The novelty-centered business model: a transition mechanism between exploration and exploitation in SMEs

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kerim Karmeni ◽  
Lorraine Uhlaner ◽  
Lorenzo Lucianetti
Keyword(s):  
Human Capital ◽  
Business Model ◽  
Exploration And Exploitation ◽  
Opportunity Identification ◽  
Entrepreneurial Opportunity ◽  
Cross Sectional ◽  
Unique Challenge ◽  
Content Type ◽  
Transition Mechanism ◽  
Development Framework

PurposeAs the transition between exploration and exploitation is a unique challenge for SMEs, what mechanism(s) might facilitate this transition? Building on the entrepreneurship literature's entrepreneurial opportunity identification and development framework, this study hypothesizes that the novelty-centered business model (NCBM) may serve as such a mechanism.Design/methodology/approachBased on cross-sectional survey data collected from 169 Italian SMEs in various sectors, this study tests the mediation, moderation and moderated mediation relationships using the statistical PROCESS procedure.FindingsSupporting the hypotheses that exploration and exploitation are positively associated within SMEs, that NCBM mediates this relationship and that the indirect relationship between exploration and exploitation by way of NCBM is stronger for SMEs with employees of medium to high creative human capital, the results suggest that SMEs can more effectively exploit new ideas identified in the exploration phase by developing an NCBM and accessing their creative human capital.Research limitations/implicationsAlthough the robustness checks confirm the direction of the proposed hypotheses, given the cross-sectional nature of the dataset used, a longitudinal study would further validate the proposed framework.Practical implicationsSMEs can successfully achieve the transition between exploration and exploitation by reinventing their business model to compensate for their limited resources in terms of financial or relational capital. They can further enhance their ability to reinvent their business model and, in turn, to exploit innovations by hiring and retaining employees with greater creative human capital.Originality/valueThis study draws on the entrepreneurial opportunity, ambidexterity (exploration-exploitation) and business model literature to enhance our understanding of the role of the NCBM design concept (business model innovation) as a mechanism to achieve temporal ambidexterity in SMEs.

The individual side of ambidexterity

2019 ◽  
Vol 41 (3) ◽  
pp. 592-613 ◽  
Author(s):  
Andrés Salas Vallina ◽  
Maria D. Moreno-Luzon ◽  
Anna Ferrer-Franco
Keyword(s):  
Structural Equation ◽  
Public Hospitals ◽  
Equation Modeling ◽  
Exploration And Exploitation ◽  
Cross Sectional ◽  
Learning Capability ◽  
Content Type ◽  
Individual Level ◽  
The Individual ◽  
The Relationship

PurposeThe purpose of this paper is twofold: first, to examine whether inspirational leadership of heads of specialized medical units is related to individual ambidexterity of their dependent physicians; and second, to study the possible mediating role of organizational learning capability (OLC) in the relationship between inspirational leadership and individual ambidexterity.Design/methodology/approachStructural equation modeling was used on a sample of 194 medical specialists from Spanish public hospitals.FindingsResults show that inspirational leadership is positively related to individual ambidexterity among healthcare physicians. In addition, the results of the study revealed that the relationship between inspirational leadership and individual ambidexterity is mediated by conditions that facilitate learning, namely, OLC.Research limitations/implicationsThis study uses cross-sectional data, which do not guarantee causality relationships among the examined variables.Practical implicationsThe results of this paper suggest first that heads of healthcare units should inspire followers to achieve both exploration and exploitation. Second, it is also necessary to consider that inspirational leaders promote those conditions that facilitate learning, which should be particularly taken into account to enhance both physician’s exploration and exploitation.Originality/valueIn stressing an evident gap in the relationship between leadership and ambidexterity at the individual level, this paper attempts to advance in the leadership literature by revealing how the action or power of moving the intellect or emotions, and enhancing enthusiasm and confidence, empowers physicians to both explore and exploit knowledge. The results also indicate that the inspiration transmitted by the heads of medical services, facilitate physician’s perceived learning conditions which, in turn, fosters their individual ambidexterity.

Employee self-concepts, voluntary learning behavior, and perceived employability

2015 ◽  
Vol 30 (3) ◽  
pp. 264-279 ◽  
Author(s):  
Sungjun Kim ◽  
Hacksoo Kim ◽  
Jinkyu Lee
Keyword(s):  
Human Capital ◽  
Human Capital Theory ◽  
Self Concept ◽  
Learning Behavior ◽  
Cross Sectional ◽  
Capital Theory ◽  
Content Type ◽  
Perceived Employability ◽  
Interactive Relationship ◽  
Concept Theory

Purpose – The purpose of this paper is to investigate the antecedents of employees’ perceived employability based on both self-concept and human capital theory. The study tested the relationship between employees’ self-concepts and perceived employability by using organization-based self-esteem (OBSE) and role-breadth self-efficacy. This study also examined the interactive relationship between self-concepts and voluntary leaning behavior, which can be viewed as a means of enhancing human capital. Design/methodology/approach – Data were collected from 301 employees of an organization in Korea. Findings – The results demonstrated that OBSE and its interaction with voluntary learning behavior were positively correlated with perceived employability. Research limitations/implications – The data were cross-sectional. Causal inferences should be made with caution. Originality/value – Unlike previous literature that has relied primarily on human capital theory, this study draws on self-concept theory to show that employee self-concept can be an antecedent of perceived employability. Furthermore, this study argues that employees’ perceived employability may be more fully understood through the lenses of both self-concept and human capital theories.

Revisiting the potential of human capital development to predict commitment: an empirical approach

2019 ◽  
Vol 51 (5) ◽  
pp. 289-298 ◽  
Author(s):  
Benon Muhumuza ◽  
Sudi Nangoli
Keyword(s):  
Human Capital ◽  
Human Resources ◽  
Empirical Support ◽  
Cross Sectional Study ◽  
Development Theory ◽  
Human Capital Development ◽  
Cross Sectional ◽  
Content Type ◽  
Study Approach ◽  
Capital Development

PurposeThe purpose of this paper is to revisit the potential of human capital development to predict commitment from an empirical perspective. This followed the fact that while organisations continue to invest a lot of resources into development of their human capital, a growing tendency of the trained staff to quickly abandon the organisation and move on to search for greener pastures has also been registered.Design/methodology/approachThis study takes a positivistic approach. It is an explanatory, cross-sectional study that is based on a case study approach.FindingsThe findings revealed that developing human resources still leads to enhanced commitment among staff. The findings provide empirical support for the tenets of the human capital development theory.Research limitations/implicationsInvestment in development of human resources is still a worthy while cause for organisations as it positively and significantly contributes to commitment.Practical implicationsWhile organisations ought to keep watch of the costs that come with human capital development endeavours the practice of developing human resources should be continued as it contributes to the organisational performance of staff.Originality/valueThe paper deepens the understanding on how human capital development is currently enhancing the commitment of organisational staff in a typical developing economy and sector. Such knowledge provides a clear basis for allocating resources on people development endeavours.

Board role performance in service organisations: the importance of human capital in the context of a developing country

2014 ◽  
Vol 10 (4) ◽  
pp. 646-673 ◽  
Author(s):  
Stephen K. Nkundabanyanga ◽  
Waswa Balunywa ◽  
Venancio Tauringana ◽  
Joseph M. Ntayi
Keyword(s):  
Human Capital ◽  
Developing Country ◽  
Service Sector ◽  
Employee Relations ◽  
Service Firms ◽  
Role Performance ◽  
Cross Sectional ◽  
Content Type ◽  
Employee Safety ◽  
Capital Development

Purpose – The purpose of this paper is to draw from multiple theories of upper echelons, stakeholder, agency, resource-based view and stewardship to establish the extent to which human capital (other than that of the board itself) in service organisations affect board role performance in those service sector firms. Design/methodology/approach – This study is cross-sectional and correlational. Analyses are conducted using SPSS and Analysis of Moment Structures software on a sample of 128 service firms in Uganda. Findings – Findings reveal that dimensions of employee safety, entrepreneurial skills, entrepreneurial development, employee welfare and employee relations fit the model of human capital and predict up to 69.1 per cent of the variance in board role performance. The results of this study reveal that board role performance is affected by prior decisions, for example, to invest in corporate social responsibility (CSR) activities, targeting employees that augment firm characteristics like existence of appropriate human capital. Essentially, an improvement in the quality of human capital explains positive variances in board role performance. Research limitations/implications – Cross-sectional data do not allow for testing of the process aspect of the models; however, they provide evidence that the models can stand empirical tests. Additional research should examine the process aspects of human capital and board role performance. Practical implications – Most companies in developing nations have relied on normative guidelines in prescribing what boards need to enhance performance, probably explaining why some boards have not been successful in their role performance. This research confirms that appropriate human capital, which can be leveraged through CSR ideals of employee safety, recognition, welfare and training in entrepreneurship, consistent with the stakeholder theory, can facilitate the board in the performance of its roles. In the developing country context, organisations’ boards could use these findings as a guideline, that is, what to focus on in the context of human capital development in organisations because doing so improves their own role performance. Originality/value – This study is one of the few that partly account for endogeneity in the study of boards, a methodological concern previously cited in literature (Bascle, 2008; Hamilton and Nickerson, 2003). Empirical associations between board role performance and organisational performance would not be useful unless we are able to grasp the causal mechanisms that lie behind those empirical associations (Hambrick, 2007). Thus, this study contributes to literature that tries to account for variances in board role performance and supports a multi-theoretical approach as a relevant framework in the study of human capital and board role performance.

Predicting entrepreneurial opportunity recognition in higher education: a case from Iran

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hossein Mehdizadeh ◽  
Hesamedin Gholami ◽  
Nematollah Shiri ◽  
Mojgan Khoshmaram
Keyword(s):  
Higher Education ◽  
Social Capital ◽  
Human Capital ◽  
Opportunity Recognition ◽  
Equation Modeling ◽  
Capital Social ◽  
Entrepreneurial Opportunity ◽  
Statistical Population ◽  
Content Type ◽  
Environmental Support

PurposeAlthough extensive governmental efforts have taken place to promote entrepreneurship in Iran, based on global entrepreneurship monitor report, the rate of perceived opportunities among young people, especially those with university education, has dropped. Since the perceived entrepreneurial opportunities are the first and most important step in the entrepreneurship process, this study identified the factors affecting the entrepreneurial opportunity recognition in Iranian higher education.Design/methodology/approachThe statistical population included 127 senior undergraduate students in all majors of agriculture at Ilam University. The sample size was determined by using the Krejcie and Morgan’s (1970) sampling table to be 100 senior undergraduate agriculture students at Ilam University, Ilam province, Iran, selected through a stratified random sampling technique.FindingsThe results showed that the perceived entrepreneurial opportunity among students was moderately low. According to structural equation modeling, the alertness, human capital, social capital and environmental support variables had a positive and significant effect on the entrepreneurial opportunity recognition.Research limitations/implicationsRegarding the research implications, the present study, with providing and testing a model for developing the entrepreneurial opportunity recognition among students in a developing country (Iran) with diverse cultures and values, has improved the literature of entrepreneurship in higher education.Practical implicationsBased on results instructors in higher agricultural education can use active teaching and learning methods, such as creating ideas, experiential and service learning, teamwork and practical work, critical thinking and problem-solving in education. Also, financial, technical and consultative support of instructors and managers in agricultural colleges to implement, launch and commercialize agricultural students' entrepreneurial ideas and projects is needed.Originality/valueThe findings indicated the importance of alertness, human capital, social capital and environmental support on the entrepreneurial opportunity recognition among students. Findings showed that ecological approach could be used to develop students' entrepreneurial opportunity recognition.

Integrative capability, business model innovation and performance

2019 ◽  
Vol 22 (3) ◽  
pp. 541-561 ◽  
Author(s):  
Changwei Pang ◽  
Qiong Wang ◽  
Yuan Li ◽  
Guang Duan
Keyword(s):  
Firm Performance ◽  
Business Model ◽  
Business Strategy ◽  
Business Model Innovation ◽  
Mediating Effect ◽  
Business Strategies ◽  
Cross Sectional ◽  
Content Type ◽  
Using Data ◽  
The Relationship

Purpose The purpose of this paper is to examine how business model innovation (BMI) mediates the relationship between integrative capability, business strategy and firm performance. Design/methodology/approach A literature review provides the model and hypotheses. Using a sample of 165 Chinese firms, the authors conduct the examination using a theoretical model and hypotheses following standard analysis methods. Findings The results show that BMI positively mediates the relationship between integrative capability and firm performance. Moreover, a differentiation strategy positively moderates the link between BMI and firm performance, while a cost leadership strategy presents a significantly negative moderating effect. Research limitations/implications First, the authors test the hypotheses using data from China; thus data from other emerging economies should be tested. Second, the authors use cross-sectional data in this study making it impossible to verify the dynamic developed in the process of BMI; a longitudinal study could provide a more comprehensive understanding. Third, the authors consider one intermediate mechanism to test the relationship of integrative capability and firm performance; additional factors may link integrative capability and firm performance. Practical implications The mediating effect of BMI suggests managers should pay more attention to BMI to improve firm performance, and they should understand that BMI’s role varies across different business strategies. Originality/value The paper is original in its investigation of the effect of integrative capability and BMI on firm performance using data from China and demonstrates the mediating effect of BMI on the relationship between integrative capability and firm performance.

Human capital, service innovation advantage, and business performance

2016 ◽  
Vol 36 (9) ◽  
pp. 974-994 ◽  
Author(s):  
Daniel I. Prajogo ◽  
Adegoke Oke
Keyword(s):  
Human Capital ◽  
Business Performance ◽  
Service Sector ◽  
Service Innovation ◽  
Mail Survey ◽  
Business Environment ◽  
Service Firms ◽  
Firm Level ◽  
Cross Sectional ◽  
Content Type

Purpose The purpose of this paper is to examine the effect of human capital (HC) on service innovation advantage (SIA) and business performance (BP) in service sector firms, and how external environmental factors influence these relationships. Design/methodology/approach This study utilized a cross-sectional mail survey of a random sample of Australian service firms with the unit of analysis being at the firm level. In total, 228 usable responses were received. Findings The overall findings of this study show that HC is positively related to the creation of value or SIA which in turn results in rent generation for firms. The results further show that the effect of SIA on BP is influenced by environmental dynamism and competitiveness with dynamic environments enhancing the effect while competitive environments weakening it. Research limitations/implications The findings demonstrate the complementarity between the resource based theory and contingency theory as they clearly shows that the value of innovation as a firm’s capability is enhanced or weakened within a business environment that is more dynamic or competitive. Practical implications The findings demonstrate the importance of HC, and, thus, encourage managers to seek ways to harness and leverage HC for improving innovation and BP. In addition, the study also helps managers to understand the contingency effect of business environment on the effectiveness of innovation, hence, helping them in deliberating firms’ strategy in different business environments. Originality/value To the best of the authors’ knowledge, this is the first study which examines the effectiveness of HC as organizational resource for building SIA as a source of organizational competitive advantage.

scholarly journals Unlocking inhibitors to women's expatriate careers: can job-related training provide a key?

2020 ◽  
Vol 8 (1) ◽  
pp. 85-105
Author(s):  
Susan Shortland ◽  
Christine Porter
Keyword(s):  
Human Capital ◽  
Longitudinal Research ◽  
Gender Diversity ◽  
Skills Training ◽  
Research Approach ◽  
Structured Interviews ◽  
Cross Sectional ◽  
Content Type ◽  
Knowledge And Skills ◽  
Training Interventions

PurposeThe purpose of this study is to examine what job-related training interventions female expatriates seek and can access in order to build necessary knowledge and skills to progress into further career-enhancing expatriate positions.Design/methodology/approachThis study uses a cross-sectional qualitative research approach, drawing upon semi-structured interviews in respect of organisational training practice with 26 current female expatriates and nine human resource, international assignments and training managers in two oil and gas exploration firms.FindingsBudgets, time and travel restrictions and competitive business pressures constrain on-the-job training provision for expatriates. Assignees require specific knowledge and skills ahead of appointment to subsequent expatriate positions. HR personnel believe training provides appropriate knowledge and capability development, supporting women expatriates' career ambitions. Women assignees view training available within their current roles as insufficient or irrelevant to building human capital for future expatriate posts.Research limitations/implicationsLongitudinal research across a wider spectrum of industries is needed to help understand the effects of training interventions on women's access to future career-enhancing expatriation and senior management/leadership positions.Practical implicationsOrganisations should ensure relevant technical skills training, clear responsibility for training provision, transparent and fair training allocation, positive communication regarding human capital outcomes and an inclusive culture that promotes expatriate gender diversity.Originality/valueSet within the framework of human capital theory, this study identifies the challenges that female expatriates experience when seeking relevant job-related training to further their expatriate careers. It identifies clear mismatches between the views of HR and female assignees in relation to the value of job-related training offered and women's access to it.

Institutional framing and entrepreneurship capital in Uganda

2014 ◽  
Vol 10 (3) ◽  
pp. 177-197 ◽  
Author(s):  
Joseph Mpeera Ntayi ◽  
Henry Mutebi ◽  
Kenneth Byangwa ◽  
Susan Georgina Kamanyi
Keyword(s):  
Human Capital ◽  
Large Scale ◽  
Small And Medium Enterprises ◽  
High Growth ◽  
Moral Values ◽  
Cross Sectional ◽  
Content Type ◽  
Managerial Implications ◽  
Medium Enterprises ◽  
Entrepreneurship Capital

Purpose – The purpose of this paper is to provide policy and managerial implications required in solving the daunting problem of the existing low-entrepreneurial capital in Uganda. Design/methodology/approach – A large-scale comprehensive survey using a sample of 11,105 small and medium enterprises (SMEs) from 40 high-growth towns was selected and undertaken from five regions of Uganda. The response rate was 40.5 per cent, translating into 4,498 usable questionnaires. Findings – Results reveal that institutional framing, entrepreneurship human capital and entrepreneurial moral values predict entrepreneurship capital in Uganda. These results are presented and discussed in detail in this paper. Research limitations/implications – The study applied a cross-sectional approach to study behaviour, yet studying behaviour requires time. Therefore, there is need for scholars to undertake a follow up study to test the hypotheses using longitudinal data. Practical implications – The paper provides implications for the review and development of supporting institutional frames for entrepreneurship, promoting generalized forms of human capital and entrepreneurial ethics moral values. Originality/value – The motivation for the study is derived from the observation that the legal and regulatory framework in Uganda is biased against SMEs. This is manifested in the high-regulatory burden of registering and running enterprises in Uganda. For example, the cost of registering a business in Uganda is high. Legal proceedings in Uganda are inefficient, complex and costly only favouring firms with resources and connections. This may restrict enterprise development and increase the costs of running businesses, distort human capital and entrepreneurial moral values thereby affecting entrepreneurship capital.

scholarly journals Effect of Rurality and Human Capital Resources in the Entrepreneurial Opportunity Identification Process / Vpliv ruralnega okolja in človeškega kapitala v procesu zaznavanja podjetniških priložnosti

2015 ◽  
Vol 61 (2) ◽  
pp. 35-44
Author(s):  
Irena Kedmenec ◽  
Urban Šebjan ◽  
Polona Tominc
Keyword(s):  
Human Capital ◽  
Rural Areas ◽  
Real Life ◽  
Residential Areas ◽  
Opportunity Identification ◽  
Entrepreneurial Opportunity ◽  
Identification Process ◽  
Entrepreneurial Opportunities ◽  
Country Study ◽  
Positive Effect

Abstract In this paper, that is a country study of Slovenia, we tried to determine why individuals in rural residential areas are less likely to recognize entrepreneurial opportunities. Our results show that the increase in resources in human capital, consisting of education, skills, knowledge, and experiences in entrepreneurship, has a significant and positive effect on opportunity identification. For policy creators, our results suggest that policies focused on entrepreneurial education- especially education that would enable the acquisition of real-life entrepreneurial experiences and skills-are useful, especially in rural areas.

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