Intra- and inter-regional expansion: a nonlinear model

2019 ◽  
Vol 57 (7) ◽  
pp. 1554-1566
Author(s):  
Hua Zhang ◽  
Gongming Qian ◽  
Lee Li ◽  
Zhengming Qian
Keyword(s):  
Firm Performance ◽  
Design Methodology ◽  
Secondary Data ◽  
Current Debate ◽  
Content Type ◽  
Managerial Implications ◽  
Using Data ◽  
Regional Diversification ◽  
The Relationship ◽  
Shed Light

Purpose The purpose of this paper is to differentiate between intra- and inter-regional diversification and explore how each affects firm performance. Existing studies show that both intra- and inter-regional expansion provide benefits and incur costs but the findings are mixed. This study aims to explain the mixed findings. Design/methodology/approach This study uses secondary data and quantitative methodologies to test hypotheses. Findings Using data from 663 Canadian firms over a six-year period (2006–2011), the authors find that the relationship between firm performance and the depth and width of intra-regional expansion is nonlinear. The authors also find a sigmoid-shaped relationship between firm performance and inter-regional diversification, i.e., performance initially increases with home regional diversification, decreases with bi-regional diversification and finally increases again with multi-regional diversification. Originality/value The findings of this study shed light on the current debate on the merits of inter- and intra-regional diversification and have important theoretical and managerial implications.

“It's the work climate that keeps me here”: the interplay between the HRM process and emergent factors in the construction of employee experiences

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Maarit Laiho ◽  
Essi Saru ◽  
Hannele Seeck
Keyword(s):  
High Performance ◽  
Design Methodology ◽  
Qualitative Interview ◽  
Employee Perceptions ◽  
Content Type ◽  
Systematic Data ◽  
High Performance Work System ◽  
Employee Experience ◽  
The Relationship ◽  
Shed Light

PurposeThe purpose of this paper is to explore the interplay between human resource management (HRM) and emergent factors in constructing a strong HRM climate. Specifically, the paper aims to shed light on how employee perceptions of the HRM process and emergent factors together construct a strong HRM climate, i.e. employees' shared perceptions of HRM.Design/methodology/approachThe paper uses qualitative interview data (managers and employees) from two organisations operating in Finland. The data are analysed based on a systematic data analysis and gives an illustration of the interplay between high-performance work system and the emergent factors.FindingsThe findings illustrate the three types of interplay between HPWS and emergent factors – supplementation, substitution and suffocation – that construct employee experience.Originality/valueThe paper extends earlier discussions on the relationship between HRM and employee experience by empirically examining how the HRM process – together with emergent factors – constructs a strong HRM climate. The present study contributes to further theorising and increasing our understanding of the creation of employee experience.

Virtual vs physical platform: organizational capacity and slack, strategic decision and firm performance

2020 ◽  
Vol 35 (12) ◽  
pp. 1983-1995 ◽  
Author(s):  
Hang Lee ◽  
Yung-Chang Hsiao ◽  
Chung-Jen Chen ◽  
Ruey-Shan Guo
Keyword(s):  
Firm Performance ◽  
Empirical Support ◽  
Organizational Capacity ◽  
Strategic Choice ◽  
Retail Industry ◽  
Content Type ◽  
Using Data ◽  
Virtual Platform ◽  
The Relationship ◽  
Better Than

Purpose This study aims to examine the relationship between organizational capacity, slack resource, platform strategic choice and firm performance. It also tackles the endogenous issues regarding the strategic choice of platform types. Design/methodology/approach This study uses Heckman’s two-stage procedures to examine the relationship between the variables. The sample in this study comes from Compustat annual company and segment files. The sample used in the main analysis consists of 252 individual corporations globally and 3,528 firm-year observations from 2004–2017. Findings The empirical results suggest that: (1) firms are more likely to develop physical platforms than virtual platforms when they possess higher levels of available slack, potential slack, research and development (R&D) capacity and marketing capacity; (2) in general, firms developing physical platforms perform better than firms developing virtual platforms after the endogeneity bias are controlled; and (3) firms that choose to develop physical platforms perform better than if they had chosen to develop virtual platforms. Research limitations/implications This study contributes to the platform research literature by proposing the endogenous role of platform type choice in firm performance in the context of the retail industry. Prior conceptual and theoretical platform studies have seldom focused on the retail industry through a strategic choice perspective. Furthermore, one of the contributions of this study is the derivation of empirical support for the research’s prediction using data from actual firms carried out by global physical and virtual platform companies. This study also presents many opportunities for further explorations on the relationship between firm strategic choice and firm performance in the context of platform retail industry. Practical implications The findings of this study suggest that firms must realize that their performance is not necessarily affected by these platform type choice determinants in terms of potential slack, available slack, R&D capacity and marketing capacity. By contrast, they should pay more attention to developing physical platforms if it is possible. The study findings indicate that although virtual platforms have grown rapidly because of the development of technology, firm performance is at all times superior when firms choose to develop physical platforms. Originality/value Prior platform studies have focused on the topic of network structure, platform architecture, pricing strategy, platform leadership and platform design and governance within the context of video game industry, software industry, hardware industry and telecommunications industry. Seldom of them focus on other industries through a strategic choice perspective. Furthermore, one of the contributions of this study is the derivation of empirical support for the research’s prediction using data from actual firms carried out by global physical and virtual platform companies.

HR signals in the context of HRM-firm performance relationship: development of a conceptual framework

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chiradip Bandyopadhyay ◽  
Kailash B. L. Srivastava
Keyword(s):  
Firm Performance ◽  
Human Resources ◽  
Conceptual Model ◽  
Design Methodology ◽  
Relationship Development ◽  
Firm Level ◽  
Content Type ◽  
Factors Affecting ◽  
The Relationship

PurposeThe purpose of this paper is to reframe human resources' (HR) systems and practices as HR signals drawing from conceptualizations of signals. The construct of the strength of signal is developed to quantify the attributional ability of HR signals. To examine the role of HR signals in influencing employee behaviours and firm performance, human resource management (HRM)-firm performance relationship is considered as a framework to develop a firm-level conceptual model which integrates factors affecting HR signals and its consequences.Design/methodology/approachThe paper examines the existing literature on the relationship between HRM and firm performance. In the process, the paper considers the concept of HR signal and makes a case for the strength of HR signal. Finally, the paper offers a conceptual model in order to link the antecedents and consequents of HR signals.FindingsThe paper offers a conceptual model to address the gaps in the relationship between HRM and firm performance. It also brings into focus an understanding of HRM as signals and its importance in understanding firm performance.Originality/valueThe paper enriches the existing literature by examining HRM as HR signals. It adds to the literature by considering the attributional ability of HR, through the construct of the strength of HR signals.

Corporate governance and firm performance in Malaysia

2017 ◽  
Vol 17 (5) ◽  
pp. 896-912 ◽  
Author(s):  
Padmanabha Ramachandra Bhatt ◽  
R. Rathish Bhatt
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Design Methodology ◽  
Institutional Environment ◽  
Listed Companies ◽  
Resource Dependency ◽  
Government Agencies ◽  
Content Type ◽  
Corporate Governance Code ◽  
The Relationship

Purpose The purpose of this paper is to study the effect of Malaysian Code on Corporate Governance (MCCG, 2007 and 2012) on the performance of the listed companies in Malaysia. The agency theory and resource dependency theories indicate that the firms with strong corporate governance outperform firms with weaker governance. This paper explores this relationship in a developing country like Malaysia having different institutional environment compared to western countries. Design/methodology/approach The study used a sample of 113 listed companies in Malaysia. The study incorporates the endogenous relationship between corporate governance, firm performance and leverage. Findings The study analyzes how the corporate governance framework affected firm performance in Malaysia with the help of self-developed corporate governance index (MCGI). The authors’ findings show that the performance of the firm is positively and significantly related with corporate governance measured by MCGI. Secondly, corporate governance of sample firms shows marked improvements after implementation of MCCG 2012 as compared to MCCG 2007. Originality/value The findings of this paper support the agency and the resource dependency theories. The study contributes to the understanding of the relationship between the corporate governance and firm performance in emerging economy and builds a case for enforcement of strong corporate governance code by government agencies.

Internationalization and innovation in nascent companies: does gender matter?

2017 ◽  
Vol 24 (4) ◽  
pp. 887-905 ◽  
Author(s):  
Marlon Fernandes Rodrigues Alves ◽  
Simone Vasconcelos Ribeiro Galina ◽  
Nayele Macini ◽  
Luísa Cagica Carvalho ◽  
Teresa Costa
Keyword(s):  
Women Entrepreneurs ◽  
Design Methodology ◽  
Entrepreneurial Activity ◽  
Content Type ◽  
Cross Country ◽  
Log Linear ◽  
The Relationship ◽  
Different Levels ◽  
Shed Light ◽  
Multiple Conditions

Purpose The purpose of this paper is to explore the competitiveness of women entrepreneurs in terms of internationalization and innovation. Supported by a resource-based framework of early internationalizing firms, the authors investigated multiple conditions for the relationship between internationalization and innovation relative to gender in nascent companies. Design/methodology/approach For this purpose, the authors used survey data related to entrepreneurial activity in 50 countries from the Global Entrepreneurship Monitor. Based on a model of seven factors (internationalization, innovation, gender, skills, opportunity, sector, and country), the authors tested the significance of the relationships between these factors by means of a hierarchical log-linear analysis. Findings The results indicate the low competitiveness of women entrepreneurs in general, but outline some singularities, especially between developed and developing countries. Originality/value This study offers cross-country empirical evidence of how factors of different levels interact with each other. In this way, the authors shed light on the competitiveness of nascent companies, especially regarding gender differences.

The neighborhood effect of online reviews

2019 ◽  
Vol 2 (3) ◽  
pp. 262-283
Author(s):  
Dong Liang ◽  
Xia Wang
Keyword(s):  
Design Methodology ◽  
Negative Impact ◽  
Online Reviews ◽  
Neighborhood Effect ◽  
Moderating Effects ◽  
Content Type ◽  
Negative Effect ◽  
Using Data ◽  
The Impact ◽  
The Relationship

Purpose Online reviews have been indicated to play an important role in consumers’ decision-making process, as supported by numerous studies. However, none of them has considered the neighborhood effect of online reviews. The purpose of this paper is to analyze the impact of neighbor store’s reviews on central store’s, along with the moderating effects of store density and product similarity. Design/methodology/approach Using data from dianping.com, this study conducts economic analysis accounting for endogeneity. Findings The results show that the neighbor store’s reviews exert a negative impact on that of central stores. Nevertheless, the relationship is moderated by store density and product similarity, such that the negative effect is stronger if there are a lot of stores around the central store, or if the neighbor store and central store provide similar products. Originality/value This study is the first to investigate the neighborhood effect of online reviews.

Servitization and digitalization in manufacturing: the influence on firm performance

2019 ◽  
Vol 35 (3) ◽  
pp. 564-574 ◽  
Author(s):  
María-Luz Martín-Peña ◽  
José-María Sánchez-López ◽  
Eloísa Díaz-Garrido
Keyword(s):  
Firm Performance ◽  
Business Strategy ◽  
Mediating Effect ◽  
Linear Regression Models ◽  
Analysis Model ◽  
Industrial Firms ◽  
Content Type ◽  
Emerging Trends ◽  
Using Data ◽  
The Relationship

Purpose This paper aims to present a comprehensive framework that integrates the emerging trends of servitization and digitalization in manufacturing. The influence between digitalization and servitization is defined and quantified. Their contribution to firm performance is analyzed. Design/methodology/approach This paper presents a theoretical model that captures the relationships between the analyzed variables. Drawing on the Spanish Business Strategy Survey, hypothesis testing is conducted using data on 828 Spanish industrial firms. Linear regression models are built to capture the effect of each variable on firm performance and the type of interaction between the variables. Findings Servitization and digitalization are positively related to firm performance. Digitalization positively mediates the relationship between servitization and firm performance. The mediating effect of digitalization contributes to differentiating between the direct and indirect effects of servitization on firm performance. Practical implications The paper provides a useful analysis framework for firms to evaluate servitization and digitalization as success strategies. It is proposed that firms must simultaneously commit to digital transformation and the incorporation of services to create value, especially in business-to-business settings. Servitization and digitalization interact to exert a greater influence on performance. Originality/value The paper contributes to the theory on service strategy by providing an analysis model that includes digitalization as a mediator of the relationship between servitization and firm performance. Digitalization may provide a mechanism to unlock the benefits of servitization and thereby enhance firm performance.

Integrative capability, business model innovation and performance

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

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

Environmental proactivity and firm performance: a fuzzy-set analysis

2015 ◽  
Vol 53 (3) ◽  
pp. 648-667 ◽  
Author(s):  
Kaja Primc ◽  
Tomaž Čater
Keyword(s):  
Comparative Analysis ◽  
Firm Performance ◽  
Fuzzy Set ◽  
Qualitative Comparative Analysis ◽  
Past Research ◽  
Content Type ◽  
High Performing ◽  
New Perspective ◽  
Using Data ◽  
The Relationship

Purpose – The purpose of this paper is to explore causal complexity in the relationship between environmental proactivity and firm performance. Using data collected from 27 Australian firms and controlling for the organizational life cycle, type of industry and external contingencies, the study empirically examines environmental proactivity in high-performing firms from polluting industries. Design/methodology/approach – The data were analyzed using fuzzy-set qualitative comparative analysis. Findings – In general, the results of the analysis imply that environmental proactivity is not always associated with high firm performance, and that environmental proactivity is not as important as the other causal conditions for high-performing firms in highly polluting industries. Research limitations/implications – The study addresses the relationship between environmental and firm performance more holistically by including a number of the firm’s external and internal factors identified as important in past research. Second, it offers a new perspective on the relationship with its systematic comparative analysis of complex cases. Next, it identifies different combinations of conditions (paths) leading to a high firm performance and, finally, the core complementary model allows an exploration of which factors are essential and which are less important or even irrelevant to high-performing firms. Practical implications – Based on the findings, firms from highly polluting industries can determine in which circumstances, if any, the adoption of environmental proactivity will result in a positive firm performance. Originality/value – The study is valuable because it contains a rich set of measures of the firm’s external and internal environment, thus allowing a more holistic examination of the relationship between environmental proactivity and firm performance.

Macro-environment’s effects on onshore outsourcing: the transition costs approach

2018 ◽  
Vol 11 (1) ◽  
pp. 27-38 ◽  
Author(s):  
Guillaume Chanson
Keyword(s):  
Design Methodology ◽  
Transaction Cost Economics ◽  
Explanatory Power ◽  
Secondary Data ◽  
Current Debate ◽  
Content Type ◽  
Body Of Knowledge ◽  
Transition Costs ◽  
Domestic Outsourcing ◽  
Practical Implications

Purpose Through the literature, the effect of macro-environment on onshore outsourcing decisions appears rather unexplored, despite empirical evidence. The purpose of this paper is to address this gap through an extension of Transaction Cost Economics (TCE) (the main theory of domestic outsourcing). Design/methodology/approach This paper develops a framework based on a literature review. It applies this body of knowledge on a new question and provides detailed illustrations (with primary and secondary data). Findings This paper builds a theoretical framework, based on the concept of transition costs. This concept, created as a way to make the economizing approach more dynamic, highlights the influences of the macro-environment. This paper presents a clarification of transition costs. It formulates a theoretical proposition: the environment has an effect on outsourcing through the transition costs. Research limitations/implications This framework deserves to be tested through an empirical study. Practical implications This framework enables domestic providers to take the environment and transition costs into account for the design and timing of outsourced service. Social implications This framework enables to consider the importance of social conflicts and political measures on the domestic outsourcing decisions. Originality/value First, this paper addresses an unexplored question (the effect of macro-environment on onshore outsourcing decisions). Second, it refines an undertheorized TCE concept: the transition costs. Third, it proposes a new direction in the current debate of the evanishing explanatory power of the TCE on outsourcing (by extending this theory).

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