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

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.

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

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.

scholarly journals Strategic Agility: Achieving Superior Organizational Performance through Strategic Foresight

2020 ◽  
pp. 7-16
Author(s):  
Arokodare M. A. ◽  
Asikhia O. U.
Keyword(s):  
Firm Performance ◽  
Organizational Performance ◽  
21St Century ◽  
Business Performance ◽  
Business Environment ◽  
Environmental Turbulence ◽  
Superior Performance ◽  
Global Business ◽  
Strategic Foresight ◽  
Strategic Agility

Firms globally encounter challenges of maintaining business superior performance over a long period. Most business organizations managers in today’s modern age, find it difficult to constantly achieve targeted business performance due to poor strategic insight and agility to manage uncertainty business environment and globalization in the 21st century. The majority of firms in the 21st century have recorded a fast decline in financial and non- financial performance resulting from a poor understanding of strategic agility dimensions to tackle global business trends and environmental turbulence. Theoretically, the study was conducted to investigate the link between strategic agility and firm performance through strategic foresight as part of antecedent of strategic foresight. The Dynamic Capability and Entrepreneurship Innovation theories were the underpinning theories for the study. Thus a conceptual model was developed to depict the interaction between strategic agility and firm performance through strategic foresight. Majority of past literature shown that strategic agility and strategic foresight have significantly enhanced firm superior performance.

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

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.

scholarly journals Environmental Turbulence Capability Sparks Firm Performance by Embracing Business Model Transformation: An Empirical Study on the Internet Industry in Indonesia

2021 ◽  
Vol 7 (2) ◽  
pp. 139-144
Author(s):  
Librita Arifiani ◽  
Harjanto Prabowo ◽  
Asnan Furinto ◽  
Wibowo Kosasih
Keyword(s):  
Firm Performance ◽  
Business Model ◽  
Model Transformation ◽  
Business Performance ◽  
Business Environment ◽  
Environmental Turbulence ◽  
Research Approach ◽  
Internet Service ◽  
Business Transformation ◽  
The Relationship

This study assesses solutions to several questions regarding the effect of Environmental Turbulence on Firm Performance directly and indirectly through Business Model Transformation on Internet Service Provider Companies in Indonesia. The research approach used is an explanatory survey, verification research with a quantitative approach by measuring a sample of variables built on the population's constructs representing 239 companies. The author finds that novelty B.M. transformation design is significantly related to what factors drive the business transformation. Although, this study also finds that BMT positively mediates the relationship between environmental turbulence to influence performance. Environmental turbulence alone is no longer adequate, and organizations need to revamp the B.M. to achieve firm performance. This study also contributed to the movement of research trends targeted at B.M. Transformation. This study provides an appropriate riposte for quantitative empirical studies that elucidate the correlation between BMT on company performance by simultaneously embracing and managing environmental turbulence. The relationship between BMT and the factors that support it will be higher comprehend when contextualized. The author locates different designs and impacts of BMT on business transformation results that culminate in firm business performance since it faces an uncertain business environment that grows dynamically. Although this novelty is important, the authors found no support for effectiveness. However, this study highlights the robustness of the important factors that drive BMT to work effectively to improve business performance.

scholarly journals Complementary Effect of Knowledge Management Strategy on Firm Performance: Evidence from Chinese Firms

2019 ◽  
Vol 11 (13) ◽  
pp. 3616 ◽  
Author(s):  
Bo Song ◽  
Yi Li ◽  
Liangjie Zhao
Keyword(s):  
Knowledge Management ◽  
Firm Performance ◽  
Organizational Structure ◽  
Positive Impact ◽  
Synergistic Effects ◽  
Moderating Effect ◽  
Chinese Firms ◽  
Km Strategy ◽  
Complementary Effect ◽  
The Relationship

This study investigated the complementary effect of three orientations of knowledge management (KM) strategy on firm performance: external and internal, explicit and tacit, and exploratory and exploitive. We propose a theoretical framework for examining the synergistic effects of KM strategy on firm performance, and the moderating effect of organizational structure. The complementary effect among these orientations of KM strategy was studied. To test our framework, we conducted a survey with a sample of 345 Chinese firms that had applied a KM strategy. The empirical results show that: (1) different KM strategy orientations complement each other, and this complementarity is an essential link in the relationship between KM strategy and firm performance; (2) the direct effect of each orientation of KM strategy on firm performance is not significant; (3) a centralized organizational structure moderates the relationship between KM strategy and firm performance, thus the more centralized is the organizational structure, the stronger is the positive impact of the complementary effect of KM strategy on firm performance; and (4) the moderating effect of formalized organizational structure in the relationship between KM strategy and firm performance is not significant.

scholarly journals Entry Mode Strategy, Firm-Level Capability, Environmental Turbulence, and Organisational Performance: A Moderated Analysis

2020 ◽  
Vol 5 (2) ◽  
pp. 278-290
Author(s):  
Abiodun B. ONAMUSI ◽  
◽  
Grace O. MAKINDE ◽  
Babatunde H. AKINLABI ◽  
◽  
...  
Keyword(s):  
Entry Mode ◽  
Environmental Turbulence ◽  
Hierarchical Regression ◽  
Negative Consequences ◽  
Organisational Performance ◽  
Cross Sectional Survey ◽  
Firm Level ◽  
Cross Sectional ◽  
Performance Effect ◽  
Lagos State

This study examined the effect of entry mode strategy and firm-level capability on organisational performance of selected Fast-Moving Consumer Goods (FMCG) manufacturer in Lagos State, Nigeria; more so, it investigated the moderating effect of environmental turbulence on the interaction between entry mode strategy and firm-level capability, and organisational performance. The cross-sectional survey research design was adopted with a sample of 452 employees of twelve selected FMCGs manufacturers in Lagos State, Nigeria. A hierarchical regression analysis was conducted to substantiate the moderation-effect hypotheses formulated. Findings showed that entry mode strategy and firm-level capability have a positive and significant effect on organisational performance. Further analysis showed that the interaction term of environmental turbulence, firm-level capability, and entry mode strategy explained the increase in organisational performance with the introduction of environmental turbulence as a moderator. Beyond the performance-effect of entry mode strategy and firm-level capability, management needs to keep abreast of issues happening in the external environment and proactively position their organisation to take advantage of the environment's opportunities while reducing exposure to negative consequences.

scholarly journals Entry mode strategy, customer engagement, and firm performance

2020 ◽  
Vol 6 (1) ◽  
pp. 99-112
Author(s):  
Abiodun Babatunde Onamusi
Keyword(s):  
Firm Performance ◽  
High Performance ◽  
Survey Design ◽  
Entry Mode ◽  
International Market ◽  
Customer Engagement ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
Lagos State ◽  
The Relationship

Purpose: This study assessed the effect of entry mode strategy on firm performance of selected manufacturers of baby-care product in Lagos State, Nigeria, more so, it examined the moderating effect of customer engagement on the relationship between entry mode strategy and firm performance. Methodology: This study employed a cross-sectional survey design and a sample of 452 employees of twelve manufacturers of baby-products in Lagos State, Nigeria. A moderated regression analysis to test two-way interaction hypotheses was conducted. Findings: The results showed that entry mode strategy has a positive and significant effect on firm performance (R2 =0.042, F(2,449) = 9.865, p <0.000). Further analysis showed that customer engagement explained the increase in firm performance (ΔR2 =0.543, ΔF(1,448) = 587.305 p <0.000) with the introduction of customer engagement as a moderator. Implications: Beyond the performance of entry mode strategy for firms, manager’s needs to deploy customer engagement capability because it’s offers high performance opportunities for the firms who can deploy it. Hence, firm needs to invest in setting up platforms to engage their customers after gaining access to a new international market.

Sign in / Sign up

Export Citation Format

Share Document