The Effects of TMT Faultlines and CEO-TMT Power Disparity on Competitive Behavior and Firm Performance

2018 ◽  
Vol 44 (5) ◽  
pp. 874-914 ◽  
Author(s):  
Mengge Li ◽  
Carla D. Jones
Keyword(s):  
Firm Performance ◽  
Performance Outcomes ◽  
Competitive Behavior ◽  
Upper Echelons ◽  
Power Disparity ◽  
Negative Effect ◽  
Managerial Implications ◽  
Competitive Dynamics Research ◽  
And Performance ◽  
Competitive Actions

Although upper echelons scholars have drawn from the demographic faultlines concept to study top management team (TMT) subgroup dynamics, the effects of TMT faultlines on competitive behavior and performance outcomes have not been well documented. To gain greater insight, we develop a model that connects TMT faultlines, CEO-TMT power disparity, competitive behavior, and firm performance. We hypothesize that TMT faultlines and CEO-TMT power disparity jointly determine a firm’s competitive aggressiveness and simplicity, and these two competitive behaviors influence firm performance. Using a sample of 295 U.S. firms in 146 industries from 2000 to 2013, our findings indicate that (a) TMTs with strong faultlines take fewer and simpler competitive actions, and CEO-TMT power disparity further worsens the negative effect on the volume of competitive actions, and (b) fewer and simpler competitive actions benefit short-term firm performance; however, they hurt the long-term firm performance trend. These findings contribute to the upper echelons and competitive dynamics research and suggest important managerial implications.

Corporate governance practices and firm performance: a configurational analysis across corporate life cycles

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hala M. Amin ◽  
Ehab K.A. Mohamed ◽  
Mostaq M. Hussain
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Analytical Approach ◽  
Research Study ◽  
Performance Outcomes ◽  
Life Cycles ◽  
Related Activity ◽  
Content Type ◽  
And Performance ◽  
Country Specific

Purpose This study aims to explore corporate governance (CG) practices that can lead to firms’ better performance in different organizational life cycles. The authors propose a configurational approach to explore how a set of CG practices combine in bundles to achieve high performance outcomes for firms across their corporate life cycles. Design/methodology/approach Fuzzy-set qualitative comparative analysis was used to analyze a sample of data of 21 countries and 9 industries. Data referred to the period of 9 years extending from the year 2005 to the year 2013. Findings This study reveals that there are multiple CG practices that exist through firms that can achieve high firm performance. Moreover, CG practices combine in different ways for firms in their growth, maturity and declining stages. Research limitations/implications This study demonstrates the value of using a configurational analytical approach to explore both the firm and country-specific CG practices (together) that engage firms to achieve the desired level of performance across the corporate life cycles. Practical implications The current study draws attention to the policymakers’ need to assess the current level of regulatory and competitive development of their countries and form policy accordingly. The approach used in the current research study not only offers the linkages between CG and performance to managers as incentives to comply with regulation but also to view CG-related activity as a strategic move. Social implications The approach used in the current research study not only offers the linkages between CG and performance to managers as incentives to comply with regulation but also to view CG-related activity as a strategic move. Originality/value This study broadening the focus of CG studies to include a rigorous explanation of the global CG phenomena and to provide effective solutions for the practitioners. Contribution to Impact This study demonstrates the value of using a configurational analytical approach to explore both the firm and country-specific CG practices (together) that engage firms to achieve the desired level of performance across the corporate life cycles.

The Relationship Between Work-Life Balance (WLB) and Firm Performance

2017 ◽  
pp. 402-411
Author(s):  
Choi Sang Long
Keyword(s):  
Firm Performance ◽  
Organizational Performance ◽  
Management Practices ◽  
Longitudinal Research ◽  
Synergistic Effects ◽  
Performance Outcomes ◽  
Favorable Effect ◽  
And Performance ◽  
The Cost ◽  
The Relationship

It is paramount that firms accurately assess the cost-effectiveness of WLB policies as initiatives to conduct such policies involve cost. WLB policies should be considered due to synergistic effects by employing a variety of policies. The benefits are usually under-estimated while the costs over-estimated, as the latter is easier to measure. Until longitudinal research is conducted, we cannot discount the possibility that successful organizations are more likely to offer WLB practices, and that the practices themselves are not exerting any favorable effect on organizational performance. Instead, it might simply be that organizations offering WLB practices are more predisposed to engaging in high-quality management practices and that this approach usually generates a positive effect on employees and performance outcomes. Thus, we can surmise that improved firm performance is a result of effective management usually associated with the implementation of WLB policies in the workplace, and not solely because of WLB per se.

Interest and Performance When Learning Online

2012 ◽  
pp. 1230-1245
Author(s):  
Tamra B. Fraughton ◽  
Carol Sansone ◽  
Jonathan Butner ◽  
Joseph Zachary
Keyword(s):  
Prior Experience ◽  
Self Regulation ◽  
Performance Outcomes ◽  
Web Pages ◽  
Utility Value ◽  
Online Instructors ◽  
Negative Effect ◽  
And Performance ◽  
Motivation Model ◽  
Quiz Scores

As part of the Regulating Motivation and Performance Online Project (RMAPO), students completing an online HTML programming lesson demonstrated higher quiz scores and greater post-lesson interest when initially provided information about how the skills could be used (personal or organizational applications). These effects were mediated by higher levels of engagement with optional examples and exercises during the lesson. This paper examines whether the benefit from adding utility value information was limited to students with no prior experience creating web pages. Results show that, regardless of prior experience, the added information was associated with higher engagement levels, which were associated with higher lesson interest and quiz scores. Because prior experience was related to lower engagement levels overall, results suggest that experience had an indirect negative effect on motivation and performance outcomes that was offset by enhanced engagement when value was added. Implications for the Self-Regulation of Motivation Model (SRM) and online instructors are discussed.

scholarly journals MULTIPLE-UNIT FRANCHISING AND PERFORMANCE OUTCOMES

2013 ◽  
Vol 14 (Supplement_1) ◽  
pp. S279-S312 ◽  
Author(s):  
Kelli Bodey ◽  
Scott Weaven ◽  
Debra Grace
Keyword(s):  
Research Direction ◽  
Performance Outcomes ◽  
Future Research ◽  
Governance Structures ◽  
Growth System ◽  
Managerial Implications ◽  
Wide Adaptation ◽  
Multiple Unit ◽  
And Performance ◽  
The Impact

The economic and social contribution of franchising is widely reported. Although, most studies have examined franchising from the single-unit typology, multiple-unit franchising is found to be a popular and pervasive retailing strategy throughout the world. Despite this, there is a paucity of prior research examining the factors influencing the achievement of the four franchising imperatives. This represents an important gapin the organizational choice literature. Therefore, this study empirically examines the impact of the four franchising imperatives (i.e. unit growth, system uniformity, local responsiveness and system wide adaptation) (Bradach 1995) upon franchise system operational performance across the four key governance structures (i.e. master franchising, area development franchising, area representative franchising and incremental franchising). Based on a sample of 347 Australian franchisors, the findings indicate that there are significant differences in the way in which three of the four imperatives (i.e. unit growth, system uniformity and system-wide adaptation) impact on performance across different governance structures. Practical and managerial implications and future research direction are discussed.

Regulation and strategic group dynamics of the Nigerian telecommunications industry

2014 ◽  
Vol 5 (2) ◽  
pp. 209-232
Author(s):  
Olawale Oladipo Adejuwon
Keyword(s):  
Firm Performance ◽  
Group Dynamics ◽  
Empirical Studies ◽  
Telecommunications Industry ◽  
Competitive Behavior ◽  
Strategic Groups ◽  
Data Set ◽  
Strategic Group ◽  
Content Type ◽  
Competitive Actions

Purpose – In order to achieve a desirable level of market efficiency, regulators need to identify the strategic groups within an industry and understand the way the constituent groups relate to one another. The paper aims to discuss these issues. Design/methodology/approach – In the current study, factors that may lead to strategic group formation were developed and used as clustering variables in a k-means cluster statistical analysis to categorize the firms into strategic groups. The factors used are entry costs, timing of entry, technology type and scope of operations. In addition, the number and type of competitive actions employed by the firms in the industry were identified by structured content analysis of a public source. The competitive actions were used to examine the dynamics of the resulting groups within the context of competitive behavior, resource and scope commitments and corporate social responsibility (CSR) actions. In addition, χ2 analysis was employed to ascertain the likelihood that actions of a firm will be responded to by firms from the same group or from outside the group. Findings – License fees was found to be the most significant clustering variable. The study also showed that groups with significantly higher license fees carried out considerably more competitive actions, had higher resource and scope commitments and executed more CSR actions. In addition, the study revealed significantly more competition within strategic groups than between groups. Research limitations/implications – The absence of financial records for firms in the sample necessitated the use of CSR activity as a measure of firm performance. Some empirical studies have shown strong links between CSR and firm performance. Practical implications – The study revealed high mobility barriers which prevent ease of movement of firms in the industry from one strategic group to the other. Therefore regulators who wish to promote competition must do so by identifying the strategic groups with significant market power and permitting entry not by lowering entry barriers but by allowing the entry of firms with proven resources similar to the firms in those groups and to stipulate similar commitments in entry conditions. The results also offer management practitioners an insight into competitive behavior in the industry. Originality/value – The study utilized a unique data set (competitive actions of firms in the Nigerian Telecommunications industry as reported in the media) in contributing to empirical studies on competitive dynamics and strategic group literature.

Competitive Dynamics

Management ◽  
2019 ◽  
Author(s):  
Anja Tuschke ◽  
Viktoria Judith Salomon
Keyword(s):  
Theoretical Perspective ◽  
Large Body ◽  
Performance Outcomes ◽  
Competitive Dynamics ◽  
Multimarket Contact ◽  
Michael Porter ◽  
Mutual Forbearance ◽  
Multimarket Competition ◽  
Competitive Dynamics Research ◽  
Competitive Actions

This article introduces research in competitive dynamics, a collection of work that has developed within the field of strategic management since the late 1980s. Competitive dynamics is the study of interfirm rivalry constituted of competitive actions and responses, their micro- and macro-level context as well as their antecedents and consequences (Chen and Miller 2012, cited under Reviews). Related research addresses fundamental questions such as: “Why do firms engage in competitive rivalry?” “What characterizes the competitive interaction between firms?” “How do focal firms’ competitive actions and rivals’ responses influence firm performance?” “How do contextual factors influence competitive dynamics?” Competition has long been at the center of academic debate, starting with the analysis on the functioning of economic markets and Adam Smith’s welfare competition. While this debate had traditionally been dominated by economists, scholars such as Michael Porter introduced a management perspective on competition. Within the management discipline, two conceptions of competition developed. In a more static conception based on economic theory, competition was formalized as an inherent characteristic of market structures, viewing market forces as determinants of the degree and the type of competition within an industry (Baum and Korn 1996, cited under Multimarket Contact, Multimarket Competition, and Mutual Forbearance). A second conception was motivated by Joseph Schumpeter’s concept of “creative destruction” and the Austrian school of economics (Smith, et al. 2001, cited under Reviews). This dynamic conception of competition accentuates the individual behavior of each competing firm (Baum and Korn 1996, cited under Multimarket Contact, Multimarket Competition, and Mutual Forbearance) and became known as “competitive dynamics research.” It assumes that performance differences between firms operating in the same industry are the result of competitive actions that are aimed at obtaining successive temporary advantages (Young, et al. 1996, cited under Competitive Actions: Characteristics, Drivers, and Performance Outcomes). Since the beginning of the 1990s, the competitive dynamics research program has flourished, and a large body of work has emerged within the literature on competitive strategy, consisting of several sub-streams such as competitive action and response, first-mover advantage, and multimarket competition(Ketchen, et al. 2004, cited under Reviews). Research within these sub-streams is largely unified by its reliance on a common theoretical perspective, the awareness-motivation-capability (AMC) framework (Chen 1996, cited under Awareness-Motivation-Capability Framework). Leading scholars in the field of competitive dynamics are, among others, Ming-Jer Chen, Walter J. Ferrier, Danny Miller, and Ken G. Smith.

scholarly journals THE IMPACTS OF INFORMALITY ON ENTERPRISE INNOVATION, SURVIVAL AND PERFORMANCE: SOME EVIDENCE FROM PAKISTAN

2019 ◽  
Vol 24 (03) ◽  
pp. 1950015 ◽  
Author(s):  
SANA ULLAH ◽  
COLIN C. WILLIAMS ◽  
BABUR WASIM ARIF
Keyword(s):  
Firm Performance ◽  
Employment Growth ◽  
Firm Survival ◽  
Firm Level ◽  
Negative Effect ◽  
Enterprise Innovation ◽  
Multivariate Probit Models ◽  
And Performance ◽  
The Relationship ◽  
Do So

The aim of this paper is to evaluate the relationship between informality, innovation and firm survival. To do so, a study of a cluster of electrical fittings firms in Pakistan is reported. Reporting bivariate and multivariate probit models to analyze two surveys conducted between 2008 and 2017, the finding is that there is a significant relationship between informality and the extent of innovation, firm survival and firm performance. Informality has an adverse negative effect on firm-level innovation, firm survival and firm performance. Given that formal enterprises in this cluster are better performing in terms of innovation, survival and employment growth than informal businesses, the paper concludes by discussing the theoretical, policy and research implications.

scholarly journals The Effect of Risk, R&D Intensity, Liquidity, and Inventory on Firm Performance during COVID-19: Evidence from US Manufacturing Industry

2021 ◽  
Vol 14 (10) ◽  
pp. 499
Author(s):  
Jack Clampit ◽  
Dinesh Hasija ◽  
Michael Dugan ◽  
John Gamble
Keyword(s):  
Firm Performance ◽  
Asset Management ◽  
Manufacturing Industry ◽  
Ordinary Least Squares ◽  
Performance Outcomes ◽  
Inventory Level ◽  
Risk Averse ◽  
Sales Growth ◽  
Theoretical Frameworks ◽  
And Performance

Because prior knowledge may not generalize to the COVID-19 setting, scholars are racing to test the efficacy of existing theoretical frameworks during COVID-19. Most business studies are conceptual or surveys of damage. The main purpose of the paper is to extend the forthcoming stream that tests firm performance by examining it during COVID-19. We examine the sales growth of 1298 US manufacturers during COVID-19 compared to their pre-COVID-19 baselines. Riskier firms with higher R&D intensities performed better during COVID-19, especially when cash-to-inventory levels were low. This study is among the first to empirically identify actionable predictors of firm performance during COVID-19 via a quantitative analysis of strategies and performance outcomes. Understanding what type of firms perform at higher levels during COVID-19 will help decision makers make more informed decisions moving forward. Employing ordinary least squares (OLS) regression to test our hypotheses, our findings suggest that R&D intensive firms should pivot tactically regarding current asset management, if needed, but not strategically, while prioritizing inventory versus cash retention. The positive effect of inventory versus cash extends theory by suggesting a new boundary condition related to pandemics that reverses the positive link between cash and performance found during crises with more conventional levels of turbulence. Our most important contribution, however, is practical, via the testing of predictors that can help firms during COVID-19. For example, we found that firms with higher levels of operating risk experienced 60 percent more sales growth than risk-averse firms. This knowledge that risk-taking predicted performance during COVID-19 (especially when coupled with a focus on R&D intensity and inventory level) may encourage those that can adopt less risk-averse strategies, while others focus on tactical adjustments or mitigative measures during COVID-19 and future black swan events.

scholarly journals Competitive Rationales: Beneath the Surface of Competitive Behavior

2021 ◽  
pp. 014920632110405
Author(s):  
Goce Andrevski ◽  
Danny Miller ◽  
Isabelle Le Breton-Miller ◽  
Walter Ferrier
Keyword(s):  
Resource Use ◽  
Competitive Dynamics ◽  
Competitive Behavior ◽  
Professional Basketball ◽  
Competitive Action ◽  
Competitive Dynamics Research ◽  
Tactical Decisions ◽  
Competitive Actions ◽  
Strategic Outcomes ◽  
Multicase Study

Competitive dynamics research has focused on studying whether rivals are able and likely to carry out competitive actions, typically by examining indirect reasons such as characteristics of the actions themselves, the firms involved, or the competitive context. We explore why rivals initiate a specific competitive action at a particular time and situation. Drawing from the philosophy of action literature, we introduce the concept of competitive rationales to examine the primary reasons that cause tactical actions. Given the rapid exchanges characterizing tactical competitive dynamics, we conducted an inductive, multicase study to explore the reasons behind over 800 discrete tactical decisions carried out by 9 professional basketball coaches during 15 basketball games. To garner insight, we develop a conceptual framework revealing their types and scope. Even during intense head-to-head rivalry, most rationales were not rivalrous but were instead organizational—to optimize resource use, strategic consistency, and reputation—or social—to manage relationships. Moreover, the three main types of rationales varied in scope, extending beyond immediate competitive situations and rivals to address longer term, strategic outcomes, and assorted stakeholders. Thus, our analysis reveals these rationales to be complex and potentially difficult for rivals to decipher. It also recasts each component of the dominant awareness-motivation-capability (AMC) model of rivalry, suggesting that awareness is challenged by subtle rationales, motivation drives not only action but also forbearance, and capability is both a requirement and product of action.

Toward a Theory of Small Firm Performance: A Conceptual Model

1988 ◽  
Vol 12 (4) ◽  
pp. 41-58 ◽  
Author(s):  
Barbara W. Keats ◽  
Jeffrey S. Bracker
Keyword(s):  
Firm Performance ◽  
Conceptual Model ◽  
Small Firm ◽  
Organization Theory ◽  
Contextual Factors ◽  
Performance Outcomes ◽  
Domain Theory ◽  
Entrepreneurial Characteristics ◽  
And Performance

A conceptual model of small firm performance is developed based on extant theory in strategy, entrepreneurship and organization theory. It provides a framework for the study of the interrelationships among entrepreneurial characteristics, contextual factors and performance outcomes. It is considered a first step toward a limited domain theory of small firm performance.

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