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1 – 10 of over 6000Amonrat Thoumrungroje and Supara Kapasuwan
Given the inconclusive findings on relational ties–performance relationships, this study approaches this phenomenon through social capital theory and resource-based view (RBV…
Abstract
Purpose
Given the inconclusive findings on relational ties–performance relationships, this study approaches this phenomenon through social capital theory and resource-based view (RBV) lenses to advocate the mediating role of nonmarket- and market-based capabilities.
Design/methodology/approach
A survey-based research methodology was employed. A list of 1,425 foreign subsidiaries was identified from the Thailand Board of Investment (BOI) website, and key informants were contacted. A final response rate of 11.8% was achieved. All hypotheses were tested via path analyses with the bootstrapping technique.
Findings
The results indicate that the relationships between business- and government-relational ties and performance are fully mediated by market- and nonmarket-based capabilities with the latter serving as essential but inadequate preconditions for achieving superior firm performance.
Practical implications
To mitigate the liability of foreignness and to enhance performance of foreign subsidiaries operating in volatile emerging economies such as Thailand, government and business relational ties are crucial in developing nonmarket- and market-based capabilities. The nonmarket-based capabilities entail the ability to negotiate with and influence policy makers, which in turn helps augment the development of market-based capabilities, including the ability to be highly responsive to customers' needs.
Originality/value
This research illustrates the embedded roles of nonmarket and market-based capabilities developed through complex interactions among social actors, including the multinational enterprises’ (MNEs’) subsidiaries and government and nongovernment counterparts, in attaining superior performance. The results indicate how relational ties enable MNEs’ subsidiaries to develop various capabilities, and how these capabilities are related with each other and linked to firm performance. Findings from an emerging economy undergoing recent political and economic uncertainties also provide theoretical advancements for international business studies.
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Roseline Barbara Easmon, Adelaide Naa Amerley Kastner, Charles Blankson and Mahmoud Abdulai Mahmoud
The purpose of this paper is to understand the direct impact of social capital and the influence of market-based capabilities as intervening variables on the export performance of…
Abstract
Purpose
The purpose of this paper is to understand the direct impact of social capital and the influence of market-based capabilities as intervening variables on the export performance of small and medium-sized enterprises (SMEs) in Ghana.
Design/methodology/approach
Questionnaire-based survey was used to collect data from top executives and senior managers of exporting companies in Ghana. Data obtained were analysed using the structural equation modelling.
Findings
The findings revealed that social capital of SMEs exert the greatest influence on their export performance. Innovation and marketing capabilities are also key drivers of export performance among SMEs as they fully mediate the social capital–export performance relationship. Notwithstanding, marketing capabilities appear to exert a greater influence than innovation capabilities on the export performance of SMEs.
Research limitations/implications
The study used perceptual measures of international performance by managers of SMEs in the Ghanaian exporting sector making it difficult to determine respondent bias.
Practical implications
Managers of exporting firms should build stronger relationships with their customers and suppliers who contribute significantly to their export performance. SMEs would also have to hone their innovation and marketing skills as strategic components in enhancing their export performance.
Social implications
Market-based resources such as marketing and innovation should not be taken for granted by SMEs in the export business.
Originality/value
The study offers some lessons on how small firms can sharpen their marketing and innovation capabilities to derive export performance benefits from social capital. Theoretically, while the findings offer strong evidence reinforcing the DC theory, an exploration of the nexus of the theories brings to the fore the need to reassess the resource-based view and SC theories.
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The purpose of this paper is to investigate the proper matches between institutional business ties (to state-owned enterprises (SOEs) and to banks) and firm capabilities…
Abstract
Purpose
The purpose of this paper is to investigate the proper matches between institutional business ties (to state-owned enterprises (SOEs) and to banks) and firm capabilities (technological capability and marketing capability) in impacting the radical innovation of manufacturing firms in China.
Design/methodology/approach
Using the samples of 208 manufacturing firms in China, this study runs three regression models to test all hypotheses.
Findings
Ties to SOEs and ties to banks are positively related to radical innovation of manufacturing firms in China. Further, the technological capability and marketing capability have different functions on moderating the relationship between institutional business ties and radical innovation.
Practical implications
The results imply that managers of manufacturing firms should strive to establish close connections to those organizations that are set-up by government in China. In addition, managers should cautious about the synergies between different institutional business ties and different internal capabilities, and properly matching them to develop radical innovation.
Originality/value
This study enriches and extends the managerial ties literature by going beyond previous narrow focus on either business ties or political ties to address a particular type of organization that is set-up by the governments but operate in the business world. The findings of proper ties-capabilities matches provide nuanced understandings to dynamically manage external resources and internal capabilities for the synergetic benefits (e.g. radical innovation). This study also offer a theoretical paradigm (i.e. resource management model) for manufacturing firms to lessen the striking tension between the urgent needs for radical innovation and the hostile ground for conducting radical innovation.
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Piyush Ranjan and Jogendra Kumar Nayak
This study aims to present a conceptual framework for understanding the dual orientations of market-based organizational learning (MBOL), namely, market orientation (MO) and…
Abstract
Purpose
This study aims to present a conceptual framework for understanding the dual orientations of market-based organizational learning (MBOL), namely, market orientation (MO) and learning orientation (LO), in the development of pricing capability (PC) with the goal of improving business performance (BP). This framework further explores the moderating effects of coordination mechanism (CM) and environmental dynamism (ED) on the PC–BP link and the mediating role of PC on the relationship between MBOL and BP.
Design/methodology/approach
This study applied the partial least squares structural equation modeling on survey data from 298 Indian small- and medium-sized enterprises (SMEs) operating in manufacturing and service sectors.
Findings
The findings indicate that MBOL significantly contributes to PC development, which in turn improves BP. Interestingly, PC acts as a partial mediator in the MO–BP link, as well as LO–BP link. Moreover, CM and ED strengthen the effect of PC on BP. Finally, MO and LO have substantial and distinct effects on PC and BP.
Research limitations/implications
This study examines only one market-related capability, i.e. PC, considers multi-industry SMEs rather than specific large industries and uses cross-sectional instead of longitudinal data.
Practical implications
These findings are crucial from managerial standpoints because SMEs need to understand the MBOL dimensions, including MO and LO, and their significance in improving PC and BP.
Originality/value
Understanding how MBOL adoption contributes to superior performance is critical, but research in the SMEs context is still lacking. This study addresses a research gap by examining the impact of MBOL on BP, both directly and indirectly, through PC in the context of SMEs.
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Mehrgan Malekpour, Federica Caboni, Mohsen Nikzadask and Vincenzo Basile
This paper aims to identify the combination of innovation determinants driving the creation of innovative products amongst market leaders and market followers in food and beverage…
Abstract
Purpose
This paper aims to identify the combination of innovation determinants driving the creation of innovative products amongst market leaders and market followers in food and beverage (F&B) firms.
Design/methodology/approach
This research is based on the case study methodology by using two types of data sources: (1) semi-structured interviews with industry experts and (2) in-depth interviews with managers. In addition, a questionnaire adapted from prior research was used to consider market and firm types.
Findings
Suggesting an integrated theoretical framework based on firm-based factors and market-based factors, this study identified a combination of determinants significantly impacting innovative products in the market. Specifically, these determinants are competition intensity and innovation capability (a combination of research and development (R&D) investment and marketing capabilities). The study also examined how these determinants vary depending on whether the firms are market leaders or market followers.
Practical implications
This research provides practical insights for managers working in the F&B industry by using case studies and exploring the determinants of developing innovative products. In doing so, suitable strategies can be selected according to the market and firm situations.
Originality/value
The originality of the study is shown by focussing on how different combinations of market and firm factors could be applied in creating successful innovative products in the food sector.
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Nebojsa Davcik and Nicholas Grigoriou
The purpose of this paper is to address how marketing assets and resources of the firm perform under different product (brand) innovation conditions using the dynamic marketing…
Abstract
Purpose
The purpose of this paper is to address how marketing assets and resources of the firm perform under different product (brand) innovation conditions using the dynamic marketing capabilities (DMC) research perspective. The study contributes to the DMC research stream showing the effects and performance of heterogeneous firm drivers and resources. Academic research to date has paid a little attention to the interrelationship between market share as a performance metric, dynamic capabilities and product (brand) innovation. The current study bridges this knowledge gap by empirically validating the effects of DMC on market share performance output using panel data for 753 retail food brands.
Design/methodology/approach
The model was initially fitted with the β regression analysis and cluster analysis in the second step of the estimation procedure. The results of simulation by Monte Carlo experimentation are discussed.
Findings
The findings show that firms leverage their marketing capabilities unequally in the multi-brand portfolios, which leads to an unequal intra-firm distribution of assets and resources. The research contributes to the understanding of the brand competitive dynamics and appropriate deployment of assets and resources for improved firm performance.
Originality/value
These findings are useful for both academics and practitioners because they address new and future research. In doing so, the authors advance the firm performance and branding literature with extension in the DMC literature.
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Ashish Malik, Liem Viet Ngo and Russel P.J. Kingshott
This exploratory study aims to analyse the influence of organisational resources and capabilities on relationship quality and firm performance in the context of high-technology…
Abstract
Purpose
This exploratory study aims to analyse the influence of organisational resources and capabilities on relationship quality and firm performance in the context of high-technology offshore outsourcing service vendors.
Design/methodology/approach
Using a qualitative case study design, data from four offshore business process and information technology outsourcing firms were analysed.
Findings
Findings highlight that resource dependence, cultural orientation and the vendor’s resources and capabilities strengthen relationship quality and affect firm performance.
Originality/value
The distinctive contribution of this study lies in identifying key organisational mechanisms that improve relationship quality and firm performance, as well as help to understand the adverse effects of ethnocentricity and power faced by vendors and subsidiaries within diverse intercultural contexts. Study limitations and future research directions, along with implications for theory and practice, are also discussed.
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Emir Agic, Merima Cinjarevic, Emir Kurtovic and Muris Cicic
The purpose of this study is to create the taxonomy of firms based on the nature of the relationship between market-based resources and marketing capabilities. Anchored in the…
Abstract
Purpose
The purpose of this study is to create the taxonomy of firms based on the nature of the relationship between market-based resources and marketing capabilities. Anchored in the configuration theory, the present study aims to explore simultaneous roles of market-based resources, i.e. customer orientation and competitor orientation, and marketing capabilities, i.e. the execution of marketing practices and activities within a firm, on firm performance.
Design/methodology/approach
A self-administrated questionnaire was used to collect data from chief executive officers or top managers of 220 firms in Bosnia and Herzegovina, a transitional economy in South Eastern Europe.
Findings
Drawing on a configuration approach via the latent class analysis, the authors empirically derive four distinct strategic marketing patterns, namely, marketing super achievers, marketing-focused virtuosi, marketing drifters and marketing mass pushers. The findings also highlight how business performance outcomes differ as a function of a class membership.
Research limitations/implications
Cross-sectional research design and focus on a single country are main limitations of the present study. Thus, longitudinal studies in the context of developed and fast-reforming transition economies are advisable for future work.
Practical implications
This study enhances the knowledge on how a firm can configure or bundle its market-based resources and marketing capabilities to produce desired outcomes. Findings suggest that joint attention to building market-oriented culture and developing marketing capabilities seems to pay off. However, the authors found that a lack of market knowledge can be substituted by the firms’ ability to build effective promotional and branding capabilities. Thus, the present study adds to the emerging dialog on the relative importance of alternative strategic orientations in achieving superior business performance.
Originality/value
This study contributes to the strategic marketing literature by examining the synergistic effect of market-based resources and marketing capabilities on firm performance using a configurational approach. It also provides support for the equifinality proposition, suggesting that different “bundles” of market-based resources and marketing capabilities can lead to similar level of performance outcomes.
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Stefano Denicolai, Roger Strange and Antonella Zucchella
To provide a theoretical explanation of why outsourcing relationships are inherently dynamic, in that the dependence of each party upon the other inevitably changes over time and…
Abstract
Purpose
To provide a theoretical explanation of why outsourcing relationships are inherently dynamic, in that the dependence of each party upon the other inevitably changes over time and thus so too will the power asymmetries between the parties.
Methodology/approach
Our approach is theoretical and draws upon insights from resource dependence theory, transaction cost economics, and the resource-based view of the firm, to focus on the power asymmetries between the focal firm undertaking the outsourcing and its suppliers. We illustrate our arguments using a longitudinal case study of the evolving relationship between Apple and the Foxconn Technology Group.
Practical implications
For supplier firms, the message is to upgrade, develop distinctive resources and capabilities, and diversify the customer base. Otherwise, suppliers will forever be condemned to low operating margins and the threat of being replaced by cheaper, more agile rivals. For focal firms, the message is not to rest on your laurels. The potency of isolating mechanisms may well dissipate, suppliers will no doubt strive to lessen their positions of dependence and competitors will inevitably emerge, with the result that once-profitable outsourcing arrangements may quickly erode.
Originality/value
We highlight the crucial role played by isolating mechanisms to underpin power asymmetries in outsourcing relationships, and thus enable focal firms to appropriate the rents from externalized value chain activities. We argue that the efficacy of many isolating mechanisms will tend to dissipate over time as competitors emerge to imitate successful strategies and products, and as resource and capability asymmetries erode.
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Joanne Freeman and Chris Styles
The purpose of this paper is to build on the resource-based view to analyze the influence of location effects on a firm's ability to develop export-related resources and…
Abstract
Purpose
The purpose of this paper is to build on the resource-based view to analyze the influence of location effects on a firm's ability to develop export-related resources and capabilities which then impacts on export performance.
Design/methodology/approach
To test the proposed hypotheses, a sample of small-to-medium exporting firms located in Australia is analyzed using partial least squared modeling.
Findings
The findings show that access to location specific advantages (i.e. access to sources of supply, government agencies, export-related services and infrastructure, managerial labor skills, and network opportunities) are essential antecedents for the firm's ability to develop export-related resources and capabilities which in turn drives export performance outcomes.
Research limitations/implications
Results from this study are from one state in Australia, and caution should be exercised when generalizing findings to other geographic regions.
Practical implications
These findings suggest that location effects do indeed present challenges to regional SME firms. Indeed the substantial impacts of sourcing experienced managerial staff with export-related skills affirm the critical role of human resources. This offers insights concerning the recruitment and reward policies for remote firms having to compete with firms in more attractive or sort after metropolitan locations. Also the findings suggest that managers should give serious thought to the appropriateness of the resources and capabilities needed to increase their export performance.
Originality/value
Even though the role and importance of firm location has been highlighted in the export literature, previous export studies have not focussed on dimensions of location as antecedents to firm resources and capability development.
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