scholarly journals Market Orientation, Firm Performance And The Mediating Effect Of Corporate Social Responsibility

2012 ◽  
Vol 28 (5) ◽  
pp. 851 ◽  
Author(s):  
Roshayani Arshad ◽  
Siti Mariam Mansor ◽  
Rohana Othman
Keyword(s):  
Firm Performance ◽  
Business Strategy ◽  
Mediating Effect ◽  
Superior Performance ◽  
Business Strategies ◽  
Annual Reports ◽  
Csr Strategies ◽  
Strategic Value ◽  
Csr Disclosure ◽  
The Relationship

This study examines the effect of CSR disclosure and MO on firm performance as well as the mediating effect of CSR on the relationship between MO and firm performance. These relationships are examined based on content analysis of 242 Malaysian public listed companies annual reports for 2006, 2007 and 2008. Results of this study provide evidence that CSR activities communicated in corporate annual reports are important business strategy in creating continuous superior performance for organisations. The results also indicate that MO companies are integrating CSR activities into their business strategies. However, the insignificant mediating effect of CSR on the relationship between MO and firm performance indicates that MO and CSR strategies have not been effectively integrated in creating a synergistic effect that can bolster firm performance. Overall, findings in this study indicate the strategic value of CSR in creating economic sustainability for organizations even in an environment characterised by concentrated ownership structure where the companies may be less market focused.

Integrative capability, business model innovation and performance

2019 ◽  
Vol 22 (3) ◽  
pp. 541-561 ◽  
Author(s):  
Changwei Pang ◽  
Qiong Wang ◽  
Yuan Li ◽  
Guang Duan
Keyword(s):  
Firm Performance ◽  
Business Model ◽  
Business Strategy ◽  
Business Model Innovation ◽  
Mediating Effect ◽  
Business Strategies ◽  
Cross Sectional ◽  
Content Type ◽  
Using Data ◽  
The Relationship

Purpose The purpose of this paper is to examine how business model innovation (BMI) mediates the relationship between integrative capability, business strategy and firm performance. Design/methodology/approach A literature review provides the model and hypotheses. Using a sample of 165 Chinese firms, the authors conduct the examination using a theoretical model and hypotheses following standard analysis methods. Findings The results show that BMI positively mediates the relationship between integrative capability and firm performance. Moreover, a differentiation strategy positively moderates the link between BMI and firm performance, while a cost leadership strategy presents a significantly negative moderating effect. Research limitations/implications First, the authors test the hypotheses using data from China; thus data from other emerging economies should be tested. Second, the authors use cross-sectional data in this study making it impossible to verify the dynamic developed in the process of BMI; a longitudinal study could provide a more comprehensive understanding. Third, the authors consider one intermediate mechanism to test the relationship of integrative capability and firm performance; additional factors may link integrative capability and firm performance. Practical implications The mediating effect of BMI suggests managers should pay more attention to BMI to improve firm performance, and they should understand that BMI’s role varies across different business strategies. Originality/value The paper is original in its investigation of the effect of integrative capability and BMI on firm performance using data from China and demonstrates the mediating effect of BMI on the relationship between integrative capability and firm performance.

The significant of business strategy in improving organizational performance

Humanomics ◽  
2017 ◽  
Vol 33 (1) ◽  
pp. 56-74 ◽  
Author(s):  
Yuliansyah Yuliansyah ◽  
Bruce Gurd ◽  
Nafsiah Mohamed
Keyword(s):  
Performance Measurement ◽  
Organizational Performance ◽  
Financial Institutions ◽  
Business Strategy ◽  
Mediating Effect ◽  
Superior Performance ◽  
Business Strategies ◽  
Organisational Performance ◽  
Content Type ◽  
The Relationship

Purpose This research aims to investigate the extent to which business strategy mediates the relationship between reliance on integrative strategic performance measurement (RISPM) and organisational performance. Design/methodology/approach A self-administered survey of 157 managers in Indonesian financial institutions was used to test direct and indirect effects among the hypothesised variables. Findings The findings indicate that business strategy has a full mediating effect on the relationship between RISPM and organisational performance. Originality/value This study indicates that performance measurement systems should be designed in conjunction with business strategies to obtain superior performance. More specifically, in the Indonesian financial institutions, applying a differentiation strategy is found to be most effective in gaining competitive advantage and superior performance.

Servitization and digitalization in manufacturing: the influence on firm performance

2019 ◽  
Vol 35 (3) ◽  
pp. 564-574 ◽  
Author(s):  
María-Luz Martín-Peña ◽  
José-María Sánchez-López ◽  
Eloísa Díaz-Garrido
Keyword(s):  
Firm Performance ◽  
Business Strategy ◽  
Mediating Effect ◽  
Linear Regression Models ◽  
Analysis Model ◽  
Industrial Firms ◽  
Content Type ◽  
Emerging Trends ◽  
Using Data ◽  
The Relationship

Purpose This paper aims to present a comprehensive framework that integrates the emerging trends of servitization and digitalization in manufacturing. The influence between digitalization and servitization is defined and quantified. Their contribution to firm performance is analyzed. Design/methodology/approach This paper presents a theoretical model that captures the relationships between the analyzed variables. Drawing on the Spanish Business Strategy Survey, hypothesis testing is conducted using data on 828 Spanish industrial firms. Linear regression models are built to capture the effect of each variable on firm performance and the type of interaction between the variables. Findings Servitization and digitalization are positively related to firm performance. Digitalization positively mediates the relationship between servitization and firm performance. The mediating effect of digitalization contributes to differentiating between the direct and indirect effects of servitization on firm performance. Practical implications The paper provides a useful analysis framework for firms to evaluate servitization and digitalization as success strategies. It is proposed that firms must simultaneously commit to digital transformation and the incorporation of services to create value, especially in business-to-business settings. Servitization and digitalization interact to exert a greater influence on performance. Originality/value The paper contributes to the theory on service strategy by providing an analysis model that includes digitalization as a mediator of the relationship between servitization and firm performance. Digitalization may provide a mechanism to unlock the benefits of servitization and thereby enhance firm performance.

Performance Implications of Co-Alignment of Business and Technological Innovation Strategy

2003 ◽  
Vol 4 (4) ◽  
pp. 213-224 ◽  
Author(s):  
Sanjay Goel ◽  
Ángela González-Moreno ◽  
Francisco J. Sáez-Martínez
Keyword(s):  
Firm Performance ◽  
Technological Innovation ◽  
Business Strategy ◽  
Positive Relationship ◽  
Electronics Industry ◽  
Superior Performance ◽  
Business Strategies ◽  
Innovation Strategy ◽  
Versatile Tool

Since technology is a versatile tool that can be deployed strategically, the authors hypothesize that there are certain non-random combinations of technology and business strategy choices that lead to superior performance. Findings from a sample of SMEs in the Spanish electronics industry show that there is a positive relationship between a co-alignment of the two strategies (business and technological innovation) and firm performance. In practical terms, this study shows that although SMEs can achieve equally good performance with different business strategies, within every business strategy, entrepreneurs must emphasize different sets of technological innovation dimensions to outperform the competition.

The relationship between MNCs’ strategies and executive staffing

2017 ◽  
Vol 25 (2) ◽  
pp. 233-250 ◽  
Author(s):  
Sangeetha Lakshman ◽  
C. Lakshman ◽  
Christophe Estay
Keyword(s):  
International Business ◽  
Business Strategy ◽  
Global Strategy ◽  
Business Strategies ◽  
Future Research ◽  
Research Approach ◽  
Global Integration ◽  
Content Type ◽  
Managerial Implications ◽  
The Relationship

Purpose The purpose of this paper is to examine the relationship of business strategies with executive staffing of multinational companies (MNCs). Design/methodology/approach Based on in-depth interviews conducted with top executives of 22 MNCs’, the authors identify important connections between international business strategies and staffing orientation. The authors used the qualitative research approach of building theory from interviews; thus, creating theoretical propositions from empirical evidence. Findings The authors find that when the pressure for global integration is high, MNCs use more parent-country national (PCNs) (ethnocentric staffing) as against the use of host-country managers (HCNs) (polycentric staffing) when this pressure is low. Additionally, MNCs using a global strategy are more likely to use an ethnocentric staffing approach, those using a multi-domestic strategy use a polycentric approach and firms using transnational strategy adopt a mix of ethnocentric and polycentric approaches. Research limitations/implications Although the authors derive theoretical patterns based on rich qualitative data, their sample is relatively small and comprises mostly of French MNCs. Generalizability to a broader context is limited. However, the authors’ findings have critical implications for future research. Practical implications The authors’ findings provide critical managerial implications for MNCs in matching their HR strategies with business strategies. These are important for effective strategy implementation. Originality/value Although MNC staffing orientations have been studied for a long time, their relationship to international business strategies is still not clearly understood. The authors contribute to the literature by investigating the relationship between MNCs’ business strategy types with staffing orientations.

Human Resource Management, TQM, and Firm Performance in Small and Medium-Size Enterprises

2000 ◽  
Vol 25 (1) ◽  
pp. 43-58 ◽  
Author(s):  
Gaylen N. Chandler ◽  
Glenn M. Mcevoy
Keyword(s):  
Resource Management ◽  
Firm Performance ◽  
Human Resource Management ◽  
Human Resource ◽  
Business Strategy ◽  
Best Practice ◽  
Medium Size ◽  
Current Debate ◽  
Total Quality ◽  
The Relationship

This study analyzes the moderating effect of two key human resource practices on the relationship between organizational strategy and firm performance. In a sample of 66 small to medium-sized manufacturing firms we found that a total quality management strategy was most effective when supported by significant training and group-based incentive compensation. This result is discussed in light of the current debate in the field about “best practice” versus “fit” models of human resource management and business strategy.

Indian study shows high-performance work systems (HPWS) mediate the relationship between business strategy and employees’ intention to leave

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Keyword(s):  
Business Strategy ◽  
Cost Reduction ◽  
High Performance ◽  
Intention To Leave ◽  
Business Strategies ◽  
Work Systems ◽  
Content Type ◽  
High Performance Work Systems ◽  
Mediating Role ◽  
The Relationship

Purpose This paper examines the relationship between business strategies and employees’ intention to leave (ITL), through the mediating role of high-performance work system (HPWS). Design/methodology/approach To test their hypotheses, the authors used self-administered questionnaires. They drew up a list of 600 organizations of different nature and structure operating in India that were listed by the Federation of Indian Chambers and Industry. They approved 192 organizations and sent the surveys to 960 executives. They aimed to receive a minimum of one response from an HR executive and two from non-HR executives from each one. In the end, they received 572 useable responses. Findings The study found that high-performance work systems (HPWS) mediate the relationship between business strategy and employees’ intention to leave (ITL). The two effective approaches were “quality management” and “innovation strategy”, both of which reinforced the adoption of HPWS. But a third approach, a “cost-reduction strategy”, was not shown to be positively correlated with HPWS. Another important finding was that the influence on ITL did not vary across the types, or ownership structures, of the firms. Originality/value The data has lessons for HR departments. First, it shows it is advantageous for firms hoping to retain more employees to invest in HPWS that are consistent with the values of their organizations. A second practical finding is that firms need to take into account the Indian context. A third lesson is HR practitioners should make strong efforts to communicate the goals of the HPWS to employees The study also shows firms adopting cost-reduction strategies should focus more on treating employees as resources.

scholarly journals A Theoretical Framework on Market Orientation-firm Performance Linkage in Textile Processing Industry: Mediating Effect of Entrepreneurial Orientation

Webology ◽  
2021 ◽  
Vol 18 (Special Issue 03) ◽  
pp. 261-273
Author(s):  
Dibyendu Pal ◽  
Kumar Shalender
Keyword(s):  
Firm Performance ◽  
Organizational Performance ◽  
Conceptual Model ◽  
Market Orientation ◽  
Entrepreneurial Orientation ◽  
Mediating Effect ◽  
Textile Processing ◽  
Processing Industry ◽  
Relationship Of ◽  
The Relationship

The objective of this theoretical paper is to explore the relationship of market orientation (MO) and organizational performance in the context of Indian textile processing industry. The study also aims to construct a conceptual model which can hypothesize the relationship between market orientation, firm performance, and entrepreneurial orientation (EO). The conceptual model is drawn with the help of extant literature review of studies conducted by various authors in the area of market orientation and entrepreneurial orientation. The study presents a model depicting the inter-relationship among MO, EO and firm performance. The proposed model also propounds that the relationship between market orientation and firm performance is mediated by entrepreneurial orientation. This work will be helpful for different stakeholders of textile processing industry to understand the importance of MO and EO and their impact on the performance of the organization. Also, the proposed conceptual model showing inter-relationship among MO, EO and firm performance is an addition to the existing pool of knowledge.

scholarly journals Impact of corporate governance index on firm performance: evidence from Pakistani manufacturing sector

2015 ◽  
Vol 4 (3) ◽  
pp. 163-174 ◽  
Author(s):  
Faisal Javaid
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Capital Investment ◽  
Random Effect ◽  
Annual Reports ◽  
Governance Mechanism ◽  
Inconsistent Result ◽  
Governance Index ◽  
Corporate Governance Mechanism ◽  
The Relationship

Corporate governance is considered to have significant impact on the growth and development perspective of an economy. Sound corporate governance practices leads the economy towards the achievement of higher performance, provide sources for capital investment by increasing the creditability of shareholders. The purpose of this study is to empirically investigate the relationship of corporate governance and firm performance in terms of accounting as well as market performance i.e.to be measured by Return on asset, Return on equity and Tobin’s Q. The theoretical base to conduct the study is the demand of separation of ownership and control characterize as agency theory. The previous studies have yielded inconsistent result. To achieve the purpose 58 textile sector companies were selected listed in the Karachi stock exchange and data was taken from annual reports of the companies for the period of 2009 to 2013. Descriptive statistics, correlation analysis and regression estimation using pooled, fixed effect, random effect and Hausman specification test were carried out after developing a composite index based on 21 proxies. The result entails that corporate governance index (CGI) and firm performance has positive and significant association but the relationship for each specific index is dependent upon the measure of firm performance. The result also shows that companies having strong corporate governance mechanism has greater chances to acquire finance. The implication of study demands that the reform effort should be directed towards the improvement in internal corporate governance mechanism and regulatory framework for the governance system.

scholarly journals RELATIONSHIP BETWEEN FAMILY OWNERSHIP, AGENCY COSTS TOWARDS FINANCIAL PERFORMANCE AND BUSINESS STRATEGY AS MEDIATION

2018 ◽  
Vol 19 (0) ◽  
pp. 49-58
Author(s):  
Enni Savitri
Keyword(s):  
Financial Performance ◽  
Business Strategy ◽  
Agency Costs ◽  
Stock Exchange ◽  
Partial Least Square ◽  
Least Square ◽  
Business Strategies ◽  
Family Ownership ◽  
Manufacturing Companies ◽  
The Relationship

This study investigates the relationship between family ownership, agency costs, financial performance, and companies’ business strategies. The targeted population of this study were all 143 manufacturing companies listed on the Indonesia Stock Exchange (IDX) during 2007–2014. About 31% (45) of these manufacturing companies are family companies. The hypotheses were tested using the partial least-square (PLS) method. Our findings reveal that the companies’ business strategies are not affected by the family ownership. Family ownership and business strategies influence companies’ financial performance. Agency costs influence business strategy and financial performance, and this shows that agency costs contribute to both the increase and decrease of financial performance. Business strategy mediates the relationship between family ownership and financial performance. This shows that family companies do not concentrate on financial goals but rather on the sustainability. Business strategy influences the relationship between agency costs and financial performance. This shows that funds can be redistributed in the course of business strategy planning, which will, in turn, improve the company’s development.

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