scholarly journals Dynamic capabilities for firm performance under the information technology governance framework

2020 ◽  
Vol 32 (2) ◽  
pp. 129-157 ◽  
Author(s):  
Sabine Khalil ◽  
Maksim Belitski
Keyword(s):  
Information Technology ◽  
Firm Performance ◽  
Dynamic Capabilities ◽  
It Governance ◽  
Content Type ◽  
Governance Framework ◽  
Technology Governance ◽  
The Uk ◽  
The Impact ◽  
The Relationship

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.

scholarly journals Dynamic capability of the firm: analysis of the impact of internationalisation on SME performance in an emerging economy

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahfuzur Rahman ◽  
Dieu Hack-Polay ◽  
Sujana Shafique ◽  
Paul Agu Igwe
Keyword(s):  
Firm Performance ◽  
Emerging Economies ◽  
Dynamic Capabilities ◽  
Emerging Economy ◽  
Two Dimensions ◽  
Dynamic Capability ◽  
Content Type ◽  
Market Expansion ◽  
The Impact ◽  
The Relationship

PurposeInternationalisation is considered as a key strategy for the growth of Small and Medium Enterprises (SMEs). The purpose of this paper is to examine the relationship between dynamic capability, SMEs internationalisation and firm performance in the context of emerging economies and to evaluate the impact of financial, asset and market expansion on internationalisation of SMEs.Design/methodology/approachUsing primary data from 212 SMEs from Bangladesh, structural equation modelling and mathematical (hierarchical reflective) model, the analysis enabled the measurement of the casual relationship on the impacts of internationalisation.FindingsThe results revealed that internationalisation of SMEs has significant impact on both financial and non-financial performance of SMEs in an emerging economy- Bangladesh. The paper found internationalisation impacts on two dimensions (financial and non-financial) with eight defined indicators – higher sales, higher profit, assets maximisation, market expansion, competitive advantage, better reputation, better customer service and added knowledge.Originality/valueDespite several studies that examine the relationship between SME internationalisation and firm performance, limited research exists on emerging economies. This is contrary to the fact that SMEs are one of the main vehicles for growth in those economies such as Bangladesh. In this research, the authors use the theories of dynamic capabilities to conceptualise how internationalisation becomes a core SME capability for SMEs in an emerging economy.

Information technology (IT) governance and IT capability to realize firm performance: enabling role of agility and innovative capability

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Aboobucker Ilmudeen
Keyword(s):  
Information Technology ◽  
Firm Performance ◽  
Dynamic Capabilities ◽  
It Governance ◽  
Environmental Uncertainty ◽  
Governance Mechanism ◽  
Turbulent Environment ◽  
Content Type ◽  
It Capability ◽  
Innovative Capability

PurposeWith the ever-growing turbulent business setting, there is a great interest to study how a firm tailors information technology (IT) capability to shape agility and innovation capability to stay ahead of the competition. This study examines how IT governance and IT capability can be tailored to achieve firm performance through agility and innovative capability in a turbulent environment.Design/methodology/approachDrawing on the dynamic capability theory, this study based on the primary survey data of 253 responses from senior IT and business executives in China proves the hypothesized relationship in the proposed model.FindingsThis study shows that the IT governance mechanism positively impacts on IT-enabled dynamic capabilities. Further, IT-enabled dynamic capabilities positively impact on agility and innovative capability that in turn support to achieve firm performance. The environmental uncertainty is only significant in the IT-enabled dynamic capabilities–business process agility relationship.Research limitations/implicationsThis study suggests corporate leaders and executives to better exploit their resources and tailor IT capabilities in the turbulent environment. Further, this study offers theoretical and practical implications.Originality/valueThis study proposes ways for executives to examine the multifaceted nature of environmental uncertainty to achieve agility, innovation and firm performance rather than simply investing in IT.

Knowledge strategy planning and information system strategies enable dynamic capabilities innovation capabilities impacting firm performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Adilson Carlos Yoshikuni ◽  
Frederico Ribeiro Galvão ◽  
Alberto Luiz Albertin
Keyword(s):  
Information System ◽  
Firm Performance ◽  
Dynamic Capabilities ◽  
Positive Impact ◽  
Practical Implication ◽  
Content Type ◽  
Knowledge Strategy ◽  
Strategy Planning ◽  
The Impact ◽  
The Relationship

Purpose Many studies have not fully explored the relationship between knowledge and information system strategies (ISS) and their overall impact on firm performance (FP). In an attempt to address this knowledge gap, this study draws on the dynamic capabilities view, and on recent literature on knowledge strategy planning (KSP), and examines the alignment between KSP and ISS to enable dynamic capabilities innovation capabilities (DCIC) to gain FP. Design/methodology/approach The survey examined empirical data from 234 Brazilian companies using the partial least squares path modeling to test the hypotheses proposed herein. Findings The empirical results confirmed that both KSP and ISS have a positive impact on DCIC. Furthermore, the results indicated that FP was positively impacted through DCIC. The results indicated that the alignment between KSP and ISS positively impacts DCIC and ultimately FP. Research limitations/implications The data was collected from 234 Brazilian companies in a country classified as a developing economy. Future studies could investigate the impact of KSP and ISS on FP in developed economies. The practical implication of the study required managers to be knowledgeable about the value of alignment between KSP and IT capabilities involving more practitioners in the strategy-as-practice to create innovation capabilities and enhance FP. Originality/value This is one of the earliest studies that has investigated the relationships between KSP and ISS and their impact on FP within a developed economy context. The relationship between all constructs that have not been addressed previously contributes to extend the literature on KSP, ISS and dynamic capabilities view.

Does investment in innovation impact firm performance in emerging economies? An empirical investigation of the Indian food and agricultural manufacturing industry

2021 ◽  
Vol 13 (2) ◽  
pp. 233-248
Author(s):  
Manogna R.L. ◽  
Aswini Kumar Mishra
Keyword(s):  
Firm Performance ◽  
Manufacturing Industry ◽  
Emerging Market ◽  
Developed Countries ◽  
Emerging Economy ◽  
Content Type ◽  
Agricultural Industry ◽  
Indian Food ◽  
The Impact ◽  
The Relationship

Purpose The study aims to analyze the impact of Research & Development (R&D) intensity on the firm’s performance, measured by growth of sales in the emerging market like India. Innovation strategy and its outcomes for firms may be different in developing countries as compared to developed countries. Thus, a study that focuses on the emerging economy like India, with a majority of the population dependent on agriculture, is of prime importance to the firm performance in the food and agricultural manufacturing industry. For this study, the broader focus will be on one widely recognised factor which may influence the growth rate of firms, i.e. investment in innovations which is in terms of R&D expenditure. Design/methodology/approach The paper investigates the relationship between the R&D efforts and growth of firms in the Indian food and agricultural manufacturing industry during 2001–2019. To empirically test the relationship between firm’s growth (FG) and R&D investments, system generalised method of moments technique has been used, hence enabling to avoid problems related to endogeneity and simultaneity. Findings The findings reveal that investments in innovations have a positive effect on the growth of firms in the Indian food and agricultural manufacturing industry. Investment in R&D also enables the firms to reap benefits from externalities present in the industry. Further analysis reveals that younger firms grow faster when they invest in R&D. More specifically, this paper finds evidence in the case of the food and agricultural industry that import of raw materials negatively affects the FG and export intensity positively affects the growth in the case of R&D firms. Research limitations/implications This study suggests that the government should encourage the industries to invest optimally in R&D projects by providing favourable fiscal treatments and R&D subsidies which are observed to have positive effects in various developed countries. Originality/value To the best of the author’s knowledge, the current paper is the first to analyse the impact of innovation in food and agricultural industry on firm’s performance in an emerging economy context with the latest data. This paper agrees that a government initiative to increase private R&D expenditure would have favourable effects on FG as growing investments in R&D lead to further growth of the firms.

Market ranking and network structure: pathway to dominance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yasaman Sarabi ◽  
Matthew Smith ◽  
Heather McGregor ◽  
Dimitris Christopoulos
Keyword(s):  
Firm Value ◽  
Critical Role ◽  
Firm Characteristics ◽  
Interlocking Directorates ◽  
Content Type ◽  
Network Autocorrelation ◽  
The Uk ◽  
Market Capitalisation ◽  
The Impact ◽  
The Relationship

PurposeThe relationship between interlocking directorates and firm performance has been increasingly debated, with a focus on whether firm's centrality in interlock networks is associated with performance. The purpose of this study is to examine not only how a firm's position in this network is associated with performance but also how the performance of network partners can impact a firm's performance. This study examines how firms effectively utilise the interlock network to achieve the goal of higher market capitalisation – termed market capitalisation rank (MCR).Design/methodology/approachThe premise of the study is the UK FTSE 350 firms from 2014 to 2018. The paper makes use of a temporal network autocorrelation model to examine how firm characteristics, the structural position in the interlock network and the performance of network partners affect MCR over time.FindingsThe analysis indicates that firms with ties (via the interlock network) to firms with high market capitalisation are more likely to enhance their own MCR, highlighting network partners have the opportunity to play a critical role in a firm's dominance strategy to optimise firm value.Originality/valueThe value of this research is that it does not only look at the impact of a firm's position in the network on performance, but the impact of the performance of network partners on a firm's market performance as well.

Chasing productivity demands, worker well-being, and firm performance

2020 ◽  
Vol 49 (9) ◽  
pp. 1823-1843
Author(s):  
Mastura Ab Wahab ◽  
Ekrem Tatoglu
Keyword(s):  
Firm Performance ◽  
Well Being ◽  
Manufacturing Firms ◽  
Equation Modeling ◽  
Flexible Work Arrangements ◽  
Flexible Work ◽  
Content Type ◽  
Work Arrangements ◽  
The Impact ◽  
The Relationship

PurposeThis study aims to examine the impact of chasing productivity demands on worker well-being and firm performance in manufacturing firms in Malaysia. Flexible work arrangements and human resources support are used as moderators to mitigate the adverse impacts associated with chasing productivity demands.Design/methodology/approachData were collected from 213 workers from manufacturing firms through a survey questionnaire utilizing structural equation modeling.FindingsThe findings of the study show that flexible work arrangements play a significant role in moderating the relationship between chasing productivity demands and well-being, and between chasing productivity demands and firm performance. The study also shows that flexible work arrangements are important to buffer the adverse effects of chasing productivity demands on worker well-being. In addition, flexible work arrangements strengthen the positive effect of worker well-being on firm performance.Research limitations/implicationsThis study highlights the importance of flexible work arrangements in overcoming the negative impact of the relationship between chasing productivity demands and worker well-being and strengthening the positive impact of the relationship between worker well-being and firm performance.Originality/valueThis study has extended the variable of chasing productivity demands in the existing literature on the job demands–job control model, specifically in manufacturing firms.

The moderating effect of operator type: the impact of information technology (IT) expenditures on hotels’ operating performance

2020 ◽  
Vol 32 (8) ◽  
pp. 2519-2541
Author(s):  
Nan Hua ◽  
Arthur Huang ◽  
Marcos Medeiros ◽  
Agnes DeFranco
Keyword(s):  
Information Technology ◽  
Operating Performance ◽  
Moderating Effect ◽  
Holistic View ◽  
Content Type ◽  
Operating Income ◽  
Operator Type ◽  
Research Outcome ◽  
The Impact ◽  
The Relationship

Purpose This study aims to examine how operator type moderates the relationship between hotel information technology (IT) expenditures and operating performance. Design/methodology/approach By adapting and extending O’Neill et al.’s (2008) and Hua et al.’s (2015) research, this study constructed an empirical model and tested proposed hypotheses, with Newey and West (1994) errors computed to accommodate potential heteroscedasticity and autocorrelation issues. Findings Operator type moderates the impact of hotel IT expenditures on operating performance. In particular, it appears that the operator type of franchising exerts a stronger moderating effect compared with other operator types explored. Practical implications This study, as the first of its kind, shows that the choice of operator type shapes how a hotel can effectively use IT expenditures to improve operating performance. This finding can be beneficial for hotel owners when making operator type decisions. In addition, operator type moderates the direct impact of IT expenditures on revenues and gross operating income. This study’s results show that franchised hotels seem to use IT expenditures more effectively compared with independently owned hotels. Originality/value This study contributes both theoretically and practically to understand how operator type moderates the relationship between IT expenditures and hotel performance. The research outcome provides a more holistic view that governs the relationships between IT expenditures, operator type and operating performance.

The Impact Of Information Technology On Performance: The Mediating Role Of Management Accounting Systems

2012 ◽  
Author(s):  
Noor Azizi Ismail
Keyword(s):  
Information Technology ◽  
Information Systems ◽  
Firm Performance ◽  
Management Accounting ◽  
Accounting Information ◽  
Accounting Systems ◽  
Mediating Role ◽  
Management Accounting Systems ◽  
The Impact ◽  
The Relationship

Kertas kerja ini melaporkan hasil kajian yang menerangkan hubungan antara kecanggihan Teknologi Maklumat (IT) dan prestasi firma yang bersaiz kecil dan sederhana (SMEs), dengan memasukkan ke dalam model kajian, keupayaan sistem perakaunan pengurusan untuk menghasilkan maklumat perakaunan pengurusan (kapasiti MAS). Bagi menguji hubungan tersebut, data telah dikumpul daripada 310 firma menggunakan kaedah soal selidik. Hasil ujian menunjukkan bahawa kecanggihan IT merupakan penentu kepada kapasiti MAS, sementara kapasiti MAS pula akan menentukan prestasi firma. Dalam kata lain, kapasiti MAS memainkan peranan sebagai penghubung antara kecanggihan IT dengan prestasi firma. Interpretasi hasil ujian ini ialah firma yang menggunakan IT yang lebih canggih akan dapat menghasilkan maklumat perakaunan pengurusan yang mencukupi dan seterusnya dapat meningkatkan prestasi firma. Kata kunci: Teknologi Maklumat, sistem maklumat, sistem perakaunan pengurusan, sistem maklumat perakaunan, industri kecil dan sederhana This paper reports the results of a study which offers an explanation for the relationship between Information Technology (IT) sophistication and performance of small and medium sized enterprises (SMEs), by incorporating into the model of the capability of management accounting systems to generate management accounting information (MAS capacity). To assess the relationship, data were collected from 310 (25% response rate) SMEs by way of questionnaire surveys. The results indicate that IT sophistication is a determinant of MAS capacity, which, in turn, is a determinant of firm performance. In other words, MAS capacity plays a mediating role in the relationship between IT sophistication and firm performance. An interpretation of the results is that those firms that employed sophisticated IT can generate sufficient management accounting information and thereby improve performance. Key words: Information Technology, information systems, management accounting system, accounting information systems, small and medium enterprises

The impact of service innovation on firm performance: a meta-analysis

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Changli Feng ◽  
Ruize Ma ◽  
Lin Jiang
Keyword(s):  
Firm Performance ◽  
Positive Impact ◽  
Meta Analysis ◽  
Service Innovation ◽  
Future Research ◽  
Quantitative Review ◽  
Content Type ◽  
And Performance ◽  
The Impact ◽  
The Relationship

PurposeWith the rise of service economy, many companies are attempting to gain a competitive advantage through service innovation. However, the existing research has not drawn consistent conclusions about the relationship between service innovation and firm performance. Hence, the purpose of this paper is to provide a quantitative review on the service innovation-performance relationship based on research findings reported in the extant literature.Design/methodology/approachStudies from 46 peer-reviewed articles were sampled and analyzed. A meta-analytic approach was adopted to conduct a quantitative review on the relationship between service innovation and firm performance, and the effects of any potential moderators were further explored.FindingsThe results found that service innovation has a significant positive impact on firm performance. Additionally, the relationship between service innovation and firm performance is influenced by measurement moderators (economic region and performance measurement), and contextual moderators (firm type, innovation type, customer factors and attitudes toward risk).Originality/valueThe meta-analysis has been used to explore the relationship between service innovation and firm performance, and the findings have contributed to the literature on service innovation, as well as providing future research directions.

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