Strategic Planning and Small Business Performance

2010 ◽  
Vol 11 (3) ◽  
pp. 221-229 ◽  
Author(s):  
Marko Kohtamäki ◽  
Teemu Kautonen ◽  
Sascha Kraus
Keyword(s):  
Strategic Planning ◽  
Small Business ◽  
Business Performance ◽  
Resource Exploitation ◽  
Mediating Role ◽  
Strategic Plans ◽  
Small Business Performance ◽  
The Relationship ◽  
Finnish Firms

This paper examines the mediating role of opportunity exploration and resource exploitation in the relationship between strategic planning and small business performance. The research model is examined with a sample of 153 small Finnish firms. The results show that exploitation, but not exploration, carries the effect of strategic planning to the performance of a small firm. This implies that strategic plans as such are not sufficient to improve business performance unless they are carefully integrated into the actual processes and behaviour of the firm.

scholarly journals The Assessment of Dimension Absorptive Capacity on Innovation Performance and Small Business Performance

2016 ◽  
Vol 15 (2) ◽  
pp. 127-140
Author(s):  
Gunarso Wiwoho
Keyword(s):  
Small Business ◽  
Absorptive Capacity ◽  
Small Businesses ◽  
Business Performance ◽  
Positive Influence ◽  
Innovation Performance ◽  
Capacity Dimension ◽  
Spss Software ◽  
Small Business Performance

This study aims to examine the role of the absorptive capacity dimension in improving innovation performance and small business performance. The sample used as many as 35 businesses in the business sector of handy crafts. The collected data were analyzed using path analysis and processed with SPSS software version 24.0. The results showed that all hypotheses were accepted. The absorptive capacity dimension consists of potential absorptive capacity and absorptive capacity, both of which are able to have a positive influence on the performance of innovation and the performance of small businesses. But realized absorptive capacity can have a greater influence on innovation and small business performance than potential absorptive capacity.

Competitor Orientation, Pricing Strategy, and Business Performance

2020 ◽  
pp. 115-128
Author(s):  
Carlos A. F. Sampaio ◽  
Ricardo G. Rodrigues ◽  
José M. Hernández-Mogollón
Keyword(s):  
Structural Equation ◽  
Business Performance ◽  
Hotel Industry ◽  
Pricing Strategy ◽  
Equation Modeling ◽  
Price Strategy ◽  
Mediating Role ◽  
Competitor Orientation ◽  
The Relationship

This study proposes to study the nature of the relationship between competitor orientation, a strategy based on low prices and hotel business performance, and to test if a low-price strategy plays a mediating role in the relationship between competitor orientation and business performance. A structural equation modeling approach is used, and a sample from the Italian hotel industry is used to evaluate the proposed hypotheses. Results show that competitor orientation is positively related to business performance and to a strategy based on low prices. Furthermore, it is found that a low-price strategy has adverse effects on business performance. Additionally, the mediating role of the low-price strategy is not confirmed.

Frontline employees’ engagement and business performance: the mediating role of customer-oriented behaviors

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Behrooz Ghlichlee ◽  
Fatima Bayat
Keyword(s):  
Business Performance ◽  
Banking Sector ◽  
Retail Banking ◽  
Mediating Effect ◽  
Business Trend ◽  
Frontline Employees ◽  
Content Type ◽  
Mediating Role ◽  
The Relationship

Purpose Within the retail banking sector, the customer-centric business model has become an important and new business trend in recent years. The enhancement of the frontline service employees’ engagement and their customer-oriented behaviors are among the key factors affecting business performance (BP) in this sector of the banking industry. The purpose of this paper is to improve management decisions to enhance BP through examining the relationship between the frontline employees’ engagement and BP while taking into account the mediating effect of customer-oriented behaviors on this relationship. Design/methodology/approach A quantitative approach was adopted to conduct the present study, and the respondents were sampled from a large commercial bank in Iran using a structured questionnaire. Overall, 50 branch managers and 90 frontline employees were selected using random sampling. A confirmatory factor analysis was conducted to ascertain the validity and reliability of the observed items and a structural equation model was used for testing the proposed hypotheses and research framework. Findings The findings showed that customer-oriented behaviors mediated the relationship between the frontline employees’ engagement and bank’s branches’ BP. Higher levels of the frontline employees’ engagement enhance the customer-oriented behaviors. It was revealed that the frontline employees are engaged in their job and organization. Moreover, the engaged frontline employees listen carefully to customers, the customer’s problem is important to them and they complete their tasks precisely for customers. It has been confirmed that customer-oriented behaviors enhance branches’ BP. The bank frontline employees’ engagement and customer-oriented behaviors, in turn, affected the bank’s branches’ financial performance, process performance and employee performance compared with the bank’s key competitors. Research limitations/implications This study highlights the value of empirically establishing how employee customer-oriented behaviors are affected by employee engagement as an integrative construct bringing together BP. Practical implications This study can help improve BP by increasing the frontline employees’ engagement and their customer-oriented behaviors. This study suggests that organizations using the findings of this study could effectively assess their frontline employees’ engagement and their customer-oriented behaviors and then plan for improving them. Social implications This study offers a customer-oriented initiative as a social responsibility to be considered by retail banks. In light of the social exchange theory, the banks valuing customer-oriented can provide employees with knowledge, skills, values and support to develop motivation and abilities to demonstrate customer-oriented organizational citizenship behaviors. Originality/value Previous studies demonstrated that the employees’ engagement affects their customer-oriented behaviors. In addition, studies have referred to the effect of employees’ customer-oriented behaviors on BP. However, to the best of the knowledge, key questions regarding how the employees’ engagement at the branch level fosters customer-oriented behaviors and, in turn, the bank’s branches’ BP, remain unanswered. Hence, this study contributes to the investigation of the mediating role of the frontline employees’ customer-oriented behaviors in the relationship between their engagement and branches’ BP in the retail banking sector.

Intellectual capital and business performance: the role of dimensions of absorptive capacity

2019 ◽  
Vol 21 (1) ◽  
pp. 23-39 ◽  
Author(s):  
Syed Saad Ahmed ◽  
Jia Guozhu ◽  
Shujaat Mubarik ◽  
Mumtaz Khan ◽  
Essa Khan
Keyword(s):  
Absorptive Capacity ◽  
Intellectual Capital ◽  
Business Performance ◽  
Partial Least Square ◽  
Equation Modeling ◽  
Content Type ◽  
Mediating Role ◽  
The Relationship ◽  
Realized Absorptive Capacity

Purpose The purpose of this paper is to empirically examine the mediating role of potential and realized absorptive capacity in intellectual capital (IC) and business performance. It also investigates the direct impact of the components of IC on business performance. Design/methodology/approach Partial least square-structural equation modeling (PLS-SEM) was used to assess the effect of IC dimensions on performance and to analyze the mediating role of absorptive capacity in this relationship. Data were collected from 192 managers using a survey questionnaire with Likert scale items. Findings The findings of the study show that potential absorptive capacity does not intervene in the relationship between the components of IC and those of business performance. However, realized absorptive capacity, measured as the transformation and exploitation of knowledge, played a positive mediating role in the relationship between the dimensions of IC and those of business performance. Social capital was also noted as a weak predictor of business performance, while human capital and organizational capital had a profound positive influence. Originality/value This study contributes to the literature on IC by examining the role of realized and potential absorptive capacity in the relationship between IC components and firm performance. This research also helps practitioners recognize the importance of transformation and the exploitation of knowledge for business performance.

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.

The mediating role of the extensiveness of strategic planning on the relationship between slack resources and organizational performance

2015 ◽  
Vol 53 (5) ◽  
pp. 1023-1044 ◽  
Author(s):  
Yasir Fadol ◽  
Belal Barhem ◽  
Said Elbanna
Keyword(s):  
Health Care ◽  
Strategic Planning ◽  
Organizational Performance ◽  
Health Care Sector ◽  
Public Hospitals ◽  
Slack Resources ◽  
Content Type ◽  
Mediating Role ◽  
The Relationship

Purpose – The purpose of this paper is to improve the understanding of the mediating role of the extensiveness of strategic planning on the relationship between slack resources and organizational performance. Design/methodology/approach – The study uses empirical data gathered from 102 usable replies from private and also public hospitals in the United Arab Emirates (UAE). Findings – The findings indicate the existence of a positive relationship between slack resources and organizational performance and show that the extensiveness of strategic planning plays a mediating role in this relationship. Research limitations/implications – The authors highlight the exploratory nature of the study considering its unusual setting, namely, the UAE’s health care sector. Practical implications – Several implications of the findings for managerial and policy practices in the UAE health care sector are discussed. Originality/value – This study contributes to the existing literature on management, health care, and developing countries by examining the role of the extensiveness of strategic planning in mediating the relationship between slack resources and organizational performance in the health care industry of a developing country.

How Customer Relationship Management (CRM) and Innovation Influence Business Performance Mediating Role of Innovation

2018 ◽  
Vol 9 (2) ◽  
pp. 1-15
Author(s):  
Mona Jami Pour ◽  
Elnaz Nabizadeh Mamani ◽  
Mohammad Rahimzadeh
Keyword(s):  
Customer Relationship Management ◽  
Business Performance ◽  
Direct Relationship ◽  
Customer Relationship ◽  
Improve Performance ◽  
Management Tools ◽  
Mediating Role ◽  
The Impact ◽  
The Relationship

According to Bain & Company, CRM is at the top of management tools in recent years. This article aims to answer the productivity paradox of CRM and investigates the impact of both CRM and innovation on firm performance and also investigating mediating role of innovation to explain the effect of CRM on performance. To obtain research objective, an empirical study was conducted. For evaluating conceptual model, survey instrument was developed. The relationship between dimensions of CRM and innovation, as well as the relationship between innovation and business performance, were approved, but direct relationship between dimensions of CRM and business performance, according to the data collected, was not approved. Innovation and CRM both are valuable capabilities, which are viewed necessary to achieve a competitive advantage. However, there are little researches about how the interaction of these two concepts improve performance, and despite massive investments in the field of CRM, its impact on business is ambiguous.

scholarly journals Operational Capability: The Missing Link between Supply Chain Practices and Performance

2015 ◽  
Vol 773-774 ◽  
pp. 856-860
Author(s):  
Ai Chin Thoo ◽  
Abu Bakar Abdul Hamid ◽  
Amran Rasli
Keyword(s):  
Supply Chain ◽  
Business Performance ◽  
Resource Based View ◽  
Operational Capability ◽  
Mediating Role ◽  
Mediating Factor ◽  
And Performance ◽  
The Relationship

The relationship between supply chain practices and business performance has been widely investigated by many academics and practitioners; however, the relationship is not yet fully understood. Therefore, this paper aims to examine the relevance of several prominent theories in strategic management for explaining the mediating role of operational capability in the relationship between supply chain practices and business performance. The resource-based view of the firm and neo-institutional theory are reviewed for their applicability to relate supply chain practices and operational capability in explaining sustained business performance. Supply chain practices are insufficient to drive business performance. Firms need to be able simultaneously to increase efficiency through supply chain practices and to be innovative through operational capability. Specifically, operational capability is forwarded as a key firm-specific capability that can result in significant and long-term improvement in organisational sustainability. Operational capability can serve as a critical mediating factor that better transmits the ambitions of supply chain practices onto business performance. As such, this paper provides a conceptual support to urge further research to empirically evaluate the relationship between supply chain practices, operational capability and business performance.

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