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Article
Publication date: 3 January 2019

Adeel Tariq, Yuosre Badir and Supasith Chonglerttham

The purpose of this paper is to investigate the influence of green product innovation performance (GPIP) on a firm’s financial performance (i.e. a firm’s profitability and…

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Abstract

Purpose

The purpose of this paper is to investigate the influence of green product innovation performance (GPIP) on a firm’s financial performance (i.e. a firm’s profitability and risk). In addition, it has adopted the resource-based view and contingency theory to explore how GPIP and a firm’s financial performance relationship is manifested when subject to the moderating role of a firm’s market resource intensity and certain environmental factors, such as technological turbulence and market turbulence.

Design/methodology/approach

Data were collected from 202 publicly listed Thai manufacturing firms. This research has used hierarchical regression analyses to empirically test the proposed research hypotheses.

Findings

The findings reveal that GPIP exerts a significant influence on a firm’s financial performance, i.e. higher the GPIP, higher the firm’s profitability and lower the firm’s financial risk. Moreover, findings support the theoretical assertions that the higher level of market resource intensity, market turbulence and technological turbulence further strengthens GPIP and a firm’s financial performance relationship.

Originality/value

By considering the independent moderating role of market resource intensity, market turbulence and technological turbulence, this research has contributed to reconcile the previously disparate findings regarding the GPIP and a firm’s financial performance relationship. Moreover, this research has highlighted the role of the essential moderators that business managers must understand and adjust to capitalize on and achieve superior financial performance.

Details

European Journal of Innovation Management, vol. 22 no. 3
Type: Research Article
ISSN: 1460-1060

Keywords

Article
Publication date: 11 July 2017

Wenbin Sun and Rahul Govind

Extant literature indicates that increased product market diversification generates both positive and negative impact on firm performance. This inconclusive pattern…

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Abstract

Purpose

Extant literature indicates that increased product market diversification generates both positive and negative impact on firm performance. This inconclusive pattern hinders the decision-making of deploying a firm’s resources across different markets. This research aims to embed diversification into a moderation-based framework and demonstrates the conditions under which increased diversification produces either beneficial or harmful effects on firm outcomes. The authors introduce another market configuration dimension, viz., market emphasis, and reveal how changes in diversification and in emphasis yield interactive effects on an important firm performance indicator, idiosyncratic risk. An additional moderator, market turbulence, is also incorporated to further enrich the model in a three-way interaction. Results show that when market turbulence is high, and a firm highly skews its resources to some of its markets, diversifying into more market domains will increase firm idiosyncratic risk. A better choice during increased diversification is to evenly emphasize each of its markets. However, in a market displaying low turbulence, the high diversification-high emphasis pattern may be preferred because of lower firm risk.

Design/methodology/approach

To test the hypotheses, the authors collected a comprehensive archival data that contained a large group of public traded US-based manufacturing companies from three different resources. These were the Compustat Annual Database, the Center for Research in Security Prices database and Compustat Business Segment Database. These databases and the combinatorial approach are widely adopted in marketing and management research involving firm strategies and financial outcomes.

Findings

When market turbulence is high, simultaneously increasing market diversification and emphasis will more strongly raise firm idiosyncratic risk. However, polarizing into either diversification or emphasis reduces firm risk. When in a low turbulence market, expanding to more product markets and simultaneously emphasizing key markets will decrease idiosyncratic risk. One noticeable fact is that irrespective of whether a firm is in high or low turbulence conditions, choosing a diversification strategy always decreases firm risk when market emphasis is low. However, the impact of this effect however is higher when turbulence is greater. The authors also present the boundary conditions under which the three-way interaction holds.

Research limitations/implications

First, the extension to the utilization of idiosyncratic risk stretches the understanding of effective ways of reducing firm risks from an angle of marketing management. This view of firm risk also contributes to further analysis of shareholder value. Classic corporate asset valuation focuses more on the financial performance indicators as well as the firm’s strategic domains. This research thus provides a unique and meaningful guideline for the corporate valuation approach from the angle of analyzing the firm’s business segment scope and emphasis in the context of the environment.

Practical implications

The idea about how many product markets a firm should enter is always one of the primary decisions that contain significant trade-offs. This makes the managers choice difficult during the decision-making processes. The authors suggest that managers should not only consider the scope of product markets but also think carefully about the resources allocated toward each segment. A matrix with dimensions of diversification and emphasis can be explicitly studied during the strategy formulation. The individual blocks within this matrix may have significant outcome differences.

Originality/value

Previous research focuses on either a firm’s internal assets or external competitive situations when researchers seek the drivers of risk-reduction. This research extends this horizon by adding the interplay between a set of fundamental firm decision areas, diversification and emphasis and the external conditions facing a firm (turbulence).

Details

European Journal of Marketing, vol. 51 no. 7/8
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 2 December 2020

Wenjun Cai, Jianlin Wu and Jibao Gu

Innovation has been identified as a critical element to achieve firms' growth. The purpose of this study is to investigate the impact of chief executive officer (CEO…

Abstract

Purpose

Innovation has been identified as a critical element to achieve firms' growth. The purpose of this study is to investigate the impact of chief executive officer (CEO) passion on firm innovation, including exploratory and exploitative innovation and examine the moderating roles of market and technological turbulence.

Design/methodology/approach

This study adopts the methodology of survey and uses multisource and time-lagged data of 146 firms in China. Seemingly unrelated regression (SUR) is used to test the hypotheses of this study.

Findings

This study finds that CEO passion promotes exploratory and exploitative innovation. Results also indicate that market turbulence strengthens the effect of CEO passion on exploratory and exploitative innovation, whereas technological turbulence weakens such an effect.

Originality/value

CEO passion is an important, positive affect which inspires CEOs to work for firms, but it has not yet received enough attention in the innovation literature. This study contributes to examining the impact of CEO passion on firm innovation and contributes to the contingency under which CEO passion influences firm innovation. Furthermore, this research finds that the moderating effects of market and technological turbulence are different in the relationship between CEO passion and firm innovation.

Details

Management Decision, vol. 59 no. 6
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 2 July 2020

Leandro Lima dos Santos, Felipe Mendes Borini and Rafael Morais Pereira

Companies need guidance on how to operate in turbulent environments to improve their innovative performance. However, few studies have been done specifically about how to…

Abstract

Purpose

Companies need guidance on how to operate in turbulent environments to improve their innovative performance. However, few studies have been done specifically about how to market and technological turbulence affects the innovative performance in emerging markets. This paper aims to propose model with market turbulence, technological turbulence and firm’s bricolage behavior as antecedents of organizational innovativeness.

Design/methodology/approach

Two conceptualizations of the role of environmental turbulence are examined as follows: that market turbulence and technological turbulence are established as direct antecedents to organizational innovativeness performance; and the model has a mediating effect through the bricolage behavior. In this sense, the strengths of the paths differ depending on the presence of bricolage. Data were collected from 215 firms operating in Brazil, analyzed using the partial least squares (PLS)-structural equation modeling (SEM) technique as a quantitative method to test the hypotheses.

Findings

The results indicate that the mediating effect evidenced by the bricolage behavior was supported. In other words, the path from market and technological turbulence to organizational innovativeness is significantly better when permeated by bricolage behavior in the organization.

Research limitations/implications

It can be suggested to conduct similar research with larger sample size and applying control variables such as the size of the company, as smaller companies have less access to resources and maybe the engagement in bricolage can be even more substantial for them to keep innovating and to remain competitive in times of turbulence.

Practical implications

Some managerial recommendations and implications are provided. Managers should recognize the possible improvements in the organizational innovativeness development by actively including the bricolage behavior among their companies’ activities.

Originality/value

The theoretical contribution to the academic knowledge lies in corroborating with previous studies, which pointed out that bricolage has an influence on a firm’s innovativeness and some studies, which address perspectives in the organizational learning field.

Details

Journal of Entrepreneurship in Emerging Economies, vol. 13 no. 2
Type: Research Article
ISSN: 2053-4604

Keywords

Book part
Publication date: 30 October 2018

FR. Oswald A. J. Mascarenhas, S.J.

The stable and predictable agricultural, infrastructure, manufacturing, and energy economies of hard products have been followed by economies that offer softer products…

Abstract

Executive Summary

The stable and predictable agricultural, infrastructure, manufacturing, and energy economies of hard products have been followed by economies that offer softer products such as services, information, knowledge, health care, digitization, networking, globalization, entertainment, sustainability, and currently, well-being and happiness. Such soft market products are loaded with buyer–seller information asymmetries (BSIA) that create market risk, market uncertainty, market chaos, and ambiguity – all of which are specific types of market turbulence. In this context, this chapter investigates the phenomena of turbulence, specifically environmental turbulence whose major subsets are technological turbulence and market turbulence. We cite several recent geopolitical variables and events that have aggravated market turbulence such as Chinese economic invasion of global markets, global climate change, Brexit, international asylum-seeking migrations, artificial intelligence, and demonetization. We also define market turbulence as varied forms of BSIA for which both marketers and consumers must have appropriate joint responsibility. In addition, we focus on ethical and moral marketing responsibilities for reducing BSIA under each type of turbulence.

Details

Corporate Ethics for Turbulent Markets
Type: Book
ISBN: 978-1-78756-187-8

Article
Publication date: 11 May 2015

Mikael Hilmersson, Susanne Sandberg and Firouze Pourmand Hilmersson

– The purpose of the study is to examine the political sources of uncertainty in the internationalization process of small- and medium-sized enterprises (SMEs).

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Abstract

Purpose

The purpose of the study is to examine the political sources of uncertainty in the internationalization process of small- and medium-sized enterprises (SMEs).

Design/methodology/approach

The authors theoretically derived a research model embracing three hypotheses. These hypotheses are tested on a sample of 203 on-site interviewed SMEs. Regression analysis is used to test two individual hypotheses and one interaction effect.

Findings

The regression analysis reveals that political knowledge possessed by the firm reduces uncertainty in the internationalization process. Political turbulence is shown to increase uncertainty in the internationalization. The interaction shows that political turbulence obliterates the uncertainty reducing effect by political knowledge.

Research limitations/implications

The authors identifies two main political sources of uncertainty in the internationalization process of SMEs. For managers and business researchers, it is shown that experiential knowledge is useful under stable conditions. When turbulence increases, however, firms need to develop alternative strategies for uncertainty management.

Originality/value

This study is the first to test the uncertainty reducing effects of experiential knowledge in turbulent environments. Thus, by running the interaction between political knowledge and political turbulence, the authors shed new light on the usefulness of previous experiences in the internationalization process.

Details

European Business Review, vol. 27 no. 3
Type: Research Article
ISSN: 0955-534X

Keywords

Article
Publication date: 5 December 2022

Xiaohong Xiao, Chengxu Zhou and Hongyi Mao

This study aims to investigate the impact of the two essential subjects of servitization (service and goods innovation) on customer satisfaction. The authors explained the…

Abstract

Purpose

This study aims to investigate the impact of the two essential subjects of servitization (service and goods innovation) on customer satisfaction. The authors explained the paradox of servitization by determining how service innovation and goods innovation affect customer satisfaction interacting with environmental turbulence and marketing intensity.

Design/methodology/approach

The authors obtained 376 observations of 84 listed Chinese companies. On the basis of content analysis and measurement from secondhand data, the authors first tested the hypotheses in the fixed-effects model. The authors conducted a split-sample analysis by dividing environmental turbulence into two samples to explain the results effectively and better interpret the relationship between two innovations to customer satisfaction.

Findings

The results show that goods and service innovations positively affect customer satisfaction, but the effect of service innovation is more substantial. Furthermore, environmental turbulence negatively moderates the relationship between service innovation and customer satisfaction. The empirical results indicated that, if enterprises enhance marketing intensity, then the growth of environmental turbulence weakens the positive impact of goods and services innovation on customer satisfaction.

Originality/value

This study provided an understanding of the impact of servitization on intangible assets. This study also responded to previous literature’s call for research on the impact of external environmental factors on servitization.

Details

Journal of Business & Industrial Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 20 October 2022

Joe Hazzam, Stephen Wilkins and Carolyn Strong

The study examines the role of social media technologies (SMTs) as a driver of organization cultural intelligence (OCI) and new product development (NPD) capabilities, and…

Abstract

Purpose

The study examines the role of social media technologies (SMTs) as a driver of organization cultural intelligence (OCI) and new product development (NPD) capabilities, and how the complementary effects of these capabilities contribute to multinational corporations (MNCs)’ performance. Further, the study investigates the capability–performance relationship under conditions of high and low market and technological turbulence.

Design/methodology/approach

A quantitative survey method was implemented, with the data provided by senior marketing managers employed in MNC regional offices. The proposed model was tested using structural equation modeling and multi-group moderation analysis, and fuzzy-set qualitative comparative analysis (fsQCA).

Findings

The results indicate that SMTs support the development of OCI and NPD capabilities, which in turn contribute to MNC regional performance. A high level of technological turbulence only weakens the relationship between OCI and performance.

Research limitations/implications

The results suggest that OCI contributes to MNCs’ performance, by deploying social media information and complementing the organization’s NPD capability under a specific environmental context.

Practical implications

The paper offers practical recommendations to MNCs on social media use when developing and launching new products in different regional markets. MNCs need to recruit culturally intelligent managers, who consider the level of market and technological turbulence when combining several types of capabilities.

Originality/value

Within the dynamic marketing capabilities literature, this is the first study to incorporate and reliably measure cultural intelligence capability. The research offers empirical evidence that OCI and NPD capabilities are necessary to achieve superior MNC performance and depend on the level of market and technological turbulence.

Details

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

Keywords

Article
Publication date: 15 June 2022

Zhen Luo, Julie Callaert, Deming Zeng and Bart Van Looy

Shifting focus from innovation quantity to innovation quality becomes a priority in innovation study, business and policy. This paper aims to figure out whether and how…

Abstract

Purpose

Shifting focus from innovation quantity to innovation quality becomes a priority in innovation study, business and policy. This paper aims to figure out whether and how knowledge recombination (recombinant exploration/recombinant exploitation) affects firms' innovation quality (technological value/economic value) and how these relationships are moderated by environmental turbulence (technological turbulence/market turbulence) in the context of open innovation.

Design/methodology/approach

A panel data set is built on 373 Chinese pharmaceutical firms' patents and new product data from 1997 to 2020. And a negative binomial regression model is applied to test the hypotheses.

Findings

The analyses indicate that (1) recombinant exploration favors technological value but hinders economic value, while (2) recombinant exploitation benefits both. Regarding environmental turbulence's moderating effects, (3) technological turbulence has opposite moderating effects on the impacts of recombinant exploration versus exploitation on technological value, whereas (4) market turbulence benefits the impacts of both on economic value.

Practical implications

This research provides the answer to practitioners' question that “How to improve innovation quality?” That is “Think from a recombination logic, clarify your internal value preference and the external turbulence.”

Originality/value

From an emerging perspective of innovation, this research expands the innovation quality research to a recombination logic. A multi-dimensional research framework is developed to clarify the complex relationships between knowledge recombination and innovation quality. Finally, two moderators, technological versus market turbulence, formulate more targeted implications for firms' innovation management in open innovation.

Details

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

Keywords

Article
Publication date: 24 February 2021

Samuel Gyedu, Heng Tang, Albert Henry Ntarmah and Emmanuel Kwaku Manu

This study has dealt with the gap in the literature, by probing the influence of innovation capability on business performance. This paper aims to test the moderation role…

Abstract

Purpose

This study has dealt with the gap in the literature, by probing the influence of innovation capability on business performance. This paper aims to test the moderation role of technological turbulence (TT) and market turbulence (MT) on the relationship between innovation capability (IC) and business performance (BP).

Design/methodology/approach

The study used a quantitative survey and a sample size of 579 departmental heads. Branch managers and permanent staff from the Greater Accra, Ashanti and Western Region in the Ghana telecommunication sector. The obtained data was analysed through the STATA 15.0 and AMOS statistical software package.

Findings

The empirical results from multiple linear regressions revealed that product/service innovation, process innovation, marketing innovation and administrative innovation had positive effects on business performance. The outcome of the moderation analysis further shown that technological turbulence positively moderates the relationship that existed between the various constructs of innovation capability and business performance indicating that technological turbulence significantly strengthens the relationship between these variables. On the contrary, market turbulence significantly weakens the relationship between the various innovation capability constructs and business performance.

Research limitations/implications

Although this research has made significant contributions to both theory and practice, there are certainly some limitations and future research directions that need to be considered to appropriately position the study findings. Firstly, because of the limited sample size (579), further testing of these constructs needs to be carried out in future research using alternative data. Related to this, it would be prudent if the instruments and models developed in this research were tested in different industry contexts. Also, because the Ghana telecommunication sector is made up of foreign companies, comparative research could be conducted to compare the IC and performance of Ghana and the other countries where these companies operate. Indeed, analyses of IC and BP associated with the same companies in different countries may prove to be very beneficial in the global context. Secondly, this research used only TT and MT to test the moderating effect of ET on the association of IC with BP. Future research can include competition intensity which may change or confirm the outcome of these studies. Thirdly, only qualitative data were used for the measurement of IC and the level of BP. Therefore, future research could use quantitative or both qualitative and quantitative data to confirm if there will be significant differences in the results obtained.

Practical implications

Literature has examined the moderation effect of ET on different variables and relationships in different organizational settings. This study has tried to analyse the moderating effect of ET on the relationship of IC with BP. The outcomes of this study are similar to the previous research studies mentioned above, however, limited studies have been conducted on IC and its relationship with BP in the context of ET especially in the most vibrant sector of Ghana’s economy. These findings are very innovative and contribute enormously to literature and knowledge by indicating which moderating ET positively and significantly strengthens and the type which weakens the existing relationship between IC and BP within the Ghanaian telecommunication sector which no researcher has conducted. These findings will go a long way by aiding the players in this sector to tauten their IC wings to achieve resilient performance around the globe.

Social implications

This will also contribute to the growth of Ghana’s economy as sources of revenue and employment. Additionally, the results obtained from this study will prompt managers to make more informed and effective decisions regarding innovation activities and the environments in which they operate.

Originality/value

This paper adds knowledge and literature to the existing ones. It is a new development in the research field of Ghana. This is the first journal this study has been submitted.

Details

International Journal of Innovation Science, vol. 13 no. 4
Type: Research Article
ISSN: 1757-2223

Keywords

1 – 10 of over 8000