Clusters, technological knowledge spillovers, and performance

2015 ◽  
Vol 53 (2) ◽  
pp. 469-490 ◽  
Author(s):  
Tsai-Ju Liao
Keyword(s):  
Market Orientation ◽  
Cluster Size ◽  
Knowledge Spillovers ◽  
Technological Knowledge ◽  
Foreign Firms ◽  
Local Market ◽  
Local Ownership ◽  
Content Type ◽  
Strategic Behaviors ◽  
And Performance

Purpose – The purpose of this paper is to explore the cluster effect by decomposing the broad category of “clusters” into cluster size and technological knowledge spillovers. Further, this study questions whether all foreign firms benefit equally from participation in geographic clusters. Specifically, the paper examines the moderating roles of local ownership ties and a local market orientation with respect to the benefits of cluster size and technological knowledge spillover. Design/methodology/approach – Using the Database of Enterprises in China, this study examines a sample of 2,200 Taiwanese manufacturing firms operating in China from 2005 to 2007. Findings – The paper found that increased cluster size and technological knowledge spillovers help to enhance foreign firms’ financial performance. The analysis also shows that local ownership ties and a local market orientation have a positive moderating effect on the relationship between cluster size, technological knowledge spillovers, and performance. Originality/value – This study distinguishes between the effects of cluster size and technological knowledge spillovers, which is an important step toward demystifying the “black box” of cluster benefits. Further, due to the liability of foreignness and the lack of legitimacy that foreign firms face when operating in emerging economies, this study integrates the cluster perspective and the legitimacy perspective to discuss whether foreign firms can actively adopt strategic behaviors that will help to improve their legitimacy and enable them to better capture potential cluster benefits.

Foreign firms’ strategic positioning and performance in a host market

2018 ◽  
Vol 26 (2) ◽  
pp. 173-192 ◽  
Author(s):  
Henry Yu Xie ◽  
Qian (Jane) Xie ◽  
Hongxin Zhao
Keyword(s):  
Resource Partitioning ◽  
Foreign Firms ◽  
Local Market ◽  
Strategic Positioning ◽  
Market Knowledge ◽  
Content Type ◽  
Foreign Companies ◽  
Positioning Strategy ◽  
The Us ◽  
And Performance

Purpose Strategic positioning of foreign firms in a host market is vital for their success. By integrating the resource partitioning theory and the resource-based view, this study aims to investigate foreign firms’ strategic positioning (i.e. their choice of generalist or specialist positioning strategy) and its performance implications in the US market. Design/methodology/approach The final sample includes 212 foreign companies from 28 countries operating in the US market. Multiple data sources were used to collect data of these foreign companies’ subsidiaries in the USA This study used logistic regression to test its major hypotheses. Findings The results of this study suggest that a generalist positioning strategy is positively related to performance in a host market. It is also found that market concentration and local market knowledge moderate this strategic positioning – performance relationship. Research limitations/implications For a foreign firm that enters a host market, market concentration (an industry-level factor) in the host market and the firm’s local market knowledge (a firm-specific factor) play prominent roles in the strategic positioning – performance relationship. Originality/value This study offers a novel perspective of international business strategy by applying the lens of resource partitioning theory to study the relationships between multinational enterprises’ strategic positioning and performance. This study contributes to the strategy literature in that it examines the performance implications of firms’ strategic positioning (i.e. generalist or specialist positioning).

scholarly journals Entrepreneurial knowledge, skills, competencies and performance

2019 ◽  
Vol 13 (1) ◽  
pp. 29-48 ◽  
Author(s):  
Abdullah Al Mamun ◽  
Syed Ali Fazal ◽  
Rajennd Muniady
Keyword(s):  
Market Orientation ◽  
Low Income ◽  
Mediation Effect ◽  
Enterprise Performance ◽  
Content Type ◽  
Entrepreneurial Skills ◽  
And Performance ◽  
Entrepreneurial Activities ◽  
Positive Effect ◽  
Entrepreneurial Competency

Purpose This study aims to examine the effect of entrepreneurial skills, market orientation, sales orientations and networking on entrepreneurial competency and performance of micro-enterprises in Kelantan, Malaysia. Design/methodology/approach Adopting a cross-sectional design, this paper collected data through structured interviews from 403 micro-entrepreneurs from “Majlis Amanah Rakyat,” Kelantan and “Majlis Agama Islam dan Adat Istiadat,” Kelantan. Findings The findings reveal that entrepreneurial skills, market orientation and networking have a positive effect on entrepreneurial competency. Then, entrepreneurial competency, entrepreneurial skills and networking have a positive effect on enterprise performance. The findings show a significant mediation effect of entrepreneurial competency on the relationships between entrepreneurial skills, market orientation and networking and enterprise performance. Originality/value Addressing the understudied “human factor” in entrepreneurship, this paper extends the resource-based view and enriches the existing entrepreneurship literature in Malaysia. It provides useful insights into the improvement of micro-enterprise performance, which is crucial for promoting entrepreneurial activities and for enhancing socio-economic conditions among low-income households in Malaysia. Thus, the government and developmental organizations should focus on the development of entrepreneurial skills, market-oriented approach, networking traits and entrepreneurial competencies and subsequently encourage poor households to perform entrepreneurial activities.

Market orientation and women-owned SMEs performance

2020 ◽  
Vol 9 (2) ◽  
pp. 215-234 ◽  
Author(s):  
Muhammad Amir Rashid ◽  
Masood Nawaz Kalyar ◽  
Imran Shafique
Keyword(s):  
Market Orientation ◽  
Entrepreneurial Orientation ◽  
Design Methodology ◽  
Strategic Decision ◽  
Hierarchical Regression ◽  
Full Potential ◽  
Survey Questionnaire ◽  
Content Type ◽  
And Performance ◽  
Practical Implications

PurposeThis research aims to investigate the contingent effect of entrepreneurial orientation (EO) and strategic decision responsiveness (SDR) on the link of market orientation (MO) and performance of women-owned small and medium-sized enterprises (WSMEs).Design/methodology/approachData were collected from 909 WSMEs of Punjab province Pakistan through survey questionnaire. Hierarchical regression is employed to perform the analysis.FindingsResults reveal that although higher-level dimensions of MO directly affect the WSMEs performance, however this linkage becomes stronger under SDR and higher-level dimensions of EO.Practical implicationsManagers should emphasis on the demonstration of EO's dimensions and SDR to utilize the full potential of MO to promote WSMEs performance.Originality/valueTo study the contingent effect of SDR and EO's dimensions in the MO–WSMEs performance nexus is the novelty of this study.

M&As in Africa – effects of law and governance

2019 ◽  
Vol 14 (5) ◽  
pp. 873-898
Author(s):  
Alex Lundqvist ◽  
Eva Liljeblom ◽  
Anders Löflund ◽  
Benjamin Maury
Keyword(s):  
Spillover Effects ◽  
Extensive Study ◽  
Foreign Firms ◽  
Partial Control ◽  
Data Set ◽  
Content Type ◽  
Heritage Foundation ◽  
Transparency International ◽  
Shareholder Protection ◽  
And Performance

Purpose The cultural and legal differences between foreign acquirers and African target firms can be substantial. There is also a large variation in cultures and legal systems within Africa. However, there is limited research on merger and acquisition (M&A) performance by foreign firms in Africa. The purpose of this paper is to fill this gap by exploring the “spillover by law” hypothesis (Martynova and Renneboog, 2008) that focuses on the influence of the external environment on the governance and performance of foreign M&As in Africa. Design/methodology/approach The data set covers 415 M&A transactions by foreign firms in Africa during the period of 1999–2016. Dynamic data covering the country’s legal, cultural and political environment are collected from the World Bank, the Heritage Foundation and Transparency International. Findings The authors find that the legal environment significantly affects the returns of bidders on African firms. For complete acquisitions, bidder returns are significantly higher when the bidder’s country has higher shareholder protection and higher creditor protection compared with the target firm’s country. The results show that the effects are significant when there is a full control change (including a change in the target firm’s nationality) but not in the case of partial control transfers. The results are consistent with the “spillover by law” hypothesis. Originality/value The authors contribute to the literature on cross-border M&As by separately studying the valuation effects of full, majority and minority changes in control; by being the first study of the legal spillover effects in Africa; and by being the most extensive study of the legal determinants of the valuations of non-African acquirers of African firms.

Market orientation and performance: modelling a neural network

2009 ◽  
Vol 43 (3/4) ◽  
pp. 421-437 ◽  
Author(s):  
Manuela Silva ◽  
Luiz Moutinho ◽  
Arnaldo Coelho ◽  
Alzira Marques
Keyword(s):  
Neural Network ◽  
Market Orientation ◽  
Network Model ◽  
Neural Network Model ◽  
Performance Modelling ◽  
Network Modelling ◽  
Content Type ◽  
Market Intelligence ◽  
And Performance ◽  
The Impact

PurposeThis paper aims to investigate the impact of market orientation (MO) on performance using a neural network model in order to find new linkages and new explanations for this relationship.Design/methodology/approachThis investigation is based on a survey data collection from a sample of 192 Portuguese companies. A neural network model has been developed to identify the effects of each dimension of MO on each dimension of performance.FindingsRelationship among MO and performance was corroborated but MO's impact is poor and based on its first dimension, market intelligence generation.Research limitations/implicationsFurther research in this field should be conducted using other tools offered by neural network modelling.Practical implicationsManagers should give more attention to cross‐functional co‐ordination in order to improve market intelligence dissemination and responsiveness and, thus, global performance.Originality/valueThe paper presents the development of a neural network model to analyse this relationship.

Industry innovation spending and openness to collaboration as levers for firm performance

2019 ◽  
Vol 22 (4) ◽  
pp. 617-638 ◽  
Author(s):  
Luiz Fernando de Paris Caldas ◽  
Fabio de Oliveira Paula ◽  
T. Diana L. van Aduard de Macedo-Soares
Keyword(s):  
Firm Performance ◽  
Knowledge Spillovers ◽  
Moderating Effect ◽  
Firm Innovation ◽  
Content Type ◽  
Innovation Activities ◽  
Industry Collaboration ◽  
And Performance ◽  
Italian Manufacturing Firms ◽  
The Relationship

Purpose The purpose of this paper is to analyze to what extent spending on innovation activities and collaboration at the industry level affects the relationship between firm innovation and performance. Design/methodology/approach A conceptual model was proposed and empirically tested using multiple linear regression. The data were obtained from the Community Innovation Survey 2012, composing a sample of 890 Italian manufacturing firms. Findings The results provided full support for the positive moderating effect of intra-industry innovation spending and partial support for the positive moderating effect of intra-industry collaboration, both regarding the relationship between firm innovation spending and performance. Knowledge spillovers derived from intra-industry innovation spending and intra-industry collaboration affect firm performance. While this finding corroborates other studies that have found that the intra-industry R&D spending influences firms’ innovation and performance, it also contributes to improve the understanding about the complementarity of internal innovation activities and knowledge spillovers. Originality/value This study contributes to theory by filling a gap concerning the complementarity of internal innovation activities and the effect of knowledge spillovers to improve firm performance. Our findings suggested that intra-industry openness to collaboration and innovation spending, as proxies of knowledge spillovers, plays an important role in complementing firm level innovative efforts, even in the case of firms that spend less on innovation and have a lower degree of collaboration. This is especially relevant for small and medium enterprises, which can take advantage of access to the necessary information to overcome their internal resource constraints for R&D and innovation. The originality of these findings adds value in terms of furthering the understanding of this phenomenon.

scholarly journals The effect of entrepreneurial orientation variables on business performance in the SME industry context

2020 ◽  
Vol 32 (1) ◽  
pp. 35-62
Author(s):  
Ni Made Wahyuni ◽  
I Made Sara
Keyword(s):  
Market Orientation ◽  
Entrepreneurial Orientation ◽  
Textile Industry ◽  
Business Performance ◽  
Learning Orientation ◽  
Potential Contribution ◽  
Significant Positive Effect ◽  
Content Type ◽  
And Performance ◽  
Positive Effect

Purpose The purpose of this study is to provide new practical and theoretical insights into how small and medium-sized enterprises (SMEs) adjust and further develop business competencies, innovations and performance by using market orientation, learning orientation behaviors and entrepreneurial orientation. Design/methodology/approach The data was collected from manufacturing SMEs of textile products that had a number of employees between 5 and 99 people in the province of Bali, Indonesia, in 2016. Bali province was chosen as a research location because Bali was one of the tourism centers in Indonesia and even in the world was considered suitable for this research. It was because it had textile product industries that contributed in the fulfillment of the needs of tourism clothing, national economy, the fulfillment of fashion needs and foreign exchange contributors from non-oil exports (Industry and Trade Service of Bali). Findings Based on the results of descriptive and inferential analysis that has been conducted, it can be concluded that the answer to the problems and objectives that have been determined is market orientation, learning orientation and entrepreneurial orientation affect business performance through knowledge competence and innovation directly and its influence is significantly positive. But market orientation, learning orientation and entrepreneurial orientation do not directly have a significant positive effect on innovation through knowledge competence. Market orientation, learning orientation and entrepreneurship orientation indirectly have a significant positive effect on business performance through knowledge and innovation competencies. Originality/value The lack of studies in the existing literature underscores the potential contribution of this subsequent study. The novelty of the research is first to develop a concept of learning orientation that is linked to competence of knowledge, which this link has not been much expressed in the context of industry SMEs; second, to build the concept of innovation development of small and medium-sized industry of textile industry based on market orientation by strengthening the mediation role of competence of knowledge.

Market orientation and performance: industrial supplier and customer perspectives

2020 ◽  
Vol 35 (11) ◽  
pp. 1701-1714 ◽  
Author(s):  
Thomas L. Powers ◽  
Karen Norman Kennedy ◽  
Seongwon Choi
Keyword(s):  
Firm Performance ◽  
Market Orientation ◽  
Multiple Perspectives ◽  
Actual Performance ◽  
Content Type ◽  
Industrial Marketing ◽  
Perceived Performance ◽  
Marketing Orientation ◽  
And Performance ◽  
The Relationship

Purpose This paper aims to contribute industrial marketing literature by examining the relationship between market orientation and performance based on multiple perspectives and measures. Although the relationship between market orientation and firm performance has been examined in prior research a gap in the literature exists, as this relationship has not been examined from separate perspectives of managers, salespersons and customers. In addition to this gap in the literature, a further gap exists as these multiple assessments of market orientation have not been examined relative to both subjective and objectives measures of industrial firm performance. Design/methodology/approach The research is based on data obtained from 111 sales branches of a Fortune 500 industrial supplier. Findings The results indicate that managers, salespersons and customers all indicate a positive relationship between market orientation and perceived performance. Market orientation and actual branch performance were not related when assessed by any of the three respondent groups. Only salespersons were able to significantly relate perceived firm performance to actual performance. Research limitations/implications These findings add a new dimensions to the existing stream of literature on the industrial marketing orientation and performance relationship. Originality/value These findings add new dimensions to the existing stream of literature on the industrial marketing orientation and performance relationship.

Taking a prospector local-market focus and foreign subsidiary performance: evidence from China

2019 ◽  
Vol 57 (3) ◽  
pp. 569-582 ◽  
Author(s):  
Po-Yen Lee
Keyword(s):  
Business Environment ◽  
Local Market ◽  
Chinese Market ◽  
Content Type ◽  
Impact Performance ◽  
Political Ties ◽  
Managerial Ties ◽  
Market Focus ◽  
And Performance ◽  
Business Ties

PurposeThe purpose of this paper is to examine the relationships among taking a prospector local-market focus, managerial ties (business ties and political ties) and performance in the Chinese market.Design/methodology/approachThis study, using a sample of 371 Taiwanese subsidiaries of multinational corporations (MNCs) in China, applies regression analyses to investigate the following questions: does taking a prospector local-market focus negatively impact performance? Do managerial ties (business ties and political ties) positively impact performance? Do these managerial ties positively moderate the effect of the taking a prospector local-market focus on performance?FindingsTaking a prospector local-market focus negatively impacts the performance of MNC subsidiaries. Business ties positively impact the performance of MNC subsidiaries, as do political ties. Finally, the impact of a prospector local-market focus on performance is positively moderated by business ties.Practical implicationsThe Chinese market is still aguanxiexchange business system and political connections usually require significant investment in exchange for advantageous market conditions. Thus, political ties must be carefully considered by MNC subsidiaries when they employ a prospector local-market focus in the Chinese business environment.Originality/valueFirst, this study clarifies the key relationship between the strategic choice of taking a prospector local-market focus and performance of MNC subsidiaries in the Chinese market. Second, it identifies the moderating role of managerial ties (political and business ties) in influencing the relationship between a prospector local-market focus and subsidiary.

Investigating internal market orientation: is context relevant?

2020 ◽  
Vol 23 (3) ◽  
pp. 523-539 ◽  
Author(s):  
Qionglei Yu ◽  
Bradley R. Barnes ◽  
Yu Ye
Keyword(s):  
Market Orientation ◽  
Cultural Context ◽  
Best Practice ◽  
Internal Market ◽  
Content Type ◽  
Study Approach ◽  
Internal Customers ◽  
Employee Welfare ◽  
And Performance ◽  
Internal Market Orientation

Purpose Through undertaking qualitative research within different industrial contexts, the study aims to address the following: How do practitioners in non-service organisations interpret internal market orientation (IMO); How is IMO practiced within an eastern cultural context; and What are the outcomes of its implementation? Design/methodology/approach The study examines three organisations from three different industries and draws on nine in-depth interviews with people across various levels within each organisation. Findings The study reveals that: a) senior management commitment should be included in the design of IMO at the strategic level; b) effective responsiveness to internal information collected is crucial to its success; c) creative ways to meet internal customers’ needs and expectations are contextualised; and d) cultural nuances need to be considered when applying IMO. Research limitations/implications Choosing a multiple-case study approach provides in-depth explanations; however, such an approach may lead to less generalisability. Practical implications The study advocates that a) some degree of resources are needed to ensure that IMO can be fully implemented and employee welfare enhanced; b) creativity is required for each organisational context responding to employees’ needs, expectations, complaints or ideas; and c) removing unnecessary barriers can help to foster better interdepartmental relationships and, thus, improve work procedures and employee satisfaction. Originality/value This study contributes to the literature by developing a framework to signal the importance of IMO as a facilitator for better firm communication and performance. Contextualised IMO practices from the cases may shed further light on specific best practice.

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