An empirical study of the relationship between inclusive leadership and business model innovation

2021 ◽  
Vol 42 (3) ◽  
pp. 480-494
Author(s):  
Yangchun Fang ◽  
Xinxing Dai ◽  
Xudong Zhang

PurposeTo better understand factors that lead to business model innovation (BMI) in organizations, this study argues that inclusive leadership is the primary source that motivates employee engagement in boundary-spanning activities, which fosters BMI by generating and integrating employee knowledge through boundary-spanning exploration.Design/methodology/approachThis paper analyzes the relationships between inclusive leadership, boundary-spanning exploration and BMI to discover how they influence each other. This is achieved by a survey of more than 30 enterprises in Zhejiang Province, China. The survey data are analyzed using SPSS.FindingsInclusive leaders who display characteristics of openness, accessibility and availability have a positive effect on BMI and boundary-spanning exploration; openness and accessibility have more significant positive effect on BMI and boundary-spanning exploration.Research limitations/implicationsBecause this study covers only in Zhejiang Province, in China, the findings may not be easily generalizable to other contexts. Other factors, such as organizational structure and contextual characteristics, could also be added as antecedents in a future investigation. Moreover, the scales could be revised more suitable for China in the future.Practical implicationsThe empirical findings can be used as guidelines for firms seeking to take advantage of inclusive leadership and to help firms motivate their employees to engage in boundary-spanning exploration to acquire, generate and integrate knowledge from diverse sources to promote BMI.Originality/valueThis study provides insights that will be of value by adding to the theoretical foundation of our understanding of the antecedents to firms' BMI. This study argues that employees' boundary-spanning exploration is important to BMI as well. Inclusive leadership is crucial to stimulate boundary-spanning exploration by employees. Therefore, how to encourage inclusive leadership in firms is well worth examining.

2019 ◽  
Vol 13 (4) ◽  
pp. 840-859 ◽  
Author(s):  
Yong Wu ◽  
Linqian Zhang ◽  
Zelong Wei ◽  
Mingjun Hou

Purpose This paper aims to explore the effects of holistic cognition frame on novelty-centered business model design and efficiency-centered business model design. Moreover, the authors consider how these effects differ in new ventures vs established firms. Design/methodology/approach The authors use survey data to testify the hypotheses based on a database of 204 firms in China. Then, regression analysis is used to examine the relationship between holistic cognition frame and business model design. They also explore the contingency effects of new ventures and established firms on the relationships. Findings The authors find that the holistic cognition frame has a positive effect on efficiency-centered business model design, whereas it has an inverse U-shaped effect on novelty-centered business model design. Furthermore, they find that the effects of holistic cognition frame on efficiency-centered business model design and novelty-centered business model design are different in established firms and new ventures. Originality/value This work offers new insights into the effects of holistic cognition frame on business model design and provides useful suggestions for firms to promote business model design.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Haixu Bao ◽  
Chunhsien Wang ◽  
Ronggen Tao

Purpose This study aims to explore the relationship between geographic search and business model innovation and proposed a contingent framework to focus on how governmental networking and environment turbulence are interdependent moderate the relationship between geographic search and business model innovation. Design/methodology/approach A large-scale questionnaire survey was carried out among the firms in three high-tech parks of the Pearl River Delta, with a total of 287 firms as empirical samples. Hypotheses are tested using ordinary least squares analyzes on hierarchical multiple regression to find out how geographic search can drive business model innovation generations. Findings The empirical results showed that the more frequent geographic search is, the more favorable it is for firms to generate innovative business models, and firms may be more effective in geographic searching and business model innovation with better governmental networking. However, the above relationship may be weakened if the environment turbulence in emerging markets is further considered. It was argued that firms must take into account both the positive effects of governmental networking and the negative effects of environmental turbulence in conducting a geographic search for external knowledge resources to generate innovative business models. The study results showed how and why governmental networking can be a key catalyst for firms to generate innovative business models. Research limitations/implications This study contributes to the business model innovation literature by documenting the large-scale survey evidence that confirms the practicality of geographic search in the business model innovation generations. The findings advance previous studies in the business model innovation by identifying the moderating roles of governmental network and environment turbulence that predict business model innovation behaviors in the emerging market. Practical implications The results indicate that the geographic search can be easily operationalized for external resources acquisitions by managers in generating business model innovation. This has applications for external resource acquisitions on the basis of business model innovation in the emerging China market. In addition, to facilitate the business model innovation generations, the focus should be on critical contingency factors; on the one hand, to promote the continued use of external resources, the focus should be on enhancing benefits such as governmental networking. Originality/value The findings extend existing theory in three ways as the original value. First, the results show that geographic search is an important driver of business model innovation generations in an emerging market context. Second, this study is the first to take organizational learning and open innovation perspective to examine geographic search as a boundary-spanning search of external resources in business model innovation generations. Third, this study also explores the moderator role of governmental network and environmental turbulence on how to strengthen or impair the geographic search and business model innovation generations.


2019 ◽  
Vol 22 (3) ◽  
pp. 541-561 ◽  
Author(s):  
Changwei Pang ◽  
Qiong Wang ◽  
Yuan Li ◽  
Guang Duan

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.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Linyan Liu ◽  
Yilei Wang

Purpose This paper aims to take International SPOrt (ISPO) as a typical case to study how exhibition organizers can reshape their relationship with users through business model innovation to answer the question that how enterprises can help the exhibition industry to upgrade and develop through business model innovation in the internet environment. Design/methodology/approach Faced with the development of internet technology, the impact of online platforms, the relationship between exhibition organizers and their customers are facing unprecedented challenges. On the basis of the literature review, this study analyzed the innovation of exhibitors’ business model from three modules: value proposition, revenue logic and cost base and how to reshape their interaction with users through innovation. This study systematically analyzed the innovation of the ISPO business model and the process of reshaping its relationship with users and dynamic interaction with a single case study method. Findings The main conclusions are as follows: the starting point of reshaping the relationship between exhibition organizer and users in the internet era is to re-understand the needs of customers, the key point of reshaping the relationship is to further cultivate the industrial value and the sustainability of the relationship lies in the customer life cycle management. Originality/value From the perspective of exhibition organizers filling the gap of case study in the field of the exhibition. In the area of the exhibition, previous studies rarely started from the perspective of exhibition organizers, but, this paper discusses the interaction between exhibition organizers, exhibitors and visitors from this perspective in this study.


2020 ◽  
Vol 24 (1) ◽  
pp. 191-212
Author(s):  
Samar Hayat Khan ◽  
Abdul Majid ◽  
Muhammad Yasir ◽  
Asad Javed

PurposeThis research aims to concentrate on the important concern that how social capital (SC) influences business model innovation (BMI) in the course of the mediating role of organizational learning capabilities (OLC) and the moderating role of entrepreneurial orientation (EO). In the context of small and medium enterprises (SMEs), this study empirically tested a theoretical model of BMI to advocate a mechanism for the analysis of its significant determinants.Design/methodology/approachIn order to achieve the objective of the research, survey method was utilized, and data were collected from 521 CEOs, MDs and the owners of ICT sector SMEs. Correlation, causal step approach and regression analysis were used to test the proposed model.FindingsFinding of the research advocates that OLC mediate the relationship between SC and BMI. In addition, stronger EO augments the association between OLC and BMI.Practical implicationsThe study adds to the literature by providing insights regarding the impact of SC, OLC and EO on BMI of small firms.Originality/valueThis research enriches the existing knowledge by testing a mediating role of OLC between SC-BMI link and, therefore, makes an important addition to the existing knowledge in the context of SMEs by concentrating on the relationship between SC, OLC, BMI and EO.


2020 ◽  
Vol 24 (7) ◽  
pp. 1705-1718
Author(s):  
Bo Yu ◽  
Shengbin Hao ◽  
Yu Wang

Purpose This study aims to explore the impact of organizational search (local and boundary-spanning search) on business model innovation (efficiency-centered/novelty-centered business model innovation) and the moderating role of knowledge inertia between them. Design/methodology/approach The relationships are examined through data provided by a sample of Chinese firms and by multiple hierarchical regressions. Findings Local search has a stronger effect on efficiency-centered business model innovation, whereas boundary-spanning search plays a stronger role in novelty-centered business model innovation. Knowledge inertia strengthens the effect of local search on efficiency-centered business model innovation but weakens the effect of boundary-spanning search on efficiency-centered business model innovation and the effect of local search on novelty-centered business model innovation. Practical implications The findings enable firms’ managers to understand the subtle ways in which organizational search interacts with knowledge inertia to affect business model innovation and may help them to make knowledge management efforts to harvest the full value of organizational search. Originality/value Previous studies have not examined the effect of different organizational search on different business model innovation from knowledge management perspective. With knowledge inertia as the moderator, the results reveal the contingent impact mechanism of organizational search on business model innovation, the findings provide fresh evidence that can bridge the gap between knowledge management and business model innovation.


2019 ◽  
Vol 22 (2) ◽  
pp. 70-88
Author(s):  
Abrar Ali Mohammadusman Saiyed

Purpose The purpose of this paper is to explore the relationship between leadership and business model innovation (BMI) in an entrepreneurial firm. From the literature, it was found that the role of a leader in BMI was unexplored. A research framework was created which was the replication of the model created showing the relationship between leadership and innovation. Design/methodology/approach The qualitative single in-depth case study was used to understand the effects of leadership in BMI. The case of an entrepreneurial firm in the graphic and animation education sector from India was chosen to test the research framework. The leader of Xplora Design Skools was observed closely, and he was interviewed multiple times. Findings From the analysis, it was clear that, in this organization, the leader was a trigger for BMI through creating and influencing creativity and innovation in the organization. This case also shows that he was making tangible contribution to the work being done and motivating his employees. These initiatives show his influence on the process or execution of BMI. Originality/value This is the first study explores the role of a leader in BMI in an entrepreneurial firm in emerging economy contexts like India.


Author(s):  
Hussein Nabil Ismail ◽  
Adnan Iqbal ◽  
Lina Nasr

Purpose The purpose of this paper is to explore the relationship between employee engagement and job performance in the country of Lebanon, and to test whether creativity mediates the relationship between engagement and performance. Design/methodology/approach The research sample consisted of 186 respondents working in Lebanese firms. The questionnaire included established measures relating to employee engagement, job performance and creativity – in addition to various demographic questions. Stepwise multiple regression and bootstrapping methods were employed in the analysis of the data. Findings The findings showed a significant positive effect of employee engagement on job performance. However, mediation analysis using bootstrapping methods has shown that creativity has fully mediated the relationship between engagement and performance. Originality/value The study extends previous research and increases the external validity of the findings by investigating the relationship between engagement and performance in new non-western contexts. Moreover, this is one of the first research studies that explores the role of creativity in the relationship between the two variables; this helps in improving our understanding of the model and aids in enhancing the effect of engagement on performance.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Min Zhang ◽  
Yixuan Zhao

Purpose Based on previous research on millennial employee management in China, this study aims to extend the understanding of the underlining mechanisms and boundary conditions between job characteristics and millennial employee creative performance. Drawing on the self-determination theory and the theory of situation interaction, this study proposes hedonic and eudaimonic well-being as dual mediators, to explain the positive effect of job characteristics on millennial employees’ creative performance. Further, the study proposes that inclusive leadership and achieving styles could separately moderate these two mediation paths. Design/methodology/approach The data comprises information on 288 millennial employees in China. Findings The results show that both hedonic and eudaimonic well-being mediate the positive effect of job characteristics on millennial employees’ creative performance. The positive effect of job characteristics on millennial employees’ hedonic well-being is stronger when inclusive leadership is stronger; and the positive effect of millennial employees’ hedonic well-being on creative performance is stronger when direct achieving style and instrumental achieving style are stronger. There was no significant moderating effect of inclusive leadership on the relationship between job characteristics and millennial employees’ eudaimonic well-being, and no significant moderating effect of achieving style on the relationship between millennial employees’ eudaimonic well-being and creative performance. Job characteristics exerted a positive indirect effect on employees’ creative performance through employees’ hedonic well-being and that this cascading effect was moderated by inclusive leadership, direct achieving style and instrumental achieving style. Practical implications The findings have important implications for both job design practices and employee performance research. Organizations should pay more attention to improving the creative performance of millennials employees through innovative job design or other organizational level motivational drivers. At the same time, the findings in this study align with the findings in Sheldon et al. (2018) study where extrinsic values rather than toward intrinsic values will bring improved hedonic well-being to the individual in the short term. One further practical implication is that if organizations need a short-term boost of creative performance from their millennial employees, organizations can provide more extrinsic motivators. When organizations want to see more long-term creative performance results, intrinsic motivators should be established. Originality/value As part of a series of research on Chinese millennial employee management, this paper extends existing research results. First, the authors verify the main effect relationship between job characteristics and employee creative performance. Second, based on the self-determination theory, this study constructs a dual mediation model and tests the mediating effect of hedonic and eudaimonic well-being between job characteristics and employee creative performance. Third, considering the situational characteristics of the study, the authors propose the boundary conditions of the relationship between job characteristics and creative performance from two levels of individual characteristics and leadership types, namely, inclusive leadership and achieving style.


2020 ◽  
Vol 35 (4) ◽  
pp. 771-784
Author(s):  
Dong Yang ◽  
Zelong Wei ◽  
Huibin Shi ◽  
Jie Zhao

Purpose This study aims to investigate how market orientation (MO) motivates firms to develop business model innovation and how such effects are moderated by strategic flexibility. Design/methodology/approach In this study, a questionnaire-based survey was undertaken to test the proposed hypotheses. The empirical study was conducted on a sample of 204 firms using two key informants (408 respondents) in China. The regression model is used to test the proposed model. Findings This research finds that both responsive market orientation (RMO) and proactive market orientation (PMO) have a positive effect on business model innovation. The effects of RMO and PMO on business model innovation are contingent on resource (coordination) flexibility in different ways. More importantly, this study finds that resource flexibility enhances the positive effect of RMO and weakens the positive effect of PMO. The study also finds that coordination flexibility enhances the positive effect of PMO. Research limitations/implications Future research can explore the internal mechanisms through which RMO and PMO promote business model innovations. Although the study finds that both the MOs promote business model innovation, they may promote business model innovation through different mediating effects. Future research can explore the role of external dynamic capabilities. This research mainly focuses on the internal dynamic capability of focal firms. However, as a focal firm-centered boundary spanning activity system, to transform into a new business model, firms not only need to reconfigure internal resource base, but also need to realign external collaboration network. Practical implications This research also bears important managerial implications. First, firms should be aware of the positive effect of MO on business model innovation. Firms with higher level of RMO or PMO can promote business model innovation. Second, when firms implement RMO for business model innovation, managers should focus on resource flexibility. Where MO is responsive, marketing managers need to be concerned with ensuring various applications of existing resource so as to understand effectively the current customers and market domain. Third, to leverage PMO for business model innovation, firms should adopt coordination flexibility. For firms with higher level PMO, firms should try to find the new internal coordination process for customer latent needs. Originality/value The conclusion extends the business model innovation research from the view of dynamic capabilities. As one of types of dynamic capabilities, MO is also the important antecedent of business model innovation. Further, this research also discusses the role strategic flexibility plays in business model innovation.


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