Foreign subsidiaries’ relational strategic emphasis and performance implications amid environmental turbulence

Purpose Grounded in strategic choice and resource-based views, this study aims to investigate the antecedents and consequences of relational strategic emphasis of foreign subsidiaries operating in Thailand. Four types of relational strategies were identified with associated differential performance outcomes. Design/methodology/approach Data collected via self-administered surveys from a diverse sample of 168 foreign subsidiaries were analyzed in two stages. First, multinomial logistic regression was used to test whether resource-bridging capability, nonmarket-based assets and market-based assets were significant predictors of relational strategy type. Then, multivariate analysis of variance was used to determine whether the four relational strategy types differed in their strategic performance and financial performance. Findings The three resource-based motives are significant predictors of relational strategy. Firms adopting the “dual-relational” strategy tend to have the highest level of resource-bridging capability and nonmarket-based assets while firms pursuing the “business-oriented” strategy are likely to possess a higher level of market-based assets. Extensive reliance on relational ties enables foreign subsidiaries to achieve a much higher level of strategic and financial performance than those that chose to only rely on transactional or contractual relations. Practical implications Foreign subsidiaries operating in emerging markets characterized by an unstable market environment have to establish good relationships with buyers, suppliers and distributors, as well as government agents. Originality/value Using a juxtaposition of political and business ties, a typology of the relational strategy was conceptualized. This study extends non-market strategy research by investigating the relationship between resource and capability in the choice of relational strategy. Diverse degrees of political and business ties show different impacts on strategic and financial performances.

Development and validation of the scale for measuring digital marketing orientation in the hotel industry

Purpose: This paper aims to develop and validate the scale for measuring digital marketing orientation (DMO) in the hotel industry. Methodology: The robust exploratory and confirmatory factor analysis procedure is applied to a data set collected through an online survey of 164 hotels in Bosnia and Herzegovina, Croatia, Serbia, and Montenegro. Results: Digital marketing orientation has been conceptualized, and a scale has been developed to measure this construct. The scale consists of 15 items in three defined dimensions (subscales): Strategic emphasis, Digital intelligence generation, and Planning and resource provisioning. Conclusion: Using the developed digital marketing orientation (DMO) scale, hotel managers can conduct a DMO audit similar to conducting a market orientation audit to determine in which areas it is necessary to improve market orientation in the online environment. Academics may use the DMO scale to investigate its antecedents and the influence of other factors on DMO and/or the influence of DMO on other factors. This is the first study, to the author’s knowledge, that developed and validated a measurement scale for digital marketing orientation in the hotel industry.

Organizational Culture Assessment at Ethio-Telecom Using Competing Value Framework

The purpose of this study is to assess current dominant and future desired organizational culture at Ethio-telecom Jimma region offices as perceived by employees using competing value framework. The objective is to identify and understand cultural changes needed to manage organizational change Ethio-telecom embarks on effectively. Through a survey research design, a sample of 100 employees who were randomly selected took part in the study. Organizational change assessment instrument (OCAI), standard questionnaire developed by Cameron and Quinn’s (2006) used to collect data from respondents. Four types of culture clan, adhocracy, hierarchy, and market assessed from six attributes of culture or dimensions: dominant characteristics, organizational leadership, and management of employees, organizational glue, strategic emphasis, and criteria of success. Standard mean score (Z score), t-test and analysis of variance employed to address the research questions. The results show that clan culture is the dominant typology at the moment while market oriented culture is found as future desired organizational culture. Moreover, the findings revealed statistically no significant variation among employees in their perception of current dominant culture and choice of future desired culture.

Clan Culture as Predictor of Strategy Implementation: Empirical Evidence from Professional Bodies in Kenya

The study aimed at establishing clan culture effect as an agent of strategy implementation in professional bodies in Kenya. The study’s anchoring theory was Cameroon and Queen’s Competing Value Framework (CFV) supported by McKinsey 7S Framework. Positivist philosophy adopting descriptive correlation research design was implemented in the field. Key question was, “How does clan culture affect strategy implementation within the professional bodies registered with the Association of Professional Societies in East Africa within Kenya?” A census of all professional bodies with purposive proportionate sample of key respondents was undertaken. This sample involved managers of key departments involved in strategy implementation including Information Communication Technology (ICT), planning, human resources, procurement, marketing, and finance. From target sample of 168 respondents from 28 professional bodies, the study received 132 filled structured questionnaires for analysis. Multiple linear regression analysis was applied through SPSS computer package using regression models to test the hypothesis H01: There is no relationship between clan culture and strategy implementation in professional bodies in Kenya. Findings indicated that, the coefficient for organization glue, (β = .153, t = 1.848, p<.05) and strategic emphasis (β = .299, t = 3.609, p<.05) which were the constructs for clan culture significantly predicted strategy implementation in professional bodies. Results led to rejection of the null hypothesis. Study findings are significant and implementable within various organizations including government, industry players, and academia amongst others. From the findings, the study recommends leadership and policy planners to implement clan culture as demonstrated by the most successful organizations.

Organisational culture of construction companies in Lagos State, Nigeria

The study investigated the cultural features of construction companies in Lagos state and determined the organisational culture profile of the construction companies in the study area, with a view to providing information that could enhance the organisational performance of Nigeria construction firms. Primary data were sourced through the administration of 196 structured questionnaires to 98 construction companies (i.e., two questionnaires per company) represented by their construction professionals and administrative staff. The information elicited from the returned 140 questionnaires (71% return rate) included features of organisational culture and dominant characteristic element of organisational culture profile of the construction companies. Data collected for this study were analysed using percentages, factor analysis and mean score (MS). The result showed a dominant organisational cultural feature of strategic direction explaining 17.73% variance in respondent’s perception. However, communication (9.66%), adaptability (8.43%) and employee involvement (6.88%) were also relevant. The organisational culture profile showed a predominant market culture (MC) with focus on production and goal accomplishment (MS = 3.62), a hierarchy culture (HC) of a coordinator, organiser and efficiency expert (MS = 3.60) and an ad hoc culture with strategic emphasis on dynamics and readiness (MS = 3.56). The family type of culture is undermined within the companies (MS = 3.47). The study concluded that strategic direction being a MC feature corroborates a predominant MC revealed by assessing organisational culture of construction companies in Lagos state, Nigeria.