scholarly journals The effects of managerial ability on firm performance and the mediating role of capital structure: evidence from Taiwan

2021 ◽  
Vol 7 (1) ◽  
Author(s):  
Irene Wei Kiong Ting ◽  
Imen Tebourbi ◽  
Wen-Min Lu ◽  
Qian Long Kweh

AbstractThis study utilizes mediation analysis and bootstrapping to analyze the mediating effect of capital structure on the association between managerial ability and firm performance. The dataset consists of 6384 firm-year observations from the Taiwanese electronics industry during 2005–2018. Our results indicate that (1) low (high) levels of debt are likely observed in firms with CEOs with high (low) ability, (2) managerial ability positively affects firm performance, and (3) capital structure mediates the positive relationship between managerial ability and firm performance. Overall, the findings may have limited generalizability due to the specific sample characteristics and provide convincing support for the importance of capital structure as a mediator in the managerial ability-firm performance nexus. Specifically, this study highlights the need for examining the effect of managerial ability on firm performance through a mediator.

Author(s):  
Mostafa Sayyadi Ghasabeh

This research contributes to the fields of knowledge management, transformational leadership, as well as information technology. This article presents the theoretical underpinnings of the framework together with a thorough review of the literature. This research indicates that there is a positive relationship between transformational leadership, knowledge management, and firm performance. The synthesis of the literature also lends support for the mediating role of information technology in the relationship between transformational leadership and knowledge management.


2016 ◽  
Vol 13 (06) ◽  
pp. 1750003 ◽  
Author(s):  
Cevahir Uzkurt ◽  
Halil Semih Kimzan ◽  
Cengiz Yılmaz

In recent years, environmental uncertainty and market orientation have been considered key elements of superior firm performance. Although environmental uncertainty and market orientation may affect firm performance, innovation also mediates these effects. In this study, a conceptual model was developed to test the mediating effect of innovation on the relationships between these constructs. Data for the study were collected from Turkey’s Top 500 Companies. Hierarchical regression and multiple regression analyses were employed to test the research hypotheses. The findings of the study revealed that the direct effects of environmental uncertainty and innovation on firm performance were statistically significant, although the effect of market orientation was not. The results obtained from the present study seem to indicate a possible “dual effect” of market orientation on firm performance. The results also indicated that innovation, especially product innovation, mediates the relationship between environmental uncertainty and firm performance. The findings indicate that innovation, especially product innovation, is critical for firm performance.


2017 ◽  
Vol 13 (13) ◽  
pp. 374
Author(s):  
Darius N. Ikyanyon ◽  
Egena Ode

Due to the importance of knowledge transfer in enhancing competitive advantage of firms, organizations are increasingly developing strategies for effective knowledge transfer. This study examined the relationship between high-performance HRM and knowledge transfer as well as the mediating effect of affective commitment on this relationship. The study is based on data from 136 mangers drawn from six banks in Nigeria. Through the use of regression analysis and mediation analysis using PROCESS macros, we report a positive relationship between highperformance HRM and knowledge transfer. We also found a positive relationship between affective commitment and knowledge transfer. In turn, affective commitment mediated the relationship between high-performance HRM and knowledge transfer. The study therefore concluded that highperformance HRM contributes to knowledge transfer directly and indirectly through affective commitment.


2013 ◽  
Vol 12 (04) ◽  
pp. 1350028 ◽  
Author(s):  
Ching Seng Yap ◽  
Md Zabid Abdul Rashid ◽  
Dewi Amat Sapuan

This study aims to identify the strategic roles of competitive intelligence and to examine the mediating effect of competitive intelligence practices on the relationship between perceived strategic uncertainty and firm performance. Data are collected from 123 public listed companies in Malaysia using mail questionnaire survey. The study highlights the essential role of competitive intelligence in supporting strategic decision making and strategic planning as well as in identifying opportunities and threats. Results reveal that perceived strategic uncertainty relates positively to competitive intelligence practices, which in turn, relates positively to firm performance. This paper includes implications, limitations, and recommendations for future studies.


2013 ◽  
Vol 13 (2) ◽  
pp. 119-137 ◽  
Author(s):  
K. Grekova ◽  
H.J. Bremmers ◽  
J.H. Trienekens ◽  
R.G.M. Kemp ◽  
S.W.F. Omta

Nowadays, firms are increasingly challenged to bridge potentially conflicting economic interests of primary commercial stakeholders and sustainability demands from secondary non-commercial stakeholder groups. While a number of firms view investments in environmental management as disconnected from their value-creating activities, others have reported achieved cost efficiency and differentiation advantages. Prior research suggests that environmental innovation might be the missing link between environmental management and firm performance. However, the mediating effect of environmental innovation in the relationship between environmental management and a firm's performance had not been empirically tested so far. Our paper provides a contribution by conducting an empirical investigation into this possible mediating effect. Although the presumed mediating role of environmental innovation suggests that it is influenced by internal environmental management, environmental innovation literature is especially concerned with the role of external stakeholders in environmental innovation. This study investigates the role of the engagement of stakeholders such as supply chain partners, industry, and public authorities in environmental impact reduction. We hypothesise that environmental innovation positively mediates the relationship between environmental management and firm performance, and that the engagement of stakeholders has a positive impact on environmental innovation. The research model was tested with a variance-based structural equation model using data from 90 Dutch food and beverage firms. The results confirm the positive mediating effect of environmental process innovation on the relationship between environmental management and cost efficiency advantage. Environmental product innovation contributes to a differentiation advantage but it is not significantly influenced by environmental management. So we could not support a positive mediating effect of environmental product innovation on the relationship between environmental management and differentiation advantage. Instead, environmental collaboration with supply chain partners has a strong positive impact on environmental product innovation. It also positively influences environmental process innovation but this influence is much weaker than the influence of internal environmental management. Our findings can assist managers in their decision making regarding the implementation of environmental innovations and environmental collaboration with external parties. The study is also relevant to policy makers as a tool to assess the appropriateness of their policy.


2019 ◽  
Vol 7 (2) ◽  
pp. 49-59
Author(s):  
Yasmeen Sultan ◽  
◽  
Sualeh Khattak ◽  
Habib Ahmed

The Entrepreneurial Orientation (EO) of firms is broadly described as a dimension of strategic posture and important part for enhancing firm Performance. The current study investigated the effect of Entrepreneurial orientation and its dimensional factors (Innovativeness, Risk-taking, Pro-activeness, Competitive Aggressiveness and Autonomy) on firm Performance with the mediating effect of Innovation Performance. Based on data from SMEs, the results indicated that EO has a significant positive association with firm execution. First, Entrepreneurial orientation focus on grown-up economy was expanded, taking a step in the direction of the applicability of the Entrepreneurial Orientation idea in the growing economy perspective. Second, it was explored how Innovation performance connected with SMEs performance and competitive power control the association between entrepreneurial orientation and firm performance. The most important objectives of these studies are to establish the level of Entrepreneurial Orientation on SME and create the influence of this orientation on firms performance. The Research study also represents policy and practice that give a source for entrepreneurial orientation decision and actions. In other words, it was established that EO helps SMEs owners to act entrepreneurially


2020 ◽  
Vol 33 (6) ◽  
pp. 1357-1378
Author(s):  
Aboobucker Ilmudeen ◽  
Yukun Bao

PurposeThe multifaceted effect of IT in organizations has been widely examined. However, the intervening role of IT strategy and business strategy on the effect of managing IT on firm performance remains less strong. This study examines how managing information technology (MIT) effects on firm performance by looking at the mediating role of IT strategy and business strategy.Design/methodology/approachDrawing on the resource-based view of IT and contingency perspective, theoretical insights for managing IT and the mediating effect of IT strategy and business strategy on firm performance are established. The model is empirically tested by using hierarchical regression and structural equation modeling for the data collected through the survey of 194 senior IT and business managers in China.FindingsThe significant and impactful relationship found in the model for the proposed idea. The results show that both IT strategy and business strategy partially mediate the effect of managing IT on firm performance.Research limitations/implicationsThe findings highlight that managing IT does not merely influence better firm performance; instead, the coherent amalgamation of IT strategy and business strategy can enrich firm performance. The theoretical and practical implications are also discussed.Originality/valueIn line with the call for rigorous research to integrate the managing IT and firm strategies, this study demonstrates the mediating role of business strategy and IT strategy between the managing IT and the firm performance relationship, hence contributing to the IS research literature.


2021 ◽  
Vol 14 (3) ◽  
pp. 113
Author(s):  
Munther Al-Nimer ◽  
Sinan S. Abbadi ◽  
Ahmad Al-Omush ◽  
Habib Ahmad

This study focused on scrutinizing the influence of Enterprises Risk Management (ERM) on firm performance with a mediating role of Business Model Innovation (BMI). For the purpose, data from 228 Jordanian firms was collected and analyzed. The results indicated that the ERM practices have a significant influence on BMI and financial firm’s performance. The BMI significantly contributed to the financial and nonfinancial performance, whereas it displayed insignificant effects regarding environmental performance. The BMI fully mediated the relationship between ERM practices and financial performance, where a partial mediating effect was observed for the path between ERM practices and nonfinancial performance, while showed no mediating role between the ERM practices and environmental performance. Economies of countries like Jordan are hereby urged to implement the formal ERM practices and to financially educate their top management teams to apply the BMI to gain first-rate performance. This study also encourages the researchers from other countries to extend this model to their economies to unleash useful insights.


Author(s):  
Huseyin Ince ◽  
Salih Zeki Imamoglu ◽  
Mehmet Ali Karakose

The relationship between entrepreneurial orientation, social capital, innovation performance, and firm performance has attracted the attention of many researchers. However, there is a lack of research on the mediating role of innovation performance on the relationship between entrepreneurial orientation, social capital, and firm performance. The purpose of this study is to investigate the mediating effect of innovation performance on the relationships between entrepreneurial orientation and firm performance and between social capital and firm performance. The study involves a questionnaire-based survey of managers from a variety of firms operating in Turkey. A total of 665 surveys from 298 firms were received and subjected to structural equation modelling analyses. We find that: (1) entrepreneurial orientation and social capital affect innovation performance, (2) innovation performance affects firm performance, and (3) innovation performance mediates the relationship between social capital and firm performance, and between entrepreneurial orientation and firm performance.


2021 ◽  
Vol 8 (4) ◽  
pp. 210-222
Author(s):  
Ramazan CANSOR ◽  
Hanifi PARLAR ◽  
M. Emin TÜRKOĞLU

This study aims to examine the mediating role of ethical climate in the relationship between ethical leadership and job satisfaction. A cross-sectional survey was conducted for the study. Questionnaires were distributed to 641 teachers in Turkey. Regression analysis was conducted to determine the mediating effect of ethical climate. Bootstrapping tehchnique was used to test the hypotheses and the effects of mediation. Our results show that there is a positive relationship between principals' ethical leadership and teachers' job satisfaction and a positive relationship between ethical leadership and ethical climate. In addition, ethical climate partially mediated the relationship between ethical leadership and job satisfaction. Schools should focus on ethical leadership practices in the workplace. The study enriched the understanding of the factors that influence the relationship between ethical leadership, ethical climate and job satisfaction.  


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