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1 – 10 of 10The purpose of this paper is to determine the effect of service quality and innovation on competitive advantage and sustainable local economy, with marketing mix strategy as the…
Abstract
Purpose
The purpose of this paper is to determine the effect of service quality and innovation on competitive advantage and sustainable local economy, with marketing mix strategy as the mediating variable (Study in small and medium enterprise (MSME) in Java and Sumatera).
Design/methodology/approach
The study population of this paper is the MSME in Sumatera and Java Islands in Indonesia, as the highest population in Indonesia in 2010–2016 (portion of MSME in Indonesia: Java 58.29 percent and Sumatera 22.22 percent, or total 80.51 percent), and total 16 province in Indonesia: Aceh, Sumatera Utara, Riau, Sumatera Barat, Jambi, Sumatera Selatan, Bengkulu, Lampung, Kep Riau, Kep Bangka Belitung (Sumatera Island), and Banten, DKI Jakarta, Jawa Barat, Jawa Tengah, Jawa Timur, DI Yogyakarta (Java Island). The analysis used in this study is a quantitative approach, namely, structural equation modeling based on variance, also known as the WarpPLS method.
Findings
The findings of this study are as follows: first, service quality has an influence on marketing mix strategies, meaning the application of service quality according to customer needs will create satisfaction. In other words, the better the quality of service provided, the higher the customer satisfaction will be. Second, the quality of service has a direct influence on creating a sustainable local economy, meaning that improving service quality to understand customer needs can enhance sustainable economic growth and competitive advantage through marketing mix strategies. This means that improving service quality in accordance with customer needs will improve the marketing mix strategy leading to a sustainable local economy. Third, the marketing mix strategy has a positive influence on the sustainable local economy, meaning that the higher the marketing mix strategy, the better the strategy for sustainable economic growth and competitive advantage will be.
Originality/value
The effect of marketing mix strategy as mediation (using the Sobel test) on the influence of service quality and product innovation on sustainable local economy and competitive advantage is shown in this study. No previous research studies this relationship at the research location: MSME in Indonesia, especially in Java and Sumatra Islands. Hence, this is one of few studies comprehensively evaluating the effect of service quality and innovation, toward competitive advantages and local sustainable economic: marketing mix strategy as mediating variable (study in MSME in Java and Sumatera).
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Murniati Murniati, Ghozali Maski, Iswan Noor and Marlina Ekawaty
Entrepreneurship is one of the economic support systems that promote economic growth in Indonesia. Indonesia as a country with good tourism spots has enormous potential to create…
Abstract
Entrepreneurship is one of the economic support systems that promote economic growth in Indonesia. Indonesia as a country with good tourism spots has enormous potential to create jobs. The greater the job opportunity, the lower the unemployment. The purpose of this study is to analyze the characteristics of entrepreneurs in the tourism industry in Indonesia. Meanwhile, the method used is a quantitative descriptive approach with logit regression method where four variables are found, namely entrepreneurship, location, gender, and marital status which have a significant positive relationship with the tourism industry. But on the other hand, the location variable also has a significant negative effect on the tourism industry. This study can contribute to government policies to improve Indonesia’s economic development by increasing the productivity of human resources in the tourism industry.
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Nor’Aini Yusof, Kong Seng Lai and Amy Marisa
As innovation has been recognised as important in improving construction company performances, this study aims to determine the effects of client focus and company type on…
Abstract
Purpose
As innovation has been recognised as important in improving construction company performances, this study aims to determine the effects of client focus and company type on innovation and company financial performances.
Design/methodology/approach
A self-administered questionnaire was sent to 300 architectural and contractor companies and 163 (54.3%) were returned. The questionnaire data were analysed using a partial least squares structural equation modelling.
Findings
Client focus was found to have a complementary partial mediation effect on the relationships between innovation and company financial performance and that innovation independently affected company financial performance with the influence being stronger in the architecture companies than in the contractor companies.
Research limitations/implications
The study adopted a broad definition for innovation without considering the innovation types. As different types of innovation require distinct knowledge, skills, capabilities and management practices, future studies could investigate the various types of innovation and their effects on financial performance.
Practical implications
The findings provide valuable suggestions for principals, top management and policymakers on the importance of client focus when developing and disseminating innovation within the company. Also, architecture companies should focus on implementing innovation to stay competitive.
Originality/value
The mediating effects of client focus and the moderating effects of company type were simultaneously analysed on the relationship between innovation and financial performance.
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Shreeranga Bhat, E.V. Gijo, Anil Melwyn Rego and Vinayambika S. Bhat
The aim of the article is to ascertain the challenges, lessons learned and managerial implications in the deployment of Lean Six Sigma (LSS) competitiveness to micro, small and…
Abstract
Purpose
The aim of the article is to ascertain the challenges, lessons learned and managerial implications in the deployment of Lean Six Sigma (LSS) competitiveness to micro, small and medium Enterprises (MSME) in India and to establish doctrines to strengthen the initiatives of the government.
Design/methodology/approach
The research adopts the Action Research methodology to develop a case study, which is carried out in the printing industry in a Tier III city using the LSS DMAIC (Define-Measure-Analyze-Improve-Control) approach. It utilizes LSS tools to deploy the strategy and to unearth the challenges and success factors in improving the printing process of a specific batch of a product.
Findings
The root cause for the critical to quality (CTQ) characteristic, turn-around-time (TAT) is determined and the solutions are deployed through the scientifically proven data-based approach. As a result of this study, the TAT reduced from an average of 1541.2–1303.36 min, which in turn, improved the sigma level from 0.55 to 2.96, a noteworthy triumph for this MSME. The company realizes an annual savings of USD 12,000 per year due to the success of this project. Top Management Leadership, Data-Based Validation, Technical Know-how and Industrial Engineering Knowledge Base are identified as critical success factors (CSFs), while profitability and on-time delivery are the key performance indicators (KPIs) for the MSME. Eventually, the lessons learned and implications indicate that LSS competitiveness can be treated as quality management standards (QMS) and quality tools and techniques (QTT) to ensure competitive advantage, sustainable green practices and growth.
Research limitations/implications
Even though the findings and recommendations of this research are based on a single case study, it is worth noting that the case study is executed in a Tier III city along with novice users of LSS tools and techniques. This indicates the applicability of LSS in MSME and thus, the modality adopted can be further refined to suit the socio-cultural aspects of India.
Originality/value
This article illustrates the deployment of LSS from the perspective of novice users, to assist MSME and policymakers to reinforce competitiveness through LSS. Moreover, the government can initiate a scheme in line with LSS competitiveness to complement the existing schemes based on the findings of the case study.
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Many organizations are facing competitive challenges due to the rapid pace of technological changes. Both quality management (QM) and innovation are the competitive factors that…
Abstract
Purpose
Many organizations are facing competitive challenges due to the rapid pace of technological changes. Both quality management (QM) and innovation are the competitive factors that are intensely embedded into organizational products, services and processes. In order to achieve higher firm performance, manufacturing firms are needed to adopt QM practices as well as develop innovation capability. Therefore, the purpose of this paper is to examine the relationship among QM, innovation capability (IC) and firm performance under both mediation and moderation models using structural equation modeling.
Design/methodology/approach
The approach of this study is quantitative. The data used to test the hypotheses were gathered from Indian small- and medium-sized enterprises (SMEs) interviewing senior managers with a structured questionnaire. These hypothesized relationships are tested with data collected from 134 Indian manufacturing firms by using SPSS and AMOS statistical software.
Findings
Overall, the findings clearly show that QM through the firm’s IC is indirectly associated with a firm’s business performance. It supported the notion that QM practices encourage the definition of innovation strategies of products and processes within a manufacturing setup, which positively affected different aspects of firm performance. More importantly, this study supports the findings of past studies that questioned the role of QM practices in improving a firm’s IC.
Research limitations/implications
Some limitations of this study include: although a cross-sectional survey has been applied, the research does not permit us to account for the lag between implementation and performance. It also brings the opinion of a limited number of senior managers of Indian manufacturing SMEs, and hence both the sample size could be increased and the nationality of the respondent/responding firms could be expanded for future research.
Practical implications
In light of the obtained results, several recommendations were introduced to assist decision makers in manufacturing companies. The paper contains suggestions for improving manufacturing firm’s performance through developing IC and adopting QM practices.
Originality/value
This paper extends theoretical contribution in production and operations management literature, highlighting how QM practices and firm’s IC have to interact in determining an organization’s success and sustaining its global competitiveness.
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Rishabh Rajan, Sanjay Dhir and Sushil
In the rapidly changing business world, innovation plays a vital role for organizations to gain a competitive advantage. Various factors associated with technology management and…
Abstract
Purpose
In the rapidly changing business world, innovation plays a vital role for organizations to gain a competitive advantage. Various factors associated with technology management and innovations in organizations are diverse in the existing literature. Therefore, there is a need to bridge these gaps in the fitting proportions toward innovations within organizations. The primary objective of this study is to identify, explain and interpret the relationships between the identified technology-related factors that are important for innovations in organizations.
Design/methodology/approach
In this study, a modified total interpretive structural modeling (M-TISM) methodology was used to examine and analyze the various interactions between identified factors for innovations in organizations. However, the argumentation of the links is relatively weak in M-TISM. In order to compensate for this, M-TISM is additionally altered by an “Argumentation-based Modified TISM”. Hence, this research strengthens the modified TISM methodology by incorporating argumentation and total interpretation of the relationships between the identified factors.
Findings
A total of six major factors were identified using a literature review. Results suggest that workforce technical skills, technological infrastructure, technological alliances, technology transfer and top management support have an impact on innovation in organizations. Results also suggest that top management support and the technological infrastructure of an organization have a greater impact on innovation.
Research limitations/implications
For policymakers and practitioners, this study provides a suggestive list of critical factors, which may help to develop policies or guidelines for improving innovation in organizations. Policymakers should focus on technological infrastructure and collaborations to enhance innovations and productions within the organizations. For academicians, this study provides a modified TISM model that shows the impact of technology-related factors on innovations. Future researchers could expand this study by adding a greater number of technological factors and validate this model in other industries.
Originality/value
This study fills a gap in the literature by interpreting the various relationships among the identified factors and innovations. The model has been validated through a panel of seven experts from the Indian automotive industry of multiple organizations. This study is useful in the automobile industry as it determines what and how technology-related factors affect innovations, process improvement and R&D production for organizations.
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Sridhar Manohar, Amit Mittal and Sanjiv Marwah
The purpose of this paper is to establish the link between three constructs, namely, service innovation, corporate reputation (CR), and word-of-mouth (hereinafter WOM). Primarily…
Abstract
Purpose
The purpose of this paper is to establish the link between three constructs, namely, service innovation, corporate reputation (CR), and word-of-mouth (hereinafter WOM). Primarily, the aim is to understand whether innovation in a service firm drives its reputation, thereby resulting in positive WOM where the direct effect of service innovation of a firm on WOM is mediated by reputation. Furthermore, the study also seeks to understand whether the type of service firm has an effect on determining the level of the mediation effect.
Design/methodology/approach
This study adopts an integrated approach where the measure for the construct service innovation is explored through a qualitative approach, and the conceptual model is estimated through path analysis. The service industry taken for this study is banking, and the through non-probability criterion sampling technique, 252 customers responded to their level of agreement. The PLS-SEM technique was used to estimate the path coefficient by following the two-stage approach. The multigroup moderation analysis is performed to determine whether the type of the bank plays a major role in determining the direct effects and the mediation effect of CR between service innovation and WOM.
Findings
The result of this study indicates that there is a strong positive association between the three constructs. Further, the direct relationship between service innovation and WOM is partially mediated by reputation. The result of the multigroup moderation indicates that the type of the bank plays a major role in determining the mediation effect of reputation.
Practical implications
The study helps the decision makers and the managers of the bank to understand that frequent innovation within the firm would help to gain reputation, and thereby customers would tend to give a positive WOM. Further, non-reputable firms can still gain a positive WOM if they continuously innovate new services. In the Indian context, it is noted that there is a difference between private and public banks in determining the mediation effect of reputation between service innovation and WOM.
Originality/value
The originality of the study is based on the following: development of a unique scale to measure service innovation in the banking industry overcoming the existing scales which are based on goods-dominant logic; estimating empirically the combined effect of service innovation and CR on WOM; the process of evaluating the moderated mediation effect; how the mediating effect of CR varies from private sector banks to public sector banks.
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Pushpender Kumar, Anupreet Kaur Mokha and Subash Chandra Pattnaik
The purpose of this paper was to examine the relationship between electronic customer relationship management (E-CRM) and customer satisfaction through the mediating role of…
Abstract
Purpose
The purpose of this paper was to examine the relationship between electronic customer relationship management (E-CRM) and customer satisfaction through the mediating role of customer experience in the banking industry.
Design/methodology/approach
The data were collected from customers of 10 banks (5 public and 5 private sector banks) of Delhi, India. In total, 836 useable structured questionnaires were filled, and the data were analyzed using structural equation modeling (SEM) through AMOS.
Findings
The results revealed that customer experience mediated the relationship between E-CRM and customer satisfaction confirming well with the hypothesized model.
Research limitations/implications
The model was tested in the domain of banking industry; future results may be conducted in different domains for improving generalizability. A comparative study between public and private sector banks in terms of E-CRM, customer experience and customer satisfaction could also be conducted.
Originality/value
The study was the first to unequivocally analyze the influence of the E-CRM on customer satisfaction through customer experience in the banking industry. The study also introduced stimulus-organism-response (S-O-R) model as a theoretical support to associate E-CRM to customer satisfaction through customer experience. Thus, this study will enhance the current knowledge base and will also aid E-CRM managers amid decision-making process.
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The purpose of this study is to provide recommendations for policy framework on artificial intelligence (AI) in India.
Abstract
Purpose
The purpose of this study is to provide recommendations for policy framework on artificial intelligence (AI) in India.
Design/methodology/approach
Studies have been conducted through focus group discussion and the other sources such as different company websites using AI, Indian Government strategy reports on AI, literature studies, different policies implemented on AI in different locations and other relevant documents. After those studies, a charter of recommendation has been provided. This will help the authority to frame the AI policy for India.
Findings
This study highlights that “National Strategy for AI” for India needs improvement to provide comprehensive inputs for framing policy on AI. This study also implies that focus is to be given on security, privacy issues including issues of governance.
Research limitations/implications
AI-related technology has immense potential toward the development of organizations. This study implies the necessity of framing a comprehensive policy on AI for India. If there is a comprehensive policy on AI for India, the Indian industries will derive many benefits.
Practical implications
This study provides inputs on how the industries of India can be benefitted with the help of AI and how R&D can develop the AI activities to harness maximum benefits from this innovative technology.
Social implications
AI-related policy will have appreciable influence on the society in terms of human–device interactions and communications. The policy framework on AI for India is expected to project far-reaching effects toward deriving benefits to the society.
Originality/value
This paper has taken a holistic and unique attempt to provide inputs to the policymakers for framing a comprehensive and meaningful policy on AI for India.
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Anil Kumar, Rohit Kr Singh and Sachin Modgil
This paper presents the concerns in agri-food supply chain. Further the research investigates the role of information and communication technology (ICT) in agri-food supply chain…
Abstract
Purpose
This paper presents the concerns in agri-food supply chain. Further the research investigates the role of information and communication technology (ICT) in agri-food supply chain and determines the impact of supply chain management (SCM) practices on firm performance.
Design/methodology/approach
The theoretical framework was proposed for the study on the basis of existing literature. Data for the study was collected with the help of structured questionnaire from 121 executives and officers of the public food distribution agency. Partial least square (PLS)–structured equation modeling was employed to test the framework and hypotheses.
Findings
The results indicate that ICT and SCM practices (logistics integration and supplier relationships) have a significant relationship. Furthermore, SCM practices (information sharing, supplier relationship and logistics integration) have a significant and positive impact on performance of the organization.
Research limitations/implications
Further research could be carried out to test the moderation effect of SCM practices between ICT and organizational performance (OP). Extending the research study to the companies operating in other sectors can enhance the external validity of the study and improve the accuracy of parameters examined.
Practical implications
This study can be of interest to the agri-food industry as well as other industry practitioners interested in improving the performance of the organization from the view of supply chain.
Originality/value
The outcomes of this study have important implications that translate into a series of recommendations for the management of public food distribution as well as other agri-food-based supply chains.
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