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Article
Publication date: 20 March 2020

Gukdo Byun, Soojin Lee, Steven J. Karau and Ye Dai

By taking a social learning perspective, this study examines the trickle-down effect of empowering leadership across hierarchical levels in an organization. Specifically…

1035

Abstract

Purpose

By taking a social learning perspective, this study examines the trickle-down effect of empowering leadership across hierarchical levels in an organization. Specifically, this study aims to demonstrate that the empowering leadership of higher-level leaders promotes the task performance of employees through the mediation of the empowering leadership of lower-level leaders. It also seeks to confirm the role of performance pressure as a boundary condition in social learning process.

Design/methodology/approach

Under a moderated mediation framework, this study tests our hypotheses through a hierarchical regression analysis. The data used in the analysis is from the survey responses of 209 subordinate-supervisor dyads.

Findings

This study finds that the empowering leadership of higher-level leaders promotes the empowering leadership of lower-level leaders, which indirectly improves the task performance of employees. It also finds that performance pressure perceived by lower-level leaders moderates the relationship between the empowering leadership of higher- and lower-level leaders, thus moderating the proposed indirect effect.

Research limitations/implications

This study complements the findings of previous studies by identifying the trickle-down effect of empowering leadership across different hierarchical levels in an organization and by highlighting its boundary condition. In addition, this study provides evidence for the presence of trickle-down effect of leadership in an Eastern culture.

Practical implications

This study suggests the necessity of leadership education and training programs within organizations by revealing the importance of social learning process for promoting empowering leadership. In addition, it also suggests that performance pressure in an organization not only dampens empowering leadership but also has a negative effect on the task performance of employees.

Originality/value

This study demonstrates the influence mechanism of empowering leadership through a systematic verification of its trickle-down effect, which has been lacking in previous studies. It also highlights the moderating role of performance pressure, as a contextual factor, in the social learning and influence process of empowering leadership.

Details

Leadership & Organization Development Journal, vol. 41 no. 3
Type: Research Article
ISSN: 0143-7739

Keywords

Article
Publication date: 3 October 2016

Patrik Jonsson and Stig-Arne Mattsson

The purpose of this paper is to examine the inventory performance effect of advanced material planning modes and analyse how internal and external contextual difficulties…

1287

Abstract

Purpose

The purpose of this paper is to examine the inventory performance effect of advanced material planning modes and analyse how internal and external contextual difficulties moderate this relationship. This study also identifies avenues for future research.

Design/methodology/approach

The empirical analysis uses a survey of material planning for purchased items in 292 Swedish manufacturing and wholesaling companies. Three dimensions of inventory performance are dependent variables: material planning performance, inventory turnover rate, and service level.

Findings

Advanced material planning modes are directly associated with material planning performance, but this study could not verify direct associations with inventory turnover rate and service-level performances. External and internal contextual difficulties have direct effects on all inventory performance dimensions and moderate the inventory performance effect of advanced material planning modes. The moderating effect is stronger in non-difficult contexts, for which advanced material planning has significant inventory performance effects. Demand- and human-related contextual dimensions are especially critical.

Practical implications

The study identifies the following guidelines for companies to consider in order to unlock the potential of advanced material planning: consider full implementation of advanced material planning in non-difficult contexts; minimise the plan variability effects of high parameter revision and planning frequencies; minimise the need for, and use of, manual modification of planned orders before release; reduce demand uncertainty and variability; and secure appropriate human skills and working time.

Originality/value

This study somewhat contradicts the literature on material planning by not finding a direct positive effect on any inventory performance dimension from analytical design of order quantities and safety stocks. The research adds to the literature by identifying direct and moderating effects of external and internal contextual difficulties on all three-inventory performance dimensions. The relative importance of managing automatic order release identified in the study motivates future research as the effect has not been previously highlighted in the literature. Accordingly, avenues for future research and an agenda for practice-oriented research are suggested.

Details

International Journal of Physical Distribution & Logistics Management, vol. 46 no. 9
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 24 May 2022

Maha Khemakhem Jardak and Salah Ben Hamad

The objective of this research is to examine empirically the effects of digital maturity (DM) on the firm's financial performance as measured by return on assets (ROA)…

Abstract

Purpose

The objective of this research is to examine empirically the effects of digital maturity (DM) on the firm's financial performance as measured by return on assets (ROA), return on equity (ROE) and Tobin's Q.

Design/methodology/approach

The authors use a panel data sample of 92 observations collected from 23 listed firms on Sweden's stock exchange over four years, 2015–2018. The authors hand collect DM from the digital leader's reports and collect financial data from DataStream. Using both static and dynamic panel (generalized method of moments (GMM) estimation) regression models to perform endogeneity problem, the authors explore the impact of the DM index on ROA, ROE and Q of Tobin.

Findings

The results show that DM has a negative effect on ROA and ROE but a positive effect on Q of Tobin. This negative relationship can be explained, by the fact that information technology (IT) investment and the DM could take years to be materialized and to be captured by performance indicators. Company investment in IT will increase and basically the ROA will be negatively affected because the higher value of IT assets is not amortized. Nevertheless, in the long term, company can maximize its performance. The positive effect on Q of Tobin captures the long-run effect of digital transformation.

Research limitations/implications

This research can be helpful for firms in their process of digital transformation to succeed with the change, create value and to understand the challenges they have to face. In the short term, firms undertaking digital transformation will face some financial difficulties which affect negatively their ROA and ROE, but in the long term they can maximize their performance (captured by Tobin’s Q) and improve their market value.

Originality/value

In previous research, the impact of digital transformation on performance has been measured in terms of revenue growth, profit margins and in terms of earnings before interest and taxes (EBIT). Even if the authors have sufficient evidence of the positive effect of digital transformation on organizational performance, there is no support of the positive effect on financial performance. So, the authors try to fill this gap. This research has also the merit of examining this relationship empirically through a dynamic panel data estimation two-step system GMM, while the majority of previous studies are qualitative in nature based on interviews and questionnaires or simple correlations.

Details

The Journal of Risk Finance, vol. 23 no. 4
Type: Research Article
ISSN: 1526-5943

Keywords

Article
Publication date: 31 May 2022

Mohammad Monirul Islam

This study aims to identify the effects of innovation types on the service firm’s financial and nonfinancial performance as well as mediation and moderation effects of…

Abstract

Purpose

This study aims to identify the effects of innovation types on the service firm’s financial and nonfinancial performance as well as mediation and moderation effects of innovation and the firms’ performance linkages in the Indian service sector.

Design/methodology/approach

This study uses combined data from the World Bank innovation survey 2014 and World Bank enterprise survey (WBES) 2014 for India. It classified innovations into technological innovation (service and process) and nontechnological innovation (organizational and marketing) and used financial and nonfinancial performance measures. This study applies variance-based partial least square structural equation modeling (PLS-SEM) using Smart PLS 3 software.

Findings

The study results suggest that service innovation has the highest significant effect on a firm’s financial and nonfinancial performance, followed by process innovation. Marketing and organizational innovation have a long route to contribute to a firm’s financial performance via innovative and nonfinancial performance. The study results do not find any synergy effects of innovation types. Multi-group analysis (MGA) results suggest several significant distinctions in the path relationships between small and medium-sizes and large firms.

Originality/value

This study provides several crucial policy suggestions for the managers and policymakers concerning the effects of service and process innovation on service firms’ performance in India and the mediating factors of these relationships. The study suggests that managers should pay the highest importance to service innovation to swiftly and markedly surge service firms’ financial and nonfinancial performances. In contrast, a service firm’s innovative performance mainly results from its organizational and marketing innovations.

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: 23 August 2017

Solveig Kirstine Bennike Bennedsen and Lærke Lissau Lund-Sørensen

In this chapter, we analyzed the effects of internationalization on innovation, productivity, and firm performance among multinational pharmaceutical companies as…

Abstract

In this chapter, we analyzed the effects of internationalization on innovation, productivity, and firm performance among multinational pharmaceutical companies as representatives of a global knowledge-based industry. The empirical analysis used multiple stepwise regressions based on a sample of 149 firms headquartered in Europe and the US. The results indicate that innovation outcomes are positively correlated to the number of foreign subsidiaries (scope internationalization), whereas surprisingly, formal research and development (R&D) does not seem to directly influence innovation. This suggests that the firms benefit from local overseas subsidiaries to create and implement new innovative offerings. The number of foreign subsidiaries has a U-shaped relationship to patent productivity suggesting that firms can gain advantages by locating cost-intensive activities in low-cost countries and critical tasks in advanced market locations. Firm performance has a U-shaped relationship to sales abroad (scale internationalization) and the relationship is further enhanced by a high focus on R&D. This suggests that sales abroad enable scale economies, where R&D improves quality and relevance of products and thereby boosts performance. Finally, to validate the findings we conducted two semi-structured interviews with representative industry experts and gained further insights for an extended interpretation of results.

Details

The Responsive Global Organization
Type: Book
ISBN: 978-1-78714-831-4

Keywords

Article
Publication date: 6 May 2022

Patrícia Gomes and Sílvia M. Mendes

This paper investigates organizational performance effects by using performance management (PM) practices (both quality and internal managerial practices) and the…

Abstract

Purpose

This paper investigates organizational performance effects by using performance management (PM) practices (both quality and internal managerial practices) and the moderating effects of the organizational context (cultural aspects and government pressures) on this relationship.

Design/methodology/approach

Interrelationships are studied based on data collected by a unique survey administered to Portuguese government agencies. A combination of the economic theory (and the New Public Management [NPM] assumptions) with the institutional theory (inspired by the old institutional economy [OIE] and the new institutional sociology [NIS]) provides a plausibly adequate theoretical framework.

Findings

These support the hypothesis about the positive effects of PM practices use (both internal and quality-oriented practices) on organizational performance which validates economic and NPM assumptions. The regression results also show that performance would improve if PM practices were aligned with the organizational culture (at least partially). Looking at the moderating effects, the study finds that agencies more oriented to the use of internal management practices aligned with a citizen-centred approach would have improvements in internal performance, reinforcing OIE assumptions. In addition, findings confirm expectations about the insignificant impact on performance when agencies use PM practices under great government pressures (NIS in the isomorphism perspective).

Research limitations/implications

The limitations appointed in the literature regarding the use of the survey method also apply to this study.

Originality/value

This paper innovates by the research on the interrelationships between the organizational context, the use of PM practices and the organizational performance. The use of different theories in a complementary way (economic and institutional theories) in the explanation of performance consequences provides new insights into the body of performance management in the public sector.

Details

International Journal of Productivity and Performance Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1741-0401

Keywords

Article
Publication date: 25 January 2022

Rajesh Rajaguru, Margaret Jekanyika Matanda and Wenqing Zhang

While supply chain scholars concur on the need to integrate supply chain finance (SCF) processes to meet ever-changing customer demands, it is unclear how SCF influences…

Abstract

Purpose

While supply chain scholars concur on the need to integrate supply chain finance (SCF) processes to meet ever-changing customer demands, it is unclear how SCF influences business performance in the presence of perceived opportunistic behavior. Therefore, the study aims to investigate the moderating role of perceived partner opportunism in the supply chain.

Design/methodology/approach

Drawing on the dynamic capability theory (DCT), this study investigates how perceived supply chain partner opportunism moderates the mediating role of supply- and demand-oriented performances on the link between SCF and business performance, from the retail industry perspective. Data was collected from Australian retailing firms. In all, 293 completed surveys were received. Moderated mediation analysis was conducted.

Findings

The results of this study indicate that supply- and demand-oriented performances serially mediate the relationship between SCF and business performance. The study also found that the effect of SCF on performance was higher when perceived partner opportunism was lower.

Practical implications

To respond to changes in consumer preferences and demand effectively, supply chain and marketing managers need to understand the complex interaction between supply- and demand-oriented performances and the key role of SCF in developing such capabilities.

Originality/value

The current study theorizes and demonstrates the effects of supply- and demand-oriented performances that can facilitate the effects of SCF on business performance. Also, the study reveals the effect of each dimension of SCF (accounts payable, accounts receivable and inventory finance) on supply- and demand-oriented performances. Additionally, the study shows the key role of perceived partner opportunism in supply chain management.

Details

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

Keywords

Article
Publication date: 6 December 2021

Christian Schnieder

This paper provides an overview of the empirical findings on how relative performance information (RPI) affects employee behavior. Additionally, the review identifies…

Abstract

Purpose

This paper provides an overview of the empirical findings on how relative performance information (RPI) affects employee behavior. Additionally, the review identifies future research opportunities based on a systematic analysis of the literature that incorporates findings across several disciplines and provides replicable, extensive coverage.

Design/methodology/approach

This paper addresses a research gap via synthesis, drawing on the empirical literature identified and analyzed systematically. A conceptual framework is developed to integrate the studies.

Findings

The effect of RPI on performance through enhanced effort is positive; moreover, publicity and performance-dependent compensation strengthen the effect. However, RPI has also been found to increase sabotage among employees, and it can lead to less honest reporting. Future research could examine critical mediators and moderators of the RPI-performance relationship and thus complement the findings. Additionally, the effects of group-based RPI remain underrepresented. Future work could help to assess in greater detail how RPI interacts with culture and norms and whether RPI is due to personal expectations. There is also room for further research regarding the effects of RPI on cooperation, its consequences for learning, how it affects budgeting decisions and its implications for risk taking.

Originality/value

This paper presents the first literature review in the field of RPI. It provides synthesized knowledge about whether RPI is beneficial or detrimental to organizational performance.

Details

Journal of Accounting Literature, vol. 44 no. 1
Type: Research Article
ISSN: 0737-4607

Keywords

Article
Publication date: 8 February 2021

Ning Li and William Hoggan Murphy

This paper aims to examine the effect of increases in alliance portfolio cultural diversity (IAPCD) on a firm’s performance and how portfolio configuration characteristics…

Abstract

Purpose

This paper aims to examine the effect of increases in alliance portfolio cultural diversity (IAPCD) on a firm’s performance and how portfolio configuration characteristics moderate this effect, aiming to enable managers to make better partner choice and portfolio configuration decisions to improve performance.

Design/methodology/approach

The sample includes 2,326 focal firms from 93 countries that formed 7,616 alliances between the years 1992 and 2006. This study uses generalized method of moments estimation to examine the effects of portfolio changes on next year’s firm sales performance.

Findings

Results reveal an inverted-U relationship between IAPCD and firm performance. Data limitations led to examining moderating effects only on the upslope portion of the inverted-U, indicating that an increasing percentage of joint ventures in a firm’s alliance portfolio strengthens IAPCD’s contribution to performance. Further, increased numbers of marketing alliances or research and development alliances and increased percentage of horizontal alliances in an alliance portfolio have a negative moderating effect.

Research limitations/implications

The sample mostly covers large companies. The data indicate that nearly all firms are on the upslope of an inverted-U IAPCD–to–performance relationship, allowing testing of moderating effects pre-inflection point only.

Practical implications

Firms can leverage the additions of culturally diverse partners toward improved performance through astute configuration decisions in alliance portfolio composition.

Originality/value

This paper uses the knowledge-based view to contribute to the alliance portfolio literature. This study asserts that capacity constraints affect firms’ ability to realize performance gains when taking on culturally diverse partners, an effect moderated by portfolio configurations. This paper tests hypothesis with longitudinal data.

Details

Journal of Business & Industrial Marketing, vol. 37 no. 1
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 9 July 2021

Henry F.L. Chung and Mia Hsiao-Wen Ho

This study aims to examine the effects of international competitive strategies, i.e. cost leadership and differentiation, on export (market share and strategic) performance

Abstract

Purpose

This study aims to examine the effects of international competitive strategies, i.e. cost leadership and differentiation, on export (market share and strategic) performance. This study further explores the roles of exploitative and exploratory organizational learning in the relationships between international competitive strategies and export performances. To fill research gaps, this study intends to provide guidance on how varied exploitative/exploratory organizational learning and cost leadership/differentiation strategy combinations would affect export performance. The outcomes of this study provide a new match and mis-match conceptualization to extant international competitive strategy and organizational learning literature.

Design/methodology/approach

This study selected New Zealand (NZ) exporting as the research setting because exporting plays such a vital role in NZ’s economy and NZ exporting firms have long been highly competitive in international markets (e.g. meat and dairy exporters), with the primary data collected through surveys conducted in 2010 and 2013. This study adopted a three-year lagged performance approach.

Findings

Cost leadership strategy has a positive effect on market share performance. This effect is enhanced by exploitative learning but dampened by exploratory learning. Cost leadership also has a positive effect on strategic performance, which is not affected by exploitative and exploratory learning. Differentiation strategy bears no relation to market share and strategic performance, even allowing for exploitative and exploratory learning. Collectively, the contingent role of organizational learning in the international competitive strategies and export performance framework is far more comprehensive than was expected.

Research limitations/implications

This study reveals that a match between cost leadership strategy and exploitative learning may result in a superior market share. The configuration of differentiation strategy and exploitative learning and the integration of cost leadership strategy and exploratory learning are suggested as mis-matches, as these combinations would not lead to any significant and positive market share and strategic performance. Unexpectedly, the co-alliance of differentiation strategy and explorative learning is not suggested as a match, as it does not result in a superior market share and strategic performance. This latter outcome suggests that the differentiation strategy-export performance link may be stimulated by other moderating factors (e.g. business managerial ties).

Practical implications

While choosing an appropriate international competitive strategy, managers may use cost leadership over differentiation strategy to achieve successful export performance in both the market share and strategic perspectives. Export managers focusing on cost leadership strategy may further implement exploitative learning instead of explorative learning, when market share is vital. Meanwhile, they may note that explorative learning may not have a moderating effect on enhancing strategic performance through cost leadership. These points signify that exploitation of existing knowledge may be more effective than exploration of new knowledge for market share expansion when cost leadership strategy is devoted to exporting activities. Differentiation strategy, however, does not influence market share and strategic performance in exporting, even with an alignment of exploitative/exploratory learning. Managers are urged to pay attention to the mis-match of differentiation strategy and organizational learning when market share and strategic performance are the priorities in export performance evaluation.

Originality/value

This study contributes to the organizational learning literature by providing a new match and mis-match conceptualization relating to international competitive strategy and export performance. The new framework provides directions on when firms should use organizational learning to enhance their competitive strategies (a match scenario) and when they should not use it (a mis-match scenario). This study broadens the existing research that has mainly focused on alignment combinations such as organizational learning-internationalization strategy and organizational learning-social network.

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