scholarly journals The Moderating Role of Organizational Context on the Relationship Between Innovation and Firm Performance

2011 ◽  
Vol 58 (3) ◽  
pp. 431-444 ◽  
Author(s):  
Dirk De Clercq ◽  
Narongsak Thongpapanl ◽  
Dimo Dimov
Keyword(s):  
Firm Performance ◽  
Organizational Context ◽  
The Relationship ◽  
Moderating Role

scholarly journals An assessment of the moderating role of employees’ cultural orientations amongst foreign manufacturing multinational companies in Kenya

2013 ◽  
Vol 11 (1) ◽  
Author(s):  
Beatrice A. Dimba ◽  
Robert Rugimbana
Keyword(s):  
Firm Performance ◽  
Power Distance ◽  
Multinational Companies ◽  
Uncertainty Avoidance ◽  
Cultural Dimensions ◽  
Manufacturing Companies ◽  
Cultural Orientations ◽  
The Relationship ◽  
Moderating Role

Orientation: This article investigates the question, of whether culture really matters in implementing international strategic human resource management (SHRM) practices.Research purpose: Specifically, this study sought to investigate the extent to which employee cultural orientations moderate the link between SHRM practices and firm performance in large foreign manufacturing multinational companies in Kenya. Motivation for the study: Large foreign multinational companies have generally applied SHRM practices without adaptation when trying to improve employee performance even though resource based perspectives argue for the consideration of employees’ cultural orientations. Research design, approach and method: SHRM practices were conceptualised as independent variables measured through distinct practices. Organisational performance as a dependent variable was measured using constructs of image, interpersonal relations, and product quality. Cultural dimensions adopted for this study were power distance, uncertainty avoidance, individualism or collectivism, and masculinity or femininity. The above conceptual framework was tested by the use of both quantitative and qualitative techniques with data from fifty (50) large foreign multinational companies operating in Kenya. Main findings: Findings indicated that the relationship between SHRM practices and firm performance depend to a greater extent on employee cultural orientations when power distance is considered. Power distance (PD) refers to the extent of people accepting that power in institutions and organisations when distributed unequally. The greater the PD, the greater the acceptance of this inequality. Practical/managerial implications: The study supported the notion that the relationship between SHRM practices and firm performance is moderated by power distance through motivation but not by the other three bipolar dimensions namely, Uncertainty Avoidance, Masculinity or Femininity and Individualism or Collectivism. Contribution/value-add: This is the first large-scale empirical article that has focused on the moderating role of employees’ cultural orientations in large foreign manufacturing companies operating in Kenya.

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.

scholarly journals Towards Strategic Business Performance of the Hospitality Sector: Nexus of ICT, E-Marketing and Organizational Readiness

2020 ◽  
Vol 12 (4) ◽  
pp. 1346
Author(s):  
Muhammad Khalid Anser ◽  
Zahid Yousaf ◽  
Muhammad Usman ◽  
Seemab Yousaf
Keyword(s):  
Firm Performance ◽  
Information And Communication Technologies ◽  
Business Performance ◽  
Bootstrap Method ◽  
Organizational Readiness ◽  
Strategic Performance ◽  
Mediating Role ◽  
The Relationship ◽  
Moderating Role

Purpose: This study aims to present a strategic business performance (SBP) model for firms operating in the hospitality industry by providing them guidance on how to use information and communication technologies (ICTs) and e-marketing to attain strategic performance. This paper also explores the moderating role of organizational readiness in the relationship between ICT and e-marketing. Methodology: Data were collected from the top, middle, and operational managers in 4-star and 5-star hotels. To test the mediating role of e-marketing in the relationship between ICT and SBP, Preacher and Hayes’s (2008) approach was used along with the bootstrap method. Regression analysis was carried out to examine the moderating role of organizational readiness. Findings: ICTs provide opportunities to execute e-marketing activities for achieving competitiveness. The empirical findings proved that the use of ICTs provides a basis for establishing a successful e-marketing mechanism that helps hotels to achieve SBP. Furthermore, ICTs’ influence on e-marketing is strengthened by organizational readiness. Originality/value: This paper adds to previous literature on ICTs, SBP, and e-marketing by examining the role of e-marketing and ICTs in positively contributing to the hotels’ SBP, which is a broader measure of firms’ business performance, as compared to the traditional financial or operational measures of a firm’s performance. Since previous studies on the links between ICTs, e-marketing, and firm performance are based on conventional measures of firm performance, this study offers new insights into the nexus of ICTs, e-marketing, and firm performance.

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.

scholarly journals Moderating role of productivity on diversified conglomerates and performance: the case of Malaysia

2017 ◽  
Vol 9 (2) ◽  
pp. 118-133 ◽  
Author(s):  
Alex Kwaku Gyan
Keyword(s):  
Firm Performance ◽  
Content Type ◽  
Industrial Diversification ◽  
And Performance ◽  
Diversified Firms ◽  
The Relationship ◽  
Subsequent Modification ◽  
Moderating Role ◽  
Significant Moderator

Purpose The purpose of this paper is to investigate the previous mixed findings in the relationship between diversification and firm performance. Using international and industrial conglomerates, the paper introduces productivity as a moderating variable to ascertain whether the mixed views in the diversification-performance nexus is due to variations in productivity. The findings in both proxies of performance (q and return on asset (ROA)) show that productivity is not a significant moderator in the diversification-performance link, except that under industrial conglomerates productivity enhances ROAs significantly. Meanwhile, the results show that diversification either has no significant value on firm performance or relates negatively with performance – a contrasting result to the hypothesis of this study. Design/methodology/approach This study adopts diversification measurement, categorisation approach and the methodology used in the work of Fauver et al. (2004) and the subsequent modification by Lee et al. (2012). This study, however, investigates the moderating effect of productivity on diversified firms and not ownership as shown in the previous studies. Performance is measured by two proxies to show robustness of the study. ROA is an accounting tool and Tobin’s q reflects a market-based performance of the firm. Findings The results show that productivity has no moderating impact on a market-based performance of a diversified firm. Regarding ROA, results show a split in finding by showing that productivity has no significant impact on international diversification; however, for industrial diversification, results show significant impact. Originality/value The paper adds to knowledge of finance by ruling out the view that the inconsistencies in the diversification and performance nexus in emerging economies could be due to vagaries in productivity. It is confirmed that productivity technically does not strengthen the link between diversification and performance: suggesting that factors other than productivity could establish a maximal impact on that link to minimise the inconsistencies in the findings on diversification-performance link.

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