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.

Drivers of supply chain integration and the role of organizational culture

2016 ◽  
Vol 22 (1) ◽  
pp. 89-115 ◽  
Author(s):  
Erlinda N. Yunus ◽  
Suresh K. Tadisina
Keyword(s):  
Organizational Culture ◽  
Supply Chain ◽  
Firm Performance ◽  
Manufacturing Firms ◽  
Supply Chain Integration ◽  
Equation Modeling ◽  
Content Type ◽  
The Impact ◽  
The Relationship

Purpose – Supply chain integration (SCI) is a set of practices driven by many factors and circumstances. The purpose of this paper is to examine firms’ internal and external drivers of SCI, evaluate the impact of the integration on firm performance, and further investigate the moderating role of organizational culture in strengthening the relationships between firms’ drivers and SCI. Design/methodology/approach – For the purpose of this study, manufacturing firms were identified as the focal firms in supply chains, and thus data were collected through a survey of 223 Indonesian-based manufacturing firms. Two informants from each firm became the respondents. Structural equation modeling was used to analyze the data. Findings – This study confirmed the positive relationship between SCI and firm performance. The results also indicated that internal driver, or specifically firms’ customer orientation (CO), triggered the initiation of SCI. Organizational culture, in terms of external focus, positively influenced the relationship between CO and SCI. Research limitations/implications – This study illustrates the important role of organizational culture in determining the shape of the relationship between firms’ drivers and SCI. The results of this study enhance the understanding of SCI, especially related to types of organizational culture that could promote the integration. Originality/value – This study brings a different dimension of SCI as this study provides evidence from a developing country, which might implement different practices as compared those of developed countries. This study provides a measure of internal drivers, which has not been empirically investigated. The new measure was tested and validated using a rigorous process, and thus could be employed in other studies with different settings.

Mediating role of immediate performance outcomes between supply chain integration and firm performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nikhat Afshan ◽  
Purnendu Mandal ◽  
Angappa Gunasekaran ◽  
Jaideep Motwani
Keyword(s):  
Supply Chain ◽  
Firm Performance ◽  
Financial Performance ◽  
Performance Outcomes ◽  
Supply Chain Integration ◽  
Equation Modeling ◽  
Content Type ◽  
Mediating Role ◽  
The Relationship

PurposeThe purpose of this paper is to examine the mediating role of immediate performance outcomes on the relationship between dimensions of supply chain integration (SCI) and financial performance.Design/methodology/approachThis study tests the proposed model linking dimensions of SCI, immediate performance outcomes and financial performance using structural equation modeling on a sample of Indian manufacturing companies.FindingsThe findings suggest that the relationship between dimensions of SCI and firm performance is fully mediated through the immediate performance outcomes.Originality/valueThis study deals with the potential benefits of SCI, especially in developing countries like India, where a little research has been done in this area. Also, this study provides support to practitioners that SCI is an effective way of improving both supply chain performance and financial 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 The role of 4PL provider as a mediation and supply chain agility

2020 ◽  
Vol 2 (2) ◽  
pp. 99-111
Author(s):  
Macide Berna Çağlar Kalkan ◽  
Kenan Aydın
Keyword(s):  
Supply Chain ◽  
Firm Performance ◽  
Survey Data ◽  
Service Providers ◽  
Equation Modeling ◽  
Content Type ◽  
Supply Chain Agility ◽  
The Impact ◽  
The Relationship

PurposeThe aim of this study is to examine the role and capabilities of fourth party logistics (4PL) in the supply chain agility and firm performance. In addition to this, the relationship between supply chain agility and firm performance is also examined. This study aims to fulfill the gap in the literature about the studies on the relationship between 4PL capability dimensions, supply chain agility and business performance.Design/methodology/approachThe study uses survey data from 58 senior executives and managers in the logistics and supply chain functions from 4PL service providers' customer firms in Turkey. The results are structural equation modeling using SmartPLS software. Snowball sampling method was used to collect survey data.FindingsThis study shows that integrator and supply chain infomediary are appropriate practices for mediating the impact of agile supply chain strategies, on firm performance. For supply chain practitioners, results indicate that firms benefit greatly if they consider the outsourcing, such as a 4PL partnership, in conjunction with their supply chain strategy.Research limitations/implicationsTime, cost and the presence of businesses located in different cities across Turkey in the sample of study and the existence of the tendency of enterprises not to participate in the research can be stated as the limitations of this study.Originality/valueIn the literature, studies on 4PL have been conducted in different fields which can be categorized as follows: 4PL solution development, reasons that facilitate and prevent the design and implementation of 4PL, scope of 4PL service delivery and profit and risk sharing from the structure of 4PL networks. Briefly, the studies focus on conceptualizing and differentiating of 4PL from 3PL before reaching a common definition. Motivation of this study is to fulfill the gap of literature about supply chain agility, firm performance relationship and mediation role of 4PL skill dimensions.

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.

Signifying the relationship between counterproductive work behavior and firm's performance: the mediating role of organizational culture

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Ibrahim Abdullah ◽  
Dechun Huang ◽  
Muddassar Sarfraz ◽  
Junaid Naseer ◽  
Muhammad Waqas Sadiq
Keyword(s):  
Organizational Culture ◽  
Firm Performance ◽  
Counterproductive Work Behavior ◽  
Business Environment ◽  
Work Behavior ◽  
Equation Modeling ◽  
Content Type ◽  
Mediating Role ◽  
The Relationship

PurposeOrganizations are facing several challenges in the current challenging business environment. The current study explores how counterproductive work behavior (CWB) affects bio-medical companies' firm performance in Pakistan. The study considers the mediating role of organizational culture and its impact on CWB and a firm's performance.Design/methodology/approachData were collected through a self-administered questionnaire. For data collection, 300 questionnaires were distributed among employees working in biomedical companies. Statistical analysis such as descriptive statistics, Pearson moment correlation and structural equation modeling (SEM) techniques was used to analyze the study variable's relationship and its effect on the firm's performance.FindingsThe study results revealed that CWB and organizational culture significantly influence firm performance directly and indirectly. Moreover, organizational culture partially mediates the relationship between CWB and companies' performance.Originality/valueThe current study plays a significant role in the firm's policy directions. There are limited research and information accessible to biomedical firms in Pakistan. Counterproductive job habits wind up becoming something that significantly affects the firm performance. This research adds to human resource management, corporate management and the business strategy literature.

Ties, status, and internationalization of Chinese private firms

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Zhu Zhang ◽  
Jiaqi Xue ◽  
Baoxin Qi
Keyword(s):  
Design Methodology ◽  
Binary Logistic Regression ◽  
Private Firms ◽  
High Status ◽  
Content Type ◽  
Political Ties ◽  
Network Status ◽  
The Relationship ◽  
Business Ties

Purpose This study aims to investigate the role of network in affecting private firms’ internationalization decision. Specifically, it investigates the way that business ties, political ties and status influence an internationalization decision. Design/methodology/approach On the basis of the survey data collected from Chinese private firms, this study distinguishes business ties from political ties and introduces network status. Binary logistic regression is used to test the hypotheses. Findings Results show that private firms that have business ties are more likely to internationalize, whereas private firms that have political ties are less likely to internationalize. High-status private firms are more likely to internationalize. Political ties negatively moderate the relationship between business ties and internationalization. High-status firms with political ties are more likely to internationalize. Originality/value This study provides theoretical and practical contributions. Results complement previous research on social networks in the context of Chinese private firms and have implications for managers who exert effort to internationalize their firms.

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.

Workplace fun and informal learning: the mediating role of motivation to learn, learning opportunities and management support

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Morteza Taheri ◽  
Sharareh Motealleh ◽  
Jalil Younesi
Keyword(s):  
Informal Learning ◽  
Equation Modeling ◽  
Motivation To Learn ◽  
Opportunities To Learn ◽  
Management Support ◽  
Content Type ◽  
Learning Opportunity ◽  
Workplace Fun ◽  
The Relationship

Purpose Past research shows that workplace fun has a positive effect on informal learning, however, the role of individual and organizational mediating variables in this relation has not been studied much. This study aims to examine the role of management support, motivation to learn and learning opportunity in the relationship between workplace fun and informal learning. Design/methodology/approach In this multivariate correlation study, data were collected through questionnaires. In total, 200 employees of the petrochemical industry participated. Partial least squares structural equation modeling was used to analyze the data. Findings The main finding suggests that motivation to learn contributes to informal learning. Fun in the workplace has a positive and significant indirect effect on informal learning by providing a variety of opportunities to learn; the management support in the final model also mediates the relationship between workplace fun and opportunities to learn. Practical implications The results indicate the benefits of creating and maintaining fun in the workplace to improve informal learning. The authors will be better able to advise by providing abundant resources for formal training such as time, learning climate and financial resources, workplace fun can be used as a practical strategy to promote informal learning where the workplace is fun, innovation, creativity and performance improvement occur. Managers should make arrangements to spontaneously motivate employees to learn informally and provide fun and varied opportunities for informal learning. Originality/value In this study, the multiple correlations and the effect of motivation variables, learning opportunity and management support in the relationship between workplace fun and informal learning were studied. Examining how these relationships are and identifying the moderator of this relationship because of individual and environmental differences requires further studies.

From corporate social responsibility activities to financial performance: role of innovation and competitive advantage

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahnoor Zahid ◽  
Hina Naeem ◽  
Iqra Aftab ◽  
Sajawal Ali Mughal
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Competitive Advantage ◽  
Manufacturing Firms ◽  
Equation Modeling ◽  
Content Type ◽  
Corporate Social ◽  
The Relationship

Purpose The purpose of this study is to scrutinize the effect of corporate social responsibility activities (CSRA) of the firm on its financial performance (FP) and analyze the mediating role of innovation and competitive advantage (CA) in the relationship between CSRA and FP in the manufacturing sector of an emerging country, i.e. Pakistan. Design/methodology/approach Data has been collected through an electronic structured questionnaire from 300 middle-level and top-level managers by surveying different manufacturing firms of Gujranwala, Pakistan. The study’s hypotheses have been checked by analyzing the reliability and validity of data and applying confirmatory factor analysis and structural equation modeling through statistical package for the social sciences and analysis of moment structures. Findings Outcomes of this study supported the hypothesized model. It has been found that the CSRA plays a significant positive role in determining the FP of the firm. Furthermore, the CA and innovation have been proved as significant mediators between CSRA and FP. Originality/value The first time examining the intermediation of innovation and CA in the relationship between CSRA and FP is the primary input of this study to the literature. Practically, this study’s findings will help strategy makers of manufacturing firms in emerging countries develop better strategies for implementing CSRA, enhancing innovation, seeking CA and improving FP.

Sign in / Sign up

Export Citation Format

Share Document