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Article
Publication date: 13 November 2017

Adji Achmad Rinaldo Fernandes and Solimun

This research aims to examine the moderating effect of strategic orientation on the effect of environmental uncertainties on business performance and the moderating effect of…

1816

Abstract

Purpose

This research aims to examine the moderating effect of strategic orientation on the effect of environmental uncertainties on business performance and the moderating effect of innovations on the effect of environmental uncertainties on performance of the business in the aviation industry in Indonesia.

Design/methodology/approach

Research data were collected in stages by means of interviews with corporate leaders of Indonesian airlines and branch managers of several airports, as well as with the Directorate of Civil Aviation as the regulator. A pre-test and focus group discussion (FGD) were conducted to directly determine the questionnaire aspects of the research object, following which an immediate revision was made to the questionnaire. The data from the survey used in each variable were obtained from the mail questionnaire survey. The data collected using the survey are the main data used in the present study.

Findings

The model of environment–strategy–performance (ESP) can work well in improving performance if supported by innovations. These findings deepen the ESP paradigm in the aviation industry (Miles and Snow, 1978; Segev 1987; Covin and Slevin, 1989; Miller and Shamsie, 1996) that during conditions of high environmental uncertainties, strategic orientation, rather than a single response, will be effective if supported by innovations that provide the strategy with flexibility. The initial implications of these modeling results generate the findings that the effect of environmental uncertainties in the aviation industry (classified as strictly regulated) on performance of a company is largely determined by the direction of the strategic orientation and the innovation level.

Research limitations/implications

Interactions between innovations and environmental uncertainties have a significant negative effect on the achievement of business performance of the branches with a coefficient of 0.02 and a t-value of 2.00, meaning that the innovation level of a branch has an increasingly stronger influence on the business performance of the branch in the uncertain environment with limitations or underestimated by the branch manager or the innovation level of the branch is not supported with airport facilities and services, which means that the provision of airport facilities and services is inversely proportional to the needs of the airline branches. In other words, the variable “innovations” is a moderating variable for the effect of environmental uncertainties on business performance.

Practical implications

The results of the modeling performed in this research also show that innovations play a major role in the implementation of the ESP model (Blumentritt and Danis, 2006). The empirical phenomena and descriptive analysis results suggest that the Indonesian airlines which have been quite successful and have demonstrated an above-average performance possess higher levels of innovations. This finding corroborates that of previous studies that environmental uncertainties and direction of strategic orientation will determine the ability of a company to overcome the barriers to innovations, by maximizing innovative resources in achieving the target of innovations (Manu, 1992; O’Regan and Ghobadian, 2005; Hult et al., 2003), and more specifically, it indicates that strategic orientation that is prospective in nature leads to a high level of innovations (Salavou et al., 2004).

Social implications

The research findings indicate that innovations have a central role in the ESP models and are able to offer a new concept as a modification of the ESP model which in the study is called ESIP. The role of innovations in the ESIP model puts innovations as a variable moderating the effect of environmental uncertainties on performance and the effect of strategic orientation on performance. Moreover, based on the summary of the results for the analysis of the ESIP model, the following can be explained: first, environmental uncertainties have a significant and positive effect on the innovation level or the higher the level of environmental uncertainties, the more is the number of the innovations that an Indonesian airline branch creates. External environmental conditions that are likely to be complex and dynamic found in the area of operations make the branch management more able to identify barriers to innovations and manage resources to be more creative and productive for the attainment of the targets of innovations.

Originality/value

Innovations in business models as a new effort in improvisation specific to the business stage of the basic model (not very valuable) become more advanced business processes to produce products that are more valuable for consumers, at a more efficient cost with better profitability (Chesbrough, 2007b). So far, research on the role of innovations in response to environmental uncertainties and implementation of strategies to improve the performance of the ESP model is still done partially, so that there is no comprehensive model to describe the role of innovations in this ESP model, or let us say that a gap exists between theories and opportunities to conduct further research on the role of innovations in the ESP model.

Details

International Journal of Law and Management, vol. 59 no. 6
Type: Research Article
ISSN: 1754-243X

Keywords

Article
Publication date: 24 April 2024

Son Thanh Than, Phong Ba Le, Cong Thanh Ha and Dung Thi Nguyet Nguyen

Due to the vital role of innovation for firms to respond to the change and achieve competitive advantage, the purpose of this study is to investigate the influence of…

Abstract

Purpose

Due to the vital role of innovation for firms to respond to the change and achieve competitive advantage, the purpose of this study is to investigate the influence of knowledge-oriented leadership (KOL) on innovation performance via the mediating role of knowledge sharing (KS). This study also explores the moderating role of organizational justice in the relationship between KS and innovation performance.

Design/methodology/approach

Analysis of moment structures and structural equation modeling are applied to examine the relationship among the latent factors in the proposed research model using data collected from 335 participants in 121 manufacturing and service firms in Vietnam.

Findings

The findings revealed that KOL serves as a key precursor to foster innovation performance directly or indirectly through active and passive KS behaviors. In addition, the paper highlights the moderating role of organizational justice in strengthening the impact of KS activities on innovation performance.

Research limitations/implications

By highlighting the important role of KOL for stimulating KS behaviors, this paper provides a valuable understanding and novel approach for firms to improve innovation performance. The research findings support the idea that building a climate of justice is crucial to enhance the effects of KS on innovation performance.

Originality/value

This study contributes to bridging the research gaps in the literature and advances the insights of how KOL directly and indirectly stimulates innovation performance via mediating roles of active and passive KS processes under the climate of justice.

Details

Global Knowledge, Memory and Communication, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2514-9342

Keywords

Article
Publication date: 1 April 2024

Xingxin Zhao, Jiafu Su, Taewoo Roh, Jeoung Yul Lee and Xinrui Zhan

The purpose of this study is to examine the impact of technological diversification (TD) on enterprise innovation performance, meanwhile focusing on the moderating effects of…

Abstract

Purpose

The purpose of this study is to examine the impact of technological diversification (TD) on enterprise innovation performance, meanwhile focusing on the moderating effects of various organizational slack (i.e. absorbed and unabsorbed slack) and ownership types (i.e. state-owned or privately-owned) in the context of Chinese listed firms.

Design/methodology/approach

This study formulates five hypotheses based on organization and agency theories. Our empirical analysis employs a fixed-effect regression estimator with a unique panel dataset of Chinese-listed manufacturing firms and 13,566 firm-year observations over 9 years from 2012 to 2020.

Findings

Our findings show that an inverted U-shaped relationship exists between TD and innovation performance, varying with different types of organizational slack and ownership. In state-owned enterprises (SOEs), unabsorbed slack negatively moderates the inverted U-shaped relationship; however, in privately-owned enterprises (POEs), this relationship is positively moderated. Although absorbed slack has negative moderating effects in both SOEs and POEs, its impact is only significant for POEs.

Practical implications

Our results imply that organizational slack has a contrasting impact on the relationship between TD and innovation performance when the type of ownership varies. Therefore, the managers that intend to achieve optimal innovation performance through TD should understand how organizational slack can be leveraged.

Originality/value

This study contributes to the existing literature by applying the relationship between TD and innovative performance to the transition economy, as well as examining the double-edged sword impact of state ownership on firm innovation performance.

Details

Cross Cultural & Strategic Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2059-5794

Keywords

Article
Publication date: 27 March 2024

Hyrije Abazi-Alili, Iraj Hashi, Gadaf Rexhepi, Veland Ramadani and Andreas Kallmuenzer

Open innovation (OI), by now one of the major concepts for the analysis of innovation, is seen as a methodology for collaboratively designing and implementing solutions by…

Abstract

Purpose

Open innovation (OI), by now one of the major concepts for the analysis of innovation, is seen as a methodology for collaboratively designing and implementing solutions by engaging stakeholders in an iterative and inclusive service design process. This paper aims to empirically investigate OI capacities, defined as a cooperative, knowledge-sharing innovation ecosystem, and to explore how it can lead to improved performance of firms in Central and Eastern European (CEE) and Southeastern European (SEE) countries.

Design/methodology/approach

The study builds on the World Bank/European Bank for Reconstruction and Development (EBRD’s) Business Environment Enterprise Performance Survey (BEEPS) dataset for 2009, 2013 and 2019. Primarily, the research model was estimated using log-transformed ordinary least squares (OLS). Taking into consideration that this method might produce substantial bias, yielding misleading inferences, this study is fitting Poisson pseudo maximum likelihood estimators with robust standard errors and instrumental variable/generalized method of moments estimation (IV/GMM) approach for comparative results. Secondarily, the research model was tested using structural equation modelling (SEM) to investigate the relationship between five OI capacities and firm performance.

Findings

The findings indicate that there is a significant positive relationship between most OI capacities and firm performance, except for innovation, which did not show a statistically significant relationship with firm performance. Specifically, research and development (R&D), knowledge and coopetition are statistically significant and positively associated with firm performance, whereas transformation is statistically significant but negatively associated with firm performance. The IV/GMM estimations’ findings support the view that the firm performance is significantly affected by OI capacities, together with some control variables such as size, age, foreign ownership and year dummy to have a significant impact on firm performance.

Originality/value

This paper fills an identified gap in the literature by investigating the impact of OI on firm performance executed in the specific CEE and SEE country context.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 30 no. 5
Type: Research Article
ISSN: 1355-2554

Keywords

Content available
Book part
Publication date: 29 January 2024

Naziha Kasraoui, Kais Ben-Ahmed and Amira Feidi

This study focuses on the impact of green innovation on oil and gas firms’ performance in the MENA region from 2010 to 2020. Return on assets (ROA) was used to measure the…

Abstract

This study focuses on the impact of green innovation on oil and gas firms’ performance in the MENA region from 2010 to 2020. Return on assets (ROA) was used to measure the financial performance of firms. However, green innovation was measured using two different scores, namely the environmental pillar and the innovation scores. Additionally, we introduced an oil price-moderated variable to examine its effect on the firm’s performance and the green innovation nexus. We collected data from the DataStream database. Regarding our empirical part, we use the generalized least squares method to carry out the analysis. Results showed a positive impact between green innovation scores and the firm’s performance in the MENA region. Also, we found that green innovation has a linear effect on firm performance. Finally, a negative, moderated effect of crude oil prices on green innovation and the firm’s financial performance nexus has been found.

Details

Digital Technology and Changing Roles in Managerial and Financial Accounting: Theoretical Knowledge and Practical Application
Type: Book
ISBN: 978-1-80455-973-4

Keywords

Article
Publication date: 7 March 2024

Bilal Mukhtar, Muhammad Kashif Shad and Fong Woon Lai

The purpose of this study is to examine the influence of green technology innovation on sustainability performance with the moderating effect of innovation capabilities in the…

Abstract

Purpose

The purpose of this study is to examine the influence of green technology innovation on sustainability performance with the moderating effect of innovation capabilities in the Malaysian manufacturing listed companies.

Design/methodology/approach

This was a quantitative study and carried out by applying a research survey. The questionnaire was used to collect the data from 204 Malaysian manufacturing companies of the “consumer products and services” sector listed at Bursa Malaysia, incorporating a five-point Likert scale. All the hypothesized relationships were tested by using the partial least square structural equation modeling (PLS-SEM).

Findings

The empirical results showed that the comprehensive adoption of green technology innovation significantly promotes sustainability performance including economic, environmental and social performance. In addition, innovation capabilities significantly and positively moderate the relationship between green technology innovation and sustainability performance.

Research limitations/implications

The scope of this study is specifically confined to the Malaysian manufacturing listed companies, operating within the consumer products and services sector listed at Bursa Malaysia. Consequently, the findings of this study may not be generalized to manufacturing companies of the different geographical contexts.

Practical implications

The findings of this study may help the top management and policymakers of the Malaysian manufacturing listed companies to scrutinize green technology innovation and innovation capabilities to achieve higher sustainability performance.

Originality/value

This study magnifies and provides new insights into the extant literature by developing a comprehensive research model that concurrently tests the direct and moderation effects between green technology innovation, innovation capabilities and sustainability performance. Additionally, this is the first study to examine the influence of green technology innovation on sustainability performance with the moderating effect of innovation capabilities in the Malaysian manufacturing listed companies. This distinct approach significantly bolsters the originality of this study.

Details

Benchmarking: An International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 18 March 2024

Muhammad Hamid Shahbaz, Sajjad Ahmad and Shahab Alam Malik

This study aims to explore green practices within small and medium-sized enterprises (SMEs) and their implications for determining environmental performance. Targeting SMEs in…

Abstract

Purpose

This study aims to explore green practices within small and medium-sized enterprises (SMEs) and their implications for determining environmental performance. Targeting SMEs in Pakistan, the study examines the influence of green intellectual capital (GIC), innovation and creativity on environmental performance.

Design/methodology/approach

A comprehensive survey addressed top, middle, and lower-level managerial perspectives. A sample of 243 respondents was statistically selected, and the survey questionnaire was used to measure the key constructs of the study. Using a 5-point Likert scale, the study captured the respondents' insights regarding green practices. Data analysis was executed using SPSS for descriptive tests and Smart-PLS 4 for advanced structural equation modeling (SEM).

Findings

GIC significantly enhances green innovation within SMEs, leading to improved environmental performance. Green creativity is a crucial moderator, indicating that SMEs have higher creative approaches to counter environmental challenges. These findings accentuate the importance of fostering an environment that stimulates green creativity to uplift GIC in achieving environmental performance.

Originality/value

The study offers a profound understanding of how SMEs in Pakistan leverage GIC to elevate their environmental performance, thereby providing strategic insights for businesses aiming for sustainable growth.

Details

International Journal of Innovation Science, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1757-2223

Keywords

Book part
Publication date: 12 February 2013

Bram Verschuere and Eline Beddeleem

As public service deliverers, funded by public money and performing tasks on behalf of government, many non-profit organisations (NPOs) are under pressure to increase their…

Abstract

As public service deliverers, funded by public money and performing tasks on behalf of government, many non-profit organisations (NPOs) are under pressure to increase their performance. More and more NPOs have to prove they work efficiently, effectively and in line with the overall mission. As a result, the challenges these organisations are confronted with put pressure on their management. For NPOs, innovation and performance are managerial key issues. Ultimately, the question is what the factors are that lead to innovation and/or improved organisational performance in NPOs, given their important role in public service delivery, often acting as agents of government. For academics, this creates an ambitious research agenda. With a risk to oversimplify the picture, we could summarise this agenda as consisting of some crucial descriptive and explanatory questions. Major descriptive research questions concern the level of innovative behaviour of NPOs, their performance, and their organisational governance characteristics. In terms of explanations, there is a possible relationship between organisational governance features and organisational performance, between organisational governance features and innovation, and between innovation and organisational performance. In this chapter, we discuss the recent academic research concerning these issues, and, secondly, based on the assessment of this literature, we will propose some directions and challenges for such a research agenda.

Details

Conceptualizing and Researching Governance in Public and Non-Profit Organizations
Type: Book
ISBN: 978-1-78190-657-6

Keywords

Article
Publication date: 20 December 2023

Shadi Abualoush

The purpose of the study is to identify how knowledge management processes impact innovation performance in the Jordanian medical sector (private hospitals) as well as identify…

Abstract

Purpose

The purpose of the study is to identify how knowledge management processes impact innovation performance in the Jordanian medical sector (private hospitals) as well as identify how big data analytics moderates this performance.

Design/methodology/approach

Two hundred ninety-one questionnaires were analyzed for the purpose of this study. A structural equation model (SEM) was used to test convergence validity, discriminant validity and reliability. In order to analyze the data, bootstrapping was used.

Findings

The empirical results showed that all knowledge management processes are statistically significant in influencing innovation performance. Furthermore, big data analytics moderates the relationship between knowledge management processes and innovation performance.

Research limitations/implications

The results of this cross-sectional study are limited to one country and one industry due to methodological limitations, and the results represent a snapshot at a particular point in time.

Originality/value

Jordan's medical leaders will benefit from this study, since it emphasizes the importance of knowledge management processes to enhance innovation performance, especially given the importance of big data analytics in the field, increasing innovation capabilities in the medical field, thereby increasing innovation levels.

Details

Kybernetes, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 18 January 2024

Bo Song, Kun Yuan, Yiwen Jin and Liangjie Zhao

How does the regional institutional environment of China’s transitional economy influence the relationship between a firm’s R&D investment intensity and innovation performance

Abstract

Purpose

How does the regional institutional environment of China’s transitional economy influence the relationship between a firm’s R&D investment intensity and innovation performance? Based on the resource-based view and institution-based view, an empirical study was executed to identify the moderating effects of institutional environment variables from the Marketization Index of China’s Provinces: National Economic Research Institute (NERI) Report on the relationship between a firm’s R&D investment intensity and innovation performance. This paper aims to study how effectively improve the impact of R&D investment intensity on innovation performance under the influence of the institutional environment.

Design/methodology/approach

Against the background of China’s transitional economy, the authors present empirical evidence from panel data covering 374 Chinese A-share listed high-tech manufacturing firms on the Shanghai and Shenzhen Stock Exchange to examine the relationship between R&D investment intensity and innovation performance.

Findings

Empirical results illustrate the following: The R&D investment intensity and innovation performance displayed an inverse U-shaped relationship, and R&D investment intensity had a lagged effect on R&D output according to the uncertainty and industrialization period of R&D activities. The level of financial market development can intensify the effects of R&D investment intensity on innovation performance. The degree of government intervention weakens the effect of R&D investment intensity on innovation performance.

Originality/value

Based on the background of China’s institutional environment during the transition period, combined with previous research and the Marketization Index of China’s Provinces: NERI Report, selecting financial market development, government intervention level and legalization level as moderating variables to study how effectively improve the impact of R&D investment intensity on innovation performance under the influence of the institutional environment. Due to the different ownership of firms during the transition period, the appropriate impact of the institutional environment on the relationship between R&D investment intensity and innovation performance will vary. Moreover, the level of legalization would impact on innovation insignificantly.

Details

Chinese Management Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1750-614X

Keywords

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