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Article
Publication date: 25 April 2023

Özlem Yildirim-Öktem, Irmak Erdogan, Andrea Calabrò and Osman Sabri Kiratli

The aim of this paper is to investigate the effects of environmental dynamism on different EO dimensions in family firms. The authors also examine the moderating role of national…

Abstract

Purpose

The aim of this paper is to investigate the effects of environmental dynamism on different EO dimensions in family firms. The authors also examine the moderating role of national culture (uncertainty avoidance and in-group collectivism) and the level of family control and influence in fostering/hindering this relationship.

Design/methodology/approach

A survey was conducted among 1,143 family firms from twenty-eight countries. The authors developed and tested hypotheses through a fixed-effects regression analysis.

Findings

The findings suggest that environmental dynamism has a positive effect on all three EO dimensions. Analysis reveals a positive moderating role of family control and influence and negative moderating roles of in-group collectivism and uncertainty avoidance.

Practical implications

The findings imply that family firm managers should carefully interpret the influence of their national culture on family firm behavior. More specifically, family firms in dynamic environments should consider the importance of the national culture in which they are embedded. Those operating in high uncertainty avoidant and highly collectivist cultures should take proactive steps to cultivate a corporate entrepreneurial culture. On the other hand, the family should not undermine the effect of its control and influence. In dynamic environments, family control and influence may be a competitive advantage in reinforcing entrepreneurial orientation.

Originality/value

The study contributes to the literature on EO in family firms by expanding the previous research on the antecedents of EO and examining moderation effects of culture and family control and influence across a broad multi-country sample. In contrast with the common findings regarding the effect of family logic on EO, the study shows the strengthening role of family control and influence in the relationship between environmental dynamism and EO. The authors show that culture as an informal institution may also play a critical role in hindering/strengthening the relationship between environmental dynamism and EO.

Details

Journal of Family Business Management, vol. 13 no. 4
Type: Research Article
ISSN: 2043-6238

Keywords

Article
Publication date: 20 December 2023

Changbiao Zhong, Rui Huang, Yunlong Duan, Tianxin Sunguo and Alberto Dello Strologo

To adapt to the rapidly changing market environment, firms must constantly adjust and change their knowledge base to develop new technologies. The purpose of this paper is to…

Abstract

Purpose

To adapt to the rapidly changing market environment, firms must constantly adjust and change their knowledge base to develop new technologies. The purpose of this paper is to analyze the improvement path of firms’ breakthrough innovation from the perspective of knowledge recombination in the context of dynamic change in the knowledge base. By analyzing the influencing mechanism of environmental dynamism on the relationship between the two, this paper provides a theoretical foundation for managers to make knowledge recombination decisions under a dynamic external environment while further enriching the firm’s innovation achievements.

Design/methodology/approach

Using data from 220 manufacturing firms listed on the Shanghai and Shenzhen A-share stock from 2010 to 2018, an extensive panel data set was constructed to investigate the effect of knowledge recombination, which was divided into recombination creation and recombination reuse, on firms’ breakthrough innovation. In addition, the authors differentiated environmental dynamism as market dynamism and technological dynamism and then examined its moderating role in the above relationships.

Findings

The research results show that various recombination behaviors of knowledge elements have a differentiated effect on firms’ breakthrough innovation presented as follows: Knowledge recombination creation is significantly positively correlated with firms’ breakthrough innovation, while knowledge recombination reuse is significantly negatively correlated with firms’ breakthrough innovation. In addition, environmental dynamism has a considerable moderating effect between knowledge recombination and firms’ breakthrough innovation further, emphasizing that the moderating effect on different types of knowledge recombination behaviors is significantly distinct.

Research limitations/implications

First, given that this study refers to several Chinese noted databases to collect second-hand data for empirical analysis, future research could use first-hand data by collecting questionnaire survey and interview to provide a more practical and detailed research conclusion. Second, the authors focused on the contextual variable to explore the moderating role of environmental dynamism on the relationship between knowledge recombination and breakthrough innovation. Nevertheless, the indirect effects of other internal factors were not discussed. The authors advocate future studies to involve other moderators from employee social and phycological perspectives, such as trust in colleagues in the proposed theoretical models in this study.

Practical implications

This study is conducive for managers to attach great attention to knowledge management practices in the firm and to understand the critical role of knowledge recombination in affecting innovation performance under dynamic environmental changes. Moreover, this study provides practical guidance and serves as a reference for firms to strengthen their knowledge recombination ability as full utilization of existing knowledge elements and exploration of new knowledge values.

Originality/value

Primarily, from the perspective of dynamic changes in the knowledge base, this paper explores how the knowledge recombination behaviors affect firms’ breakthrough innovation, thereby enriching and extending the relationship theory between knowledge recombination capabilities and breakthrough innovation, while new and valuable ideas are provided in the study of issues related to the firms’ breakthrough innovation; Moreover, this study analyzes the moderating effects of diverse types of environmental dynamism on the relationship between knowledge recombination and firms’ breakthrough innovation from a multi-dimensional perspective proposing that the moderating effects of environmental dynamism on different knowledge recombination behaviors are distinct.

Details

Journal of Knowledge Management, vol. 28 no. 3
Type: Research Article
ISSN: 1367-3270

Keywords

Article
Publication date: 14 August 2023

Worachet Onngam and Peerayuth Charoensukmongkol

Despite the increasing numbers of research studies about social media business, the concept of social media agility is still an emerging topic that has been understudied…

Abstract

Purpose

Despite the increasing numbers of research studies about social media business, the concept of social media agility is still an emerging topic that has been understudied. Therefore, the purpose of this study was to investigate the effect of social media agility on business performance by using a sample of small- and medium-sized enterprises (SMEs) in Thailand. Moreover, this study explored whether the effect of social media agility on business performance could be moderated by the characteristic of firm in terms of size, as well as the characteristic of market environment in terms of environmental dynamism.

Design/methodology/approach

The sample of 337 firms was obtained from the business directory using the simple random sampling method, and the model assessment was performed by using partial least squares structural equation modeling.

Findings

The data analysis indicated that social media agility positively affected the business performance of SMEs. Moreover, the moderating effect analysis showed that smaller firms tended to gain higher business performance from social media agility than larger firms. In addition, social media agility positively affected business performance to a greater extent when firms operated under low environmental dynamism than when they operated under high environmental dynamism.

Practical implications

Because SMEs are the key driving of economic development and economic growth, the recommendations from this study could be helpful for the government sector responsible for the competency development of SMEs to offer a development program that might enable entrepreneurial firms to develop social media marketing competencies and enhance their potential to be successful in the digital transformation.

Originality/value

The authors found new evidence showing that the degree to which social media agility affected business performance depended significantly on the firm characteristics in terms of firm size, as well as the environmental factor in terms of environmental dynamism. These findings provide valuable contributions to the existing literature that still lacks evidence about the moderating conditions that could increase or reduce the benefits that firms obtain from social media agility.

Article
Publication date: 10 August 2020

Xuechang Zhu, Jingbin Wang, Bin Liu and Xiaoyi Di

Although the adoption of lean inventory management for performance improvement has been widely recognized, sticky inventory management is still a stopgap measure for new small and…

Abstract

Purpose

Although the adoption of lean inventory management for performance improvement has been widely recognized, sticky inventory management is still a stopgap measure for new small and medium enterprises (SMEs) against survival risks. The purpose of this paper is to demonstrate the nonlinear relationship between new SMEs inventory stickiness and venture survival by focusing on the moderating effects of environmental dynamism and financial constraints.

Design/methodology/approach

Classical moderating model is employed to investigate the effects of environmental dynamism and financial constraints on the relationship between inventory stickiness and venture survival. This study uses the accelerated failure time model for survival analysis and tests the relationships based on a large set of new manufacturing SMEs in China over the period from 1999 to 2007.

Findings

The main finding is that inventory stickiness has an inverted U-shaped impact on the likelihood of survival. However, the inflection point of this inverted U-shaped relationship lies at the end of the sample. Further moderation analysis indicates that environmental dynamism positively moderates the inverted U-shaped relationship between inventory stickiness and venture survival, while financial constraints negatively moderate this relationship.

Practical implications

Most new SMEs have great potential to increase the likelihood of survival by improving inventory stickiness before achieving effective lean inventory management. Sticky inventory management can help new SMEs achieve better survival in a dynamic environment. However, new SMEs that are financially constrained should prudently implement sticky inventory management.

Originality/value

This paper contributes to the existing understanding about the likelihood of SMEs survival by addressing the role of sticky inventory management. It may be the first study to empirically demonstrate the moderating effect of environmental dynamism and financial constraints on the inverted U-shaped relationship between inventory stickiness and venture survival.

Details

Journal of Manufacturing Technology Management, vol. 32 no. 2
Type: Research Article
ISSN: 1741-038X

Keywords

Article
Publication date: 13 January 2020

Sumayya Surty and Caren Brenda Scheepers

The environment has become increasingly dynamic, characterised by hyper turbulence and high-velocity. While research has confirmed the influence of leadership on the effectiveness…

Abstract

Purpose

The environment has become increasingly dynamic, characterised by hyper turbulence and high-velocity. While research has confirmed the influence of leadership on the effectiveness of change, the author knows less about how increased environmental dynamism influences the relationship. This study aims to investigate how this relationship is impacted under highly uncertain and dynamic external conditions.

Design/methodology/approach

To investigate the moderating effect of environmental dynamism on leadership practices and employees’ response to change, 1,536 employees’ survey responses were analysed from various organisations in South Africa. Moderator regression models were used to examine relationships.

Findings

Environmental dynamism has a slight significant strengthening effect on the relationship between leadership practices and response to change, with regard to commitment to the change; efficacy, that is, the belief in whether the change will lead to the efficacy of the organisation; and valence or attractiveness of the change. However, no significant positive moderator effect on the impact of leadership practices on active support for change. Tenure as control variable also did not have a significant influence on the model.

Practical implications

Organisations must take note that under dynamic conditions: employees’ belief about the efficacy of change is influenced by leadership practices, but not the active support for the change. Leadership must, thus, check whether employees’ positive responses are indeed going over in action to implement change.

Originality/value

This study contributes an important moderator effect: the more dynamic the environment, the greater the impact leadership practices have on employee response to change.

Article
Publication date: 1 July 1996

Ravipreet S. Sohi

Develops a structural equations model which examines the effects of environmental dynamism and heterogeneity on salespeople’s role conflict, role ambiguity, performance and job…

2424

Abstract

Develops a structural equations model which examines the effects of environmental dynamism and heterogeneity on salespeople’s role conflict, role ambiguity, performance and job satisfaction. The model is tested with EQS, using data collected from 230 salespeople in multiple companies and industries. Indicates that environmental dynamism reduces satisfaction and performance, and increases role conflict and ambiguity. Notes that environmental heterogeneity also reduces performance and increases role conflict, but does not have a significant effect on role ambiguity.

Details

European Journal of Marketing, vol. 30 no. 7
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 18 October 2011

Tsau‐Tang Yang and Ci‐Rong Li

This paper aims to extend research on exploration and exploitation by investigating the effects of competence exploration and exploitation on new product development outcomes in…

4433

Abstract

Purpose

This paper aims to extend research on exploration and exploitation by investigating the effects of competence exploration and exploitation on new product development outcomes in China. Premised from the perspective of environment‐performance relationship and the fit‐as‐moderation view, the authors argue that exploration and exploitation have curvilinear effects on new product development performance due to external environmental factors.

Design/methodology/approach

The paper is based on a questionnaire survey/analysis of a sample of 289 firms in China.

Findings

Consistent with the two perspectives mentioned above, the curvilinear link between competence exploration and new product performance was negatively moderated by environmental dynamism but positively moderated by environmental competitiveness. In contrast, the non‐linear effect of competence exploitation on new product performance was positively moderated by environmental dynamism but negatively moderated by environmental competitiveness.

Originality/value

The exploration and exploitation‐performance link emerges as more complex than previous research has shown. The results indicate the need for simultaneous consideration of environmental dynamism and competitiveness as moderators in the discourse on the curvilinear effects of exploration and exploitation on new product performance.

Details

Management Decision, vol. 49 no. 9
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 17 May 2013

María José Ruiz‐Ortega, Gloria Parra‐Requena, Job Rodrigo‐Alarcón and Pedro M. García‐Villaverde

The purpose of this paper is to study the antecedents of entrepreneurial orientation (EO). Specifically, the authors aim to analyze how firms' capabilities influence the…

2670

Abstract

Purpose

The purpose of this paper is to study the antecedents of entrepreneurial orientation (EO). Specifically, the authors aim to analyze how firms' capabilities influence the relationship between firm environmental dynamism and entrepreneurial orientation. The study seeks to provide a better understanding of antecedents of EO, helping to fill in the gap that exists in the EO literature and explain how certain internal and external factors, independently and jointly, influence EO.

Design/methodology/approach

The empirical study is conducted on a sample of 253 firms from the information and communication technology (ICT) industry. In order to test the proposed model, a hierarchical regression analysis was developed.

Findings

A positive effect of environmental dynamism, technological capabilities and marketing capabilities on EO was detected and it was possible to observe how technology capabilities improve the positive effect of environment dynamism on EO.

Originality/value

The most important contribution of this paper is to demonstrate that the direction of the moderating effect of capabilities on environment dynamism changes depending on the capabilities that are analyzed. While the technology capabilities improve the positive effect of environment dynamism, the marketing capabilities worsen the effect of environment dynamism on EO.

Content available
Article
Publication date: 1 March 2009

Stephen K. Callaway, Kevin Celuch and Gregory B. Murphy

The purpose of the current study was to assess the impact of information technology on strategic flexibility for small- and medium-sized enterprises (SMEs). Results of the study…

6150

Abstract

The purpose of the current study was to assess the impact of information technology on strategic flexibility for small- and medium-sized enterprises (SMEs). Results of the study show that under conditions of low environmental dynamism, IT capabilities are associated with greater reactive strategic flexibility. Specifically, IT capabilities enabling the management of internal activities was significant. Under conditions of high environmental dynamism, IT capabilities are associated with greater proactive strategic flexibility. Specifically, IT capabilities enabling the management of competitor information was significant. Managerial as well as future research implications are discussed.

Details

New England Journal of Entrepreneurship, vol. 12 no. 1
Type: Research Article
ISSN: 2574-8904

Article
Publication date: 11 June 2018

Wenbin Ni and Hongyi Sun

Literature proposes that implementing supplier assessment and supplier collaboration simultaneously may lead to better sustainable performance. The purpose of this paper is to…

1545

Abstract

Purpose

Literature proposes that implementing supplier assessment and supplier collaboration simultaneously may lead to better sustainable performance. The purpose of this paper is to empirically examine the proposition by considering the contingent effects of two contextual factors, the environmental dynamism and the stakeholder pressure on sustainability.

Design/methodology/approach

Four configurations of governance mechanisms are identified according to the different levels of implementing supplier assessment and supplier collaboration. The performances of the four configurations are compared against the levels of environmental dynamism and stakeholder pressure. The empirical data from the sixth round of International Manufacturing Strategy Survey (IMSS) are used.

Findings

This paper found that the governance configuration with the highest level of implementing both governance mechanisms leads to the best performance. The synergistic effect that supplier assessment and collaboration complement each other to achieve better performance is verified. However, the synergistic effect holds robust only when the environmental dynamism and stakeholder pressure are high. The synergistic effect vanishes in the social and environmental performance when the environmental dynamism is low. The effect also vanishes in the environmental performance when the stakeholder pressure is low. No synergistic effect was found in business performance.

Originality/value

This paper reveals the complementarity between supplier assessment and supplier collaboration when they are implemented at a reasonably high level. It also reveals the importance of the fit of governance mechanisms under different external contexts. The results contribute to reconciling the disputes about the effectiveness of governing supplier relationship to achieve the sustainability along a supply chain.

Details

Supply Chain Management: An International Journal, vol. 23 no. 3
Type: Research Article
ISSN: 1359-8546

Keywords

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