THE RELATIONSHIP AMONG STRATEGIC ORIENTATIONS, ORGANIZATIONAL INNOVATIVENESS, AND BUSINESS PERFORMANCE

2018 ◽  
Vol 22 (01) ◽  
pp. 1850009 ◽  
Author(s):  
A. ZAFER ACAR ◽  
MEHTAP ÖZŞAHIN
Keyword(s):  
Firm Performance ◽  
Corporate Culture ◽  
Business Performance ◽  
Traditional Approach ◽  
General Structure ◽  
Strong Relationship ◽  
Business Environment ◽  
Organizational Innovativeness ◽  
Strategic Orientations ◽  
Technology Orientation

Today’s complex and competitive business environment restricts the managers to plan their futures strategically. Thus, strategic orientation approach is taking the place of traditional approach to strategic management by spreading strategic thinking to the employees like a corporate culture. The aims of this study are to explore the mutual relationships among market orientation, technology orientation, and organizational innovativeness, and to examine the joint effects of those key drivers on firm performance, and to advance the understanding of the role of the strategic orientations of the firms. Due to the general structure of the research model, a questionnaire survey on 161 manufacturing firms has been concluded. According to analysed data a strong relationship between strategic orientations and the firm performance is indicated. Foremost, the results show that product innovation can significantly assist a competitor-oriented firm in improving its financial performance, while a technology-oriented firm improving its growth and market performance.

Strategic marketing patterns and performance implications

2016 ◽  
Vol 50 (12) ◽  
pp. 2216-2248 ◽  
Author(s):  
Emir Agic ◽  
Merima Cinjarevic ◽  
Emir Kurtovic ◽  
Muris Cicic
Keyword(s):  
Firm Performance ◽  
Business Performance ◽  
Latent Class ◽  
Performance Outcomes ◽  
Strategic Marketing ◽  
Marketing Capabilities ◽  
Cross Sectional ◽  
Content Type ◽  
Configuration Theory ◽  
Strategic Orientations

Purpose The purpose of this study is to create the taxonomy of firms based on the nature of the relationship between market-based resources and marketing capabilities. Anchored in the configuration theory, the present study aims to explore simultaneous roles of market-based resources, i.e. customer orientation and competitor orientation, and marketing capabilities, i.e. the execution of marketing practices and activities within a firm, on firm performance. Design/methodology/approach A self-administrated questionnaire was used to collect data from chief executive officers or top managers of 220 firms in Bosnia and Herzegovina, a transitional economy in South Eastern Europe. Findings Drawing on a configuration approach via the latent class analysis, the authors empirically derive four distinct strategic marketing patterns, namely, marketing super achievers, marketing-focused virtuosi, marketing drifters and marketing mass pushers. The findings also highlight how business performance outcomes differ as a function of a class membership. Research limitations/implications Cross-sectional research design and focus on a single country are main limitations of the present study. Thus, longitudinal studies in the context of developed and fast-reforming transition economies are advisable for future work. Practical implications This study enhances the knowledge on how a firm can configure or bundle its market-based resources and marketing capabilities to produce desired outcomes. Findings suggest that joint attention to building market-oriented culture and developing marketing capabilities seems to pay off. However, the authors found that a lack of market knowledge can be substituted by the firms’ ability to build effective promotional and branding capabilities. Thus, the present study adds to the emerging dialog on the relative importance of alternative strategic orientations in achieving superior business performance. Originality/value This study contributes to the strategic marketing literature by examining the synergistic effect of market-based resources and marketing capabilities on firm performance using a configurational approach. It also provides support for the equifinality proposition, suggesting that different “bundles” of market-based resources and marketing capabilities can lead to similar level of performance outcomes.

The Effects of Strategic Orientations on Technology- and Market-Based Breakthrough Innovations

2005 ◽  
Vol 69 (2) ◽  
pp. 42-60 ◽  
Author(s):  
Kevin Zheng Zhou ◽  
Chi Kin (Bennett) Yim ◽  
David K. Tse
Keyword(s):  
Firm Performance ◽  
Market Orientation ◽  
Demand Uncertainty ◽  
Emerging Market ◽  
Advanced Technology ◽  
Market Forces ◽  
Competitive Advantages ◽  
Firm Strategies ◽  
Strategic Orientations ◽  
Technology Orientation

Does market orientation impede breakthrough innovation? To date, researchers have presented opposing arguments with respect to this important issue. To address this controversy, the authors conceptualize and empirically test a model that links different types of strategic orientations and market forces, through organizational learning, to breakthrough innovations and firm performance. The results show that a market orientation facilitates innovations that use advanced technology and offer greater benefits to mainstream customers (i.e., technology-based innovations) but inhibits innovations that target emerging market segments (i.e., market-based innovations). A technology orientation is beneficial to technology-based innovations but has no impact on market-based innovations, and an entrepreneurial orientation facilitates both types of breakthroughs. Different market forces (demand uncertainty, technology turbulence, and competitive intensity) exert significant influence on technology- and market-based innovations, and these two types of innovations affect firm performance differently. The results have significant implications for firm strategies to facilitate product innovations and achieve competitive advantages.

scholarly journals Variations in Performances in Chinese Small and Medium Enterprises

2009 ◽  
Author(s):  
Mohamad Hanapi Mohamad ◽  
Ching Ing Sung
Keyword(s):  
Firm Performance ◽  
Business Strategy ◽  
Business Performance ◽  
Small And Medium Enterprises ◽  
Firm Strategy ◽  
Business Environment ◽  
Performance Outcomes ◽  
Chinese Entrepreneurs ◽  
Medium Enterprises ◽  
Multivariate Relationship

Malaysia, like many developing countries, is encouraging local businesses to take greater role in the management of its economy. While incentives and deregulation measures are offered, variations in performances still persist. Researchers have long been interested in explaining the variance in firm performance, as even those firms operating in the same industry and in the same business environment show differences in performance outcomes. Numerous paradigms in the literature have been employed to explain the variance in business performance, including the Classical Industry Organisation, the Revisionist school, the New Industrial Organisation school, the PIMS paradigm, the Austrian school, and the Resource-based school. This paper investigates the combined effects of managerial characteristics of owners/managers and business strategy on the firm performance of Chinese small and medium enterprises (SMEs) in Malaysia. Using multivariate relationship, the results of the study did not show any significant correlation between the managerial characteristics of the owners/managers and firm performance outcomes among the Chinese entrepreneurs. Nevertheless, a significant amount of variance in performance outcomes can be explained by firm strategy. Furthermore, several significant correlations were found between managerial characteristics and business strategy.  

scholarly journals Strategic Agility: Achieving Superior Organizational Performance through Strategic Foresight

2020 ◽  
pp. 7-16
Author(s):  
Arokodare M. A. ◽  
Asikhia O. U.
Keyword(s):  
Firm Performance ◽  
Organizational Performance ◽  
21St Century ◽  
Business Performance ◽  
Business Environment ◽  
Environmental Turbulence ◽  
Superior Performance ◽  
Global Business ◽  
Strategic Foresight ◽  
Strategic Agility

Firms globally encounter challenges of maintaining business superior performance over a long period. Most business organizations managers in today’s modern age, find it difficult to constantly achieve targeted business performance due to poor strategic insight and agility to manage uncertainty business environment and globalization in the 21st century. The majority of firms in the 21st century have recorded a fast decline in financial and non- financial performance resulting from a poor understanding of strategic agility dimensions to tackle global business trends and environmental turbulence. Theoretically, the study was conducted to investigate the link between strategic agility and firm performance through strategic foresight as part of antecedent of strategic foresight. The Dynamic Capability and Entrepreneurship Innovation theories were the underpinning theories for the study. Thus a conceptual model was developed to depict the interaction between strategic agility and firm performance through strategic foresight. Majority of past literature shown that strategic agility and strategic foresight have significantly enhanced firm superior performance.

scholarly journals Linking Business Environment Reform with Gender and Inclusion: A Study of Business Licensing Reform in Indonesia

2021 ◽  
Author(s):  
Amrita Saha ◽  
Jodie Thorpe ◽  
Keir Macdonald ◽  
Kelbesa Megersa
Keyword(s):  
Firm Performance ◽  
Business Performance ◽  
Large Scale ◽  
Business Environment ◽  
Performance Outcomes ◽  
Sociocultural Factors ◽  
Detailed Knowledge ◽  
Depth Analysis ◽  
Business Regulations ◽  
The Impact

Business environment reform (BER) targets inadequate business regulations. It is intended to remove constraints to business investment, enabling growth and job creation, and create opportunities for international business to contribute to and benefit from this growth. However, there is a lack of detailed knowledge of the impact of BER on gender and inclusion (G&I). While a review of existing literature suggests that in general, there is no direct link between BER and G&I, indirect links are likely through the influence of BER on firm performance. Outcomes will be influenced by the differential ways in which women-led firms experience the business environment when compared to their male counterparts, with disparities based on how they are treated under the law, as well as structural and sociocultural factors. The fact that in many countries, female-led firms are fewer and smaller than those of their male counterparts, and may operate in different sectors, also affects these dynamics. This research offers new insights through an in-depth analysis of the impact of the Pelayanan Terpadu Satu Pintu (PTSP) or one-stop shop business licensing reform in 2009 on firm performance in Indonesia, and how these impacts vary based on the gender of firm leadership. The results find that on average, firms benefited from improved business performance (sales), as a direct or indirect effect of this reform, as well as an increase in the number of medium and large-scale firms. Outside Jakarta (Bali, Banten, Lampung), women-led firms experienced a small but significant benefit relative to male-led firms, related to both sales and the number of medium and large-scale firms they run. In Jakarta, women-led firms continued to lag behind men and there were no significant effects on employment, and this held across province and gender. These findings are based on an analysis of the PTSP reform using data from the World Bank Enterprise Survey (WBES), a survey of small, medium and large firms (i.e. with more than four employees) which took place in Indonesia between 2009 and 2015.

scholarly journals Environmental Turbulence Capability Sparks Firm Performance by Embracing Business Model Transformation: An Empirical Study on the Internet Industry in Indonesia

2021 ◽  
Vol 7 (2) ◽  
pp. 139-144
Author(s):  
Librita Arifiani ◽  
Harjanto Prabowo ◽  
Asnan Furinto ◽  
Wibowo Kosasih
Keyword(s):  
Firm Performance ◽  
Business Model ◽  
Model Transformation ◽  
Business Performance ◽  
Business Environment ◽  
Environmental Turbulence ◽  
Research Approach ◽  
Internet Service ◽  
Business Transformation ◽  
The Relationship

This study assesses solutions to several questions regarding the effect of Environmental Turbulence on Firm Performance directly and indirectly through Business Model Transformation on Internet Service Provider Companies in Indonesia. The research approach used is an explanatory survey, verification research with a quantitative approach by measuring a sample of variables built on the population's constructs representing 239 companies. The author finds that novelty B.M. transformation design is significantly related to what factors drive the business transformation. Although, this study also finds that BMT positively mediates the relationship between environmental turbulence to influence performance. Environmental turbulence alone is no longer adequate, and organizations need to revamp the B.M. to achieve firm performance. This study also contributed to the movement of research trends targeted at B.M. Transformation. This study provides an appropriate riposte for quantitative empirical studies that elucidate the correlation between BMT on company performance by simultaneously embracing and managing environmental turbulence. The relationship between BMT and the factors that support it will be higher comprehend when contextualized. The author locates different designs and impacts of BMT on business transformation results that culminate in firm business performance since it faces an uncertain business environment that grows dynamically. Although this novelty is important, the authors found no support for effectiveness. However, this study highlights the robustness of the important factors that drive BMT to work effectively to improve business performance.

The Optimal Diversification Strategy in Pharmaceutical Industry: Balance-centred or Hetero-centred?

2021 ◽  
pp. 097172182110056
Author(s):  
Keungoui Kim ◽  
Junseok Hwang ◽  
Sungdo Jung ◽  
Eungdo Kim
Keyword(s):  
Business Performance ◽  
Business Environment ◽  
Product Diversification ◽  
Diversification Strategy ◽  
Firm Level ◽  
Data Set ◽  
Pharmaceutical Firms ◽  
Level Data ◽  
Market Product ◽  
High Uncertainty

Due to high uncertainty of product development and business environment, firm-level diversification has been regarded as one of the most effective methods in pharmaceutical firms. In previous study, firm-level diversification was discussed by different value chains of market, product, and technology. However, in most cases, the diversification itself was adopted in a simple manner although its property contains different aspects and the results varies depending on the diversity property of selected index. In addition, the existing approach for measuring firm’s product/market diversification using sales information distinguished by standard industry classification cannot provide direct implication as different strategies are made for market and product diversification. Therefore, this study examines the effects of firm-level diversification on business and innovation performances in pharmaceutical firms by considering (1) three diversification types: market, product, and technology, (2) clear separation between market and product diversification, and (3) two diversification perspectives: balance-centred and hetero-centred. For empirical analysis, an integrated firm-level data set combining from Medtrack, Orange Book, Compustat and Total Patent database is used. From the result, in case of market diversification, less market heterogeneity causes significant influence on business performance. For product and technology, a concentrated and greater heterogeneity of product diversification are turned out to promote business performance, while the more intensive and heterogeneous technology diversification has been shown to improve innovation performance.

Strategic orientations, firm performance and the moderating effect of absorptive capacity

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Manuel-Alejandro Ibarra-Cisneros ◽  
María del Rosario Demuner-Flores ◽  
Felipe Hernández-Perlines
Keyword(s):  
Firm Performance ◽  
Market Orientation ◽  
Absorptive Capacity ◽  
Entrepreneurial Orientation ◽  
Manufacturing Firms ◽  
Moderating Effect ◽  
Equation Modeling ◽  
Content Type ◽  
Strategic Orientations ◽  
The Relationship

PurposeThe purpose of this article is to study the moderating effect of absorptive capacity, defined as the set of organizational routines and processes through which companies acquire, assimilate, transform and exploit knowledge to produce a dynamic organizational capacity (Zahra and George, 2002), in three strategic orientations: market orientation; technology orientation and entrepreneurial orientation and their positive relationship in the performance of the medium and large Mexican manufacturing firms. Likewise, it is determined whether these three combined SOs influence firm performance.Design/methodology/approachThe data was collected from 171 medium and large-sized Mexican manufacturing firms. The proposed hypotheses are tested using partial least square structural equation modeling (PLS-SEM).FindingsDespite the importance of knowledge for the development of firms, the results indicate that the moderating effect of absorptive capacity is only present in the relationship between entrepreneurial orientation and firm performance. That is, firms cannot take advantage of knowledge simultaneously between the three strategic orientations. For their part, market orientation and entrepreneurial orientation exert a positive influence on firm performance.Practical implicationsThe main practical implication for the manufacturing industry is that they must develop mechanisms to detect what kind of knowledge affects each strategic orientation, in this way it can make the absorptive capacity influence the relationships between SO and FP.Originality/valueThe main contribution consists of studying the moderating effect of the absorptive capacity on the relationship between three strategic orientations and firm performance, and not concentrating solely on the simultaneous use of these strategies as is commonly done.

The moderating role of competitive strategy in relating firm performance to quality management and government support

2010 ◽  
Vol 10 (1) ◽  
pp. 59-76 ◽  
Author(s):  
Jiqin Han ◽  
S.W.F. (Onno) Omta ◽  
Jacques Trienekens ◽  
Ron Kemp
Keyword(s):  
Firm Performance ◽  
Quality Management ◽  
Competitive Strategy ◽  
Process Management ◽  
Management Practices ◽  
Business Environment ◽  
Government Support ◽  
Supplier Quality Management ◽  
Quality Design

One of the main concerns in companies is quality management and its relationship to firm performance. Recently a growing interest in research is the important role of the business environment in the competitive strategy choices of companies. By proposing a conceptual framework for a general model that explains the quality management practices-firm performance link and the business environment-firm performance link, we test the moderating role of competitive strategy in the two links empirically. A survey was conducted of 229 pork-processing firms in the emerging economy of China. We find that specific quality management practices contributing to higher performance include in-company quality management, supplier quality management, employee involvement in quality management and process management, while quality design and customer quality management are not included. Findings also indicate that the business environment (government support in our research) has a positive relationship to firm performance. Competitive strategy only strengthens the relationship between firm performance and quality design, process management, supplier quality management and customer quality management.

Strategic orientations, knowledge management (KM) and business performance

Kybernetes ◽  
2019 ◽  
Vol 48 (9) ◽  
pp. 1942-1964 ◽  
Author(s):  
Mona Jami Pour ◽  
Mohammad Asarian
Keyword(s):  
Cluster Analysis ◽  
Knowledge Management ◽  
Business Performance ◽  
High Performance ◽  
Strategic Orientation ◽  
Content Type ◽  
Strategic Orientations ◽  
Strategy Performance ◽  
High Level ◽  
The Relationship

Purpose Despite the huge amount of studies that have investigated the strategy–performance relationships and knowledge management (KM)–performance relationships, there is little consensus regarding the nature of these connections. By reviewing related literature, some notable limitations and inconsistent results are highlighted in extant studies. To address these challenges, this study aims to explore the effects of strategic orientation and KM mechanisms on business performance. Design/methodology/approach The study conducted an empirical investigation of 227 small- and medium-sized enterprises (SMEs) to explore the relationship between strategy−performance and KM−performance. Business strategy is conceptualized as a comparative construct with six dimensions, KM is conceptualized by two types of KM mechanisms of technical and non-technical KM mechanisms and business performance is measured by four dimensions of balanced scorecard (BSC). The cluster analysis was used to explore different aspects of these three constructs. Findings Using cluster analysis, the results indicate that firms with high level of analysis, defensiveness, futurity and proactiveness in strategic orientation have better performance and also the high level of both KM mechanisms another important finding shows that firms with more KM mechanisms have high performance and technical mechanisms have more predictor role on performance. Practical implications This research also has prescriptive implications for strategic managers and KM practitioners. The finding enhanced the understanding of the relationship between strategic orientations, KM and performance. The results assist managers to assess business performance regarding strategic orientations and KM mechanisms of the firms. Therefore, it helps firms to improve strategic resource allocation and exploit KM investment by considering ideal pattern of the performance. Originality/value By reviewing strategic management and KM literature, it is revealed that there are little studies about how the interaction of strategic orientation and KM influences business performance. The main contribution of the study is exploring the profile of the firms by considering their strategic orientation and KM mechanisms and their impact on business performance. This study provides an empirical evidence about interaction of strategic orientations, KM mechanisms and business performance in SME context, which is merely investigated in previous researches.

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