scholarly journals Is Sustainable Performance Explained by Firm Effect in Small Business?

2020 ◽  
Vol 12 (23) ◽  
pp. 10028
Author(s):  
Vicente López-López ◽  
Susana Iglesias-Antelo ◽  
Esteban Fernández

To what extent a firm’s resources (firm effect) and the structure of the sector (industry effect) are sources of a firm’s competitiveness has been debated for years in strategic management. Most of the empirical studies carried out have focused on large firms and have used static performance measures, and in them the firm effect generally outweighs the industry effect. This research contributes to this debate in trying to verify whether the competitive advantage that relies on the firm’s resources is sustainable, especially in small firms. We used a sample of almost 15,000 Spanish firms to test the impact that the firm and the industry effects have on sustainable performance, for both small and large firms, applying hierarchical linear modelling with a variable measured through time-varying parameters. Our results confirm the absolute importance of the firm effect on sustainable organizational performance, regardless the firm size, and show that, even though the industry effect has little weight in explaining sustainability, it is significantly higher in the case of small firms. This means that managers must concentrate efforts on providing their firm with the necessary resources to achieve a competitive advantage while choosing a good sector to position itself.

2020 ◽  
Vol 12 (18) ◽  
pp. 7414
Author(s):  
Elena Cizmaș ◽  
Emőke-Szidónia Feder ◽  
Mădălina-Dumitrița Maticiuc ◽  
Silvia Vlad-Anghel

This paper examines the effects of management functions on the performance of diverse teams working on projects in the Information Technology (IT) industry, as well as the impact of their performance on organizational sustainable performance. Grounded on organizational management and work team management specific empirical studies and literature, we clarified the content of management functions in the framework of teamwork and acknowledged manners to express the performance of teams distinguished through diversity, as well the most relevant positive effects of team results on organizational performance. On the above basis, we built the online questionnaire. The study involved 189 respondents, who work either in Romania or in the Czech Republic on IT field specific projects. Empirical results show that, individually, some management functions are connected with co-workers’ and teams’ performance, while others are not, but considered together, in interdependence with joint effects, they influence the team’s performance and the organization’s performance from the perspective of its sustainable strategic competencies.


2015 ◽  
Vol 35 (12) ◽  
pp. 1688-1709 ◽  
Author(s):  
Xun Li ◽  
Qun Wu ◽  
Clyde W. Holsapple

Purpose – Best-value supply chains characterized by agility, adaptability, and alignment, have become a crucial strategic means for firms to create and sustain competitive advantage in today’s turbulent environment. The purpose of this paper is to investigate linkage between best-value supply chains and firms’ competitive performance. Design/methodology/approach – In Study 1, survey data from 76 firms is used to test the impact of the three qualities of best-value supply chains on firms’ competitive performance. In Study 2, to test if a firm’s competitive advantage can be sustained through building best-value supply chains, a long-run performance analysis is conducted, which is based on a stock portfolio of firms identified from the American Marketing Association’s annual list of “Supply Chain Top 25.” Findings – The results of Study 1 indicate that the three qualities of best-value supply chains are positively related to firms’ competitive performance. The results of Study 2 show that firms having best-value supply chains generate significant and positive abnormal returns for shareholders over time. Originality/value – This is a multiple-method research, providing two-level empirical evidence to the investigation of theoretical linkage between best-value supply chains and firms’ competitive performance.


2019 ◽  
Vol 28 (2) ◽  
pp. 79-90
Author(s):  
Maryono Maryono ◽  
Imam Ghozali ◽  
Amie Kusumawardhani ◽  
Mahelan Prabantariksa

This study aims to develop a comprehensive integrated model which helps in explaining the impact of value chain integration’s (VCI)’s and relational capability impact on co-innovation in a network and competitive advantage. It also explores the role of value network-based co-innovation as a mediator in the relationship between supply chain integration and competitive advantage, and in the relationship between relational capabilities and competitive advantage of a housing bank sector. The study suggests that firm gains competitive advantage by utilizing value chain integration and relational capability. It is argued here that co-innovation based on value network has mediating role to create competitive advantage. The paper provides a discussion and implication on where value lies and how value is co-created in network of interdependent relationship and illustrate this by sketching a value map in network relationship and possible innovations that can be co-created in housing bank ecosystem. The study involved a single government owned bank located in different cities, therefore the results should be generalized cautiously. This paper constitutes an attempt to stimulate efforts and provide directions on the further conceptual development of value network-based co-innovation (VNBC). The newly developed measure of VNBC and CA exempt from past conceptual streams of the determinant of CA, could be used for valid measurements in future empirical studies in the field of strategic management. The paper provides a practical implications for managers to identify value and utilize new way of analyzing value-chain to create co-innovation within housing bank ecosystem. It also allows manager to practicing relational capability which gives the most impact to competitive advantage..


2019 ◽  
Vol 11 (11) ◽  
pp. 3006 ◽  
Author(s):  
Jaffar Abbas ◽  
Saqlain Raza ◽  
Mohammad Nurunnabi ◽  
Mohd Sobri Minai ◽  
Shaher Bano

This precise study is the first to perform a focalized investigation on the relationship between entrepreneurial business networks and sustainable performance of small firms. The entrepreneurial business network is a multifaceted business network of business firms, working together to achieve business objectives. Business relationships and firm aggregations are the main categories of entrepreneurial business networks, which help small and medium-sized enterprises to become more dynamic, innovative and competitive. The entrepreneurial business network is a networking, which provides a platform to build business relationships, identify, develop or act upon economic opportunities, share information and seek potential business partners for ventures. However, few studies have sought to understand the association of entrepreneurial business network (EBN) and firms’ sustainable performance in the context of Pakistan. This investigation aims to examine the relationship between EBN and small firms’ sustainable performance by applying the Smart PLS-SEM software V-3.2.8. This study explores how dynamic capabilities mediate the relationship between entrepreneurial business network and sustainable performance of small firms. The data received reports on small firms, manufacturing surgical instruments. The findings indicated that the entrepreneurial business network had a significant positive relationship with dynamic capabilities, which in turn presented a positive relation to a sustainable performance of small firms. By developing sustainable EBN, small firms can achieve sustainable performance by implementing dynamic capabilities in a competitive environment. The results affirmed that highly entrepreneurial firms showed a tendency to create a business network for achieving sustainable performance. The results also revealed that firms using business networks and dynamic capabilities efficiently; achieved their sustainable performance. The findings indicated that the study proposed a holistic and systematic model to achieve sustainable performance through firms’ dynamic capabilities. The generalizability of these findings provides useful insight and direction for future studies in Pakistan.


2020 ◽  
Vol 12 (22) ◽  
pp. 9687
Author(s):  
Mahmoud Gebril Taha ◽  
Tomás F. Espino-Rodríguez

In recent years, the concept of an organizational culture in hotels has held an important position on both a theoretical and practical level because this culture significantly affects organizational performance and the strategies adopted by hotels. Therefore, it is considered one of the key factors in determining hotels’ tendency towards outsourcing and sustainable performance. In this study, we aim to analyze the impact of the organizational culture on the level of outsourcing and sustainable performance. To do so, we will use the Competing Values Framework (CVF), which divides organizational culture into four typologies: hierarchical, group, rational, and development cultures. A personal questionnaire was administered to the directors or managers of 114 hotels located in two Egyptian cities: Hurgada and Sharm El Sheikh. The results of the structural model suggest the negative impact of the hierarchical and development cultures on the level of outsourcing. The results show a positive influence of the four types of organizational culture on sustainable performance, suggesting that these hotels have a strong interest in sustainability and the environment. The findings reveal a negative relationship between the level of outsourcing and sustainable performance. Finally, this study presents academic and practical implications, as well as recommendations for future research.


1983 ◽  
Vol 43 (4) ◽  
pp. 953-980 ◽  
Author(s):  
David C. Mowery

The literature on the development of American industrial research suggests that during the twentieth century large firms “dominated” industrial research, and reaped the majority of the benefits from such activity. This paper utilizes new data to analyze both the relationship between firm size and research employment and the impact of research activity on firm growth and survival during 1921–1946. The results suggest that large firms were no more research-intensive than were small firms during the 1921–1946 period. Research activity significantly enhanced the probability of firms' survival among the ranks of the 200 largest manufacturing firms during 1921–1946. Research employment also improved the growth performance of both large and small firms during 1933–1946.


2017 ◽  
Vol 14 (06) ◽  
pp. 1750038 ◽  
Author(s):  
Derya Findik ◽  
Berna Beyhan

This paper aims to introduce a qualitative indicator to measure innovation performance of Turkish firms by using firm-level data collected by Turkish Statistical Institute (TURKSTAT) in 2008 and 2009. We propose a new indicator to measure the innovation performance which is simply based on the perception of firms regarding to the impacts of innovation. In order to create performance indicators, we conduct a factor analysis to group the firms’ perceptions on the impacts of innovation. Factor analysis gives us product and process-oriented impacts of innovation. There are significant differences among product innovators, process innovators and firms engaged in both product and process innovations with respect to their perceptions on product and process-oriented impacts of innovation. Among these three groups, product- and process-oriented impacts provide a highest value for the firms that perform both product and process innovations. As far as the link between firm characteristics and the impact of innovation is considered, there is a significant difference between small and large firms with respect to their perceptions on product-oriented impact of innovation. While product-oriented impact is larger for small firms, large firms focus more on process-oriented impact. Anova results also indicate that perceptions on process-oriented impact significantly differ among exporter firms, domestic market-oriented firms and firms being active in internal and external markets. Process-oriented impact generates results in favor of exporting firms.


2018 ◽  
Vol 5 (2) ◽  
pp. 230-247
Author(s):  
Yuddy Giovanna Priscilla

The purpose of this study is to measure the influence of core competencies consisting of organizational resources (shared vision, cooperation and empowerment) and organizational capabilities (knowledge management capabilities and dynamic capabilities) on the company's performance through competitive advantage in Small and Medium Industries in Batam to be able to face competition business is getting tighter due to the impact of the Asean Economic Community (AEC). The sample was taken from 105 top-level management as owners or managers of 105 Small and Medium Industries companies that have characteristics in accordance with Law No. 3 of 2014 concerning the regulation of small and medium industries using Purposive Sampling method. This study uses a comparative causal approach. The results of this study indicate that organizational resources have no significant effect on competitive advantage, but organizational resources have a significant impact on company performance. While the ability of the organization, by using the mediating role of competitive advantage has a significant effect on the performance of the company, but the ability of the organization does not have a significant direct effect on the company's performance. And for the mediation itself (competitive advantage) has a significant influence on the dependent variable (organizational performance).   Keywords: Core Competence; Competitive Advantage;Organizational Resources; Organizational Capability; Organizational Performance


In knowledge intensive industries such as the Business process Outsourcing and the Offshoring or shared service centres, the approach to learning has a significant role to play in deriving competitive advantage from domain experts who have had exposure to multiple clients who may have had a presence across the globe. The organizational experience gathered over a period of time is most relevant when redesigning processes, leveraging automation and driving business impact through higher revenue for the clients. The BPO industry is at a point of inflection where retaining top performers to showcase deep domain expertise, access to technology and a learning culture can be a huge differentiator that influences client’s choice of vendor partners. The current paper provides a Learning organization framework and establishes a link with indicators of organizational performance – employee retention, competitive advantage and financial performance. A questionnaire survey of managers from the BPO sector in India has been conducted. The findings indicate a that a robust learning organization is critical to retaining talent and gaining competitive advantage both of which have a mediating effect on the financial performance of the organization. Conclusions have been drawn from the statistical analysis and implications for the industry have been recommended.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
César-Augusto Bernal ◽  
Norbey Amaya ◽  
Alicia Gaviria-Peñaranda ◽  
Anne Marie Zwerg-Villegas

PurposeThe aim of this study is to analyze the importance of knowledge in reaching organizational objectives (long-term organizational goals) and in constructing competitive advantage (value-added) and identifying the impact of this knowledge on organizational performance of franchised restaurants in an emerging market.Design/methodology/approachLikert-scale surveys were applied to 50 managers representing 80% of the franchised restaurant business in Bogotá, Colombia. Data processing was performed through descriptive statistics, multiple correspondences analysis (MCA) and logit regression (LR).FindingsResults indicate that 1) of the set of factors that contribute to the achievement of franchise objectives, personnel motivation and continuous environmental scanning are the most important; 2) the primary sources of knowledge for construction of competitive advantage are clients and providers; and 3) the most significant impact of knowledge occurs in human resource and organizational development and in increased earnings.Practical implicationsThe study provides evidence of the role and the impact of knowledge in the performance of franchised restaurants and thereby contributes to academic analysis and managerial decision-making.OriginalityThis study provides aggregated and disaggregated analysis of empirical data on the role of knowledge in franchised restaurants, a sector with limited extant research in the context of emerging markets.


Sign in / Sign up

Export Citation Format

Share Document