Strategic Responses During Frugal Innovation at the Base of the Pyramid: the Case of Philips Community Life Centres

When multinational enterprises (MNEs) seek to serve the needs of base of the pyramid (BOP) environments, they are often confronted with several environmental factors, among them, severe resource constraints and institutional complexities. MNEs adopt two overarching strategic orientations to navigate these factors: the strategy to adapt to the new context, or the strategy to shape the context. This paper investigates how and when these strategic orientations are deployed in an MNE. It further explores the intra-organisational tensions and dilemmas that arise when these strategic orientations are implemented. This paper analyzes a case of frugal innovation in a primary care intervention developed and deployed in Kenya by Philips N. V., a Dutch multinational technology company. Several propositions are generated based on the case findings. The paper contributes to the frugal innovation literature which lacks rigorous, in-depth analytical case studies on organisational processes associated with new product development. It also offers managers a useful toolkit that could inform how they could strategically navigate the pressures of BOP environments.

Facilitating Servitization in Manufacturing Firms: The Influence of Strategic Orientation

Servitization has significant implications for the sustainable development of manufacturing, the economy, and the environment. However, it does not always produce returns as the firms expect, which may discourage them from engaging in this transition. In this study, we examine the facilitating effects of two dimensions of strategic orientation (i.e., technology and market orientation) on two types of servitization (i.e., basic and advanced service provision), and further investigate the performance impacts of these servitization types contingent on firm size. By conducting an empirical study, using survey data comprising 210 samples, we confirm that both technology and market orientation are positively related to basic and advanced service provision. Moreover, while they have equal effects on basic services, market orientation is more important than technology orientation for providing advanced services. We also find that, for basic services, these two strategic orientations function independently, whereas they reinforce each other in the provision of advanced services. Finally, the relationship between servitization and firm performance is contingent on the size of the firm. Our results show that small firms can benefit from providing basic services, rather than advanced services, while only advanced services can improve the performance of large firms further.

Relational Capital And Strategic Orientations As Antecedents of Innovation: Evidence From Mexican SMEs

Despite the importance of strategic orientations and relational capital in businesses, little research has been carried out on the relationship of these factors with the innovation process. Nor has the behavior of strategic orientations been sufficiently studied if we measure them together. This paper examines the relationship between those factors with firm performance. We propose relational capital as a source of innovation for small- and medium-sized enterprises (SMEs) through strategic orientations. Therefore, this study contributes to advanced knowledge in the SMEs competitive research stream. A total of 360 respondents completed a survey conducted at four main cities in México. Using the structural equation modeling (SEM) technique, our results reveal a strong positive effect of relational capital over strategic orientations. Mixed findings of strategic orientations and innovation are presented. The findings offer managerial insights for managers to improve performance through innovation and strategic orientations using relational capital.

Influence of transactive memory systems and strategic orientations on the performance of hospitality firms

PurposeSince the hospitality industry is driven by people, effective utilization of knowledge among various organizational units is required to ensure guest satisfaction and in turn superior performance. Research trying to find the implications of transactive memory systems (TMSs), an integrative mechanism for knowledge management in organizations, has yielded ambiguous and mixed results, leading the researchers to believe that the linkages may not be as straightforward as previously imagined. In this study, the authors theoretically build their arguments based on the knowledge-based view of the firm and empirically test these linkages using data collected from the small hotels of India.Design/methodology/approachData were collected from the owner-managers or senior executives of small hotels operating in the Uttarakhand state of India, and analysed using structural equation modelling (SEM) and Hayes process macro.FindingsIt was found that for the hospitality firms, the TMS is an enabler for performance only when the focus of knowledge creation and utilization is on building effective strategic orientations. Further, the technology orientation (TO) and learning orientation (LO) of the hotel mediate the relationship between the TMS and firm performance.Practical implicationsEffective knowledge sharing among employees helps availability of credible and crucial information about customers, which eventually helps in long-term mutually beneficial relationships with the customers, leading to greater economic value creation for the hotel.Originality/valueBy establishing theoretical links between knowledge creation and utilization, and validating these linkages using data collected from the hotel industry in India, this study offers unique and useful insights for the theoretical advancement of the hospitality literature. This study also makes a case that small hotels investing their energy and resources into the creation of a transactive memory systems could reap benefits through appropriate strategic postures.

Mahem Entertainment Society: strategic alternatives and change management

Learning outcomes Teaching objectives: to help students review entertainment service and its ecosystem; to discuss leadership anxiety during change management and organizational development; to understand organizational diagnosis while initiating change management exercise; and to compare various strategic alternatives and the implications of selecting an option. Case overview/synopsis This case narrates dilemma of Krishna Goenkar, a management consultant entrusted to revisit strategic orientations of Mahem Entertainment Society (MES). Mahem is a fictitious state in the west coast of India. MES had been created by the Government of Mahem as a regulatory body to promote the state as a world class destination for entertainment. Public interest guided the organization, as it was a government instituted body. Hence, Goenkar had twin challenges. Firstly, what strategic initiatives should he propose to scale up the operations in spite of the given organizational constraints? Secondly, how to scale up and diversify if required, with minimal resistance? The case would help students get familiarized with entertainment domain, service ecosystem and challenges of driving strategic change in public utilities, especially in Indian and emerging market context. Complexity academic level This case is suitable for graduate-level programme in marketing management. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes. Subject code CSS 8: Marketing.

Sensing and seizing in the apparel industry: the role of dynamic capabilities in fostering sustainable strategic orientations

Purpose This paper aims to explore how the dynamic capabilities sensing and seizing could support a sustainable (either instrumental or stewardship) strategic orientation in the apparel industry. Design/methodology/approach Through qualitative and inductive research design, ten companies from the Sustainable Apparel Coalition, specifically focusing on brands, were researched. Employees in strategic positions were interviewed. Subsequently, thematic analysis was realized to extract findings from both instrumental and stewardship organizations. Findings Instrumental organizations focus on increasing their brand, mainly by following market demands. They sense opportunities via a hierarchical organizational structure that allows for incremental innovation based on internal competition. Stewardship organizations believe in a collective approach toward conducting business effectively. While building a “sustainable case for business”, a stewardship-oriented company senses by involving their stakeholders and seeks unorthodox opportunities using a long-term internal compass as a beacon for decision-making. Originality/value Key capabilities are revealed that allow businesses and managers to reach higher levels of sustainability in a specific sector: the apparel industry. Especially the capabilities of stewardship-oriented companies and its ambidexterity provide a fertile base for future research at the nexus of organization development and sustainability.

Effects of Strategic Orientation on Performance of Telecommunication Sector in Nigeria

The study explores the potential influences of strategic orientation constructs of entrepreneurial, market and technology orientations on telecommunication firms’ performance using data obtained through structured questionnaires from 57 line managers and 300 customers of these firms. The data collected were subjected to the structural equation modeling technique. The results revealed that strategic orientation has a positive significant relationship with firm performance. Specifically, it showed that only technology orientation has a significant influence on telecommunication firms’ performance. The study contributes to the understanding of the rationale behind which set of strategic orientations should be implemented for improved level of performance in the telecommunication sector.

Effects of Strategic Orientation on Performance of Telecommunication Sector in Nigeria

The study explores the potential influences of strategic orientation constructs of entrepreneurial, market and technology orientations on telecommunication firms’ performance using data obtained through structured questionnaires from 57 line managers and 300 customers of these firms. The data collected were subjected to the structural equation modeling technique. The results revealed that strategic orientation has a positive significant relationship with firm performance. Specifically, it showed that only technology orientation has a significant influence on telecommunication firms’ performance. The study contributes to the understanding of the rationale behind which set of strategic orientations should be implemented for improved level of performance in the telecommunication sector.