scholarly journals Process innovation and performance: the role of divergence

2020 ◽  
Vol 54 (4) ◽  
pp. 741-760 ◽  
Author(s):  
Erik Mooi ◽  
John Rudd ◽  
Ad de Jong
Keyword(s):  
Empirical Studies ◽  
Theory Development ◽  
Environmental Uncertainty ◽  
Business Environment ◽  
Process Innovation ◽  
Competitive Intensity ◽  
Content Type ◽  
Wide Range ◽  
Per Se ◽  
And Performance

Purpose Process innovation is a key determinant of performance. While extant literature paints a clear picture of the drivers of process innovation, the effect of process innovation on performance has received little attention. This paper aims to examine how the divergence of process innovation impacts performance. Divergence concerns the extent to which the observed level of process innovation diverges from the expected level of process innovation. Positive divergence occurs when the observed level of process innovation is higher than expected while for negative divergence the opposite occurs. In turn, the authors consider how divergence acts as a driver of performance. Design/methodology/approach The authors use survey and archival data from 5,594 firms across 15 countries. The authors analyze the data using an advanced two-step random-effects estimator that accounts for the multi-level data used. Findings The authors find negative divergence to reduce performance under high competitive intensity, whereas positive divergence is detrimental under high environmental uncertainty. Research limitations/implications The authors present new and unique insights into the relationship between divergence and performance. The authors argue that each firm has an “ideal” level of process innovation, based on their resources and business environment, relative to which performance diminishes. Specifically, the authors argue that divergence from the firm’s expected level of process innovation is associated with the reduced performance during high environmental uncertainty or high competitive intensity. Furthermore, the authors argue that there can be “too much” process innovation. This nuance of the majority of prior empirical studies in this area suggests that more innovation is always better for firms. The more nuanced approach reveals that the process innovation-performance debate should not focus on more or less innovation per se, but on how innovation is constructed and supported. Practical implications Some argue the existence of an academia-practitioner gap, with both living in different worlds (Reibstein et al., 2009). The findings suggest that theory is not only useful to practitioners but also has a crucial and central role regarding decisions relating to efficiency and effectiveness of scarce resources, in the field of process innovation. More specifically, the authors demonstrate that the prior study on process innovation seems to be useful in that relative to a theory-predicted level, divergence diminishes performance in the global sample of companies across a wide range of industries. In addition, the authors suggest that firms should not strive for more innovation per se. The findings suggest that positive divergence or too much innovation is detrimental for performance under environmental uncertainty, while negative divergence or too little innovation is harmful to performance under competitive uncertainty. Moreover, the divergence approach is also useful for comparing performance to that of other firms, typically referred to as benchmarking. Originality/value This paper is useful and important for managers and theory development as it provides insight into situations where a firm may have “too little” or “too much” process innovation. Thus, divergence advances understanding as, in contrast with the previous study, the authors do not suggest that more innovation is always better.

Intellectual capital and performance

2018 ◽  
Vol 19 (2) ◽  
pp. 407-452 ◽  
Author(s):  
Eugénia Pedro ◽  
João Leitão ◽  
Helena Alves
Keyword(s):  
Intellectual Capital ◽  
Research Question ◽  
Empirical Studies ◽  
Content Type ◽  
Wide Range ◽  
Depth Study ◽  
Global Vision ◽  
Customer Capital ◽  
And Performance ◽  
The Relationship

Purpose The purpose of this paper is to determine the predominant classification of intellectual capital (IC), in terms of components, using the literature of reference on the relationship between IC and performance and considering multi-dimensional analysis axes (MAAs): organisational, regional and national. Design/methodology/approach A systematic literature review (SLR) is presented focussing on empirical studies on IC published in the period 1960-2016. A protocol for action is defined and a research question is raised, gathering data from the databases of: Web of Science, Scopus and Google Scholar. A social network analysis is also provided to determine the type of networks embracing groups, IC individual components and performance type. Findings Of the 777 papers included in the SLR, 189 deal with the relationship between IC and performance. The paper highlights the greater development of empirical studies starting from 2004; the organisational MAA is the most studied. The most frequently used groups of components in studies dealing with IC’s influence on performance corresponds to a triad of human capital; structural (organisational or process) capital; and relational (social or customer) capital, which determine positively the performance of organisations/regions/countries, but their influence is not linear and depends on various factors associated with the context and surrounding environment. Practical implications This study has wide-ranging implications for politicians/governments, managers and academics, providing empirical evidence about the relationships between the components of IC and performance, by MAAs, and a global vision and better understanding of how those IC components have developed and how they are related to performance. Originality/value Due to the high number of references covering a wide range of disciplines and the various dimensions (e.g. organisational, regional and national) that form IC, it becomes fundamental to carry out an SRL and systematise its MAAs to deepen knowledge about what has been discovered/developed in this domain, in terms of empirical studies, in order to situate the topic in a wider theoretical-practical context. The paper is exceptionally wide-ranging, covering the period 1960-2016. It is one of the first clarifying studies on systemisation of the literature on IC, by MAA, and an in-depth study of IC’s impact on the performance of organisations/regions and countries which may serve as a guideline for future studies using the taxonomy proposed.

Leveraging customer knowledge to enhance process innovation

2019 ◽  
Vol 25 (2) ◽  
pp. 307-322 ◽  
Author(s):  
Hung Nguyen ◽  
Norma Harrison
Keyword(s):  
Supply Chains ◽  
Transaction Cost Economics ◽  
Strong Association ◽  
Business Environment ◽  
Process Innovation ◽  
Bottom Line ◽  
Customer Knowledge ◽  
Content Type ◽  
Financial Measures ◽  
And Performance

PurposeNowadays, companies compete and win based on the capabilities they can leverage across their supply chains. With unpredictable and turbulent business environment, supply chains are seeking to customer knowledge as sources of competitive advantage. The purpose of this paper is to empirically test a conceptual framework to investigate the roles of customer leverage (CL) on process innovation and the relationships to performance.Design/methodology/approachDrawing upon the knowledge-based view, this study argues that CL is the sources of firms’ process innovation. This study also posits that process innovation mediates the relationship between CL and performance based on transaction cost economics. This empirical study employed 650 manufacturers across different regions.FindingsThis study showed that strong association exists between a manufacturing firm’s CL capability and its process innovation and performances. Process innovation play critical mediating roles in absorbing and transforming customer knowledge in supply chains. In a more dynamic market, CL strengthens the positive impacts on process innovation.Research limitations/implicationsThis study further highlights the need to emphasize both strategic and CL capability in dynamic environments as these may be needed to enable the firm to seize market niches that may open up in such environments. Similarly, managers should emphasize CL capability and process changes in competitive environments as they are more difficult to imitate from competitors in regards of new product or services.Practical implicationsThese results extend the limited existing research on global manufacturing context that the customer knowledge are effective sources for increasing innovative processes. The higher the market turbulence, the stronger the pressures for CL demanded by process innovation. The findings also confirm that process innovation plays a mediating role in absorbing and transforming customer knowledge in improving costs and financial measures. This is an important result that highlights the mechanism by which customer knowledge can influence a firm’s bottom line.Originality/valueThis study examined the linkages between a marketing concept and operations and supply chain management.

City destinations, overtourism and governance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Harold Goodwin
Keyword(s):  
Design Methodology ◽  
Empirical Studies ◽  
Content Type ◽  
Large Numbers ◽  
Wide Range ◽  
Conflicting Interests ◽  
And Performance ◽  
National Governments

Purpose There has been limited research on the governance of cities coping with large numbers of tourists. Empirical studies of the ways in which elected authorities in cities balance the conflicting interests of the tourism stakeholders, other businesses, communities and residents. It is clear that this requires a whole of government approach, and cities generally have a wide range of expertise and powers. Design/methodology/approach This paper uses conceptual viewpoint approach. Findings As the cases of Barcelona and Venice demonstrate, they are unable to manage the flows of day visitors arriving from the surrounding region, and the airports, ports, roads and railways are managed by regional and national governments. The different functions, powers and performance of government bodies need to be researched if we are to secure a better understanding of the complex and multi-layered activity of tourism can best be governed. Originality/value This is an original viewpoint.

The reflexive turn in key account management

2014 ◽  
Vol 48 (11/12) ◽  
pp. 2071-2104 ◽  
Author(s):  
Markus Vanharanta ◽  
Alan J.P. Gilchrist ◽  
Andrew D. Pressey ◽  
Peter Lenney
Keyword(s):  
Empirical Studies ◽  
Negative Relationship ◽  
Success Rates ◽  
Key Account Management ◽  
Content Type ◽  
Account Management ◽  
Long Run ◽  
Key Account ◽  
And Performance ◽  
The Uk

Purpose – This study aims to address how and why do formal key account management (KAM) programmes hinder effective KAM management, and how can the problems of formalization in KAM be overcome. Recent empirical studies have reported an unexpected negative relationship between KAM formalization and performance. Design/methodology/approach – An 18-month (340 days) ethnographic investigation was undertaken in the UK-based subsidiary of a major US sports goods manufacturer. This ethnographic evidence was triangulated with 113 in-depth interviews. Findings – This study identifies how and why managerial reflexivity allows a more effectively combining of formal and post-bureaucratic KAM practices. While formal KAM programmes provide a means to initiate, implement and control KAM, they have an unintended consequence of increasing organizational bureaucracy, which may in the long-run hinder the KAM effectiveness. Heightened reflexivity, including “wayfinding”, is identified as a means to overcome many of these challenges, allowing for reflexively combining formal with post-bureaucratic KAM practices. Research limitations/implications – The thesis of this paper starts a new line of reflexive KAM research, which draws theoretical influences from the post-bureaucratic turn in management studies. Practical implications – This study seeks to increase KAM implementation success rates and long-term effectiveness of KAM by conceptualizing the new possibilities offered by reflexive KAM. This study demonstrates how reflexive skills (conceptualized as “KAM wayfinding”) can be deployed during KAM implementation and for its continual improvement. Further, the study identifies how KAM programmes can be used to train organizational learning regarding KAM. Furthermore, this study identifies how and why post-bureaucratic KAM can offer additional benefits after an organization has learned key KAM capabilities. Originality/value – A new line of enquiry is identified: the reflexive-turn in KAM. This theoretical position allows us to identify existing weakness in the extant KAM literature, and to show a practical means to improve the effectiveness of KAM. This concerns, in particular, the importance of managerial reflexivity and KAM wayfinding as a means to balance the strengths and weaknesses of formal and post-bureaucratic KAM.

Exploring the nonlinear effect of size on profitability: evidence from an insurance brokerage industry in an emerging market

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Richard Angelous Kotey ◽  
Richard Akomatey ◽  
Baah Aye Kusi
Keyword(s):  
Nonlinear Effect ◽  
Emerging Market ◽  
Empirical Studies ◽  
Random Effect ◽  
Generalized Method Of Moments ◽  
Ordinary Least Squares ◽  
Growth Strategies ◽  
Content Type ◽  
And Performance ◽  
Brokerage Firms

PurposeThis study examines the possible nonlinear effect of size on stakeholder and shareholder profitability in the Ghanaian insurance brokerage industry.Design/methodology/approachThis study employs a panel dataset of 64 Ghanaian insurance brokerage firms spanning 2011–2015. Static [ordinary least squares (OLS), fixed effect and random effect and dynamic (two-step generalized method of moments (GMM))] estimation techniques are employed to analyze the data.FindingsThe study finds the existence of both economies and diseconomies of scale and scope theories in the Ghanaian insurance brokerage industry confirming the existence of nonlinear nexus between size and performance. This finding is consistent for both stakeholder and shareholder profit performance. Thus, the results show that size improves profitability of insurance brokerage firms, but beyond a certain threshold, the relationship turns negative as size negatively affects profitability.Practical implicationsThe research findings have implications for both policy and research; the study recommends that Ghanaian brokerage managers should understand that not all growth is good and exercise a duty of care when applying growth strategies by monitoring size effect on performance so as not to go beyond the inflection point. Further research can be done to examine this effect in other contexts, timeframes and jurisdictions.Originality/valueThis research is unique in that it employs a panel dataset consisting of 96% of insurance brokerage firms in Ghana whilst employing both static and nonstatic regression models to examine the effect of size. The research analysis adopted is robust, and the findings are significant. Also, the lack of empirical studies on the operations and dealings of auxiliary institutions such as the insurance brokerage firms adds value to this research.

Benchmarking the practices of flexibility with maturity models and frameworks of organizational capabilities

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sanjai Kumar Shukla ◽  
Sushil
Keyword(s):  
Information Technology ◽  
Comparative Analysis ◽  
Business Environment ◽  
Organizational Capabilities ◽  
Maturity Model ◽  
Human Capabilities ◽  
Maturity Models ◽  
Content Type ◽  
Wide Range ◽  
Flexibility Maturity

PurposeOrganizational capabilities are crucial to achieve the objectives. A plethora of maturity models is available to guide organizational capabilities that create a perplexing situation about what stuff to improve and what to leave. Therefore, a unified maturity model addressing a wide range of capabilities is a necessity. This paper establishes that a flexibility maturity model is an unified model containing the operational, strategic and human capabilities.Design/methodology/approachThis paper does a comparative analysis/benchmarking studies of different maturity models/frameworks widely used in the information technology (IT) sector with respect to the flexibility maturity model to establish its comprehensiveness and application in the organization to handle multiple goals.FindingsThis study confirms that the flexibility maturity model has the crucial elements of all the maturity models. If the organizations use the flexibility maturity model, they can avoid the burden of complying with multiple ones and become objective-driven rather than compliance-driven.Research limitations/implicationsThe maturity models used in information technology sectors are used. This work will inspire other maturity models to adopt flexibility phenomena.Practical implicationsThe comparative analysis will give confidence in application of flexibility framework. The business environment and strategic options across organizations are inherently different that the flexibility maturity model well handles.Social implicationsA choice is put to an organization to see the comparison tables produced in this paper and choose the right framework according to the prevailing business situation.Originality/valueThis is the first study that makes a conclusion based on comparative benchmarking of existing maturity models.

Internal projects as strategic tools: an organisation-level perspective and a research agenda

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Torbjørn Bjorvatn
Keyword(s):  
Project Management ◽  
Theory Development ◽  
Future Research ◽  
Content Type ◽  
Theoretical Contribution ◽  
Research Areas ◽  
Linear Relationships ◽  
Strategic Role ◽  
And Performance

PurposeThe purpose of this conceptual paper is to describe and explain how organisations use internal projects to implement organisation-level strategy objectives.Design/methodology/approachTheory development with an emphasis on explaining key constructs and their mutual relationships. The theoretical contribution is represented in a diagram along with a detailed verbal account.FindingsThe paper develops a dynamic, cross-level framework to illustrate the organisational processes and outcomes that determine project-based strategy implementation within a single organisation. The interplay between the base organisation and the project, and benefits realisation were singled out as key future research areas. The proposed framework engages with central discourses in the fields of project management, strategic management, innovation studies, knowledge management and organisation studies.Research limitations/implicationsOnly the contours of an organisation-level theory of strategically motivated internal projects are outlined. Future research must elaborate on the complexities, the non-linear relationships and the boundary conditions that follow from the proposed framework.Practical implicationsManagers are alerted to the strategic role of internal projects, how these projects help connect strategy and performance and what the accompanying organisational processes and outcomes look like.Originality/valueThe paper constitutes an early conceptual treatment of strategy-driven internal projects as a distinct project category, thus addressing a major knowledge gap in project studies. Organisational project-management theory is extended with suggestions for future research.

An analysis of Industry 4.0 implementation-variables by using SAP-LAP and e-IRP approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Veepan Kumar ◽  
Ravi Shankar ◽  
Prem Vrat
Keyword(s):  
Industry 4.0 ◽  
Business Environment ◽  
Content Type ◽  
Qualitative And Quantitative ◽  
Wide Range ◽  
Interpretive Ranking Process ◽  
Relevant Variables ◽  
Manufacturing Organization ◽  
Industry Associations ◽  
Practical Implications

PurposeIn today’s uncertain business environment, Industry 4.0 is regarded as a viable strategic plan for addressing a wide range of manufacturing-related challenges. However, it appears that its level of adoption varies across many countries. In the case of a developing economy like India, practitioners are still in the early stages of implementation. The implementation of Industry 4.0 appears to be complex, and it must be investigated holistically in order to gain a better understanding of it. Therefore, an attempt has been made to examine the Industry 4.0 implementation for the Indian manufacturing organization in a detailed way by analyzing the complexities of relevant variables.Design/methodology/approachSAP-LAP (situation-actor-process and learning-action-performance) and an efficient interpretive ranking process (e-IRP) were used to analyze the various variables influencing Industry 4.0 implementation. The variables were identified, as per SAP-LAP, through a thorough review of the literature and based on the perspectives of various experts. The e-IRP has been used to prioritize the selected elements (i.e. actors with respect to processes and actions with respect to performance) of SAP-LAP.FindingsThis study ranked five stakeholders according to their priority in Industry 4.0 implementation: government policymakers, industry associations, research and academic institutions, manufacturers and customers. In addition, the study also prioritized important actions that need to be taken by these stakeholders.Practical implicationsThe results of this study would be useful in identifying and managing the various actors and actions related to Industry 4.0 implementation. Accordingly, their prioritized sequence would be useful to the practitioners in preparing the well-defined and comprehensive strategic roadmap for Industry 4.0.Originality/valueThis study has adopted qualitative and quantitative approaches for identifying and prioritizing different variables of Industry 4.0 implementation. This, in turn, helps the stakeholder to comprehend the concept of Industry 4.0 in a much simpler way.

Towards a framework for measuring creative economy: evidence from Balkan countries

2019 ◽  
Vol 23 (1) ◽  
pp. 41-62 ◽  
Author(s):  
Valentina Ndou ◽  
Giovanni Schiuma ◽  
Giuseppina Passiante
Keyword(s):  
Business Environment ◽  
Creative Economy ◽  
Data Set ◽  
Content Type ◽  
Balkan Countries ◽  
World Economic ◽  
And Performance ◽  
Diverse Data ◽  
The Relationship ◽  
Performance Dimension

PurposeThe creative process through which the territorial resources, knowledge and culture are used, exploited and configured to match needs and to achieve congruence with the changing business environment has become a crucial process for competitiveness. This is even more relevant for economies of developing countries which are continuously struggling to reap the benefits of globalisation, as well as to grasp the new opportunities for competitiveness. As such, this paper aims to try to concentrate on the dynamic perspectives of the creative economy of countries by distinguishing between the potentialities and performance. The paper tackles the influence that creativity capacities might have on performance of countries.Design/methodology/approachThe methodology consists in identifying creative economy indicators from a diverse data set of the World Economic Forum and distinguish them between potential and performance indicators.FindingsData reveal as good progress and emphasis is being devoted to increasing the level of creativity; however, the Balkan countries still holdup in their capacity to boost innovation.Practical implicationsThe paper provide a new focus of research on creativity measurement that is significant for understanding what creative capacities territories possess and the ability to make proficient use for growth and innovation.Originality/valueThis paper proposes a new operational framework for measuring and interpreting the creative economy indicators by identifying not only indicators that gauge the potentialities of a country, but also indicators that are linked with the performance dimension, as well as the relationship amongst them.

A theory of contingent business process management

2019 ◽  
Vol 25 (6) ◽  
pp. 1291-1316 ◽  
Author(s):  
Sarah Zelt ◽  
Jan Recker ◽  
Theresa Schmiedel ◽  
Jan vom Brocke
Keyword(s):  
Information Processing ◽  
Business Process ◽  
Business Process Management ◽  
Process Management ◽  
Business Processes ◽  
Empirical Studies ◽  
Theory Development ◽  
Process Performance ◽  
Research Strategies ◽  
Content Type

Purpose Many researchers and practitioners suggest a contingent instead of a “one size fits all” approach in business process management (BPM). The purpose of this paper is to offer a contingency theory of BPM, which proposes contingency factors relevant to the successful management of business processes and that explains how and why these contingencies impact the relationships between process management and performance. Design/methodology/approach The authors develop the theory by drawing on organizational information processing theory (OIPT) and applying an information processing (IP) perspective to the process level. Findings The premise of the model is that the process management mechanisms such as documentation, standardization or monitoring must compensate for the uncertainty and equivocality of the nature of the process that has to be managed. In turn, managing through successful adaptation is a prerequisite for process performance. Research limitations/implications The theory provides a set of testable propositions that specify the relationship between process management mechanisms and process performance. The authors also discuss implications of the new theory for further theorizing and outline empirical research strategies that can be followed to enact, evaluate and extend the theory. Practical implications The theory developed in this paper allows an alternative way to describe organizational processes and supports the derivation of context-sensitive management approaches for process documentation, standardization, monitoring, execution and coordination. Originality/value The theoretical model is novel in that it provides a contextualized view on BPM that acknowledges different types of processes and suggests different mechanisms for managing these. The authors hope the paper serves as inspiration both for further theory development as well as to empirical studies that test, refute, support or otherwise augment the arguments.

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