Social Capital and Firm Performance: Moderating Effect of Environmental Turbulence

Purpose The purpose of this paper is to untangle the impacts of a firm’s corporate reputation and its alliance partners’ social capital on its financial performance, drawing on the relational and the network points of view. Design/methodology/approach This paper explored the moderating effect of corporate reputation on the relationship between partners’ social capital (e.g. resource heterogeneity, structural relations and partners’ social ties) and a focal firm’s performance. An OLS three-step regression model (controls, main effects and interaction effects) was used to test the proposed hypotheses based on 265 US joint ventures. Findings The influence of partners’ social capital on a focal firm’s performance is negatively moderated by the focal firm’s reputation at the firm and network levels; larger and more prestigious firms listed in Fortune database tend to choose partners with a higher level of resource heterogeneity, whereas smaller firms tend to choose partners in similar industries to increase economies of scale. The social capital factors of the partners will have different effects on the focal firm performance. Originality/value The value of this paper is in providing insight into the importance and nuances of corporate reputation in offsetting the advantages of inter-firm alliances and their impact on firm performance. In particular, the performance benefits of inter-firm alliance partners’ social ties and heterogeneous resources are negatively affected by the corporate reputation of a firm.

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Entry Mode Strategy and Firm Performance in Emerging Economy: Moderating Role of Organisational Structure and Environmental Turbulence

Management Journal of Sustainable Business and Management Solutions in Emerging Economies ◽

10.7595/management.fon.2021.0012 ◽

2021 ◽

Author(s):

Abiodun Babatunde Onamusi

Keyword(s):

Firm Performance ◽

Organizational Structure ◽

Entry Mode ◽

Business Environment ◽

Moderating Effect ◽

Environmental Turbulence ◽

Organisational Structure ◽

Axiomatic Theory ◽

Lagos State ◽

Strategy Performance

Research question: This study assessed the combined moderating effect of organizational structure and environmental turbulence on entry mode strategy - performance link focusing on baby care industry in Lagos State, Nigeria. Motivation: The manufacturers of baby care products in Nigeria have struggled to understand the complexities of entry mode strategy and how to use firm-specific capabilities to contain the threats from new entrants given the idiosyncrasies of the business environment in Nigeria. Also, considering the fast changing business environment and the need for firms to align internal organisational structure to manage the external environmental challenges, this study via the supposition of Hage (1965) axiomatic theory of organisations examined the joint moderating effect of organisational structure and environmental turbulence on entry mode strategy - performance linkage focusing on the baby care industry in Lagos State, Nigeria. Idea: Empirical submissions on the combined moderating effect of organizational structure and environmental turbulence on the interactions of entry mode strategy and organizational performance are sparse. Hence, this study addressed this gap in literature. Data: The survey research design and a sample of 518 employees engaged in FMCG manufacturers in Lagos State, Nigeria were adopted for this study. Tools: A validated structured questionnaire was the instrument of data collection for this study and the hierarchical regression analysis was adopted to test the hypotheses formulated. Findings: The results showed that the interaction between entry mode strategy and firm performance was positive and significant. Further analysis revealed that the interaction term of organizational structure and environmental turbulence accounted for the rise in firm performance to suggest that organizational structure and environmental turbulence are joint significant moderators. This suggests that entry mode strategy appropriateness is key to firm performance and that the fit between organisational structure and the macro-environment is a precondition to higher performance. Contribution: This study adds to recent empirical literature on the link between entry mode strategy, organizational structure, environmental turbulence, and firm performance within emerging economy context, and it provides additional support for the assumptions of the eclectic theory and Hage’s axiomatic theory of organization.

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The Moderating Effect of Environmental Turbulence on the Strategic Agility-Performance Relationship: Empirical Evidence from Lagos State, Nigeria

Business and Management Research ◽

10.5430/bmr.v10n1p1 ◽

2020 ◽

Vol 10 (1) ◽

pp. 1

Author(s):

M. A. Arokodare

Keyword(s):

Firm Performance ◽

Oil And Gas ◽

Pearson Correlation ◽

Business Environment ◽

Moderating Effect ◽

Environmental Turbulence ◽

Lagos State ◽

Strategic Agility ◽

And Performance ◽

The Relationship

Scholars in strategic management argued that strategic agility measures do enhance firm performance and mitigate environmental turbulence risks. This study therefore examined the moderating effect of environmental turbulence on the relationship between strategic agility and performance of oil and gas marketing companies in Lagos State, Nigeria. Population of the study was 515 managers of major oil and gas marketing companies in Lagos State. Cross-sectional survey research design was adopted with total enumeration. The research instrument was found reliable and valid with Cronbach’s alpha and KMO greater than 0.7 and 0.5 respectively. The data was analyzed using descriptive statistics, Pearson correlation, and multiple and hierarchical regression methods of analyses. Findings revealed that among oil and gas marketing companies in Lagos State, Nigeria, there was positive and significant relationship between strategic agility and performance; strategic agility had positive and significant effect on performance while environmental turbulence significantly moderated the relationship between strategic agility and performance. The study concluded that strategic agility affected and related with firm performance and also environmental turbulence moderated the relationship between strategic agility and performance of oil and gas marketing companies in Lagos State, Nigeria. Therefore, it is recommended that oil and gas marketing companies in Nigeria should fully and dynamically embrace strategic agility practices and continuously develop their capabilities for proper and timely sensing of and responding to changes in their business environment in order to improve their performance over their competitors. Limitations of the study and areas for future research were highlighted.

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Moderating Effect of Internal Control System on the Relationship between Environmental Turbulence and Firm Performance in Jordanian listed Companies

Journal of Accounting and Finance in Emerging Economies ◽

10.26710/jafee.v3i1.157 ◽

2017 ◽

Vol 3 (1) ◽

pp. 21-32

Author(s):

Diala Jehad Ershaid ◽

Akilah Bt Abdullah ◽

Mudzamir Bin Mohamed

Keyword(s):

Control System ◽

Firm Performance ◽

Conceptual Model ◽

Internal Control ◽

Empirical Data ◽

Listed Companies ◽

Moderating Effect ◽

Environmental Turbulence ◽

Internal Control System ◽

The Relationship

Purpose: The purpose of this paper is to investigate the impact of environmental turbulence on firm performance of listed companies in Jordan. A conceptual model is proposed in this paper where firm performance is expected to be influenced by a two-dimensional environmental turbulence factor (technological turbulence and market turbulence) with a moderating factor of internal control system. Proposed Method: A questionnaire survey would be administered to 253 listed companies in Amman stock Exchange and analysis could be done with Partial Least Square (PLS) for testing the hypotheses of the study that firm performance is being influenced by environmental turbulence with a moderating effect of internal control system. Expected Results: It expected that when this proposed conceptual model is used with empirical data, the result of the research will provide a good understanding of the influence of the two environmental turbulence factors (technology and market) on firm performance of Jordanian listed companies. The result will also highlight the extent of the moderating effect of internal control system on the relationship between environmental turbulence and firm performance. Implication: Even though this research paper only presents a conceptual framework, but it proposes an aspect that needs to be tested with empirical data among Jordanian listed companies because of their significance in the business environment and the Jordan’s economy as a whole. The study is also of particular importance to the management of listed firms in knowing the moderating role of their internal control system on the relationship between the environmental turbulence and firm performance.

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