Unpacking the efficacy of organizational routines in the financial services industry

2020 ◽  
Vol 34 (5) ◽  
pp. 735-747
Author(s):  
Russell K. Lemken ◽  
William J. Rowe
Keyword(s):  
Firm Performance ◽  
Absorptive Capacity ◽  
Financial Services ◽  
Response Rate ◽  
Future Research ◽  
Organizational Routines ◽  
Firm Level ◽  
Content Type ◽  
Positive Effects ◽  
Market Governance

Purpose This paper aims to examine how the efficacy of organizational routines varies and the mechanism through which organizational routines improve firm performance. Design/methodology/approach A theoretical model is proposed and tested using data from 53 interviews with financial services experts and 291 survey responses from financial advisors. Findings Operational and adaptive routines work through absorptive capacity to positively contribute to firm performance. The positive effects of adaptive routines are magnified under market governance. Research limitations/implications The examination of organizational routines is focused on routines at the firm level. Therefore, higher corporate-level routines were not measured. Response rate for the survey is a possible concern, so future research will benefit from increasing the response rate from the focal population. Practical implications This study benefits firms facing the dual role of customization and discipline in working with clients toward service delivery. The findings suggest that firms should develop both operational and adaptive routines, particularly when operating under market governance. Originality/value This study identified two categories of routines (operational and adaptive) and the circumstances in which the causal link between routines and performance varies. This study examined the potential moderating influence of a governance mode (market vs hierarchy). Absorptive capacity was identified as a mediator between the use of routines and firm performance.

Marketers’ human capital resources and job performance

2018 ◽  
Vol 36 (1) ◽  
pp. 124-137 ◽  
Author(s):  
Nguyen Dinh Tho ◽  
Nguyen Dong Phong ◽  
Tran Ha Minh Quan ◽  
Nguyen Thi Mai Trang
Keyword(s):  
Human Capital ◽  
Job Performance ◽  
Structural Equation ◽  
Sufficient Conditions ◽  
Equation Modeling ◽  
Future Research ◽  
Firm Level ◽  
Data Set ◽  
Content Type ◽  
Positive Effects

Purpose Positing that human capital resources of marketers comprise both psychological capital (PsyCap) and marketing capital (MarCap), and that PsyCap in combination with MarCap will have a synergistic effect on marketers’ job performance, the purpose of this paper is to investigate the configurational roles of PsyCap and MarCap in marketers’ job performance. Design/methodology/approach Using a survey data set collected from 472 marketers in Ho Chi Minh City, Vietnam, the study tested the net effects of PsyCap and MarCap on job performance using structural equation modeling (SEM). Then, the study investigated the configurational roles of PsyCap and MarCap in job performance employing the fuzzy-set qualitative comparative analysis (fsQCA). Findings SEM results show that two components of PsyCap (efficacy and optimism) and one component of MarCap (organizational MarCap) have positive effects on job performance. fsQCA findings reveal that, except hope, combinations of PsyCap and MarCap components form several sufficient conditions for job performance. Research limitations/implications The focus of this study is on marketers, that is, at the individual level. Future research should examine both PsyCap and MarCap at a higher level, such as the team, unit, or firm level. Practical implications The study’s findings suggest that firms should pay attention not only to the net effect but also to the configuration of PsyCap and MarCap when designing and implementing their human resource strategies and policies. Originality/value This study contributes to the literature on human capital resources by confirming the configurational roles of PsyCap and MarCap in marketers’ job performance.

Firm capabilities and performance: a necessary condition analysis

2018 ◽  
Vol 37 (4) ◽  
pp. 322-332 ◽  
Author(s):  
Nguyen Dinh Tho
Keyword(s):  
Firm Performance ◽  
Necessary Condition ◽  
Future Research ◽  
Marketing Capability ◽  
Firm Capabilities ◽  
Data Set ◽  
Content Type ◽  
Positive Effects ◽  
And Performance ◽  
Operations Capabilities

Purpose The purpose of this paper is to employ a necessary condition analysis (NCA) approach to investigate the level of necessity of two conditions, marketing capability, including responsiveness to customers, responsiveness to competitors, responsiveness to the macro environment, and business relationship quality, and innovativeness capability for firm performance. Design/methodology/approach Using a survey data set collected from a sample of 311 Vietnamese firms, this study explored the levels of necessity of the components of marketing capability and innovativeness capability by NCA. The study also tested the net effects of these components on firm performance by multiple regression analysis (MRA). Findings The MRA results reveal that except for responsiveness to the macro environment, other components of marketing capability and innovativeness capability have positive effects on firm performance. Further, firm size affects performance but industry types do not. The NCA results indicate that these conditions exhibit different levels of necessity for the occurrence of firm performance. Research limitations/implications A major limitation of this study is the exploration of necessary levels of only two key firm capabilities, i.e., marketing and innovativeness. Several other capabilities, such as, research and development, operations capabilities, and other market-based assets should be investigated in future research. Practical implications The findings suggest that firms should pay attention not only to the net effects (β weights) but also to the levels of necessity of firm capabilities for their target outcome. Originality/value This study is among first studies investigating the levels of necessity of marketing capability and innovativeness capability for firm performance.

The power of momentum on firm performance: a myth or a reality?

2015 ◽  
Vol 28 (3) ◽  
pp. 452-468 ◽  
Author(s):  
Chengli Tien ◽  
Chien-Nan Chen
Keyword(s):  
Firm Performance ◽  
Practical Knowledge ◽  
Capital Intensity ◽  
Time Span ◽  
Future Research ◽  
Firm Age ◽  
Momentum Effect ◽  
Firm Level ◽  
Content Type ◽  
Final Sample

Purpose – The purpose of this paper is to extend research related to a firm’s behavioural momentum and its financial performance and to further examine any moderating effect from various perspectives - how firm-level (firm age and size), industry-level, and country-level factors can interact with the power of momentum to affect a firm’s performance. Design/methodology/approach – Data were collected from the Compustat and Yahoo Finance databases for firms in the USA and the Taiwan Economic Journal (TEJ) for firms in Taiwan. The final sample of US firms is from a panel with 239 unique companies in electronics-related industries across a 22-year time span (1991-2012). The final sample of Taiwanese firms is from a panel with 184 unique companies also in electronics-related industries across a 22-year time span (1991-2012). Findings – The results show that momentum does not significantly improve firm performance, and thus the power of momentum is a myth. However, the relationship between momentum and firm performance can be moderated by firm age, size, capital intensity, and country of origin, respectively, under some circumstances. Originality/value – The originality and value are that this is a multiple-perspective study of firm behavioural momentum and firm performance to comprehensively discover each of their respective relationships. This study has further extended the debate over path-dependent perspectives with contingent perspectives across the borders to fill knowledge and theoretical gaps, while the evidence-based findings provide top management with practical knowledge for strategic planning and execution with another avenue for future research on the momentum effect.

Firm performance in the financial industry: the role of foreign entrants and their origin

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dao Thi Hong Nguyen
Keyword(s):  
Firm Performance ◽  
Labor Productivity ◽  
Financial Services ◽  
Generalized Method Of Moments ◽  
Local Market ◽  
Average Wage ◽  
Financial Industry ◽  
Firm Level ◽  
Content Type ◽  
Key Dimensions

Purpose This study aims to provide firm-level evidence on the relationship between the presence of financial services multinationals and indigenous counterparts’ performance, using a comprehensive sample of firms in the emerging financial industry in Vietnam. Design/methodology/approach This study uses the generalized method of moments with instrumental variables (IV/GMM) to deal with potential endogeneity problem. Of this technique, a pragmatic approach to constructing instruments is adopted, capitalizing on the geographical and industry segmentation of the local market. The empirical analyses also address statistical issues of the overall model significance, heteroskedasticity and multicollinearity. Findings The regression results reveal that foreign entrants have a positive and statistically significant association with indigenous firms’ labor productivity and the average wage, with a more pronounced impact on the latter. The increased entry of financial multinationals appears to be uncorrelated with indigenous firms’ profitability. The extended estimations also suggest that investor origin matters in determining spillover magnitude. The average estimate of Asian affiliates in the examined relationship is approximately half that of European affiliates, whereas foreign entrants originating from America show an insignificant role. Originality/value This study sheds light on the broader impacts of foreign financial affiliates by simultaneously exploring their impacts on three key dimensions of indigenous firm performance, namely, labor productivity, average wage and profitability. This paper also enriches the existing literature by disentangling the effects of foreign entrants from different regions of origin, which was largely neglected in the context of financial services multinationals.

Market orientation, innovation commercialization capability and firm performance relationships: the moderating role of supply chain influence

2017 ◽  
Vol 32 (7) ◽  
pp. 913-924 ◽  
Author(s):  
Jeen-Su Lim ◽  
William K. Darley ◽  
David Marion
Keyword(s):  
Supply Chain ◽  
Firm Performance ◽  
Market Orientation ◽  
Innovation Management ◽  
Strategy Formulation ◽  
Content Type ◽  
Positive Effects ◽  
The Impact ◽  
Moderating Role

Purpose The study aims to explore supply chain influence (SCI) on the linkages among market orientation, innovation capabilities and firm performance (FP), using the resource-based view as a theoretical backdrop. Design Survey data from 182 top managers who are involved in strategy formulation and innovative direction of their companies was collected and analyzed using moderated multiple regression analysis. Findings Results revealed a moderating role of the SCI in that the proactive market orientation (PMO) and FP relationship is stronger when SCI is high, and innovation commercialization capability (ICC) and FP relationship is stronger when SCI is low. Practical implications Firms pursuing high PMO strategy must collaborate with supply chain function to achieve the full effect of PMO. Additionally, as supply chain is critical to meeting customers’ needs, these firms should allow supply chain to exert greater influence to enjoy the positive effects of PMO in addition to ensuring full integration into marketing strategy implementation. Also, firms with high ICC need to limit SCI to maximize the benefit of ICC on FP, just as innovation management needs to be cognizant of other functional areas. Originality/value The study investigates the potential moderating role of SCI on the relationships among market orientation, ICC and FP. The study fills a gap in the understanding of the nature and role of supply chain in the marketing–supply chain interaction, and the impact on FP.

We dreamed a dream that entrepreneurial ecosystems can promote sustainability

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mario Raposo ◽  
Cristina I. Fernandes ◽  
Pedro M. Veiga
Keyword(s):  
Policy Formulation ◽  
Logistic Distribution ◽  
Future Research ◽  
Community Innovation Survey ◽  
Content Type ◽  
Positive Effects ◽  
Entrepreneurial Ecosystems ◽  
Future Research Agenda ◽  
Company Policy ◽  
The Relationship

PurposeResearch into the relationship between entrepreneurial ecosystems and sustainability has deepened in terms of both quantity and quality even while still remaining a fragmented and divergent field. Hence, the purpose of this study is to put forward empirical evidence to advance the literature on the relationship between entrepreneurial ecosystems and sustainability. To this end, the authors furthermore identify and highlight a future research agenda.Design/methodology/approachThe source of the empirical analysis in this article stems from the Community Innovation Survey, the leading statistical inquiry of innovation in companies carried out by Eurostat based upon the conceptual framework set out in the Oslo Manual. For modelling the variables, the authors applied binary regression based on logistic distribution.FindingsThe results of the research demonstrated how all of the variables considered for entrepreneurial ecosystems (co-operation with suppliers, co-operation with clients or customers, co-operation with universities; co-operation with government, public or private research institutes) return positive impacts on national sustainabilityResearch limitations/implicationsDespite the data spanning only the nine countries in the database, the results enable insights into the theory as the results serve to strengthen already existing considerations on the positive effects of entrepreneurial ecosystems for the sustainability of countries.Practical implicationsThe results of the research may generate important implications for company policy formulation. The identification of the relevance of the different actors in entrepreneurial ecosystems and their impact on sustainability may assist firms and policymakers to identify the leading actors and the resources necessary to sustaining their activities and thereby correspondingly establishing their priorities.Originality/valueThe research (1) both deepens the prevailing knowledge on this theme and fills a gap encountered in the existing literature; (2) in practical terms, for managers, entrepreneurs and politicians to better grasp how entrepreneurship constitutes a systemic phenomenon and these systems require approaching in terms of their impacts and greater contributions to obtaining sustainability.

Determinants of the firm performance of returnee entrepreneurs in Somalia: the effects of external environmental conditions

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohamed-Abdullahi Mohamed ◽  
Asmat-Nizam Abdul-Talib ◽  
AfifahAlwani Ramlee
Keyword(s):  
Firm Performance ◽  
Conceptual Framework ◽  
Empirical Studies ◽  
Theoretical Background ◽  
Future Research ◽  
African Countries ◽  
Content Type ◽  
Somali Diaspora ◽  
Post Conflict ◽  
Perceived Environmental Uncertainty

Purpose This study aims to examine the role of returning Somali diaspora entrepreneurs on firm performance and their perceived environmental obstacles. Design/methodology/approach The paper draws on a broad literature review and covers a theoretical background to develop a research framework. It presents several propositions to be empirically tested to determine the influence of returnee entrepreneurs’ success and the challenges they face in the process. Findings The paper offers an overview of how Somali diaspora returnee entrepreneurs can use their resources to succeed in their business and the possible environmental uncertainties that could hinder them. The study highlights some under-researched areas and provides future research directions. Research limitations/implications A research investigation is needed to test the proposed conceptual framework empirically. Further research is also recommended to use other predictors when investigating the perceived environmental uncertainty faced by returnee entrepreneurs. Practical implications In the diaspora entrepreneurship literature, returnee entrepreneurs in post-conflict African countries did not get enough attention. Hence, the study will contribute theoretically to the literature. Originality/value The paper provides a conceptual framework that will help understand returnee entrepreneurs in post-conflict states in Africa, paving the way for empirical studies on the topic.

Artificial intelligence in financial services: a qualitative research to discover robo-advisory services

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ankita Bhatia ◽  
Arti Chandani ◽  
Rizwana Atiq ◽  
Mita Mehta ◽  
Rajiv Divekar
Keyword(s):  
Artificial Intelligence ◽  
Stock Market ◽  
Financial Services ◽  
Future Research ◽  
Individual Investors ◽  
Content Type ◽  
Advisory Services ◽  
Wealth Management ◽  
Management Scenario ◽  
Indian Stock Market

Purpose The purpose of this study is to gauge the awareness and perception of Indian individual investors about a new fintech innovation known as robo-advisors in the wealth management scenario. Robo-advisors are comprehensive automated online advisory platforms that help investors in managing wealth by recommending portfolio allocations, which are based on certain algorithms. Design/methodology/approach This is a phenomenological qualitative study that used five focussed group discussions to gather the stipulated information. Purposive sampling was used and the sample comprised investors who actively invest in the Indian stock market. A semi-structured questionnaire and homogeneous discussions were used for this study. Discussion time for all the groups was 203 min. One of the authors moderated the discussions and translated the audio recordings verbatim. Subsequently, content analysis was carried out by using the NVIVO 12 software (QSR International) to derive different themes. Findings Factors such as cost-effectiveness, trust, data security, behavioural biases and sentiments of the investors were observed as crucial points which significantly impacted the perception of the investors. Furthermore, several suggestions on different ways to enhance the awareness levels of investors were brought up by the participants during the discussions. It was observed that some investors perceive robo-advisors as only an alternative for fund/wealth managers/brokers for quantitative analysis. Also, they strongly believe that human intervention is necessary to gauge the emotions of the investors. Hence, at present, robo-advisors for the Indian stock market, act only as a supplementary service rather than a substitute for financial advisors. Research limitations/implications Due to the explorative nature of the study and limited participants, the findings of the study cannot be generalised to the overall population. Future research is imperative to study the dynamic nature of artificial intelligence (AI) theories and investigate whether they are able to capture the sentiments of individual investors and human sentiments impacting the market. Practical implications This study gives an insight into the awareness, perception and opinion of the investors about robo-advisory services. From a managerial perspective, the findings suggest that additional attention needs to be devoted to the adoption and inculcation of AI and machine learning theories while building algorithms or logic to come up with effective models. Many investors expressed discontent with the current design of risk profiles of the investors. This helps to provide feedback for developers and designers of robo-advisors to include advanced and detailed programming to be able to do risk profiling in a more comprehensive and precise manner. Social implications In the future, robo-advisors will change the wealth management scenario. It is well-established that data is the new oil for all businesses in the present times. Technologies such as robo-advisor, need to evolve further in terms of predicting unstructured data, improvising qualitative analysis techniques to include the ability to gauge emotions of investors and markets in real-time. Additionally, the behavioural biases of both the programmers and the investors need to be taken care of simultaneously while designing these automated decision support systems. Originality/value This study fulfils an identified gap in the literature regarding the investors’ perception of new fintech innovation, that is, robo-advisors. It also clarifies the confusion about the awareness level of robo-advisors amongst Indian individual investors by examining their attitudes and by suggesting innovations for future research. To the best of the authors’ knowledge, this study is the first to investigate the awareness, perception and attitudes of individual investors towards robo-advisors.

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.

Trust, commitment, logistics outsourcing relationship quality, relationship satisfaction, strategy alignment and logistics performance – a case of selected manufacturing firms in Uganda

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Matthew Kalubanga ◽  
Sheila Namagembe
Keyword(s):  
Relationship Satisfaction ◽  
Relationship Quality ◽  
Developing Country ◽  
Manufacturing Firms ◽  
Equation Modeling ◽  
Future Research ◽  
Logistics Outsourcing ◽  
Content Type ◽  
Positive Effects ◽  
Strategy Alignment

PurposeThis study examines the relationships among trust, commitment, logistics outsourcing relationship quality (LORQ), relationship satisfaction, strategy alignment and logistics performance considering selected manufacturing firms in a developing country, Uganda.Design/methodology/approachDrawing on insights from the commitment-trust theory and strategy alignment literature, and using a cross-sectional survey design with a self-administered questionnaire, and applying the partial least squares structural equation modeling (PLS-SEM) approach to analyze quantifiable data obtained from managers of 103 manufacturing firms in Uganda outsourcing logistics operations, the study examined the logistics performance effects of trust, through commitment, LORQ and relationship satisfaction.FindingsThe study findings reveal that trust influences logistics performance, indirectly through its effects on commitment, LORQ and relationship satisfaction, sequentially, and that the positive effects of relationship satisfaction on logistics performance strengthen with improvements in LORQ. Strategy alignment exerted a strong positive influence on LORQ.Research limitations/implicationsThe study findings have important implications for theory development and literature. The study applies the commitment-trust view to both theoretically and empirically examine logistics outsourcing as a competitive strategy to enhance logistics performance, and thereby providing a theoretical base for future research. However, this research is confined to manufacturing firms in Uganda, and the results are not necessarily generalizable to other contexts.Practical implicationsThe study findings provide insights for logistics managers regarding the role of trust, commitment, LORQ, relationship satisfaction and strategy alignment in enabling successful logistics outsourcing relationships, and how drawing on these, managers can improve firm logistics performance.Originality/valueThis study contributes to logistics management literature by empirically examining the relationship of trust, commitment, LORQ, relationship satisfaction and strategy alignment with logistics performance, considering manufacturing firms in a developing country, where these aspects have not been largely explored before. It highlights the need to build trust, promote greater commitment of logistics user firms in logistics outsourcing relationships as well as aligning logistics outsourcing strategies to improve LORQ and enhance logistics performance. Additionally, the study provides for the first-time new evidence for the moderation effect of LORQ on the influence of relationship satisfaction on logistics performance. The study findings suggest advancing further scholarly discussions on logistics outsourcing as a critical strategy to enhance firm logistics performance within a developing country context. Due to limitations in logistics infrastructure, and existing low-level technologies, logistics in developing countries still revolves around conventional materials handling, packaging, inventory and transportation operations, and logistics outsourcing is new, thereby presenting an interesting research context for empirical investigations on logistics in general, and logistics outsourcing in particular.

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