Relational governance, strategic planning and firm performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Volkan Yeniaras ◽  
Ilker Kaya
Keyword(s):  
Firm Performance ◽  
Strategic Planning ◽  
Financial Performance ◽  
Emerging Economies ◽  
Structural Equation ◽  
Demand Uncertainty ◽  
Equation Modeling ◽  
Content Type ◽  
Political Ties ◽  
Business Ties

PurposeWhile there is growing attention to the efficacy of business and political ties in emerging economies, there are not many studies explicitly examining the relations of business and political ties to small and medium enterprises (SME) strategy formation in emerging economies outside of the East-Asian setting. This study attempts to refine the facilitating role of formal strategic planning (FSP) in the relation of business and political ties to financial firm performance.Design/methodology/approachStructural equation modeling and conditional mediation analyses were used.FindingsThe authors show that while business ties are positively related to FSP, political ties are negatively associated with it. In addition, this study provides empirical evidence that FSP positively mediates the relation of business ties to financial performance. Conversely, there exists a negative indirect relationship between political ties and financial performance. This study shows that the demand uncertainty negatively moderates the relation of FSP to financial performance.Originality/valueThe findings offer noteworthy inferences for firm managers and policy makers, who should evaluate the benefits and costs carried by business and political ties.

Performance risk factors in SME strategic planning

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Keyword(s):  
Strategic Planning ◽  
Financial Performance ◽  
Emerging Market ◽  
Negative Influence ◽  
Positive Influence ◽  
Content Type ◽  
Political Ties ◽  
Pertinent Information ◽  
Internal Stakeholders ◽  
Business Ties

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings This research paper concentrates on the links between SME financial performance, business ties, and political ties. Business ties were revealed to be the fundamental microfoundations of formal strategic planning (FSP), by significantly boosting firms' financial performance. However, political ties were revealed to be something to avoid, in emerging market like Turkey, due to their distracting negative influence of firm performance. SMEs can overcome some of the disadvantages of their size by involving positive influence external parties in strategic work, to support internal stakeholders. Originality/value The briefing saves busy executives, strategists and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Cooperative practices and non-financial performance of savings and credit cooperative societies

2020 ◽  
Vol 36 (3) ◽  
pp. 411-425
Author(s):  
Lawrence Musiitwa Kyazze ◽  
Isa Nsereko ◽  
Isaac Nkote
Keyword(s):  
Structural Equation Modeling ◽  
Financial Performance ◽  
Emerging Economies ◽  
Structural Equation ◽  
Design Methodology ◽  
Methodological Approach ◽  
Equation Modeling ◽  
Cross Sectional ◽  
Content Type ◽  
The Relationship

Purpose The purpose of this paper is to examine the relationship between cooperative practices of accountability, cooperative ownership, advanced communication and non-financial performance in savings and credit cooperative societies. Design/methodology/approach The study uses a cross-sectional research design and adopted a mixed methodological approach were hypotheses were statistically tested using structural equation modeling based on survey data (n = 220) and narratives from qualitative findings supported the quantitative findings from savings and credit cooperative societies. Findings The findings reveal that cooperative practices of accountability, cooperative ownership and advanced communication are significantly and positively associated with non-financial performance of savings and credit cooperative societies. Originality/value This study provides empirical evidence on the relationship between cooperative practices of accountability, cooperative ownership and advanced communication and non-financial performance in savings and credit cooperative societies in emerging economies like Uganda. To the best of the authors’ knowledge, there is limited or no study that has used the construct of agency theory in explaining the relationship between cooperative practices and non-financial performance in savings and credit cooperative societies.

The effect of political and business ties on firm performance

2019 ◽  
Vol 42 (7) ◽  
pp. 778-796 ◽  
Author(s):  
Parinaz Sami ◽  
Farajollah Rahnavard ◽  
Alireza Alavi Tabar
Keyword(s):  
Firm Performance ◽  
Product Innovation ◽  
Developing Economies ◽  
Equation Modeling ◽  
Content Type ◽  
Political Ties ◽  
Managerial Ties ◽  
The Relationship ◽  
Business Ties

Purpose The purpose of this study is to investigate the mediator role of product innovation in the relationship between political and business ties (independent variables) and firm performance (dependent variable). Design/methodology/approach In this study, research hypotheses were tested using the structural equation modeling method. Findings The findings from 267 manufacturing companies in Iran show that business ties have an effect on firm performance through product innovation, while the role of innovation is not proved as a mediating variable in the relationships between political ties and firm performance. In addition, business ties have an effect on product innovation and firm performance, whereas political ties have no such effect. Practical implications These results provide useful points for developing economies, theoretically and practically. Originality/value Despite the increasing attention to the role of managerial ties (political and business ties) in improving product innovation and firm performance, there is no study conducted on the mediating role of product innovation in the relationship between managerial ties and firm performance.

Environmental commitment and firm financial performance: a moderated mediation study of environmental collaboration with suppliers and CEO gender

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Thinh Truong Vu ◽  
Wilson V.T. Dang
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Structural Equation ◽  
Equation Modeling ◽  
Content Type ◽  
Environmental Commitment ◽  
Firm Financial Performance ◽  
The Relationship ◽  
Ceo Gender

Purpose Prior studies have found a mixed result on the relationship between environmental commitment and firm performance. To shed a new light on this relationship, this study aims to draw on stakeholder theory, upper echelon theory and gender socialization theory to determine the mediating role of environmental collaboration with suppliers and the moderating role of chief executive officers (CEOs) gender into this relationship. Design/methodology/approach This study conducts a questionnaire survey to collect sample data of 177 CEOs in manufacturing firms in China. Structural equation modeling is used to analyze data and test hypotheses. Findings Empirical results show that environmental commitment has a positive influence on firm financial performance. Furthermore, the results show that environmental collaboration with suppliers mediates the link between environmental commitment and financial performance. In addition, CEO gender has a moderating effect on the relationship between environmental commitment and environmental collaboration with suppliers. Finally, CEO gender also moderates the indirect effect of environmental commitment on financial performance through environmental collaboration with suppliers. Originality/value Findings of this study helps to clarify the mediating and moderating mechanism in the relationship between environmental commitment and firm performance. That is this study helps to clarify the mixed relationship between environmental commitment and firm performance in prior literature. This study also provides new insight and knowledge for business managers to make better decision in dealing with the environmental issue to enhance firm performance.

scholarly journals Relational governance, organizational unlearning and learning: implications for performance

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Volkan Yeniaras ◽  
Anthony Di Benedetto ◽  
Ilker Kaya ◽  
Mumin Dayan
Keyword(s):  
Organizational Learning ◽  
Firm Performance ◽  
Dynamic Capability ◽  
Equation Modeling ◽  
Medium Size ◽  
Content Type ◽  
Political Ties ◽  
Mediating Mechanisms ◽  
Dynamic Skills ◽  
Business Ties

Purpose Drawing on the literature on dynamic skills, this study builds upon and empirically tests a conceptual model that connects business and political ties, organizational unlearning, organizational learning and firm performance. Specifically, this study suggests that business ties enable and political ties inhibit organizational unlearning (i.e. regenerative dynamic capability), which may, in turn, affect exploratory (i.e. renewing dynamic capability) and exploitative (i.e. incremental dynamic capability) innovation behaviors of the firm. Thus, the purpose of this study is to offer a theoretical framework in which organizational unlearning and learning act as mediating mechanisms between business and political ties and firm performance. Design/methodology/approach Structural equation modeling and mediation analyzes were used on a sample of 302 small and medium-size enterprises in Turkey. Findings This study found that business ties enable organizational unlearning while political ties impede it. This study further demonstrates that business ties positively and political ties negatively relate to organizational learning through organizational unlearning. In addition, this study shows that political ties are mostly negatively and indirectly related to firm performance through organizational learning while business ties positively and indirectly relate to firm performance. Practical implications The findings demonstrate the critical role that personal networks play in organizational learning and firm performance. This study provides evidence to the need to recognize and evaluate the potential and undesirable impacts of political ties on cultivating innovation skills and firm performance. In addition, this study recommends managers to embrace the significance of organizational unlearning in strategic renewal, particularly as it applies to building renewing and incremental dynamic skills for enhanced firm performance. Originality/value This study offers a deeper perspective of the dissected relations of social ties in emerging economies to firm performance by considering organizational unlearning and learning behaviors as mediating mechanisms.

How do group affiliates benefit from dual legitimacy to acquire resources in emerging economies? Evidence from China

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xiaoyong Zheng
Keyword(s):  
Emerging Economies ◽  
Structural Equation ◽  
Environmental Uncertainty ◽  
Resource Acquisition ◽  
Equation Modeling ◽  
Hierarchical Regression ◽  
Group Affiliation ◽  
Content Type ◽  
Environmental Munificence ◽  
New Interpretation

Purpose This paper aims to examine the relationships between the group affiliates’ dual legitimacy (membership legitimacy and societal legitimacy) and dual resource acquisition (intra-group and out-group), and the moderating roles of environmental uncertainty and munificence in the emerging economies. Design/methodology/approach This paper adopts hierarchical regression analysis to test the hypotheses based on the unique data of 251 group affiliated firms in China and applies the alternative measurements and alternative methodology of structural equation modeling into robustness check to confirm the results. Findings The results show as follows: the group affiliates can benefit from membership legitimacy for intra-group resource acquisition and out-group resource acquisition through the mediations of societal legitimacy and intra-group resource acquisition. However, in the linkage between affiliates’ membership legitimacy and intra-group resource acquisition and the linkage between societal legitimacy and out-group resource acquisition, environmental uncertainty plays the positive moderating roles while environmental munificence plays the negative moderating roles. Under the condition of high environmental uncertainty and low environmental munificence, the linkage between membership legitimacy and intra-group resource acquisition, and the linkage between societal legitimacy and out-group resource acquisition reach the strongest level. Research limitations/implications The findings highlight the importance of dual legitimacy building for group affiliates to acquire resources both inside and outside the business group when they operate in emerging economies characterized by high environmental uncertainty and low environmental munificence. However, it does not explore the contextual factors (e.g. institutional distance) affecting the relationship between the affiliate’s membership legitimacy and societal legitimacy. Then more group-level factors are expected to be included and explored with multi-level models in the future studies. Originality/value The findings reveal the mechanism of how group affiliates benefiting differently from dual legitimacy to acquire resources in the emerging economies, which also provide a new interpretation for the questions of who benefiting more from the group affiliation, how and why (Carney et al., 2009). This research also explores the moderating roles of task environmental characteristics (environmental uncertainty and environmental munificence) on the affiliate's dual legitimacy and dual resource acquisition, which helps understand why legitimacy building is more important in terms of resource acquisition in the emerging economy characterized by uncertainty and non-munificence.

Dependence, trust, and 3PL integration: an empirical study in China

2017 ◽  
Vol 47 (9) ◽  
pp. 927-948 ◽  
Author(s):  
Baofeng Huo ◽  
Chen Liu ◽  
Haozhe Chen ◽  
Xiande Zhao
Keyword(s):  
Financial Performance ◽  
Information Sharing ◽  
Structural Equation ◽  
Mainland China ◽  
Performance Model ◽  
Equation Modeling ◽  
Content Type ◽  
Key Dimensions ◽  
Process Coordination ◽  
The Relationship

Purpose The purpose of this paper is to investigate relationships among dependence, trust, and integration in the Chinese 3PL context. 3PL integration is manifested in two key dimensions: information sharing and process coordination. Design/methodology/approach This study develops a dependence-trust-3PL integration-performance model and tests it using structural equation modeling with survey data collected from 361 companies in the Greater China area (i.e. mainland China, Hong Kong, and Taiwan). Findings The results show that switch dependence is indirectly related to information sharing and process coordination through goodwill trust, while goal dependence has direct links with both integrative behaviors. The authors also found that only goodwill trust mediates the relationship between dependence and integrative behaviors, while ability trust does not mediate any relationships. Finally, the analysis validated the direct link between process coordination and financial performance, but did not find a significant link between information sharing and financial performance. Originality/value Different from most previous studies on similar topics, this study examines the impacts of different types of dependence and trust on different 3PL integration dimensions. As a result, the findings are more specific and have direct relevance to effective 3PL relationship management in China.

The influence of internal and external factors on the marketing strategic planning in SNOWA Corporation

2018 ◽  
Vol 33 (8) ◽  
pp. 1065-1073 ◽  
Author(s):  
Ali Ebrahimi ◽  
Hamidreza Banaeifard
Keyword(s):  
Strategic Planning ◽  
Content Validity ◽  
Structural Equation ◽  
External Factors ◽  
Equation Modeling ◽  
Content Type ◽  
Marketing Strategic ◽  
Statistical Sample ◽  
Internal And External Factors ◽  
Research Show

Purpose The purpose of this paper is to evaluate the influence of internal and external factors of SNOWA Corporation on its marketing strategic planning. Is there a relationship between internal and external factors and strategic marketing planning? How severe is this relationship? Design/methodology/approach The present study is an applied research using a descriptive-analytic method. The statistical sample of this research includes 300 personnel of SNOWA Corporation. Data were collected applying a standard questionnaire in a five-point Likert scale. Content validity ratio and content validity index were used to evaluate the content validity of the questionnaire, and a Cronbach’s alpha test was applied to assess its reliability. SPSS Software (factor analysis) and Amos Software (structural equation modeling) were applied to analyze the collected data. Results of this research show that internal and external factors influence the development of its marketing strategic planning. Findings Results of this research show that internal and external factors influence the development of SNOWA marketing strategic planning. Another result of this study is that the severity of the relationship between the independent and dependent variables varies from the viewpoint of the employees of different departments. Practical implications The study will help managers deal with environmental opportunities effectively while formulating corporation strategies. In addition, findings reveal that having vision and mission help managers find a clear way to reach the goals. Originality value This is one of a few papers to provide empirical evidence of the influence of internal and external factors of SNOWA Corporation on its marketing strategic planning. Identification of the external-internal factors used in formulating marketing strategic planning may prove useful for other researchers working in this under-researched area.

scholarly journals Complexity and the triple bottom line: an information-processing perspective

2017 ◽  
Vol 37 (9) ◽  
pp. 1142-1163 ◽  
Author(s):  
Frank Wiengarten ◽  
Muhammad Usman Ahmed ◽  
Annachiara Longoni ◽  
Mark Pagell ◽  
Brian Fynes
Keyword(s):  
Information Processing ◽  
Financial Performance ◽  
Structural Equation ◽  
Negative Impact ◽  
Triple Bottom Line ◽  
Structural Equations ◽  
Equation Modeling ◽  
Bottom Line ◽  
Content Type ◽  
The Impact

Purpose The purpose of this paper is to empirically investigate the impact of complexity on the triple bottom line by applying information-processing theory. Specifically, the paper assesses the impact of internal manufacturing complexity on environmental, social, and financial performance. Furthermore, the paper assesses the moderating role of connectivity and shared schema in reducing the potential negative impact of complexity on performance. Design/methodology/approach Multi-country survey data collected through the Global Manufacturing Research Group were utilized to test the hypotheses. The authors used structural equation modeling to test the measurement and initial structural model. Furthermore, to test the proposed moderating hypotheses, the authors applied the latent moderated structural equations approach. Findings The results indicate that while complexity has a negative impact on environmental and social performance, it does not significantly affect financial performance. Furthermore, this negative impact can be reduced, to some extent, through connectivity; however, shared schema does not significantly impact on the complexity-performance relationship. Originality/value This study presents a comprehensive analysis of the impact of complexity on sustainability. Furthermore, it provides managerial applications as it proposes specific tools to deal with the potential negative influences of complexity.

Dynamic capabilities: interrelations and distinct effects on performance in low and high competitive intensity environments

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Amiram Markovich ◽  
Kalanit Efrat ◽  
Daphne R. Raban
Keyword(s):  
Firm Performance ◽  
Structural Equation ◽  
Dynamic Capabilities ◽  
Equation Modeling ◽  
Company Performance ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
Competitive Intensity ◽  
Content Type ◽  
Impact Performance

PurposeThis study aims to augment the understanding of dynamic capabilities (DCs) by exploring the interrelations among the DC categories (sensing, seizing, reconfiguring) and the distinct impact of each DC on firm performance under low and high levels of competitive intensity.Design/methodology/approachThe analysis is based on a cross-sectional survey of 139 managers in Israel. The data were collected through Web-based questionnaires using the Qualtrics software. A two-stage data analysis was performed using structural equation modeling (SEM).FindingsThe findings indicate that DCs follow a sequence in which sensing drives seizing, which, in turn, enhances reconfiguring. The effects of sensing are mainly manifested through its direct impact on seizing, with no evidence for an impact of sensing on company performance. Moreover, under low competitive intensity, only seizing appears to impact performance, while under high competitive intensity, reconfiguring joins seizing in improving firm performance.Originality/valueThe study's findings advance the debate on the direct vs sequential nature of DCs by indicating an internal DC sequence. Our research also advocates for a crucial role of sensing in enhancing DCs, regardless of the level of competitive intensity. Furthermore, this research expands the understanding of the consequences of DCs and enables the prioritization of DC categories under low and high competitive intensity.

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