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Does Organizational Learning Affect Organizational Performance with Innovation Practice as a Mediating Role in the Case of Ethiopia?
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The current ecosystem of organisations has generated a high degree of competition amongst business actors, requiring them to develop a range of business management strategies to enhance competitiveness and sustainability. This study examined the interactive effects of innovation capability and potential absorptive capacity on a firm's innovation performance. An empirical analysis was conducted on a sample of 238 firms in cultural tourism destinations in Peru. The hypotheses were tested using the partial least squares statistical method. The results reveal the positive effect of the interaction between innovation capability and potential absorptive capacity on innovation performance. Our findings expand the theoretical background to the interactive effects of dynamic capabilities in promoting innovation, while the practical contribution will be useful in developing strategies, especially for companies located in cultural tourism destinations.
Recent advancements in green and innovative technologies have resulted in a number of innovations in manufacturing operations to accelerate sustainable development (SD). Despite several benefits of green innovation adoption (GIA), the adoption rate of these initiatives is still abysmal in manufacturing organisations. To fill this gap, we have developed and validated the GIA model grounded on the unified theory of acceptance and use of technology (UTAUT), which compels organisations to implement these novel technologies. Data was collected through a survey of 516 respondents from Pakistani manufacturing industries and analysed using structural equation modelling (SEM) and the artificial neural network (ANN) approach. The deliverables of SEM and ANN approaches demonstrated that all green integrated constructs of the research model, such as performance expectancy, effort expectancy, hedonic motivation, social influence, facilitating conditions, and innovation cost, predict green behavioural intention (GBI). Besides, GBI was found to have a strong direct and mediating effect among integrated constructs towards GIA. In addition, the moderation of organisational size highlighted the differentiation among small, medium and large size enterprises. Additionally, ANN specifies the robustness and relative importance of all integrated constructs, whereas green facilitating conditions have the highest relative importance value for GIA. The proposed integrated model offers novel insights for decision-makers and suggests various implications for adopting and implementing innovative green technologies to achieve SD objectives.
Purpose
This study aims to determine the effect of organizational learning capability (OLC) on organizational innovation (OI) and identify the type of innovation that is accorded more emphasis by Ethiopian manufacturing firms.
Design/methodology/approach
This study applied an explanatory research design, and cross-sectional data were gathered through structured questionnaires from general and HR managers of 197 manufacturing firms in Addis Ababa and Oromia, Ethiopia. The ordinary least square regression method was applied to analyze the data.
Findings
The study provides empirical insights into how OLC affects OI. The findings revealed that the sampled firms have scored low mean values in terms of OLC and OI. In addition, OLC had a positive but low effect on OI and its dimensions. Because of their weak institutional support, the sampled firms tended to emphasize administrative innovation rather than product and process innovations.
Research limitations/implications
This study would have yielded better results if it was built on evidence-based data to reveal how radical or incremental OIs are, as well as how OLC and OI vary across different sectors. The theoretical and practical implications drawn from the findings are also presented.
Originality/value
There is little empirical evidence of the nexus among OLC, process and administrative innovations, especially from the perspective of developing economies. This study empirically supports the direct relationship between the constructs. In developing countries such as Ethiopia, where there are weak institutional resources and support, administrative innovation shall be emphasized in the short run.
Climate change and environmental crises are currently affecting the living environment of both people and the planet in general. This necessitates businesses to have a prompt and effective response to minimize or improve the harmful effects that lead to environmental imbalance and fulfill corporate social responsibility through focusing on transitioning to a model of sustainable economic development and encouraging the development and production of green products. This study discovers that the five factors green creativity, green dynamic capabilities, green transformational leadership, reactive green innovation, and proactive green innovation have a positive influence on and aid in the creation of exceptional green product development performance. A survey questionnaire was used to collect data for this research with the participation of more than 1000 people. These figures reveal that the participants are people who are knowledgeable about environmental issues and are actively interested in environmental protection (as well as people who have used green products). Research using software to support SPSS.20 and AMOS.24 to test the hypotheses. The study serves as a framework to help businesses better comprehend the relationship between economics and the environment with the purpose of providing valuable data and raising awareness for innovation in development models for businesses and organizations.
The adoption of green innovation is urgent for small- and medium-sized enterprises (SMEs) in the food processing industry to reduce pollution, because the large number of food processing SMEs will contribute more to environmental waste. Nevertheless, SMEs face additional obstacles in adopting innovation compared with large enterprises. This study aims to develop a green innovation adoption model for food processing SMEs to overcome the abovementioned problem and assess the effect of the model on performance. The model consists of two components, namely, organizational capability perspective and market perspective. A total of 245 respondents, who were owners or managers in their respective SMEs, were selected. Data were analyzed using structural equation modeling. The results demonstrate that pro-green leaders, green human capital, and green market orientation significantly influence green innovation adoption, which are, in turn, influenced by absorptive capacity. Furthermore, green innovation adoption and green market orientation significantly influence marketing performance. This finding is important in helping owners of food processing SMEs in formulating strategies for adopting green innovation.
Confined space workers do a wide range of tasks, many of which have a significant risk of hazardous exposure. Hence, a reliable and valid questionnaire is important in assessing the knowledge, attitude, and practice (KAP) of workers in this field. The present study was conducted to develop and validate a questionnaire that could assess the KAP for safe working in a confined space. The questionnaire went through a development and validation process. The development stage consisted of a literature review, expert’s opinion, and evaluation by experts in the field via cognitive debriefing. The validation stage encompassed exploratory and confirmatory parts to investigate the psychometric properties of the questionnaire. A total of 350 participants were recruited among confined space workers from two oil and gas companies in Malaysia. The two-parameter logistic item response theory (2-PL IRT) analysis was used for the knowledge section. Exploratory factor analysis (EFA) and confirmatory factor analysis (CFA) were used in the attitude and practice sections of the validation stage. The development stage resulted in 30 items for knowledge, attitude, and practice sections. Items in the knowledge section showed an acceptable difficulty and discrimination, as noted during the 2-PL IRT analysis. The EFA resulted in a one-factor model for attitude and practice sections, and contained 18 items, with factor loading > 0.4. The Cronbach’s alpha was 0.804 and 0.917 for attitude and practice sections, respectively. The CFA for attitude and practice sections indicated a good model fitness (Raykov’s rho = 0.814 and 0.912, respectively). All items indicated good reliability and valid psychometrics for determining KAP on safe working in a confined space.
This study aims to develop and test a theoretical model that empirically examines how green organizational culture affects organizational performance. Additionally, investigated and statistically explored the study model's and their mediating role of environmental performance and green innovation, which had previously received little attention. For the sample size of 170 respondents, a quantitative approach was used. In addition, convenient random sampling was utilized to get data from the respondents. Data was gathered from a field survey utilizing a closed-ended questionnaire from Malaysia's industrial and service organizations from Malacca, Johor, Selangor, and Kedah states. The structural equation modelling approach was used to achieve the research purpose. Green organizational culture was a significant predictor of green performance in this research. Furthermore, the findings reveal that environmental performance and green innovation fully mediate the relationship between green organizational culture and organizational performance. However, this study has several limitations that lead to future research directions. The study's most significant drawback is that the data is collected merely from Malay-sian industries, making generalization difficult. In addition, the cross-sectional data adds further restrictions to it. Nevertheless, by addressing organizational performance, which has not been empirically examined, this research adds to the current literature on green organizational culture, environmental performance, and green innovation. Furthermore, this research also presents a novel theoretical explanation for the relationships by understanding the mediating role of environmental performance and green innovation.
The prime objective of the current study is to examine the impact of knowledge sharing and employee ambidexterity on the sustainable performance of manufacturing firms operating in the KPK province of Pakistan. In addition to this, the study has examined the mediating role of employees’ ambidexterity in the relationship between knowledge sharing and sustainable performance. The final sample included 240 respondents, which represented a response rate of 68%. The study employed SEM-PLS for data analysis. The results indicate that the employee’s ambidexterity fully mediates between knowledge sharing and sustainable performance. Knowledge sharing appears as a significant determinant of employees’ ambidexterity and sustainable performance. Meanwhile, the employee’s ambidexterity also has a positive and significant relationship with sustainable performance. In the field of Management Sciences and other disciplines, knowledge sharing is considered a significant field of study. Globally, very little research has targeted these variables. This research offers conceptual highlights for developing the influence of knowledge sharing on the sustainable performance of employees particularly in the manufacturing sector.
Objective: Verify the moderating role of absorptive capacity in the relationship between organizational learning and the performance of product innovation in small and medium-sized companies (SMEs).
Methodology: The research has a descriptive quantitative approach using the survey method and questionnaires applied to 233 owners of small and medium-sized companies (SMEs). Data were analyzed using the Smart-PLS software using the structural equation modeling technique.
Originality: The research used a quantitative and descriptive approach to investigate product innovation performance in the SMEs' field. Investigations into the performance of innovation in SMEs are still a limited and little-explored field in Brazil (Manthey et al., 2017; Davila, Varvakis, North, 2019). Another prominent factor was that the absorptive capacity does not act as a moderator in the relationship between organizational learning and product innovation performance, which goes against the assumptions present in the literature.
Main results: The results showed that organizational learning influenced positively the performance of product innovation in the investigated companies, as well as organizational learning positively impacted absorption capacity. However, the moderating role of absorption capacity in the relationship between organizational learning and product innovation performance has not been confirmed in the field of study of the investigated SMEs.
Theoretical/methodological contributions: The research showed that the capacity of absorption in the investigated SMEs could not moderate, affecting the direction or intensity of product innovation performance. This fact represents a counterpoint to the previously published literature that advocates a positive relationship between AC and innovation.
Social/management contributions: The purpose of this study was to obtain more information on how SMEs absorb knowledge and transform it to improve the performance of innovations. The understanding of practices to develop the knowledge absorption capacity in SMEs is still configured as a "black box" to be explored.
Purpose
In today’s business world, competition is no longer about resources accumulated, but the emphasis is now placed more on the actual accumulation and utilization of knowledge within the organization. Attention has shifted drastically from just acquiring wealth in the organization to an era where knowledge and learning within the organization becomes more critical and important to the organizational survival and continuous growth as put forward by this paper. This paper investigated the effect of organizational learning and effectiveness on operations, employee productivity and management performance. This paper aims to add to scholarly works and knowledge on organizational learning.
Design/methodology/approach
Random and stratified sampling techniques were used. Data collection was done with the use of a questionnaire and analyzed using confirmatory factor analysis and hierarchical multiple regression.
Findings
The result from the data analyzed shows that there is a positive relationship between organizational learning and effectiveness, operations, employees’ productivity and management performance suggesting that organization learning impact is encompassing because it affects and influences the effectiveness and efficiency of all the staff at every level within the organization.
Practical implications
Organizations should strive and do everything possible to ensure organizational learning because this study is in an era where knowledge and learning within the organization are more critical and important to organizational survival and continuous growth.
Originality/value
The study demonstrates that the only way to fast-track growth in every sphere of the organization is to ensure organizational learning as it influences the effectiveness and efficiency of all the staff at every level within the organization.
Purpose
Prior research has reported the indirect implications of firm's dynamic capabilities on their competitive firm performance. Our attention now turns to open innovation since it has been confirmed to be an influential factor contributing to the superior performance of technological firms. So far there has been little research on assessing the relationship between a firm's dynamic capabilities as an antecedent of the competitive performance of the firm or investigations into the mediating role of open innovation in this relationship.
Design/methodology/approach
Drawing on the theory of dynamic capabilities, we developed a framework as a way to better understand the role of open innovation, which could then help to better explain the relationship between firms' dynamics capabilities and their competitive firm performance. Based on the empirical data of 465 firms operating in innovative and non-innovative industries, we employed structural equation modelling (SEM) to examine the research hypotheses and the path relationships in the proposed model.
Findings
The SEM analysis revealed that a firm's dynamic capabilities significantly impact its open innovation performance and that open innovation, consequently, impacts the competitive performance of the firm. Moreover, the results show that the path between dynamic capabilities and competitive firm performance is partially mediated through open innovation.
Practical implications
The findings provide practical implications and draw managerial attention to the importance of: (1) investing in innovation, (2) engaging customers in the innovation process and (3) maintaining innovation management excellence as significant antecedent factors in increasing competitive firm performance.
Originality/value
Considering the lack of empirical research in the literature on the links between dynamic capabilities and open innovation, this paper contributes to the dynamic capabilities and open innovation literature by confirming that open innovation not only mediates the relationship between these two aspects but also strengthens the effect the dynamic capabilities have on competitive firm performance. Besides, due to the significant impact of dynamic capabilities on open innovation, dynamic capabilities might be regarded as an antecedent of open innovation.
Ethiopia is one of cotton-producing countries and export part of its products to the international market. Cotton continued to be cultivated in Ethiopia for many centuries both in irrigation and rain-fed systems. The country has a huge potential to produce cotton in different agroecology that absorbs the large and young work force. Considering the suitable environmental conditions to grow the crop and the availability of cheap manpower, the Ethiopian government has given priority to develop the textile and garment sectors since the last two decades. The existing textile industries in the country are cotton-based and are in their booming stage. On the other hand, availability and quality of raw material is not satisfying the growing demand. In order to support the increasing number of textile and garment industries, supply of quality and enough raw material in a sustainable manner is crucial. Therefore, this review details information based on primary and secondary data, which are related to the country’s potential for cotton production, the characteristics of cotton, available cotton varieties, marketing systems, and cotton initiatives working in the sector. This work also tries to pinpoint multi-dimensional problems facing cotton production, marketing and quality management systems and indicates possible solutions for the betterment of the sector.
Recent studies suggest a potential relationship between intellectual capital dimensions and dynamic capabilities in achieving superior performance. However, these studies have made little effort to develop a framework for understanding this relationship, which is unsettling for managers. To examine this potential, this paper proposes and tests a conceptual model to explain how three types of dynamic capabilities—learning, integration, and reconfiguration capability—mediate the impact of intellectual capital dimensions, including human, social, and organizational capital, on firm performance. This study, using a sample of 350 Vietnamese firms in the information and communications technology sector, found that dynamic capabilities play a mediating role in the relationship between intellectual capital dimensions and firm performance. Among dynamic capabilities, learning capability has the most significant mediating effect. Furthermore, the important roles of human, social, and organizational capital are addressed due to their direct effects on performance based on resource-based view theory, as well as their indirect effect via the mediation of dynamic capabilities.
Dynamic capabilities are creating dramatic change for the industry around the world. Resource-Based View (RBV) theory and Operational capability theory are the basic capabilities of an organization under a normal changing environment. This creates a competitive advantage and organizational success in a relatively short period of time, in which the dynamic environment is not sufficient to cope with this change. Dynamic capability is a concept for managing change under this dynamic environment. Past research supports a direct positive relationship between dynamic capability and firm performance but it did not focus on the mediator variables. This research emphasizes the influences of competitive advantages and innovation capabilities as mediators of dynamic capabilities and firm performance were investigated. A cross-sectional design study was utilised and questionnaires were submitted to 326 firms to test the proposed relationships. IBM SPSS Statistics Base 26, IBM SPSS AMOS 21, and PROCESS macro 3.6 were used for statistical analysis. Results revealed that competitive advantages and innovation capabilities were partially mediated by dynamic capabilities and firm performance. Findings contribute to the literature on empowering leadership and innovative firm performance by highlighting that competitive advantages and innovation capabilities act as mediators to improve dynamic capabilities and enhance innovative firm performance.
The aim of this paper is to examine relationships among organizational learning, imitating capability, innovation and competitiveness advantage in the small and medium enterprise (SME). Furthermore, the paper also examines the mediation effect of innovation in the relationship between organizational learning and imitating capability to competitiveness advantage. Using empirical data drawn from 200 SMEs managers in Indonesia, the data were analyzed using partial least squares variance-based structural equation modeling (PLS-SEM). Results indicate that that organizational learning and imitating capability were an important determinant of organizational innovation and competitive advantage. Innovation had a positive relationship with competitiveness and has a mediating role in the relationship between organizational learning and imitating capability to competitiveness advantage. The implication of this study is that SMEs can increase their competitiveness through learning and imitating strategies that are applied simultaneously. This research is original in that it deliberately focuses on learning and imitating capability in low-technology SMEs, especially in the Indonesian context. Through learning, imitating capability, and innovation, SMEs in Indonesia can maintain a competitive position in the ASEAN free market.
Purpose
The study addresses four vital issues in the area of organizational learning (OL) literature. The purpose of this study is to elucidate the following: definition of OL, accepted dimensions of OL, antecedents and consequences of OL and the link between OL and performance and innovation.
Design/methodology/approach
The study presents a systematic literature review and concept analysis of OL, along with a focused discussion on the association of OL with performance and innovation.
Findings
After articulating multiple perspectives, OL can be defined as the process by which organizational knowledge base and insights are developed via associations between past actions, the effect of those and future operations. OL has two widely acknowledged dimensions, namely, exploratory learning and exploitative learning. Moreover, the study presented a conceptual analysis of OL along with a comprehensive framework for precursors and outcomes of OL.
Originality/value
This study probes the issues and the pattern in the literature of OL domain. The presented conceptual analysis gives direction to the future endeavours of researchers in the field of OL.
Floriculture is one of the booming sectors in Ethiopia and a good way of generating income for both the owners and the government. Besides this, different environmentalists complain about the industry because the industry uses too many pesticides and chemical fertilizers which damage the environment. The objective of this paper is to review the ecological implication of floriculture industries on surrounding environment. Environmental implication of floriculture involved the intensive use of water as well as soil, the water, and air pollution because of its intensive and toxic chemical usage and waste disposal system of the industries. The flower industry uses, 90% of groundwater resources. As planting media 40% uses soil bed, hydroponics 30% and the rest 30% also used both planting media. The waste is discharged directly to the water body by 30% of the farm, and 40% are a drain to the land. The land use change is also visible, 30% of the farm is established on local farmer's area, and 40% are established on state farm area, and the rest 30% is established by removing the swampy area. Therefore, to assure the environmental sustainability of the booming projects of the floriculture industry. Different environmental protection strategies were developed and recommended to improve the problems. As wastewater recycling, Wastewater treatment, Vegetation Buffer preparation, integrated pest management (IPM) practices, Health, and safety training to workers, and application of Strategic Environmental Assessment/SEA/ are good practices to minimize the impact and For better, sustainable and conducive environment sake.
Purpose
This paper aims to analyze the influence of organizational learning (OL) and service innovation (SI) on organizational performance of knowledge-intensive business services (KIBS) and examine the mediating role of SI.
Design/methodology/approach
Hypotheses were tested using the theoretical OL model of knowledge acquisition, distribution, interpretation and organizational memory (Huber, 1991; Lopez, Peon, & Ordas, 2005; Jiménez-Jiménez & Sanz-Valle, 2011), using structural equation modeling partial least squares analysis of a survey data set of Brazilian architectural firms.
Findings
Findings suggest that OL is significantly linked to SI and so is SI to organizational performance. However, neither the direct relationship between OL and organizational performance could be verified, nor the mediating effect of SI.
Practical implications
These results can offer KIBS managers insights that suggest that OL alone does not guarantee a significant impact in organizational performance, but it is a starting point for achieving SIs, that lead to performance improvement and competitive advantages.
Originality/value
This paper contributes to the knowledge production in the following ways: to the understanding of the relationship between OL and SI and its effect on organizational performance, traditionally overlooked in the literature; to the study of SIs, considering the importance of the service sector; and to the study of innovation processes in architectural firms, a sector traditionally understudied, because of the focus on large construction firms.
Purpose
This paper aims to investigate the role of dynamic capabilities in the Information Technology (IT) Governance view framework and explores the relationship between three domains of IT governance (Strategy, Management and Operations) and firm performance.
Design/methodology/approach
In this study, the authors used a mixed methods approach and using a survey instrument and its validation with interviews, to collect data from 134 successful European SMEs in the multi-country setting of Belgium, Bulgaria, Denmark, Spain and the UK.
Findings
The findings show that various IT governance mechanisms function as dynamic capabilities and are directly associated with firm performance. The impact of each mechanism is different.
Originality/value
This study highlights the relationship between IT governance acumens and organisational performance. It contributes to the field of IT Governance Framework in management, and the results may be generalisable to wider economies and different organisation types.
Purpose
The purpose of this paper is to empirically evaluate the mediating role of learning capability on the relationship between technological capability, relational capability and small and medium enterprises (SMEs) performance in developing economy of Africa.
Design/methodology/approach
A quantitative survey design was employed to collect the data from owner/manager of manufacturing SMEs in Nigeria. Partial least square structural equation model was used in the evaluation of both the measurement and structural models to determine the reliability and validity of the measurement and test the hypotheses, respectively.
Findings
The statistical result indicates a positive relationship between technological capability, learning capability and SMEs performance. Equally, relational capability significantly and positively relates to SMEs learning capability. However, relational capability negatively relates to SMEs performance, while technological capability also negatively relates to learning capability. Furthermore, learning capability mediates the negative relationship of relational capability and SMEs performance to significant positive relationship, while it does not mediate the relationship of technological capability and performance.
Research limitations/implications
The analysis of this study is restricted to only resource-based view and dynamic capability theory. Data of the study were collected once a time on a self-reported technique. The study contributed significantly to the body literature on technological and relational capabilities and performance. It also demonstrated the need for SMEs manager to recognize and appreciate the roles of these strategic capabilities in achieving sustainable competitive position.
Practical implications
Through relational capability SMEs develops efficient collaborative relationship to acquire new techniques, knowledge. This is specifically, essential for SMEs firms from less developing and emerging economies as they are lagging behind at the global competitive platform, and that the possession of specific advantage locally may not be adequately enough to help penetrate the global markets. Similarly, technological capability enable firms to identify acquire and apply new external knowledge to develop operational competencies which may lead to the attainment of superior performance.
Social implications
Government policies and programs designed to support technological development and innovation must be adjusted to consider the peculiar nature of SMEs firms in terms of technology and innovativeness that enhances competitive position and performance.
Originality/value
This study empirically examined the relationship of technological and relational capabilities and the SMEs learning capability and performance.
This study uses the perspectives of dynamic capabilities and ambidexterity to investigate the direct effect of the development of an organization’s explorative and exploitative capabilities on organizational tensions and performance. We employed a sample of high-tech Taiwanese firms to test our hypotheses and surveyed the informants’ knowledge about their companies. We sent out 1000 questionnaires and received 234 valid responses, yielding a 23.4% effective response rate. The results also indicated that the consideration of incorporating balanced and combined dimension ambidexterity would benefit high-tech firms and help them facilitate higher performance. In summary, based on the results of previous studies, this study divided dynamic capabilities into exploitation capabilities and exploration capabilities, and divided ambidexterity into combined and balanced dimensions, so as to redefine the relationship between dynamic capabilities, ambidexterity and organizational performance from the perspective of tension, thereby enhancing the connotations of dynamic theory.
Background and purpose: The recent literature established that human resource development (HRD) is significantly related to organizational effectiveness (OE). In rapidly changing environments, the organizations should strive to address the shifts in the environment and cope with markets conditions through developing dynamic capabilities, in return, enhance organizational effectiveness. The main purpose of this study is to examine the mediating role of dynamic capabilities on the relationship between human resources development and organizational effectiveness in the Iraqi public universities context.
Design/Methodology/Approach: Data were collected through an online questionnaire survey from 215 employees executive and non-executive employees working in the selected public universities in Iraq. Structural equation modeling (SEM) was employed to test the proposed research model.
Results: The analyzed data supported all the hypothesized relationships of the study. This study finds that HRD practices have a significant influence on organizational effectiveness and dynamic capabilities. Further, dynamic capabilities significantly influence on organizational effectiveness. Also, the study empirically supports the mediating effect of dynamic capabilities on the relationship between HRD practices and organizational effectiveness.
Conclusion: In the literature, there is still a lack of how HRD practices impact on organizational effectiveness through the mechanisms of dynamic capabilities. Therefore, this research contributes to the literature by pointing out the mediating role of dynamic capabilities on the relationship between HRD and organizational effectiveness. Based on the existing literature and empirical results, the study provides the theoretical and practical implications which are further discussed in detail.
Purpose：Although many scholars have found that exploration and exploitation
innovation have significantly positive effects on firm performance, it remains to be
resolved whether the relationship between the two is constant at different stages of
enterprise development and in different competitive contexts. The paper is aimed at
clarifying the effect of exploration/exploitation innovation on firm performance in
start-ups, and in particular, the mediation role of entrepreneurial orientation (EO) and
the moderation role of competitive intensity are tested to explore their disturbing
effects on above relationship.
Design/methodology/approach：We construct a theoretical framework to analyze and
verify the relationship between innovation, EO and firm performance. The hypotheses
of this paper are put forward by theoretical inference. And to test our hypotheses, 143
questionnaires are collected from technology-oriented start-ups in Hefei National
University Science Park.
Findings: The empirical results show that, consistent with previous findings,
exploration innovation and exploitation innovation both have positive impact on firm
performance; meanwhile, the EO partially mediates the relationship between both
innovations and firm performance. What cannot be ignored is that the competition
intensity plays a moderation role between the EO and firm performance.
Originality/value: Our findings reveal that the impact of innovation activities on
corporate performance has been disrupted by EO and competition intensity in start-ups. The work of this paper deepens our understanding of the relationship
between innovation, EO, external environment and firm performance, which is of
guiding significance to the entrepreneurship management of emerging economies.
Construction small and medium-sized enterprises (SMEs) face different challenges pertaining to their competitiveness and capabilities. Inter-organizational learning (IOL) is a key activity that contributes to organizational development and long-term survival. The purpose of this paper is to investigate whether IOL has an influence on SMEs performance. A questionnaire survey was used to collect data from 81 construction SMEs in Malaysia. Partial least square-structural equation modeling (PLS-SEM) was used to analyze the data. The results showed a strong and positive relationship between IOL and SME performance. Based on the findings, a new model has been proposed to explain how performance can be enhanced through three activities of IOL, namely internalization, externalization, and intra-organization learning. Enhancing the performance of SMEs is essential for the performance of the whole construction industry and this paper has contributed toward this main goal.
The objective of this research is to understand the link and evolution between the concepts of knowledge management, organizational learning and memory. Seeking a better clarification of concepts, discussing them in the theoretical field, understanding their evolution in the last decades. A systematic literature review was developed by synthesizing concepts. From two databases, a total of 2511 scientific articles between 1960 and 2017 were analyzed, divided into two studies. Organizational learning is seen as a dynamic process based on knowledge and is translated through various levels of activity. The ability of an organization to use and leverage the knowledge is heavily dependent on its Human Resources, which are effectively who creates, shares and uses that knowledge. Knowledge management is seen as the management of the processes of creation, storage, access, and dissemination of the intellectual resources of an organization. Organizations must consider your main objective as increasing the capacity of individuals and organizational knowledge enhancers. Managers should pay special attention to the more general knowledge associated with the context of the firm, as it supports the introduction of various types of innovation. Knowledge can be encouraged by a set of collaborative practices of HRM. We can consider organizational learning as a process and organizational memory as the corresponding output. Thus, establishing the relationship that the organizational memory is a consequence of organizational learning.Key concepts that can be used in the new future research are summarized, highlighting its application and diagnosis for organizations, fomenting the strategic decision-making. JEL classification: M1, M15, Keywords: Knowledge management, Organizational learning, Memory, Systematic literature review
Purpose
The purpose of this paper is to examine organisational learning as a mediator among small-scale manufacturing enterprises (S-SMEs) which comprise the majority of economic activity in an emergent/developing economy. This study offers further understanding regarding the mediating role of organisational learning in developing world economies, due to its potential regional influence.
Design/methodology/approach
A cross-sectional survey of Indian S-SMEs was undertaken from the District Industrial Center. The study employed a systematic sampling technique to contact owner/managers. Overall, 204 S-SMEs owners/managers participated in the study and 192 usable survey instruments were received.
Findings
The study offers novel insights to the following questions. First, the factors that prompt entrepreneurial orientation to achieve superior business performance, i.e. the antecedents of entrepreneurial orientation? The results reveal competitor orientation is an antecedent of entrepreneurial orientation that leads to an S-SME’s business performance. Second, the outcomes of entrepreneurial orientation, i.e. the consequences of entrepreneurial orientation? The study reveals organisational learning and business performance are the corollary of entrepreneurial orientation. Third, the examination of whether organisational learning mediates the relationship between entrepreneurial orientation and business performance? The findings found the effects of entrepreneurial orientation on business performance are, in part, mediated by organisational learning.
Research limitations/implications
Three study limitations are recognised. First, other strategic orientations, including technology orientation, production orientation and selling orientation are not included. Second, other constructs have a potentially significant relationship with market and entrepreneurial orientation, such as organisational capabilities, innovation and social context, were not considered. Third, the study is industry-sector specific and does not consider alternative sectors which also may play a potential role in economic development.
Originality/value
This study enhances the existing S-SME literature by identifying factors contributing to entrepreneurial orientation and its repercussions on business performance. For S-SMEs it adds credence to the role played by organisational learning in mediating the link between entrepreneurial orientation and business performance which potentially encourages owner/managers to dedicate increased time and resources towards creating and maintaining a conducive learning environment. The results support entrepreneurs in acknowledging the importance of competitor orientation during the emergence and development of entrepreneurial orientation, specifically in emerging economy contexts.
Starting from the findings of specialized studies on knowledge management in the field of biotechnology, this paper aims to present the factors that underline sustainable performances of Romanian biotechnology organizations. Particularly, descriptive analysis of these factors has outlined a picture of the current situation of biotechnology in Romania. The design of an exploratory knowledge management model for organizations in the biotechnology sector was achieved and validated through a panel data model. Starting from a model of growth based on productivity, capital inflow, and human capital, three statistical hypotheses were validated by a time series data panel regression model using EViews 9.0 software. The data were collected for the enterprises active in the field of biotechnology for a period of nine years. The paper highlights the fact that the economic performance of biotechnology organizations is determined by the flow of capital, productivity, and the workforce. Knowledge-based growth strategies are essential in the econometric model presented. Nevertheless, in terms of knowledge management strategies, the sector has not reached its maturity, and full sustainability is not a norm.
In recent years, crowdsourcing has emerged as a promising open innovation strategy for firms searching for solutions to technical problems. Previous research has shown that crowdsourcing can provide quick access to distant knowledge at relatively low costs, when compared to other forms of innovation governance such as internal sourcing or contract research. Recent studies, however, indicate that firms differ considerably in their ability to reap the benefits from crowdsourcing. Drawing upon recent work on the microfoundations of capabilities, we hypothesize how three types of lower‐level organizational elements may affect gains from crowdsourcing: informal organizational roles, formal organizational roles, and knowledge processes. Following a mixed‐method research design and drawing on rich quantitative and qualitative data, we find that informal and formal organizational roles work through processes of knowledge articulation and codification in developing a firm's crowdsourcing capability. By going beyond the direct effects of the three antecedents, our research sheds light on the process of capability development for open innovation.
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This study investigated the question of whether environmental sustainability influences firm performance. Firm performance, a multidimensional construct, was researched utilizing innovation, ecological and social measures on the premises of SMEs in South Africa. Thus, the study hypothesized that environmental sustainability is positively and significantly related to innovation, ecological and social measures of firm performance. A cross-sectional research design was adopted in this study to test the abovementioned hypotheses. A total of 208 self-administered questionnaires distributed to SME owners and managers were analyzed utilizing structural equation modelling (SEM) and Amos Version 24 software. Primarily, the study established that environmental sustainability was significantly and positively correlated to all three measures of firm performance used in this study. Thus, the inferences from the findings suggest that environmental sustainability practices contribute positively towards firm innovation, ecological and social performances. The findings of this study greatly contribute towards the practice and theory of small businesses and firm performance by providing a more specific and streamlined perspective for approaching firm performance.
To date, no standard scale exists for measuring dynamic capabilities. This limits the comparability of empirical findings and impairs data-based theory development. This article presents the development of a 14-item scale based on Teece’s (2007, Strategic Management Journal, 28, 1319–1350) well-established dynamic capability framework, assessing sensing, seizing, and transforming capacities. It describes the rigorous empirical scale development procedure comprising the steps of (i) item generation, (ii) scale purification (n = 269), and (iii) scale confirmation (n = 307). The scale shows high reliability and validity and is a solid predictor of business and innovation performance.
Purpose
The purpose of this study is to empirically investigate the mediating role of knowledge management (KM) in the linkage between organizational factors, namely, organizational culture (OGCUL) and leadership and management support (LMS) and innovation in medium- and large-scale manufacturing firms in Ethiopia.
Design/methodology/approach
A sample of 200 firms has been used to gather data using simple random sampling and to test the proposed hypotheses. Structural equation modeling and cross-sectional design were used to analyze the data using LISREL 8.80 SIMPLIS program software tool.
Findings
Organizational factors (i.e. OGCUL and LMS) are positively associated with KM and innovation. KM constructs, namely, knowledge sharing, knowledge conversion and knowledge storage, have a significant positive influence on innovation. Knowledge sharing mediates the relationship between organizational factors and innovation.
Research limitations/implications
This study has three potential limitations: first, this study is based on a cross-sectional research design. Future research should include longitudinal design to get in-depth insights into the causal inferences. Second, only a few Ethiopian medium- and large-scale manufacturing firms were included in the sample. As a suggestion for future research, other researchers can include small-scale enterprises using large sample sizes and should examine the effects of organizational factors, KM and innovation across different industries. Finally, this study has only focused on investigating the mediating role of knowledge sharing between organizational factors and innovation. Future research should test the mediating role of the KM process and its constituents (knowledge acquisition, knowledge conversion, knowledge sharing and knowledge storage) between organizational factors and specific aspects of innovation to gain a full understanding of the critical role of KM in organizational innovation.
Practical implications
The findings of this study would serve as a guide for policy-makers and managers of manufacturing firms in developing countries in the formulation of policies and long-term strategies. It may also provide a better understanding of the causal relationship between organizational factors, KM and innovation, which in turn has value to directors and managers in manufacturing firms in developing countries as a reference for building a good OGCUL, serving as practical guidance for effective leadership and providing organizational or management support. Specifically, the findings would have the following practical implications: first, firms need to have a combination of KM processes (such as acquisition, storage, sharing and conversion). In practice, developing countries such as Ethiopia have based their innovation strategy on knowledge and technology acquisition through encouraging foreign direct investment. It is not in doubt that Ethiopia has been benefiting from the strategy as a lot of foreign companies have opened their subsidiaries in the country. However, in the authors’ view, more emphasis on knowledge acquisition strategy would not take a firm a long time to sustain its innovative activity because it is likely available to firms operating in the same industry, as well as it may hurt a firm’s competitive advantage. In addition, by its nature, knowledge may not be retained for future use; it may expire soon. Second, the current highly impulsive and rapid change in the business environment changes the way firms have to operate and deliver products or services. Knowledge (both tacit and explicit) is a resource that can provide a competitive advantage if used well for the intended purpose. In real practice, firms often face challenges in determining where to get knowledge from and how to value or manage it. Besides, knowledge can be obtained from three sources: knowledge can exist in individuals’ minds (skills, experience, ideas and insight); knowledge can dwell in a group, which we can call collective knowledge (a team of scientists or researchers); and knowledge can be embodied in an organization's systems, tools, procedures, policies, etc. Knowledge cannot be a valuable resource unless it is obtained and used in designing or producing a product or service. To integrate knowledge with business strategies, there should be a platform or framework that helps to manage it properly. Firm managers, policy-makers and other concerned bodies would consider the three sources of knowledge to foster innovative activities and obtain a competitive advantage. In addition, the authors recommend more emphasis be placed on firm-specific factors (such as OGCUL, leadership, management support and KM) to enhance the innovative capacity of a firm. Finally, the most critical issue to be raised while designing an innovation strategy would be employees’ willingness and passion to collaborate with others to develop new ideas, share ideas or implement policies. As knowledge resides in individuals’ minds, the knowledge holder should have a passion to share it with those working with him or her. In practice, knowledge sharing depends extremely on the passion and voluntariness of the two parts: knowledge provider and receiver. Therefore, firm managers would design a platform on how to motivate individuals to share their skills, experience and ideas with others through providing incentive packages, punishment and commitment. In this regard, the authors believe that the results would help individuals who are in the position to manage or regulate the manufacturing sector in designing innovation policies, KM policies or technology management policies and business strategies.
Originality/value
This study provides new empirical insight into the relationships between organizational factors (such as OGCUL and LMS), KM and innovation in a large sample of firms. To date, the empirical research on these relationships has been mainly limited to descriptive case studies (Chen and Huang, 2009; Zack et al., 2009; Donate and Guadaumillas, 2011), and there is thus a lack of empirical evidence with large samples of firms. Furthermore, there is a scarcity of studies investigating the relationship between organizational factors, KM and innovation in developing countries, especially in Ethiopia. This paper intends to fill this gap and nurture future research studies in the area.
Purpose
Innovative organizations are increasingly facing challenges in a dynamic market to address corporate social responsibility (CSR) issues; however, research on how organizational learning (OL) contributes to organizations’ social responsibility and innovation remains sparse. This study aims to bridge the gap in previous research and examines how OL and dynamic capabilities (DCs) act as drivers of CSR performance (CSRP) and innovation performance.
Design/methodology/approach
This study is survey-based and uses time-lagged, multisource data from 151 pharmaceutical industry-related companies in Iran. Structural equation modeling was applied to test the validity of the measurement model and hierarchical regression was used to test the key hypotheses.
Findings
DCs mediate the relationship between OL and CSRP. Moreover, CSRP significantly mediates the relationship between OL and innovation.
Originality/value
Drawing on the perspective of DCs, this research is among the first to offer new insights in a new context on what antecedent conditions lead to the successful implementation of organizational CSRP and how CSRP would, in turn, lead to subsequent innovation performance improvement.
Purpose
This study aims to shed light on the lack of understanding and previous mixed results regarding why and how some internationalised firms take advantage of host-home country similarity (HHS) while others do not.
Design/methodology/approach
Direct and mediating hypotheses are examined through an empirical investigation of 156 CEOs in internationalised Spanish companies, using structural equation modelling validated by factor analysis.
Findings
The results suggest that exploitation (EI) and exploration (ER) constitute important learning mechanisms that impact on the liability of foreignness when internationalising a business. In particular, the positive influence that HHS has in international firm performance (IP) depends on both exploitative and exploratory learning.
Practical implications
This research adds insights into the importance of two of the main components of organisational learning (i.e. ER and EI) as mediators of the HHS and IP relationship, which can help senior managers or business owners make consistent decisions by matching potential international market locations with firm learning factors.
Originality/value
This study clarifies contradictory theoretical assertions and mixed empirical results about how HHS impacts on international performance. In particular, by responding to recent calls for research, this study has shown that organisational learning is a key component in the aforementioned link where ER and EI positively mediate this relevant relationship.
Purpose
The purpose of this study is to identify the effects of market turbulence as a moderating construct in relation to effective organizational learning on the company’s innovation and performance as well as on the antecendent of facilitative leadership competence.
Design/methodology/approach
This study used a cross-sectional and correlational research design. The period of data collection took place between March and May 2019 for three months. The questionnaires were distributed to 350 people who were randomly selected in the metal small and medium enterprises in Tegal district, Central Java, Indonesia. Analysis was conducted through the analysis of structural equation modeling (SEM).
Findings
Facilitative leadership competencies have a significant effect on effective organizational learning. Facilitative leadership competencies can support the learning climate and develop mechanisms for transferring learning from individuals and teams into organizational knowledge and experience. There is also an influence of organizational learning on the company’s innovativeness and the company’s performance. Contingency factors can be applied in situations that are always experiencing a change in turbulence
Research limitations/implications
This study contributes to the deepening of understanding of facilitative leadership concept and highlights the importance in the success of building effective learning, as well as its relationship with innovation performance and business performance.
Practical implications
This finding helps the management to understand the market forces and their impact on the company’s innovation and performance. In this case, the leader plays an important role in fostering a culture of learning, changing the habits and ways of working so that they are ready to support the organizational culture of learning.
Originality/value
Developing a mechanism for transferring learning into organizational knowledge is very important because organizational learning is believed to be an important strategy in an organizational learning process. This is particularly true in a rapidly changing environment, as it can create business resilience.
Purpose
The direct impact of organizational learning (OL) on organizational performance has been studied over the past two decades. However, how OL contributes to organizational innovation still remains under-researched. Based on the knowledge-based view of the firm and dynamic capability theory, we developed a theoretical framework in order to empirically examine how OL offers organizations the essential tools for creating dynamic capabilities (DCs), which pave the way for innovation performance (IP).
Design/methodology/approach
The authors apply a time-lagged, multisource and survey-based research designed to test the proposed model in the pharmaceutical industry where knowledge is a source of innovation. The data collected from companies operating in such an industry were analyzed by utilizing hierarchical regression analysis to explore how OL could lead to IP through DC.
Findings
The results indicated that OL is positively, significantly associated with DCs, as well as its dimensions of learning, integrating and reconfiguring capabilities. The findings showed that these capabilities are significant predictors of innovation performance. In addition, the findings revealed that innovation culture significantly moderates the relationship between DCs and innovation performance.
Originality/value
By dedicating more time and resources, managers can reinforce dynamic capabilities as a strategic tool to generate new knowledge and distribute it across the organization, which can go a long way toward boosting innovation performance in the pharmaceutical industry. This study offers researchers and practitioners invaluable insights into how effective OL can enhance firm-level innovation performance through dynamic capabilities.
Dynamics capabilities (DCs) is a relevant approach for understanding performance in the for-profit environment. However, due to the lack of studies, we cannot say the same about the nonprofit environment. Based on this potential gap, this study validates a scale to measure the DCs in the context of the Nonprofit Sector and also verifies the relationship of DCs in the performance of these organizations. Data from a survey with 169 Brazilian nonprofit organizations were analyzed through the application of confirmatory factorial analysis. The results suggest that adaptive, absorptive, mobilizing, and innovative capabilities comprise the DCs of nonprofit organizations, and the performance of these organizations can be measured by the dimensions of control and growth mechanisms.
In addition, DCs have a direct and significant effect on the performance of the studied organizations.
Purpose
The purpose of this paper is to understand the impact of dynamic capabilities (DC) (in the view of exploration and exploitation) on competitiveness and performance, considering the mediating role the innovation capability (IC) and branding capabilities (BC)on competitive advantage and firm’s performance and the moderating role of entrepreneurial orientation (EO).
Design/methodology/approach
This investigation proposes a theoretical model tested using structural equation modelling (SEM). Multi-group analysis was performed to understand the moderating role of. A questionnaire survey was developed to explore the relations between DC and innovation variable. For this study, 387 valid questionnaires were collected from a sample of Portugal SME’ firms. A 90-item questionnaire which consists to study the relationships among all the variables.
Findings
The results show that exists a positive direct and indirect influence of DC on competitive advantage and performance variables and mediating impact the IC and BC.
Research limitations/implications
This study has some methodological limitations affecting its potential contributions. As a cross-sectional study that captures one image in time, its ability to identify strict causality between variables is limited. Furthermore, the results are based on log collected from a key respondent, rather than broader actual data. The results are restricted to one country, Portugal. Some variables, such as ICs, may play a different role in other countries. Future research should initially target different countries. Such research could then test the generalizability of the results.
Practical implications
This study has important implications for the managers. It highlights the necessity of firms to develop superior strategic orientation of all their members and to invest in better resources and consequently superior capabilities as a way of achieving high levels of firm performance. Another implication from the study is that the firms should develop their marketing programs by focusing on developing innovativeness.
Originality/value
This study contributes to the understanding of the indirect and direct impact of exploration and exploitation variables, and the mediating role of ICs and BC on the competitive advantage and performance and the moderating effect of EO.
Slack resources are essential to organizations’ capacity to strategize and explore new opportunities. However, due to causal ambiguity and temporal separation, there is no consensus about the specific effects on long-term organizational performance, nor the processes by which the effects manifest themselves. Two forms of slack are reported as having an impact on the performance and competitiveness of firms – low-discretion slack and high-discretion slack. This study examines the varied relations between these two forms of slack and long-term performance – growth, by investigating the mediating effects of technical innovation capabilities. A survey was conducted on 217 Chinese firms, with data analysed using structural equation modelling to test the hypotheses. The empirical results show no relation of low-discretion slack, while high-discretion slack has a significant association with growth performance via both product innovation capability and process innovation capability.
Purpose
The purpose of this paper is to explore the relationship between organizational learning capability and business performance of Vietnamese firms.
Design/methodology/approach
Based on the literature review, the authors proposed five hypotheses covering the relationships between different dimensions of organizational learning capability and business performance. Data collected from a survey of 160 Master of Business Administration students working in different firms in Vietnam were analyzed to test the proposed hypotheses.
Findings
The results confirmed that organizational learning capability has positive effect on business performance. Moreover, two out of four dimensions of organizational learning capability are having positive relationship with business performance (management commitment to learning and “knowledge transfer and integration”).
Practical implications
The paper gives some suggestions for firms to improve their business performance through enhancing organizational learning capability.
Originality/value
This study provides important insights into the recognized yet under-researched relationship between organizational learning capability and business performance and confirms that organizational learning capability has a positive impact on business performance in Vietnam context.
Purpose
The purpose of this paper is to introduce a comprehensive, delineated and integrated conceptual model which includes organizational learning capability, innovation and organizational performance (OP). Then, an empirical investigation is undertaken to test the relationships among the proposed study model variables.
Design/methodology/approach
In total, 274 questionnaires were completed and returned. Statistical techniques employed included confirmatory factor analysis to examine the validity of the measurement model, and structural equation modeling to test the hypotheses.
Findings
The findings of this study suggest that OLC influences innovation and innovation affects OP. Finally, the results show that OLC affects OP indirectly through innovation (mediator).
Research limitations/implications
Future research should pay more attention to the influence of different mixture (variables) of influences on innovation and also examine other consequences of introducing innovation in organizations. In addition, more empirical papers supporting (or rejecting) the results in different contexts would be welcomed, especially longitudinal studies.
Practical implications
The results of this study help managers to ascertain the managerial practices that can be employed as well as determine the level of effort and resources necessary to enhance OLC. Additionally, managers should shed additional light on the innovation’s positive implications for OP.
Originality/value
This study focuses on the conceptualization of OLC and effects of these capabilities on innovation. It conceptualizes innovation as a multidimensional construct and tests its relationship with OP. Finally, the relationship between learning capability and OP, although implied, needs to be addressed empirically in the research literature, an objective that this study tries to achieve.
Purpose
The purpose of this paper is to investigate the influence of customers’ environmental concerns, customers’ perceptions of a hotel’s environmental practices and of the hotels’ environmentally friendly images, on customers’ willingness to pay a price premium to stay at environmentally friendly hotels.
Design/methodology/approach
The theoretical framework comprises both social identity theory and value-belief-norm theory. The data were collected through a survey of 454 customers staying at eco-friendly hotels in Spain. The research model is tested by using a structural equation modelling approach.
Findings
The findings illustrate that customers’ environmental concerns have a greater explanatory value on their willingness to pay a price premium than do their perceptions of the hotels’ environmental practices. Furthermore, these causal relationships are similar in magnitude when considering the mediating effects of the hotels’ eco-friendly image and the environmental practices.
Research limitations/implications
The empirical findings provide managers with a better understanding of how customers’ environmental concerns and their own sense of identification with environmentally friendly hotels influence customers’ behavioural intentions towards willingness to pay a premium.
Originality/value
The paper contributes to the literature by highlighting those cognitive processes that influence the customers’ willingness to pay a price premium to stay at environmentally friendly hotels. Hence, the study provides valuable information to hotel managers.
Building on the capabilities’ hierarchy concept, a model of the effect of organizational learning on hotel performance is proposed and tested in this study. Data was collected from 240 managers in the hotel industry of United Kingdom and Pakistan via survey. The results revealed strong direct inter-relation between different level of capabilities and an indirect relation between organizational learning and performance through these capabilities. This paper makes theoretical contributions to management as well as hospitality and tourism research by generating an integrative and unifying framework for an organizational learning performance relationship, clarifying capabilities inter-relationships and empirically revealing the exact way these capabilities enhance performance. Also, it has practical implications for hotel managers’ understanding on the development and use of capabilities as a hierarchy in enhancing their hotel performance.
The success of service innovations is intertwined with firms' capabilities to coordinate, orchestrate, and collaborate with a set of external actors. Adopting an ecosystem and dynamic capability perspective, this article examines ecosystem-related capabilities for developing service innovation in product-centric firms. The research uses a mixed-methods approach focusing on the energy utility sector: (1) a survey with 133 managers from 28 firms that allows a comparison of ecosystem-related capabilities between firms with high and low service-innovation intensity; and (2) a complementary interview study with 8 of these firms that have high service-innovation intensity, allowing a detailed understanding of the relevant ecosystem-related capabilities to be developed.
From the data we derive a set of 12 ecosystem-related capabilities for service innovation related to the sensing, seizing, and reconfiguring of external resources. The results indicate that firms with high service-innovation intensity possess significantly stronger ecosystem-related capabilities than firms with lower service-innovation intensity. Those firms also seem to sense and seize external opportunities and resources to a greater extent in order to reconfigure their service-related ecosystems. The findings also show that successful service innovators consider not only value-adding partnerships, such as suppliers and customers, to be relevant for service innovation, but also relationships with non-direct value-adding ecosystem stakeholders (e.g., local governments, communities, legislators).
Open innovation as driver of organizational performance of small and medium-sized enterprises (SMEs) has received relatively little scholarly attention. Drawing upon the resource-based view and the knowledge-based view of firms, we examined antecedents and outcome of open innovation in SMEs. We collected multisource data from 404 SMEs and used structural equation modeling to test the hypotheses. Our study suggests that top management knowledge value and knowledge creating practices influence open innovation, which, in turn, influences organizational performance. Results of the study are discussed in the light of previous studies and suggest implications for theory and practice of open innovation.
Purpose
With the materialization of literature on strategic change, it is clear that organizational learning and organizational dynamism have been among the most notable areas of study. The purpose of this paper is to extend the literature on strategic management by examining the mediating effects of organizational learning and the moderating role of environmental dynamism on the relationship between strategic change and firm performance.
Design/methodology/approach
A survey questionnaire was administered to 650 respondents who were both corporate and business-level managers of 22 main deposit money banks (commercial banks) and their branches across the country. In total, 630 questionnaires were returned and 587 were used after following all the processes of data preparation. Path analysis was employed to test the hypotheses in this study using Smart PLS 3.
Findings
The study found a significant mediating effect of organizational learning on the relationship between strategic change and firm performance. Although no significant moderating role of environmental dynamism was found, the directions of the path coefficients are consistent with the hypothesis. All the relationships between the constructs are significant.
Research limitations/implications
It is paramount for managers to understand the type of environment and learning that fits diverse kinds of strategic changes in order to improve firm performance. It is evident that changes that are not proactive and generative organizational learning may seem dangerous for a firm. However, organizations should learn to incorporate the change to be able to compete in a dynamic competitive environment.
Originality/value
Prior studies on strategic change, environmental dynamism and organizational learning have mainly focused on manufacturing and construction industries in the developed countries, but less has been done in the service sector, particularly the banking organizations in developing countries. Nigeria is one of those countries. Therefore, this study focuses on the links between strategic change and firm performance, moderating role of environmental dynamism and the mediating effect of organizational learning within the context of the Nigerian deposit money banks.
In response to greater environmental awareness among stakeholders, companies have become increasingly interested in practices such as eco-innovation. Despite the expanding literature on eco-innovation, scholars have so far paid little attention to the study of eco-innovation and its impact on business sustainability, particularly considering the mediating effect of service innovation capability. To fill this research gap, this study extends the concepts of green business by investigating an original conceptual framework, which proposes that the capacity for service innovation has a mediating effect on the relationship between sustainable organizational performance and environmental innovation. This conceptual framework is subjected to empirical testing, implemented through a survey involving 95 Malaysian firms which use green technology. Data is collected through both postal and online questionnaires and analyzed through structural equation modeling using partial least squares. Respondents for this paper were identified using the directories of MyHijau (2013) and the Malaysia External Trade Development Corporation, 2014. The results suggest that: (1) eco-innovations unlock better sustainable performance; (2) service innovation capability has a partially significant positive mediating effect; (3) service innovation capability ultimately benefits companies by allowing them to differentiate through an emphasis on value creation; (4) service capability can also act as a business strategy to create barriers to new entry by competitors. Thus, eco-innovation and service innovation capability tend to represent significant intangible resources and enable an organization to achieve long-term objectives, competitive advantage and business sustainability. To date, this is the first study relating eco-innovation, service innovation capability and sustainability performance in the Malaysian corporate context and using a specific sample of companies that make use of green technologies.
Purpose
The purpose of this paper is to identify how organizational learning processes influence perceived organizational performance and examine the moderating roles of organizational justice and trust in managers therein.
Design/methodology/approach
This study develops a theoretical model to exhibit how knowledge acquisition and transfer activities influence perceived organizational performance. Data were collected from 515 respondents and analyzed by PROCESS macro for SPSS.
Findings
This study found that feedback learning flows are strongly mediated between learning stocks and organizational performance. It also found that organizational justice moderates the effect of learning stocks on organizational performance through feed-forward learning flows, while trust in manager moderates the effect of learning stocks on organizational performance through feedback learning flows.
Research limitations/implications
This study has a limitation in which it uses self-report data to measure all constructs. The objective measure may be necessary for future study.
Practical implications
The implications of this study are twofold. First, it finds that the higher organizational justice, the better the transfer of knowledge from the bottom up. When firms need to explore new knowledge, fairness in procedure and the distribution system is critical. Second, the higher the trust in management, the better the transfer of knowledge from the top down. The role of managers is instrumental in persuading employees and disseminating knowledge.
Originality/value
Combining functionalist and critical perspectives and developing a theoretical model, this study contributes to the understanding of how trust and justice facilitate learning activities within organizations.