Human resources strategy as a catalyst for the success of the competitive strategy: an analysis based on alignment

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Javier Gonzalez-Benito ◽  
Isabel Suárez-González ◽  
Daniel González-Sánchez
Keyword(s):  
Human Resources ◽  
Business Strategy ◽  
Competitive Strategy ◽  
Structural Equation ◽  
Business Performance ◽  
Equation Modeling ◽  
Competitive Strategies ◽  
Content Type ◽  
Quality Differentiation ◽  
Industrial Companies

PurposeCompetitive strategy is one of the key factors traditionally related to performance, but research explaining the mechanisms through which this strategy improves business results is scant. This study aims to shed light on this relationship by analyzing human resource management (HRM) strategy as an essential tool for transforming business strategy into results.Design/methodology/approachFocusing on two generic competitive strategies, the authors establish hypotheses on the need for alignment among four echelons: business strategy, HRM system objectives, HRM system capabilities and business performance. The authors test these hypotheses with structural equation modeling techniques using data provided by 204 industrial companies.FindingsThe results show that to get the most out of a competitive strategy based on quality differentiation, HRM system objectives and capabilities must be focussed on quality. In the same way, a competitive strategy based on innovation differentiation requires HRM system objectives and capabilities focussed on flexibility to achieve the maximum impact on performance. In this second case, alignment is fundamental in low dynamic environments.Originality/valueThis research not only provides additional evidence for the strategic relevance of the human resources (HR) function but also reveals the potential benefits of focusing on objectives and capabilities rather than on practices. Moreover, it shows that the role of HRM objectives and capabilities in the implementation of a competitive strategy can be shaped by factors beyond the company's control, such as environmental dynamism.

scholarly journals Quality ambidexterity, competitive strategies, and financial performance

2017 ◽  
Vol 37 (10) ◽  
pp. 1496-1519 ◽  
Author(s):  
Ahmad Herzallah ◽  
Leopoldo J. Gutierrez-Gutierrez ◽  
Juan Francisco Munoz Rosas
Keyword(s):  
Financial Performance ◽  
Competitive Strategy ◽  
Structural Equation ◽  
West Bank ◽  
Equation Modeling ◽  
Competitive Strategies ◽  
The West ◽  
Content Type ◽  
Study Results ◽  
The Impact

Purpose The purpose of this paper is to examine the relationship between quality ambidexterity (QAMB), competitive strategies (cost leadership, differentiation, and focus), and firm performance in Palestinian industry, and to analyze the combination of quality exploitation (QEI) and quality exploration (QER) (QAMB) associated with the different levels of each competitive strategy. Design/methodology/approach Using data collected through a survey of 205 Palestinian industrial firms, the study conducted structural equation modeling to test the proposed relationships. Additional statistical analyses were applied to the combinations of QEI and QER for each competitive strategy. Findings The results show a positive and significant relationship between QAMB and three competitive strategies, and between competitive strategies and financial performance, focus strategy excepted. Balanced combination with similar levels of QEI and QER is found to be more suitable for higher levels of competitive strategies implementation, whereas an excess of QER over QEI is associated with lower levels of strategies implementation. Research limitations/implications Although Palestine has two regions, the West Bank and the Gaza Strip, all survey respondents were from the West Bank. The data used in this study come from the industrial sector only. Originality/value This study is the first empirical test to examine the impact of QAMB on financial performance through competitive strategies. The study results may help managers to implement QEI and QER practices in order to allocate resources effectively and ultimately improve financial performance.

Can internal strategic alignment influence performance? An empirical research applying structural equation modelling

2018 ◽  
Vol 31 (3) ◽  
pp. 585-604 ◽  
Author(s):  
Vanderli Correia Prieto ◽  
Marly M. de Carvalho
Keyword(s):  
Business Strategy ◽  
Structural Equation ◽  
Business Performance ◽  
Least Squares Method ◽  
Strategic Alignment ◽  
Strategy Implementation ◽  
Equation Modeling ◽  
Content Type ◽  
Successful Execution ◽  
The Impact

Purpose The purpose of this paper is to investigate the impact of internal strategic alignment (ISA) on business performance. A model is developed in which internal alignment is explained by the covariance between vertical and horizontal alignment. The perspective of business strategy implementation is adopted in order to support the theoretical relationship between the variables. Design/methodology/approach The partial least squares method, a structural equation modeling technique, is applied to estimate the model. Findings The results provide empirical validation for the model and confirm the positive relationship between internal alignment and business performance. Practical implications The ISA model is an essential aid for executives when implementing strategies and the validated research instrument can be applied for firms as a diagnosis of internal alignment in the organization. Originality/value The research contributed to meet the need for studies involving strategy implementation, as its formulation has already been emphasized, as well as to the need for models of strategic internal alignment that include activities relevant to the successful execution of the strategy, and to the need for alignment studies based on a holistic perspective.

Exploring loyalty to specialty foods among tourists and residents

2018 ◽  
Vol 120 (5) ◽  
pp. 1120-1131 ◽  
Author(s):  
Dwi Suhartanto ◽  
Brendan T. Chen ◽  
Zurinawati Mohi ◽  
Adila Sosianika
Keyword(s):  
Structural Equation ◽  
Business Performance ◽  
Perceived Quality ◽  
Equation Modeling ◽  
Content Type ◽  
Motivation Factors ◽  
Perception Of Quality ◽  
Retail Managers ◽  
Internal And External Factors ◽  
The Relationship

PurposeThe purpose of this paper is to examine a specialty food loyalty model which includes perceived quality, satisfaction, and motivation, and to assess the model’s applicability in two distinct groups of customers: tourists and residents.Design/methodology/approachData were collected from 455 specialty food customers in Bandung, Indonesia. Variance-based structural equation modeling (partial least squares (PLS)) was used to examine the relationship between the drivers (perceived quality, satisfaction and motivation) and loyalty according to the data presented by tourists and residents.FindingsThis study indicates that the perception of quality is an important factor affecting tourists’ and residents’ satisfaction with, and loyalty to, a product. Furthermore, this study suggests that motivation factors are important for tourists and residents in regard to developing loyalty to specialty foods.Practical implicationsThis study provides a venue for retail managers and producers to improve their business performance by developing specialty foods of high quality. To improve their quality, this research suggests that managers and retailers focus on innovation based on exotic and unique traditional food reflecting the richness of local culture. To ensure their loyalty, customers of specialty foods need to be motivated by internal and external factors.Originality/valueThis study is one of the first to examine the formation of specialty food loyalty in two distinct groups of customers: tourists and residents.

scholarly journals Antecedents and outcomes of supply chain management in Bangladesh

2019 ◽  
Vol 1 (1) ◽  
pp. 68-87 ◽  
Author(s):  
Mohammed Belal Uddin ◽  
Bilkis Akhter
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Business Strategy ◽  
Customer Value ◽  
Structural Equation ◽  
Principal Component ◽  
Equation Modeling ◽  
Competitive Advantages ◽  
Chain Management ◽  
Content Type

PurposeThe purpose of this paper is to investigate the institutional and significant competences that have allowed organizations to employ supply chain management (SCM) practices, the practices of SCM and the benefits of SCM practices for both buyers and suppers.Design/methodology/approachA theoretical model (including hypotheses) has been proposed regarding antecedents, SCM practices and outcomes of SCM. Using purposive sampling method, data were collected from different manufacturing, distributing, wholesaling and retailing organizations. Collected data were analyzed in a principal component analysis and structural equation modeling, including confirmatory factor analysis, and path analysis.FindingsThe empirical results provided supportive evidences in favor of the hypotheses and theoretical arguments except one hypothesis. This study did not a find positive relationship between organizational compatibility and SCM practices. The study found relationships between mutual trust and SCM practices, communication and SCM practices, and cooperation and SCM practices, which were positive and significant. Again, the relationships between SCM practices and competitive advantages, and SCM practices and long-term orientation and growth were also positive and significant.Practical implicationsPractitioners could also use the findings to align SCM with business strategy and gain an insight for better utilization of the available resources and technology to perform better.Originality/valueThis study will provide guidance as to the preconditions that need to be in place in order for a company to implement SCM with its suppliers and customers. It will remind practitioners to stay focused on the ultimate goals of SCM – lower costs, increased customer value and satisfaction, and, ultimately, competitive advantage.

scholarly journals PENGARUH ORIENTASI PEMBELAJARAN, KEMAMPUAN DAN ORIENTASI PASAR TERHADAP STRATEGI BISNIS DAN KINERJA KEUANGAN

2018 ◽  
Vol 13 (4) ◽  
pp. 444-464
Author(s):  
J.E. Sutanto
Keyword(s):  
Financial Performance ◽  
Market Orientation ◽  
Business Strategy ◽  
Structural Equation ◽  
Research Result ◽  
Positive Influence ◽  
Equation Modeling ◽  
Production Capability ◽  
Industrial Companies ◽  
Industrial Company

One indicator of company’s or business’s successfulness in the competition was the company or business must have competitive advantage that allowed the industrial company of foods and beverages yielding the superiority of production result than their competitors in the determining the strategy and financial performance continually. The population of this research was foods and beverages industry especially big and medium industrial company, which have multi-business and multi-products   in the East Java area that consist of 1286 industrial companies of foods and beverages according to the Indonesian Business Field Classification  (KLUI 15) years 2002. The data analysis technique used Structural Equation Modeling = SEM) with computer help used AMOS program 4.0 version. The research result indicated that: (1) teaching orientation has positive influence and significant toward the financial performance, (2) production capability has positive influence and significant toward the financial performance, (3) market orientation has positive influence and significant toward the financial performance , (4) teaching orientation has positive influence and significant toward the business strategy, (5) production capability has positive influence and significant toward the business strategy, (6) market orientation has positive influence and significant toward the business strategy, (7) simultaneously the influence of teaching orientation, production capability and market orientation toward business strategy and financial performance was proper as the created model

scholarly journals Energy conservation culture and energy performance of industrial companies

2021 ◽  
Vol 10 (43) ◽  
pp. 150-157
Author(s):  
Elena Kirikova ◽  
Natalia Kelchevskaya
Keyword(s):  
Energy Efficiency ◽  
Human Resources ◽  
Energy Conservation ◽  
Structural Equation ◽  
Business Models ◽  
Management Practices ◽  
Energy Performance ◽  
Equation Modeling ◽  
Industrial Companies ◽  
Industrial Energy

Recent years have seen sparked interest to business models based on sustainable development, which seek harmonious co-development of human resources, organizational culture, and production systems. This paper analyzes how HR management practices, a culture of energy conservation, and staff’s knowledge regarding energy efficiency affect the ability of Russian industrial companies to reach their targets in energy management. Methods in use involve factor analysis, structural equation modeling (SEM), and the author-developed questionnaire that is designed to measure the effects of internal intellectual factors (human resources, culture, and knowledge) on industrial energy performance. For the first time, this paper presents an SEM-based estimation of HR practices and their effects on industrial energy performance. Empirically, this study is based on the results of surveys that involved managers and technical officers of 14 Russian industrial companies in 2016-2017. Analysis shows that employee training, development of energy efficiency skills, and sharing knowledge on energy conservation issues do contribute to reaching the energy policy targets.

Does entrepreneurs’ improvisational behavior improve firm performance in time of crisis?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Peerayuth Charoensukmongkol
Keyword(s):  
Firm Performance ◽  
Human Resources ◽  
Structural Equation ◽  
Positive Impact ◽  
Small And Medium Enterprises ◽  
Equation Modeling ◽  
Online Questionnaire ◽  
Competitive Intensity ◽  
Content Type ◽  
The Impact

Purpose This paper examines the effect of improvisational behavior of entrepreneurs on firm performance of small and medium enterprises (SMEs) in Thailand during the economic crisis following the COVID-19 pandemic. The study also explores external factors in terms of competitive intensity and internal factors in terms of financial and human resources possessed by firms that could enhance the impact of improvisational behavior on firm performance. Design/methodology/approach A self-administered online questionnaire survey was used to collect the data from the random sample of 312 SMEs in Thailand. Partial least squares structural equation modeling was used to analyze the data. Findings The analysis supports the positive relationship between the improvisational behavior of entrepreneurs and firm performance. Moreover, the moderating effect analysis shows that the positive impact of improvisational behavior on firm performance tends to be stronger for firms that encountered a higher level of competitive intensity and for firms that possessed a higher level of financial and human resources. Originality/value This research extends the knowledge from prior research by confirming some moderating factors that could strengthen the benefit of improvisational behavior during the crisis.

Innovation orientation and its relationship with business performance: moderating role of firm size

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rayees Farooq ◽  
Sandeep Vij ◽  
Jaspreet Kaur
Keyword(s):  
Firm Size ◽  
Structural Equation ◽  
Business Performance ◽  
Equation Modeling ◽  
National Capital Region ◽  
Confirmatory Factor Analyses ◽  
Content Type ◽  
National Capital ◽  
Managerial Level ◽  
The Relationship

Purpose The study aims to test the relationship between innovation orientation (INO) and business performance. It also explores the moderating effect of firm size on the relationship between INO and business performance. Design/methodology/approach A purposive sample of 278 firms (manufacturing and service) was taken from the National Capital Region and the Punjab state of India. The survey questionnaire was administered to two to three managerial-level employees from each of the 278 firms. Exploratory and confirmatory factor analyses were used to validate the INO and business performance scales. The hypotheses were tested using multi-group moderation analysis and structural equation modeling. Findings The study shows that INO has a significant positive effect on business performance. The results have indicated that firm size (based on the number of employees) moderates the relationship between INO and business performance. However, firm size (based on investment) does not moderate the relationship between INO and business performance. Originality/value The study is an attempt to synthesize the fragmented results testing innovation–performance relationship using firm size as a moderator on the relationship between INO and business performance and provides insights for both academicians and practitioners.

Competitive strategies, market orientation types and innovation strategies: finding the strategic fit

2017 ◽  
Vol 13 (3) ◽  
pp. 257-261 ◽  
Author(s):  
Narentheren Kaliappen ◽  
Haim Hilman
Keyword(s):  
Market Orientation ◽  
Business Strategy ◽  
Competitive Strategy ◽  
Innovation Strategy ◽  
Competitive Strategies ◽  
Content Type ◽  
Practical Applications ◽  
Strategic Fit ◽  
The Common ◽  
Innovation Strategies

Purpose The purpose of this paper is to review the strategic fit of competitive strategies, market orientation types and innovation strategies. Design/methodology/approach The paper is prepared by reviewing the relevant literatures on competitive strategies, market orientation types and innovation strategies as well as comparing and contrasting the common characteristics to attain fit. Findings The paper presents the criteria for distinguishing the different types of competitive strategies, market orientations and innovation strategies, along with a framework that fits a particular type of competitive strategy, market orientation and innovation strategy. Practical implications The paper provides an action framework based on characteristics of the competitive strategies (business strategy) along with the benefits of adopting a particular market orientation type and innovation strategy (functional strategies). This will facilitate the managers to execute appropriate competitive strategy that could well align with appropriate market orientation and innovation strategy. Originality/value This brief paper presents an original framework, with significant practical applications in a concise manner. The framework will provide a guide to the hotel top management in shaping and fitting an appropriate competitive strategies, market orientation types and innovation strategies.

Applying an organizational effectiveness approach to measure family business performance

2019 ◽  
Vol 9 (3) ◽  
pp. 349-374 ◽  
Author(s):  
Ralph I. Williams Jr ◽  
Torsten Pieper ◽  
Franz Kellermanns ◽  
Joe Astrachan
Keyword(s):  
Organizational Effectiveness ◽  
Family Business ◽  
Structural Equation ◽  
Business Performance ◽  
Measurement Scale ◽  
Equation Modeling ◽  
Entire Family ◽  
Content Type ◽  
Business Goals ◽  
The Family

Purpose Current approaches to measuring family business performance have limitations: failing to acknowledge the entire family business holistically, and lacking recognition of the idiosyncratic nature of family business goals. By applying organizational effectiveness and the achievement of desired organizational outcomes, the purpose of this paper is to develop a scale to measure performance based on a family business’ idiosyncratic goals. Design/methodology/approach This study applies mixed methods, including qualitative research, two surveys and structural equation modeling. Findings The authors develop a scale employing 21 items, representing six goal dimensions, to measure the family business performance. Originality/value The family business performance measurement scale from this study responds to multiple calls for a scale gauging family business performance in a manner including both financial and non-financial outcomes.

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