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.

The effect of foreign market knowledge on SME export performance: a study ofnon-traditional SMEs in Ghana

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Aidatu Abubakari ◽  
Kwame Simpe Ofori ◽  
Henry Boateng ◽  
Koffi N’Da ◽  
Robert Ebo Hinson
Keyword(s):  
Multinational Corporations ◽  
Absorptive Capacity ◽  
Developing Economies ◽  
Export Performance ◽  
Foreign Market ◽  
Moderating Effect ◽  
Equation Modeling ◽  
Market Knowledge ◽  
Content Type ◽  
The Relationship

Purpose It is well documented in the extant literature that knowledge plays a crucial role in small and medium enterprise (SME) internationalization. Exporting SMEs from developing economies faces many challenges, including lack of knowledge about institutions in foreign markets, inadequate knowledge about foreign institutions and limited internationalization knowledge (IK). However, research on the export performance of SMEs has thus far focused on the internationalization strategies of multinational corporations. This study aims to explore the effect of foreign market knowledge on SME export performance. The authors also assessed the moderating effect of employee absorptive capacity in the knowledge-performance nexus. Design/methodology/approach The authors adopted a survey design to collect data from owners/managers of SMEs exporters in the Greater Accra region of Ghana. A total of 350 questionnaires were distributed based on convenience. Of this number, 257 usable responses were used in the final analysis. The authors tested the proposed model using partial least squares-structural equation modeling. Findings The findings show that the three types of foreign market knowledge tested in this study, namely, foreign institutional knowledge (FIK), foreign business knowledge and IK have positive and significant effects on SME exporters’ performance. It also shows that employees’ absorptive capacity affects the relationship between FIK and SME exporters’ performance. Originality/value The study demonstrates the types of knowledge relevant to SME export performance. The study further demonstrates the moderating effect of employee absorptive capacity on the relationship between knowledge and export performance. The study advances existing knowledge on SME performance, especially from an emerging economy context.

Chasing productivity demands, worker well-being, and firm performance

2020 ◽  
Vol 49 (9) ◽  
pp. 1823-1843
Author(s):  
Mastura Ab Wahab ◽  
Ekrem Tatoglu
Keyword(s):  
Firm Performance ◽  
Well Being ◽  
Manufacturing Firms ◽  
Equation Modeling ◽  
Flexible Work Arrangements ◽  
Flexible Work ◽  
Content Type ◽  
Work Arrangements ◽  
The Impact ◽  
The Relationship

PurposeThis study aims to examine the impact of chasing productivity demands on worker well-being and firm performance in manufacturing firms in Malaysia. Flexible work arrangements and human resources support are used as moderators to mitigate the adverse impacts associated with chasing productivity demands.Design/methodology/approachData were collected from 213 workers from manufacturing firms through a survey questionnaire utilizing structural equation modeling.FindingsThe findings of the study show that flexible work arrangements play a significant role in moderating the relationship between chasing productivity demands and well-being, and between chasing productivity demands and firm performance. The study also shows that flexible work arrangements are important to buffer the adverse effects of chasing productivity demands on worker well-being. In addition, flexible work arrangements strengthen the positive effect of worker well-being on firm performance.Research limitations/implicationsThis study highlights the importance of flexible work arrangements in overcoming the negative impact of the relationship between chasing productivity demands and worker well-being and strengthening the positive impact of the relationship between worker well-being and firm performance.Originality/valueThis study has extended the variable of chasing productivity demands in the existing literature on the job demands–job control model, specifically in manufacturing firms.

scholarly journals Government institutional support, entrepreneurial orientation, strategic renewal, and firm performance in transitional China

2019 ◽  
Vol 25 (3) ◽  
pp. 433-456 ◽  
Author(s):  
Chengli Shu ◽  
Dirk De Clercq ◽  
Yunyue Zhou ◽  
Cuijuan Liu
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Entrepreneurial Orientation ◽  
Transition Economy ◽  
Institutional Support ◽  
Equation Modeling ◽  
Content Type ◽  
Strategic Renewal ◽  
Firm Financial Performance ◽  
The Relationship

PurposeThe purpose of this paper is to examine how entrepreneurial orientation (EO) and strategic renewal (as a critical dimension of corporate entrepreneurship) might transmit government institutional support and thereby enhance firm performance in a transition economy.Design/methodology/approachMulti-respondent data were collected from 230 Chinese-based firms. The hypotheses were tested with structural equation modeling, in combination with a bias-corrected bootstrap method, to assess the significance of the theorized direct and indirect relationships.FindingsGovernment institutional support enhances EO and strategic renewal individually, yet EO also fully mediates the relationship between government institutional support and strategic renewal. Moreover, strategic renewal fully mediates the relationship between EO and firm financial performance, and it partially mediates the relationship between EO and firm reputation.Originality/valueThis study contributes to entrepreneurship literature by testing an organization-level model of entrepreneurial phenomena in established firms that identifies EO and strategic renewal as two distinct mechanisms through which government institutional support in a transition economy can enhance organizational effectiveness, which entails the firm’s financial performance and reputation. In doing so, this study provides an extended understanding of how EO and strategic renewal might influence a firm’s financial and nonfinancial outcomes in different ways.

Absorptive capacity and small family firm performance: exploring the mediation processes

2018 ◽  
Vol 22 (6) ◽  
pp. 1201-1216 ◽  
Author(s):  
Sanjay Chaudhary ◽  
Safal Batra
Keyword(s):  
Knowledge Management ◽  
Firm Performance ◽  
Absorptive Capacity ◽  
Family Firms ◽  
Family Firm ◽  
Content Type ◽  
Small Family ◽  
Strategic Orientations ◽  
And Performance ◽  
The Relationship

Purpose Despite the recognized importance of knowledge management for small family firms, relatively little empirical research has been done so far to understand the mechanisms through which absorptive capacity (AC) assists their performance. The purpose of this study is to understand the relationship between absorptive capacity and performance in small family firms. Design/methodology/approach In this study, the authors theoretically argue and empirically validate that AC enables the creation of entrepreneurial, market and technology orientations in small family firms, which, in turn, lead to superior firm performance. They also tested the study’s hypotheses using mediation and multiple linear regression analyses on data collected from 272 small Indian family firms. Findings The study’s findings suggest indirect relationship between AC and performance. The strategic orientations provide a mechanism through which investments in small family firms’ AC results in firm performance. Practical implications This study offers crucial insights to practitioners and small firm managers regarding the use of knowledge-based capabilities in creating appropriate strategic postures, which, in turn, assist firm performance. Originality/value This study is among few research attempts in understanding the knowledge aspects of small family firms. The present research contributes to the existing literature by unravelling the relationship between knowledge management and small family firm performance. Also, by bringing in data from an under-studied context of an emerging economy, this study strengthens the theoretical applicability of knowledge management in different contexts.

Drivers of supply chain integration and the role of organizational culture

2016 ◽  
Vol 22 (1) ◽  
pp. 89-115 ◽  
Author(s):  
Erlinda N. Yunus ◽  
Suresh K. Tadisina
Keyword(s):  
Organizational Culture ◽  
Supply Chain ◽  
Firm Performance ◽  
Manufacturing Firms ◽  
Supply Chain Integration ◽  
Equation Modeling ◽  
Content Type ◽  
The Impact ◽  
The Relationship

Purpose – Supply chain integration (SCI) is a set of practices driven by many factors and circumstances. The purpose of this paper is to examine firms’ internal and external drivers of SCI, evaluate the impact of the integration on firm performance, and further investigate the moderating role of organizational culture in strengthening the relationships between firms’ drivers and SCI. Design/methodology/approach – For the purpose of this study, manufacturing firms were identified as the focal firms in supply chains, and thus data were collected through a survey of 223 Indonesian-based manufacturing firms. Two informants from each firm became the respondents. Structural equation modeling was used to analyze the data. Findings – This study confirmed the positive relationship between SCI and firm performance. The results also indicated that internal driver, or specifically firms’ customer orientation (CO), triggered the initiation of SCI. Organizational culture, in terms of external focus, positively influenced the relationship between CO and SCI. Research limitations/implications – This study illustrates the important role of organizational culture in determining the shape of the relationship between firms’ drivers and SCI. The results of this study enhance the understanding of SCI, especially related to types of organizational culture that could promote the integration. Originality/value – This study brings a different dimension of SCI as this study provides evidence from a developing country, which might implement different practices as compared those of developed countries. This study provides a measure of internal drivers, which has not been empirically investigated. The new measure was tested and validated using a rigorous process, and thus could be employed in other studies with different settings.

The moderating effect of entrepreneurial culture and government support on the relationship between entrepreneurial orientation and firm performance

2019 ◽  
Vol 12 (2) ◽  
Author(s):  
Syed Noman Mustafa ◽  
Shahid Jan Kakakhel ◽  
Fayaz Ali Shah
Keyword(s):  
Firm Performance ◽  
Entrepreneurial Orientation ◽  
Moderating Effect ◽  
Wood Products ◽  
Government Support ◽  
Equation Modeling ◽  
Entrepreneurial Ecosystem ◽  
Khyber Pakhtunkhwa ◽  
Entrepreneurial Culture ◽  
The Relationship

This research paper empirically examined the moderating effect of entrepreneurial culture and government support on the relationship between entrepreneurial orientation and perceived financial firm performance in the context of province Khyber Pakhtunkhwa, Pakistan. The literature on firm-level entrepreneurship studies argued that external environmental factors vary across countries and regions, therefore, investigating the relationship between entrepreneurial orientation and firm performance is contingent on the external factors known as an entrepreneurial ecosystem of the region. Data were collected from 392 managers, senior officials and owners of the SME's representing four different business sectors of food and beverages, textile and leather products, wood and wood products, arms ammunition and other manufacturing products geographically located in Peshawar, Gadoon, Risalpur and Hattar industrial zones of Khyber Pakhtunkhwa. Proportionate stratified random sampling technique was utilized to give proper representation to each sub-population stratum. Data analysis was performed in IBM SPSS 23 and IBM SEM AMOS 23. Constructs Measurement model, structural model, and path analysis were done through AMOS structural equation modeling. Further, to examine the moderation effect of the variables entrepreneurial culture and government support on the relationship between Entrepreneurial Orientation and firm performance Baron and Kenny's (1983) three-step approach was used. Findings of the present research revealed a significant positive relationship between entrepreneurial orientation and SME's firm performance. Moreover, entrepreneurial culture significantly moderates the relationship between entrepreneurial orientation and firm performance, whereas government support does not moderate the relationship between Entrepreneurial orientation and firm performance. Keywords: Entrepreneurship, entrepreneurial orientation, perceived firm performance, entrepreneurial ecosystem, entrepreneurial culture, government support.

The associations among market orientation, technology orientation, entrepreneurial orientation and organizational performance

2018 ◽  
Vol 25 (8) ◽  
pp. 3117-3142 ◽  
Author(s):  
Ra’ed Masa’deh ◽  
Jawaher Al-Henzab ◽  
Ali Tarhini ◽  
Bader Yousef Obeidat
Keyword(s):  
Organizational Performance ◽  
Market Orientation ◽  
Entrepreneurial Orientation ◽  
Strategic Orientation ◽  
Pharmaceutical Companies ◽  
Pharmaceutical Sector ◽  
Content Type ◽  
Strategic Orientations ◽  
Technology Orientation ◽  
The Relationship

PurposeThe purpose of this paper is to explore the relationship between three variables of strategic orientation (market orientation, technology orientation entrepreneurial orientation) and organizational performance in the Jordanian pharmaceutical sector.Design/methodology/approachThis study employed a quantitative research design where 252 questionnaires were collected form respondents operating in various pharmaceutical companies in Jordan to obtain necessary data to test the hypotheses developed for the study. Multiple regressions were used to analyze the research data.FindingsThe results of the analysis revealed that strategic orientations were positively and significantly related to organizational performance. The findings also showed that market orientation contributed the most to the enhancement of organizational development followed by technology orientation and finally entrepreneurship orientation.Practical implicationsThese findings contribute to the understanding of the importance of employing multiple strategic orientations in order to enhance organizational performance, particularly in pharmaceutical companiesOriginality/valueThis is the first study which adequately covers the relationship between three variables of strategic orientation (market orientation, technology orientation, entrepreneurial orientation) and organizational performance in the Jordanian pharmaceutical sector.

Open innovation search in manufacturing firms: the role of organizational slack and absorptive capacity

2017 ◽  
Vol 21 (3) ◽  
pp. 656-674 ◽  
Author(s):  
Yueqi Wang ◽  
Bin Guo ◽  
Yanjie Yin
Keyword(s):  
Absorptive Capacity ◽  
Open Innovation ◽  
Search Strategy ◽  
Organizational Factors ◽  
Manufacturing Firms ◽  
Moderating Effect ◽  
Organizational Slack ◽  
Content Type ◽  
The Relationship ◽  
Absorbed Slack

Purpose The purpose of this study is to explore organizational factors that act as antecedents of open innovation search. The authors aim to empirically examine whether the extent to which the organizational slack is absorbed determines its influence on firms’ openness in innovation search. In addition, the authors also examine the moderating effect of absorptive capacity on the relationship between slack and open innovation search. Design/methodology/approach This study adopted secondary data from multiple sources (NBER, Compustat and US census) and then constructed a ten-year balanced panel dataset of 298 manufacturers. The generalized least square method was used to explore the determinants of open innovation search among manufacturing firms. Findings The results of this study reveal that the absorption level of organizational slack indeed determines the openness in innovation search. Specifically, absorbed slack negatively affects a firm’s openness in innovation search, whereas unabsorbed slack promotes open innovation search. Additionally, the relationship between absorbed slack and open innovation search will be less negative with the increase of absorptive capacity. Originality/value Different from most previous studies that have examined the performance effect of open search among high-tech and large enterprises, this study focuses on the antecedents of open search strategy in both high- and low-tech, large and small firms. The findings reveal that different forms of organizational slack divergently influence a firm’s open search strategy, contributing to the understanding of the relationship between organizational slack and knowledge search behavior in a broader context, as well as the understanding of the moderating effect of absorptive capacity.

Relationships among advanced manufacturing technology, innovation, export, and firm performance

Kybernetes ◽  
2018 ◽  
Vol 47 (9) ◽  
pp. 1836-1856 ◽  
Author(s):  
Serkan Altuntas ◽  
Omer Cinar ◽  
Selahattin Kaynak
Keyword(s):  
Firm Performance ◽  
Conceptual Model ◽  
Manufacturing Firms ◽  
Manufacturing Technology ◽  
Equation Modeling ◽  
Advanced Manufacturing Technology ◽  
Advanced Manufacturing ◽  
Manufacturing Companies ◽  
Content Type ◽  
The Relationship

Purpose The purpose of this study is to find the relationships among advanced manufacturing technology (AMT), innovation, export and firm performance by using data obtained from 310 Turkish manufacturing firms. Design/methodology/approach A survey study was performed to obtain data from manufacturing firms. Multiple-item scales were adapted from the literature to conduct the survey in this study. Data were collected from five cities located in the Southeastern Anatolia Region in Turkey (Gaziantep, Adiyaman, Kilis, Diyarbakir and Sanliurfa). Structural equation modeling was utilized to investigate the relationships among AMT, innovation, export and firm performance in Turkish manufacturing firms operating in several industries. The direct and indirect relations between these variables are examined in the proposed conceptual model. In addition, the complex relations including in the proposed model are assessed in detail through the mediation analysis. Findings Six of the proposed ten hypotheses related to manufacturers are validated by the empirical evidence from manufacturing companies in Turkey. Significant findings obtained in this study include the following: there are strong positive associations between the use of AMT and innovation and between export and firm performance. In addition, innovation mediates the relationship between AMT and firm performance and between AMT and export. Finally, export mediates the relationship between AMT and firm performance and between innovation and firm performance. It is expected that the results obtained from this empirical analysis will help decision makers and managers to construct a good technology and production management strategy for manufacturing systems. Originality/value In this study, a novel conceptual model is proposed to examine the relationships among AMT, innovation, export and firm performance via the use of survey responses from 310 Turkish manufacturing firms. To the authors’ best knowledge, this is the first study that proposes such a conceptual model in the literature.

Supply chain learning and organizational performance: evidence from Chinese manufacturing firms

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Zia Ul Haq
Keyword(s):  
Supply Chain ◽  
Firm Performance ◽  
Financial Performance ◽  
Organizational Performance ◽  
Manufacturing Firms ◽  
Operational Performance ◽  
Equation Modeling ◽  
Content Type ◽  
Different Types ◽  
The Relationship

Purpose Despite the significance, no study examines the relationship between supply chain (SC) learning components and focal firm performance. This study aims to investigate different types of SC learning (supplier, customer and internal learning) and their influence on the focal firm’s operational and financial performance. Design/methodology/approach Grounded in knowledge-based view and absorptive capacity theory, this study applies structural equation modeling to test the conceptual model based on data collected from 213 manufacturing firms in China. Findings The findings indicate that supplier and customer learning improve internal learning. Customer and internal learning have direct influence on operational performance, whereas internal learning mediates the relationship between supplier learning and operational performance. Moreover, all three dimensions of SC learning do not affect financial performance directly but operational performance plays the mediating role in their relationship. Research limitations/implications This study only investigates SC learning outcomes without exploring its antecedents. In addition, SC learning and their impacts on firm performance are tested empirically with cross-sectional data collected only from manufacturing firms in China. Practical implications The findings furnish managers to seek for competitive advantages through different types of SC learning. Originality/value This study offers new insights concerning the performance implications of SC learning. It divides SC learning into dimensions and shows the distinctive impacts of these dimensions on focal firm’s performance using an empirical method.

Sign in / Sign up

Export Citation Format

Share Document