How Do Groups Matter?

2014 ◽  
Vol 5 (3) ◽  
pp. 47-64 ◽  
Author(s):  
Bau-Jung Chang ◽  
Yu-Pin Chen
Keyword(s):  
Firm Performance ◽  
Response Speed ◽  
Environmental Dynamism ◽  
Multiple Sources ◽  
Competitive Response ◽  
Strategic Action ◽  
Response Characteristics ◽  
Competitive Dynamics Research ◽  
The Impact ◽  
The Relationship

The purpose of this study is to examine the relationship between competitive responses and performance, subject to environmental dynamism and strategic action types, to understand competitive responses under moderating effects. This study employed a structured content analysis of coding data from multiple sources and collected competitive actions and responses for the period between 1999 and 2011 in the Taiwanese banking industry. The results show that response likelihood, response imitation and response speed are positively associated with firm performance and that environmental dynamism weakens the relationships among firm performance, response likelihood and response speed. Furthermore, the intensity of strategic action strengthens the relationship between response imitation and firm performance. This study first investigates the roles of environmental dynamism and action types on the relationship between competitive response characteristics and firm performance. This study considers not only the impact of individual firms' responses on their performance but also the impact of collective actions taken by other firms, thus providing new insights in competitive dynamics research.

Does investment in innovation impact firm performance in emerging economies? An empirical investigation of the Indian food and agricultural manufacturing industry

2021 ◽  
Vol 13 (2) ◽  
pp. 233-248
Author(s):  
Manogna R.L. ◽  
Aswini Kumar Mishra
Keyword(s):  
Firm Performance ◽  
Manufacturing Industry ◽  
Emerging Market ◽  
Developed Countries ◽  
Emerging Economy ◽  
Content Type ◽  
Agricultural Industry ◽  
Indian Food ◽  
The Impact ◽  
The Relationship

Purpose The study aims to analyze the impact of Research & Development (R&D) intensity on the firm’s performance, measured by growth of sales in the emerging market like India. Innovation strategy and its outcomes for firms may be different in developing countries as compared to developed countries. Thus, a study that focuses on the emerging economy like India, with a majority of the population dependent on agriculture, is of prime importance to the firm performance in the food and agricultural manufacturing industry. For this study, the broader focus will be on one widely recognised factor which may influence the growth rate of firms, i.e. investment in innovations which is in terms of R&D expenditure. Design/methodology/approach The paper investigates the relationship between the R&D efforts and growth of firms in the Indian food and agricultural manufacturing industry during 2001–2019. To empirically test the relationship between firm’s growth (FG) and R&D investments, system generalised method of moments technique has been used, hence enabling to avoid problems related to endogeneity and simultaneity. Findings The findings reveal that investments in innovations have a positive effect on the growth of firms in the Indian food and agricultural manufacturing industry. Investment in R&D also enables the firms to reap benefits from externalities present in the industry. Further analysis reveals that younger firms grow faster when they invest in R&D. More specifically, this paper finds evidence in the case of the food and agricultural industry that import of raw materials negatively affects the FG and export intensity positively affects the growth in the case of R&D firms. Research limitations/implications This study suggests that the government should encourage the industries to invest optimally in R&D projects by providing favourable fiscal treatments and R&D subsidies which are observed to have positive effects in various developed countries. Originality/value To the best of the author’s knowledge, the current paper is the first to analyse the impact of innovation in food and agricultural industry on firm’s performance in an emerging economy context with the latest data. This paper agrees that a government initiative to increase private R&D expenditure would have favourable effects on FG as growing investments in R&D lead to further growth of the firms.

scholarly journals Uncovering the Relationship of Supply Chain Management and Firm Performance: Evidence from Textile Sector of Pakistan

2018 ◽  
Vol 10 (2) ◽  
pp. 23-29
Author(s):  
Zahid Hussain ◽  
Ahmad Bin Jusoh ◽  
Muhammad Sarfraz ◽  
Khalil Ur Rehman Wahla
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Firm Performance ◽  
Research Paper ◽  
Chain Management ◽  
Relationship Of ◽  
The Impact ◽  
The Relationship ◽  
Textile Sector

The purpose of this research paper was to find the impact of the supply chain on firm performance in Textile firm of Pakistan. Data was collected through questioners in the month of March 2018, Approximately 30 questioners were distributed among the managers of the ten textile organizations in Faisalabad which are expected to have the best knowledge about the supply chain operations and its impact on the performance of the organization, all of them responded positively. It is found that dimensions associated with SCM methods as well as explain the connection amongst SCM methods, aggressive benefit, as well as firm performance. The actual study focuses on the causal associations in between SCM exercise, aggressive benefit as well as firm performance as well as ignores the actual feasible recursive associations.  

scholarly journals Implications of ownership identity and insider’s supremacy on the economic performance of the listed companies

2014 ◽  
Vol 11 (4) ◽  
pp. 399-411
Author(s):  
Qaiser Rafique Yasser ◽  
Abdullah Al-Mamun
Keyword(s):  
Firm Performance ◽  
Emerging Market ◽  
Research Question ◽  
Positive Influence ◽  
Theoretic Approach ◽  
Main Research ◽  
The Government ◽  
High Level ◽  
The Impact ◽  
The Relationship

We adopt a multi-theoretic approach to investigate a previously unexplored phenomenon in extant literature, namely the differential impact of ownership identity and director dominate shareholding on the performance of emerging market firms. The main research question addressed is, whether the impact of this relationship is conditional on the identity of the block investor. First, the relationship between overall block ownership and firm performance is tested by employing multiple regressions on 500 firm-year observations for the period from 2007 to 2011. Then, the block ownership is classified as the state, individuals, insiders, financial institutions, corporate and foreign investors and the influence of these identities on firm performance is examined. It was found that only the ownership categories such as the government, institutions and foreign ownership have positive influence on the firm performance. The results also indicate that high level of insider ownership also negatively associated with the firm performance. The main contribution of this paper is the examination of the relationship between block ownership and firm performance from the perspective of the identity of investors

scholarly journals Risk Governance Structure and Firm Performance: An (Exploratory) Empirical Study in Indian Context

2018 ◽  
Vol 1 (2) ◽  
Author(s):  
M.V. Shivaani
Keyword(s):  
Firm Performance ◽  
Governance Structure ◽  
Risk Governance ◽  
Governance Structures ◽  
Economic Implications ◽  
Leverage Ratio ◽  
Governance Index ◽  
Difference Gmm ◽  
The Impact ◽  
The Relationship

The study attempts to explore the relationship between riskgovernance structureand firm performance. In perhaps the first of its kind attempt, a normative framework for risk governance structures is being put forward. Based on the framework, an index indicating strength/quality of risk governance structures is proposed. Then, the impact of risk governance structure on firm performance is gauged. To this end, the study makes use of constituents of S&P CNX500 index and covers a ten year period from April 1, 2005 to March 31, 2015.To control for potential endogeneity among variables of interest, the study makes use of a robust and reliable methodology,‘difference-GMM’. In addition, to ensure completeness of results, the study employs control variables such as recession dummy, firm’s age, size, and growth rate and leverage ratio. The results suggest that robust risk governance structures do not necessarily lead to better firm performance. In fact, risk governance index is negatively related to both ROA and ROE. The relationship is not statistically significant but has wide economic implications. A prominent implication being, mere constitution of risk management committee and appointment of CRO will not improve firm performance; regulators and companies need to ensure that governance structures are not too rigid, excessively risk averse and ineffective and inefficient in decision making. Given the simplicity and reliability of the proposed risk governance index, and the recommendations put forth in the paper, the study is expected to be of immense utility in an important yet neglected area of risk governance.

Chasing productivity demands, worker well-being, and firm performance

2020 ◽  
Vol 49 (9) ◽  
pp. 1823-1843
Author(s):  
Mastura Ab Wahab ◽  
Ekrem Tatoglu
Keyword(s):  
Firm Performance ◽  
Well Being ◽  
Manufacturing Firms ◽  
Equation Modeling ◽  
Flexible Work Arrangements ◽  
Flexible Work ◽  
Content Type ◽  
Work Arrangements ◽  
The Impact ◽  
The Relationship

PurposeThis study aims to examine the impact of chasing productivity demands on worker well-being and firm performance in manufacturing firms in Malaysia. Flexible work arrangements and human resources support are used as moderators to mitigate the adverse impacts associated with chasing productivity demands.Design/methodology/approachData were collected from 213 workers from manufacturing firms through a survey questionnaire utilizing structural equation modeling.FindingsThe findings of the study show that flexible work arrangements play a significant role in moderating the relationship between chasing productivity demands and well-being, and between chasing productivity demands and firm performance. The study also shows that flexible work arrangements are important to buffer the adverse effects of chasing productivity demands on worker well-being. In addition, flexible work arrangements strengthen the positive effect of worker well-being on firm performance.Research limitations/implicationsThis study highlights the importance of flexible work arrangements in overcoming the negative impact of the relationship between chasing productivity demands and worker well-being and strengthening the positive impact of the relationship between worker well-being and firm performance.Originality/valueThis study has extended the variable of chasing productivity demands in the existing literature on the job demands–job control model, specifically in manufacturing firms.

On the path towards open innovation: assessing the role of knowledge management capability and environmental dynamism in SMEs

2017 ◽  
Vol 21 (3) ◽  
pp. 553-570 ◽  
Author(s):  
Isabel Martinez-Conesa ◽  
Pedro Soto-Acosta ◽  
Elias George Carayannis
Keyword(s):  
Knowledge Management ◽  
Open Innovation ◽  
Equation Modeling ◽  
Research Model ◽  
Environmental Dynamism ◽  
Content Type ◽  
Integrative Research ◽  
The Impact ◽  
The Relationship

Purpose This study aims to shed light on the internal and external antecedents of open innovation (OI) in the context of small- and medium-sized enterprises (SMEs), with a special focus on the role of knowledge management (KM) capability. The paper develops and tests an integrative research model which assesses the effect of internal factors on KM capability; the impact of organizational and external factors, namely, KM capability and environmental dynamism, on OI; and whether environmental dynamism moderates the relationship between KM capability and OI. Design/methodology/approach Drawing on the knowledge-based view and the social exchange and the contingency theories, this paper develops an integrative research model which analyzes several relations between organizational antecedents of KM capability and its effect on OI by using covariance-based structural equation modeling on a data set of Spanish SMEs. Findings Results confirm that information technology-supported operations and commitment-based human resource practices have a positive and significant influence on KM capability. In contrast, results do not find support for the relationship between interdepartmental connectedness and KM capability, whereas both KM capability and environmental dynamism have a direct influence on OI. Originality/value This paper adds to existing research on OI, as it is the first study that addresses the critical role of KM capability for the implementation of OI.

The Impact Of Information Technology On Performance: The Mediating Role Of Management Accounting Systems

2012 ◽  
Author(s):  
Noor Azizi Ismail
Keyword(s):  
Information Technology ◽  
Information Systems ◽  
Firm Performance ◽  
Management Accounting ◽  
Accounting Information ◽  
Accounting Systems ◽  
Mediating Role ◽  
Management Accounting Systems ◽  
The Impact ◽  
The Relationship

Kertas kerja ini melaporkan hasil kajian yang menerangkan hubungan antara kecanggihan Teknologi Maklumat (IT) dan prestasi firma yang bersaiz kecil dan sederhana (SMEs), dengan memasukkan ke dalam model kajian, keupayaan sistem perakaunan pengurusan untuk menghasilkan maklumat perakaunan pengurusan (kapasiti MAS). Bagi menguji hubungan tersebut, data telah dikumpul daripada 310 firma menggunakan kaedah soal selidik. Hasil ujian menunjukkan bahawa kecanggihan IT merupakan penentu kepada kapasiti MAS, sementara kapasiti MAS pula akan menentukan prestasi firma. Dalam kata lain, kapasiti MAS memainkan peranan sebagai penghubung antara kecanggihan IT dengan prestasi firma. Interpretasi hasil ujian ini ialah firma yang menggunakan IT yang lebih canggih akan dapat menghasilkan maklumat perakaunan pengurusan yang mencukupi dan seterusnya dapat meningkatkan prestasi firma. Kata kunci: Teknologi Maklumat, sistem maklumat, sistem perakaunan pengurusan, sistem maklumat perakaunan, industri kecil dan sederhana This paper reports the results of a study which offers an explanation for the relationship between Information Technology (IT) sophistication and performance of small and medium sized enterprises (SMEs), by incorporating into the model of the capability of management accounting systems to generate management accounting information (MAS capacity). To assess the relationship, data were collected from 310 (25% response rate) SMEs by way of questionnaire surveys. The results indicate that IT sophistication is a determinant of MAS capacity, which, in turn, is a determinant of firm performance. In other words, MAS capacity plays a mediating role in the relationship between IT sophistication and firm performance. An interpretation of the results is that those firms that employed sophisticated IT can generate sufficient management accounting information and thereby improve performance. Key words: Information Technology, information systems, management accounting system, accounting information systems, small and medium enterprises

scholarly journals Partnership-Based Supply Chain Collaboration: Impact on Commitment, Innovation, and Firm Performance

2019 ◽  
Vol 11 (2) ◽  
pp. 449 ◽  
Author(s):  
Nina Shin ◽  
Sun Park ◽  
Sangwook Park
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Structural Equation ◽  
Resource Dependence ◽  
Resource Dependence Theory ◽  
Equation Modeling ◽  
Supply Network ◽  
Supply Chain Collaboration ◽  
The Impact ◽  
The Relationship

With increasing numbers of nodes and links in supply network relationships, understanding partnership management and the required level of collaboration is important for sustainable supply network alignment. This study explores the impact of partnership orientation on partnership commitment and firm performance using a model based on social capital theory and resource dependence theory. It aims to understand the appropriate partnership orientation for the desired level of commitment and firm performance, including innovation, operational, and financial performance. Using a survey of 423 respondents representing three different partnership structure types (supplier, buyer, and parallel-aligned firms’ perspectives), the relationship between partnership orientation and commitment in enhancing firm performance is investigated using structural equation modeling. Additional analysis identifies the moderating role of commitment and investment exchange on performance. The findings show that positive relationships between both investment and contractual-based partnership orientation positively contribute to partnership commitment, but the direct association between partnership commitment and firm performance type varies by partnership structure. Furthermore, (i) investment exchange level moderates the relationship between commitment and innovation and operational performance regardless of partnership structure type, (ii) negative investment exchange signals higher firm performance from the buyer firm’s perspective, and (iii) positive investment exchange is absolutely necessary for financial performance from the supplier firm’s perspective.

The impact of service innovation on firm performance: a meta-analysis

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Changli Feng ◽  
Ruize Ma ◽  
Lin Jiang
Keyword(s):  
Firm Performance ◽  
Positive Impact ◽  
Meta Analysis ◽  
Service Innovation ◽  
Future Research ◽  
Quantitative Review ◽  
Content Type ◽  
And Performance ◽  
The Impact ◽  
The Relationship

PurposeWith the rise of service economy, many companies are attempting to gain a competitive advantage through service innovation. However, the existing research has not drawn consistent conclusions about the relationship between service innovation and firm performance. Hence, the purpose of this paper is to provide a quantitative review on the service innovation-performance relationship based on research findings reported in the extant literature.Design/methodology/approachStudies from 46 peer-reviewed articles were sampled and analyzed. A meta-analytic approach was adopted to conduct a quantitative review on the relationship between service innovation and firm performance, and the effects of any potential moderators were further explored.FindingsThe results found that service innovation has a significant positive impact on firm performance. Additionally, the relationship between service innovation and firm performance is influenced by measurement moderators (economic region and performance measurement), and contextual moderators (firm type, innovation type, customer factors and attitudes toward risk).Originality/valueThe meta-analysis has been used to explore the relationship between service innovation and firm performance, and the findings have contributed to the literature on service innovation, as well as providing future research directions.

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