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1 – 10 of 320Tien Dung Luu, Lan Anh Trinh, Thanh Phuong Binh Nguyen, Ngoc Linh Chi Ngo, Nguyen Phuong Nhi Le and Nhat Vi Vu
This study aims to analyse the impact of the degree of internationalisation (DOI) on firm performance (FP), with the moderating role of organisational slack resources, namely…
Abstract
Purpose
This study aims to analyse the impact of the degree of internationalisation (DOI) on firm performance (FP), with the moderating role of organisational slack resources, namely, absorbed slack human resources, absorbed financial slack resources and unabsorbed slack resources, in the context of Asian emerging markets.
Design/methodology/approach
Data includes 45 companies and 225 observations in 2014–2018. The authors adopted the generalised least squares method to test their hypotheses.
Findings
DOI negatively influences FP, indicating that the link between DOI and FP is not U-shaped but relatively linear. Absorbed human resources and absorbed slack financial resources significantly enhance FP, absorbing resources associated with DOI and FP. Unabsorbed slack resources play a minor role in mitigating the deleterious impact of DOIs on FP.
Practical implications
Firms in an emerging market should begin exploring and expanding into overseas markets with characteristics similar to the domestic market. The firm should optimise the benefits of slack resources by appropriately allocating resources to strategic operations.
Originality/value
This study reveals the beneficial effect of organisational slack resources on the DOI-FP relationship via the lens of the resource-based view.
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Yueqi Wang, Bin Guo and Yanjie Yin
The purpose of this study is to explore organizational factors that act as antecedents of open innovation search. The authors aim to empirically examine whether the extent to…
Abstract
Purpose
The purpose of this study is to explore organizational factors that act as antecedents of open innovation search. The authors aim to empirically examine whether the extent to which the organizational slack is absorbed determines its influence on firms’ openness in innovation search. In addition, the authors also examine the moderating effect of absorptive capacity on the relationship between slack and open innovation search.
Design/methodology/approach
This study adopted secondary data from multiple sources (NBER, Compustat and US census) and then constructed a ten-year balanced panel dataset of 298 manufacturers. The generalized least square method was used to explore the determinants of open innovation search among manufacturing firms.
Findings
The results of this study reveal that the absorption level of organizational slack indeed determines the openness in innovation search. Specifically, absorbed slack negatively affects a firm’s openness in innovation search, whereas unabsorbed slack promotes open innovation search. Additionally, the relationship between absorbed slack and open innovation search will be less negative with the increase of absorptive capacity.
Originality/value
Different from most previous studies that have examined the performance effect of open search among high-tech and large enterprises, this study focuses on the antecedents of open search strategy in both high- and low-tech, large and small firms. The findings reveal that different forms of organizational slack divergently influence a firm’s open search strategy, contributing to the understanding of the relationship between organizational slack and knowledge search behavior in a broader context, as well as the understanding of the moderating effect of absorptive capacity.
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Russell Charles Manfield and Lance Richard Newey
The purpose of this paper is to examine competing assumptions about the nature of resilience and selects those most appropriate for an entrepreneurial context. Assumptions are…
Abstract
Purpose
The purpose of this paper is to examine competing assumptions about the nature of resilience and selects those most appropriate for an entrepreneurial context. Assumptions are integrated into a theoretical framework highlighting how different threats require different resilience responses. Overall organizational resilience results from a portfolio of resilience capabilities.
Design/methodology/approach
Akin to theoretical sampling, the authors identify various theoretical insights about resilience across three disciplines of psychology, ecology and engineering. The authors use these insights to distill competing assumptions about what resilience is and evaluate those most appropriate for entrepreneurial contexts. Existing resilience literature in organization science is critiqued in terms of underlying assumptions and an alternative theoretical framework proposed based on more robust assumptions.
Findings
Other disciplines point to resilience being a process that differs for different threats and as either bouncing back, absorbing shocks or bouncing forward. When imported into entrepreneurship these characteristics lead to a conceptualization of resilience as being enacted through a capability portfolio. A routine-based capability response is preferred when threats are familiar, simple, not severe and frequent, following minimal disorganization and where resource slack is available. In contrast, heuristics-based capabilities are preferred when threats are unfamiliar, complex, severe and infrequent, following serious disorganization and where resource slack is unavailable. An absorption threshold point identifies when organizations need to switch from routine-based to heuristics-based resilience capabilities.
Practical implications
Building resilience across a range of adverse situations requires firms to develop a portfolio of resilience capabilities. Firms must learn to match the capability required for the specific threat profile faced. This includes a mix of routinized responses for returning to stability but also more flexible, heuristics-based responses for strategic reconfiguration.
Originality/value
The paper undertakes a first of its kind cross-disciplinary conceptual analysis at the level of identifying competing assumptions about the nature of resilience. These assumptions are found to be somewhat unconscious among organization researchers, limiting the conceptual development of resilience in entrepreneurship. The authors contribute a theoretical framework based on explicit and robust assumptions, enabling the field to advance conceptually.
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The process by which organisations respond to changes in their environment is a particularly complex one, involving considerations of resource availability, strategy formulation…
Abstract
The process by which organisations respond to changes in their environment is a particularly complex one, involving considerations of resource availability, strategy formulation, organisational structure and culture, power and information availability. In considering the interdependencies between these variables, it is suggested that interactions between environment, strategy and structure affect the distribution of power within the organisation, and that power is used to affect the distribution of resources. The advent of a market intelligence report which forecasts market adversity provides an occasion when the organisation can select from among a number of possible responses. A model of the selection process by which responses to market adversity are chosen is developed, in which it is suggested that the distribution of resources within the organisation plays a critical role. The model is a dynamic one, since the response selected is likely to re‐distribute resources within the organisation. If executives are viewed as competing against each other for access to resources, the possibility arises that an executive may deliberately bias the market signal to promote a response more favourable to his/her own relative position. Other sources of bias may also exist, all of which complicate the process of response selection. It is however argued that in the longer term a learning process may be expected to take place which effectively de‐biases the market signal. It is therefore suggested that it is the distribution of resources within the organisation which dominates the choice of response to forecast market adversity.
Fariss‐Terry Mousa, Dan Marlin and William J. Ritchie
This study aims to improve the understanding of the relationship between organizational slack and firm performance for high technology initial public offerings (IPOs).
Abstract
Purpose
This study aims to improve the understanding of the relationship between organizational slack and firm performance for high technology initial public offerings (IPOs).
Design/methodology/approach
Using cluster analysis the paper investigates configurations of slack and their associated performance implications.
Findings
The findings indicate the existence of distinct configurations of slack resources and associated performance differences among the configurations. Implications of the findings for managerial practice and future research are discussed.
Originality/value
The purpose of this study is to extend slack measurement research by examining the slack and performance relationship in high‐technology IPOs from a configurational perspective.
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Konstantinos Bozos, Vassiliki Bamiatzi and Tamer Cavusgil
Organizational and cultural misfits have been among the most vital factors associated with Mergers and Acquisitions (M&A) failure. Admittedly, in a foreign environment, such…
Abstract
Organizational and cultural misfits have been among the most vital factors associated with Mergers and Acquisitions (M&A) failure. Admittedly, in a foreign environment, such problems can be further amplified due to the liability of foreignness, increased information asymmetries and additional transaction costs, further hampering the success of the deal. Considering that, in 2019 alone, the value of cross-border acquisitions (CBAs) exceeded $1.2 trillion (out of $3.9 trillion of the total global M&A value), deciphering the “black box” of CBA success comes at the forefront of the academic and managerial interest. In this chapter, the authors examine a missing link on the post-acquisition performance for cross-border deals, the role of organizational slack. The authors particularly theorize that slack may benefit foreign acquirers, by sheltering them against liability of foreignness and acculturation costs; yet this benefit will be conditional upon the type of slack and the acquirer’s prior CBA experience.
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Christy M. K. Cheung, Dimple R. Thadani and Zach W. Y. Lee
With growing interest in the uses of hedonic technologies and gamification in system design, the concept of cognitive absorption (CA) has become increasingly salient in the…
Abstract
With growing interest in the uses of hedonic technologies and gamification in system design, the concept of cognitive absorption (CA) has become increasingly salient in the information systems literature. However, little effort has been made to evaluate the research status and consolidate the current literature findings. To fill these research gaps, the authors conducted a literature review on CA. The authors then proposed an integrative framework that summarises the key elements of and variables related to CA and their relationships. The major findings of the study are discussed, and an agenda for future research is proposed.
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Ncamsile Ashley Nkambule, Wei-Kang Wang, Irene Wei Kiong Ting and Wen-Min Lu
The main purpose of this study is to empirically investigate the impact of intellectual capital efficiency on US multinational software companies' performance from 2012 to 2016 by…
Abstract
Purpose
The main purpose of this study is to empirically investigate the impact of intellectual capital efficiency on US multinational software companies' performance from 2012 to 2016 by applying data envelopment analysis (DEA).
Design/methodology/approach
It adopts a new slacks-based measure (SBM) to obtain a more accurate performance estimation and rank between companies. Regression analysis is used to test the overall IC and each of its elements (Human Capital, Innovation Capital, Process Capital and Customer Capital).
Findings
The univariate result shows that multinational companies are more efficient than non-multinational companies. However, the regression result shows that multinationality can hardly explain the firm efficiency of software firms. Another interesting finding is that intellectual capital has a positive and significant impact on software firm performance in the US human capital influences firm efficiency directly. However, when human capital is combined with the other elements of IC, the contribution of human capital becomes less significant. This is because people may think that innovation capital, process capital and customer capital can replace human capital, but it is not. In short, human capital may affect firm efficiency through other elements of IC (innovation capital, process capital and customer capital) as it is the base of other elements.
Research limitations/implications
The results show that multinational companies have higher efficiency scores than non-multinational companies. In addition, Intellectual capital has a positive and significant impact on software firm performance in the US human capital influences firm efficiency directly. However, when human capital is combined with the other elements of IC, the contribution of human capital becomes less significant. This is because people may think that innovation capital, process capital and customer capital can replace human capital, but it is not. In short, human capital may affect firm efficiency through other elements of IC (innovation capital, process capital and customer capital) as it is the base of other elements.
Practical implications
Overall, the study highlights the needs of having intellectual capital and its elements (Human Capital, Innovation Capital, Process Capital and Customer Capital) to increase firm efficiency.
Originality/value
First, the authors use a more comprehensive elements of IC, which are human capital, innovation capital, process capital and customer capital for a better IC measurement. Second, this study makes the first attempt using the DSBM model via DEA to examine the operating efficiency of US multinational software firms.
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Ron Sanchez, Jeremy Galbreath and Gavin Nicholson
In this paper we develop a model for researching the influence that a board of directors can have on improving an organization’s sustainability performance. Our model explores…
Abstract
In this paper we develop a model for researching the influence that a board of directors can have on improving an organization’s sustainability performance. Our model explores sources of cognitive flexibility of boards needed to recognize and respond to the need for improved sustainability performance. We first define concepts of sustainability, sustainability competence, and sustainability performance. We then analyze two forms of board capital (a board’s human capital and its social capital) and three aspects of a board’s information processing (its patterns of information search, discussion and debate, and information absorption) that we suggest affect a board’s cognitive flexibility and thereby influence whether a board decides to adopt sustainability performance goals. Our model also suggests that an organization’s strategic flexibility – as represented by its current endowments of resource flexibilities and coordination flexibilities – will moderate the relationship between a board’s decision to adopt sustainability performance goals and an organization’s subsequent achievement of those goals. We also suggest that our model is generally relevant to any research seeking to predict the influence of boards on strategic change in many forms, not just to research focused on sustainability issues.
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David Ray, John Gattorna and Mike Allen
Preface The functions of business divide into several areas and the general focus of this book is on one of the most important although least understood of these—DISTRIBUTION. The…
Abstract
Preface The functions of business divide into several areas and the general focus of this book is on one of the most important although least understood of these—DISTRIBUTION. The particular focus is on reviewing current practice in distribution costing and on attempting to push the frontiers back a little by suggesting some new approaches to overcome previously defined shortcomings.