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Article
Publication date: 7 June 2021

Melek Akın Ateş and Huriye Memiş

This paper aims to empirically examine the moderating role of strategic purchasing on the relationship between supply base complexity (SBC) and purchasing performance.

Abstract

Purpose

This paper aims to empirically examine the moderating role of strategic purchasing on the relationship between supply base complexity (SBC) and purchasing performance.

Design/methodology/approach

Survey data were collected from 209 firms listed in the Capital Top 500 Firms of Turkey. Measurement properties were assessed via confirmatory factor analysis, and the conceptual model was tested via hierarchical regression analysis. A supplementary analysis based on 14 semi-structured interviews was conducted to provide further insights on the survey findings.

Findings

Regarding structural SBC, the results suggest that horizontal complexity and supplier interaction improve purchasing performance, but only in firms with high strategic purchasing. By contrast, spatial complexity reduces purchasing performance in firms with high strategic purchasing, while supplier differentiation does not have any effect. Regarding dynamic SBC, the results show that both delivery complexity and supplier instability reduce purchasing performance when firms have low strategic purchasing. Interviews further suggest that firms with high strategic purchasing leverage the positive effects and mitigate the negative effects of SBC by having a long-term focus, considering multiple performance criteria and adopting advanced purchasing practices.

Practical implications

In contrast to what is widely posited in the existing literature, the nuanced findings of this study reveal that complexity is not always detrimental. The results suggest that practitioners should aim for high levels of strategic purchasing to suppress the negative effects of SBC while leveraging its benefits.

Originality/value

By investigating the contingency role of strategic purchasing, this study provides novel insights into the under-investigated issue of how to best “manage” SBC.

Details

International Journal of Operations & Production Management, vol. 41 no. 6
Type: Research Article
ISSN: 0144-3577

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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.

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Book part
Publication date: 23 December 2005

Jerayr Haleblian and Nandini Rajagopalan

In our framework, we examine the influence of both reactive and proactive cognitive variables on strategic change. Reactive sources that impact strategic change are…

Abstract

In our framework, we examine the influence of both reactive and proactive cognitive variables on strategic change. Reactive sources that impact strategic change are perceptions and attributions – cognitions that determine the “what” and the “why” of performance. Perceptions are first-order cognitions that assess what is the performance feedback: positive or negative? After performance feedback is perceived, attributions are second-order cognitions that attempt to establish why the performance is positive or negative.

Details

Strategy Process
Type: Book
ISBN: 978-1-84950-340-2

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Book part
Publication date: 25 October 2017

Ron Sanchez, Jeremy Galbreath and Gavin Nicholson

In this paper we develop a model for researching the influence that a board of directors can have on improving an organization’s sustainability performance. Our model…

Abstract

In this paper we develop a model for researching the influence that a board of directors can have on improving an organization’s sustainability performance. Our model explores sources of cognitive flexibility of boards needed to recognize and respond to the need for improved sustainability performance. We first define concepts of sustainability, sustainability competence, and sustainability performance. We then analyze two forms of board capital (a board’s human capital and its social capital) and three aspects of a board’s information processing (its patterns of information search, discussion and debate, and information absorption) that we suggest affect a board’s cognitive flexibility and thereby influence whether a board decides to adopt sustainability performance goals. Our model also suggests that an organization’s strategic flexibility – as represented by its current endowments of resource flexibilities and coordination flexibilities – will moderate the relationship between a board’s decision to adopt sustainability performance goals and an organization’s subsequent achievement of those goals. We also suggest that our model is generally relevant to any research seeking to predict the influence of boards on strategic change in many forms, not just to research focused on sustainability issues.

Details

Mid-Range Management Theory: Competence Perspectives on Modularity and Dynamic Capabilities
Type: Book
ISBN: 978-1-78714-404-0

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Article
Publication date: 11 November 2014

Daniel Kipkirong Tarus and Federico Aime

– The purpose of this study is to examine the effect of boards’ demographic diversity on firms’ strategic change and the interaction effect of firm performance.

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2499

Abstract

Purpose

The purpose of this study is to examine the effect of boards’ demographic diversity on firms’ strategic change and the interaction effect of firm performance.

Design/methodology/approach

This paper used secondary data derived from publicly listed firms in Kenya during 2002-2010 and analyzed the data using fixed effects regression model to test the effect of board demographic and strategic change, while moderated regression analysis was used to test the moderating effect of firm performance.

Findings

The results partially supported board demographic diversity–strategic change hypothesis. In particular, results indicate that age diversity produces less strategic change, while functional diversity is associated with greater levels of strategic change. The moderated regression results do not support our general logic that high firm performance enhances board demographic diversity–strategic change relationship. In effect, the results reveal that at high level of firm performance, board demographic diversity produces less strategic change.

Originality/value

Despite few studies that have examined board demographic diversity and firm performance, this paper introduces strategic change as an outcome variable. This paper also explores the moderating role of firm performance in board demographic diversity–strategic change relationship, and finally, the study uses Kenyan dataset which in itself is unique because most governance and strategy research uses data from developed countries.

Details

Management Research Review, vol. 37 no. 12
Type: Research Article
ISSN: 2040-8269

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Article
Publication date: 29 May 2018

Mohammad Akhtar and Sushil Sushil

Business performance management describes the processes, methodologies, metrics and systems needed to measure and manage the performance of an enterprise. Traditional…

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2977

Abstract

Purpose

Business performance management describes the processes, methodologies, metrics and systems needed to measure and manage the performance of an enterprise. Traditional performance management systems were based on financial and productivity measures but the alternate measures proposed in last more 25 years have strategic focus and incorporate variety of performance measures such as efficiency, effectiveness, productivity, quality, customer satisfaction, innovation and employee satisfaction in addition to financial. Globalization and modernization have created a business environment uncertain with associated risks which has necessitated the incorporation of various types of flexibilities such as strategic, technical, operational, information system (IS), etc. Critical success factors and implementation issues also need to be incorporated to succeed. The purpose of this paper is to present the strategic performance management system (SPMS) designed, incorporating flexibility and implementation issues, and its effectiveness empirically validated from Indian oil industry.

Design/methodology/approach

Based on literature review and gaps identified, a proposed model of enterprise performance management system incorporating flexibility, critical success factors and implementation issues was developed. Macro- and micro-level factors impacting the effectiveness of the model were identified, and hypotheses were developed and tested empirically from the survey study of Indian oil industry.

Findings

The finding met, by and large, most of the research objectives. In total, 7 macro- and 11 micro-level factors came out from the study. The strategy planning, strategy implementation, strategic flexibility (SF), SPMS design, information system flexibility (IF) flexibility, implementation issues and critical success factors, and performance feedback and learning are the macro-level factors impacting the SPMS effectiveness in measuring and managing performance of an enterprise. The SPMS implementation issues have proved to be major driver of effectiveness.

Research limitations/implications

The research like many such researches had limited resources, data availability and bias of respondents. However, the model was statistically validated for its reliability and hypothesis testing. The research has added to literature on SPMS as integrated model incorporated SF, information flexibility and critical success factors. However, the effect of other types of flexibilities such as organizational, operational, HR, marketing, etc., and other stakeholders should also be studied in future research to broaden the findings.

Practical implications

The validated SPMS has practical implications for academics and researchers. Strategic and IF, and critical success factors have been incorporated in the integrated model to take care of business uncertainties so that it is strategically aligned and facilitate in effective SPMS use and implementation.

Social implications

Though it has no direct social implication but, if adopted for social projects and not-for-profit organizations, it will have social benefits of efficient and effectiveness delivery of social projects and initiatives.

Originality/value

This is an original work carried out by the authors. The validated model along with interpretation is presented.

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Article
Publication date: 1 January 2006

J. Richard Falshaw, Keith W. Glaister and Ekrem Tatoglu

This empirical study of 113 UK companies attempts to examine the relationship between formal strategic planning and financial performance in a non‐US context while taking…

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11953

Abstract

Purpose

This empirical study of 113 UK companies attempts to examine the relationship between formal strategic planning and financial performance in a non‐US context while taking into consideration the important contingent variables identified by previous researchers of organizational size, environmental turbulence and industry.

Design/methodology/approach

Based on a postal questionnaire primary data was collected from 113 UK companies. A series of multivariate analyses were undertaken to test the hypothesized relationships.

Findings

While hypotheses explaining the formality of a company's planning process were well accounted for, no relationship between formal planning process and subjective company performance was observed.

Research limitations/implications

Measurement validity may be a problem. The data are cross‐sectional, therefore causal linkages among the variables cannot be firmly established. Related to this point is the fact that firm performance is a function of prior, not current, planning and other management practices. Longitudinal data would be needed in order to prove that causal relationships exist and control for time lag effects.

Originality/value

Despite the continued importance of performance objectives in the prescriptive literature, recent attention has not been given to strategic planning and performance in empirical research. One function of this paper is to re‐kindle this area of research. More specifically, the empirical study reported in this paper draws on data from UK companies, which is novel in this stream of research. In a review of 29 relevant studies by Greenley (1994) the only study identified reporting UK data was that of Grinyer and Norburn (1975), the majority of the remaining studies reporting data from the USA. Greenley notes that while this represents a stream of research from a single business culture, the major issue is one of relevance to the practice of strategic planning in Europe and other countries. Although the principles of strategic planning should, of course, have universal application, there may be national differences in strategic planning, country dependent influences from business culture, and influences from different national trading conditions. The strategic management field can be criticized for not examining particular phenomena in non‐US contexts, with respect to the impact of FSP and organizational performance this study attempts to rectify this imbalance.

Details

Management Decision, vol. 44 no. 1
Type: Research Article
ISSN: 0025-1747

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Article
Publication date: 6 November 2017

Van Thac Dang and Chin-Shien Lin

This study aims at investigating the effect of an overall fit among strategy, environmental factors and organizational resources on firm performance, and the moderating…

Abstract

Purpose

This study aims at investigating the effect of an overall fit among strategy, environmental factors and organizational resources on firm performance, and the moderating role of industry on this relationship.

Design/methodology/approach

This paper uses hierarchical linear modeling to analyze the nested data structure from the financial and electronics companies in Taiwan’s stock market from 2011 to 2012.

Findings

The empirical results indicate that overall strategic fit is positively related to firm performance, and this relationship varies across financial industry and electronics industry.

Originality/value

This study provides important implications for both academic researchers and practitioners. From a theoretical aspect, this study integrates two research streams of strategic fit (external fit and internal fit) into an overall model of strategic fit, and has explored the moderating role of industry on the relationship between strategic fit and firm performance. In addition, this study has also used hierarchical linear modeling method to test the hypotheses, which has not been used in the previous strategic fit literature. From a practical aspect, the empirical results have derived implications for managers as to understand the effects of overall strategic fit on performance in different industry, which may be helpful for making decisions in specific industry context.

Details

Chinese Management Studies, vol. 11 no. 4
Type: Research Article
ISSN: 1750-614X

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Article
Publication date: 31 January 2018

Henry F.L. Chung and Tsuang Kuo

This study aims to present two new contingent frameworks that hypothesize the moderation role of managerial ties (MTs) in the international competitive strategy-export…

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1301

Abstract

Purpose

This study aims to present two new contingent frameworks that hypothesize the moderation role of managerial ties (MTs) in the international competitive strategy-export financial and strategic performance framework. The purposes of this study are to explore whether a common standardized or individual customized conceptualization consisting of MTs, international competitive strategy and performance can be used to achieve export financial and strategic performance; to offer contingent factors for the current international competitive strategy-export performance framework; and to generalize the roles of MTs in the developed vis-à-vis developing region.

Design/methodology/approach

This study uses the experience of 114 exporting firms operating in the European Union region to test its theoretical frameworks. MTs include both business and political ties.

Findings

Business and political ties have completely different moderation effects on the relation between international differentiation/low-cost strategy and export financial/strategic performance. Business ties have a positive influence on the international differentiation strategy-export strategic performance and international low-cost strategy-export financial performance dyads, but a negative effect in the international low-cost strategy-export strategic performance framework. In contrast, political ties are revealed to have a negative effect on the international differentiation/low-cost strategy-export financial performance framework.

Originality/value

This research advances extant international competitive strategy-export performance literature by revealing the bright and dark sides of business ties and the down side of political ties in the framework. Performance should be investigated in terms of financial and strategic performance. The moderation effect of business ties is more complex than that reported in the developing region; thus, a cross-regional generalization on these ties’ effects is more difficult to establish. In contrast, the dark side effect of political ties is consistent across developed and developing regions; a cross-regional generalization on these ties is more viable. Collectively, the results show that a standardized process for achieving both export financial and export strategic performances is not feasible, while a customized process for each export performance is needed.

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Article
Publication date: 10 October 2016

Zahid Yousaf and Abdul Majid

The purpose of this paper is to examine and develop a strategic performance model for small and medium enterprises linking with inter-firm networks, strategic alignment…

Abstract

Purpose

The purpose of this paper is to examine and develop a strategic performance model for small and medium enterprises linking with inter-firm networks, strategic alignment and environmental dynamism.

Design/methodology/approach

Drawing on the live experiences of 757 respondents, including managing directors/owners and CEOs of different SMEs, the authors proposed a theoretical model representing how firms could attain strategic performance through inter-firm networks with a mediating role of strategic alignment.

Findings

The current study demonstrated that SMEs with strong inter-firm networks have the ability to align business activities with strategies and get earlier strategic performance. Strategic performance looks skeptical to ever gain acceptance until strategic alignment is adopted by small and medium enterprises. The findings of this study indicated that environmental dynamism strengthens the relationship between strategic alignment and strategic performance.

Originality/value

This research extended the understanding about the inter-firm networks, strategic alignment and environmental dynamism surrounding strategic performance. This study identified and empirically tested how the inter-firm networks impact on strategic performance through the mediating effect of strategic alignment.

Details

World Journal of Entrepreneurship, Management and Sustainable Development, vol. 12 no. 4
Type: Research Article
ISSN: 2042-5961

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