Using hierarchical linear modeling to test the effect of overall strategic fit on firm performance in different industry

2017 ◽  
Vol 11 (4) ◽  
pp. 637-657 ◽  
Author(s):  
Van Thac Dang ◽  
Chin-Shien Lin
Keyword(s):  
Firm Performance ◽  
Hierarchical Linear Modeling ◽  
Theoretical Aspect ◽  
Financial Industry ◽  
Linear Modeling ◽  
Content Type ◽  
Empirical Results ◽  
Strategic Fit ◽  
Moderating Role

Purpose This study aims at investigating the effect of an overall fit among strategy, environmental factors and organizational resources on firm performance, and the moderating role of industry on this relationship. Design/methodology/approach This paper uses hierarchical linear modeling to analyze the nested data structure from the financial and electronics companies in Taiwan’s stock market from 2011 to 2012. Findings The empirical results indicate that overall strategic fit is positively related to firm performance, and this relationship varies across financial industry and electronics industry. Originality/value This study provides important implications for both academic researchers and practitioners. From a theoretical aspect, this study integrates two research streams of strategic fit (external fit and internal fit) into an overall model of strategic fit, and has explored the moderating role of industry on the relationship between strategic fit and firm performance. In addition, this study has also used hierarchical linear modeling method to test the hypotheses, which has not been used in the previous strategic fit literature. From a practical aspect, the empirical results have derived implications for managers as to understand the effects of overall strategic fit on performance in different industry, which may be helpful for making decisions in specific industry context.

The Effect of Internationalization on Firm Performance: A Moderating Role of Heterogeneity in TMTs’ Nationality

2020 ◽  
pp. 193896552095870
Author(s):  
Sujin Song ◽  
Seoki Lee
Keyword(s):  
Firm Performance ◽  
Hierarchical Linear Modeling ◽  
Top Management Teams ◽  
Linear Modeling ◽  
Return On Assets ◽  
Upper Echelons Theory ◽  
Comprehensive Examination ◽  
The Relationship ◽  
Moderating Role

The effect of internationalization on firm performance has been investigated in the hospitality literature in a relatively extensive manner. However, the literature has still provided mixed findings. Furthermore, the moderating role of top management teams (TMTs) on the relationship between internationalization and firm performance has not been explored yet in the hospitality literature. Considering the increasing importance of internationalization in the hospitality industry and a significant role of TMTs in implementing this internationalization, this study performs a comprehensive examination on the effect of internationalization on firm performance using three different internationalization measures (i.e., degree, diversification, and speed) and three different performance measures (i.e., Tobin’s q, return on assets, and international returns). This study also tests the moderating role of heterogeneity in TMTs’ nationality based on the upper echelons theory, employing hierarchical linear modeling (HLM) to test the proposed hypotheses.

Market orientation, innovation commercialization capability and firm performance relationships: the moderating role of supply chain influence

2017 ◽  
Vol 32 (7) ◽  
pp. 913-924 ◽  
Author(s):  
Jeen-Su Lim ◽  
William K. Darley ◽  
David Marion
Keyword(s):  
Supply Chain ◽  
Firm Performance ◽  
Market Orientation ◽  
Innovation Management ◽  
Strategy Formulation ◽  
Content Type ◽  
Positive Effects ◽  
The Impact ◽  
Moderating Role

Purpose The study aims to explore supply chain influence (SCI) on the linkages among market orientation, innovation capabilities and firm performance (FP), using the resource-based view as a theoretical backdrop. Design Survey data from 182 top managers who are involved in strategy formulation and innovative direction of their companies was collected and analyzed using moderated multiple regression analysis. Findings Results revealed a moderating role of the SCI in that the proactive market orientation (PMO) and FP relationship is stronger when SCI is high, and innovation commercialization capability (ICC) and FP relationship is stronger when SCI is low. Practical implications Firms pursuing high PMO strategy must collaborate with supply chain function to achieve the full effect of PMO. Additionally, as supply chain is critical to meeting customers’ needs, these firms should allow supply chain to exert greater influence to enjoy the positive effects of PMO in addition to ensuring full integration into marketing strategy implementation. Also, firms with high ICC need to limit SCI to maximize the benefit of ICC on FP, just as innovation management needs to be cognizant of other functional areas. Originality/value The study investigates the potential moderating role of SCI on the relationships among market orientation, ICC and FP. The study fills a gap in the understanding of the nature and role of supply chain in the marketing–supply chain interaction, and the impact on FP.

Innovation affecting growth aspirations of early stage entrepreneurs: culture and economic freedom matter

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mehrzad Saeedikiya ◽  
Jizhen Li ◽  
Shayegheh Ashourizadeh ◽  
Serdar Temiz
Keyword(s):  
Hierarchical Linear Modeling ◽  
Design Methodology ◽  
Economic Freedom ◽  
Early Stage ◽  
Linear Modeling ◽  
Global Entrepreneurship Monitor ◽  
Content Type ◽  
Entrepreneurial Growth ◽  
Positive Effect

Purpose Earlier research confirms the positive effect of innovation in shaping growth ambitions of entrepreneurs. The aim of this paper is to investigate whether the effect of innovation on growth ambitions of entrepreneurs is contingent on the role of institutions, namely, culture and economic freedom. In other words, the authors’ objective is to provide an institutionally contingent understanding of the role of innovation in shaping growth ambitions of early-stage entrepreneurs. Design/methodology/approach The authors applied hierarchical linear modeling technique on the data of 100,566 early-stage entrepreneurs in 109 countries that participated in annual surveys of Global Entrepreneurship Monitor. Findings The authors find that the effect of innovation on shaping growth ambitions of early stage entrepreneurs is contingent on the role of culture such that, in secular cultures, innovation benefits growth ambitions more than traditional cultures. Further, the authors found that the effect of innovation on growth expectations is dependent on the level of economic freedom in the country in which the firms operate so that in the countries with higher level of economic freedom, early-stage entrepreneurs expect more growth out of their innovation as compared to their counterparts in the depressed economies. Originality/value The results contribute to our understanding of entrepreneurial growth aspirations as a result of the interplay of entrepreneur–firm–environment nexus.

Do women perform better in family firms?

2017 ◽  
Vol 29 (3) ◽  
pp. 299-315 ◽  
Author(s):  
Antonio D’Amato
Keyword(s):  
Firm Performance ◽  
Family Firms ◽  
Gender Diversity ◽  
Family Firm ◽  
Campania Region ◽  
Content Type ◽  
Novel Approach ◽  
Panel Data Regression ◽  
Moderating Role

Purpose Empirical evidence on the relation between female involvement at the head of a company and firm performance remains inconclusive. This study aims to disentangle the existing evidence by exploring the moderating role of family firm status. Design/methodology/approach The study analyzes the moderating role of family firm status on the relation between gender diversity and firm performance among a sample of 88 Italian wine firms from Campania region during the 2007-2014 period. This work uses random effects panel data regression and tests the robustness of the results using alternative econometric techniques. Performance is measured in terms of profitability. Findings The findings reveal that women in top positions do not affect firm performance. However, it is found that this relation is significantly moderated by family firm status. Specifically, compared to high family-controlled firms, female involvement negatively impacts firm performance in low family-controlled firms. Research limitations/implications From a theoretical standpoint, the results enable a more nuanced interpretation of the relationship between female involvement and firm performance. From a managerial perspective, the results highlight conditions that may promote the role of women in business. Originality/value This paper provides insights into the relation between gender diversity and firm performance by exploring the moderating role of family firm status – a novel approach in the management and wine business literature.

You reap what you sow: knowledge hiding, territorial and idea implementation

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xianmiao Li ◽  
William X. Wei ◽  
Weiwei Huo ◽  
Yi Huang ◽  
Manyi Zheng ◽  
...  
Keyword(s):  
Hierarchical Linear Modeling ◽  
Creative Process ◽  
Negative Impact ◽  
Territorial Behavior ◽  
Linear Modeling ◽  
Negative Effects ◽  
Content Type ◽  
High Level ◽  
Knowledge Hiding ◽  
Moderating Role

PurposeThis study aims to build a research model from the perspectives of knowledge hiding and idea implementation to examine what factors influence idea implementation and the cross-level moderating role of team territory climate.Design/methodology/approachData were collected from universities, 52 (R&D) teams in China via a two-wave survey. The final sample contained 209 team members and their immediate supervisors. Hierarchical linear modeling was used to test hypotheses.FindingsThe results indicated that individuals’ knowledge-hiding behavior had a significantly negative impact on idea implementation and creative process engagement, which played a mediating role. Team territorial climate played a cross-level moderating role between knowledge hiding and idea implementation. If team territorial climate was at a high level, then the negative connection between knowledge hiding and idea implementation would be weaker.Research limitations/implicationsUnder the perspective of territorial behavior in Chinese cultural, it can help to distinguish territorial behavior and be preventive at individual and team levels. This study not only enables managers to clearly understand the precipitating factors of idea implementation but also provides constructive strategies for alleviating the negative effects of knowledge territoriality on creative process engagement and idea implementation.Originality/valueThis study constructs a cross-level model to explore the relationship among knowledge hiding, creative process engagement and idea implementation at individual and team levels in the context of Chinese R&D enterprises. Additionally, the study analyzes the influence of territoriality on idea implementation under boundary conditions.

How does intellectual capital efficiency affect firm performance? The moderating role of family management

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yolanda Ramírez ◽  
Julio Dieguez-Soto ◽  
Montserrat Manzaneque
Keyword(s):  
Firm Performance ◽  
Intellectual Capital ◽  
Family Management ◽  
Content Type ◽  
Intangible Resources ◽  
Structural Capital ◽  
Capital Efficiency ◽  
The Impact ◽  
Moderating Role

PurposeThe purpose of this paper is twofold: to know whether those firms that achieve greater efficiency from their intangible resources (intellectual capital) also obtain greater performance; and to analyze the moderating role of family management on that relationship in small to medium-sized enterprises (SMEs).Design/methodology/approachThis paper conducts an empirical study with different econometric models using a panel data sample of 6,132 paired firm-year observations from Spanish manufacturing SMEs in the period 2000–2013.FindingsThe findings suggest that intellectual capital efficiency is a key factor that allows the firm to achieve and maintain competitive advantages, obtaining greater performance. Additionally, this research also shows that the moderating role of family management can be a double-edged sword depending on the type of intangible resources.Practical implicationsThis paper may give managers an insight in how to better utilize and manage intangible resources available in their firms to improve competitive advantage and ultimately firm performance. Additionally, on the basis of the Socioemotional Wealth perspective (SEW), this article argues that family-managed firms that focus on SEW preservation can enhance the impact of structural capital efficiency on performance.Originality/valueThis paper extends the prior literature by studying the joint effects of intellectual capital efficiency, distinguishing between human capital and structural capital efficiency, and family management on performance in the context of SMEs.

The influence of national cultural values on the use of rewards alignment to improve sales collaboration

2014 ◽  
Vol 31 (1) ◽  
pp. 30-50 ◽  
Author(s):  
Peter Magnusson ◽  
Robert Peterson ◽  
Stanford A. Westjohn
Keyword(s):  
Firm Performance ◽  
Cultural Values ◽  
Hierarchical Linear Modeling ◽  
Design Methodology ◽  
Management Tool ◽  
Reward Structure ◽  
Linear Modeling ◽  
Content Type ◽  
Sales Organizations ◽  
Practical Implications

Purpose – The purpose of this paper is to explore how national cultural values affect sales collaboration directly and how it interacts with the firm's reward structure. The results are linked with firm performance. Design/methodology/approach – The conceptual framework is tested on a large sample of sales organizations across 26 countries. Due to the nested nature of the data, hierarchical linear modeling is used to test the hypothesized framework. Findings – Sales collaboration is positively related to firm performance, while individualism and masculinity are negatively related to sales collaboration. Rewards alignment leads to greater sales collaboration and is particularly important in highly individualistic and masculine societies. Practical implications – The study identifies rewards alignment as an actionable management tool to foster greater sales collaboration and, in turn, enhanced firm performance. The study suggests that this is particularly important in cultures associated with high individualism and masculinity. These two values can hinder sales collaboration within the firm, but firm practices (rewards alignment) can counter societal tendencies. Originality/value – The effects of cultural values have been neglected in prior research on sales collaboration and firm performance. The findings in this study suggest that culture is important and, at times, it can be beneficial for the organizational culture to counter the dominant national cultural values.

scholarly journals The role of corporate governance on CSR disclosure and firm performance in a voluntary environment

2019 ◽  
Vol 20 (2) ◽  
pp. 294-306 ◽  
Author(s):  
Aruoriwo Marian Chijoke-Mgbame ◽  
Chijoke Oscar Mgbame ◽  
Simisola Akintoye ◽  
Paschal Ohalehi
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Developed Countries ◽  
Economic Benefits ◽  
Data Set ◽  
Content Type ◽  
Csr Disclosure ◽  
The Impact ◽  
Moderating Role

Purpose This study aims to investigate the impact of corporate social responsibility disclosure (CSRD) on firm performance and the moderating role of corporate governance on the CSRD–firm performance relationship of listed companies in Nigeria. Design/methodology/approach The paper uses a panel data set comprising 841 firm-year observations for the period covering 2007-2016. Fixed effect regression analysis was used to examine the relationship between CSRD and firm performance, and the moderating role of corporate governance in the CSRD–firm performance relationship. Findings The results of the study show that there are positive performance implications for firms that engage in CSRD. Although this study finds no effect of board size on the CSRD–firm performance relationship, it provides a strong evidence of a positive effect of board independence on the CSR–firm performance relationship. Practical implications The study contributes to the understanding of CSRD–firm performance relationship by providing evidence of the moderating role of corporate governance. It is, therefore, recommended that a stronger regulation be put in place for CSR engagement and the disclosure of same in Nigeria as well as robust measures for the enforcement of corporate governance mechanisms because there are economic benefits to be derived. Originality/value The findings contribute to the literature by providing up-to-date and original insights on the CSRD–firm performance relationship within a developing country context. It also uses an uncommon method of measuring CSRD, taking into account the institutional biases that may arise from other methods used in studies on developed countries.

scholarly journals Does CEO power matter for the performance of retrenchment strategy?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rayenda Khresna Brahmana ◽  
Hui Wei You ◽  
Maria Kontesa
Keyword(s):  
Firm Performance ◽  
Agency Theory ◽  
Ceo Power ◽  
Resource Based View ◽  
Content Type ◽  
Emerging Country ◽  
The Relationship ◽  
Circulation Theory ◽  
Moderating Role

PurposeThis research aims to examine the moderating role of CEO power on the relationship between retrenchment strategy and firm performance by framing the relationship under an agency theory, and power circulation theory.Design/methodology/approachThis study focuses on a sample of 319 non-financial public listed companies in Malaysia from the year 2011–2016 and estimates the model under two-step GMM panel regression to eliminate the endogeneity issue.FindingsThe results show that the retrenchment strategy increased firm performance. Meanwhile, greater CEO power changes that retrenchment effect into increased performance. This study also indicates the CEO power strengthens the relationship between firm performance and retrenchment. However, CEO power does not have any effect on the performance of low retrenchment, and the performance of big firm size.Research limitations/implicationsThe findings show that the higher CEO power cause higher firm performance and higher retrenchment. This research suggests that CEO power can make retrenchment strategy works and the decision made can affect the firm performance significantly.Originality/valueThis study examines the effect of CEO power on the performance of retrenchment strategy implementation by contesting agency theory, power circulation theory, and resource-based view theory within the emerging country context.

Mediating effect of organizational learning and moderating role of environmental dynamism on the relationship between strategic change and firm performance

2019 ◽  
Vol 12 (2) ◽  
pp. 275-297 ◽  
Author(s):  
Haruna Isa Mohammad
Keyword(s):  
Organizational Learning ◽  
Firm Performance ◽  
Strategic Change ◽  
Developed Countries ◽  
Mediating Effect ◽  
Environmental Dynamism ◽  
Content Type ◽  
The Relationship ◽  
Moderating Role

Purpose With the materialization of literature on strategic change, it is clear that organizational learning and organizational dynamism have been among the most notable areas of study. The purpose of this paper is to extend the literature on strategic management by examining the mediating effects of organizational learning and the moderating role of environmental dynamism on the relationship between strategic change and firm performance. Design/methodology/approach A survey questionnaire was administered to 650 respondents who were both corporate and business-level managers of 22 main deposit money banks (commercial banks) and their branches across the country. In total, 630 questionnaires were returned and 587 were used after following all the processes of data preparation. Path analysis was employed to test the hypotheses in this study using Smart PLS 3. Findings The study found a significant mediating effect of organizational learning on the relationship between strategic change and firm performance. Although no significant moderating role of environmental dynamism was found, the directions of the path coefficients are consistent with the hypothesis. All the relationships between the constructs are significant. Research limitations/implications It is paramount for managers to understand the type of environment and learning that fits diverse kinds of strategic changes in order to improve firm performance. It is evident that changes that are not proactive and generative organizational learning may seem dangerous for a firm. However, organizations should learn to incorporate the change to be able to compete in a dynamic competitive environment. Originality/value Prior studies on strategic change, environmental dynamism and organizational learning have mainly focused on manufacturing and construction industries in the developed countries, but less has been done in the service sector, particularly the banking organizations in developing countries. Nigeria is one of those countries. Therefore, this study focuses on the links between strategic change and firm performance, moderating role of environmental dynamism and the mediating effect of organizational learning within the context of the Nigerian deposit money banks.

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