Alliance portfolios and firm performance: the moderating role of firms’ strategic positioning

2017 ◽  
Vol 10 (2) ◽  
pp. 206-226 ◽  
Author(s):  
Aleksey Martynov
Keyword(s):  
Firm Performance ◽  
Fixed Effects ◽  
Small Firms ◽  
Strategic Positioning ◽  
Content Type ◽  
The Usa ◽  
Study Characteristics ◽  
Moderating Role ◽  
Alliance Portfolios

Purpose The purpose of this paper is to fill the theoretical void in the discussion of effects of alliance portfolios on firm performance by studying the moderating role of a firm’s strategic positioning. Design/methodology/approach A fixed effects, autoregressive panel model on a comprehensive, longitudinal sample of large and medium-sized publicly traded companies in the USA. Findings The effect of alliance portfolios on firm performance is conditional on the firm’s strategic positioning. Research limitations/implications The results may not be applicable to firms outside the USA or small firms. Practical implications Executives should craft their alliance portfolios while considering the strategic positioning of their firms. Originality/value This paper presents the first study of alliance portfolios that uses a comprehensive, multi-industry sample while considering firms’ strategic positioning. The paper is the first to jointly study characteristics of alliance portfolios and firm strategies.

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.

Alliance portfolios and firm performance: the moderating role of environmental dynamics

2017 ◽  
Vol 117 (8) ◽  
pp. 1550-1566 ◽  
Author(s):  
Xiaoyan Wang ◽  
Haijun Bao
Keyword(s):  
Social Network ◽  
Network Theory ◽  
High Performance ◽  
Social Network Theory ◽  
Three Dimensions ◽  
Content Type ◽  
Negative Effect ◽  
Moderating Role ◽  
Alliance Portfolios

Purpose The purpose of this paper is to focus on the operation strategy of high-performance alliance portfolios by analyzing the effect of alliance portfolios on the performance of focal firms, using post-structuralism of social network theory and contingency theory. In detail, this paper refines alliance portfolios into three dimensions, and studies the moderating role of context on the relation between alliance portfolios and firm performance. Design/methodology/approach The empirical study was carried out with second-hand data gathered from Internal Revenue Service. In total, this paper gathered data from 506 focal firms in Zhejiang Province from 2001 to 2010 as the sample to test the hypotheses. Findings Based on the empirical results, the authors find the positive effect of relational dimension (weak alliance portfolios) and partner dimension (the diversity of partners) on performance. The effect of the former will become weaker with the increasing environmental dynamic, while the effect of the latter will become stronger. However, the structural dimension (alliance portfolios size) and relational dimension (new partners) have the negative effect on performance. And the negative effect will become stronger under high environmental dynamic. Moreover, the negative effect of non-local partners on performance becomes stronger when the environmental dynamic is high. Research limitations/implications The paper reveals that with the industry transformation caused by “internet +,” companies have been required go beyond traditional dyadic alliance management perspective. That is to say, individual alliance relationship should be seen as a part of a much broader picture of alliance portfolio. As such, the framework may help companies to manage their alliance portfolios by matching high-performance alliance portfolios to the external environment to produce a synergistic effect (Lea et al., 2006; Tritos et al., 2013; Keith et al., 2014) taking the characteristics of the configuration of alliance portfolios into consideration. Originality/value The paper presents a model that explains the effect of three dimensions of alliance portfolios on the performance of focal firms in different contexts through empirical study. This paper also integrates post-structuralism of social network theory and contingency theory to enable the understanding on the configuration of alliance portfolios.

A jack-of-all-trades or a master of none: the performance effects of balancing exploration and exploitation within vs across alliance portfolio domains

2018 ◽  
Vol 24 (3) ◽  
pp. 569-587 ◽  
Author(s):  
Christopher R. Penney ◽  
James G. Combs ◽  
Nolan Gaffney ◽  
Jennifer C. Sexton
Keyword(s):  
Firm Performance ◽  
Value Chain ◽  
Fixed Effects ◽  
Empirical Work ◽  
Generalized Least Squares ◽  
Exploration And Exploitation ◽  
Specific Domain ◽  
Alliance Portfolio ◽  
Content Type ◽  
Alliance Portfolios

Purpose Theory predicts that balancing exploratory and exploitative learning (i.e., ambidexterity) across alliance portfolio domains (e.g. value chain function, governance modes) increases firm performance, whereas balance within domains decreases performance. Prior empirical work, however, only assessed balance/imbalance within and across two domains. The purpose of this study is to determine if theory generalizes beyond specific domain combinations. The authors investigated across multiple domains to determine whether alliance portfolios should be imbalanced toward exploration or exploitation within domains or balanced across domains. The authors also extended prior research by exploring whether the direction of imbalance matters. Current theory only advises managers to accept imbalance without helping with the choice between exploration and exploitation. Design/methodology/approach Hypotheses are tested using fixed-effects generalized least squares (GLS) regression analysis of a large 13-year panel sample of Fortune 500 firms from 1996 to 2008. Findings With respect to the balance between exploration and exploitation within each of the five domains investigated, imbalanced alliance portfolios had higher firm performance. No evidence was found that balance across domains relates to performance. Instead, for four of the five domains, imbalance toward exploration related positively to firm performance. Originality/value An alliance portfolio that allows for exploration in some domains and exploitation in other domains appears more difficult to implement than prior theory suggests. Firms benefit mostly from using the alliance portfolio for exploratory learning.

Do women perform better in family firms?

2017 ◽  
Vol 29 (3) ◽  
pp. 299-315 ◽  
Author(s):  
Antonio D’Amato
Keyword(s):  
Firm Performance ◽  
Family Firms ◽  
Gender Diversity ◽  
Family Firm ◽  
Campania Region ◽  
Content Type ◽  
Novel Approach ◽  
Panel Data Regression ◽  
Moderating Role

Purpose Empirical evidence on the relation between female involvement at the head of a company and firm performance remains inconclusive. This study aims to disentangle the existing evidence by exploring the moderating role of family firm status. Design/methodology/approach The study analyzes the moderating role of family firm status on the relation between gender diversity and firm performance among a sample of 88 Italian wine firms from Campania region during the 2007-2014 period. This work uses random effects panel data regression and tests the robustness of the results using alternative econometric techniques. Performance is measured in terms of profitability. Findings The findings reveal that women in top positions do not affect firm performance. However, it is found that this relation is significantly moderated by family firm status. Specifically, compared to high family-controlled firms, female involvement negatively impacts firm performance in low family-controlled firms. Research limitations/implications From a theoretical standpoint, the results enable a more nuanced interpretation of the relationship between female involvement and firm performance. From a managerial perspective, the results highlight conditions that may promote the role of women in business. Originality/value This paper provides insights into the relation between gender diversity and firm performance by exploring the moderating role of family firm status – a novel approach in the management and wine business literature.

How does intellectual capital efficiency affect firm performance? The moderating role of family management

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yolanda Ramírez ◽  
Julio Dieguez-Soto ◽  
Montserrat Manzaneque
Keyword(s):  
Firm Performance ◽  
Intellectual Capital ◽  
Family Management ◽  
Content Type ◽  
Intangible Resources ◽  
Structural Capital ◽  
Capital Efficiency ◽  
The Impact ◽  
Moderating Role

PurposeThe purpose of this paper is twofold: to know whether those firms that achieve greater efficiency from their intangible resources (intellectual capital) also obtain greater performance; and to analyze the moderating role of family management on that relationship in small to medium-sized enterprises (SMEs).Design/methodology/approachThis paper conducts an empirical study with different econometric models using a panel data sample of 6,132 paired firm-year observations from Spanish manufacturing SMEs in the period 2000–2013.FindingsThe findings suggest that intellectual capital efficiency is a key factor that allows the firm to achieve and maintain competitive advantages, obtaining greater performance. Additionally, this research also shows that the moderating role of family management can be a double-edged sword depending on the type of intangible resources.Practical implicationsThis paper may give managers an insight in how to better utilize and manage intangible resources available in their firms to improve competitive advantage and ultimately firm performance. Additionally, on the basis of the Socioemotional Wealth perspective (SEW), this article argues that family-managed firms that focus on SEW preservation can enhance the impact of structural capital efficiency on performance.Originality/valueThis paper extends the prior literature by studying the joint effects of intellectual capital efficiency, distinguishing between human capital and structural capital efficiency, and family management on performance in the context of SMEs.

scholarly journals The role of marketing in today's enterprises

2014 ◽  
Vol 25 (2) ◽  
pp. 171-194 ◽  
Author(s):  
Jochen Wirtz ◽  
Sven Tuzovic ◽  
Volker G. Kuppelwieser
Keyword(s):  
Firm Performance ◽  
Market Orientation ◽  
Design Methodology ◽  
Low Cost ◽  
Structural Models ◽  
The West ◽  
Marketing Department ◽  
Content Type ◽  
The Usa

Purpose – The purpose of this paper is to explore the role of marketing in today's enterprises and examines the antecedents of the marketing department's influence and its relationship with market orientation and firm performance. Design/methodology/approach – Data were collected from the West (i.e. the USA and Europe) and the East (i.e. Asia). Partial least squares (PLS) was used to estimate structural models. Findings – The findings support the idea that a strong and influential marketing department contributes positively to firm performance. This finding holds for Western and Asian, and for small/medium and large firms alike. Second, the marketing department's influence in a firm depends more on its responsibilities and resources, and less on internal contingency factors (i.e. a firm's competitive strategy or institutional attributes). Third, a marketing department's influence in the West affects firm performance both directly and indirectly (via market orientation). In contrast, this relationship is fully mediated among Eastern firms. Fourth, low-cost strategies enhance the influence of a firm's marketing department in the East, but not in the West. Research limitations/implications – The paper assumes explicitly that a marketing department's influence is an antecedent of its market orientation. While the paper finds support for this link, the paper did not test for dual causality between the constructs. Originality/value – Countering the frequent claim in anecdotal and journalistic work that the role of the marketing department diminishes, the findings show that across different geographic regions and firm sizes, strong marketing departments improve firm performance (especially in the marketing-savvy West), and that they should continue to play an important role in firms.

Diversification, family involvement and firm performance

2016 ◽  
Vol 35 (5) ◽  
pp. 663-680 ◽  
Author(s):  
Emanuela Delbufalo ◽  
Sara Poggesi ◽  
Simone Borra
Keyword(s):  
Firm Performance ◽  
Family Involvement ◽  
Fixed Effects ◽  
Product Diversification ◽  
Geographic Diversification ◽  
Content Type ◽  
The Status ◽  
The Impact ◽  
Italian Manufacturing Firms ◽  
Moderating Role

Purpose – The purpose of this paper is to investigate the effect of product and geographic diversification on the performance of Italian manufacturing firms and evaluate the moderating role of family involvement. Design/methodology/approach – The hypotheses have been tested by using a fixed-effects panel data regression model. Findings – Results show a linear relationship between product diversification and firm performance and an inverted U-shaped relationship between geographic diversification and firm performance. Moreover, when considering the status of the family firm, family ties have a negative moderating role on the performance of companies that are product and internationally diversified. Originality/value – By providing theoretical explanations and empirical evidence, the study extends the diversification-performance research by testing this relationship in an unexplored context (i.e. Italy), and by identifying a still not well explored contingency factor (i.e. family involvement). In doing so, diversification and family involvement literatures are brought together and the results show the importance of the type of owner regarding the impact of product and international diversification on firm performance.

scholarly journals The role of corporate governance on CSR disclosure and firm performance in a voluntary environment

2019 ◽  
Vol 20 (2) ◽  
pp. 294-306 ◽  
Author(s):  
Aruoriwo Marian Chijoke-Mgbame ◽  
Chijoke Oscar Mgbame ◽  
Simisola Akintoye ◽  
Paschal Ohalehi
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Developed Countries ◽  
Economic Benefits ◽  
Data Set ◽  
Content Type ◽  
Csr Disclosure ◽  
The Impact ◽  
Moderating Role

Purpose This study aims to investigate the impact of corporate social responsibility disclosure (CSRD) on firm performance and the moderating role of corporate governance on the CSRD–firm performance relationship of listed companies in Nigeria. Design/methodology/approach The paper uses a panel data set comprising 841 firm-year observations for the period covering 2007-2016. Fixed effect regression analysis was used to examine the relationship between CSRD and firm performance, and the moderating role of corporate governance in the CSRD–firm performance relationship. Findings The results of the study show that there are positive performance implications for firms that engage in CSRD. Although this study finds no effect of board size on the CSRD–firm performance relationship, it provides a strong evidence of a positive effect of board independence on the CSR–firm performance relationship. Practical implications The study contributes to the understanding of CSRD–firm performance relationship by providing evidence of the moderating role of corporate governance. It is, therefore, recommended that a stronger regulation be put in place for CSR engagement and the disclosure of same in Nigeria as well as robust measures for the enforcement of corporate governance mechanisms because there are economic benefits to be derived. Originality/value The findings contribute to the literature by providing up-to-date and original insights on the CSRD–firm performance relationship within a developing country context. It also uses an uncommon method of measuring CSRD, taking into account the institutional biases that may arise from other methods used in studies on developed countries.

Knowledge stock and absorptive capacity of small firms: the moderating role of formalization

2019 ◽  
Vol 12 (2) ◽  
pp. 189-207 ◽  
Author(s):  
Sanjay Chaudhary
Keyword(s):  
Absorptive Capacity ◽  
Small Firms ◽  
Linear Regression Analysis ◽  
Multiple Linear Regression Analysis ◽  
Business Owners ◽  
Knowledge Stock ◽  
Content Type ◽  
Depth Of Knowledge ◽  
Moderating Role

Purpose Despite the established significance of absorptive capacity, there is a worrying lack of research that empirically examines its antecedents. With a call for investigation guided by the knowledge-based theory, the purpose of this paper is to bridge any probable gap by exploring the effect that an organization’s knowledge stock and its knowledge integrating mechanisms have on the development of its absorptive capacity. Design/methodology/approach On the basis of a survey administered to a sample comprising owners of small Indian automotive firms, this paper empirically examines the direct effect of an organization’s knowledge stock (including knowledge breadth and depth) and the moderating role of its structure-related mechanisms (e.g., formalization) on its potential and realized absorptive capacities. The study uses survey data from 226 small business owners and multiple linear regression analysis to examine the significance of its hypotheses. Findings The results show that knowledge stock has a statistically notable influence on a small firm’s absorptive capacity. The enabling role of formalization in the relationship between knowledge stock and absorptive capacity is also evident. Practical implications Given the handicap of small firms vis-à-vis large firms to deploy internal R&D capabilities, business owners must ensure not to confuse absorptive capacity with the pre-existence of R&D capabilities. Originality/value The unbundling of knowledge stock into breadth and depth of knowledge enables business owners and researchers to understand how any particular knowledge stock can relate to an organization’s absorptive capacity.

scholarly journals Does CEO power matter for the performance of retrenchment strategy?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rayenda Khresna Brahmana ◽  
Hui Wei You ◽  
Maria Kontesa
Keyword(s):  
Firm Performance ◽  
Agency Theory ◽  
Ceo Power ◽  
Resource Based View ◽  
Content Type ◽  
Emerging Country ◽  
The Relationship ◽  
Circulation Theory ◽  
Moderating Role

PurposeThis research aims to examine the moderating role of CEO power on the relationship between retrenchment strategy and firm performance by framing the relationship under an agency theory, and power circulation theory.Design/methodology/approachThis study focuses on a sample of 319 non-financial public listed companies in Malaysia from the year 2011–2016 and estimates the model under two-step GMM panel regression to eliminate the endogeneity issue.FindingsThe results show that the retrenchment strategy increased firm performance. Meanwhile, greater CEO power changes that retrenchment effect into increased performance. This study also indicates the CEO power strengthens the relationship between firm performance and retrenchment. However, CEO power does not have any effect on the performance of low retrenchment, and the performance of big firm size.Research limitations/implicationsThe findings show that the higher CEO power cause higher firm performance and higher retrenchment. This research suggests that CEO power can make retrenchment strategy works and the decision made can affect the firm performance significantly.Originality/valueThis study examines the effect of CEO power on the performance of retrenchment strategy implementation by contesting agency theory, power circulation theory, and resource-based view theory within the emerging country context.

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