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Book part
Publication date: 28 September 2015

Md Shah Azam

Information and communications technology (ICT) offers enormous opportunities for individuals, businesses and society. The application of ICT is equally important to…

Abstract

Information and communications technology (ICT) offers enormous opportunities for individuals, businesses and society. The application of ICT is equally important to economic and non-economic activities. Researchers have increasingly focused on the adoption and use of ICT by small and medium enterprises (SMEs) as the economic development of a country is largely dependent on them. Following the success of ICT utilisation in SMEs in developed countries, many developing countries are looking to utilise the potential of the technology to develop SMEs. Past studies have shown that the contribution of ICT to the performance of SMEs is not clear and certain. Thus, it is crucial to determine the effectiveness of ICT in generating firm performance since this has implications for SMEs’ expenditure on the technology. This research examines the diffusion of ICT among SMEs with respect to the typical stages from innovation adoption to post-adoption, by analysing the actual usage of ICT and value creation. The mediating effects of integration and utilisation on SME performance are also studied. Grounded in the innovation diffusion literature, institutional theory and resource-based theory, this study has developed a comprehensive integrated research model focused on the research objectives. Following a positivist research paradigm, this study employs a mixed-method research approach. A preliminary conceptual framework is developed through an extensive literature review and is refined by results from an in-depth field study. During the field study, a total of 11 SME owners or decision-makers were interviewed. The recorded interviews were transcribed and analysed using NVivo 10 to refine the model to develop the research hypotheses. The final research model is composed of 30 first-order and five higher-order constructs which involve both reflective and formative measures. Partial least squares-based structural equation modelling (PLS-SEM) is employed to test the theoretical model with a cross-sectional data set of 282 SMEs in Bangladesh. Survey data were collected using a structured questionnaire issued to SMEs selected by applying a stratified random sampling technique. The structural equation modelling utilises a two-step procedure of data analysis. Prior to estimating the structural model, the measurement model is examined for construct validity of the study variables (i.e. convergent and discriminant validity).

The estimates show cognitive evaluation as an important antecedent for expectation which is shaped primarily by the entrepreneurs’ beliefs (perception) and also influenced by the owners’ innovativeness and culture. Culture further influences expectation. The study finds that facilitating condition, environmental pressure and country readiness are important antecedents of expectation and ICT use. The results also reveal that integration and the degree of ICT utilisation significantly affect SMEs’ performance. Surprisingly, the findings do not reveal any significant impact of ICT usage on performance which apparently suggests the possibility of the ICT productivity paradox. However, the analysis finally proves the non-existence of the paradox by demonstrating the mediating role of ICT integration and degree of utilisation explain the influence of information technology (IT) usage on firm performance which is consistent with the resource-based theory. The results suggest that the use of ICT can enhance SMEs’ performance if the technology is integrated and properly utilised. SME owners or managers, interested stakeholders and policy makers may follow the study’s outcomes and focus on ICT integration and degree of utilisation with a view to attaining superior organisational performance.

This study urges concerned business enterprises and government to look at the environmental and cultural factors with a view to achieving ICT usage success in terms of enhanced firm performance. In particular, improving organisational practices and procedures by eliminating the traditional power distance inside organisations and implementing necessary rules and regulations are important actions for managing environmental and cultural uncertainties. The application of a Bengali user interface may help to ensure the productivity of ICT use by SMEs in Bangladesh. Establishing a favourable national technology infrastructure and legal environment may contribute positively to improving the overall situation. This study also suggests some changes and modifications in the country’s existing policies and strategies. The government and policy makers should undertake mass promotional programs to disseminate information about the various uses of computers and their contribution in developing better organisational performance. Organising specialised training programs for SME capacity building may succeed in attaining the motivation for SMEs to use ICT. Ensuring easy access to the technology by providing loans, grants and subsidies is important. Various stakeholders, partners and related organisations should come forward to support government policies and priorities in order to ensure the productive use of ICT among SMEs which finally will help to foster Bangladesh’s economic development.

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E-Services Adoption: Processes by Firms in Developing Nations
Type: Book
ISBN: 978-1-78560-325-9

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Article
Publication date: 29 April 2021

Jie Yang, Yuan Wang, Qiannong Gu and Hongming Xie

This study aims to examine the impact of the supplier's coercive and cognitive pressures on a manufacturer's green purchasing decision-making process and the resultant…

Abstract

Purpose

This study aims to examine the impact of the supplier's coercive and cognitive pressures on a manufacturer's green purchasing decision-making process and the resultant implications in terms of operational and environmental performances.

Design/methodology/approach

Path analysis is performed to test the hypothesized linkages.

Findings

This study finds that the supplier's coercive pressure, environmental focus and socio-cultural responsibility will lead a firm to more successful implementations of green purchasing, which, in turn, results in improved operational and environmental performances. The study findings reveal that the commercial values of green purchasing in addition to social and political obligations will promote the adoption of green purchasing in supply chain management practice.

Originality/value

This study helps business managers understand the impacts of the supplier's coercive and cognitive pressures on green purchasing and the manufacturer's resultant performances. In particular, coercive pressure is operationalized by the supplier's coercive pressure and environmental regulatory pressure, while cognitive pressure is reflected in the supplier's environmental focus and socio-cultural responsibility. This study contributes to the extant theories and enriches the literature on green purchasing.

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Benchmarking: An International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1463-5771

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Article
Publication date: 22 September 2020

Nilay Bıçakcıoğlu-Peynirci and Mustafa Tanyeri

Building upon insights from institutional theory and resource-based view (RBV), the aim of this study is to investigate the direct effects of stakeholder pressures on…

Abstract

Purpose

Building upon insights from institutional theory and resource-based view (RBV), the aim of this study is to investigate the direct effects of stakeholder pressures on organizational resources, organizational capabilities and green export business strategy and to explore the indirect impacts of organizational resources and capabilities on the link between stakeholder pressure and green business strategy from an emerging economy.

Design/methodology/approach

A quantitative study was conducted to test the conceptual model within this study. In total, 235 questionnaires were collected from Turkish exporting manufacturing companies and the data was analyzed through structural equation modeling.

Findings

The results of the study demonstrated that stakeholder pressures have strong and positive effects on organizational resources and organizational capabilities for firms from emerging markets. Also, organizational resources, capabilities and stakeholder pressures have significant impacts on green export business strategy, which in turn, influences positively export market and financial performance.

Practical implications

Several implications were presented in this study via examining the forces affecting companies' environmental strategies and how implementing these strategies result in favorable gains in their international operations for emerging country exporters.

Originality/value

The contribution of this study lies in the under-researched context, in discussing the mutually and contradictory roles played by stakeholders and in examining determinants of the adoption of green strategies by emerging-market exporters. In this sense, stakeholders make the life of the company tougher at home by demanding a greener posture; on the other hand, by doing so, they prompt the company to be competitive when selling to developed markets.

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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: 16 August 2019

Qiong Yao, Jinxin Liu, Shibin Sheng and Heng Fang

Drawing on the literature of eco-innovation and institutional theory, this research aims to answer two fundamental questions: Does eco-innovation improve or harm firm…

Abstract

Purpose

Drawing on the literature of eco-innovation and institutional theory, this research aims to answer two fundamental questions: Does eco-innovation improve or harm firm value in emerging markets? and How institutional environments moderate the relationship between eco-innovation and firm value? We explicate the regulatory, normative and cognitive pillars of institutions, manifested as regulation intensity, environmental agency pressure and public pressure, respectively.

Design/methodology/approach

For this study, a cross-sectional panel data set was assembled from multiple archival sources, including data coded from the corporate annual reports and social responsibility reports, statistical yearbooks, China Stock Market Financial Database (CSMAR) and other secondary sources. A hierarchical regression method was used to test the hypotheses. The data comprised 88 firms sampled over four years. The model using feasible generalized least squares (FGLSs) to control heteroscedasticity in errors due to unobserved heterogeneity was estimated.

Findings

Empirical findings from a data set compiled from multiple archival sources reveal that both eco-product and eco-process innovation negatively relate to firm value. The interactions between eco-innovation and regulation intensity, environmental agency pressure and public pressure are positively related to firm value.

Originality/value

First, this study extends the literature of eco-innovation by investigating the impact of eco-innovation on firm value. Contrary to the conventional anecdotal evidence of the beneficial effect of eco-innovation, it was found that eco-innovation relates negatively to firm value. Second, this study develops and tests an institutional contingent view of eco-innovation by accounting for the moderating role of regulatory, normative and cognitive pressures.

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Journal of Business & Industrial Marketing, vol. 34 no. 8
Type: Research Article
ISSN: 0885-8624

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Article
Publication date: 2 March 2012

Concepción Garcés‐Ayerbe, Pilar Rivera‐Torres and Josefina L. Murillo‐Luna

This study aims to learn more about the relationship between managers' perception of stakeholder pressure related to environmental matters and the degree of proactivity of…

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3316

Abstract

Purpose

This study aims to learn more about the relationship between managers' perception of stakeholder pressure related to environmental matters and the degree of proactivity of firms' environmental strategies. It seeks to analyse the moderating effect that managers' perception of environmental issues as competitive advantage opportunities can have on this relationship.

Design/methodology/approach

Structural equation modeling (SEM) is applied to verify the research framework.

Findings

The results indicate that, only in the least polluting firms, managers' competitive advantage expectations derived from environmental management moderate the relationship between the degree of environmental proactivity and stakeholder pressure. However, it is not effective in high polluting firms, perhaps as a consequence of the high degree of stakeholders' environmental pressure perceived by managers.

Practical implications

The results highlight the relevance of managers' subjective perceptions of the potential of environmental protection measures to generate competitive advantages. They suggest that the consideration of this variable is fundamental in order to better understand the degree of proactivity of firms' environmental strategies, as well as the influence of stakeholder pressure on environmental proactivity. The main limitation is the low response rate of the survey.

Originality/value

This is an original contribution because, although there are studies analysing how stakeholder pressure and managers' perceptions and values affect choice of environmental strategy, none of them analyse the combined impact of both issues.

Details

Management Decision, vol. 50 no. 2
Type: Research Article
ISSN: 0025-1747

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Article
Publication date: 14 December 2018

Hongjun Cao and Zewen Chen

Green innovation strategy is not only a new idea to achieve green development but also the inevitable choice for enterprises to upgrade. At present, the research on the…

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2992

Abstract

Purpose

Green innovation strategy is not only a new idea to achieve green development but also the inevitable choice for enterprises to upgrade. At present, the research on the driving forces of green innovation strategy mainly focus on direct impact of single factor, lacking the overall consideration of internal and external environment. At the same time, research on the contingency effect of top management’s environmental awareness is scarce. This paper aims to explore how external environment pressures (policy pressures and market pressures) and internal environment driving force (innovation resources and innovation capability) make enterprises to choose green innovation strategy with moderating effect of top management’s environmental awareness.

Design/methodology/approach

Based on the sample of 216 enterprises, this paper explores the relationship between policy pressure, market pressure, innovation resources, innovation capability and the green innovation strategy with moderating effect of top management’s environmental awareness from inside and outside driving angle.

Findings

The results of the hierarchical regression model show, first, the driving effect of factors in the external environment. The coercive policy has an inverted U-shaped impact on the green innovation strategy. The incentive policy and the market pressure both have a significant positive impact on the green innovation strategy. Second, the driving effect of factors in the internal environment. The innovation capability has a significant positive impact on the green innovation strategy. The innovation resources have no significant impact on the green innovation strategy. Third, the moderating effect of top management’s environmental awareness. The relationship between the green innovation strategy and the coercive policy is stronger when the top management’s environmental awareness higher. The relationship between the green innovation strategy and the market pressure is stronger when the top management’s environmental awareness higher. The relationship between the green innovation strategy and the innovation resources is stronger when the top management’s environmental awareness higher. Otherwise, the relationship between the green innovation strategy and the innovation capability is weaker when the top management’s environmental awareness higher. And there is no significant change about the relationship between the green innovation strategy and the incentive policy when the top management’s environmental awareness higher.

Originality/value

First, the authors have promoted the integrated research on the drivers of the enterprise’s green innovation strategy. From the perspective of internal and external environment driving forces, this paper analyzes the key factors influencing the decision-making of the green innovation strategy. Second, the study has contributed to the strategic choice theory. This paper studies the driving mechanism of the green innovation strategy from a new perspective of the strategic choice theory.

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Nankai Business Review International, vol. 10 no. 3
Type: Research Article
ISSN: 2040-8749

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Article
Publication date: 2 December 2019

Masood Nawaz Kalyar, Aftab Shoukat and Imran Shafique

The purpose of this study is to examine how individual dimensions of green supply chain management (GSCM) practices affect firms’ financial performance directly and…

Abstract

Purpose

The purpose of this study is to examine how individual dimensions of green supply chain management (GSCM) practices affect firms’ financial performance directly and through environmental performance. Furthermore, the authors investigate the contingent role of institutional pressures on the direct link between GSCM practices and environmental performance and GSCM practices and financial performance.

Design/methodology/approach

Using a convenience sampling technique, data were collected from 238 textile firms in the province of Punjab, Pakistan. Hayes’ PROCESS macro was used to analyze the hypotheses.

Findings

The findings demonstrate that GSCM practices (green manufacturing, green purchasing, eco-design, cooperation with customers and green information systems) have a significant direct impact on firms’ financial performance directly and through environmental performance. Additionally, institutional pressures significantly moderate the nexus of GSCM practices-environmental performance and environmental performance-financial performance.

Practical implications

Textile firms should implement GSCM practices not just because of the pressure from regulatory bodies but also to elevate their environmental and financial performance. Government should also play its role in influencing the organizations for the adoption of GSCM practices, as its role is a significant one in preserving the environment.

Social implications

Because of less emission, energy usage and wastage, environmental performance will be increased, which affect the society positively.

Originality/value

Along with studying the GSCM practices in the textile industry of Pakistan, drawing upon the institutional theory, the contingent role of institutional pressures on two stages (first, between GSCM practices and environmental performance, and secondly, between GSCM practices and financial performance) is the novelty of this study.

Details

Sustainability Accounting, Management and Policy Journal, vol. 11 no. 2
Type: Research Article
ISSN: 2040-8021

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Article
Publication date: 5 September 2016

Dotun Adebanjo, Pei-Lee Teh and Pervaiz K. Ahmed

The purpose of this paper is to investigate the direct effect of external pressure on environmental outcomes and manufacturing performance and examine the mediating effect…

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2710

Abstract

Purpose

The purpose of this paper is to investigate the direct effect of external pressure on environmental outcomes and manufacturing performance and examine the mediating effect of sustainable management practice.

Design/methodology/approach

This study draws upon institutional theory and resource-based view to understand how factors such as external pressure and sustainable management relate with environmental outcomes and manufacturing performance. The model specifies previously unexplored direct and mediating relationships between external pressure, sustainable management, environmental outcomes and manufacturing performance. The empirical analysis is based on data collected from the sixth edition of the International Manufacturing Strategy Survey. The research hypotheses are tested using structural equation modelling.

Findings

Results show that while there is a significant direct and mediating relationship between external pressure, adoption of formal sustainability programmes and environmental outcomes, such significant relationships do not exist with manufacturing performance.

Practical implications

The study shows that external pressure can influence adoption of sustainable practices but this does not necessarily lead to an improvement in manufacturing performance. As such managers need to identify the actual benefits of sustainability and weigh them up against costs of implementing such programmes.

Originality/value

The relationship between the adoption of sustainable practices and organisational performance is a complex one. In contrast to previous studies, this study found that while external pressure and sustainable management relate positively with environmental outcomes, no such relationship exists with manufacturing performance. This raises a number of question marks over naive implementation of sustainable strategies.

Details

International Journal of Operations & Production Management, vol. 36 no. 9
Type: Research Article
ISSN: 0144-3577

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Article
Publication date: 2 October 2018

Zhaofang Chu, Linlin Wang and Fujun Lai

The purpose of this paper is to investigate how customer pressure influences green innovation in the context of Chinese third-party logistics (3PL) providers, and…

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1559

Abstract

Purpose

The purpose of this paper is to investigate how customer pressure influences green innovation in the context of Chinese third-party logistics (3PL) providers, and especially the role of organizational culture in moderating this relationship.

Design/methodology/approach

Based on survey data collected from 165 3PL providers in China, hierarchical moderated regression analysis was conducted to test the hypotheses.

Findings

Customer pressure is an important driver of green innovation amongst 3PL providers. Flexibility-oriented organizational culture strengthens the effect of this driving force, while control-oriented organizational culture weakens this force. Green innovation significantly contributes to financial performance and flexibility orientation strengthens this contribution, while control orientation weakens it.

Research limitations/implications

This research examines the contingency effect of organizational culture in helping to resolve inconsistencies in the relationship between customer pressure and green innovation. Although the inconsistencies cannot be resolved completely, the research opens an avenue to explore other contingency factors or the possibility of a non-linear relationship.

Practical implications

3PL firms could undertake green innovation to satisfy customers’ environmental requirements. To develop their green innovation initiatives, managers should allow their employees greater autonomy and design (or re-design) operations procedures and regulations to be more flexible, thus enabling the diffusion of green innovation and avoiding or reducing the potential influence of control-oriented organization culture.

Originality/value

The study considers the conditional effect of organizational culture to reconcile the mixed results in the literature regarding the relationship between customer pressure and green innovation of logistics service providers.

Details

The International Journal of Logistics Management, vol. 30 no. 1
Type: Research Article
ISSN: 0957-4093

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Article
Publication date: 12 April 2013

Ans Kolk and Fabienne Fortanier

The domestic institutional context has emerged as a key determinant of firms' environmental disclosure, but studies have hardly addressed the extent to which exposure to…

Abstract

Purpose

The domestic institutional context has emerged as a key determinant of firms' environmental disclosure, but studies have hardly addressed the extent to which exposure to foreign institutional contexts plays a role in the occurrence and contents of non‐financial disclosure, which are crucial aspects for understanding multinationals' accountability. The aim of this paper is to investigate the relationship between internationalization (both degree and spread) and environmental disclosure.

Design/methodology/approach

It is hypothesized that both home and host country institutional pressures affect the relationship between internationalization and environmental disclosure, and that these effects are more prominent in environmentally‐sensitive sectors. The proposed relationships are tested using data from the Fortune Global 250.

Findings

Results show a significantly negative relationship between the degree of internationalization and environmental disclosure, which is only partly mitigated by environmental governance and institutional quality in home and host countries. The relationship is only positive for firms in high‐sensitivity sectors from high‐standard countries. Findings are particularly strong for the degree of internationalization; and non‐significant for dispersion/spread.

Originality/value

This article moves beyond the predominant focus on country‐of‐origin effects by adding exposure to foreign institutional contexts, for which it develops a new indicator. It renews attention to non‐financial disclosure, a topic underexposed in the IB literature. Viewed from a broader IB perspective, this article provides an empirical illustration of the effect of home and host institutions on firm strategy, and of the use of different metrics to assess internationalization with divergent results for degree versus spread, as well as for sales versus assets, pointing to areas for further research.

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