Effect of adaptive capability and entrepreneurial orientation on SBU performance: moderating role of success trap

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Uma Shankar Rangaswamy ◽  
Sanjay Chaudhary

Purpose While prior research has theorized the relevance of adaptive capability (AC) to firm performance, skepticism remains regarding boundary conditions of the AC – performance relationship. This study aims to attempt to understand the intervening effect of entrepreneurial orientation (EO) impacting strategic business unit (SBU) performance. The authors further explore the moderating influence of the success trap on the AC – EO relationship. Design/methodology/approach Data from a sample of 293 SBU heads in an Indian information technology (IT) firm is analyzed using ordinary least squares regression. The authors performed a mediation and moderation test on the data using the Hayes PROCESS SPSS macro. Specifically, this study used Model 4 and Model 7 of the PROCESS macro to test the mediation and moderated–mediation models. Findings The results reveal that EO positively mediates the relationship between AC and SBU performance and the success trap negatively moderates the AC – EO relationship. Research limitations/implications The paper refers to empirical research of strategic business units of an IT services firm in India. Further research in other cultures and industry settings is required to generalize the findings. Practical implications The findings suggest that to improve performance, managers in entrepreneurial software firms should develop an adaptive and innovative culture to avoid success traps. Originality/value The study establishes the crucial role of a firm’s AC as the driver of improved performance in a turbulent environment. This study complements the literature concerning the AC-performance relationship with the introduction of EO as mediating variable.

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xusen Cheng ◽  
Ying Bao ◽  
Alex Zarifis ◽  
Wankun Gong ◽  
Jian Mou

PurposeArtificial intelligence (AI)-based chatbots have brought unprecedented business potential. This study aims to explore consumers' trust and response to a text-based chatbot in e-commerce, involving the moderating effects of task complexity and chatbot identity disclosure.Design/methodology/approachA survey method with 299 useable responses was conducted in this research. This study adopted the ordinary least squares regression to test the hypotheses.FindingsFirst, the consumers' perception of both the empathy and friendliness of the chatbot positively impacts their trust in it. Second, task complexity negatively moderates the relationship between friendliness and consumers' trust. Third, disclosure of the text-based chatbot negatively moderates the relationship between empathy and consumers' trust, while it positively moderates the relationship between friendliness and consumers' trust. Fourth, consumers' trust in the chatbot increases their reliance on the chatbot and decreases their resistance to the chatbot in future interactions.Research limitations/implicationsAdopting the stimulus–organism–response (SOR) framework, this study provides important insights on consumers' perception and response to the text-based chatbot. The findings of this research also make suggestions that can increase consumers' positive responses to text-based chatbots.Originality/valueExtant studies have investigated the effects of automated bots' attributes on consumers' perceptions. However, the boundary conditions of these effects are largely ignored. This research is one of the first attempts to provide a deep understanding of consumers' responses to a chatbot.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sarah R. Crane

PurposeEntrepreneurial firms contribute to economic growth, but the potential gendered nature of this contribution must be investigated as outcomes of male-owned and female-owned firms differ. The study investigates the female underperformance hypothesis in a cross-country analysis of Schumpeterian entrepreneurs. Next, it investigates if there is a gendered dimension of Schumpeterian firm contribution to economic growth.Design/methodology/approachThe study utilizes both nonparametric and parametric methodologies. Through nonparametric methods, the success of female-owned and male-owned firms is compared. Next, a parametric ordinary least squares regression model tests if there is a gendered nature of an entrepreneurial firm's economic contribution.FindingsIn nonparametric analyses, female-owned entrepreneurial firms in developed countries perform similarly to male-owned firms, while in developing countries male-owned firms significantly outperform female-owned firms. The author also finds strong evidence that the gender of the Schumpeterian entrepreneur does not matter in the contribution in economic growth.Research limitations/implicationsIn all countries, the number of female-owned entrepreneurial firms was significantly lower than that of male-owned firms. The findings point to consistent cultural barriers for women in innovation-related fields and persistent gendered norms in entrepreneurship. Thus, removal of cultural barriers and continued support for Schumpeterian entrepreneurship will benefit women and contribute to a country's economic growth.Originality/valueThe data for this study is a unique utilization of the Enterprise World Survey to identify Schumpeterian entrepreneurial firms. Additionally, the study challenges the female underperformance hypothesis and contributes to the literature on the role of entrepreneurship in economic growth.


2020 ◽  
Vol 24 (8) ◽  
pp. 1899-1920
Author(s):  
Jiawen Chen ◽  
Linlin Liu

Purpose This study aims to extend the temporal perspective on ambidexterity by investigating how and under what conditions top management team (TMT) temporal leadership improves innovation ambidexterity. Design/methodology/approach Using a questionnaire survey, data were collected from 165 small- and medium-sized enterprises in China. Ordinary least squares regression models were applied to test the hypotheses. Findings The findings show that TMT temporal leadership has a positive effect on innovation ambidexterity and temporal conflict mediates this relationship. Market dynamism and institutional support moderate the indirect effect of TMT temporal leadership on innovation ambidexterity. Practical implications Managers wishing to promote exploration and exploitation simultaneously should pay attention to the temporal aspects of their innovation strategy and improve their temporal leadership activities. Originality/value This study highlights the temporal conflicts in ambidexterity and clarifies the enabling role of TMT temporal leadership. It contributes new insights to the research on organizational ambidexterity and strategic leadership.


2019 ◽  
Vol 12 (3) ◽  
pp. 364-381 ◽  
Author(s):  
Pouya Seifzadeh ◽  
W. Glenn Rowe

Purpose Corporate controls are mechanisms that corporations use to ensure that the processes and/or outcomes of their business units meet corporate expectations. Challenges in measurement of corporate controls have led many researchers to operationalize them as part of the more ambiguous corporate effects construct, instead of addressing them separately. The purpose of this paper is to examine the significance of “fit” between corporate control mechanisms and business unit strategy in performance of business units. Design/methodology/approach The authors use ordinary least squares regression analysis on data collected between 2010 and 2012 from surveys from managers of 142 Iranian corporations and 1,822 of their subsidiaries. The authors also use financial and market data collected by an IDRO division and accessed through partnership in a joint project. Findings The authors found that while the fit between business unit strategy and corporate controls has a significant effect on business unit financial performance, it does not have a similar effect on market performance. The findings demonstrate that when business unit managers perceive that they are subject to a balance of strategic and financial controls with a slightly greater emphasis on strategic controls, then business units have higher financial and market performance, although the difference in financial performance is not significant. Research limitations/implications The authors find that the misfit between corporate controls and business strategies in such cases could negatively affect the performance of the business unit. However, this research also contributes to a better understanding of the importance of strategic controls to the successful performance of business units. The findings show that while the fit between controls and strategy is most critical for achieving financial performance in business units that pursue product leadership, strategic controls play a more prominent role than financial controls in achieving higher financial or market share performance for all business units. Practical implications The findings of the propositions in this research would discourage corporations with tight financial control from engaging in acquisition of businesses considered to be product leaders in their relative product markets. Originality/value Past research focusing on the fit between corporate-level factors and business-level factors and their role on business performance are largely limited to conceptual work. The limited empirical studies completed in the past generally reduce control mechanisms to lack or absence of autonomy. This shortcoming has been mainly due to difficulties in measurement of control mechanisms. The empirical study overcomes these barriers and in doing so, reveals surprising findings related to the effectiveness of different control mechanisms.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ahmad Siddiquei ◽  
Fahad Asmi ◽  
Muhammad Ali Asadullah ◽  
Farhan Mir

PurposeThe Chinese firms are keenly focused on reducing their environmental footprints as part of the competitive strategy. Within the context of sustainable organizations in China, we test a multilevel framework that examined the impact of environmental-specific servant leadership on the green individual (pro-environmental behavior) and team (project green performance) outcomes within projects. Using social identity theory, we theorize and test the mediating role of green self-identity (individual level) and team green identification (team level) in the relationships between environmental-specific servant leadership, pro-environmental behavior and project green performance.Design/methodology/approachWe used survey questionnaires to collect multi-level and multi-wave data from 42 ongoing project-based sustainable organisations in China. The multilevel team to individual-level hypothesis were analyzed using multilevel-modeling via Mplus, while team level hypotheses were tested using ordinary least squares regression.FindingsThe multilevel regression analysis showed that environmental-specific servant leadership has a trickle-down effect of green self-identity, which subsequently predicts pro-environmental behavior. The ordinary least squares regression results demonstrated that environmental-specific servant leadership predicts project green performance via team green identification. Also, environmental-specific servant leadership has a positive and direct impact on pro-environmental behavior and project green performance.Research limitations/implicationsWe offer community and service dimension of leadership as a determinant of environmental performance at multiple levels. We provide managerial and policy implications to Chinese organizations striving to reposition themselves as eco-friendly organizations both nationally and globally.Originality/valueThe study is among the first to understand the role of environmental-specific servant leadership in predicting individual-level and team-level environment-related mediator and outcomes simultaneously.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Fatemeh Askarzadeh ◽  
Hamed Yousefi ◽  
Mahdi Forghani Bajestani

Purpose Focusing on the direction of foreign acquisition, this study aims to differentiate the effect of institutional distance on the level of ownership. The authors identify several theoretical and methodological issues that might account for the inconsistencies in the literature and provide remedies accordingly. Specifically, the authors propose perceived institutional distance as a conceptualization of distance that controls for asymmetric uncertainty. Design/methodology/approach The authors test the framework with ordinary least squares regression for a sample of 14,192 firm-entries in 115 target countries over 2007–2017. Findings The authors find that institutional distance shows a negative effect on equity ownership in all-inclusive global samples, while there are two imbalanced opposite effects if direction is considered. This casts doubt on the validity of studies that ignore direction. The authors suggest that multinational enterprises entering countries with lower-quality institutions tend to perceive more pronounced distance effects than those expanding the other way around. Hence, the authors argue that “perceived institutional distance” better explains the functional role of distance than simple distance. Practical implications This study better delineates the link between distance and uncertainty and enhances managerial insights for entry mode selection. For policy-making purposes, the authors also show that improvement in institutional quality has a different effect on foreign resource commitment in developed and developing countries. Originality/value To the best of authors’ knowledge, this is the first study that considers both directionality and imbalance in institutional distance and proposes a measure to control for non-linear asymmetric relationship between distance and ownership. The authors extend the institutional theory and show the superiority of perceived institutional distance in predicting ownership implications.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jorge Colazo

PurposeThis paper explores the changes in communication patterns when companies implement lean, and how those changes relate to implementation success.Design/methodology/approachThis is a multiple-site case study involving four business units of a manufacturing company in South America, including two repeated measurement instances separating 24 months for approximately 600 direct workers and 65 supervisors. The analytical models include social network analysis measures and Ordinary Least Squares regression.FindingsWhen companies implement lean, (1) teams have a higher frequency of communication among members; (2) teams become more decentralized; (3) teams communicate more with supervisors and (4) supervisors communicate more amongst themselves and collaborate more. Also, (5) better performing teams change more pronouncedly.Research limitations/implicationsThe study contains data for four business units but within only one company, limiting the external validity of the conclusions. The sample was predominantly male. Participant attrition and other potential covariates not included in the study can be additional limitations.Practical implicationsLean implementations could be practically helped by managers by embracing and supporting the more intense communication patterns associated with lean success, and alternatively, they could proactively detect barriers in communication by measuring how these patterns change or fail to change and try to unlock communication by working on those barriers and supply communications infrastructure and opportunities for collaboration to try to boost the chances of success.Originality/valueThis is to our knowledge the first study measuring communication networks from the point of view of team members and low-level supervisors in lean implementations. This is also the first study showing that communication patterns change more rapidly in more successful teams, and also that communication pattern changes when implementing lean can be an indicator of success.


2018 ◽  
Vol 13 (5) ◽  
pp. 837-854
Author(s):  
Shaista Wasiuzzaman

PurposeThe purpose of this paper is to detect variations in earnings management activity across industries and the possible influence of various industry variables on these variations.Design/methodology/approachA total sample of 4,249 firm-year observations from 13 different industries spanning a total of eight years (from 2005 to 2012) is used for this purpose. The ordinary least squares regression technique is used to test the influence of various industry variables on earnings management activity.FindingsThe findings indicate the presence of earnings management practices in Malaysian industries. Among industry-level variables, capital intensity, volatility and profitability are found to influence aggregate earnings management. Further analysis shows that volatility only influences the smoothing measure while profitability influences the discretionary measure. Interestingly, industry competitiveness and leverage are not able to explain the variations in earnings management across industries.Originality/valueTo the authors’ knowledge, this is the first study which documents the role of various industry characteristics in influencing earnings management activity. It highlights the importance of considering industry-level variables in a study on earnings management and, hence, adds to the growing literature on earnings management.


2019 ◽  
Vol 23 (1) ◽  
pp. 134-155 ◽  
Author(s):  
Rubén Martínez-Alonso ◽  
María J. Martínez-Romero ◽  
Alfonso A. Rojo-Ramírez

Purpose The purpose of this paper is to offer new insights regarding an issue that has attracted the interest of multitude academics and practitioners in business management and family firm literature: technological innovation (TI). Specifically, this study brings new knowledge regarding both the impact of TI efficiency on firm growth and the moderating role of family involvement in management on such relationship. Design/methodology/approach The authors use a matched-pairs design and an ordinary least squares regression analysis to examine a sample of 152 Spanish manufacturing firms. Findings First, the authors show that firms obtaining higher TI efficiency are also those that achieve superior growth. Second, the authors reveal that as family involvement in management increases, the positive effect that TI efficiency exerts on firm growth is strengthened. Practical implications This study suggests that family managers should essentially consider various aspects such as tacit knowledge, social capital and long-standing collaborations with stakeholders to reinforce the relationship between TI efficiency and firm growth. Originality/value To the best of the authors’ knowledge, this is the first study that analyses the effect of TI efficiency on firm growth, as well as, when and to what extent family involvement in management influences the TI efficiency–growth relationship. Thus, this paper provides a deeper understanding of the importance that family managers could have on firm growth deriving from TI efficiency.


Author(s):  
Napoleon Arrey Mbayong ◽  
Djouongha Nguala Noumssi Placide

Purpose: The purpose of this study was to investigate the extent to which organisational culture affects the creativity of the support staff of the University of Bamenda. Methodology/Design/Approaches: The study employed primary data collected through self-administered questionnaires made up of structured questionnaires and unstructured interview. A total of 109 questionnaires were administered to the four selected work functions namely Secretariat staffs, Finance staffs, Health unit staff and Computer unit/Records staffs of the University of Bamenda. A total of 100 questionnaires were recovered making a response rate of 91.7%. These questionnaires were quoted using the Likert scale and analysed with the aid of the SPSS software. Findings: The findings show that changes in people-oriented culture, team culture, stable culture, and innovative culture are responsible for 54% changes in the creativity of support staff in The University of Bamenda with r2= 0.54. The descriptive research design was used and the Ordinary Least Squares regression technique employed to test the hypotheses. The results indicated that there was a significant effect of organisational culture on the creativity of support staff in The University of Bamenda. That is people-oriented culture, teamwork, stable culture, and innovative culture significantly contributed to employee’s creativity at the University of Bamenda. Research Limitations: This work is limited to the University of Bamenda, located in Bambili which is an Anglo-Saxon University there by ignoring other university staffs of the French culture. Practical implications: Based on the findings, the study recommended that the University should encourage teamwork, delegation of responsibility and work innovations at the job site by practicing management by objectives (MBO). If implemented, the university will experience a more creative workforce among its support staff. Originality/Value: This study’s research questions and methods are new to the line of Assessing the role of Organisational Culture on Workforce Creativity among University of Bamenda support staffs. <p> </p><p><strong> Article visualizations:</strong></p><p><img src="/-counters-/edu_01/0796/a.php" alt="Hit counter" /></p>


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