Market Orientation, Alliance Governance, and Innovation

2019 ◽  
Vol 27 (1) ◽  
pp. 1-18
Author(s):  
Yu Li ◽  
Yao Chen ◽  
Yuan Li ◽  
Christopher P. Holland
Keyword(s):  
Market Orientation ◽  
Resource Dependence ◽  
Customer Orientation ◽  
Positive Impact ◽  
Radical Innovation ◽  
Resource Dependence Theory ◽  
Incremental Innovation ◽  
Contractual Governance ◽  
Alliance Governance ◽  
The Relationship

Relying on resource dependence theory and transaction cost economics, this article discusses the important role of alliance governance as a mediating mechanism in the relationship between market orientation and innovation, and compares the differences between the influences of different dimensions. The article aims to reveal the influence mechanism of different types of alliance governance on the relationship between market orientation and innovation. Based on a sample of 122 Chinese manufacturing enterprises, the article finds that: (1) contractual governance will increase when customer orientation and competitor orientation become higher, and contractual governance will affect radical innovation in a U-shaped way; (2) trust governance will increase when inter-functional coordination become higher, and trust governance has a positive impact on both radical innovation and incremental innovation (II).

scholarly journals Market Orientation Impact on Radical and Incremental Marketing Innovation: A Study of Saudi Arabia Hospital Marketing Efforts

2015 ◽  
Vol 1 (6) ◽  
pp. 101-117
Author(s):  
Alshahry Abdullah saeed A ◽  
Wang Aimin
Keyword(s):  
Saudi Arabia ◽  
Market Orientation ◽  
Customer Orientation ◽  
Saudi Arabian ◽  
Radical Innovation ◽  
Positive Influence ◽  
Incremental Innovation ◽  
Marketing Innovation ◽  
Competitor Orientation ◽  
Functional Orientation

We conducted an empirical study to measure influence of market orientation on marketing innovation in hospitals in Saudi Arabia. The sample includes 109 hospital workers that have been identified as having an adequate knowledge of the subject of research. In particular we explain the impact of customer orientation, inter-functional orientation and competitor orientation on marketing innovation. Furthermore the moderating effects of centralization and formalization on those relationships are explained. The findings of our study suggest that there is an important role of market orientation for the successful implementation of innovation and business performance of hospitals in Saudi Arabia. The results indicated that there is a positive influence of customer orientation on radical innovation and incremental innovation, a strong positive impact of competitor orientation on incremental innovation and no significant impact regarding inter-functional coordination on both incremental and radical innovation. The moderating effect of centralization on market innovation and innovation proved to be insignificant and the formalization effect had a positive influence on the customer, competitor and inter-functional orientation and radical innovation relationship. Additionally our study is valuable (for the practice, and theory) as it assisted in developing and further elaborating the science of market orientation, particularly customer and competitor orientation and inter-functional coordination, and the influence on incremental and radical service which are relevant for the financial results of hospitals in Saudi Arabia. The contribution of this research was also to develop a conceptual and theoretical understanding on incremental and radical innovation in the effort to improve performance, especially for the Saudi Arabian hospitals. The practical implication of this study is the insight and the knowledge Saudi Arabian hospital managerial staff, in implementing the concept of market orientation in relation to innovation and overall hospital performance.

scholarly journals Severe or lenient contracting with friends: the shadow of the past on contractual governance

2019 ◽  
Vol 14 (3) ◽  
pp. 370-388 ◽  
Author(s):  
Longwei Wang ◽  
Xiaodong Li ◽  
Min Zhang
Keyword(s):  
Resource Dependence ◽  
Resource Dependence Theory ◽  
Contract Enforcement ◽  
Supplier Relationships ◽  
Content Type ◽  
Dependence Asymmetry ◽  
Contractual Governance ◽  
Contingency View ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to empirically investigate the effects of cooperation history on contractual governance and the moderating effects of dependence asymmetry on those relationships from the perspective of a weaker firm in emergent economies. Drawing from resource dependence theory and contingency theory, this paper develops a conceptual model to investigate the impact of cooperation history on contractual governance. Design/methodology/approach The authors use data from 188 buyer–supplier relationships in China Findings The authors find that cooperation history is positively associated with contractual governance when dependence asymmetry is high but negatively associated with contractual governance when dependence asymmetry is low. Furthermore, the negative moderating effect of dependence asymmetry on the relationship between cooperation history and contractual complexity is stronger than the relationship between cooperation history and contract enforcement. Originality/value This study contributes to a better understanding of how cooperation history affects contractual governance with respect to the various levels of dependence on partners by incorporating a contingency view. This study also advances the literature on interfirm governance by distinguishing contractual governance into contractual complexity and contract enforcement.

scholarly journals Green Entrepreneurial Orientation and Green Innovation: The Mediating Effect of Supply Chain Learning

SAGE Open ◽  
2020 ◽  
Vol 10 (1) ◽  
pp. 215824401989879 ◽  
Author(s):  
Ying Guo ◽  
LiFang Wang ◽  
Yanyu Chen
Keyword(s):  
Supply Chain ◽  
Entrepreneurial Orientation ◽  
Positive Impact ◽  
Radical Innovation ◽  
Mediating Effect ◽  
Incremental Innovation ◽  
Green Innovation ◽  
Mediating Role ◽  
The Relationship ◽  
Positive Effect

As a combination of innovation and environmental development concepts, green innovation is of great significance to sustainable development. This article takes supply chain learning as an intermediary to examine the direct and indirect effects of green entrepreneurial orientation (GEO) on green innovation. This study builds a theoretical model among GEO, green incremental innovation, and green radical innovation, and uses empirical data from 416 enterprises in China for testing. The results show that corporate GEO has a positive impact on green incremental innovation and radical innovation. Supply chain learning has a significant positive effect on green incremental and radical innovation. In addition, corporate supply chain learning plays a mediating role in the relationship between GEO and green radical innovation, as well as plays a mediating role in the relationship between GEO and green incremental innovation. This study has an important contribution to enrich the theory of entrepreneurial orientation, green innovation, and supply chain learning, and is of great significance for managers to understand how to use GEO in the process of green innovation development.

The effect of supplier globalization on firm innovation: a resource dependence theory perspective

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yibo Wang ◽  
Bai Liu
Keyword(s):  
Resource Dependence ◽  
Positive Impact ◽  
Market Competition ◽  
Effective Means ◽  
Resource Dependence Theory ◽  
Institutional Distance ◽  
Foreign Firms ◽  
Firm Innovation ◽  
Content Type ◽  
Dependence Theory

PurposeEither buying or making is predicted by the existing literature for firms to reduce dependence. However, firms in the rapid globalization are found to adopt a pattern of buying and making. Specially, they critically rely on foreign firms for needed materials and goods, and invest in innovation against the uncertainty of potential supply disruptions simultaneously. Therefore, this paper seeks to investigate how the depth and width of supplier globalization shape firm innovation together. Moreover, the moderating effects of institutional distance and market competition are also examined in the paper.Design/methodology/approachGrounded on the resource dependence theory, this paper develops a theoretical framework and tests the proposed hypotheses by Poisson model using secondary data from 502 Chinese listed firms with foreign suppliers.FindingsThe depth of supplier globalization has a positive impact on firm innovation, while the width of supplier globalization weakens firm innovation. The depth and width of supplier globalization further interact negatively to influence firm innovation. Moreover, this relationship is enhanced when firms establish relationships with foreign firms with greater institutional distance and is weakened when firms face fiercer product competition.Originality/valueThe authors contribute to the literature by evidencing that the existence of foreign suppliers results in firms' enhancement of innovation to secure their operations and showing that diversifying the country origins of foreign suppliers is an effective means to reduce firms' uncertainty about supply disruption. We also advance the understanding regarding the contextual factors in which firms are more likely or less likely to manage the uncertainty about supplier globalization.

STUDY ON TYPES OF TECHNOLOGY COOPERATION PARTNER AND INNOVATION PERFORMANCE: FOCUSING ON INCREMENTAL AND RADICAL INNOVATION

2019 ◽  
Vol 23 (01) ◽  
pp. 1950005 ◽  
Author(s):  
HYEON CHANG KIM ◽  
WOOJIN YOON
Keyword(s):  
Geographic Distance ◽  
Radical Innovation ◽  
Incremental Innovation ◽  
Negative Effect ◽  
Cooperation Partners ◽  
Explicit And Implicit Knowledge ◽  
The Relationship ◽  
Positive Effect ◽  
Cooperation Partner ◽  
Technology Cooperation

This study conducts an empirical analysis on the relationship between innovation and the type of partner based on the assumption that the knowledge and information acquired from partners would vary depending on their type from the perspective of learning through technology cooperation. It further expands the discussion by looking at the relationship between geographic distance between partners and innovation as well as absorptive capacity, a variable that moderates it. The knowledge required for product development is classified into explicit and implicit knowledge, and based on such knowledge type, the form of learning and innovation is categorized into STI (Science, Technology and Innovation) and DUI (Doing, Using and Interacting). Accordingly, technology cooperation partners are divided into STI and DUI partners. The study analyzes the effect of the cooperation partner type on radical and incremental innovation. Unlike the hypothesis, cooperation with a STI partner had a positive effect on incremental innovation while a DUI partner had such effect on radical innovation. The geographical distance between partners had a negative effect on incremental innovation and the moderating effect of appropriability was not verified.

Market Orientation, Customer Relationship Management (CRM) Implementation Intensity, and CRM Performance

2015 ◽  
pp. 149-172
Author(s):  
Bryan Soh Yuen Liew ◽  
T. Ramayah ◽  
Jasmine A. L. Yeap
Keyword(s):  
Market Orientation ◽  
Customer Relationship Management ◽  
Structural Equation ◽  
Positive Impact ◽  
Relationship Management ◽  
Positive Influence ◽  
Customer Relationship ◽  
Equation Modeling ◽  
The Relationship ◽  
Technology Trends

The Web hosting industry is characterized by the rapid growth of information technology trends as well as constantly growing competition. Market orientation and Customer Relationship Management (CRM) are thought of as key solutions to this predicament. Thus, the purpose of this study was to test the effect of market orientation on CRM implementation intensity and subsequently the effect of CRM implementation intensity on CRM performance. Data was collected via online questionnaires from 81 online Web hosting companies around the world and analyzed using Partial Least Squares structural equation modeling technique. The results indicated that market orientation had a significant positive impact on CRM implementation intensity and CRM implementation intensity had a direct positive influence on CRM performance. A test of mediation also confirmed that CRM implementation intensity mediated the relationship between market orientation and CRM performance. Implications of these findings are further explored.

Politicians on the Board of Directors: Do Connections Affect the Bottom Line?

2005 ◽  
Vol 31 (3) ◽  
pp. 464-481 ◽  
Author(s):  
Amy J. Hillman
Keyword(s):  
Board Of Directors ◽  
Resource Dependence ◽  
Resource Dependence Theory ◽  
Bottom Line ◽  
Dependence Theory ◽  
The Board Of Directors ◽  
Regulated Industries ◽  
The Government ◽  
The Relationship

Resource dependence theory emphasizes the importance of linking firms with external contingencies that create uncertainty and interdependence. A critical source of external interdependency and uncertainty for business is government. One way to link a firm to the government is appointing ex-politicians to the board of directors. This study compares the boards of two groups of firms—those from heavily and less regulated industries—and finds the former group has more politician directors. Firms with politicians on the board are associated with better market-based performance across both groups, although the relationship is more pronounced within heavily regulated industries.

scholarly journals The interplay between firms’ internal and external capabilities in exploration and exploitation

2018 ◽  
Vol 56 (7) ◽  
pp. 1559-1580 ◽  
Author(s):  
César Camisón ◽  
Montserrat Boronat-Navarro ◽  
Beatriz Forés
Keyword(s):  
Radical Innovation ◽  
Positive Influence ◽  
Incremental Innovation ◽  
Hierarchical Regression ◽  
Moderating Effects ◽  
Exploration And Exploitation ◽  
Content Type ◽  
Relationship Of ◽  
The Relationship ◽  
Positive Effect

PurposeThe purpose of this paper is to enrich the explanation of the interplay between internal and external – or district shared – exploration and exploitation capabilities as antecedents of a firm’s radical and incremental innovation. Previous studies do not differentiate between exploration and exploitation in district shared capabilities and how they interact with internal capabilities.Design/methodology/approachThe paper uses hierarchical regression analysis to test the quadratic and moderating effects in a sample of 1,019 Spanish firms.FindingsResults show an increasingly positive effect on radical innovation of exploration capabilities, enhanced by shared capabilities in exploration. In the case of incremental innovation, the study finds evidence of an increasingly positive influence of exploitation capabilities and a concave relationship of exploration capabilities. Moreover, shared exploitation capabilities weaken the effect of internal exploitation capabilities and also have a direct effect on incremental innovation. Therefore, the two capabilities are interchangeable in the effect they have on incremental innovation.Practical implicationsDepending on the firm’s innovation strategy, intra-district firms should develop specific capabilities and/or concentrate on adopting the shared capabilities in the destination.Originality/valueThe study furthers the understanding of the relationship between exploration and radical innovation, and between exploitation and incremental innovation, which is more complex than previously depicted. The study also differentiates between exploration and exploitation in shared capabilities, enriching understanding of the competitiveness of district firms.

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 Effect of Board Characteristics on Firm Environmental Performance

2011 ◽  
Vol 37 (6) ◽  
pp. 1636-1663 ◽  
Author(s):  
Charl de Villiers ◽  
Vic Naiker ◽  
Chris J. van Staden
Keyword(s):  
Environmental Performance ◽  
Resource Dependence ◽  
Resource Dependence Theory ◽  
Sensitivity Analyses ◽  
Board Independence ◽  
Board Characteristics ◽  
Dependence Theory ◽  
The Board Of Directors ◽  
Board Roles ◽  
The Relationship

This study investigates the relationship between strong firm environmental performance and board characteristics that capture boards’ monitoring and resource provision abilities during an era when the natural environment and the related strategic opportunities have increased in importance. The authors relate the proxy for strong environmental performance to board characteristics that represent boards’ monitoring role (i.e., independence, CEO-chair duality, concentration of directors appointed after the CEO, and director shareholding) and resource provision role (i.e., board size, directors on multiple boards, CEOs of other firms on the board, lawyers on the board, and director tenure). The authors provide evidence consistent with both theories of board roles. Specifically, consistent with their agency theory–driven predictions, the authors find evidence of higher environmental performance in firms with higher board independence and lower concentration of directors appointed after the CEO on the board of directors. Consistent with resource dependence theory, they show that environmental performance is higher in firms that have larger boards, larger representation of active CEOs on the board, and more legal experts on the board. Their findings are generally robust to a number of sensitivity analyses. These findings have implications for managers, firms, shareholders, and regulators who act on behalf of shareholders, if they are interested in influencing environmental performance.

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