Social Innovation, Environmental Innovation, and Their Effect on Competitive Advantage and Firm Performance

2012 ◽  
pp. 89-104
Author(s):  
Javier Amores Salvadó ◽  
José Emilio Navas López ◽  
Gregorio Martín de Castro
Keyword(s):  
Firm Performance ◽  
Competitive Advantage ◽  
Business Performance ◽  
Social Innovation ◽  
Core Competencies ◽  
Environmental Innovation ◽  
Innovative Strategies ◽  
And Performance ◽  
Indirect Relationship ◽  
The Relationship

The proposal below provides a special emphasis on the relationship between businesses and natural environment. It is argued that the inclusion of environmental criteria to business activities promotes the creation of new core competencies, offering a creative and innovative perspective to the organization that can lead to the achievement of sustainable competitive advantages. More specifically, we analyze both the existence of a direct relationship between Environmental Innovation and Firm Performance and the existence of an indirect relationship between the two, which highlights the mediating role of the kind of competitive advantage generated. It also provides an innovative approach, as it explains the Environmental Innovation from the literature on Social Innovation, considering Environmental Innovation as an expression of Social Innovation through the incorporation of ethical arguments to products, processes and organizational modes of the company. The main contributions of this work can be summarized as follows: (1) It explains the nature of Environmental Innovation through the Social Innovation literature, which allows consideration of some key aspects of administrative and technological innovations that have not been taken into account the academic literature. (2) The different types of environmental innovations are analyzed as a necessary step to understand the strategic options in the environmental field. (3) Environmental Innovation is related to business performance. The practical implications of the relationship between environmental innovation and performance are of great importance, since it directly influence the type of environmental strategy chosen, allowing the company to choose from innovative strategies (based on pollution prevention) or more conservative strategies (emissions control).

Assessing the mediating effect of sustainable competitive advantage on the relationship between organisational innovativeness and firm performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Vural Çağlıyan ◽  
Melis Attar ◽  
Aleem Abdul-Kareem
Keyword(s):  
Firm Performance ◽  
Competitive Advantage ◽  
Customer Value ◽  
Business Performance ◽  
Mediating Effect ◽  
Survey Method ◽  
Sustainable Competitive Advantage ◽  
Content Type ◽  
Theoretical Contribution ◽  
The Relationship

Purpose This study aims to assess the mediating effect of sustainable competitive advantage (SCA) on the relationship between organisational innovativeness (OI) and performance of small- and medium-sized enterprises (SMEs) operating in Konya, Turkey. Design/methodology/approach A survey method is used to collect the necessary data for this research. A total of 264 respondents from 83 SMEs partook in the study. In choosing the sample size, both purposive sampling and simple random techniques are used. The data gathered are analysed using SPSS program and Hayes PROCESS macro v.3.4.1. Findings The results of the analyses reveal that OI has a statistically significant positive effect on SCA and firm performance (FP). Moreover, SCA is found to have a mediating effect on the relationship between OI and FP. Practical implications Policymakers and management of SMEs need to show great commitment to innovativeness and relate it to SCA to create superior customer value, thereby leading to a holistic and long-term FP. Originality/value This study brings to the fore empirical evidence on how SCA serves as a mediator between OI and FP. It also contributes to the literature by focusing on three distinct but related variables. The study makes theoretical contribution by highlighting the role of the resource-based theory in enhancing business performance and SCA through strategic internal resources and innovative activities.

scholarly journals Empirical Analysis on Corporate Transparency, Competitive Advantage, and Performance: An Insight of Muscat Securities Market

2021 ◽  
Vol 4 (2) ◽  
pp. 96-102
Author(s):  
Ashrf Alzman Mohammed Osman Gani ◽  
Abdul Hamid Said Salim Al Rahbi ◽  
Essia Ries Ahmed
Keyword(s):  
Firm Performance ◽  
Competitive Advantage ◽  
Secondary Data ◽  
Securities Market ◽  
Managerial Accounting ◽  
High Transparency ◽  
Corporate Transparency ◽  
Firm Financial Performance ◽  
And Performance ◽  
The Relationship

The main purpose of define the relationship between firm performance and corporate transparency. As well, this study determines the relationship between firm performance and competitive advantage. In this study, a sample size of 60 was designated from three sectors (Financial, Industrial, and Service) in Muscat Securities Market (MSM). The secondary data collected is examined with Smart PLS 3.0. The findings of the study have been confirming that high transparency led to increasing the performance of firms. Thus, high transparency enhances performance. The findings revealed that corporate transparency is positively related to competitive advantage, which in turn enhances managerial accounting measurements. Thus, corporate transparency is indeed an important tool for competitive advantage and will enhance firm financial performance. The findings of study found that the majority of companies in Oman has very good disclosed in financial statement transparency and  less disclosure in  social transparency part.

scholarly journals A RESOURCE-BASED PERSPECTIVE ON THE RELATIONSHIP BETWEEN SERVICE DIVERSIFICATION AND FIRM PERFORMANCE: EVIDENCE FROM ITALIAN FACILITY MANAGEMENT FIRMS

2012 ◽  
Vol 13 (3) ◽  
pp. 567-585 ◽  
Author(s):  
Claudio Giachetti
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Competitive Advantage ◽  
Service Industry ◽  
Facility Management ◽  
Firm Financial Performance ◽  
Diversification Strategies ◽  
And Performance ◽  
Levels Of Service ◽  
The Relationship

In this article, a theoretical framework to study the effect of service diversification on firm financial performance is demonstrated. Data on 48 Italian facility management firms from between 2000 and 2009 show a consistent inverse U-shaped relationship between service diversification and firm performance, with the slope positive at low and moderate levels of service diversification but negative at high levels of service diversification. Further, the results show that firm experience in the service industry and firm affiliation to a consortium positively moderate the relationship between service diversification and performance. The results of this study provide evidence of the importance of service diversification strategies for gaining a competitive advantage.

Readiness to Adopt E-Business Among SMEs in Malaysia

2013 ◽  
pp. 18-36
Author(s):  
Malliga Marimuthu ◽  
Azizah Omar ◽  
T. Ramayah ◽  
Osman Mohamad
Keyword(s):  
Developing Countries ◽  
Competitive Advantage ◽  
Business Strategy ◽  
Business Performance ◽  
The Internet ◽  
Survey Questionnaire ◽  
Direct Influence ◽  
Innovative Strategies ◽  
Readiness To Adopt ◽  
The Relationship

The adoption of the Internet as a business strategy tool is becoming an important way for firms to expand their business through innovative strategies. This study provides an insight concerning the factors that influence the adoption of the Internet to support business activities, also known as e-business among SMEs in Malaysia. In addition, the study also examines the relationship between e-business adoption and the business performance of the SMEs. Using a structured survey questionnaire, a usable response was received and statistically analyzed from 177 SMEs that currently use e-business. The research found that organizational characteristics, technology characteristics and environmental characteristics influence e-business adoption and that the adoption of e-business has a direct influence on the business performance of the SMEs. The findings of this study can aid and encourage the SMEs in developing countries to build a competitive advantage by using the Internet in their business strategy practices.

scholarly journals EXPRESS: Unbundling the Effects of Internationalization on Firm Performance in Emerging Economies: The Moderating Effects of Strategic Resource Decisions

2021 ◽  
pp. 1069031X2110306
Author(s):  
Nilay Bicakcioglu-Peynirci ◽  
Robert E. Morgan
Keyword(s):  
Firm Performance ◽  
Emerging Economies ◽  
Emerging Market ◽  
Strategic Marketing ◽  
Slack Resources ◽  
Moderation Effect ◽  
Strategic Resource ◽  
And Performance ◽  
Resource Decisions ◽  
The Relationship

We investigate how strategic resource decisions—concerning slack resources and strategic marketing ambidexterity—influence the relationship between internationalization and firm performance of emerging market firms. Based upon the resource-based view, we synthesize two dominant, yet divergent, perspectives that explain the respective resource slack advantages and liabilities in the internationalization literature: the flexible capacity and the efficient capacity perspectives. We also explore the moderating role of strategic marketing ambidexterity which comprises a bundle of marketing activities covering both exploitation-dominant actions and exploration-dominant actions. We empirically examine our hypothesized relationships with data from a sample of 1,683 firm-year observations for the period between 2005 and 2018 and find that distinct forms of resource slacks have contrasting effects on the relationship between internationalization and performance. Our results provide strong evidence for positive moderation effect of unabsorbed slack resources and a negative moderation effect of absorbed slack resources on the internationalization-performance relationship. We also indicate nonsignificant moderating effect of strategic marketing ambidexterity, demonstrating that internationalization attains higher firm performance regardless of its exploration-dominant or exploitation-dominant strategic emphasis in emerging economies.

scholarly journals The Holy Grail

2015 ◽  
Vol 27 (5) ◽  
pp. 714-738 ◽  
Author(s):  
Jorge Pereira-Moliner ◽  
Xavier Font ◽  
Juan José Tarí ◽  
Jose F. Molina-Azorin ◽  
Maria D. Lopez-Gamero ◽  
...  
Keyword(s):  
Environmental Management ◽  
Business Performance ◽  
Competitive Advantages ◽  
Performance Levels ◽  
Content Type ◽  
Reference Measure ◽  
Environmental Capability ◽  
And Performance ◽  
Hotel Managers ◽  
The Relationship

Purpose – This paper aims to analyse the influence of environmental proactivity on cost and differentiation competitive advantages, and to explore the double relationship between environmental proactivity and business performance. Design/methodology/approach – The population consists of all three- to five-star hotels in Spain. A sample of 350 hotels was classified according to environmental proactivity and performance levels, employing a two-step cluster analysis. Significant differences between groups were examined. Findings – The results show two types of environmental behaviour (reactive and proactive), with proactive hotels developing significantly better on both cost and differentiation competitive advantage and achieving significantly higher performance levels. Hotels which achieve above average business performance levels are significantly more environmentally proactive. Research limitations/implications – The present paper demonstrates that environmental management is related to competitive advantages and business performance. Environmental management systems are more developed in higher category, chain-affiliated and larger hotels. This could be due to having more resources to develop their environmental capability. The environmental proactivity scale employed in this study is presented as a reference measure for hotel managers to benchmark their current practices and implement environmental improvements. Originality/value – First, measuring environmental proactivity using four managerial systems (operative, information, strategic and technical) is innovative and provides a more detailed approach to measuring environmental proactivity. Second, demonstrating a double association between environmental proactivity and performance provides fresh insights into the relationship between these variables.

scholarly journals Analysis of Information Systems Capabilities and Performance of Firms in Telecommunications Industry, Kenya

2018 ◽  
Vol 6 (04) ◽  
pp. 319-327
Author(s):  
Bett, Alfred Kipyegon ◽  
Dr. Johnmark Obura ◽  
Dr. Moses Oginda
Keyword(s):  
Information Systems ◽  
Firm Performance ◽  
Telecommunications Industry ◽  
Policy Formulation ◽  
Primary Data ◽  
Executive Management ◽  
Economic Role ◽  
And Performance ◽  
Service Businesses ◽  
The Relationship

In the 21st century where economies are driven majorly by knowledge and information-based service businesses, telecommunication industries are playing a critical economic role both regionally and globally. In Kenya, with a combined subscription rate of 37.8 million based on a 2016/17 Communication Authority of Kenya report of 2017, Safaricom Kenya Limited controls about 71.2% of the subscribers, Airtel Kenya Limited is second with 17.6% with Telkom Kenya coming third with 7.4%. Finserve East Africa (Equitel) a new entrant in the market controls 3.8% of subscribers. These figures points to the fact that only Safaricom seems to be the only firm performing well. This reality forms the basis of establishing whether their difference in performance is attributable to their information systems capabilities. The purpose of this study was to analyse the relationship IS capabilities and performance of firms in the telecommunications industry in Kenya. It was anchored on Resource-Based Theory and guided by a conceptual framework with the dependent variable being firm performance while independent variable was IS capabilities. Correlational and survey research designs were used. The population of the study was 408 staff comprising all executive, management and operational level managers from the business and IT sections in each firm. A sample of 202 staff was drawn through proportionate stratified random sampling method. Primary data was collected using structured questionnaire and an interview schedule. Reliability of the research instrument was tested against Cronbach’s alpha coefficient where a reliability score of 0.814 was achieved while validity was gauged through research experts’ opinions. Data was analysed using both descriptive and inferential statistics. The findings established that IS capabilities and firm performance have a weak relationship (r = 0.409, p<0.05) which means that whenever firms in industry invested on market based IS capabilities there was a small improvement on their performance and therefore firms should invest in the development of market based IS capabilities since they have significant influence on their performance. This study may be useful to industry players by gaining better understanding on various information system resources that they can utilize to improve and sustain their performance besides policy formulation. By advancing a model that depicts the relationship between information systems resources and firm performance, this study may make a significant contribution to theory building in the field of information systems.

scholarly journals Intellectual Capital and Firm Performance across Pakistani Industries

2021 ◽  
Vol 11 (4) ◽  
pp. 56
Author(s):  
Muhammad Ahmad ◽  
Rohani Mohd Rus
Keyword(s):  
Firm Performance ◽  
Intellectual Capital ◽  
Value Added ◽  
Service Industries ◽  
Financial Firms ◽  
Generalized Methods Of Moments ◽  
Capital Efficiency ◽  
And Performance ◽  
Methods Of Moments ◽  
The Relationship

This study sheds light on the differences in intellectual capital (IC) efficiencies across non-financial sectors in Pakistan and determines the relationship between IC and firm performance. The study used sample of 155 non-financial firms from the manufacturing and service industries of Pakistan for the period 2009-2018. This study contributes to IC research by applying modified value-added intellectual capital (MVAIC) model with relationship to firm performance (return on assets and Tobin’s Q) of Pakistani non-financial firms which was overlooked by the previous researchers. In addition, to deal with endogeneity, the dynamic panel generalized methods of moments regression is applied to test the relationship between IC and performance. Findings provide evidence that different sectors in non-financial industries manage IC components differently. IC increases both market-based performance and accounting-based performance of Pakistani firms. Among all IC components, human capital efficiency is an important determinant of firm performance. The implication can provide help managers and investors to understand the IC to increase the firm performance.

Aliansi Strategis dan Kinerja Perusahaan: Perspektif Teori Institusional

2020 ◽  
Vol 1 (2) ◽  
pp. 83-90
Author(s):  
Rebi Fara Handika
Keyword(s):  
Firm Performance ◽  
Institutional Theory ◽  
Empirical Research ◽  
Strategic Alliances ◽  
Strategic Alliance ◽  
Point Of View ◽  
Theory Point ◽  
And Performance ◽  
The Relationship

Abstract   This paper discussed the company's motive to join a strategic alliance from the institutional theory point of view. The theory views that strategic alliances are considered as the medium to acquire legitimation from the environment. Such legitimation then improves the company’s competitive positions and performance. Further, we propose the framework to discuss the relationship between strategic alliances and a company’s performance. The paper proceeds as follows: in the next section, we discuss the institutional theory, the strategic alliance, and firm performance. Afterward, we develop the propositions and discuss the implications for future empirical research.   Abstrak   Artikel ini membahas motif perusahaan untuk bergabung dengan aliansi strategis dari sudut pandang teori institusional. Teori ini memandang bahwa aliansi strategis dianggap sebagai media untuk memperoleh legitimasi dari lingkungan. Legitimasi tersebut kemudian dipercayai akan meningkatkan posisi kompetitif dan kinerja perusahaan. Selanjutnya, kami mengusulkan framework untuk membahas hubungan antara aliansi strategis dan kinerja perusahaan. Artikel ini akan dilanjutkan sebagai berikut: pada bagian berikutnya, kita membahas teori institusional, aliansi strategis, dan kinerja perusahaan. Setelah itu, kami mengembangkan proposisi dan membahas implikasi untuk penelitian empiris di masa depan.

Innovative Approaches to Improving the Transfer and Sustainability of Learning

2014 ◽  
pp. 111-126 ◽  
Author(s):  
Michael P. Leimbach
Keyword(s):  
Literature Review ◽  
Competitive Advantage ◽  
Learning Transfer ◽  
Meta Analysis ◽  
Performance Outcomes ◽  
Performance Impact ◽  
Difference Scores ◽  
Effective Learning ◽  
And Performance ◽  
The Relationship

The importance of learning transfer in ensuring that learning contributes to an organization's competitive advantage has been undermined in organizational practice. There are two major reasons for this: 1) few studies directly explore the relationship between transfer and performance improvement, and 2) most existing transfer models are too complex for practitioners to implement. The purpose of this chapter is to explore the link between learning transfer activities and performance outcomes, and to create a framework for implementing an effective learning transfer solution. A targeted literature review meta-analysis was used to explore the performance impact of training vs. training plus transfer activities. The authors compute “difference scores” representing the percentage of improvement from the transfer activities over training alone. Activities are categorized into a framework of eleven critical learning transfer actions. They then implement the elements of the Learning Transfer Framework in three demonstration projects. By incorporating findings from the literature review, meta-analysis, and the demonstration projects, the authors propose a new transfer framework that is effective and easy to implement. Implications and directions for future researchers are advanced.

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