (FP). Moreover, SCA is found to have a mediating effect on the relationship between OI and FP. Practical implications Policymakers and management of SMEs need to show great commitment to innovativeness and relate it to SCA to create superior customer value, thereby leading to a holistic and long-term FP. Originality/value This study brings to the fore empirical evidence on how SCA serves as a mediator between OI and FP. It also contributes to the literature by focusing on three distinct but related variables. The study makes theoretical contribution by highlighting the role of the resource-based theory in enhancing business performance and SCA through strategic internal resources and innovative activities.

scholarly journals Trends on the relationship between board size and financial and reputational corporate performance

2018 ◽  
Vol 27 (2) ◽  
pp. 183-197 ◽  
Author(s):  
Luis Antonio Orozco ◽  
Jose Vargas ◽  
Raquel Galindo-Dorado
Keyword(s):  
Empirical Evidence ◽  
Corporate Reputation ◽  
High Performance ◽  
Resource Dependence ◽  
Corporate Performance ◽  
Resource Dependence Theory ◽  
Board Structure ◽  
Board Size ◽  
Content Type ◽  
The Relationship

Purpose The purpose of this paper is to investigate the relationship between board size (B-SIZE) and financial and reputational corporate performance in top companies ranked by the Business Monitor of Corporate Reputation – MERCO in Colombia. Design/methodology/approach This paper conducts correlations and cluster analysis in order to classify firms based on performance and control variables, using a sectional sample of 84 large companies in Colombia over the period 2008-2012. Findings This research founds that large boards are associated with high performance on corporate reputation, as stated by the resource dependence theory, and a low-financial performance, as predicted by the agency theory. However, the results indicate that there is no relation between financial and reputational performance. Research limitations/implications This research considered only large companies listed by MERCO. Therefore, the results can only be generalized for top firms in Colombia according to this list. However, results add empirical evidence to theoretical debate between B-SIZE and firm performance considering financial and reputational indicators. Practical implications According to the OECD manual of good corporate governance practices, the optimal B-SIZE has between five to nine core members. The board structure has a direct impact over the firm’s financial and reputational performance and must be carefully analyzed by shareholders to balance the size according to expected results and firm’s features like family ownership, exportation activities and norms of stock markets. Originality/value This paper contributes to the existing literature on the relationship between B-SIZE and corporate performance with the evaluation of financial and reputational results for the case of an emerging economy. In Latin America, this analysis must go beyond OECD recommendations, and shall consider the context of an emerging country based on empirical evidence.

The moderating effect of international trade on outside director system in Korean firms

2019 ◽  
Vol 23 (1) ◽  
pp. 19-34
Author(s):  
Yoonsung Nam ◽  
Tae-Joong Kim ◽  
Wonyong Choi
Keyword(s):  
International Trade ◽  
Resource Dependence ◽  
Control Function ◽  
Resource Dependence Theory ◽  
Moderating Effect ◽  
Main Role ◽  
Global Business ◽  
Content Type ◽  
Dependence Theory ◽  
Outside Director

Purpose The purpose of this paper is to investigate the moderating effect of international trade on outside director system in Korean firms. The authors expected that Korean firms highly depending on international trade would mitigate the resource provision function of outside director system in order to reduce information asymmetry among global business partners. In addition, the authors tried to find out the functions of outside director system: the control function based on agency theory and resource provision function based on resource dependence theory. Design/methodology/approach The authors tested the hypotheses by Poisson regression with 2011 and 2002 Korean-listed manufacturing firms. The dependent variable is the number of excessively appointed outside directors and independent variable is CEO type: family CEO or professional CEO. The moderating variable is the dependency on international trade measured by export proportion out of total sales. Findings The authors found that not control but resource provision function was a main role of outside director system in Korean firms. The authors also found negative moderating effect of dependency on international trade, which means that firms highly depending on global market tended to consider outside director system as control function, namely “global standard.” Originality/value This paper is the leading study that tries to analyze empirically the relationship between international trade and the function of governance mechanism; outside director system in Korean firms. It also confirms that Korean firms adopted outside director system on the basis of the resource dependence theory.

The impacts of competence-based marketing capabilities: relative attention, relationship learning and collaboration development

2018 ◽  
Vol 33 (7) ◽  
pp. 896-910 ◽  
Author(s):  
Feng-Hsu Liu ◽  
Lu-Jui Chen
Keyword(s):  
Resource Dependence ◽  
Least Squares Method ◽  
Resource Dependence Theory ◽  
Marketing Capabilities ◽  
Cross Sectional ◽  
Content Type ◽  
Learning And Collaboration ◽  
Partial Least Squares Method ◽  
The Impact ◽  
The Relationship

Purpose Original equipment manufacturing (OEM) suppliers must identify and communicate competences to ensure that they are successfully translated into competitive advantages. This study aims to explore the competence-based marketing capabilities of suppliers based on competence-based marketing view. It integrates resource-based theory and resource dependence theory to conduct a detailed evaluation of the impact of competence-based marketing capabilities on collaboration development, which is classified as either exploitative or explorative collaboration between buyers and suppliers. Design/methodology/approach The partial least squares method was used to analyse and find direct support for the authors’ hypotheses based on cross-sectional data from a sample of 116 Taiwanese OEM suppliers. Findings The results find no support as recent arguments that the marketing of competence would directly affect collaborative relationships in a buyer–supplier relationship. The two mediating roles of relative attention from buyers and relationship learning with buyers were confirmed. The empirical findings indicated that relative attention from buyers partially mediates the relationship between competence-based marketing capabilities and exploitative collaboration development, while relationship learning completely mediates the relationship between competence-based marketing capabilities and two-pronged collaboration development. Originality/value This study provides a thorough examination of competence-based marketing capabilities, which have attracted substantial attention from business scholars but empirical research investigating and discussing how suppliers develop new collaborations with buyers is lacking.

Philanthropy, political connection and debt finance

2016 ◽  
Vol 7 (4) ◽  
pp. 451-473
Author(s):  
Weian Li ◽  
Pengcheng Wang
Keyword(s):  
Social Exchange ◽  
Social Exchange Theory ◽  
Strategic Behavior ◽  
Resource Dependence ◽  
Resource Dependence Theory ◽  
Private Enterprises ◽  
Political Connection ◽  
Content Type ◽  
Debt Finance ◽  
The Relationship

Purpose Philanthropy is taken as a strategic behavior by private enterprises to obtain financial resources from governments. This paper aims to examine the relationship between private enterprise philanthropy and the debt finance, further investigating the way by which governments exchange resources with private enterprises. Design/methodology/approach The paper opted for an empirical study using a sample of 1,489 Chinese private-listed companies from 2007 to 2010. The study analyzed the relationship between philanthropy and debt finance based on the resource dependence theory and social exchange theory and tested the moderating effect of political connection. Findings Philanthropy can help private enterprises to get the debt finance, and this effect occurs mainly among the political connected private enterprises; the higher degree of credit allocation marketization is, the less philanthropy can affect the debt finance and the less influence political connection can exert on that relationship. Philanthropy contributes to debt financing mainly because it can help obtain more long-term loan, and this effect is more obvious for politically connected private enterprises in regulated industries. Originality/value This paper verifies the action logic of private enterprises philanthropy from the perspective of exchange behavior, which is helpful to understand the motive and influence of private enterprises philanthropy.

Impact of open innovation on organizational performance in different conflict management styles: based on resource dependence theory

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ting Wang ◽  
Jianlin Wu ◽  
Jibao Gu ◽  
Lingyu Hu
Keyword(s):  
Conflict Management ◽  
Organizational Performance ◽  
Resource Dependence ◽  
Resource Dependence Theory ◽  
Management Styles ◽  
Conflict Management Styles ◽  
Content Type ◽  
Dependence Theory ◽  
The Impact ◽  
The Relationship

Purpose Firms often encounter complicated external relationships and conflicts in inbound and outbound open innovation (OI). Conflict management significantly affects innovation results. Guided by resource dependence theory (RDT), this study aims to examine the moderating effects of conflict management styles in the relationship between OI and organizational performance (OP). Design/methodology/approach This study focuses on manufacturing and service firms in China, with the respondents composed of senior managers. Using hierarchical regression analysis, data from 270 firm samples are used to empirically test the hypotheses. Findings Inbound and outbound OI openness positively affects OP. Cooperative conflict management positively moderates the relationship between inbound OI openness and OP, whereas it negatively moderates the impact of outbound OI openness on OP. By contrast, competitive conflict management positively moderates the relationship between outbound OI openness on OP. Research limitations/implications Guided by RDT, this study explores the relationship between OI and OP and the moderating role of conflict management styles. However, it does not measure the level of resource dependence, which is among the future research directions for further validating the results of this study. Originality/value This study is among the first to investigate the impact of OI on OP in different conflict management styles. Findings suggest that choosing a suitable conflict management style may strengthen the positive effects of OI on OP.

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