Contrasting IT Capability and Organizational Types

Author(s):  
Terry A. Byrd ◽  
Linda W. Byrd

The Resource-Based View (RBV) has become one of the most popular ways to examine the impact of IT on firm performance. An increasing number of researchers are using the theoretical underpinning of the RBV to ground their research in investigating this relationship. This paper follows in this tradition by developing multidimensional measures for two dimensions of IT capability, inside-out IT capability and spanning IT capability. In this regard, the authors relate these dimensions to firm performance as profit ratios and cost ratios. Inside-out capability is the IT resources deployed from inside the firm in response to market requirements and opportunities. However, spanning IT capability involves both internal and external analysis and is needed to integrate the firm’s inside-out and outside-in IT competences. This study also makes an exploratory comparative assessment of the relative impact of inside-out IT capability and spanning IT capability, while analyzing the differences on the impact of IT capability in diverse types of organizations. Finally, the authors give evidence that different dimensions of IT capability may have different effects on performance measures.

2010 ◽  
Vol 22 (4) ◽  
pp. 1-23 ◽  
Author(s):  
Terry Anthony Byrd ◽  
Linda W. Byrd

The Resource-Based View (RBV) has become one of the most popular ways to examine the impact of IT on firm performance. An increasing number of researchers are using the theoretical underpinning of the RBV to ground their research in investigating this relationship. This paper follows in this tradition by developing multidimensional measures for two dimensions of IT capability, inside-out IT capability and spanning IT capability. In this regard, the authors relate these dimensions to firm performance as profit ratios and cost ratios. Inside-out capability is the IT resources deployed from inside the firm in response to market requirements and opportunities. However, spanning IT capability involves both internal and external analysis and is needed to integrate the firm’s inside-out and outside-in IT competences. This study also makes an exploratory comparative assessment of the relative impact of inside-out IT capability and spanning IT capability, while analyzing the differences on the impact of IT capability in diverse types of organizations. Finally, the authors give evidence that different dimensions of IT capability may have different effects on performance measures.


2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Ehsan Asgharian ◽  
Misagh Tasavori ◽  
Jim Andersén

Abstract Although it is widely accepted that entrepreneurial orientation (EO) improves firm performance, scholars have advised that particular attention should be paid to the context. In this research, we investigate a less explored context of franchising where business systems and procedures are usually dictated to franchisees by franchisors. Therefore, whether a franchisor should allow franchisees to pursue EO (innovativeness, proactiveness, risk-taking, competitive aggressiveness, and autonomy) is not clear. In the context of franchising, the majority of prior studies have mainly focused on the employment of EO as a unidimensional construct and at the franchisor level. In this research, we take a bottom-up perspective and evaluate the impact of different dimensions of EO on franchisees’ performance. Our analysis of a multi-group of 183 restaurant franchisees located in Sweden and Iran reveals that only the pursuit of proactiveness and competitive aggressiveness improves a franchisee’s performance and other dimensions do not play a significant role in improving performance in this context.


2013 ◽  
Vol 11 (1) ◽  
pp. 723-734 ◽  
Author(s):  
Athula Manawaduge ◽  
Anura De Zoysa

This paper examines the impact of ownership structure and concentration on firm performance in Sri Lanka, an emerging market in Asia. The study estimates a series of regressions using pooled data for a sample of Sri Lankan-listed firms to investigate the impact of ownership concentration and structure on firm performance based on agency theory framework, using both accounting and market-based performance indicators. The results of the study provide evidence for a strong positive relationship between ownership concentration and accounting performance measures. This suggests that a greater concentration of ownership leads to better performance. However, we found no significant impact using market-based performance measures, which suggests the existence of numerous market inefficiencies and anomalies. Furthermore, the findings of the study show that ownership structure does not have a significant distinguishable effect on performance.


2018 ◽  
Vol 15 (05) ◽  
pp. 1850040 ◽  
Author(s):  
Anne W. Fuller

This paper looks at the vital role of industrial research and development (R&D). The increased outsourcing of industrial R&D is contrasted with a resource-based view of competitive advantage which maintains capabilities that are valuable, rare, imitable, and non-substitutable (VRIN), and should be internalized in the firm. Traditional business formation literature is also supportive of keeping R&D “inhouse”. R&D outsourcing research is leveraged to posit possible reasons for the increased amount of outsourced R&D. Testable propositions are included that look at factors for R&D outsource decisions and also the impact of these decisions on firm performance. An R&D entropy statistic is introduced as well as several R&D characteristics useful in the decision-making process to create R&D.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahfuzur Rahman ◽  
Dieu Hack-Polay ◽  
Sujana Shafique ◽  
Paul Agu Igwe

PurposeInternationalisation is considered as a key strategy for the growth of Small and Medium Enterprises (SMEs). The purpose of this paper is to examine the relationship between dynamic capability, SMEs internationalisation and firm performance in the context of emerging economies and to evaluate the impact of financial, asset and market expansion on internationalisation of SMEs.Design/methodology/approachUsing primary data from 212 SMEs from Bangladesh, structural equation modelling and mathematical (hierarchical reflective) model, the analysis enabled the measurement of the casual relationship on the impacts of internationalisation.FindingsThe results revealed that internationalisation of SMEs has significant impact on both financial and non-financial performance of SMEs in an emerging economy- Bangladesh. The paper found internationalisation impacts on two dimensions (financial and non-financial) with eight defined indicators – higher sales, higher profit, assets maximisation, market expansion, competitive advantage, better reputation, better customer service and added knowledge.Originality/valueDespite several studies that examine the relationship between SME internationalisation and firm performance, limited research exists on emerging economies. This is contrary to the fact that SMEs are one of the main vehicles for growth in those economies such as Bangladesh. In this research, the authors use the theories of dynamic capabilities to conceptualise how internationalisation becomes a core SME capability for SMEs in an emerging economy.


2018 ◽  
Vol 35 (5) ◽  
pp. 1034-1059 ◽  
Author(s):  
Pankaj Kumar ◽  
J. Maiti ◽  
Angappa Gunasekaran

Purpose Within the operations management literature, quality management (QM) has been one of the most popular research areas over the last few decades. The impact of QM systems on firm performance has been the subject of constant interest and challenge among researchers. Last such review was done in 2002 based on QM-related articles published between 1994 and 1999 and these were primarily on Total Quality Management (TQM). In the last 18 years, a large number of empirical studies have been attempted to investigate QM system-performance relationships in different contexts, covering not only TQM but also other QM systems such as ISO 9001, Total Productive Maintenance (TPM), Lean Manufacturing, Theory of Constraints (TOC), and Six Sigma Continuous Improvement projects. The paper aims to discuss these issues. Design/methodology/approach Based on an extensive review of 263 papers published in 17 reputed journals during the period 2000 to 2017, this paper shows the reflections of QM systems with respect to study of different QM systems, type of research designs being used, performance categories and metrics being used, and application of tools/techniques. Findings The literature review has revealed several gaps in research in the area of QM and calls for research on: empirical longitudinal case studies; implementation of multiple QM systems; identification of leading indicators of firm’s performance; standardization of performance measures; safety, environment and health-related performance measures; the differences in the QM systems on firm’s performance for manufacturing vs service organizations; application of QM systems in developing countries including Asian countries; and impact of ISO 9001 QM system on firm’s performance. Originality/value The literature reviews in the past had considered only the TQM-related articles published in reputed journals and did not cover other QM systems such as TPM, TOC, Toyota Production System, Six Sigma, ISO 9001 QMS, etc., which have also been widely used in many organizations, more so in the last 15 years.


2015 ◽  
Vol 26 (1) ◽  
pp. 172-194 ◽  
Author(s):  
Hefu Liu ◽  
Qian Huang ◽  
Shaobo Wei ◽  
Liqiang Huang

Purpose – The purpose of this paper is to derive a model to examine how Information Technology (IT) capability affects internet-enabled supply and demand process integration, which will eventually improve firm performance. In addition, the moderating effects of industry type in the research framework are explored. Design/methodology/approach – Data were obtained from a survey administered to 261 firms in the manufacturing and services industry in China. The structural equation modeling approach is used to test the hypotheses. The study further applied the t-test to compare the path coefficiencies between manufacturing and service. Findings – Results from the survey indicate that internet-enabled supply and demand process integration is affected by IT capability, and can directly impact firm performance. The results further indicate that manufacturing and services firms may benefit from IT capability in different ways. Originality/value – The current paper contributes knowledge on the value-realizing mechanism of internet-enabled supply chain integration (SCI) from a resource-based view. It presents a multidimensional explanation of the relationships among IT capability, internet-enabled SCI, and firm performance.


2017 ◽  
Vol 10 (1) ◽  
pp. 44-57
Author(s):  
Jyoti Paul

Because of recent failures in the past, the role of Board and the Board monitoring have become important. The directors are expected to be more accountable. In this study, the researcher tries to investigate the relationship between the level of board activity and firm value for firms in FMCG sector over a three-year period from 2010–2011 to 2012–2013. The primary aim of the article is to provide empirical evidence and specifically find out the impact of board activity measured by number of meetings and its impact on firm performance. The results indicate that the attendance in board meetings is significantly positively correlated with ROA. The OLS results with both the performance measures show that the point estimates of attendance at board meetings were significant indicating that attendance in such meetings is perceived to be an indicator of good monitoring activities of the board.


Sign in / Sign up

Export Citation Format

Share Document