Impact of customer-oriented strategy on financial performance with mediating role of HRM and innovation capability

2019 ◽  
Vol 48 (3) ◽  
pp. 631-643 ◽  
Author(s):  
Naveed Iqbal Chaudhry ◽  
Iqra Aftab ◽  
Zainab Arif ◽  
Usman Tariq ◽  
Muhammad Azam Roomi
Keyword(s):  
Financial Performance ◽  
Structural Equation ◽  
Manufacturing Sector ◽  
Manufacturing Firms ◽  
Organizational Capabilities ◽  
Equation Modeling ◽  
Innovation Capability ◽  
Content Type ◽  
Mediating Role

Purpose The purpose of this paper is to explain the relationship between customer-oriented strategy (COS) and financial performance (FP) of firm, to examine the role of supportive human resource management (HRM) in COS implementation and contribution toward FP of firm. It also examines the mediating role of innovation capability (IC) between COS and FP of firm. Design/methodology/approach The approach used for this study is quantitative. Data required for testing of hypothesis were gathered from the managers of manufacturing firms of Gujranwala, Pakistan. To conduct the data analysis, structural equation modeling was used. Findings Findings of this study showed that there is significantly positive relation between COS and FP with the significant positive mediating effects of supportive HRM and IC. Research limitations/implications This research has been conducted in manufacturing sector only. So, it is suggested to future researchers to carry out this research in other sectors. Second, this research focused only on IC but there are many other organizational capabilities (OC) that can be used. Practical implications This research would be helpful for all firms adopting COS to understand that how to mobilize their HR to accomplish the purpose of strategy. It will enable manufacturing firms to understand and work on IC. Originality/value This study is anticipated to add value to the existing literature of strategy process and OC. This study is one of the first to examine IC as mediator between COS and organizational FP so it opens new areas for research.

Antecedents of organizational citizenship behavior towards the environment in manufacturing organizations: using a structural equation modeling approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Noor Ullah Khan ◽  
Ateeq-ur- Rehman Irshad ◽  
Roselina Ahmad Saufi ◽  
Adeel Ahmed
Keyword(s):  
Organizational Citizenship Behavior ◽  
Structural Equation ◽  
Manufacturing Sector ◽  
Manufacturing Firms ◽  
Citizenship Behavior ◽  
Equation Modeling ◽  
Content Type ◽  
Mediating Role ◽  
The Impact

PurposeOrganizations worldwide are integrating sustainability into their operations to reduce the damage they do to the environment and to earn a better reputation in society. Scholars have acknowledged the role of environmental transformational leadership (ETL) in creating pro-environmental behaviors (PEBs). The manufacturing sector has shown interest in accepting an environmental management system (EMS) and fostering a mechanism for what is called perceived support organizational support for the environment (POSE). Voluntary PEBs taking the form of organizational citizenship behavior toward the environment (OCBE) increasingly interests researchers because it is important for the success of the EMS in the manufacturing sector. This study aims to investigate the mediating role of the EMS and POSE in the relationship between ETL and OCBE within ISO14001-certified Malaysian manufacturing firms.Design/methodology/approachA quantitative design was used based on a positivist approach. The data of 216 manufacturing firms were targeted using random probability sampling via a survey questionnaire. Later, the data were analyzed through the structural equation modeling (SEM) method using the SmartPLS 3.3.3 software.FindingsResearch findings confirmed a significant direct positive relationship between ETL and OCBE. Also, they confirmed the mediating role of the EMS and POSE in the relationship between ETL and OCBE among ISO14001-certified Malaysian manufacturing firms.Research limitations/implicationsThis research has vital ramifications for both managers and organizations. Manufacturing firms should modify the traditional OCB towards pro-environmental OCBE using key antecedents, e.g. ETL, EMS and POSE.Originality/valueThe study analyzed the impact of ETL on OCBE through the mediating role of PSOE and the EMS. Here the focus is on the impact of OCBE key antecedents, i.e. ETL, EMS and POSE in predicting OCBE among ISO14001-certified Malaysian manufacturing firms.

Linking ethical leadership to administrative innovation in Ethiopian banks: the mediating role of knowledge process capabilities

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Gedif Tessema Sinshaw ◽  
Atul Shiva ◽  
Manjit Singh
Keyword(s):  
Ethical Leadership ◽  
Structural Equation ◽  
Banking Sector ◽  
Organizational Capabilities ◽  
Equation Modeling ◽  
Mediation Model ◽  
Knowledge Process ◽  
Content Type ◽  
Mediating Role

PurposeThis paper aims to examine the mediating role of knowledge process capability (KPC) between ethical leadership (EL) and administrative innovation (AI) in the banking sector of Ethiopia.Design/methodology/approachThe study was conducted by a standardized questionnaire survey to collect the data from 266 employees of Commercial Bank of Ethiopia in 93 branches. The study employed structural equation modeling approach with Analyzing Moment of Structures 23.0 to test the hypothesized mediation model.FindingsThe results of this investigation disclose that EL has a significant and direct effect on AI and KPC. KPC also influences AI significantly.Originality/valueThe study revealed that KPC plays a partial mediating role in linking EL to AI, which is a new contribution to the existing literature of EL. This dimension can provide new dimensions to design organizational leadership which is based on sustainability paradigm. This can strengthen the organizational capabilities aiming to increasing innovative behaviors in order to have a deep-seated strategy.

How transformational leadership facilitates radical and incremental innovation: the mediating role of individual psychological capital

2020 ◽  
Vol 12 (3/4) ◽  
pp. 205-222
Author(s):  
Phong Ba Le
Keyword(s):  
Transformational Leadership ◽  
Structural Equation ◽  
Psychological Capital ◽  
Incremental Innovation ◽  
Equation Modeling ◽  
Service Firms ◽  
Innovation Capability ◽  
Content Type ◽  
Mediating Role

PurposeGiven the important role of innovation capability in helping firms to innovate and adapt to a fast-paced and unpredictable environment, the purpose of this study is to investigate and deepen knowledge of how transformational leadership affects radical and incremental innovation via the mediating role of positive psychological capital.Design/methodology/approachThe paper used structural equation modeling and cross-sectional design to test proposal hypotheses based on the empirical data collected from 379 participants in 89 manufacturing and service firms.FindingsThe results of this study revealed the positive and significant influence of transformational leadership on radical and incremental innovation. The findings highlighted the mediating role of individual psychological capital in the relationship between transformational leadership and aspects of innovation capability.Practical implicationsOrganizations should invest and stress on practicing transformational leadership style for their managers/directors to foster and enhance individual psychological capital and innovation capabilities.Originality/valueThe paper has extended theory of innovation management by discussing and highlighting the important role of transformational leadership and psychological capital in fostering specific aspects of innovation namely radical and incremental innovation.

How transformational leadership facilitates innovation capability: the mediating role of employees' psychological capital

2020 ◽  
Vol 41 (4) ◽  
pp. 481-499 ◽  
Author(s):  
Hui Lei ◽  
Lathong Leaungkhamma ◽  
Phong Ba Le
Keyword(s):  
Transformational Leadership ◽  
Self Efficacy ◽  
Structural Equation ◽  
Psychological Capital ◽  
Working Environment ◽  
Equation Modeling ◽  
Innovation Capability ◽  
Content Type ◽  
Mediating Role

PurposeThis paper aims to investigate the effects of transformational leadership on individuals and organization’s innovation capability via the mediating role of employees' positive psychological capital (Psy-Cap) namely self-efficacy and optimism.Design/methodology/approachStructural equation modeling (SEM) is used to test proposal hypotheses through the empirical data collected from 330 participants at 90 firms in Vietnam.FindingsThe research findings revealed that self-efficacy and optimism significantly mediate the relationship between transformational leadership and innovation capabilities. In addition, self-efficacy has a greater impact on innovation capabilities compared with the effect of optimism.Practical implicationsThe findings highlight the important role of practicing transformational leadership style to nurture and foster both employees' positive psychology sources and firms' innovation capability.Originality/valueThe paper has significantly advanced and deepened our understanding of how transformational leaders connect with employees to nurture and develop one of the most special aspects of human resource in contemporary working environment called employees' positive Psy-Cap for stimulating firm's innovation capabilities.

A strategy tripod perspective on merger effectiveness in the higher education industry: the mediating role of future foresight

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Zahraa Sameer Sajwani ◽  
Joe Hazzam ◽  
Abdelmounaim Lahrech ◽  
Muna Alnuaimi
Keyword(s):  
Higher Education ◽  
Structural Equation ◽  
Government Support ◽  
Equation Modeling ◽  
Survey Method ◽  
Content Type ◽  
Mediating Role ◽  
Education Industry ◽  
Higher Education Industry

PurposeThe purpose of the study is to investigate the role of the strategy tripod premises, mediated by future foresight and its effect on merger effectiveness in the higher education industry.Design/methodology/approachA quantitative survey method was implemented, with the data provided by senior managers of 14 universities that went through a merger from the years 2013–2016. The proposed model was tested using partial least squares (PLS) of structural equation modeling (SEM).FindingsThe results indicate that government support, competitive intensity and knowledge creation capability relate positivity to merger effectiveness, and these relationships are mediated by future foresight competence.Originality/valueThe study provides a better understanding of merger effectiveness in the higher education industry by identifying the role of future foresight competence in the application of strategy tripod and its contribution on merger effectiveness. Results indicate that future foresight competence contributes to the merger effectiveness and enables the effective implementation of the strategy tripod dimensions in higher education mergers.

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.

Toward a Smart Organization, Integrating KM Processes and Organizational Capabilities

2022 ◽  
Vol 14 (1) ◽  
pp. 0-0
Keyword(s):  
Structural Equation ◽  
Common Knowledge ◽  
Organizational Capabilities ◽  
Equation Modeling ◽  
Direct Impact ◽  
Suggested Model ◽  
Mediating Role ◽  
The Impact ◽  
Telecommunications Companies

It is common knowledge that organizations today face the challenges of growing competition. Therefore, organizations need to develop smarter to plan for several diverse and real-time challenges. The aim of this paper is to test the impact of knowledge management (KM) processes, organizational capabilities (OC), and mediating KM mechanisms and KM technologies toward a smart organization (SO). In this paper, structural equation modeling was applied by using Smart PLS 3.3.3 software to test hypotheses and the accuracy of the suggested model. The results showed a direct impact between all constructs and are a reflection of the SO of the employees (N=225) working in three Jordanian telecommunications companies. Additionally, the outcomes provision the partial mediating role of KM mechanisms and KM technology with OC in the SO. These outcomes can support leaders in generating a consciousness in addition to favorable OC, KM mechanisms, and KM technologies inside the organization, which enables the actual implementation of SO and uses the outcomes to plan their SO strategies.

Organizational structure and innovation performance

2017 ◽  
Vol 22 (4) ◽  
pp. 334-350 ◽  
Author(s):  
Alisher Tohirovich Dedahanov ◽  
Changjoon Rhee ◽  
Junghyun Yoon
Keyword(s):  
Organizational Structure ◽  
Structural Equation ◽  
Organizational Innovation ◽  
Innovation Performance ◽  
Equation Modeling ◽  
Innovative Behavior ◽  
Content Type ◽  
Mediating Role ◽  
The Republic

Purpose The purpose of this paper is to investigate the mediating role of innovative behavior on the relationships between organizational structure, such as centralization, formalization, integration, and organizational innovation performance. Design/methodology/approach The authors collected data from 140 functional managers of manufacturing organizations in the Republic of Korea. The authors used structural equation modeling procedure to evaluate the validity of proposed hypotheses. Findings The results suggest that innovative behavior mediates the links among centralization, formalization, and organizational innovation performance. However, the findings indicate that innovative behavior does not mediate the relationship between integration and organizational innovation performance. Originality/value This work is the first to examine the mediating role of innovative behavior on the associations among centralization, integration, and organizational innovation performance.

School principals’ systems thinking: antecedents and consequences

2019 ◽  
Vol 57 (2) ◽  
pp. 167-184 ◽  
Author(s):  
Pascale Benoliel ◽  
Haim Shaked ◽  
Nechama Nadav ◽  
Chen Schechter
Keyword(s):  
Job Satisfaction ◽  
Organizational Commitment ◽  
Systems Thinking ◽  
Structural Equation ◽  
Equation Modeling ◽  
Content Type ◽  
Mediating Role ◽  
Leadership Framework ◽  
Antecedents And Consequences

PurposeToday’s educational complexities require principals to adopt a more systemic perspective toward school management. Although research has emphasized the benefits associated with the holistic perspective of systems thinking, research in the educational field has been limited. The purpose of this paper is to investigate the mediating role of principals’ systems thinking (PST) in the relationships between instructional leadership (IL) and subject coordinators’ organizational commitment and job satisfaction.Design/methodology/approachData were collected by surveying a sample of 226 subject coordinators from different elementary schools randomly chosen in Israel. Subject coordinators completed questionnaires on their PST competencies, their principals’ IL, job satisfaction and organizational commitment. Structural equation modeling was used to test the research hypotheses.FindingsThe results confirmed the main hypotheses: PST did facilitate subject coordinators’ organizational commitment and job satisfaction. Findings also showed that PST mediated the relationship between IL and subject coordinators’ organizational commitment and job satisfaction.Originality/valueBy integrating research from both educational and non-educational literature, this study contributes to deepen our understanding regarding the antecedents and consequences of the PST as perceived by their subject coordinators, providing a broader leadership framework on their functions in today’s complex school systems.

Influence of transformational leadership and knowledge management on radical and incremental innovation: the moderating role of collaborative culture

Kybernetes ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tu Ngoc Nguyen ◽  
Chao Hong Shen ◽  
Phong Ba Le
Keyword(s):  
Transformational Leadership ◽  
Knowledge Management ◽  
Incremental Innovation ◽  
Equation Modeling ◽  
Collaborative Culture ◽  
Innovation Capability ◽  
Content Type ◽  
Mediating Role ◽  
Positive Effects

PurposeThe purpose of this study is to explore the influence of transformational leadership (TL) on a firm's radical and incremental innovation. It also deepens the understanding of appropriate mechanisms and conditions to improve specific aspects of innovation by examining the mediating role of knowledge management capability (KMC) and moderating mechanism of collaborative culture.Design/methodology/approachThis study utilized structural equation modeling (SEM) and cross-sectional design to test hypotheses in the proposed research model using survey data collected from 365 participants in 86 manufacturing and service firms.FindingsThe findings indicate that TL induces greater effect on radical innovation compared to its effect on incremental innovation. The mediating role of KMC between TL and aspects of innovation capability is also supported. Especially, the influences of KMC on specific aspects of innovation capability are different and depend on the degree of collaborative culture in an organization.Research limitations/implicationsFuture research should examine the mediating mechanisms of knowledge acquisition, knowledge sharing and knowledge application to provide deeper insight into specific roles of knowledge management's constituents in linking TL and innovation capability.Practical implicationsThe paper significantly contributes to increasing the understanding of the link between TL and specific aspects of innovation capability by highlighting the important role of KMC and positive effects of collaborative climate in an organization.Originality/valueThe paper is unique in the attempts to provide a prospective solution for firms to pursue and improve innovation based on the meaningful insights into the mediating role of KMC and moderating effect of collaborative culture in the relationship between TL and specific dimensions of innovation capability.

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