STRATEGIC FLEXIBILITY AND PERFORMANCE: EFFECTS OF POTENTIAL AND REALISED ABSORPTIVE CAPACITY

Author(s):  
RADOSLAW NOWAK

This study focuses on the relationship between strategic flexibility and absorptive capacity — past literature recognised the two constructs as critical in the context of a firm’s responsiveness to imminent exogenous changes. Consequently, the objective of this paper is to put forward a set of new hypotheses that empirically test the effects of two dimensions of absorptive capacity, potential and realised absorptive capacity, on strategic flexibility in the context of business performance. In this way, the study aims to contribute to past research on strategy and innovation management by explaining when strategic flexibility could lead to better performance.

2018 ◽  
Vol 13 (Number 2) ◽  
pp. 1-11
Author(s):  
Muhammad Zulqarnain Arshad ◽  
Darwina Arshad

The small and medium-sized enterprises (SMEs) play a crucial part in county’s economic growth and a key contributor in country’s GDP. In Pakistan SMEs hold about 90 percent of the total businesses. The performance of SMEs depends upon many factors. The main aim for the research is to examine the relationship between Innovation Capability, Absorptive Capacity and Performance of SMEs in Pakistan. This conceptual paper also extends to the vague revelation on Business Strategy in which act as a moderator between Innovation Capability, Absorptive Capacity and SMEs Performance. Conclusively, this study proposes a new research directions and hypotheses development to examine the relationship among the variables in Pakistan’s SMEs context.


2015 ◽  
Vol 19 (06) ◽  
pp. 1540009 ◽  
Author(s):  
SARAH MAHDJOUR

What do growth-oriented business models look like? While several economic theories, such as the theory of the firm, are based on the assumption that firms aim to maximise their profits, past research has shown that growth intention is heterogeneous among firms and that many business owners prefer to keep their firm at a size that they can manage with few resources. This paper explores the relationship of growth intention and business models, based on a sample of 135 German ICT businesses. Following an exploratory approach, Mann–Whitney U tests are applied to analyse how different business model designs correspond with different levels of growth intention. The results indicate that growth intention relates to business owners’ decisions regarding the provision of consulting services, the level of standardisation in offered products and services, the choice of addressed markets, the implementation of competitive strategies based on cost efficiency and of revenue streams based on one-time- and performance-based payments. Furthermore, the results show that growth oriented firms are no more likely than non-growth oriented firms to adapt their business models dynamically to changed internal or external conditions.


2015 ◽  
Vol 27 (5) ◽  
pp. 714-738 ◽  
Author(s):  
Jorge Pereira-Moliner ◽  
Xavier Font ◽  
Juan José Tarí ◽  
Jose F. Molina-Azorin ◽  
Maria D. Lopez-Gamero ◽  
...  

Purpose – This paper aims to analyse the influence of environmental proactivity on cost and differentiation competitive advantages, and to explore the double relationship between environmental proactivity and business performance. Design/methodology/approach – The population consists of all three- to five-star hotels in Spain. A sample of 350 hotels was classified according to environmental proactivity and performance levels, employing a two-step cluster analysis. Significant differences between groups were examined. Findings – The results show two types of environmental behaviour (reactive and proactive), with proactive hotels developing significantly better on both cost and differentiation competitive advantage and achieving significantly higher performance levels. Hotels which achieve above average business performance levels are significantly more environmentally proactive. Research limitations/implications – The present paper demonstrates that environmental management is related to competitive advantages and business performance. Environmental management systems are more developed in higher category, chain-affiliated and larger hotels. This could be due to having more resources to develop their environmental capability. The environmental proactivity scale employed in this study is presented as a reference measure for hotel managers to benchmark their current practices and implement environmental improvements. Originality/value – First, measuring environmental proactivity using four managerial systems (operative, information, strategic and technical) is innovative and provides a more detailed approach to measuring environmental proactivity. Second, demonstrating a double association between environmental proactivity and performance provides fresh insights into the relationship between these variables.


2019 ◽  
Vol 37 (5) ◽  
pp. 732-754 ◽  
Author(s):  
Saumyaranjan Sahoo

Purpose Modern manufacturing systems require tools and techniques that take cognizance of the social (concerning people and relations) as well as the technical environment. The purpose of this paper is to explore the relationship between the social and technical aspects of lean manufacturing practices and their effects on business performance outcomes. Design/methodology/approach The hypothesized relationships for this study are tested with data collected from 148 Indian manufacturing firms by using SPSS and AMOS statistical software. Findings The analysis of the study was conducted using structural equation modeling (SEM) technique, which indicated that both “soft” and “hard” lean practices are positively related to business performance parameters. The findings also demonstrated that “hard” lean practices fully mediate the relationship between “soft” lean practices and business performance parameters. Research limitations/implications There are some limitations of this study. Although a cross-sectional survey has been applied, the research does not permit us to account for the lag between implementation and performance. It also brings the opinion of a limited number of Indian experts about lean manufacturing systems; hence, the sample size could be increased and the nationality of the respondent could be expanded for future research. Practical implications The paper would be of interest to Lean practitioners, and the results of this study can be used in organizations to put a focus on social-cultural changes while applying lean technical tools when it comes to practices as well as importance. Originality/value This paper extends theoretical contribution in production and operations management literature, highlighting how social and technical practices have to interact to enable a successful lean manufacturing implementation.


2019 ◽  
Vol 34 (7) ◽  
pp. 1248-1248
Author(s):  
S Del Corral Winder ◽  
A J Cook ◽  
M Poulakis

Abstract Objective This poster will focus on findings pertaining to the relationship between bilingualism and Attention Deficit/Hyperactivity Disorder (ADHD), a gap that currently exists in cultural neuropsychology. This poster will introduce the literature regarding bilingualism and the development of individuals’ executive functioning throughout their lifespan. Bilingual individuals often have enhanced executive functioning. This review will provide a foundation for the present study. Then, we will compare racial and ethnic differences in ADHD diagnosis and treatment. ADHD diagnoses tend to be higher for White children than for Hispanics raised in a non-English household. These findings suggest that bilingualism may affect the diagnosis and the expression of ADHD. Participants and Method This poster will consider the acquisition of executive control skills and language. Since ADHD and language develop before adolescence, this poster will focus on individuals between the ages of 3 and 12. This will allow us to better understand how language acquisition and the factors that surround language affect the expression of ADHD. Results The poster will present results from the literature review to better understand the results of bilingualism on ADHD. Bilinguals tend to outperform monolinguals in tasks related to reasoning and problem solving. However, bilinguals tend to struggle in tasks related to vocabulary retrieval. This is key because individuals with ADHD tend to perform worse on tasks related to executive functioning. The poster will display different methods used in past research in order to expand future implications. Conclusions ADHD appears to interrupt some skills that bilingual individuals possess. This interference may affect ADHD symptom expression and performance on neuropsychological testing. This may lead to misdiagnoses and a resulting lag in the provision of effective treatments for bilingual children. Thus, this poster will propose alternatives and implications for practice.


Author(s):  
Di Cai ◽  
Taiwen Feng ◽  
Zhenglin Zhang

Previous studies are inconsistent in their findings about the relationship between external involvement and performance. The authors attribute this inconsistency to the misfit between external involvement and business environment. Drawing the concept of fit between information processing capabilities and needs from information processing theory, they develop the fitting patterns between external involvement and business environment and examine their impacts on performance. Information processing capabilities are measured by the degree of two types of external involvement in the NPD process and information processing needs are assessed based on three dimensions of business environment. Cluster analysis was used to develop the taxonomies of fit between external involvement and business environment. Analysis of variance (ANOVA) was used to examine the impacts of fitting patterns between external involvement and business environment on performance. The results reveal six fitting patterns between external involvement and business environment. ANOVA results show that the fitting patterns between external involvement and business environment are related to both operational performance and business performance, supporting our fit theory.


2019 ◽  
Vol 21 (1) ◽  
pp. 23-39 ◽  
Author(s):  
Syed Saad Ahmed ◽  
Jia Guozhu ◽  
Shujaat Mubarik ◽  
Mumtaz Khan ◽  
Essa Khan

Purpose The purpose of this paper is to empirically examine the mediating role of potential and realized absorptive capacity in intellectual capital (IC) and business performance. It also investigates the direct impact of the components of IC on business performance. Design/methodology/approach Partial least square-structural equation modeling (PLS-SEM) was used to assess the effect of IC dimensions on performance and to analyze the mediating role of absorptive capacity in this relationship. Data were collected from 192 managers using a survey questionnaire with Likert scale items. Findings The findings of the study show that potential absorptive capacity does not intervene in the relationship between the components of IC and those of business performance. However, realized absorptive capacity, measured as the transformation and exploitation of knowledge, played a positive mediating role in the relationship between the dimensions of IC and those of business performance. Social capital was also noted as a weak predictor of business performance, while human capital and organizational capital had a profound positive influence. Originality/value This study contributes to the literature on IC by examining the role of realized and potential absorptive capacity in the relationship between IC components and firm performance. This research also helps practitioners recognize the importance of transformation and the exploitation of knowledge for business performance.


2016 ◽  
Vol 28 (2) ◽  
pp. 171-180 ◽  
Author(s):  
Susan M. Ravizza ◽  
Mitchell G. Uitvlugt ◽  
Kimberly M. Fenn

Laptop computers are widely prevalent in university classrooms. Although laptops are a valuable tool, they offer access to a distracting temptation: the Internet. In the study reported here, we assessed the relationship between classroom performance and actual Internet usage for academic and nonacademic purposes. Students who were enrolled in an introductory psychology course logged into a proxy server that monitored their online activity during class. Past research relied on self-report, but the current methodology objectively measured time, frequency, and browsing history of participants’ Internet usage. In addition, we assessed whether intelligence, motivation, and interest in course material could account for the relationship between Internet use and performance. Our results showed that nonacademic Internet use was common among students who brought laptops to class and was inversely related to class performance. This relationship was upheld after we accounted for motivation, interest, and intelligence. Class-related Internet use was not associated with a benefit to classroom performance.


2016 ◽  
Vol 17 (3) ◽  
pp. 530-552 ◽  
Author(s):  
Vincenzo Scafarto ◽  
Federica Ricci ◽  
Francesco Scafarto

Purpose – The purpose of this paper is to investigate the relationship between intellectual capital (IC), categorized in terms of four sub-constructs – namely, human capital (HC), relational capital (RC), innovation capital (InnC) and process capital (PrC) – and business performance in the agribusiness industry. Design/methodology/approach – Based on a sample of international agribusiness companies observed over a five-year period, this paper uses correlation and multiple regression analysis to test for the existence of a positive relationship between each IC component and conventional business performance metrics. Findings – The empirical results support the hypotheses that RC and PrC have a positive impact on corporate performance. Counter to the expectations, InnC by itself is negatively associated with performance. Results also failed to confirm the hypothesis that HC directly and positively affects performance. However HC positively moderates the relation between InnC and performance, which suggests that firms that heavily invest in HC are better placed to gain returns from their research and development (R & D) investments. Originality/value – This study expands the existing research on the link between IC and performance by adding fresh evidence from a highly knowledge-intensive sector which has been under-researched thus far. It may also contribute to the specific literature on R & D and performance as it uncovers that the value-generating effect associated with R & D investments is contingent on the levels of HC.


Mathematics ◽  
2021 ◽  
Vol 9 (17) ◽  
pp. 2099
Author(s):  
Rafael Sancho-Zamora ◽  
Isidro Peña-García ◽  
Santiago Gutiérrez-Broncano ◽  
Felipe Hernández-Perlines

The purpose of this study was to understand how proactivity can affect the relationship between absorptive capacity and organisational performance. Most previous studies have ignored the role of proactivity in this relationship and have not considered the multidimensional nature of absorptive capacity. A questionnaire was sent to 800 CEOs of Spanish companies from different sectors, procuring a response rate of 38.25%. A structural equation model was applied to test the hypothesis. This study confirms the positive effect that absorptive capacity has on business performance and the moderating role of proactivity in this relationship. Companies that develop their capacity to absorb information from the environment achieve better results. Furthermore, if they engage in proactive behaviour within their company, this relationship is stronger. Future research should include more capacities that are related to knowledge and business performance (i.e., learning capability, innovation capacity, etc.). This study contributes to the understanding of how to manage a company’s knowledge in an appropriate way. It sheds new light on how knowledge management should be conducted, emphasising not only the gathering of information but also the promotion of a proactive attitude on the part of employees to achieve the goal of better performance.


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