ICT SMEs, Performance, Absorptive Capacity and Transformative Capacity

2019 ◽  
Vol 118 (3) ◽  
pp. 178-188
Author(s):  
Yeon-Sung Cho ◽  
Kyung-Il Khoe
Keyword(s):  
Firm Performance ◽  
Market Orientation ◽  
Empirical Analysis ◽  
Absorptive Capacity ◽  
Latent Variables ◽  
Equation Modeling ◽  
Transformative Capacity ◽  
The Impact ◽  
The Empirical Analysis ◽  
Innovative Capacity

This study intends to integrate the relationship of market orientation, innovative capacity and firm performance to Information and Communication Technology(ICT) SMEs. The purpose of this study is to identify the role of absorptive capacity and transformative capacity that affect the performance of ICT SMEs. Hypotheses were established between five latent variables. A total of six hypotheses were established including the moderated effects of absorptive capacity and transformative capacity. Of the data collected after the survey, 112 valid surveys were selected as the final sample, except for 17 questionnaires with high non - response and insincere response. The empirical analysis of this study used smartpls3.0, Partial Least Squares (PLS), a variance-based structural equation modeling. The empirical analysis of this study revealed that the impact of market orientation on innovative capacity was significant. Moreover, the innovative capacity had a positive effect on the performance of ICT SMEs. In addition, the absorptive activity had a positive moderated effect between the market orientation and the innovative capacity. On the other hand, the transformative capacity showed a positive moderated effect in relation to innovative capacity and firm performance. Our empirical results have demonstrated the importance of knowledge based capacity in the ICT SMEs.

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.

scholarly journals Role of entrepreneurial orientation in firm performance through project success; Moderating role of absorptive capacity in SMEs of KSA

2021 ◽  
Vol 8 (7) ◽  
pp. 14-22
Author(s):  
Sami Salem Alzahrani ◽  
Keyword(s):  
Firm Performance ◽  
Absorptive Capacity ◽  
Entrepreneurial Orientation ◽  
Project Success ◽  
Small And Medium Enterprises ◽  
Primary Data ◽  
Equation Modeling ◽  
The Impact ◽  
Moderating Role

This study aimed to examine the impact of entrepreneurial orientation on firm performance through project success and moderating role of absorptive capacity. A deductive approach was used to test the model empirically. Primary data were collected at one point in time from employees of small and medium enterprises in the Kingdom of Saudi Arabia. 354 responses were used for final data analysis. The structure Equation Modeling (SEM) technique was used to analyze the hypothesized relationships by using the Smart PLS3. The findings indicate that entrepreneurial orientation has a significant impact on firm performance and project success also significantly mediates this relationship. Moreover, absorptive capacity moderates the entrepreneurial orientation impact on project success this relation becomes stronger in the presence of absorptive capacity. This study adds value to the literature and proves the mediating role of project success and moderating role of absorptive capacity. Practically, it highlights the importance of entrepreneurial activities for firm performance and project success.

scholarly journals Investigating the Impact of Information Technology, Absorptive Capacity, and Dynamic Capabilities on Firm Performance: An Empirical Study

SAGE Open ◽  
2021 ◽  
Vol 11 (4) ◽  
pp. 215824402110613
Author(s):  
FeCheng Ma ◽  
Farhan Khan ◽  
Kashif Ullah Khan ◽  
Si XiangYun
Keyword(s):  
Information Technology ◽  
Firm Performance ◽  
Absorptive Capacity ◽  
Structural Equation ◽  
Dynamic Capabilities ◽  
Superior Performance ◽  
Equation Modeling ◽  
Knowledge Based ◽  
Operational Processes ◽  
The Impact

In today’s dynamic market environment, information technology (IT) enables firms to obtain knowledge they need to achieve superior performance. To this end, the present study explores the effects of IT, absorptive capacity (ACAP), and dynamic capabilities (DCs) on firm performance (FP) by employing empirical research design. In addition, the study focuses on the DCs perspective and ACAP as a firm knowledge-based view focusing on those firms where technology involved in either a particular unit of the firm or as a whole in operational processes. The data (total 241) was analyzed through AMOS, a mathematical analysis methodology focused on structural equation modeling (SEM). Moreover, through Sobel test we further verify the indirect impact of IT on FP.

The Influence of Strategic Orientation on Firm Performance Mediated by Social Media Orientation at MSMEs

2018 ◽  
Vol 4 (08) ◽  
Author(s):  
Aekram Faisal ◽  
Asep Hermawan ◽  
Willy Arafah
Keyword(s):  
Social Media ◽  
Firm Performance ◽  
Market Orientation ◽  
Entrepreneurial Orientation ◽  
Two Dimensions ◽  
Strategic Orientation ◽  
Equation Modeling ◽  
Learning Orientation ◽  
Technological Orientation ◽  
Media Orientation

The main purpose of this research is to analyze the influence of strategic orientation on firm performance mediated by social media orientation at MSMEs. Strategic orientation includes market orientation, entrepreneurial orientation, technological orientation, and learning orientation. The design used in this research is hypothesis testing by using Structural Equation Modeling (SEM). The respondent population of this research is all owners or managers of MSMEs located in DKI Jakarta area and have been running their business for at least 2 (two) years, and have used social media in their business. This study used a sample of respondents. The sampling was done by using non-probability sampling technique with purposive sampling method with 321 respondents. The results of this study show that only learning orientation has a direct effect on firm performance, while for market orientation and entrepreneurial orientation requires mediation role from social media orientation, and for technological orientation either directly or after mediation by social media orientation still has no effect significant to firm performance. The variable that has the greatest influence on firm performance after mediated by social media orientation is the entrepreneurial orientation. The results of this study provide insight for MSMEs practitioners, in order to use their strategic activities to increase the use of social media so as to improve the firm performance. This study has limitations, including not detailing the construct dimension of social media orientation into two dimensions of visibility and Sales and business development, and the sample of respondents from this study is only the perpetrators of MSMEs located in the area of DKI Jakarta. This can be a suggestion for further research. The model proposed in this study is to add the role of social media orientation as a mediation variable in the relationship between strategic orientation with firm performance.

Capital Structure and Earnings per Share: An Empirical Analysis of Indian Corporate Sector

2015 ◽  
Vol 5 (3) ◽  
Author(s):  
Harvinder Singh Mand ◽  
Manjit Singh
Keyword(s):  
Capital Structure ◽  
Empirical Analysis ◽  
Corporate Sector ◽  
Independent Variables ◽  
Earnings Per Share ◽  
Panel Data Regression ◽  
Data Regression ◽  
The Impact ◽  
The Relationship ◽  
The Empirical Analysis

This paper intends to measure the impact of capital structure on EPS (earnings per share) in Indian corporate sector. Fifteen control variables along with capital structure have been selected to know their impact on EPS. Panel data regression has been applied to establish the relationship among dependent and independent variables. It is found from the empirical analysis that the relation of capital structure with EPS has been statistically insignificant in Indian corporate sector among all specific industries except telecommunication industry. The results are consistent with Modigliani-Miller approach.

scholarly journals The Impact of Top Management’s Support on the Collaboration of Green Supply Chain Participants and Environmental Performance

2020 ◽  
Vol 12 (21) ◽  
pp. 9090
Author(s):  
Jungeun Lee ◽  
Hye-Young Joo
Keyword(s):  
Supply Chain ◽  
Empirical Analysis ◽  
Environmental Performance ◽  
Green Supply Chain ◽  
Top Management ◽  
Direct Impact ◽  
Theoretical Mechanism ◽  
The Impact ◽  
The Empirical Analysis

The purpose of this study is to determine whether the support of top management significantly improves the level of environmental collaboration with participating companies upstream and downstream of the green supply chain and the impact on environmental performance. The results of the empirical analysis of 301 companies that are establishing a green supply chain are as follows. First, top management’s support positively affects the level of collaboration with suppliers and customers in the green supply chain. Secondly, support from top management has a direct impact on the company’s environmental performance. Thirdly, the environmental collaboration of participating companies partially plays a mediation role between the support of top management and the environmental performance. This study has significance in that it analyzes the theoretical mechanism of top management’s support for environmental collaboration with participating companies, leading to environmental performance, and draws implications.

scholarly journals Working Memory, Fluid Reasoning, and Complex Problem Solving: Different Results Explained by the Brunswik Symmetry

2021 ◽  
Vol 9 (1) ◽  
pp. 5
Author(s):  
André Kretzschmar ◽  
Stephan Nebe
Keyword(s):  
Working Memory ◽  
Problem Solving ◽  
Cognitive Abilities ◽  
Latent Variables ◽  
Complex Problem ◽  
Equation Modeling ◽  
Complex Problem Solving ◽  
Symmetry Principle ◽  
Fluid Reasoning ◽  
The Impact

In order to investigate the nature of complex problem solving (CPS) within the nomological network of cognitive abilities, few studies have simultantiously considered working memory and intelligence, and results are inconsistent. The Brunswik symmetry principle was recently discussed as a possible explanation for the inconsistent findings because the operationalizations differed greatly between the studies. Following this assumption, 16 different combinations of operationalizations of working memory and fluid reasoning were examined in the present study (N = 152). Based on structural equation modeling with single-indicator latent variables (i.e., corrected for measurement error), it was found that working memory incrementally explained CPS variance above and beyond fluid reasoning in only 2 of 16 conditions. However, according to the Brunswik symmetry principle, both conditions can be interpreted as an asymmetrical (unfair) comparison, in which working memory was artificially favored over fluid reasoning. We conclude that there is little evidence that working memory plays a unique role in solving complex problems independent of fluid reasoning. Furthermore, the impact of the Brunswik symmetry principle was clearly demonstrated as the explained variance in CPS varied between 4 and 31%, depending on which operationalizations of working memory and fluid reasoning were considered. We argue that future studies investigating the interplay of cognitive abilities will benefit if the Brunswik principle is taken into account.

Market orientation, innovation commercialization capability and firm performance relationships: the moderating role of supply chain influence

2017 ◽  
Vol 32 (7) ◽  
pp. 913-924 ◽  
Author(s):  
Jeen-Su Lim ◽  
William K. Darley ◽  
David Marion
Keyword(s):  
Supply Chain ◽  
Firm Performance ◽  
Market Orientation ◽  
Innovation Management ◽  
Strategy Formulation ◽  
Content Type ◽  
Positive Effects ◽  
The Impact ◽  
Moderating Role

Purpose The study aims to explore supply chain influence (SCI) on the linkages among market orientation, innovation capabilities and firm performance (FP), using the resource-based view as a theoretical backdrop. Design Survey data from 182 top managers who are involved in strategy formulation and innovative direction of their companies was collected and analyzed using moderated multiple regression analysis. Findings Results revealed a moderating role of the SCI in that the proactive market orientation (PMO) and FP relationship is stronger when SCI is high, and innovation commercialization capability (ICC) and FP relationship is stronger when SCI is low. Practical implications Firms pursuing high PMO strategy must collaborate with supply chain function to achieve the full effect of PMO. Additionally, as supply chain is critical to meeting customers’ needs, these firms should allow supply chain to exert greater influence to enjoy the positive effects of PMO in addition to ensuring full integration into marketing strategy implementation. Also, firms with high ICC need to limit SCI to maximize the benefit of ICC on FP, just as innovation management needs to be cognizant of other functional areas. Originality/value The study investigates the potential moderating role of SCI on the relationships among market orientation, ICC and FP. The study fills a gap in the understanding of the nature and role of supply chain in the marketing–supply chain interaction, and the impact on FP.

scholarly journals Firm’s strategic choices and network knowledge dynamics: how do they affect innovation?

2018 ◽  
Vol 22 (1) ◽  
pp. 1-20 ◽  
Author(s):  
Jose Antonio Belso-Martinez ◽  
Isabel Diez-Vial
Keyword(s):  
Absorptive Capacity ◽  
Knowledge Networks ◽  
Knowledge Network ◽  
Strategic Choices ◽  
Network Growth ◽  
Content Type ◽  
Endogenous Factors ◽  
The Impact ◽  
Innovative Capacity ◽  
Over Time

Purpose This paper aims to explain how the evolution of knowledge networks and firms’ strategic choices affect innovation. Endogenous factors associated with a path-dependent evolution of the knowledge network are jointly considered with a firm’s development of international relationships and increasing internal absorptive capacity over time. Design/methodology/approach In a biotech cluster, the authors gathered data on the firms’ characteristics and network relationships by asking about the technological knowledge they received in the cluster in 2007 and 2012 – “roster-recall” method. Estimation results were obtained using moderated regression analysis. Findings Firms that increase their involvement in knowledge networks over time also tend to increase their innovative capacity. However, efforts devoted to building international links or absorptive capacity negatively moderate the impact of network growth on innovation. Practical implications Practitioners have two alternative ways of increasing innovation inside knowledge networks: they can increase their centrality by developing their knowledge network interactions or invest in developing their internal absorptive capacity and new international sources of knowledge. Investing in both of these simultaneously does not seem to improve a firm’s innovative capacity. Originality/value Coupling firms’ strategic options with knowledge network dynamics provide a more complete way of explaining how firms can improve their innovative capacity.

scholarly journals FINANCIAL CRISIS AND LOCAL BANKS: A REVIEW OF BANK-FIRM RELATIONSHIPS IN ITALY

2017 ◽  
Vol 14 (3) ◽  
pp. 249-258 ◽  
Author(s):  
Andrea Quintiliani
Keyword(s):  
Financial Crisis ◽  
Empirical Analysis ◽  
Research Question ◽  
Banking System ◽  
Relationship Lending ◽  
Critical Elements ◽  
Risk Return ◽  
The Impact ◽  
The Relationship ◽  
The Empirical Analysis

This paper focuses on bank-firm relationship in an economic deeply changing environment. The objectives of the paper are two-fold: to understand, compared to the overall banking system, if the lending activities and economic-financial performances of Italian local banks have changed after the outbreak of the financial crisis; and to understand what are the conditions that allow to develop a model of a local bank capable of supporting the development routes of SMEs, by an appropriate risk/return profile. In order to answer the first research question, the paper presented an empirical analysis, covering the period 2007-2011, of Italian Cooperative Credit Banks (a particular category of local banks) compared with the system of bank groups with operability spread over much of the Italian territory and not. The empirical comparative analysis has the aim to see the effects of the crisis on the relationship bank-firm through the reading of the impact on the dynamics of lending and on the profiles of structure, riskiness, profitability and efficiency of the banks under examination. In order to provide an answer to the second research question, the paper provides some insight of evolutionary nature reflection in the bank-firm relationship. In accordance with the doctrinal postulates of the relationship lending the empirical analysis shows how the financial then real crisis has not induced Cooperative Credit Banks to restrict credit to local firms. The survey evidences have however highlighted some critical elements that are reflected inevitably on the local bank’s risk-return profile. Based only on quantitative data of statement, the empirical analysis represents a limit in this kind of research. This paper is useful to stimulate the debate of experts as well as to focus on the studies of local banks in particular in the light of their anti-cyclic role. Even if abounding in subjects about local banks and relationship lending literature faces only marginally the effects of global crisis on business profiles of local banks.

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