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Article

Hong Liu, Lu Ma and Panpan Huang

The purpose of this paper is to test the assertion that the relationship between corporation performance and organizational complexity follows an inverted U-shape curve…

Abstract

Purpose

The purpose of this paper is to test the assertion that the relationship between corporation performance and organizational complexity follows an inverted U-shape curve, and a corporation gains the best performance when its organizational complexity fits its environmental complexity.

Design/methodology/approach

This research did not directly measure environmental complexity to verify the relationship between corporation performance and complex environment, but measured organizational complexity to subtly display the effect of the organizational complexity on the corporation performance while controlled the environmental complexity. To do so, a set of corporations that shared the similar environment was selected, and then these corporations’ performance and organizational complexity were calculated, the related hypotheses were tested empirically.

Findings

The paper proved the inverted U-shape relationship between organizational complexity and corporation performance, and also found that different corporation chooses different complex adaptive way, so the inverted U-shape relationship displays hierarchy.

Research limitations/implications

Future research should search out to calculate corporation’s environment complexity the fitness of organizational complexity for testing hypotheses.

Practical implications

The regularity of relationship between organizational complexity and corporation performance is helpful for managers to understand that a way to improve a corporation’s performance is to enhance the fitness of organizational complexity and environmental complexity.

Social implications

Organizational complexity may be competitive advantage, but excessive growth of it will be harmful.

Originality/value

Usually organizational complexity is thought of as a negative factor to corporation performance and tends to be constrained, but this research explored the role of organizational complexity to corporation performance and the findings helps managers to understand when to enhance organizational complexity and when to weaken it. The methodology of calculating the fitness of organizational complexity and environmental complexity by fixing environment is a contribution to complexity theory research.

Details

Journal of Management Development, vol. 34 no. 3
Type: Research Article
ISSN: 0262-1711

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Article

Job P. Antony and Sanghamitra Bhattacharyya

The purpose of this paper is to propose a conceptual framework for measuring organizational performance and organizational excellence, which could be used by small and

Abstract

Purpose

The purpose of this paper is to propose a conceptual framework for measuring organizational performance and organizational excellence, which could be used by small and medium enterprises.

Design/methodology/approach

Altogether, seven variables are proposed in the overall and work unit level for measuring organizational performance and organizational excellence. The proposed model for evaluating organizational performance and organizational excellence was taken through a round of pre‐testing using relevant statistical analyses, in order to validate the hypothesized relationships.

Findings

Excellence is redefined as the ability or capacity of one performance variable to affect or influence the other performance variables in an organization. Total correlation is suggested for measuring different excellences and equations are suggested for calculating overall organizational performance and overall organizational excellence.

Practical implications

The model developed for measuring performance and excellence can be used by small and medium enterprises to evaluate their performance and excellence periodically.

Originality/value

The definition and model developed for measuring excellence can contribute significantly to existing literature on excellence measurement. Further research can help in adding more variables to this measure to make the model a holistic one.

Details

Measuring Business Excellence, vol. 14 no. 2
Type: Research Article
ISSN: 1368-3047

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Article

Job P. Antony and Sanghamitra Bhattacharyya

The purpose of this paper is to empirically establish an indigenously developed model for measuring organizational performance and organizational excellence, and to

Abstract

Purpose

The purpose of this paper is to empirically establish an indigenously developed model for measuring organizational performance and organizational excellence, and to examine the relationship between organizational performance and organizational excellence.

Design/methodology/approach

The paper presents a model based on seven variables, at the overall and work unit level, for measuring organizational performance and organizational excellence – tested by using a large sample. A structured questionnaire is developed for collecting data from 407 respondents from 230 organizations. Summated scale average method is used for calculation of organizational performance and a total correlation method is used for the calculation of organizational excellence.

Findings

It is established that organizational performance and organizational excellence could be measured by consolidating performance variables, using two different methods: performance can be measured by averaging the performance variable scores, and excellence can be measured by averaging the correlations of performance variable scores. Based on the study, a new general definition for organizational excellence is proposed, as “the outstanding measure of relationship of all performance variables influencing an organization's functioning”.

Practical implications

The model, developed and tested for measuring performance and excellence, can be used by small and medium enterprises to evaluate their performance and excellence separately and periodically. The study helps managers to recognize organizational excellence as a measure needing special attention instead of taking it as an outstanding value of organizational performance.

Originality/value

The definition and model developed and tested for measuring excellence can contribute significantly to existing literature on excellence measurement. This will help researchers to study organizational excellence as a separate organizational behavior, instead of limiting it as a terminal value of organizational performance.

Details

Measuring Business Excellence, vol. 14 no. 3
Type: Research Article
ISSN: 1368-3047

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Article

Dominic Mwenja and Alfred Lewis

This paper aims to examine the impact of board of directors on the performance of not‐for‐profit (NFP) organizations. The study also aims to utilize the six dimensions of…

Abstract

Purpose

This paper aims to examine the impact of board of directors on the performance of not‐for‐profit (NFP) organizations. The study also aims to utilize the six dimensions of effective board performance as suggested by Chait et al., using the theoretical explanations of the resource dependency theory, the agency theory, and the group/decision processes theory. By explaining how these board activities influence organizational performance, we can begin to understand the importance of board influence in determining organizational effectiveness as measured by organizational performance.

Design/methodology/approach

For the purpose of this study, organizational performance attributes are used in line with the strategy used by Nobbie and Brudney. The measurement used includes the perception of board members' view of the overall success in meeting organizational goals, increase or decrease in the number of programs offered by the organization, improvement in the quality of service offered by the organization, and the level of satisfaction by the clients with the level of service provided.

Findings

The survey revealed that the strategic and the political dimensions have a stronger relationship with the perceived organizational performance in nonprofit organizations as compared to the other dimensions.

Research limitations/implications

Given that the majority of the respondents (30) of the study served in religious organizations, this may have skewed the results toward a certain direction that is difficult to ascertain until other studies compare results across different NFP classifications. This suggests that it is important to repeat such a study with a much diverse group of NFPs in addition to measuring other board and organizational dimensions such as board size, executive perceptions, and organization size, and age.

Practical implications

The efforts to link board effectiveness and organizational performance will remain tenuous at best. This is an illusive phenomenon that will continue to elude researchers as long as the dimensions of board effectiveness and organizational performance remain perceptual. The need to understand the strategic orientation of NFPs governance is even greater as these organizations continue to play a major role in the lives of ordinary people in various communities around the world.

Originality/value

In order to understand the effectiveness of the board in NFPs, this study examines three theoretical perspectives that can be utilized to connect the different dimensions of board performance and organizational performance. In previous research, Chait et al. examined the practices of board members at independent colleges and identified six competencies of effective boards. The identified dimensions are: contextual: effective boards understand and take into consideration the culture and norms of the organization they govern; educational: effective boards ensure that their members are knowledgeable about the organization and the board's roles, responsibilities, and performance; interpersonal: effective boards nurture the development of their members as a working group, attend to the board's collective welfare, and foster a sense of cohesiveness; analytical: effective boards recognize the complexities and subtleties of issues and accept ambiguity and uncertainty as healthy preconditions for critical discussions. They raise doubts, explore trade‐offs, and encourage differences of opinion; political: effective boards accept as a primary responsibility the need to develop and maintain healthy relationships among major constituencies; and strategic: effective boards help their organizations envision a direction and shape a strategy for the future. They anticipate potential problems and act before issues become crises.

Details

Business Strategy Series, vol. 10 no. 6
Type: Research Article
ISSN: 1751-5637

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Article

Stephan M. Liozu and Andreas Hinterhuber

The purpose of this paper is to identify a set of specific activities and a set of competencies associated with above‐average firm performance.

Abstract

Purpose

The purpose of this paper is to identify a set of specific activities and a set of competencies associated with above‐average firm performance.

Design/methodology/approach

Quantitative survey of 748 respondents.

Findings

It was found that four key competencies differentiate high performing from low performing companies: organizational confidence; pricing capabilities; organizational change capacity; and championing behaviors by top management. The research also identifies a set of specific activities that are linked with superior firm performance: activities directed at the improvement of pricing effectiveness (e.g. trainings, pricing tools; pricing performance reviews); improvements in product differentiation and product quality (e.g. through innovation and research aimed at identifying and creating customer value); increased sense of organizational confidence (e.g. optimism, resilience, “can do”‐attitude); improved support of top management; improved ability to stick to list prices and minimization of discounting behaviors; and finally, enhanced cultural adaptability to respond to changing market conditions.

Research limitations/implications

Through a quantitative research design, the authors document the link between pricing capabilities, organizational confidence and superior firm performance.

Practical implications

The authors identify both specific activities, as well as higher order competencies, practising managers need to develop in order to increase firm performance via pricing. Taking a hypothetical company as example, the authors' data show that, on average, a one point improvement on a seven‐point scale in organizational confidence leads to a 4 per cent improvement in return on sales.

Originality/value

Our research highlights which organizational competencies drive firm performance. Specifically this research is the first quantitative survey which documents a positive relationships between organizational confidence and firm performance.

Details

Journal of Business Strategy, vol. 34 no. 4
Type: Research Article
ISSN: 0275-6668

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Article

Xiaofeng Su, Weipeng Zeng, Manhua Zheng, Xiaoli Jiang, Wenhe Lin and Anxin Xu

Following the rapid expansion of data volume, velocity and variety, techniques and technologies, big data analytics have achieved substantial development and a surge of…

Abstract

Purpose

Following the rapid expansion of data volume, velocity and variety, techniques and technologies, big data analytics have achieved substantial development and a surge of companies make investments in big data. Academics and practitioners have been considering the mechanism through which big data analytics capabilities can transform into their improved organizational performance. This paper aims to examine how big data analytics capabilities influence organizational performance through the mediating role of dual innovations.

Design/methodology/approach

Drawing on the resource-based view and recent literature on big data analytics, this paper aims to examine the direct effects of big data analytics capabilities (BDAC) on organizational performance, as well as the mediating role of dual innovations on the relationship between (BDAC) and organizational performance. The study extends existing research by making a distinction of BDACs' effect on their outcomes and proposing that BDACs help organizations to generate insights that can help strengthen their dual innovations, which in turn have a positive impact on organizational performance. To test our proposed research model, this study conducts empirical analysis based on questionnaire-base survey data collected from 309 respondents working in Chinese manufacturing firms.

Findings

The results support the proposed hypotheses regarding the direct and indirect effect that BDACs have on organizational performance. Specifically, this paper finds that dual innovations positively mediate BDACs' effect on organizational performance.

Originality/value

The conclusions on the relationship between big data analytics capabilities and organizational performance in previous research are controversial due to lack of theoretical foundation and empirical testing. This study resolves the issue by provides empirical analysis, which makes the research conclusions more scientific and credible. In addition, previous literature mainly focused on BDACs' direct impact on organizational performance without making a distinction of BDAC's three dimensions. This study contributes to the literature by thoroughly introducing the notions of BDAC's three core constituents and fully analyzing their relationships with organizational performance. What's more, empirical research on the mechanism of big data analytics' influence on organizational performance is still at a rudimentary stage. The authors address this critical gap by exploring the mediation of dual innovations in the relationship through survey-based research. The research conclusions of this paper provide new perspective for understanding the impact of big data analytics capabilities on organizational performance, and enrich the theoretical research connotation of big data analysis capabilities and dual innovation behavior.

Details

European Journal of Innovation Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1460-1060

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Article

Nosheen Rafi, Alia Ahmed, Imran Shafique and Masood Nawaz Kalyar

The aim of this current study is to investigate the effects of knowledge management capabilities – knowledge infrastructure capability and knowledge processing capability…

Abstract

Purpose

The aim of this current study is to investigate the effects of knowledge management capabilities – knowledge infrastructure capability and knowledge processing capability – on organizational agility and business performance. This study also examines organizational agility as an underlying mechanism between knowledge management capabilities and business performance relationship.

Design/methodology/approach

The data were collected from one hundred and sixty-nine organizations. Partial least squared (PLS)–based structural equation modeling (SEM) technique was employed to test the study hypotheses. The analysis was performed in WarpPLS 6.0 software.

Findings

Results revealed that both dimensions of knowledge management capabilities positively influence organizational agility and business performance. In addition to the direct effect, knowledge management capabilities also have an indirect effect on business performance mediated through organizational agility.

Research limitations/implications

This study attempts to develop an integrated framework to conceptualize a capability–capacity–performance relationship, where it suggests that knowledge management capabilities are important organization-level capabilities which facilitate organizations to develop necessary capacities i.e. organizational agility to successfully perform business activities.

Practical implications

The findings help the managers to understand the contribution of knowledge management capabilities towards business performance. The findings imply that business performance can be enhanced by development of a culture - enabled by a knowledge-oriented structure and technology – that encourages knowledge sharing among employees because when employees are not sharing information, they are prone to repeating the same mistakes which they and other people have already committed. Likewise, strategies such as mentoring cross training, business process empowerment and technical training programs allow employees to gain business knowledge and foster organizational agility.

Originality/value

Novelty of this study is to develop and empirically test an integrated framework of a capability–capacity–performance relationship. It suggests that knowledge management capabilities (firm capability) enable organizations to develop organizational agility (firm capacity) which in turn enhances performance.

Details

South Asian Journal of Business Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2398-628X

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Article

Sunu Widianto, Yetty Dwi Lestari, Beta Embriyono Adna, Badri Munir Sukoco and Mohammad Nasih

The aim of this study is to explore dynamic managerial capabilities (DMCs) and their effect on public organisational performance. While the previous research has focused…

Abstract

Purpose

The aim of this study is to explore dynamic managerial capabilities (DMCs) and their effect on public organisational performance. While the previous research has focused on how leadership style impacts on organisational performance, the authors have investigated how the dynamic managerial capabilities of middle managers and their organisational capacity for change as well as their attitude towards the change are linked to organisational performance.

Design/methodology/approach

The dataset was gathered during the field research carried out in a large public Indonesian government institution. In total, 313 managers and their direct followers participated in this study. The authors have employed structural equation modelling to test the hypotheses.

Findings

The results of this study demonstrate the role of the dynamic capabilities of the middle managers associated with organisational performance. The results show that dynamic managerial capabilities and organisational performance are mediated by the organisational capacity for change.

Practical implications

Middle managers should equip and develop their capabilities in order to embrace change in the organisation through the communication between the different staff levels, uniting the vision and mission with the organisational members. Further, the organisation should empower the role of the middle managers by increasing their authority and participation in the policy-making that is part of the change process. In addition, the workplace could implement interventions to optimise the dynamic managerial capabilities held by the middle manager and employees through assessments and mentoring. Finally, particular training programmes could be implemented to boost the employees' skills and flexibility, thereby keeping them agile in the context of the changes in the work environment.

Originality/value

The role of the dynamic managerial capabilities of the middle manager is a prominent factor when facilitating a high level of organisational performance in a public organisation. However, the role of dynamic managerial capabilities does not have a direct effect on organisational performance if the organisation does not have the capacity to change, particularly in the Indonesian context.

Details

Journal of Organizational Effectiveness: People and Performance, vol. 8 no. 1
Type: Research Article
ISSN: 2051-6614

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Article

Muhammad Ibrahim Abdullah, Dechun Huang, Muddassar Sarfraz, Junaid Naseer and Muhammad Waqas Sadiq

Organizations are facing several challenges in the current challenging business environment. The current study explores how counterproductive work behavior (CWB) affects…

Abstract

Purpose

Organizations are facing several challenges in the current challenging business environment. The current study explores how counterproductive work behavior (CWB) affects bio-medical companies' firm performance in Pakistan. The study considers the mediating role of organizational culture and its impact on CWB and a firm's performance.

Design/methodology/approach

Data were collected through a self-administered questionnaire. For data collection, 300 questionnaires were distributed among employees working in biomedical companies. Statistical analysis such as descriptive statistics, Pearson moment correlation and structural equation modeling (SEM) techniques was used to analyze the study variable's relationship and its effect on the firm's performance.

Findings

The study results revealed that CWB and organizational culture significantly influence firm performance directly and indirectly. Moreover, organizational culture partially mediates the relationship between CWB and companies' performance.

Originality/value

The current study plays a significant role in the firm's policy directions. There are limited research and information accessible to biomedical firms in Pakistan. Counterproductive job habits wind up becoming something that significantly affects the firm performance. This research adds to human resource management, corporate management and the business strategy literature.

Details

Business Process Management Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1463-7154

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Article

Ali Zeb, Fazal Akbar, Khawar Hussain, Adnan Safi, Muhammad Rabnawaz and Faheem Zeb

Innovation is the basic input to organizational endurance; therefore, the study of processes that support innovation should be of interest to practitioners and researchers…

Abstract

Purpose

Innovation is the basic input to organizational endurance; therefore, the study of processes that support innovation should be of interest to practitioners and researchers alike. Consequently, there is increasing attention for the supplementary research examination of the influencing elements of innovativeness.

Design/methodology/approach

The data were collected in 2018 using adapted questionnaires that were tested. The respondents were 446 employees of Pakistan Electric Power Company (PEPCO). Bivariate correlations and hierarchical regression were used for the data analysis.

Findings

The findings showed that the competing value framework (CVF) model of organizational culture may promote innovativeness that translates to the progress of PEPCO, which deserved barrier for everyone relying on the values made by the culture of the organization. The adhocracy culture is considered to be statistically suitable for the prediction of performance and enhancement of innovation in the organization. Based on the above findings, it may be deduced that innovation mediated the relationship between some particular types of organizational culture and performance.

Practical implications

The CVF model provides a supportive framework for the development of procedures that promote innovation in the organization. The focus of the CVF model highlighted employees' behavior and function of organizational culture, which can restrain or stimulate performance. This study reported and developed a basis for an empirical model based on the CVF model.

Originality/value

This paper found that the CVF model and innovation are mega sources of innovation at PEPCO. This work should be of interest in the area of innovation and performance improvement. There are very few empirical research studies on the relationship between organizational culture, innovation and performance, specifically in the context of developing countries. This is one of the very few studies conducted to empirically examine the influence of CVF model on performance through the mediating role of innovation in PEPCO.

Details

Business Process Management Journal, vol. 27 no. 2
Type: Research Article
ISSN: 1463-7154

Keywords

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