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Article
Publication date: 13 July 2021

Vivien Jancenelle, Susan F. Storrud-Barnes and Dominic Buccieri

Past research has generally purported that market orientation (MO) leads to superior firm performance, despite emerging evidence suggesting that the highest levels of MO…

Abstract

Purpose

Past research has generally purported that market orientation (MO) leads to superior firm performance, despite emerging evidence suggesting that the highest levels of MO are not always rewarded. Drawing on resource-based view and MO literature, the authors posit that too much MO may be as detrimental as too little for firms seeking to achieve better performance, and that moderate MO capabilities may be the most beneficial. Furthermore, the authors propose and test for organizational confidence as a first potential moderator of the MO-performance inverted U-shaped link.

Design/methodology/approach

The authors use Computer-Assisted-Text-Analysis (CATA) methodology assess constructs from annual reports matched with a 5-year longitudinal dataset of 2,245 firm-year observations drawn from the S&P 500.

Findings

The results not only support the presence of an inverted U-shaped link between MO and firm performance, but also identify organizational confidence as an important moderator of this newly uncovered curvilinear relationship.

Practical implications

When it comes to the effect of MO on firm performance, there can be indeed be “too much of a good thing,” and managers should be aware of the trade-offs that come attached with overcommitting to a MO strategy.

Originality/value

The authors contribute to extant research on the MO–performance link by moving beyond simple linear relationships and identifying an inverted U-shaped relationship between MO and firm performance. This newly found curvilinear relationship may explain and reconcile prior contradicting findings on the benefits of MO. Organizational confidence is also found to trigger a shape-flip of the MO–performance link, thereby suggesting a new boundary condition.

Content available
Article
Publication date: 27 May 2014

Susan F. Storrud-Barnes and Richard Reed

659

Abstract

Details

American Journal of Business, vol. 29 no. 2
Type: Research Article
ISSN: 1935-5181

Content available
Article
Publication date: 19 October 2012

Richard Reed and Susan F. Storrud-Barnes

270

Abstract

Details

American Journal of Business, vol. 27 no. 2
Type: Research Article
ISSN: 1935-5181

Content available
Article
Publication date: 12 April 2013

Richard Reed and Susan F. Storrud-Barnes

261

Abstract

Details

American Journal of Business, vol. 28 no. 1
Type: Research Article
ISSN: 1935-5181

Content available

Abstract

Details

American Journal of Business, vol. 30 no. 1
Type: Research Article
ISSN: 1935-5181

Article
Publication date: 3 August 2010

Richard Reed and Susan F. Storrud‐Barnes

Real‐options have moved from being an academic theory to a decision‐making tool that is being used by managers. The thinking underpinning real options has remained true to…

1852

Abstract

Purpose

Real‐options have moved from being an academic theory to a decision‐making tool that is being used by managers. The thinking underpinning real options has remained true to its financial options‐pricing heritage, which means that it is based on an assumption of managerial risk‐neutrality. Managers can be risk‐seeking or risk‐averse, depending on whether or not they are meeting performance targets. This paper aims to explore the questions of what happens when the assumption of risk neutrality is relaxed and how the outcomes of managerial decisions on investments affect the firm's stockholders and bondholders.

Design/methodology/approach

The work is conceptual in its approach.

Findings

Managers, stockholders, or bondholders do not lose when managers are performing above target and when environmental uncertainty is high, or below target when environmental uncertainty is low, but managers win at the expense of stockholders when they are meeting performance targets and uncertainty is low, and managers win at the expense of bondholders when they are performing below target and uncertainty is high.

Research limitations/implications

Propositions are provided for subsequent empirical testing. The paper holds environmental complexity and munificence constant, but discusses the implication of that in the conclusions.

Practical implications

The research has implications for shareholders and bondholders. It also has implications for Boards of Directors and the actions they take within their monitoring and control duties.

Originality/value

Because the paper is able to separate the constructs of uncertainty and risk, this is the first work that has been able to fully relax the assumption of risk neutrality that underpins real‐options theory.

Details

Management Decision, vol. 48 no. 7
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 10 August 2010

Susan F. Storrud‐Barnes, Richard Reed and Leonard M. Jessup

Conventional wisdom holds that the difference between entrepreneurs and managers is large, while uncertainty and risk are virtually interchangeable. Uncertainty and risk…

1444

Abstract

Purpose

Conventional wisdom holds that the difference between entrepreneurs and managers is large, while uncertainty and risk are virtually interchangeable. Uncertainty and risk are treated as separate constructs and then real‐options thinking and prospect theory are drawn upon to determine how they affect the actions of entrepreneurs and managers. The purpose of this paper is to determine specifically, how the above constructs interact to affect the strategies entrepreneurs and managers are likely to adopt when undertaking new ventures.

Design/methodology/approach

The research uses deductive theorizing to build a theoretical model.

Findings

Contrary to conventional wisdom, it is concluded that the difference between entrepreneurs and managers is less than believed, while the effect of the difference between uncertainty and risk is larger. It is determined that entrepreneurs and managers use similar strategies when faced with similar conditions of uncertainty and when they have similar risk preferences. When environmental uncertainty is low, risk‐seeking entrepreneurs and managers will prefer licensing, whereas the risk averse will prefer wholly owned new ventures. When environmental uncertainty is neither high nor low, both risk‐averse and risk‐seeking entrepreneurs and managers will prefer alliances. When environmental uncertainty is high, risk‐averse entrepreneurs and managers will prefer licensing, whereas risk seekers will prefer wholly owned.

Originality/value

By separating uncertainty and risk, this research is able to show how their interactions become the drivers of strategic decisions by entrepreneurs and managers. This is new to the literature, and the work thus reveals an opportunity for further sophistication of strategy theory and an opportunity to reduce the barriers between theory on entrepreneurship and management theory.

Details

Journal of Strategy and Management, vol. 3 no. 3
Type: Research Article
ISSN: 1755-425X

Keywords

Article
Publication date: 25 January 2011

William H. Bommer, Bryan J. Pesta and Susan F. Storrud‐Barnes

This paper aims to explore and test the relationship between emotion recognition skill and assessment center performance after controlling for both general mental ability…

3510

Abstract

Purpose

This paper aims to explore and test the relationship between emotion recognition skill and assessment center performance after controlling for both general mental ability (GMA) and conscientiousness. It also seeks to test whether participant sex or race moderated these relationships.

Design/methodology/approach

Using independent observers as raters, the paper tested 528 business students participating in a managerial assessment center, while they performed four distinct activities of: an in‐basket task; a team meeting for an executive hiring decision; a team meeting to discuss customer service initiatives; and an individual speech.

Findings

Emotion recognition predicted assessment center performance uniquely over both GMA and conscientiousness, but results varied by race. Females were better at emotion recognition overall, but sex neither was related to assessment center performance nor moderated the relationship between it and emotion recognition. The paper also found that GMA moderated the emotion recognition/assessment performance link, as the former was important to performance only for people with low levels of GMA.

Practical implications

The results seem to contradict those who argue that E‐IQ is an unqualified predictor of performance. Emotional recognition is not uniformly valuable; instead, it appears to benefit some groups more than others.

Originality/value

The paper clarifies the emotional intelligence literature by providing further support for the predictive validity of emotion recognition in performance contexts, and by separating out how emotional recognition benefits certain population groups more.

Details

Journal of Managerial Psychology, vol. 26 no. 1
Type: Research Article
ISSN: 0268-3946

Keywords

Article
Publication date: 1 April 2014

Tina Poon and Bianca Grohmann

This replication and extension of Hirsch and Gruss examines the impact of spatial density and ambient scent on consumers' spatial perception and anxiety. The paper aims to…

1112

Abstract

Purpose

This replication and extension of Hirsch and Gruss examines the impact of spatial density and ambient scent on consumers' spatial perception and anxiety. The paper aims to discuss these issues.

Design/methodology/approach

A 2 (spatial density: high, low)×3 (ambient scent: no scent, scent associated with spaciousness, scent associated with enclosed spaces) between-participants experimental design was implemented in a laboratory setting. A pretest determined scent selection and manipulation checks were successful.

Findings

Spatial perception was influenced by spatial density, but not ambient scent. Ambient scent and spatial density interacted, such that consumers' anxiety levels significantly increased under conditions of low spatial density combined with an ambient scent associated with spaciousness, and directionally increased under conditions of high spatial density combined with ambient scent associated with enclosed space.

Research limitations/implications

This research was conducted in a laboratory setting in order to increase experimental control. An exploration of the strength of the observed effects in a field (retail) setting would be insightful.

Practical implications

Results of this study suggest that retailers need to consider both spatial density and choice of ambient scent carefully in order to reduce consumers' anxiety levels.

Originality/value

This research is one of the few to consider the impact of spatial density and ambient scent on consumers' anxiety levels. The use of a between-participants design and the experimental manipulation of both spatial density and ambient scent results in a more rigorous test of the scent – anxiety relation observed in previous research.

Details

American Journal of Business, vol. 29 no. 1
Type: Research Article
ISSN: 1935-5181

Keywords

Article
Publication date: 1 April 2014

Yi-Su Chen, Young Ro and Hung-Chung Su

The present research aims to revisit the relationships between buyer dependence on suppliers, relational norms between two parties in a buyer-supplier dyad, and a buyer's…

Abstract

Purpose

The present research aims to revisit the relationships between buyer dependence on suppliers, relational norms between two parties in a buyer-supplier dyad, and a buyer's tendency to either engage in opportunistic behaviors or comply with a supplier's request as an exception condition. The authors adopt a supplier's perspective to examine the supplier's anticipation of the buyer's behaviors.

Design/methodology/approach

Based on the original studies conducted by Joshi and Arnold, the authors extend both works using a similar methodology but with a different data sample. The previously validated buyer-supplier relationship supply disruption scenario presented in the original studies is rewritten from a supplier's perspective to examine the supplier's anticipation of the buyer's behaviors. Subjects are asked to assume the role of an account manager within the key supplier firm for an electronic equipment manufacturer and to respond to how they deal with the supplier's expectation of how the buying firm may behave in terms of compliance and opportunism.

Findings

The results show that buyer dependence is positively related to buyer compliance behaviors and that this relationship holds irrespective of the buyer's or supplier's perspective on the supply disruption scenario and irrespective of professional or student subjects. Other findings include the contingency of the moderating effect of relational norms on the link between dependence and buyer compliance on various factors, and the existence of a boundary condition for the moderation effect of relational norms on the link between dependence and buyer opportunism.

Originality/value

The study should prove valuable to academics and professionals alike. It reinforces the notion that buyers that are more dependent and reliant on suppliers are more willing to comply with supplier's needs. Also, it considers the possibility that supply chain agents from both the buyer and supplier sides may value the effect of relational norms differently, with suppliers perceiving that relational norms have more of a direct influence on a buyer's behavior. Lastly, the replication study extends the understanding of the generalizability of the original studies.

Details

American Journal of Business, vol. 29 no. 1
Type: Research Article
ISSN: 1935-5181

Keywords

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