Article
To read the full-text of this research, you can request a copy directly from the authors.

Abstract

In this study, we address three research questions: (1) Why are some industrial firms more innovative than others? (2) What effect does innovativeness has on business performance? (3) Does the linkage between innovativeness and business performance depend on the environmental context? Accordingly, we draw on various theoretical perspectives to develop hypotheses that propose market orientation, entrepreneurial orientation, and learning orientation as key antecedents to innovativeness, as well as a direct relationship between innovativeness and business performance. A model is devised and tested that examines these relationships in general and in the context of varying market turbulence. Findings confirm the validity of the model and afford various insights on the role of market turbulence in the proposed relationships. Lastly, implications are offered on the antecedents and consequences of organizational innovativeness.

No full-text available

Request Full-text Paper PDF

To read the full-text of this research,
you can request a copy directly from the authors.

... Entrepreneurial orientation (EO), according to Covin and Slevin (1988), is the firms' processes, structures, and behaviors characterized by innovation, proactiveness, and risk-taking. The proponents of EO suggest that this orientation can adjust their operation in dynamic environments (Covin & Slevin, 1989), resulting in positive effects on firm performance (e.g., Hult et al., 2004;Wiklund & Shepherd, 2005). In addition, the interplay between EO and other strategic orientations may lead organizations to sustained competitive advantages (Hult et al., 2004). ...
... The proponents of EO suggest that this orientation can adjust their operation in dynamic environments (Covin & Slevin, 1989), resulting in positive effects on firm performance (e.g., Hult et al., 2004;Wiklund & Shepherd, 2005). In addition, the interplay between EO and other strategic orientations may lead organizations to sustained competitive advantages (Hult et al., 2004). A study conducted on a sample of firms in the Spanish agri-food industry revealed that relational capital develops a high EO (Rodrigo-Alarcón et al., 2018). ...
... Baker and Sinkula (1999b) mentioned that LO is a mechanism that affects the firm's ability to defy previous assumptions about the market and how a firm should be organized to deal with it. Hult et al. (2004) argued that LO occurs primarily at the cultural level of the firm. LO could improve the firm's innovation capability, and innovation is nurtured from inside and outside the company (Chiou & Chen, 2012). ...
Article
Full-text available
Questions "Where does innovation initiate in a company?" and "How can a small and medium-sized enterprise (SME) leverage its different resources to enhance its innovation capabilities to outperform its competitors?" remain unanswered to date. Accordingly, this study examined the relationship between the firm's relational capital and fundamental strategic orientations that a firm can adopt and how these different orientations affect innovation and organizational performance. The target sample included 360 Mexican SMEs who completed a pen-and-pencil questionnaire conducted at the four main cities of this country. Structural equation modeling was performed, and results revealed a strong positive effect of relational capital over all four strategic orientations considered in this study. However, mixed findings of strategic orientations and innovation were obtained. Although market and entrepreneurial orientation positively influenced innovation, a negative relationship was found between learning orientation and innovation and a nonsignificant relationship between technology orientation and innovation. As expected, innovation positively influenced the performance of SMEs. This study offers essential academic contributions and interesting managerial insights to improve performance using relational capital through innovation and strategic orientations. Therefore, we propose relational capital as an underexploited resource and a source of innovation for SMEs.
... Previous research (Hult et al., 2004;Lichtenthaler, 2009;Hung and Chou, 2013;Tsai and Yang, 2014) dealt with the relationship between IP and companies' performance. Adopting innovations generally contributes to improving the performance or efficiency of a company (Damanpour, 1991). ...
... Hurley and Hult (1998) suggest that the innovativeness of the company enhances the innovative capacity of the company, which ultimately leads to better performance. Innovation is a means to change the organization, either in response to changes taking place in the internal or external environment or as preventive measures taken to affect the environment (Hult et al., 2004). As environments evolve, companies must adopt innovations over time, and the most important innovations are those that enable the company to achieve some kind of competitive advantage, thus contributing to the company's performance (Damanpour, 1991;Henard and Szymanski, 2001). ...
... Therefore, we can conclude that increasing the IP of the company should increase the FP of the company. The obtained results are following previous research (Hult et al., 2004;Kostopoulos et al., 2011;Tsai and Yang, 2014). Given the increased customer requirements and increasing competition in the market, companies that introduce innovative products, with new features and capabilities, have a great opportunity to achieve a higher level of sales and more stable growth of the company. ...
Article
Full-text available
This study explores the mechanism of influence of total quality management (TQM) practices on a company's financial performance (FP), considering innovation performance (IP) as a mediator variable. In addition, the proposed model seeks to determine whether the competition intensity (CI) moderates the relationship between TQM practices and FP. Based on the sample of 593 companies from various sectors in Bosnia and Herzegovina, structural equation modeling is used to analyze the relationships between the variables in the model. The results of this paper reveal the implicit and often omitted impact of IP on FP taking into account TQM practices, suggesting that the impact of TQM practices is manifested through full mediation of IP. The moderating effect of CI in the relationship between TQM practices and FP was not supported. The results indicate the role and the importance of IP in the mechanism of influence of TQM practices.
... Further, the innovativeness of an organization has been referred to as the capacity to be innovative, and such capacity differentiates between organizations creating more competitive advantages (Hult et al., 2004). Research has affirmed that innovation, either product or service, is a result of innovativeness (Venkatraman, 1991). ...
... In defining the innovativeness in the organizations, the scholars (Midgley and Dowling, 1978), (Hirschman, 1980), (Venkatraman, 1991), (Hult et al., 2004), (Pullen et al., 2012), (Carmona-Lavado et al., 2013), (Choi and Choi, 2014); have argued that innovativeness is the capability of the organization that develop and/establish the baseline and/or platform for innovations. Thus, innovations are the results of an organizational capacity, called ...
... It has been recognized that the incremental innovation is the most suitable for the water utilities (Oke, 2007). This is because, if considered as service, continuous process This research concentrated on innovation capabilities, which has been termed as 'innovativeness' by the researchers (Midgley and Dowling, 1978), (Hirschman, 1980), (Venkatraman, 1991), (Hult et al., 2004), (Pullen et al., 2012), (Carmona-Lavado et al., 2013), (Choi and Choi, 2014), because, it refers to the organizational significant performances towards innovation (Moos et al., 2010), (Ruvio et al., 2014). Therefore, rather than the innovation, the organizational innovativeness of the water utilities in Australia for delivering their services became the central to this research. ...
Thesis
Full-text available
The research was instigated by the “Organizational Resilience for Innovativeness in Service Delivery” project of the Hunter Water. The aim of the project was to assess the readiness of innovative capabilities of the water utilities in Australia. With this end, doctoral research was identified with title “Organizational Innovativeness for Service Delivery in Water Utilities”. Primarily, the scope of research was limited to 3 water utilities in the New South Wales. Later, it was changed to nationwide study with the cooperation and support of the Hunter Water and the Water Services Association of Australia (WSAA). It started with a simple and straightforward question: What factors should be taken into account in developing organizational innovativeness for service delivery? It was then followed several research objectives and the main theme was to determine the level of existence of relevant factors of service delivery innovativeness in Australian water utilities. that contribute to innovative service. In this way, the simple research got highly enriched. Through a rigorous systematic literature review, 102 individual influencing factors of organizational innovativeness were identified and classified into 10 thematic groups, and these were culture, HRM functions, top management orientation, external environment, organizational proficiencies, leadership, knowledge management, market pressure and competition, technology adaptation and research and development. Since the nature of the water utilities are different than other industries, the focus was shifted towards the service industry, which is the closest domain of water utilities. Considering this, 102 chosen factors were reduced to 81 individual influencing factors, under the same 10 thematic groups. Questions were raised whether all these 81 factors were relevant for Australian water utilities plus how to measure the level of existence of the essential factors enabling innovativeness in the water utilities. The research thus adopted a combination of both qualitative and quantitative method in two phases. In the first phase of the research, 3 focus group discussions were conducted where the innovation champions and managers from different water utilities across Australia have participated and they endorsed 14 influencing factors like teamwork, vision training & development, customers’ requirements, to name but a few. In addition, they added 2 new factors in the list. Furthermore, the focus group members also finalized 5 measuring factors of organizational innovativeness in service delivery which include Frequency of Innovative Change, benefits of Innovative Change, Speed of Innovative Change, Experience of Innovative Change and Risks associated with Innovative Change. In the second phase, comprehensive quantitative research was carried out to reach the research objectives in the form of survey questionnaire, which was newly developed resulting from the first phase of the research. The researcher received more than 500 responses, among them 465 responses were complete and usable. Based on the 465 responses, the quantitative analyses revealed only a few factors, i.e., Customers' Requirements, Regulators' Influence: change Teamwork exist at higher level (not completely). So, it is very clear that the water utilities in Australia are truly less innovative in their service delivery. The story was interesting when the responses from the managers and non-managers were analysed separately. The managerial employees found that idea generation, customers’ requirements, capital resources, industry relationships etc. in work improvements are negatively significant towards the innovation outcome. On the other hand, the non-managerial employees feel that teamwork and regulators’ influence: in work change are negatively significant towards the innovation measures. Vital and Immediate Further Extensive Research Required Though the research objectives were fully achieved, and the research question was properly answered with adequate evidence, the researcher feels that this research has brought into light the problems in the organizational innovativeness for service delivery in the water utilities across Australia. Consequently, it will become vulnerable in meeting the demand because of climate change, high migrants and obviously lack of innovativeness in service delivery. The authority must consider the findings from the doctoral research and concentrate on the further research to solve the problems for the better future of the nation.
... Knight and Cavusgil (2004) pointed to the organisational culture roots of EO. Therefore, innovativeness as input has been defined as an internal environment favourable for innovation (Rubera & Kirca, 2012); that is, innovativeness represents openness to new ideas as a trait of a firm's culture (Hult, Hurley & Knight, 2004). This reconceptualization of innovativeness as a cultural trait has been used in the EO literature by Matsuno et al. (2002), Zhou et al. (2010), and Martin and Javalgi (2016). ...
... All items were scored on a 7-point Likert scale anchored by 'strongly disagree' (1) and 'strongly agree' (7). The innovativeness scale is sourced from Hult et al. (2004). The scales for risk-taking and proactiveness are inspired by the Covin and Slevin (1989) EO scale and the studies of Martin and Javalgi (2016) and Mu et al. (2017). ...
... Firms that take risks have an improved ability to calculate risk (Hogan & Coote, 2014), which puts them in a position to actively recognise new market opportunities, seize them first, create new business opportunities, and shape the market (Forsman, 2011). Our findings reveal that innovativeness also promotes proactiveness; that is, the firm's willingness to support creativity and experimentation allows it to anticipate future demands, attain first-mover advantages, and generate new business (Hult et al., 2004;Brettel et al., 2015). Finally, proactiveness represents the behavioural dimension that facilitates EO deployment through organisational capabilities. ...
Article
Full-text available
Entrepreneurial orientation (EO) is associated with superior performance, although the mechanisms through which EO translates into an advantageous market position are still poorly understood. Drawing on EO and resource-based theory (RBT) literature, this study highlights the role of a systemic bundle of firms' capabilities in channelling the effect of EO on performance. The components of EO – innovativeness, risk-taking, and proactiveness – are analysed hierarchically to better understand how the entrepreneurial process builds within the firm and facilitates the development of idiosyncratic capabilities. The results, based on a sample of firms operating in rapidly evolving markets, suggest that innovativeness, as part of the organizational culture, contributes to risk-taking and proactiveness. Proactiveness enables firms to seize new market opportunities and foster innovation capability, directly and indirectly, through networking and market learning. Innovation capability is the ultimate driver of a firm's performance, in terms of enhancing its customer equity and business growth.
... La innovación ha sido explorada desde diversas perspectivas con miras al desempeño de la organización (Anning-Dorson, 2017; Apraiz y Antonio, 2020; Damanpour, Walker y Avellaneda, 2009;Farooq, Vij y Kaur, 2021;Hult, Hurley y Knight, 2009), incluso se ha explorado esta relación por tamaño de empresa. Farooq et al. (2021) demuestran que la innovación tiene un efecto positivo significativo en el desempeño empresarial a través de la mediación del tamaño de la empresa basado en el número de empleados, pero no encuentran ese efecto mediador cuando el tamaño de la empresa se determina con base en la inversión. ...
... Los resultados de esta investigación se sitúan a la par de la postura de Slater y Narver (1994) y Noruzy et al. (2013), quienes argumentan que las empresas más innovadoras desarrollan habilidades que las conducen a lograr un mejor desempeño. Se detectó que la influencia significativa de la innovación en el rendimiento empresarial es consistente con estudios empíricos (Apraiz y Antonio, 2020;Hult et al., 2009;Mahmoud et al., 2016;Suliyanto y Rahab, 2012). ...
... Las empresas innovadoras desarrollan su orientación al mercado, y mediante el monitoreo a clientes, competencia y nueva tecnología obtienen información del entorno que las mantiene a la vanguardia, encuentran nuevas ideas de productos y procesos, nuevas formas de hacer negocios y detectan necesidades de los clientes cada vez más exigentes. Además, de acuerdo con Hult et al. (2009), el vínculo entre la orientación al mercado y el desempeño es sólido, incluso en contextos ambientales que se caracterizan por diversos grados de turbulencia del mercado. ...
Article
Full-text available
La innovación es la estrategia de las empresas para la creación de valor, mejorar la competitividad y el desarrollo sostenible. El objetivo de esta investigación fue analizar la influencia de la innovación en el rendimiento ante la mediación de la orientación al aprendizaje y al mercado. Se llevó a cabo un estudio cuantitativo explicativo en una muestra de 71 empresas mexicanas con un modelado de ecuaciones estructurales, con el que se comprobó la influencia de la innovación en el rendimiento, la orientación al aprendizaje y la orientación al mercado. Además, reveló influencia significativa de la innovación en el rendimiento a través de la mediación de la orientación al aprendizaje y al mercado. Se resalta entonces la innovación como factor primordial que permea el rendimiento para visualizar mejores condiciones y expectativas empresariales.
... The capacity to innovate is one of the key factors that improve business performance (Burns & Stalker, 1961;Porter, 1990). An organisation's culture, i.e., norms, values and beliefs within the organisation, can boost behaviour that is ultimately related to business performance (Hult et al., 2004). When specific attitudes are accommodated via organisational culture, the consequences are diffused across circumstances, groups and individuals inside the firm. ...
... Moreover, a large number of studies found a significant relationship between firm innovativeness and performance in different types of organisations (Menguc & Auh, 2006;Rubera and Kirca, 2012). In the study of 181 firms, Hult et al. (2004) found that market orientation and entrepreneurial orientation as a result of BMI positively affect innovativeness and subsequently influence business performance. Hult et al. (2004) concluded that innovativeness appeared to be a key mediator in their empirical research. ...
... In the study of 181 firms, Hult et al. (2004) found that market orientation and entrepreneurial orientation as a result of BMI positively affect innovativeness and subsequently influence business performance. Hult et al. (2004) concluded that innovativeness appeared to be a key mediator in their empirical research. This can be done within a firm in various ways, such as by sharing the business idea within the entire organisation, developing opportunity-seeking capabilities and creating real value propositions. ...
Thesis
Full-text available
Firms need to be innovative and adaptive in competitive business environments subject to technological advancement and rapid changes in regulations and customers’ preferences. To do so, companies traditionally innovate their products or services, processes, marketing or organization. Since the advent of the Internet, business model innovation (BMI) has emerged as a new conceptual focus and a critical point to innovation. Compared to other traditional innovations, BMI is associated with high risk and uncertainty since it involves fundamental changes to the core components and/or the architecture of a firm’s business model (BM). Therefore, if not handled properly, a well-formulated BM may fail to improve performance. Therefore, knowing how and when to innovate a BM is a severe challenge for managers/owners of firms. Although most studies that combine strategic and innovation management with BMs mainly focus on large enterprises, the vast majority of firms worldwide (99%) are small and medium-sized enterprises (SMEs). To fill the gap, our research objective is: “To develop and test a conceptual model for implementation of Business Model Innovation in SMEs that focuses on “human and organizational” factors to improve performance. This research adopted a mixed-method approach consisted of five phases, e.g., two literature reviews, two quantitative studies (Survey, Structural equation modeling using SmartPLS 3) and one qualitative research (Case study, Cross-case analysis using Atlasti.9) to fulfil the research objective. Our research comprehensive conceptual model helps researchers understand the causal mechanism under which BMI influences the overall firm performance and serves as the grounding for empirical research in different types of companies, e.g., start-ups, SMEs, and large enterprises. On a practical level, our results give SME owners and managers insight into potential contingency factors on expected performance effects of business model innovation. Overall, this research analyzes BMI from different angles and develops a model to maximize business model innovation’s impact on a firm’s performance, especially from human and organizational perspectives. While the business world is constantly changing in terms of technology, regulations, and customer needs, these results advance BMI research by opening the black box of the causal relationship between BMI and a firm’s overall performance to better understand the BMI phenomenon.
... It is true that without innovation, it is not easy for any company to achieve a competitive advantage or to increase its performance, and the success of supply chain management relies on digital innovation [108]. Therefore, sustainable supply chain performance is dependent on innovation [109]. ...
... This literature review revealed that there is a limited amount of academic research and case studies in the field of SSCM that explores all three dimensions of sustainability. In addition, according to Birkel and Muller [108], there is a limited number of studies which examine the relationship of all the three pillars with the DT of supply chains. Most studies focus on the financial impact, which constitutes a high concern of companies. ...
Article
Full-text available
In an era where environmental and social pressures on companies are increasing, sustainable supply chain management is essential for the efficient operation and survivability of the organizations (members of the chain). Digital transformation and the adoption of new technologies could support the development of sustainable strategies, as they support supply chain processes, decrease operational costs, enable control and monitoring of operations and support green practices. The purpose of this paper is to explore the relationship between sustainable supply chain management and digital transformation through the adoption of specific technologies (Blockchain technology, big data analytics, internet of things). It aims at theory building and the development of a conceptual framework, enabling the explanation of under which circumstances the above combination could lead to the development of sustainable performances. It also aims to examine how companies can increase their competitive advantage and/or increase their business performance, contributing both to academics and practitioners. After conducting a literature review analysis, a significant gap was detected. There are a few studies providing theoretical approaches to examining all three pillars of sustainability, while at the same time analyzing the impact of big data analytics, internet of things and blockchain technology on the development of sustainable supply chains. Aiming to address this gap, this paper primarily conducts a literature review, identifies definitions and theories used to explain the different pillars of flexibility, and examines the effect of different technologies. It then develops a theoretical conceptual framework, which could enable both academics and practitioners to examine the impact of the adoption of different technologies on sustainable supply chain management. The findings of this research reveal that digital transformation plays an important role to companies, as the combination of different technologies may lead to the development of significant capabilities, increasing sustainable performances and enabling the development of sustainable strategies, which can improve companies’ position in the market.
... From hierarchical viewpoint, inventiveness refers to firm's capacity to introduce new procedures, products or thoughts in affiliation (Hult et al., 2004). Consequently, firm creativity ''readiness to change'', awareness to new thoughts are as part of firm's culture (Hurley and Hult, 1998). ...
Article
Full-text available
The Resource-Based View (RBV) states the intangible resources as knowledge resources that provide better and more strategic outcomes than tangible resources of the organization. In this discourse, this study inclines to investigate the role of explicit and tacit knowledge sharing practicing (KSP) on the performance of banks with a mediating role of innovation. The existing instrument is utilized to gather the information from 268 managers from the sample size of 42 banks. Confirmatory factor analyses (CFA) utilized to assess the accuracy of the model. The results of the study shed light that innovation altogether intervenes in the relationship between both explicit and tacit knowledge-driven performance. Further, findings of the study postulate that explicit KSP fundamentally gives momentum to the performance of banks comparatively tacit KPS thus emphasizes that managers need to increase the flow of tacit KSP through social networking, etc.
... In the conditions of expanding globalization and intensifying competition in tourism at the local, regional, national and international level, the importance of developing a competitive advantage through innovations continues to grow, thus encouraging the tourism sector businesses to expand their innovative activity (Keller, 2005;Pikkemaat & Peters, 2006;Pikkemaat & Weiemair, 2007). In individual areas of the tourism industry, where consumers expect highly personalized services, creating innovation can be the factor in building a competitive advantage (Novelli et al., 2006;Hult et al., 2004). The positive connection between innovation and success has been highlighted in many studies (Agarwal et al., 2003;Han et al., 1998). ...
Article
Full-text available
The skills of acquiring and processing information as well as creating innovations remain the key factor responsible for the market success of enterprises, one of the most important factors in gaining a competitive advantage on the market. It is also true for the tourism market of which catering services make an essential part. Hotel industry has been the subject of intensive research in this area for over 2 decades. Much less scientific attention has been paid to innovation in the restaurant sector. Therefore, the intention of the authors of this study was to analyse the process of creating innovations in restaurants operating in the largest Polish cities. The study identifies the factors responsible for the innovative activity of restaurants, perceived from the perspective of their managers. For this purpose, a multivariate method, in the form of classification trees, was used. The research material was collected in the course of a survey carried out in 250 restaurants. As a result of the applied research methods, the innovation factors were specified and 4 segments of innovative restaurants in Poland were identified. These segments are made up of 75% of restaurants applying pro-innovative activities, which for them represent an important aspect of market success. Pro-innovative activities are implemented more often by chain restaurants as well as the ones operating in hotel facilities. Small, family-run restaurants use innovations on a smaller scale. They refer to selected restaurants operating in the 6 largest Polish cities, which limits the possibility of making generalizations regarding other forms of catering establishments functioning in other geographical locations. Future research should cover a wider group of catering establishments, in various locations.
... The primary objective for any index is about resources being in place for carrying out innovation activities. These resources include, but are not limited to, human capital, research, infrastructure sophistication, market superiority, knowledgebase, efficacy of technology delivery, creative outputs, etc. [25] . It ensures that innovation has the environment ready. ...
Article
Full-text available
Insights in understanding critical growth drivers of innovation are essential for industrial development and economic growth for competitive advantage. This study identifies indicators from the world's major indexes and industry-level concerns. The indicators are mapped to these concerns using expert opinions and then treated mathematically using technique of order preference by similarity to an ideal solution (TOPSIS). This mapping ranks and identifies the most favorable indicators for several concerns. It, thus, identifies the critical role the indicators play for the drivers to the most effective advantage using the TOPSIS method as a comprehensive ranking of indicators effectively facilitates decision-making for estimated levels. The method highlights are as follows: • The most prevailing indicators for innovation are considered from the major innovation indexes for industries for mapping with concerns within the industry. • Industry-specific concerns for the pharmaceutical industry are selected for the study. • The mapping of indicators to concerns using expert opinion and using the TOPSIS method generated a matrix of the ranked indicators, aids in prioritizing resources and existing knowledge to resolve the concerns.
... Са друге стране, истиче се важност оријентације на учење, имајући у виду да је она позитивно повезана са развојем нових услуга, што потврђује истраживање спроведено у хотелском сектору Швајцарске (Tajeddini, 2011). На тај начин, када запослени у хотелијерству стекну знања кроз процес организационог учења, повећава се и способност иновативности, што је од значаја за стицање конкурентске предности (Tang et al., 2015;Hult et al., 2004). Истраживање спроведено у међународној хотелској групи "Avari" указује да су активности управљања људским ресурсима као што су задржавање запослених, брига о запосленима, комуникација, признање, култура и радно окружење, као и обука и развој одиграли значајну улогу у трансформисању групе "Avari" у организацију која учи (Rehman & Hassan, 2019), што само потврђује да управљање људским ресурсима поспешује процес организационог учења. ...
Thesis
Full-text available
Zaposleni imaju važnu ulogu u hotelijerstvu, imajući u vidu da se hotelske usluge pružaju direktno i lično, kao i da između zaposlenih i gostiju postoji visok nivo interakcija koje se u značajnoj meri odražavaju na percepciju kvaliteta usluga. Da bi se osiguralo pružanje kvalitetnih usluga, hotelske organizacije moraju imati zadovolјne zaposlene. Zadovolјstvo zaposlenih i kvalitet usluga opsežno su istraživani u uslužnim delatnostima, ali je svega nekoliko studija razmatrano u kontekstu hotelijerstva, koje su uglavnom bazirane na konceptu zadovolјstva gostiju, dok su izostala istraživanja o konceptu kvaliteta usluga kao višedimenzionalnog konstrukta. Kao rezultat toga, cilј istraživanja doktorske disertacije je da se na osnovu teorijsko-metodološkog i empirijskog istraživanja identifikuje uticaj zadovolјstva zaposlenih na kvalitet usluga u hotelijerstvu i to, pre svega, na neopoplјive komponente kvaliteta usluga koje su najvažnije u oceni kvaliteta, imajući u vidu da se zaposleni nameću kao klјučna odrednica kvaliteta usluga. Empirijsko istraživanje je sprovedeno u periodu od januara 2020. godine do juna 2021. godine u 93 hotela u Republici Srbiji. Prikuplјanje primarnih podataka vršeno je anketiranjem, a zbog ispitivanja uticaja zadovolјstva zaposlenih na percipirani kvalitet usluga, istraživanje je sprovedeno na dva uzorka, zaposlene i goste hotela. U istraživanju je učestvovalo 481 zaposlenih i 478 gostiju. Rezultati deskriptivne statističke analize pokazuju ambivalentnost po pitanju zadovolјstva zaposlenih i visoku percepciju gostiju o kvalitetu usluga koje zaposleni pružaju. Sa druge strane, rezultati testiranja hipoteza potvrdili su značajan i pozitivan uticaj zadovolјstva zaposlenih na percipirani kvalitet usluga u hotelijerstvu i pojedinačne neopiplјive komponente kvaliteta usluga kao što su pouzdanost, odgovornost i sigurnost. Na osnovu rezultata potvrđene su statistički značajne razlike u zadovolјstvu zaposlenih u zavisnosti od nivoa njihovog obrazovanja. Predstavlјena su ograničenja istraživanja koja treba uzeti u obzir prilikom tumačenja rezultata doktorske disertacije. Teorijski doprinos doktorske disertacije ogleda se u empirijskoj verifikaciji efekata zadovolјstva zaposlenih na percipirani kvalitet usluga u hotelijerstvu i pojedinačne neopiplјive komponente kvaliteta usluga kao što su pouzdanost, odgovornost i sigurnost. Rezultati doktorske disetacije pružaju i brojne praktične implikacije za menadžere u hotelijerstvu.
... Organizational innovation is a crucial factor in an organization's development and growth (Cameron & Quinn, 2011a) Hult et al. (2004., explore an organization's overall innovative capability of bringing new products to the market or opening up new markets by integrating strategic orientation with innovative behavior and procedures. ...
Article
Full-text available
In today's global economy, organizational effectiveness and innovation have become top priorities, putting pressure on all businesses worldwide. Therefore, this study aims to explore the impact of organizational culture on effectiveness through organizational innovation. We analyzed organizational resistance as a boundary condition on the relation of organizational innovation and effectiveness to seek whether organizational resistance enhances the positive effect of organizational innovation on effectiveness and on the indirect effect of organizational culture on the effectiveness of organization via organizational effectiveness. Organizational resistance is important because it occurs when employees understand how they fit into the new way of doing things, such that organizational innovation has a positive impact on organizational effectiveness. The data were collected in two waves from 280 manager-employee dyads operating in Pakistan's banking industry. The outcomes indicated that organizational culture positively influences organizational effectiveness; therefore, this relationship is mediated by organizational innovation. The positive influence of organizational innovation on organizational effectiveness is greater among individuals who embraced improvements rapidly than among those who did not. Additionally, organizational resistance reinforces the relationship between organizational culture and effectiveness through organizational innovation, such that the relationship is greater for those who embrace compliant advancement. Thus, the theoretical and practical implications of this study are discussed.
... Project performance (Wu and Fang 2010), and firm performance (Calantone, Cavusgil, and Zhao 2002;Hult, Hurley, and Knight, 2004). Goh and Richards (1997) define OLC as the managerial character that facilitate the organization learning or allow an organization to learn in order to help employees understanding their work properly. ...
Article
Full-text available
Export performance depends on the quality of its innovation capabilities. Thus, innovation capabilities play a major role in terms of export performance. There are different types of dimensions in innovation capabilities however, in this study we are focused on the effective capabilities. Effective innovation capabilities cover the subjects of resources allocation, organizational capabilities, strategic capabilities, management capabilities, culture capabilities and learning capabilities. In this study, a survey on construction chemicals, building materials and textile export companies were selected because these industries are biased toward innovation and are considered among the most competitive industries. The model of this research is based on a review of past research studies and from the combination of them. According to the statistical evaluations made within these firms, 208 employees are randomly selected to form the sample. In this study, we use SPSS and Lisrel softwares. Validity and reliability of research variables were evaluated by using confirmatory factors analysis and Cranach's alpha. Then, by using structural equation modeling in Lisrel software, analysis is conducted on the premises of the primary and secondary hypotheses. As a result, it demonstrates that organizational and learning capabilities have positive effects on export performance.
... Project performance (Wu and Fang 2010), and firm performance (Calantone, Cavusgil, and Zhao 2002;Hult, Hurley, and Knight, 2004). Goh and Richards (1997) define OLC as the managerial character that facilitate the organization learning or allow an organization to learn in order to help employees understanding their work properly. ...
Article
Full-text available
Export performance depends on the quality of its innovation capabilities. Thus, innovation capabilities play a major role in terms of export performance. There are different types of dimensions in innovation capabilities however, in this study we are focused on the effective capabilities. Effective innovation capabilities cover the subjects of resources allocation, organizational capabilities, strategic capabilities, management capabilities, culture capabilities and learning capabilities. In this study, a survey on construction chemicals, building materials and textile export companies were selected because these industries are biased toward innovation and are considered among the most competitive industries. The model of this research is based on a review of past research studies and from the combination of them. According to the statistical evaluations made within these firms, 208 employees are randomly selected to form the sample. In this study, we use SPSS and Lisrel softwares. Validity and reliability of research variables were evaluated by using confirmatory factors analysis and Cranach's alpha. Then, by using structural equation modeling in Lisrel software, analysis is conducted on the premises of the primary and secondary hypotheses. As a result, it demonstrates that organizational and learning capabilities have positive effects on export performance.
... Market orientation is ability to understanding customers and competitors so that the organization can be focus on innovation and improve the market [63]. The development of new business model, organization needs identification of new value proposition from understanding of customer"s need to provide products and services that fit, market orientation will enhance firm sustainable competitive advantage [64,65,67]. ...
Article
Full-text available
In the changing business environment is increasingly competitive and unpredictable of business performance. Business model innovation are challenged to develop new business ideas in to superior performance and sustainable competitive advantage. The main purpose of this study is to test the relationship of knowledge management, market orientation, strategic flexibility and business model innovation. Data were collected from 245 SMEs in Thailand applying structural equation modeling (SEM). The results revealed that knowledge management has positive effects on market orientation, strategic flexibility and business model innovation. Market orientation has positive effects on strategic flexibility and business model innovation. Furthermore, strategic flexibility plays an important role in mediating the effects of both knowledge management and market orientation on business model innovation. The findings of the presents study may contribute to understanding how strategic flexibility effects on business model innovation in the SME sector.
... According to Lumpkin and Dess (1996), innovativeness is a strategic weapon by which a firm deals with variation in the internal and external marketplaces. To survive in competitive atmospheres, it is vital to fuel innovativeness which in turn contributes to competitive superiority and a firm's performance (Hult, Hurley, and Knight 2004). Thus, it is hypothesized that; ...
Article
Full-text available
The founders' cognitive element: the global mindset to become global at the inception is mostly absent from the literature on born-global. Furthermore, the scope of research into the impact of entrepreneurial orientation on a born-global global mindset in underdeveloped countries is minimal. Thus, this study aims to explore the influence of entrepreneurial orientation on the global mindset. Using the structural equation modelling (SEM) analytic technique, the research hypotheses based on the literature on entrepreneurial orientation and a global mindset are examined with a sample of 295 Sri Lankan ICT-born-global firms. The results indicate that innovativeness, risk-taking, and proactiveness have a favourable impact on the global mindset in Sri Lankan ICT-born-global. The most important managerial takeaway from this research is that entrepreneurs should work on enhancing their entrepreneurial processes to increase their receptivity to global opportunities.
... Damanpour (1996) It is defined as the creation of knowledge, reconfiguration of already available information, renewal of old procedures. (Drucker, 2002) Defines five types of innovations namely new product, novel production, new suppliers, new organizational forms (Ranis & Fei, 1961) Firms capacity and tendency to bring innovation in their products, processes, ideas conveniently and successfully (Hult, Hurley, & Knight, 2004) It defines innovation as an invention that can sell a product or service profitably (Crawford, 2008) It is defined as the search and promotion of new ideas and supporting those ideas to be implementing them M. Singh and Sarkar (2012) It is defined as a creation of novel knowledge and ideas that helps in driving new business outcomes, that aim at developing market-driven processes and structures that enhances internal business processes and structure. ...
Article
Full-text available
This paper explores all the previous studies that are linked to the succession of family owned business. It includes all the variables under consideration and their relationship with each other. First of all, conceptual definitions are mentioned that lists some of the relevant definitions given by different authors over a period of time. After the table of conceptual definitions, the definition that is most suitable for this study is mentioned along with their author and year. Then, the review of primary literature theory and evidence are mentioned. This session covers the topic such as family businesses and family-owned SMEs as it includes original researches regarding the study under consideration. The subsequent session covers the topics such as innovation in a family business, succession in a family business, and leadership.
... The achievement of organizational goals can be seen from the performance of a business (Hult et al. 2004). Meanwhile, the results of the organization can be seen from its business performance (Saunila 2014). ...
... Innovativeness relates to the capacity of the firm to mesh together in innovation and managers use this innovativeness to solve business problems and challenges, thus resulting in providing survival and success pace for the firm, either for current or future (Burns and Stalker, 1961;Hult, Hurley and Knight, 2004;as cited in Zawawi et al. 2016). ...
Conference Paper
Full-text available
The outbreak of Corona Virus (COVID-19) has no small impact on every sector of the economy. Education is one of the most affected sectors most especially in Africa. Thus, this study focused on the strategies for managing fund and human resources during crises in public universities in Nigeria: the innovative perspective. The fear of the unknown brought about by unstable situation such as; disasters, unrest or outbreak of viruses and/or diseases can lead to instability or crises in any economy. Funds and human resources are the major resources that drive an organisation and an unstable situation can affect the availability of fund and in turn affect the demand for human capital in any organisation. Therefore, the study recommended among others that universities management should be more innovative in the management of fund by increasing their revenue generation base through the expansion of their programmes and other avenue of generating revenue internally, available fund should be properly managed as recurrent revenue should not be used for financing medium or long term expenditures and also encourage collaboration with non-governmental agencies and philanthropist for financial support. It was also recommended that, human resources in the institutions should be adequately maintained, constantly trained and well rewarded for quality output.
... As pointed out by Hult et al. (2004), "Innovativeness relates to the firm's capacity to engage in innovation" (p. 429). ...
Article
Purpose-The purpose of this study is to seek to investigate whether and how country of origin (COO) cues-category-country image (CCI) and typicality-and importers' domain-specific innovativeness (DSI) influence importers' propensity to the trial new value and premium products. Moreover, it aims to understand whether and how the relationship between the COO effect and industrial purchase intentions is moderated by importers' propensity to innovate (DSI). Design/methodology/approach-International importers completed a quantitative online survey. Factor analysis was used to summarize the latent constructs into orthogonal scores. General linear modeling was applied to the scores to test the hypotheses. Findings-The results indicate that importers' propensity to trial value products is directly influenced by CCI and importers' DSI. For premium products, typicality has a positive effect on their propensity to trial. Also, CCI and DSI have positive effects on the trial of value products, and the effect is more pronounced than for premium products. Importers' DSI positively moderates CCI in premium product trials, while it negatively moderates typicality in value products. Practical implications-This research provides important managerial implications for practitioners seeking to increase foreign sales, strengthening importers' product perceived value through COO cues. Exporters should distinguish between value and premium products and, in the selection of international channel partners, they must be attentive to importers' personal characteristics, such as their propensity to innovate. Exporters selling value products should communicate CCI more clearly and, when targeting innovative importers, opt for atypical products instead of traditional ones. For premium products, which require more complex decisions, exporters should especially underscore product typicality and, with innovative importers, emphasize positive CCI. Originality/value-By focusing on the two critical issues of product selection and price levels, this study's original contribution is to emphasize that, for the same product category, in industrial purchasing decisions of value versus premium products, the COO effect can be different. It also highlights the importance of investigating the COO effect by concentrating on industrial buyers' personal characteristics, here the DSI of importers, as moderating variables.
... Schumpeter (1934) reported that product innovation involves bringing new goods to the market that are unfamiliar to consumers and of higher quality. According to Hult, Hurley, and Knight (2004), product innovation affects performance positively as it protects the company from competition and market threats. Process innovation is a method of improving a firm's internal operations. ...
Article
Full-text available
Small and medium enterprises are major players in the competition and growth of economies. They have been accelerating changes towards achieving Burundi’s vision 2025. Even so, they have experienced numerous challenges which hinder their performance. Those obstacles can be improved by adopting entrepreneurial innovation as a strategy. The focus of this paper was to examine how entrepreneurial innovation affects the performance of small and medium enterprises in Bujumbura, Burundi. The resource-based view and dynamic capability theory were the main theories. This study used positivism as a research philosophy. An explanatory research design was employed on a sample size of 164 small and medium enterprises selected from the target population of 279 small and medium enterprises in Bujumbura, Burundi. The study found that process, organizational, and market innovation all had a significant effect on the performance of small and medium enterprises, while product innovation had no effect. The study recommends that small and medium business owners and managers should focus their efforts on establishing entrepreneurial innovation such as process, organizational, and market innovation to improve their performance and acquire a long-term competitive edge. Keywords: Entrepreneurial Innovation, Performance, SMEs, Resource-Based View Theory, Dynamic Capability Theory, Burundi.
... According to Hult et al. [68] innovation in an organization can be manifested in a diversity of ways and places in the organization such as a "new product or service, a new production process, or a new structure or administrative system. " Institutions are forced to innovate at a faster rate to maintain their competitiveness in the market. ...
Article
Full-text available
Background In the domain of health services, little research has focused on how organizational culture, specifically internal market-oriented cultures (IMOCs), are associated with organizational climate resources, support for autonomy (SA), and whether and how IMOCs and SA are either individually or in combination related to employee perceptions of the attractiveness of the organization and their level of innovative behavior. These knowledge gaps in previous research motivated this study. Methods A conceptual model was tested on a sample (N = 1008) of hospital employees. Partial least-squares structural equation modeling (PLS–SEM) was employed to test the conceptual models, using the SmartPLS 3 software. To test the mediator effect, a bootstrapping test was used to determine whether the direct and indirect effects were statistically significant, and when combining two tests, to determine the type of mediator effect. Results The results can be summarized as four key findings: i) organizational culture (referring to an IMOC) was positively and directly related to SA (β = 0.87) and organizational attractiveness (β = 0.45); ii) SA was positively and directly related to both organizational attractiveness (β = 0.22) and employee individual innovative behavior (β = 0.37); iii) The relationships between an IMOC, SA, and employee innovative behavior were all mediated through organizational attractiveness; and iv) SA mediated the relationship between the IMOC and organizational attractiveness as well as that between the IMOC and employee innovative behavior. Conclusions Organizational culture, IMOC, organizational climate resources, and SA were highly correlated and necessary drivers of employee perceptions of organizational attractiveness and their innovative behavior. Managers of hospitals should consider IMOC and SA as two organizational resources that are potentially manageable and controllable. Consequently, managers should actively invest in these resources. Such investments will lead to resource capitalization that will improve both employee perceptions of organizational attractiveness as well as their innovative behavior.
... It has been observed that LO provides an atmosphere of learning to its members for the promotion of innovation and creativity (Anjaria, 2020). Growing scholars have proposed that with the rapid globalization and higher worldwide competition, the importance of LO increases day by day as these organizations produce positive outcomes such as organizational innovation (OI) (Alegre & Chiva, 2013;Hult, Hurley, & Knight, 2004). OI is defined as the planning, execution, and implementation of new ideas to create new products/services or reshape old products/services into new ones (Damanpour & Schneider, 2006). ...
Article
Full-text available
Purpose-Change in organizations becomes an essential element for the attainment of competitive advantage and survival of organizations in a highly competitive environment. This study investigated the direct influence of learning organizations on organizational innovation and affective commitment to change. Moreover, this study also examined the moderating role of psychosocial safety climate between the relationship between learning organizations and organizational innovation and affective commitment to change. Design/Methodology/Approach-For this study, a self-administered survey technique was adopted to collect data from 303 permanent employees from the manufacturing sector through the time-lag technique. To test the hypotheses, SPSS, and AMOS statistical software were used to analyze the data. Findings-The findings of this study revealed the direct influence of learning organizations on organizational innovation and affective commitment to change. Moreover, the moderating role of psychosocial safety climate was also found significant. A higher level of psychosocial safety climate enhanced the organizational innovation and affective commitment to change in learning organizations. Originality/Value-This study contributes to the existing literature on organizational studies that focuses on innovation and employee's affective commitment. By employing social schema theory, this study extends the existing body of knowledge that how learning organizations can increase innovation and affective commitment of their employees and how psychosocial safety climate moderates the relationship between learning organizations, organizational innovation, and affective commitment to change in the manufacturing industry of Pakistan. Practical Implications-The findings of this research are helpful for the management of manufacturing and service organizations in a way by utilizing the concept of the learning organization. Moreover, management can enhance the level of organizational innovation and affective commitment to change. Further, this study showed that a psychosocial safety climate is an effective tool for improving work quality and employees' affective commitment to change.
... We applied the scale used by Kristal et al. (2010) for ambidexterity because it models both exploration and exploitation strategies within a supply chain rather than within firm boundaries such as those in the study by He and Wong (2004). Supplier innovativeness was operationalized on the basis of Inemek and Matthyssens' (2013) scale because it was especially developed for suppliers' self-assessment and was founded on previous works (Nassimbeni, 2003;Hult et al., 2004). ...
Article
Purpose Buyer–supplier relationships in public procurement have garnered increasing attention in research, yet studies on the perspective of suppliers on public procurement have remained limited. This research takes the perspective of suppliers and aims to investigate the innovativeness of suppliers and the impact of supply chain ambidexterity strategies on their perceptions about public procurement in terms of innovation enablers and customer attractiveness. Design/methodology/approach This research draws from a survey of 137 suppliers to the public sector in Finland and applies PLS-path modeling to test its hypotheses. Findings The findings reveal that the ambidexterity strategy of suppliers in the supply chain influences how they perceive the innovation enablers and customer attractiveness of public organizations since processes of public procurement do not support these strategies fully. Supplier innovativeness has an influence on the perceived innovation enablers of public procurement, which, in turn, influences customer attractiveness. Practical implications The innovativeness and strategies of suppliers for the supply chain have an impact on how attractive they perceive public procurement. The findings of this research provide insights on why the customer attractiveness of public procurement may not be high enough to secure the competition in their bidding processes. Originality/value The study’s contribution adds to the field of buyer–supplier relationships and customer attractiveness in public procurement by showing the importance of innovation enablers and highlighting the impact of supplier's ambidexterity in the supply chain on their perceptions about public procurement.
... Thus, in particular product/service innovativeness enables entrepreneurial ventures to target foreign markets with new and differentiated products/services, which may lead to a competitive advantage (Hsieh et al., 2019). While high product/service innovativeness is conducive for entrepreneurial ventures to enter international, dynamic markets (Dai et al., 2014;Tan et al., 2007), it also accounts for substantial investments and putting knowledge into practice (Hult et al., 2004). Therefore, especially for entrepreneurial ventures, exploiting competitive advantages via firstmover positioning from innovative products/services (Porter, 1990) is important in order to recover their research and development (R&D) investments (Kiss et al., 2017), for example, by spreading the costs of R&D among larger sales volumes (Cassiman & Golovko, 2011). ...
Article
Full-text available
Research increasingly suggests that innovativeness and internationalization are two intertwined pathways to growth for entrepreneurial ventures. However, both ways can be resource intensive and thus challenging. Therefore, theory points to the emerging concept of entrepreneurial bricolage to explain how resourceful behavior helps entrepreneurial ventures thrive despite facing the challenges associated with growth. At the same time, recent studies increasingly emphasize the importance of institutional support for successful venture growth. Combining both streams, this study explores product/service innovativeness as a mediator in the relationship between bricolage and the degree of internationalization and further investigates the moderating role of governmental entrepreneurship support programs in this relationship. By drawing on a unique dataset of 681 European entrepreneurial ventures, we find that bricolage is an important means for entrepreneurial ventures that target foreign markets, as it fosters product/service innovativeness and thereby enhances a venture’s degree of internationalization. Interestingly, governmental entrepreneurship support programs do not affect the link between bricolage and innovativeness, but they influence how innovativeness translates into greater degrees of internationalization. We discuss the theoretical and practical implications of our findings.
... Innovative behaviour is defined as behaviour that encourages and supports new ideas, experimentation, and creative processes that result in novelty (Ketchen and Short 2012). It explores in "new ideas and creative processes that lead to new products, services, and processes" (Hult et al. 2004;Kreiser et al. 2002;Lumpkin and Dess 1996). Innovativeness is a key of EO because "it helps firms to pursue new opportunities" (Ketchen and Short 2012). ...
Article
Full-text available
The construction industry in Malaysia has been identified as a major catalyst for the country. It is one of the sectors that contribute the most environmental pollutions. Therefore, this study analyses the effects of entrepreneurial orientation (EO) dimensions (i.e., innovativeness, proactiveness, and risk taking) on Malaysia construction sector performance. A survey of top ten construction firms was undertaken using a questionnaire. With the help of Statistical Package for Social Science (SPSS), data collected was analysed by using a multiple regression analysis. The study found that the variables of innovativeness, proactiveness, and risk-taking have a substantial positive impact on the performance of the Malaysian construction sector. This research contributes to the field of entrepreneurship in developing countries by expanding knowledge of the effects of EO characteristics on the success of the Malaysian construction sector.
... Simultaneously, the organization that fails to innovate will expire in the long run [63]. Innovation can be categorized into four classes, i.e., creation of a new product/service, expansion (extension), replication (duplication) of an existing product or service line, and synthesis with the combination of existing and new processes [69]. ...
Article
Full-text available
Entrepreneurship has become a key part of economies, and having an entrepreneurial orientation for SMEs is essential for success. EO and dimensions may differ in different cultures and different countries, thus a cross-cultural validation is suggested by the existing literature, which is lacking Malaysian perspectives. The objective of this study is to examine the relationships between entrepreneurial orientation (EO) and business performances of Malay-based SMEs in Malaysia and used the Partial Least Square (PLS) approach for data analysis. The research model for this study was drawn from the literature on entrepreneurship. This study identified five entrepreneurial orientations and tested hypotheses on which EO has a significant influence on business performance with empirical data from a sample of 407 Malay-based SMEs in Malaysia. The PLS regression analysis shows that risk-taking, proactiveness, innovativeness, and achievement factors are the significant elements of entrepreneurship orientation. Nevertheless, one independent variable, i.e., autonomy does not exhibit any relationship. This study offers a significant contribution to the current literature by empirically analyzing the link between the subcomponent of EO and business performance, specifically in the Malaysian SME sector, which has not been explored comprehensively. The paper’s interesting findings can serve to remind entrepreneurs that they cannot neglect the element of EO in their activities, particularly the success of the business. The research could be useful for policymakers to obtain some ideas and develop policies to help SMEs in Malaysia. Specifically, to enhance the performance in the SMEs sectors, the government should enforce easy to use, consistent, and standardized policies in all SMEs sectors and for all other stakeholders in boosting these sectors.
... Different from innovation, innovativeness refers to a "firm's capacity to engage in innovation" (Hult et al., 2004, p. 429). More specifically, innovativeness is an enduring capacity to introduce new processes, products, or ideas in a business (Hult et al., 2004;Im and Workman, 2004). The focus of innovation has shifted from product attribute novelty to the continuous fulfillment of customer expectations since the 1990s (Zairi, 1994). ...
Article
Full-text available
Purpose This study aims to investigate the impacts of Generation Z (Gen Z) domestic food tourists’ perceived restaurant innovativeness on destination cognitive food image and examine the impacts of destination cognitive food image on destination brand image and tourists’ revisit intention. Design/methodology/approach Data were collected through an online survey, and 337 Gen Z domestic food tourists in Guangzhou participated. Partial least squares structural equation modeling was used for the data analysis. Findings This study found that tourists’ perceptions of restaurant menu, technology-based service and experiential innovativeness played essential roles in enhancing destination cognitive food image. In addition, the destination cognitive food image strengthened the destination brand image and increased tourists’ revisit intentions for the future. Practical implications The destination cognitive food image perceived by Gen Z domestic food tourists is affected by the restaurant menu, technology-based service and experiential innovativeness. To build a solid destination food image, restaurant operators and decision-makers should prioritize the allocation of resources to develop their innovation capacity. This study also suggests a path of food tourism destination branding from stakeholders’ perspectives and encourages collaboration with stakeholders. Enhanced food tourism destination competitiveness toward the young tourists’ market will generate an overall win for stakeholders Originality/value Food providers’ innovativeness, an important factor attracting young tourists’ attention, has been neglected in the discussion of the food tourism experience. This study fills the research gap, investigates the importance of restaurant innovativeness in building food tourism destination competitiveness and provides valuable suggestions to destination restaurant operators and decision-makers.
... Deshpande, Farley and Webster [64] examined that the relationship between market orientation and innovation activities is positive (+), thereby being related to achieving remarkable corporate performance. The study by Hurley, Hult and Knight [65] found that companies with high market orientation promoted product innovation by actively responding to new changing technologies and markets. Market orientation ultimately plays a role in promoting technological innovation implemented by companies [57]. ...
Article
Full-text available
This paper aims to examine the relations between market orientation, technological innovation and corporate performance with the moderating roles of leadership, exploitation and exploration by an empirical study targeting 414 Korean responses in diverse industries. The results of the analysis reveal that technological innovation partially mediates the relationship between market orientation and the perceived financial and non-financial performance of a company. Additionally, when technological innovation affects corporate performance, transformational leadership and transactional leadership have a moderating effect on both the perceived financial and non-financial performance, but the exploitation and exploration of innovation activity had a moderating effect only on non-financial performance. Finally, when market orientation affects corporate performance, transformational leadership and exploration of innovative activities have a moderating effect only on non-financial performance. The novelty of this study lies in that it is more effective to carry out market-oriented activities with a focus on the customers rather than to pursue technological innovation alone in order to improve corporate performance. The contribution of this research is to expand the scope of research related to the results of technological innovation academically and to support how to apply corporate management elements in order to improve corporate performance in the field of business.
... In this classification, we focused on this type of activity. Thus, Freixanet et al. (2020) and Cheng and Huizingh (2014), based on Baker and Sinkula (1999) and Hult et al. (2004), considered the innovation projects measuring the integration and coordination of exchange activities and updated the information between internal and external partners for coupled activities. Other authors, such as Mazzola et al. (2012), quantified the number of patents that the company jointly develops with other organizations or universities and the number of R&D alliances and R&D joint ventures the company participates in for measuring coupled practices. ...
Article
Full-text available
Open innovation (OI) is a strategy that firms adopt to innovate by incorporating knowledge from both outside and inside their firms, exploiting their knowledge, and exploring the knowledge of their environment. OI is relevant for small-and medium-sized enterprises (SMEs) because it allows them to adapt and thrive in increasingly turbulent and dynamic competitive environments, generate competitive advantages, and increase their performances. The method adopted for measuring OI is heterogeneous because of the breadth of the concept and application of various OI metrics and practices. This study analyzes the various methods used for measuring OI in the SME context through a systematic review of the empirical literature. To meet this objective, a two-step methodological approach was implemented: first, a systematic literature review, and second, a bibliometric analysis. Finally, 125 empirical articles from 2009 to 2020 were selected from the Web of Science and Scopus databases. The results show that the empirical literature uses a wide variety of methods to measure OI activities. While this adds to the richness of the concept, it makes theory development difficult. Based on the systematic literature review conducted, it is clear that there are different perspectives pertaining to the measurement of OI: (1) external knowledge sources, internal knowledge, and collaboration; (2) technology exploitation and technology exploration; (3) inbound, outbound, and couple; and (4) openness. This study has important implications to researchers and SME managers, will help them develop a better understanding of how OI activities can be measured.
... El conocimiento del mercado es el origen de la estrategia de las nuevas pymes ecuatorianas, la orientación al mercado -como un antecedente que guiará la orientación al aprendizaje-no simultáneo o independiente, como lo han propuesto Hult, Hurley y Knight (2004). Esta orientación está compuesta por la generación de inteligencia de mercado, que consiste en la recolección de información acerca de los consumidores y competidores, así como su difusión y la capacidad de respuesta organizativa con base en esa inteligencia. ...
Article
Full-text available
The study explains the relationship between two business capacities: market orientation and its influence on learning orientation and, both, on the organizational results of small and medium-sized enterprises (SMEs) in Ecuador. This is a transversal and quantitative deductive-hypothetical investigation. The theoretical model and the proposed hypotheses were tested by applying confirmatory factor analysis of the scales and an analysis based on the structural equations model. It was based on the model of Sinkula, Baker and Noor- dewier. It was determined that there is a link between market orientation and learning, which translates into a direct and positive impact with organizational results, which, al- though they do not reach significant levels in the development of Ecuadorian SMEs, this result should not be sustained in lack or deficiency of creativity and personal initiative, but in the current existing business culture, which must prioritize market studies and research development activities of new products/services.
Article
Full-text available
This paper investigates the role of innovation strategy on performance of Femine Flour Mill Calabar. The study employed survey research design. The target respondent is the total employees of Femine flour mill Calabar which stand at 126 staff. Self administered questionnaire was used as the instrument for data collection. The instrument was subjected to content validity and test retest statistical analysis was used to ascertain the reliability of the instrument at 0.82. The study adopted simple random sampling technique and Taro Yamane's statistical formula was used to determine the sample size at 96. Pearson Correlation was employed to establish the relationship between the two variables. Out of 96 distributed questionnaires 85 was properly filled and was used for the analysis. , the relationship between level of process innovation strategies, product innovation strategies and firm performance is positive at 0.419 and 0.419 respectively, indicating that an improvement in level of process innovation strategies and product innovation strategies will lead to increase in the firm performance on the average. The study concluded that marketability of our different segmented products and In-depth understanding of customer needs since is a critical source of competitive advantage. The study therefore, recommended that the management should conduct a comprehensive product analysis and also develop a product technology track in order to actively explore the potential market opportunities.
Article
Business model innovation is increasingly seen as a key competitive factor in B2B settings. In this context, prototyping, experimentation, and piloting have gained prominence as agile and resourceful methods that can be employed in business model innovation pursuits. Yet, despite increasing interest in this area, and the growing number of large B2B companies who also started deploying these methods, there is a lack of clarity on the conceptual boundaries between the three concepts. This may impede the advancement of business model innovation research and practices based on the three concepts. We address this gap by conducting a structured literature review, using cross-reference searches and a key informant interview study of 43 executives in 13 B2B organisations. We offer three contributions: (1) definitions for each of these three concepts, (2) seven dominant similarities and (3) five key differences across them. Our research shows that the concepts serve distinct purposes at different stages of the business model innovation process, and we discuss these findings and their broader implications for the literature on business model innovation and for innovation management practices in B2B companies.
Article
The current study aims to bridge the gap in understanding how big data analytics and human resource factors impact supply chain innovation and enhance supply chain sustainability. For empirical investigation, data were collected from employees working in manufacturing firms. For inferential analysis 341 valid responses were used. Results indicate that supply chain innovation is predicted by big data analytic capability, big data analytic staff capability, employee development, employee empowerment and employee involvement and explained large variance R2 0.538 % in measuring supply chain innovativeness. Practically, this research suggests that policy makers should focus on supply chain innovativeness, big data analytics, big data analytics staff capability and supply chain connectivity to enhance sustainable performance in supply chain operations. Theoretically, this research has synthesized literature and develops an integrated research model that combines technology and human resource factors altogether to investigate supply chain innovation and sustainability in supply chain performance.
Article
Purpose The purpose of this study is to highlight the need for developing pricing capability (PC) for business-to-business firms to effectively manage and execute the pricing activities in the organization and succeed in a competitive market. Using the firms’ resource-based view, organizational learning theory and organizational capabilities literature, this study develops a conceptual framework in which market-focused learning and firm innovativeness are potential antecedents of PC and pricing value and business performance (BP) are consequences. Design/methodology/approach The authors conducted an online e-mail-based survey to collect primary cross-sectional data from the 127 Indian small and medium-sized enterprises (SMEs). The partial least squares structural equation modeling technique was used to empirically validate a conceptual framework as well as the research hypotheses. Findings The findings indicate that market-focused learning and firm innovativeness have a substantial influence on PC, which in turn positively affects both pricing value and BP. Moreover, pricing value demonstrates a partial mediating effect on the link between PC and BP. Research limitations/implications This research has certain limitations, namely, using cross-sectional data and limited sample size. More empirical research on the antecedents of PC is required. Practical implications The empirical findings enlighten the SMEs on the significance of developing specialized PC in delivering superior pricing value to customers and achieving greater BP. Originality/value The existing literature lacks empirical data on the development and antecedents of PC, particularly in the SME context. The current study empirically examines the impact of market-focused learning and firm innovativeness on PC.
Chapter
Nowadays, customers, stakeholders and regulators are realizing the importance of dealing with challenges like climate change, pollution, scare resources, high energy cost, poverty and demographical growth (Cherrafi et al. 2016). As a result, high expectations on environmental and social responsibility must be met by today’s manufacturers (Touriki et al. 2021).
Article
Full-text available
Facing the dynamics of global market share, companies are required to have a competitive advantage and be supported by important factors, namely utilizing technology and implementing innovative strategies to be able to create or maintain competitiveness, especially for manufacturing companies. This is also driven by measurable company performance, such as financial performance in several indicators, sales growth, asset profit measurement, and sales returns. This research will be conducted using a systematic literature review in several research journals on innovation strategy and company performance, using a systematic literature review method. The search for these journals was carried out through electronic databases on several sites such as Mendeley, Elsevier/Sciencedirect, Research Gate, Semanticscholar and Wiley. The articles are searched using Booelan Technique with the keywords used are Innovation and Performance. The dominant methods emerging by researchers to examine the relationship between innovation strategy and firm performance are Regression Analysis and Structural Equation Modeling (SEM). The results of this study indicate that process innovation and product innovation have a direct influence on company performance. Process innovation and product innovation are those that are considered the most appropriate and have the strongest relationship to financial performance in manufacturing companies. Pendahuluan Keberlangsungan hidup sebuah perusahaan bersandar terhadap seberapa tanggap dan cepat organisasi atau usaha bisnis menghadapi perubahan yang terus menerus yang terjadi. Inovasi dan teknologi diketahui sebagai faktor penting dalam meningkatkan kinerja dan menimbulkan keuntungan bagi perusahaan dalam menghadapi kedinamisan pasar. Beberapa berpendapat bahwa karena tingginya tingkat persaingan dan daur hidup hidup produk yang lebih pendek, kemampuan sebuah perusahaan menghasilkan inovasi mungkin lebih penting daripada yang ada sebelumnya dimana hal tersebut memungkinkan perusahaan untuk meningkatkan kinerja dan mempertahankan keunggulan kompetitif, Artz et al, (2010) dengan menjalankan inovasi, perusahaan dapat bereaksi terhadap perubahan pasar yang dinamis dan dapat mempertahankan daya saingnya. Bagi sebuah perusahaan manufaktur, persaingan adalah suatu hal yang tidak boleh diabaikan atau dianggap remeh. Menurut Cottam et al, (2001) inovasi menggambarkan salah satu pilihan bagi perusahaan untuk dapat bertahan hidup di lingkungan yang penuh goncangan dan dinamis. Menurut Stock et al, (2013) saat ini, inovasi tidak dapat dihindari untuk perusahaan yang ingin mengembangkan dan mempertahankan keunggulan kompetitif dan atau untuk usaha saat memasuki ke pasar baru. Menjalankan inovasi, organisasi memberikan perhatian terhadap perubahan pasar yang selalu bergerak dan untuk membuat nilai tambah atau menjaga daya saingnya. Produk yang sudah dihasilkan peka terhadap perubahan selera dan pelanggan, teknologi baru, siklus produk yang lebih cepat, dan peningkatan persaingan internasional. Teori tentang hubungan antara strategi inovasi dan kinerja sebuah perusahaan menjadi sejarah karya Schumpeter dan banyak penelitian juga tentang hubungan ini dan ada yang telah menemukan bahwa inovasi adalah komponen kunci untuk
Article
There have been mixed scholarly findings on the relationship between entrepreneurial orientation (EO) and organizational performance, and a framework that adequately explains the mixed results has not emerged. We address this gap and contribute to the literature in two ways. First, we develop a capability-anchored articulation of the EO-organizational performance relationship. Second, we use this articulation to explain mixed findings on the relationship between EO and organizational performance. Our development indicates a negative and curvilinear relationship between EO and organizational performance for emergent organizations. and a positive and curvilinear relationship for post-emergent organizations. Further, our development indicates an inverted U-shaped relationship for a mixed sample of emergent and post-emergent organizations. Contributions to future research include exploring theoretical extensions of the EO-organizational performance relationship and an opportunity to reconceptualize the EO construct by leveraging the capability-based view of the organization.
Article
Purpose The purpose of this paper is to investigate the factors affecting innovative behavior (IB) of Vietnamese enterprises employees based on theories of transformational leadership, social cognitive and knowledge spiral. Design/methodology/approach This study used a combination of in-depth interviews and large-scale surveys in 15 enterprises in the North, Central and South of Vietnam. In total, 455 valid questionnaires from employees of information technology, telecommunications and e-commerce enterprises have been used in this research to explore the impact of transformational leadership (TL), coworker support (CS) and organizational learning (OL) on employees' IB. The data collected were subjected to quantitative analysis, including Cronbach's alpha reliability test, exploratory factor analysis (EFA), confirmatory factor analysis (CFA) and structural equation modeling (SEM) for scales and hypotheses testing. Findings The results show that there are positive relationships between TL, OL and employees' IB, in which OL has a stronger impact than TL. Research limitations/implications The limitations of this paper are that other factors affecting the innovation behavior of employees in Vietnamese enterprises have not been fully explored, the rejection of the hypothesis about the relationship between CS and employees’ IB needs to be considered with the moderating role of job characteristics and the use of convenient random sample selection, due to which its reliability may not be guaranteed. Practical implications From the results of this study, the authors point out that managers in Vietnamese enterprises should develop TL to deliver more creativity in an organization and enhance the corporate learning-oriented environment. Originality/value This paper contributes to the existing literature by focusing on factors affecting IB of enterprises employees in Vietnam, an emerging economy in the world.
Article
Purpose Paradoxical leadership (PL) is a style that can bring stability and flexibility simultaneously, which helps organizations to manage the uncertain external environment. The purpose of this study is to identify if PL could moderate the relationship between organizational silence and employee voice. Design/methodology/approach Data for the study were collected from a sample of 617 gainfully employed factory employees using three standardized questionnaires. The data were analyzed using structural equation modelling (SEM) through Python programming. SEM was used to test the mediating, moderating, and serial-parallel relationship of the proposed model. Findings The research study found that organizational inertia led to silence among employees. It was also found that PL moderated the relationship between organizational silence and employee voice. Originality/value A fair review of the literature showed that studies that examine the effect of PL on organizational silence are scarce. The present study is a modest effort towards addressing this gap in the literature. The findings of the study are significant and have made a substantial contribution to management literature.
Article
Purpose Due to the adverse impact of COVID-19 on businesses, this study investigates how dynamic capabilities could influence SME performance through digitalization as a moderator in an emerging market. Design/methodology/approach A quantitative research approach was adopted, where a cross-sectional survey design was employed to collect the data from 400 SME managers and supervisors in Ghana. Using Statistical Package for Social Science, the data was analyzed through descriptive statistics, correlation and hierarchical regression techniques. Findings The results reveal that the dynamic capabilities (sensing, seizing and transforming) distinctly positively affect SME performance. Furthermore, digitalization significantly augments the relationship between the three dynamic capabilities and SME performance. However, digitalization could only significantly moderate the relationship between transforming capability and SME performance. Practical implications The findings imply that digitalization strategies (such as constant inclusion of digital analytics, digital operations, digital marketing and sales, digital ecosystem, and digital products and services) must be part of the transforming process to enhance the impact of the dynamic capabilities on SMEs performance. Originality/value This study contributes to the extant literature by establishing the effectiveness of digitalization as a moderator on the relationship between transforming capability and SME performance in the new world of COVID-19.
Article
Although it is widely acknowledged that market orientation and learning orientation are necessary success factors, the exact dynamics of the relationship between the constructs and firm performance is not perfectly clear. This article offers a new depth of understanding to this research by introducing and exploring the role of failure learning orientation. Specifically, the roles of market orientation, learning orientation, and failure learning orientation are explored with performance. Unlike previous literature, learning orientation did not mediate the market orientation and performance relationship. Instead, support was found for market orientation’s direct effect on performance and its indirect effect via failure learning orientation. The mediating role of failure learning orientation suggests that more specific learning typologies may alter the market orientation, learning orientation, and performance relationship. The study adds to existing market orientation research and the growing failure learning orientation literature. It emphasizes failure learning orientation’s importance in enhancing competitiveness and superior performance.
Article
Enablers to the innovation capability are various, but they all are considered with equal importance in the existing literature. Authors believe prioritization will advance the understanding of academicians and practitioners further. Hence, we started by recognizing the enablers from the available literature and exploring the possible causal relationship among them. A framework based on the causal relationship among the enablers is proposed. Grey DEMATEL (Decision-making trial and evaluation laboratory) has been used to establish this causal relationship. This study identifies nine of the fifteen enablers as causal factors. They are as follows: Knowledge Exploration, Ideation and Organizational Structure, Organizational Climate, Risk Taking Ability, Collaboration and Networking, Institutional Support, Rejuvenation and Upgrading, Leadership Practices, Technological Adaptation. Practitioners, academicians, and policymakers will have a better understanding of this causal relationship among enablers. Knowledge of these enablers will help in fostering a more conducive environment for escalating the process of innovation in the handicraft cluster.
Article
Purpose The purpose of this study is to build a theory presenting talent development as a driver for innovativeness and strategic flexibility, and how these organizational capabilities affect financial performance. Design/methodology/approach As a methodological approach, this study uses a rich combination of literature review and exploratory interviews with managers and academicians. Moreover, a conceptual framework is tested by confirmatory factor analysis and finally structural equation modelling using the survey data from 462 Greek firms. Findings The results show the positive effect of talent development on strategic flexibility and innovativeness. Moreover, strategic flexibility is an influential firm capability for innovativeness and financial performance. This study also reveals the significance of innovativeness on financial performance. Research limitations/implications This study explores talent development and two certain organizational capabilities, but many other topics that affect business performance remain unexplored. The role of environmental characteristics could also be examined as a moderator in the proposed relationships. Practical implications This study offers clear implications for managers, proving that talent development is a major driving force behind strategic flexibility, innovativeness and financial performance in order for managers to allocate resources, and to develop and execute these capabilities as an integral part of business strategy. Originality/value This empirical study contributes to the literature by developing a research conceptual framework of three underdeveloped firm capabilities, investigating and explaining both their correlations and dynamic nature and their role in financial performance improvement.
Article
The main purpose of this study is to investigate whether market orientation interacts with innovativeness to generate a dynamic capability that procures sustainable competitive advantage draw�ing on the resource-based theory and the dynamic-capabilities perspective. The structural equation modeling was established to explain the complex relationship between market orientation, inno�vativeness, and competitive advantage. To test the hypothesis, this study used partial least square with data from a survey of 105 women entrepreneurs. The results show that orientation influences competitive advantage only when it is bundled together with innovativeness as an internal complementary resource
Article
This paper explores the relationships between the tacit knowledge, explicit knowledge, and innovativeness of International Joint Ventures (IJVs) based on knowledge-based and learning theories. In the context of IJVs, the relationship between knowledge (explicit and tacit) transfer and innovativeness is still complicated by many challenges. We conducted a survey of 199 IJVs in South Korea. A structural equation model was used to test hypothesized linkages. Our results confirm that explicit knowledge transfer is positively associated with innovativeness. The explicit knowledge transferred from the foreign parent to the IJV has a stronger impact on innovativeness than tacit knowledge does. Additionally, tacit knowledge proved to not exhibit a direct impact on the innovativeness of IJVs. The results provide strong support for the mediating role of explicit knowledge in the relationship between tacit knowledge transfer and an IJV's innovativeness. Finally, the strength of the relationship between only explicit knowledge transferred from a parent firm and an IJV's innovativeness increases with international work experience.
Article
Purpose This study seeks to understand how regulatory and competitive forces impact firms' actions and innovation performance. The study investigates how firms strategize internally and externally to address regulatory and competitive forces, and how such actions influence firms' innovation performance. Design/methodology/approach The data were collected via a survey of 217 managers of business organizations in Nigeria. Findings Regulatory forces have a positive relationship with both absorptive capacity (AC) and information sharing (IS). Competitive forces, on the other hand, only have a negative relationship with IS but not with AC. AC has a positive relationship with innovation performance, while IS, surprisingly, does not have a positive relationship with innovation performance. Originality/value The study contributes to knowledge by empirically validating the relationships between environmental forces and innovation performance; more importantly, the study uncovers the underlying factors, i.e. IS and AC that link environmental forces and firms' innovation performance.
Article
Purpose Big data analytics capabilities are the driving force and deemed as an operational excellence approach to improving the green supply chain performance in the post COVID-19 situation. Motivated by the COVID-19 epidemic and the problems it poses to the supply chain's long-term viability, this study used dynamic capabilities theory as a foundation to assess the imperative role of big data analytics capabilities (management, talent and technological) toward green supply chain performance. Design/methodology/approach This study was quantitative and cross-sectional. Data were collected from 374 executives through a survey questionnaire method by applying an appropriate random sampling technique. The authors employed PLS-SEM to analyze the data. Findings The findings revealed that big data analytics capabilities play a significant role in boosting up sustainable supply chain performance. It was found that big data analytics capabilities significantly contributed to supply chain risk management and innovative green product development that ultimately enhanced innovation and learning performance. Moreover, innovation and green learning performance has a significant and positive relationship with sustainable supply chain performance. In the post COVID-19 situation, organizations can enhance their sustainable supply chain performance by giving extra attention to big data analytics capabilities and supply chain risk and innovativeness. Originality/value The paper specifically emphasizes on the factors that result in the sustainability in supply chain integrated with the big data analytics. Additionally, it offers the boundary condition for gaining the sustainable supply chain management.
Article
Full-text available
O objetivo deste trabalho é analisar a relação da capacidade de absorção com a capacidade de inovação de PME's do setor industrial. Quanto a metodologia, a pesquisa caracteriza-se como descritiva-explicativa, e quanto aos meios de investigação a pesquisa é de campo, cuja etapa ocorreu com procedimentos de coleta de dados quantitativos por intermédio da aplicação de survey de amostra, de caráter transversal. Constituiu-se categorias descritivas iniciais, resgatadas de conceitos à partir da plataforma teórica da investigação sobre capacidade de absorção de conhecimento e capacidade de inovação. Desenvolveu-se a análise descritiva, prosseguindo com análises estatísticas multivariadas (modelagem de equações estruturais) utilizando-se o modelo Partial Least Squares Path Modeling – PLS-PM, com o uso do software Smart PLS® 2.0. Os testes de hipóteses revelam que a capacidade de absorção e, de forma relevante, a transformação de conhecimento, exerce efeito positivo na capacidade de inovação. As limitações do estudo derivam do desenvolvimento do modelo à partir de dados de corte transversal e não longitudinal baseando-se a análise ao período deste recorte e da delimitação da população de pesquisa onde os resultados são pertinentes às pequenas e médias empresas da indústria têxtil , ensejando oportunidades de pesquisas futuras, como abordagem longitudinal e a ampliação da população de pesquisa para outros setores.
Article
Full-text available
The field of marketing strategy often makes the important assumption that marketing strategy should occur by first composing a plan on the basis of a careful review of environmental and firm information and then executing that plan. However, there are cases when the composition and execution of an action converge in time so that, in the limit, they occur simultaneously. The authors define such a convergence as improvisation and develop hypotheses to investigate the conditions in which improvisation is likely to occur and be effective. The authors test these hypotheses in a longitudinal study of new product development activities. Results show that organizational improvisation occurs moderately in organizations and that organizational memory level decreases and environmental turbulence level increases the incidence of improvisation. Results support traditional concerns that improvisation can reduce new product effectiveness but also indicate that environmental and organizational factors can reduce negative effects and sometimes create a positive effect for improvisation. These results suggest that, in some contexts, improvisation may be not only what organizations actually practice but also what they should practice to flourish.
Article
Full-text available
The field of marketing strategy often makes the important assumption that marketing strategy should occur by first composing a plan on the basis of a careful review of environmental and firm information and then executing that plan. However, there are cases when the composition and execution of an action converge in time so that, in the limit, they occur simultaneously. The authors define such a convergence as improvisation and develop hypotheses to investigate the conditions in which improvisation is likely to occur and be effective. The authors test these hypotheses in a longitudinal study of new product development activities. Results show that organizational improvisation occurs moderately in organizations and that organizational memory level decreases and environmental turbulence level increases the incidence of improvisation. Results support traditional concerns that improvisation can reduce new product effectiveness but also indicate that environmental and organizational factors can reduce negative effects and sometimes create a positive effect for improvisation. These results suggest that, in some contexts, improvisation may be not only what organizations actually practice but also what they should practice to flourish.
Article
Full-text available
Recent studies have shown evidence of a positive relationship between market orientation and performance. However, some scholars have suggested that competitive environment could moderate this relationship. The authors investigate how competitive environment affects the strength of the market orientation-performance relationship and whether it affects the focus of the external emphasis within a market orientation-that is, a greater emphasis on customer analysis relative to competitor analysis, or vice versa, within a given magnitude of market orientation. Their results provide very limited support for a moderator role for competitive environment on the market orientation-performance relationship. The benefits of a market orientation are long term though environmental conditions are often transient, and thus being market oriented is cost-effective in spite of any possible short-term moderating effects of the environment.
Article
Full-text available
Although interest in organizational learning has grown dramatically in recent years, a general theory of organizational learning has remained elusive. We identify re- newal of the overall enterprise as the underlying phenomenon of interest and organ- izational learning as a principal means to this end. With this perspective we develop a framework for the process of organizational learning, presenting organizational learning as four processes-intuiting, interpreting, integrating, and institutionaliz- ing-linking the individual, group, and organizational levels.
Article
Full-text available
In recent years, a market-oriented corporate culture increasingly has been considered a key element of superior corporate performance. Although organizational innovativeness is believed to be a potential mediator of this market orientation - corporate performance relationship, much of the evidence to date remains anecdotal or speculative. In this context, a systematic framework is presented to test the postulated market orientation-innovation-performance chain. To this end, the direct causality assumption of market orientation on organizational performance is examined with Narver and Slater's (1990) market orientation framework. Moreover, a componentwise approach is taken, and an examination is conducted of how the 3 core components of market orientation affect the 2 core components organizational innovativeness en route to affecting corporate performance. Using banking industry data, innovation's mediating role in the market orientation-corporate performance relationship is empirically tested and substantiated.
Article
Full-text available
Effective organizations are configurations of management practices that facilitate the development of the knowledge that becomes the basis for competitive advantage. A market orientation, complemented by an entrepreneurial drive, provides the cultural foundation for organizational learning. However, as important as market orientation and entrepreneurship are, they must be complemented by an appropriate climate to produce a ''learning organization''. The authors describe the processes through which organizations develop and use new knowledge to improve performance. They propose a set of organizational elements that comprise the learning organization and conclude with recommendations for research to contribute to the understanding of learning organizations.
Article
In recent years, academic and practitioner interest has focused on market orientation and factors that engender this orientation in organizations. However, much less attention has been devoted to developing a valid measure of market orientation. Here we define market orientation as the organizationwide generation of market intelligence pertaining to current and future needs of customers, dissemination of intelligence horizontally and vertically within the organization, and organization-wide action or responsiveness to market intelligence. The authors describe a procedure to develop a measure of the construct. Key features of the research methodology include several rounds of pretesting, a single-informant assessment, and a multi-informant (both marketing and nonmarketing executives) replication and extension. The multi-informant results indicate that the proposed 20-item market orientation scale (MARKOR) may be best represented by a factor structure that consists of one general market orientation factor, one factor for intelligence generation, one factor for dissemination and responsiveness, one marketing informant factor, and one nonmarketing informant factor. Taking into account the informant factors, the subsequent validation tests are moderately supportive of the market orientation construct. The authors discuss methodological, substantive, and application directions for future research in light of these findings.
Article
This research addresses three questions: (1) Why are some organizations more market-oriented than others? (2) What effect does a market orientation have on employees and business performance? (3) Does the linkage between a market orientation and business performance depend on the environmental context? The findings from two national samples suggest that a market orientation is related to top management emphasis on the orientation, risk aversion of top managers, interdepartmental conflict and connectedness, centralization, and reward system orientation. Furthermore, the findings suggest that a market orientation is related to overall (judgmental) business performance (but not market share), employees’ organizational commitment, and esprit de corps. Finally, the linkage between a market orientation and performance appears to be robust across environmental contexts that are characterized by varying degrees of market turbulence, competitive intensity, and technological turbulence.
Article
Recent studies have shown evidence of a positive relationship between market orientation and performance. However, some scholars have suggested that competitive environment could moderate this relationship. The authors investigate how competitive environment affects the strength of the market orientation-performance relationship and whether it affects the focus of the external emphasis within a market orientation—that is, a greater emphasis on customer analysis relative to competitor analysis, or vice versa, within a given magnitude of market orientation. Their results provide very limited support for a moderator role for competitive environment on the market orientation-performance relationship. The benefits of a market orientation are long term though environmental conditions are often transient, and thus being market oriented is cost-effective in spite of any possible short-term moderating effects of the environment.
Article
Our understanding of how organizations process market information can be advanced substantially on the basis of principles derived from models of organizational learning. Accordingly, the author examines the extant literature on organizational learning, proposes a hierarchy of market sense making, and provides research propositions that will enhance marketers’ understanding of information processing and knowledge creation in organizations.
Article
Considerable progress has been made in identifying market-driven businesses, understanding what they do, and measuring the bottom-line consequences of their orientation to their markets. The next challenge is to understand how this organizational orientation can be achieved and sustained. The emerging capabilities approach to strategic management, when coupled with total quality management, offers a rich array of ways to design change programs that will enhance a market orientation. The most distinctive features of market-driven organizations are their mastery of the market sensing and customer linking capabilities. A comprehensive change program aimed at enhancing these capabilities includes: (1) the diagnosis of current capabilities, (2) anticipation of future needs for capabilities, (3) bottom-up redesign of underlying processes, (4) top-down direction and commitment, (5) creative use of information technology, and (6) continuous monitoring of progress.
Article
The primary purpose of this article is to clarify the nature of the entrepreneurial orientation (EO) construct and to propose a contingency framework for investigating the relationship between EO and firm performance. We first explore and refine the dimensions of EO and discuss the usefulness of viewing a firm's EO as a multidimensional construct. Then, drawing on examples from the EO-related contingencies literature, we suggest alternative models (moderating effects, mediating effects, independent effects, interaction effects) for testing the EO-performance relationship.
Book
With the publication of his best-selling books "Competitive Strategy (1980) and "Competitive Advantage (1985), Michael E. Porter of the Harvard Business School established himself as the world's leading authority on competitive advantage. Now, at a time when economic performance rather than military might will be the index of national strength, Porter builds on the seminal ideas of his earlier works to explore what makes a nation's firms and industries competitive in global markets and propels a whole nation's economy. In so doing, he presents a brilliant new paradigm which, in addition to its practical applications, may well supplant the 200-year-old concept of "comparative advantage" in economic analysis of international competitiveness. To write this important new work, Porter and his associates conducted in-country research in ten leading nations, closely studying the patterns of industry success as well as the company strategies and national policies that achieved it. The nations are Britain, Denmark, Germany, Italy, Japan, Korea, Singapore, Sweden, Switzerland, and the United States. The three leading industrial powers are included, as well as other nations intentionally varied in size, government policy toward industry, social philosophy, and geography. Porter's research identifies the fundamental determinants of national competitive advantage in an industry, and how they work together as a system. He explains the important phenomenon of "clustering," in which related groups of successful firms and industries emerge in one nation to gain leading positions in the world market. Among the over 100 industries examined are the German chemical and printing industries, Swisstextile equipment and pharmaceuticals, Swedish mining equipment and truck manufacturing, Italian fabric and home appliances, and American computer software and movies. Building on his theory of national advantage in industries and clusters, Porter identifies the stages of competitive development through which entire national economies advance and decline. Porter's finding are rich in implications for both firms and governments. He describes how a company can tap and extend its nation's advantages in international competition. He provides a blueprint for government policy to enhance national competitive advantage and also outlines the agendas in the years ahead for the nations studied. This is a work which will become the standard for all further discussions of global competition and the sources of the new wealth of nations.
Article
A holistic construal is presented to represent and test organizational theories, using examples from contemporary organizational theory and data from a recent study of wholesale distribution companies. The methodology provides a mechanism for linking theory construction and theory testing in organization research by explicitly representing theoretical and empirical concepts, nonobservational hypotheses, and correspondence rules. Unlike traditional methods used for construct validation and hypothesis testing, the methodology permits the researcher to model the extent of random and systematic error in measures of theoretical concepts and to control these sources of error when testing substantive hypotheses. Comparisons made between the holistic construal and traditional procedures show how the latter can lead to inaccurate conclusions about the status of a theory's constructs, hypotheses, and measures.
Article
In this article, the research associated with the successful development of new products is reviewed. From the research, 17 factors are described as being critical to innovative success. Despite this knowledge, however, it is demonstrated that the factors associated with success have largely failed to be translated into practical guides for action. One reason suggested for this is that the research is too generic, and that a product-specific approach based on firms’ unique “needs” for improved development is more appropriate. Using an approach recently developed via the uptake of concurrent engineering, the study concludes with a tentative framework for the application of the known success factors in new product development.
Article
Our understanding of how organizations process market information can be advanced substantially on the basis of principles derived from models of organizational learning. Accordingly, the author examines the extant literature on organizational learning, proposes a hierarchy of market sense making, and provides research propositions that will enhance marketers' understanding of information processing and knowledge creation in organizations.
Article
This study attempts to identify th emajor determinants of product innovation in the speciality chemicals industry. Results are reported from a study of 51 speciality chemical firms in South Africa. The results reveal that these firms are customer oriented, but deficiencies were uncovered with respect to product predevelopment activities, attention paid to marketing, and the use of outside technology and external scientific communication.
Article
In this article, we provide guidance for substantive researchers on the use of structural equation modeling in practice for theory testing and development. We present a comprehensive, two-step modeling approach that employs a series of nested models and sequential chi-square difference tests. We discuss the comparative advantages of this approach over a one-step approach. Considerations in specification, assessment of fit, and respecification of measurement models using confirmatory factor analysis are reviewed. As background to the two-step approach, the distinction between exploratory and confirmatory analysis, the distinction between complementary approaches for theory testing versus predictive application, and some developments in estimation methods also are discussed.
Article
This article reviews proposed goodness-of-fit indices for structural equation models and the Monte Carlo studies that have empirically assessed their distributional properties. The cumulative contributions of the studies are summarized, and the variables under which the indices are studied are noted. A primary finding is that many of the indices used until the late 1980s, including Joreskog and Sorbom's (1981) GFI and Bentler and Bonett's (1980) NFI, indicated better fit when sample size increased. More recently developed indices based on the chi-square noncentrality parameter are discussed and the relevant Monte Carlo studies reviewed. Although a more complete understanding of their properties and suitability requires further research, the recommended fit indices are the McDonald (1989) noncentrality index, the Bentler (1990)-McDonald and Marsh (1990) RNI (or the bounded counterpart CFI), and Bollen's (1989) DELTA2.
Article
Arguing that organizational memory affects key new product development processes by influencing the (1) interpretation of incoming information and (2) the performance of new product action routines, the authors introduce four dimensions of organizational memory, including the amount and dispersion of memory. Data from 92 new product development projects indicate that higher organizational memory levels enhance the short-term financial performance of new products, whereas greater memory dispersion increases both the performance and creativity of new products. They also find, however, that under some conditions of high environmental turbulence, high memory dispersion actually detracts from creativity and has no effect on financial performance. Under conditions of low turbulence, high memory dispersion promotes higher levels of creativity and short-term financial performance. These findings provide some initial evidence that knowledge is not an unconditionally positive asset and suggest that developing and sustaining valuable organizational memory may require attention not only to the appropriate levels of memory but also to managing subtle aspects of memory dispersion and deployment. These results imply that if organizations fail to understand the subtle ways in which different features of organizational memory influence product development, they may fail to harvest the full value of organizational learning.
Article
The authors seek to understand which of three different strategic orientations of the firm (customer, competitive, and technological) is more appropriate, when, and why it is so in the context of developing product innovations. They propose a structural model of the impact of the strategic orientation of the firm on the performance of a new product. The results provide evidence for best practices as follows: (1) A firm wishing to develop an innovation superior to the competition must have a strong technological orientation; (2) a competitive orientation in high-growth markets is useful because it enables firms to develop innovations with lower costs, which is a critical element of success; (3) firms should be consumer- and technology-oriented in markets in which demand is relatively uncertain - together, these orientations lead to products that perform better, and the firm will be able to market innovations better, thereby achieving a superior level of performance; and (4) a competitive orientation is useful to market innovations when demand is not too uncertain but should be de-emphasized in highly uncertain markets.
Article
The development of methods of analysis for linear structural equation models with latent variables has pro- vided researchers considerable means to construct, test, and modify theories. However, the initial analysis al- most invariably indicates the need for a revised model, either in the measurement of the latent variables or in the causal relations among the latent variables. The pur- pose of this article is to present some methods for re- specifying measurement models.
Article
Although a large body of research theoretically asserts a positive relationship between market orientation and organizational performance, fewer empirical studies demonstrate it using multiple and varied organizational performance measures. Additionally, a series of recent studies have theoretically proposed, but not empirically demonstrated, that a firm’s learning orientation is likely to indirectly affect organizational performance by improving the quality of its market-oriented behaviors and directly influence organizational performance by facilitating the type of generative learning that leads to innovations in products, procedures, and systems. This empirical study supports all of these specific contentions and the more global notion that higher order learning processes may be critical in creating a sustainable competitive advantage in the firm.
Article
"Quadrads" (double dyads) of interviews, each conducted with a pair of marketing executives at a Japanese vendor firm and a pair of purchasing executives at a Japanese customer firm, provided data on corporate culture, customer orientation, innovativeness, and market performance. Business performance (relative profitability, relative size, relative growth rate, and relative share of market) was correlated positively with the customer's evaluation of the supplier's customer orientation, but the supplier's own assessment of customer orientation did not correspond well to that of the customer. Japanese companies with corporate cultures stressing competitiveness (markets) and entrepreneurship (adhocracies) outperformed those dominated by internal cohesiveness (clans) or by rules (hierarchies). Successful market innovation also improved performance.
Article
In recent years, academic and practitioner interest has focused on market orientation and factors that engender this orientation in organizations. However, much less attention has been devoted to developing a valid measure of market orientation. Here we define market orientation as the organizationwide generation of market intelligence pertaining to current and future needs of customers, dissemination of intelligence horizontally and vertically within the organization, and organizationwide action or responsiveness to market intelligence. The authors describe a procedure to develop a measure of the construct. Key features of the research methodology include several rounds of pretesting, a single-informant assessment, and a multi-informant (both marketing and nonmarketing executives) replication and extension. The multi-informant results indicate that the proposed 20-item market orientation scale (MARKOR) may be best represented by a factor structure that consists of one general market orientation factor, one factor for intelligence generation, one factor for dissemination and responsiveness, one marketing informant factor, and one nonmarketing informant factor. Taking into account the informant factors, the subsequent validation tests are moderately supportive of the market orientation construct. The authors discuss methodological, substantive, and application directions for future research in light of these findings.
Article
The significance of the market orientation for corporate management is the subject of a long-standing controversy. This empirical study conducted in Germany, the largest European market, shows that together with other basic dimensions of management, the market orientation contributes substantially to corporate success. Indicates that popular practical measures designed to implement the market orientation within the organization may cause negative side effects in terms of corporate success. These risks could be controlled by taking a number of actions suggested in this article. Detecting these risks requires a holistic research approach to corporate management, of which the market orientation represents only one basic dimension. An integrated perspective of research, such as the one presented in this paper, represents a new approach for conducting empirical research on the question of whether the market orientation exerts an impact on corporate success.
Article
The statistical tests used in the analysis of structural equation models with unobservable variables and measurement error are examined. A drawback of the commonly applied chi square test, in addition to the known problems related to sample size and power, is that it may indicate an increasing correspondence between the hypothesized model and the observed data as both the measurement properties and the relationship between constructs decline. Further, and contrary to common assertion, the risk of making a Type II error can be substantial even when the sample size is large. Moreover, the present testing methods are unable to assess a model's explanatory power. To overcome these problems, the authors develop and apply a testing system based on measures of shared variance within the structural model, measurement model, and overall model.
Article
This research addresses three questions: (1) Why are some organizations more market-oriented than others? (2) What effect does a market orientation have on employees and business performance? (3) Does the linkage between a market orientation and business performance depend on the environmental context? The findings from two national samples suggest that a market orientation is related to top management emphasis on the orientation, risk aversion of top managers, interdepartmental conflict and connectedness, centralization, and reward system orientation. Furthermore, the findings suggest that a market orientation is related to overall (judgmental) business performance (but not market share), employees' organizational commitment, and esprit de corps. Finally, the linkage between a market orientation and performance appears to be robust across environmental contexts that are characterized by varying degrees of market turbulence, competitive intensity, and technological turbulence.
Article
The Miles and Snow typology of product-market strategy is a potential source of rich insights for developing marketing strategy. However, the drivers of performance for the Prospector, Analyser and Defender strategies have not been thoroughly studied. Using multiple measures of the entrepreneurial dimension of the Miles and Snow typology, clusters business units into the Prospector, Analyser and Defender strategy types. Analyses performance variation in the strategy types using organizational and market-level variables, and find substantial explanatory power.