scholarly journals The Influence of Entrepreneurial Orientation and Innovation Capability on Perceived Firm Performance with The Mediating Role of Market Orientation: Case study in PT WIKA Industri & Konstruksi

2021 ◽  
Vol 5 (3) ◽  
pp. 149-156
Author(s):  
Anggiat Maju Lubis ◽  
Firdaus Basbeth
Keyword(s):  
Firm Performance ◽  
Market Orientation ◽  
Entrepreneurial Orientation ◽  
Structural Equation ◽  
Equation Modeling ◽  
Innovation Capability ◽  
Construction Company ◽  
Mediating Role

Performance of PT WIKON in two consecutive years indicated run into downtrend from the year 2018 to the year 2019. Low levels of Entrepreneurial Orientation, Innovation Capability, and Market Orientation have been suspected as factors leading to the performance of PT WIKA Industri & Konstruksi.  The objective of this study is to investigate Market Orientation as the mediator of relationship Entrepreneurial Orientation and Innovation Capability on Firm Performance in a construction company. However, study-related Market Orientation as a mediator on the indirect effect of Innovation Capability and Firm Performance is still rare, therefore research on this subject can be seen as Novelty. There are Six theory-based hypotheses are measured. This research employs a quantitative approach with empirical evidence of employees and BOD of PT WIKA Industri & Konstruksi. Survey data are from 93 respondents were analyzed used structural equation modeling (SEM). The findings of this research showed that Market Orientation has a positive effect on Firm Performance. Surprisingly, Entrepreneurial Orientation (EO) and Innovation Capability (IC) independently do not have a direct effect on Firm Performance. The Effect of Entrepreneurial Orientation (EO) on Firm Performance (FP) is mediated by Market Orientation. Likewise, the effect of Innovation Capability (IC) on Firm Performance (FP) is mediated by Market Orientation. These results suggest that Entrepreneurial Orientation and Innovation Capability should focus on Market Orientation to improve the overall Firm Performance. Besides, it is highly recommended to middle management and above of PT WIKA Industri & Konstruksi should focus and allocate resources to Market Orientation to improve their Firm Performance.

A Case Study of the Mediating Role of Innovation on the Relationship Between Environmental Uncertainty, Market Orientation, and Firm Performance

2016 ◽  
Vol 13 (06) ◽  
pp. 1750003 ◽  
Author(s):  
Cevahir Uzkurt ◽  
Halil Semih Kimzan ◽  
Cengiz Yılmaz
Keyword(s):  
Firm Performance ◽  
Market Orientation ◽  
Product Innovation ◽  
Environmental Uncertainty ◽  
Mediating Effect ◽  
Hierarchical Regression ◽  
Mediating Role ◽  
The Relationship

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.

How transformational leadership facilitates radical and incremental innovation: the mediating role of individual psychological capital

2020 ◽  
Vol 12 (3/4) ◽  
pp. 205-222
Author(s):  
Phong Ba Le
Keyword(s):  
Transformational Leadership ◽  
Structural Equation ◽  
Psychological Capital ◽  
Incremental Innovation ◽  
Equation Modeling ◽  
Service Firms ◽  
Innovation Capability ◽  
Content Type ◽  
Mediating Role

PurposeGiven the important role of innovation capability in helping firms to innovate and adapt to a fast-paced and unpredictable environment, the purpose of this study is to investigate and deepen knowledge of how transformational leadership affects radical and incremental innovation via the mediating role of positive psychological capital.Design/methodology/approachThe paper used structural equation modeling and cross-sectional design to test proposal hypotheses based on the empirical data collected from 379 participants in 89 manufacturing and service firms.FindingsThe results of this study revealed the positive and significant influence of transformational leadership on radical and incremental innovation. The findings highlighted the mediating role of individual psychological capital in the relationship between transformational leadership and aspects of innovation capability.Practical implicationsOrganizations should invest and stress on practicing transformational leadership style for their managers/directors to foster and enhance individual psychological capital and innovation capabilities.Originality/valueThe paper has extended theory of innovation management by discussing and highlighting the important role of transformational leadership and psychological capital in fostering specific aspects of innovation namely radical and incremental innovation.

How transformational leadership facilitates innovation capability: the mediating role of employees' psychological capital

2020 ◽  
Vol 41 (4) ◽  
pp. 481-499 ◽  
Author(s):  
Hui Lei ◽  
Lathong Leaungkhamma ◽  
Phong Ba Le
Keyword(s):  
Transformational Leadership ◽  
Self Efficacy ◽  
Structural Equation ◽  
Psychological Capital ◽  
Working Environment ◽  
Equation Modeling ◽  
Innovation Capability ◽  
Content Type ◽  
Mediating Role

PurposeThis paper aims to investigate the effects of transformational leadership on individuals and organization’s innovation capability via the mediating role of employees' positive psychological capital (Psy-Cap) namely self-efficacy and optimism.Design/methodology/approachStructural equation modeling (SEM) is used to test proposal hypotheses through the empirical data collected from 330 participants at 90 firms in Vietnam.FindingsThe research findings revealed that self-efficacy and optimism significantly mediate the relationship between transformational leadership and innovation capabilities. In addition, self-efficacy has a greater impact on innovation capabilities compared with the effect of optimism.Practical implicationsThe findings highlight the important role of practicing transformational leadership style to nurture and foster both employees' positive psychology sources and firms' innovation capability.Originality/valueThe paper has significantly advanced and deepened our understanding of how transformational leaders connect with employees to nurture and develop one of the most special aspects of human resource in contemporary working environment called employees' positive Psy-Cap for stimulating firm's innovation capabilities.

The nexus between entrepreneurial orientation and performance: enabling roles of absorptive capacity

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ismail Raisal ◽  
Arun Kumar Tarofder ◽  
Aboobucker Ilmudeen
Keyword(s):  
Absorptive Capacity ◽  
Entrepreneurial Orientation ◽  
Structural Equation ◽  
Positive Impact ◽  
Small And Medium Enterprises ◽  
Equation Modeling ◽  
Content Type ◽  
Mediating Role ◽  
Medium Enterprises

PurposeDeveloping countries’ economic growth very much depend on the successful performance of entrepreneurial-oriented firms. Entrepreneurial orientation (EO) is a valuable conjecturer of firm success. This study mainly focuses on analyzing the effect of EO on the firm performance (FP) with the mediating role of absorptive capacity (ACAP).Design/methodology/approachTo test the hypothetical model, we collected 226 valid responses from senior managers of small and medium enterprises (SMEs). The structural equation modeling technique is performed and research hypotheses are validated.FindingsThe findings show that the strong causal relations exit between EO, ACAP and FP. In brief, EO was found to be a predictor of ACAP, and ACAP has a strong positive impact on FP. Moreover, ACAP substantiated to be a mediator between EO and FP.Research limitations/implicationsA notable ramification of this finding is that for SMEs to enhance their performance via EO, the presence of ACAP as a mediator is essential.Practical implicationsThe findings of this study can be used as a basis to consider EO to increase firms' level of ACAP and to enhance FP. As a whole, the findings offer pragmatic insights for SMEs and pertinent stakeholders.Originality/valueSo far, little is known about the interrelationship between EO, ACAP and FP. Importantly, the mediating role of ACAP between EO and FP has remained unexplored. This study fills this gap in the existing literature.

scholarly journals Dynamic capabilities and organizational performance: The mediating role of innovation

2017 ◽  
Vol 25 (5) ◽  
pp. 731-747 ◽  
Author(s):  
Steven S Zhou ◽  
Abby J Zhou ◽  
Junzheng Feng ◽  
Shisong Jiang
Keyword(s):  
Firm Performance ◽  
Organizational Performance ◽  
Structural Equation ◽  
Dynamic Capabilities ◽  
Equation Modeling ◽  
Mediating Role ◽  
Different Types ◽  
Core Issue ◽  
Different Dimensions

AbstractHow firms’ dynamic capabilities lead to their competitive advantage and improved firm performance has been a core issue and full of debates. In this research, we theorize that dynamic capabilities, which could be defined by three distinct dimensions (sensing capability, integration capability, and reconfiguration capability), facilitate different types of innovation that in turn improve firm performance. Based on a sample of 204 Chinese firms, results from partial least squares structural equation modeling analyses generally support our arguments despite some nuanced differences existing among different dimensions of dynamic capabilities. This study contributes to dynamic capabilities literature by reducing the scarcity of empirical research and by uncovering the mechanisms through which dynamic capabilities influence firm performance.

How collaboration impacts in the market orientation-performance relationship of SMEs? A perspective from belt and road initiative

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Zafran Ahmad ◽  
Liu Chao ◽  
Wang Chao ◽  
Saqib Ilyas
Keyword(s):  
Firm Performance ◽  
Market Orientation ◽  
Structural Equation ◽  
Regional Cooperation ◽  
Content Type ◽  
Mediating Role ◽  
Belt And Road ◽  
Business Practitioners ◽  
Relationship Of

Purpose This article extends knowledge of market orientation (MO) and strategic collaboration by analyzing MO-collaborations in the context of firm performance of small- and medium-sized enterprises (SMEs). Design/methodology/approach A proposed framework built on the Knowledge and resource-based theory was tested using Structural Equation Modelling with data collected from 171 SMEs. Findings This research study supported the direct impact of market orientation on performance as well as the mediating role of collaboration in this focal relationship and assumed it would have a significant role in SME’s performance. Practical implications These findings have noteworthy implications for managers. Managers can focus on potential collaboration in order to acquire the needed assets. Owners-mangers should closely evaluate the FTAs, economic corridors, and regional cooperation agreements like BRI as these sources can lead them to collaboration with international partners. Additionally, it provides insight for entrepreneurs, business practitioners, and stakeholders of SMEs that are already operating or plan to increase their market share. Originality/value The study findings give interesting bits of knowledge to academia, entrepreneurs, and small- and medium-sized enterprises (SMEs). Given that market orientation and collaboration must proceed in parallel to improve firm performance, Assets like MO provide valuable knowledge and information about partners, which will lead to further valuable information to help the SME succeed. This study further extend the KBV theory recommendation that information and knowledge on collaboration works better and integration will be more successful in ‘resource rich’ firms.

scholarly journals Utilising Enterprise Social Media for Product Innovation: The Role of Market Orientation

2020 ◽  
Vol 12 (9) ◽  
pp. 3913
Author(s):  
Magadlene Mpandare ◽  
Guoxin Li
Keyword(s):  
Social Media ◽  
Market Orientation ◽  
Product Innovation ◽  
Structural Equation ◽  
Knowledge Generation ◽  
Equation Modeling ◽  
Enterprise Social Media ◽  
Mediating Role ◽  
Internal Social Media

The literature on the role of enterprise social media (ESM) utilisation in driving the innovation profiles of organisations has not provided an understanding of the mechanisms of this positive relationship. By conceptualising ESM as including internal and external social media use, this study examined the mediating role of market orientation strategies in the link between ESM use and product innovation. The results of structural equation modeling, among a sample of organisations based in South Africa, show that ESM use positively affects the market orientation strategies of companies and these have a positive effect on product innovation. While inter-functional coordination does not mediate the external social media–product innovation link, it does so in the internal social media–product innovation link. These results imply that organisations that wish to pursue product innovation (and perhaps strategies of differentiation) should use ESM, leveraging their value in knowledge generation and assimilation.

Impact of customer-oriented strategy on financial performance with mediating role of HRM and innovation capability

2019 ◽  
Vol 48 (3) ◽  
pp. 631-643 ◽  
Author(s):  
Naveed Iqbal Chaudhry ◽  
Iqra Aftab ◽  
Zainab Arif ◽  
Usman Tariq ◽  
Muhammad Azam Roomi
Keyword(s):  
Financial Performance ◽  
Structural Equation ◽  
Manufacturing Sector ◽  
Manufacturing Firms ◽  
Organizational Capabilities ◽  
Equation Modeling ◽  
Innovation Capability ◽  
Content Type ◽  
Mediating Role

Purpose The purpose of this paper is to explain the relationship between customer-oriented strategy (COS) and financial performance (FP) of firm, to examine the role of supportive human resource management (HRM) in COS implementation and contribution toward FP of firm. It also examines the mediating role of innovation capability (IC) between COS and FP of firm. Design/methodology/approach The approach used for this study is quantitative. Data required for testing of hypothesis were gathered from the managers of manufacturing firms of Gujranwala, Pakistan. To conduct the data analysis, structural equation modeling was used. Findings Findings of this study showed that there is significantly positive relation between COS and FP with the significant positive mediating effects of supportive HRM and IC. Research limitations/implications This research has been conducted in manufacturing sector only. So, it is suggested to future researchers to carry out this research in other sectors. Second, this research focused only on IC but there are many other organizational capabilities (OC) that can be used. Practical implications This research would be helpful for all firms adopting COS to understand that how to mobilize their HR to accomplish the purpose of strategy. It will enable manufacturing firms to understand and work on IC. Originality/value This study is anticipated to add value to the existing literature of strategy process and OC. This study is one of the first to examine IC as mediator between COS and organizational FP so it opens new areas for research.

scholarly journals The influence of entrepreneurial orientation on firm growth among Iranian agricultural SMEs: the mediation role of entrepreneurial leadership and market orientation

2021 ◽  
Author(s):  
Asef Karimi ◽  
Mahmood Ahmadpour Daryani ◽  
Soma Rahmani
Keyword(s):  
Market Orientation ◽  
Entrepreneurial Orientation ◽  
Structural Equation ◽  
Firm Growth ◽  
Critical Role ◽  
Equation Modeling ◽  
Entrepreneurial Leadership ◽  
Mediating Role ◽  
Top Managers ◽  
The Relationship

AbstractEntrepreneurship orientation is a fundamental topic both in entrepreneurship and in management that has a critical role in the development of the firm. The purpose of this paper is to study the relationship between entrepreneurial orientation (EO) and firm growth, specifically, how entrepreneurial leadership and market orientation mediate the relationship between EO and firm growth. The population of this study is agricultural small- and medium-sized enterprises (ASMEs) across Tehran Province. The survey instrument is questionnaires that were sent to 240 owners and/or top managers of ASMEs as a sample. Validity of the questionnaires has been verified in two ways of face and construct, and its reliability has been verified using Cronbach’s alpha. The collected data has been analyzed by using the structural equation modeling. The results reveal that EO significantly influences firm growth in ASMEs. Notably, entrepreneurial leadership (EL) and market orientation (MO) perform a mediating role in the relationships between EO and firm’s growth in ASMEs.

scholarly journals The Relations Between Entrepreneurial Orientation, Organizational Learning and Organizational Performance of Small Enterprises

2016 ◽  
Vol 1 (2) ◽  
Author(s):  
Vanessa Nunes De Souza Alencar Vasconcelos ◽  
Amélia Silveira ◽  
Flávio Santino Bizarrias
Keyword(s):  
Organizational Learning ◽  
Organizational Performance ◽  
Entrepreneurial Orientation ◽  
Structural Equation ◽  
Equation Modeling ◽  
Small Enterprises ◽  
Mediating Role ◽  
The Relationship ◽  
Formal Procedures

The study analyses the Organizational Performance antecedents, mainly the mediating role of the Entrepreneurial Orientation in the relationship between the Organizational Learning and the Organizational Performance in small Brazilian enterprises. A confirmatory factorial analysis was performed, through a structural equation modeling (SEM), to test the association between constructs. The results confirmed the hypothesis. The Entrepreneurial Orientation mediation role for the relationship between the Organizational Learning and the Organizational Performance. It was noted, however, that the organizational learning still needs to be better structured regarding formal procedures in those small enterprises researched.

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