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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…

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

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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…

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

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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.

Details

European Journal of Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0309-0566

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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. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0885-8624

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Article
Publication date: 14 December 2020

Ebes Esho and Grietjie Verhoef

The purpose of this paper is to present a review of variance decomposition studies of firm performance and the theoretical foundations that served as the antecedents and…

Abstract

Purpose

The purpose of this paper is to present a review of variance decomposition studies of firm performance and the theoretical foundations that served as the antecedents and promptings for this stream of research. Known collectively as “variance decomposition literature,” these studies use variance decomposition techniques to partition firm performance into various classes of effects in a bid to unveil the relative importance of factors responsible for firm performance variance.

Design/methodology/approach

A review of papers published in SCOPUS and institute for scientific information indexed journals was conducted.

Findings

The study found that firm, industry, corporate, business group and country effects are the major effects included in most extant studies. However, of all effects, firm effects remain the dominant and most important impact on firm performance. The effects that affect firm performance are also interdependent.

Practical implications

Consequently, the decisions of managers in firms are still the most important element in helping the firm to navigate industry and contextual factors, especially during periods of recession.

Originality/value

From the review, research gaps were identified and suggestions for future research provided. There is still much to learn from variance decomposition literature in an age of new business models, unprecedented start-up firms and from developing and emerging market countries.

Details

Management Research Review, vol. 44 no. 6
Type: Research Article
ISSN: 2040-8269

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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

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Article
Publication date: 5 October 2020

I-Fan Yen and Hsin-Mei Lin

This paper aims to develop an integrated perspective on the relationship between multinationality and performance in the outward foreign direct investment (OFDI) of…

Abstract

Purpose

This paper aims to develop an integrated perspective on the relationship between multinationality and performance in the outward foreign direct investment (OFDI) of Chinese firms. The study not only represents contrasting OFDI patterns – namely, born global-natured multiple synchronous foreign investments versus conventional internationalization process (IP)-natured steady increasing foreign investments – but also contributes to understanding the extent to which explanations of home political influence need to be rooted within the general theory of multinationality.

Design/methodology/approach

By testing a comprehensive panel observation of 8,635 OFDI projects from 1991-2016 in China, this study found that multinationality with the new pattern of multiple synchronous OFDIs has a superior performance effect compared with the conventional pattern of steady increasing OFDIs.

Findings

This study also finds a positive relationship between multinationality (international diversification and home political influence) and the performance effect with the new pattern of multiple synchronous OFDIs, as well as a partial positive relationship between multinationality and the performance effect with the conventional pattern of steady increasing OFDIs.

Research limitations/implications

The study extends the understanding of the performance effects of Chinese multinational enterprises, which may benefit more from the new pattern of multiple synchronous OFDIs than from the conventional pattern of steady increasing OFDIs when the home-country institution is strongly positioned.

Originality/value

This paper concludes that multinationality needs an integrated framework that accounts for the new pattern of OFDI and the influence of diversification and home politics, particularly for the emerging country, China.

Details

Chinese Management Studies, vol. 15 no. 1
Type: Research Article
ISSN: 1750-614X

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Article
Publication date: 11 November 2020

Anwar Alsheyadi

The purpose of this study is to examine how e-business (EB) practices and performance are directly and indirectly related, and to examine the complementary effects of…

Abstract

Purpose

The purpose of this study is to examine how e-business (EB) practices and performance are directly and indirectly related, and to examine the complementary effects of adopting various types of EB practices on both business and operational performance, where the latter is conceptualized as a mediator between EB practices and business performance.

Design/methodology/approach

The structural equation modelling was used to examine the conceptual model using data collected through a survey of 108 Omani manufacturing firms. EB was conceptualized as a second-order factor resulted from a production of a simultaneous adoption of three distinct groups of EB practices to examine the complementarity effect of EB practices on performance.

Findings

Controlling for the variations of firm size and age effects, the empirical analysis of this study found support for the superior effects of the complementarities amongst various EB practices on business performance, but this effect will be indirect through the operational performance.

Research limitations/implications

The research findings may lack generalisability due to the possible effects of other contextual factors which should be considered by future research studies.

Practical implications

Several implications are highlighted for the effective deployment of collective EB competencies, and for the role of operational performance on achieving higher business benefits.

Originality/value

This paper satisfies the need to validate the complementarity effects model in different contexts such as EB, and the need to investigate the mediating effect of other factors on EB practices and business performance.

Details

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

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Article
Publication date: 8 December 2020

Anupama Prashar and Parul Gupta

Corporation's board (CB) is viewed as a vital internal corporate governance (CG) mechanism, playing a critical role in mitigating the agency problems and enhancing firm…

Abstract

Purpose

Corporation's board (CB) is viewed as a vital internal corporate governance (CG) mechanism, playing a critical role in mitigating the agency problems and enhancing firm performance. Considering the mixed nature of extant CG literature on CB-firm performance link, this study aims to examine the impact of specific CB attributes on firm performance studied in varied contextual settings and investigates the moderating effects of three contextual factors, i.e. legal origin, industry type and firm type on CB-performance relationships.

Design/methodology/approach

Meta-analysis technique suggested by Hedges and Olkin (1985) was used to analyse a sample of 330 effect sizes reported in 148 studies published between 2000 and 2020 in 85 peer-viewed journals, studying CB-performance associations across 31 countries. The analyses were conducted in two stages: first, the authors assessed the main effect of CB attributes on firm performance and tested the heterogeneity in effect size across the primary studies. In the next stage, the authors investigated the moderating variables accounting for this heterogeneity in the CB-firm performance relationship.

Findings

Board independence, board diversity, board size and role duality are the CB attributes, which significantly and positively impact firm performance. Further, the homogeneity tests revealed variability in effect size for all CB attributes except for board committees. Subgroup meta-analyses revealed that the contextual factors related to industry-type and firm-type are substantial explanatory source of heterogeneity in CB-performance association, though legal origin of firm also partially explains the heterogeneity in this relationship.

Research limitations/implications

Only empirical research reporting Pearson product-moment correlation coefficients(r), as the effect size, were considered for this study. Some of the other CB attributes such as board composition, compensation structure of board members, performance evaluation and appointment process of board members were not included due to limited empirical research on these attributes.

Practical implications

The paper includes implications for managers and policy makers for the development of effective corporate boards and CG mechanisms.

Originality/value

This paper integrates diverse empirical evidence on the associations of CB attributes with firm performance and systematically assesses the moderating factors that contributes to heterogeneity in these relationships.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

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Article
Publication date: 26 June 2020

Biao Sun and Yu Liu

Although the business model (BM) has become a top priority in management research, existing literature still offers a confusing and partial picture about how to leverage…

Abstract

Purpose

Although the business model (BM) has become a top priority in management research, existing literature still offers a confusing and partial picture about how to leverage BM designs for new product development (NPD) because of two limitations. First, research has paid little attention to different BM designs' effects on NPD performance. Second, few empirical studies have examined the moderating roles of firms' learning capabilities, such as big data analytics capabilities (BDA capabilities). This study aims to investigate the effects of BM novelty design and BM efficiency design on NPD performance and the ways in which BDA capabilities moderate these effects.

Design/methodology/approach

A literature review provides the model and hypotheses. Using a sample of 208 Chinese firms, the authors conducted an empirical test following multiple regression analysis.

Findings

The results demonstrate that BM novelty design has a positive effect on NPD performance while BM efficiency design takes the form of an inverted U-shape. Moreover, BDA capabilities (i.e. BDA technology capability and BDA management capability) have complicated moderating effects on BM novelty design- and BM efficiency design-NPD performance relationships.

Research limitations/implications

The results may be affected by both the context (solely in China) and type (cross-sectional) of the data set. This study has explored the moderating effects of BDA capabilities, further studies considering other significant practices such as social media usage, could yield richer insights that would help validate the results of this study.

Practical implications

First, we suggest that managers should be explicitly aware of the different impacts of BM novelty design and BM efficiency design on NPD performance. Second, this study encourages managers to build relevant BDA capabilities to work with BM designs to improve NPD performance.

Originality/value

This is one of the first studies to investigate BM designs' complicated influences on NPD success and explore BDA capabilities' moderating effects on the BM design-NPD performance linkage.

Details

European Journal of Innovation Management, vol. 24 no. 4
Type: Research Article
ISSN: 1460-1060

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