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Book part
Publication date: 13 August 2018

Chaminda Wijethilake and Athula Ekanayake

Purpose – The purpose of this paper is to develop a framework which sheds new light on how sustainability control systems (SCS) can be used in proactive strategic responses to

Abstract

Purpose – The purpose of this paper is to develop a framework which sheds new light on how sustainability control systems (SCS) can be used in proactive strategic responses to corporate sustainability pressures.

Design/Methodology/Approach – Corporate sustainability pressures are identified using insights from institutional theory and the resource-based view of the firm.

Findings – The paper presents an integrated framework showing the corporate sustainability pressures, proactive strategic responses to these pressures, and how organizations might use SCS in their responses to the corporate sustainability pressures they face.

Practical Implications – The proposed framework shows how organizations can use SCS in proactive strategic responses to corporate sustainability pressures.

Originality/Value – The paper suggests that instead of using traditional financial-oriented management control systems, organizations need more focus on emerging SCS as a means of achieving sustainability objectives. In particular, the paper proposes different SCS tools that can be used in proactive strategic responses to sustainability pressures in terms of (i) specifying and communicating sustainability objectives, (ii) monitoring sustainability performance, and (iii) providing motivation by linking sustainability rewards to performance.

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 economic and…

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.

Details

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

Keywords

Article
Publication date: 3 September 2020

James M. Crick

Earlier work has suggested that assumptions, values and beliefs about the importance of cooperating with competitors (a coopetition-oriented mindset) should manifest into…

1262

Abstract

Purpose

Earlier work has suggested that assumptions, values and beliefs about the importance of cooperating with competitors (a coopetition-oriented mindset) should manifest into behavioural forms of coopetition, such as resource and capability-sharing activities. Yet, limited research surrounds the complexities of this link. The purpose of this study is to unpack the relationship between a coopetition-oriented mindset and coopetition-oriented behaviours under the moderating roles of industry experience and degree of internationalization, guided by resource-based theory and the relational view.

Design/methodology/approach

The chosen empirical context was the Canadian wine industry because wine producers are often involved in coopetition strategies and have varying degrees of internationalisation. Preliminary interview data were collected from 18 managers to shape the operationalisations. Then survey data were collected from 195 Canadian wine producers. After checking the statistical data for all major assessments of reliability and validity (together with common method variance), the hypothesised and control paths were tested through hierarchical regression.

Findings

A coopetition-oriented mindset had a positive and significant association with coopetition-oriented behaviours. Surprisingly, this link was negatively moderated by industry experience. Additionally, degree of internationalisation yielded a positive moderation effect. These moderators highlight situations where a coopetition-oriented mindset is (and is not) likely to manifest into coopetition activities.

Practical implications

If firms aim to engage in behavioural forms of coopetition, they should manage assumptions, values and beliefs associated with the advantages of collaborating with their competitors. Industry experience can limit the extent to which business’ coopetition-oriented mindsets manifest into coopetition-oriented behaviours. This could be explained by decision makers possessing information that discourages them from working with certain (untrustworthy) rivals because of the potential harmful effects on their performance. Companies should use their industry experience to avoid working with rival entities that will create negative outcomes, such as tensions (e.g., conflict, power imbalances and opportunistic behaviours), lost intellectual property and diluted competitive advantages. Nonetheless, industry experience might signify that there are more risks than rewards linked with these business-to-business marketing strategies. Higher levels of internationalisation can help firms to recognise that coopetition-oriented behaviours may lead to performance-enhancing opportunities in their overseas markets.

Originality/value

This investigation contributes to the business-to-business marketing literature with new evidence on how organisations can foster a coopetition-oriented mindset to engage in coopetition strategies. The negative moderation effect from industry experience highlights that knowledge of competitors’ activities can limit the extent to which coopetition-oriented behaviours are implemented. Moreover, the positive interaction effect from degree of internationalisation extends the growing body of knowledge pertaining to coopetition in an international arena. Collectively, these results show that while a coopetition-oriented mindset is a critical driver of coopetition-oriented behaviours, there are certain contingencies that can strengthen or weaken this association. Finally, by integrating resource-based theory and the relational view, this paper could explore the different forms of coopetition, in terms of organisation-wide mindsets and firm-level behaviours. This paper concludes with some managerial recommendations, alongside a series of limitations and avenues for future research.

Details

Journal of Business & Industrial Marketing, vol. 36 no. 3
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 8 January 2024

Neuza C.M.Q.F. Ferreira and João J.M. Ferreira

This study sought to develop an aggregated assessment of the literature on the resource-based view (RBV). The main aim was to map the RBV field based on a systematic literature…

Abstract

Purpose

This study sought to develop an aggregated assessment of the literature on the resource-based view (RBV). The main aim was to map the RBV field based on a systematic literature review (SLR) of 226 academic articles published in refereed journals from 1994 to 2022.

Design/methodology/approach

Two bibliometric analysis methods were used: bibliographic coupling and co-citation. These measures are complementary because bibliographic coupling is retrospective in nature and co-citation is forward-looking.

Findings

The analysis identified the most influential studies, top-cited articles and journals and six major thematic clusters: RBV, customer orientation and alliance portfolio, resource-based theory, firm performance, entrepreneurial orientation (EO) and dynamic capabilities.

Originality/value

This research was based on a combination of bibliographic coupling and co-citation analysis. The results provide a better understanding of the RBV field’s intellectual structure, which reveals potential new lines of future research.

Details

Management Decision, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 4 October 2019

James M. Crick

Coopetition is the interplay between cooperation and competition, involving organisations sharing resources and capabilities with rival entities. Earlier work has suggested that…

1844

Abstract

Purpose

Coopetition is the interplay between cooperation and competition, involving organisations sharing resources and capabilities with rival entities. Earlier work has suggested that coopetition has a linear (positive) relationship with company performance, with scarce considerations towards whether this link could have a diminishing-returns effect. Thus, this paper aims to examine the non-linear (quadratic) relationships between coopetition and three performance outcomes. Using resource-based theory and the relational view, this study is designed to evaluate the dark side of coopetition, in terms of identifying situations when such activities can be harmful for company performance.

Design/methodology/approach

Survey data were collected from a sample of 101 vineyards and wineries in New Zealand. After purifying the measures through a series of multivariate statistical techniques, the research hypotheses and control paths were tested through hierarchical regression. Furthermore, the statistical data passed all major assessments of reliability and validity (including common method variance).

Findings

Coopetition was found to have non-linear (quadratic) relationships with customer satisfaction performance, market performance, and financial performance. These results indicate that while coopetition provides organisations with new resources, capabilities and opportunities, there are some dark sides of coopetition activities. With “too little” coopetition, firms might struggle to survive within their markets, with an insufficient volume of resources and capabilities. With “too much” coopetition, companies could experience increased tensions, potentially lose intellectual property and dilute their competitive advantages. Such negative outcomes could harm their performance in several capacities.

Practical implications

Firms should appreciate that coopetition is a competitive strategy. In other words, regardless of how much collaboration occurs, coopetition partners are still competing entities. It is recommended that organisations should strive to engage in an “optimal-level” of coopetition, as “too little” or “too much” of such strategies can be harmful for various types of company performance. To mitigate some of the dark sides of coopetition, businesses should attempt to use all the benefits of collaborating with competitors (i.e. accessing new resources, capabilities and opportunities), but at the same time, not become dependent on rivals’ assets.

Originality/value

This paper develops and tests a framework examining the non-linear (quadratic) linkages between coopetition and multiple assessments of company performance. It highlights the benefits and drawbacks of businesses sharing resources and capabilities with their competitors. Contrary to prior studies in the business-to-business marketing literature, the results signify that firms need to engage in an “optimal-level” of coopetition to minimise certain dark sides, such as reduced company performance. After providing some practitioner implications, this paper ends with a series of limitations and avenues for future research.

Details

Journal of Business & Industrial Marketing, vol. 35 no. 2
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 8 January 2019

James M. Crick

The purpose of this paper is to examine the moderating factors that could affect the relationship between coopetition (the interplay between cooperation and competition) and…

2012

Abstract

Purpose

The purpose of this paper is to examine the moderating factors that could affect the relationship between coopetition (the interplay between cooperation and competition) and company performance.

Design/methodology/approach

Under the relational view and resource-based theory, key articles surrounding coopetition were reviewed. A conceptual framework (with six research propositions) was developed to understand the nature of the relationship between coopetition and company performance.

Findings

While the coopetition – company performance relationship has been well-studied, this link could be moderated by the competitive business environment, organizational resources and capabilities, and trust between rivals. Further, most authors have explored the linear relationship between coopetition and company performance; however, in this paper, the non-linear (inverted U-shaped) link is also conceptualized, whereby firms might experience “too little” and “too much” coopetition in their business strategies.

Practical implications

Management teams should engage in an “optimal-level” of coopetition by sharing resources and capabilities with rival firms, but not to the extent where they depend on such competitors. If firms rarely collaborate with their competitors, they risk not being able to achieve their performance objectives. Likewise, if businesses engage in excessive degrees of coopetition, there could be tensions between the rival companies involved. Also, practitioners should be aware of the factors that can improve or reduce their performance when they implement coopetition activities. By taking: the competitive business environment, organizational resources and capabilities, and trust between rivals into consideration, the themes of this paper should be used to help managers to maximize company performance (considered in multiple capacities).

Originality/value

This paper is used to help scholars and practitioners to understand the factors that could help or hinder the performance outcomes of coopetition activities. By appreciating the moderating roles of the competitive business environment, organizational resources and capabilities, and trust between rivals, managers are anticipated to provide themselves with scope to alter their coopetition activities to improve their performance. This article ends with a series of managerial implications, alongside some limitations and avenues for future research.

Details

Journal of Business & Industrial Marketing, vol. 34 no. 2
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 29 September 2020

James M. Crick and Dave Crick

Small sports clubs are the life-blood of particular communities, even though many are under-resourced and have difficulties in operating under an individualistic business model…

Abstract

Purpose

Small sports clubs are the life-blood of particular communities, even though many are under-resourced and have difficulties in operating under an individualistic business model. Although coopetition (simultaneous cooperation and competition) has been recognised as a positive driver of performance, the complexities of this association remain under-researched. Consequently, grounded in resource-based theory and the relational view, the purpose of this current study is to examine the moderating roles of inter-firm conflict and competitive intensity in the coopetition–sales performance relationship.

Design/methodology/approach

After undertaking 25 field interviews, survey data were collected from 151 non-mainstream sporting clubs in New Zealand. This setting was ideal, since it hosts high-degrees of cooperativeness and competitiveness. After assessing the statistical data for all major robustness checks (including common method variance and endogeneity bias), the hypothesised and control paths were tested through a hierarchical regression analysis.

Findings

Coopetition had a positive relationship with sales performance, but inter-firm conflict yielded a negative interaction effect. Surprisingly, this link was positively moderated by competitive intensity.

Practical implications

Under-resourced entrepreneurs (like those in many small sports clubs) should consider cooperating with their competitors, as these strategies can assist them to improve their sales performance. However, they should be careful when engaging in such activities due to the considerable risk that rival firms could behave opportunistically, which might harm their performance. That being said, owner-managers are advantaged if they operate in sectors where there are lots of competitors because there is increased scope to collaborate with “complementary” and trustworthy rivals that can help them to achieve mutually-beneficial outcomes. Indeed, sporting governing bodies (including those that operate on a non-profit basis) should encourage their members to engage in coopetition due to these positive financial consequences.

Originality/value

This investigation contributes to the extant literature by evaluating the competitive forces affecting the link between coopetition and sales performance. Specifically, new evidence emerges on the circumstances where coopetition is (and is not) a performance-enhancing entrepreneurial strategy. Further, this investigation provides unique insights regarding coopetition among non-mainstream sporting clubs, adding new knowledge to the sports entrepreneurship literature. Moreover, by infusing resource-based theory with the relational view, stronger arguments feature how owner-managers can navigate the paradoxical forces that drive coopetition activities. This study ends with several practitioner implications, alongside a series of limitations and avenues for future research.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 27 no. 1
Type: Research Article
ISSN: 1355-2554

Keywords

Article
Publication date: 12 March 2024

Gunjan Malhotra, Gunjan Dandotiya, Shipra Shaiwalini, Adnan Khan and Shreya Homechaudhuri

The paper tries to investigate the impact of applications of the resource-based view (RBV) theory in the management field to improve the firm’s profitability. Global firms are…

Abstract

Purpose

The paper tries to investigate the impact of applications of the resource-based view (RBV) theory in the management field to improve the firm’s profitability. Global firms are innovating and adopting new technology, paving the way to improve their performance.

Design/methodology/approach

We have adopted RBV in management practices such as marketing, strategy, finance, and human resources.

Findings

RBV has gained researchers' attention with the growing competitive world and new challenges to retaining customers and achieving their pre-defined targets. We attempt to identify the issues related to the usage of RBV in management.

Originality/value

Using RBV in management may help researchers create a competitive mindset and be prepared for uncertain challenges in the business world.

Details

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

Keywords

Article
Publication date: 13 August 2021

Ozgur Ozdemir and Erhan Kilincarslan

This study aims to examine the governance role of shareholders and board of directors in determining firm performance through an eclectic multi-theoretic model that integrates…

Abstract

Purpose

This study aims to examine the governance role of shareholders and board of directors in determining firm performance through an eclectic multi-theoretic model that integrates structure and incentive functions of agency theory and capability aspect of the resource-based view.

Design/methodology/approach

The research model uses a large panel data set of 2,364 UK firms over the period 2000–2010 and uses alternative specifications of the model to improve robustness.

Findings

The results show that the industry experience of major shareholders as a proxy for shareholder capability has a significant positive impact on investee firm performance. The findings also reveal that the lock-in effect of the largest shareholder has a positive impact on performance, whereas the monitoring effectiveness of shareholders is not associated with ownership concentration. Moreover, the results indicate the underlying capabilities of the board of directors and their impact on corporate performance – particularly, the interlocking directorates of executives have a positive impact on firm performance but those of non-executives have a negative one. However, the previous directorship experience of non-executives has a positive impact on performance.

Research limitations/implications

This study presents a more comprehensive and complete understanding of the governance-performance relationship beyond the narrow or partial explanations provided by single-theory-based studies or those of investigating the effect of various governance tools separately.

Practical implications

This study provides more insights into the capability dimension of shareholders and the role of incentives in motivating shareholders to exercise stronger oversight on the management rather than just using ownership concentration. Hence, the study can serve as valuable guidance for investors, corporate managers and policymakers.

Originality/value

To the best of the knowledge, this is the first comprehensive study that uses an eclectic philosophical approach, integrating the agency theory and resource-based view, to not only examine the impact of board of directors but also investigate the governance role of shareholders in modern corporations to understand how shareholders acquire the requisite skills and information, the best practices and processes, and ultimately use the scarce and inimitable resources that help investee firms in improving their performance.

Details

International Journal of Accounting & Information Management, vol. 29 no. 4
Type: Research Article
ISSN: 1834-7649

Keywords

Article
Publication date: 23 August 2011

Rob Dekkers

The theories of transaction‐cost economics, the resource‐based view and the core competencies approach have been used extensively to justify the rationale behind strategic…

7699

Abstract

Purpose

The theories of transaction‐cost economics, the resource‐based view and the core competencies approach have been used extensively to justify the rationale behind strategic decisions on outsourcing, but their validity has not been investigated yet in comparative empirical research. Additionally, no study has examined the operational effects of these decisions in‐depth. The purpose of this paper is to fill these two gaps in the academic literature.

Design/methodology/approach

A literature review confirms the existence of these gaps and informs hypotheses based on the three theories. Additionally, the model for continuous decision making on outsourcing is used to systematically collect data from five cases studies. The cases – all make‐to‐order or engineering‐to‐order – have been analysed on effects for operational performance and control resulting from strategic decision making on outsourcing.

Findings

From this evaluation, it appears that these companies perform weakly on the control of the outsourced activities. Furthermore, it seems that the (manufacturing) strategy is disconnected from outsourcing practices and that outsourcing hardly contributes to competitive advantage. Moreover, from some of the case studies it appears that the decision for strategic outsourcing is irreversible. Finally, traditional criteria and behaviour during decision making prevail, i.e. a cost‐driven perspective, which does not address contemporary challenges.

Research limitations/implications

Despite being explorative and based on only five cases, these findings indicate that strategic decision making on outsourcing based on the three theories insufficiently accounts for operational issues that emerge later during manufacturing; it might be necessary to revise the theoretical base for outsourcing to include management of outsourced manufacturing activities.

Practical implications

The findings imply also that managers in companies, in any case those firms that operate on the basis of make‐to‐order or engineering‐to‐order, should be less “rushed” into strategic decision making on outsourcing that has adverse effects. Rather, outsourcing requires integral decision making in contrast to factual decision making that displayed signs of bounded rationality (particularly expressed through the focus on cost savings).

Social implications

The dominant, one‐sided view of the cost perspectives contributes to the notion that the shareholders' interests for short‐term profitability conflict with long‐term organisational health (apparent through the impact on operational management of outsourcing activities).

Originality/value

Stakeholders involved in strategic decision making might use this research to evaluate fundamentally decisions that cover outsourcing. At the same time, for consultants and practitioners it offers insight that is complementary to the often one‐sided strategic decision making with its focus on cost reductions. Furthermore, this paper demonstrates the limited validity of current theories that underpin strategic decision making on outsourcing and provides an impetus for academics to develop more appropriate theory.

Details

International Journal of Operations & Production Management, vol. 31 no. 9
Type: Research Article
ISSN: 0144-3577

Keywords

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