Does employee understanding of strategic objectives matter? Effects on culture and performance

2020 ◽  
Vol 13 (4) ◽  
pp. 477-493 ◽  
Author(s):  
Radoslaw Nowak
Keyword(s):  
Organizational Culture ◽  
Structural Equation ◽  
Service Management ◽  
Critical Role ◽  
Mediating Effect ◽  
Equation Modeling ◽  
Business Organizations ◽  
Content Type ◽  
Strategic Objectives ◽  
And Performance

PurposeThe purpose of this paper is to investigate whether employees' understanding of their organization's strategic objectives could be used by business organizations to develop a desired type of organizational culture that will improve business performance.Design/methodology/approachStructural equation modeling (SEM) was conducted on the data collected in 2018 from professionals working in the healthcare industry in the USA.FindingsSEM revealed the positive effect of employee understanding of their organization's strategic objectives on the development of a serving culture, and the mediating effect of serving culture on the relationship between employee understanding of strategic objectives and performance.Research limitations/implicationsThis study emphasizes that having a well-defined mission and strategic goals may not be sufficient. Business organizations must also ensure that all employees clearly understand the meaning of such objectives. Employee understanding can become instrumental, as it could allow business organizations to develop a desired type of organizational culture that will support the implementation of the firm's strategic objectives.Originality/valueThe study is a valuable addition to past research. First, it advances the literature on strategy by exploring the critical role of employee understanding of their organization's strategic objectives in the context of culture and performance. Thus, it allows scholars to better explain how business organizations could more effectively utilize their process of strategic planning. In the domain of organizational culture, the paper contributes by identifying a new antecedent of serving culture. Furthermore, the paper also contributes to the literature on service management by identifying a mechanism that service organizations could use to increase their performance.

The effect of data strategy on competitive advantage

2020 ◽  
Vol 33 (2) ◽  
pp. 201-216
Author(s):  
Mauricius Munhoz de Medeiros ◽  
Antonio Carlos Gastaud Maçada ◽  
José Carlos da Silva Freitas Junior
Keyword(s):  
Competitive Advantage ◽  
Structural Equation ◽  
Business Models ◽  
Big Data Analytics ◽  
Mediating Effect ◽  
Equation Modeling ◽  
Strategic Positioning ◽  
Content Type ◽  
Strategic Objectives ◽  
Modeling And Analysis

Purpose In the age of analytical competition, business models and gaining competitive advantage (CA) are directly related to organizations’ data strategy. Incorporating data strategy enables the organization to unlock the potential value of big data analytics. Therefore, this study aims to analyze how data strategy affects the achievement of CA. Design/methodology/approach Through survey research, data were collected from 103 respondents. Model testing and evaluation, partial least squares structural equation modeling and analysis of mediating effects were performed. Findings The supported hypotheses confirm the direct effects between the defensive and offensive positioning of the data strategy on CA, as well as the mediating effect of the offensive data strategy (ODS). Originality/value This study is groundbreaking in terms of empirically analyzing how defensive data strategy (DDS) or ODS affects CA. In conclusion, to extract value from their data, organizations need to establish their data strategy based on their strategic positioning, the potential of their resources and their analytical capabilities. Research implications The defensive and offensive positioning of the data strategy are closely related to each other and both, in isolation, directly and positively, impact CA. It is also noted that the role of defensive positioning is to strengthen the offensive positioning of the data strategy, which in turn, plays a central role in achieving CA. Practical implications The results can assist managers in effectively incorporating analytical resources and capabilities, as well as helping them understand the dynamics and advantages of data strategy, so they can drive strategic objectives according to the organization’s positioning. Originality/value This study is groundbreaking in terms of empirically analyzing how DDS or ODS affects CA. In conclusion, to extract value from their data, organizations need to establish their data strategy based on their strategic positioning, the potential of their resources and their analytical capabilities.

scholarly journals The relationship between organizational culture and quality techniques, and its impact on operational performance

2015 ◽  
Vol 35 (10) ◽  
pp. 1460-1484 ◽  
Author(s):  
Lillian Do Nascimento Gambi ◽  
Harry Boer ◽  
Mateus Cecilio Gerolamo ◽  
Frances Jørgensen ◽  
Luiz Cesar Ribeiro Carpinetti
Keyword(s):  
Organizational Culture ◽  
Structural Equation ◽  
Operational Performance ◽  
Equation Modeling ◽  
Competing Values ◽  
Performance Impact ◽  
Content Type ◽  
Performance Effects ◽  
And Performance ◽  
The Relationship

Purpose – The purpose of this paper is to investigate if a firm’s organizational culture affects the set of quality techniques it uses, and if these quality techniques affect the relationship between organizational culture and operational performance. Design/methodology/approach – Based on data collected from 250 firms in Brazil and Denmark, structural equation modeling is used to investigate the relationship between organizational culture and the use of quality techniques, and its impact on operational performance. Four quality technique groups, four cultural profiles adopted from the Competing Values Framework and a set of operational performance indicators are used to operationalize the study. Findings – Culture does not appear to be an unequivocal predictor of the use of quality techniques. Furthermore, while most quality technique groups contribute indirectly to the total effect on operational performance in the developmental, group and hierarchical cultures, the performance effects are insignificant for all four groups in the rational culture. Practical implications – Managers need to be actively aware of the cultural characteristics of their organization before adopting quality techniques, in order to benefit most from the use of these techniques. Originality/value – Most previous studies address the relationships between culture, quality management and performance at the level of quality practices. This study takes the unitarist-pluralist discussion to the level of quality techniques and extends that discussion to what should be its core, namely, the influence of quality techniques on the performance impact of culture.

Managerial skills and performance in small businesses: the mediating role of organizational climate

2020 ◽  
Vol 14 (3) ◽  
pp. 361-377
Author(s):  
Gholamhossein Mehralian ◽  
Mohammad Peikanpour ◽  
Maryam Rangchian ◽  
Hamed Aghakhani
Keyword(s):  
Organizational Climate ◽  
Small Businesses ◽  
Structural Equation ◽  
Business Performance ◽  
Mediating Effect ◽  
Equation Modeling ◽  
Data Set ◽  
Content Type ◽  
Managerial Skills ◽  
And Performance

Purpose The purpose of this paper is to develop a conceptual model to determine whether organizational climate (OC) mediates the effect of managerial skills (MSs) on business performance in small businesses, such as pharmacies. Design/methodology/approach The model proposed in this research was tested using separate questionnaires specifically designed for managers, employees and clients. The data set consists of responses from 301 managers, 470 clients and 328 employees from community pharmacies in Tehran, capital of Iran, which were analyzed using structural equation modeling. Findings Although the results indicated no significant direct relationship between MSs and pharmacy performance (PP), they also confirmed that having a context-appropriate set of MSs can positively affect PP via the mediating effect of OC. Originality/value This is the first study investigating how MSs improve performance in retail pharmacies. Although this research focuses specifically on small businesses in the pharmaceutical industry, it nevertheless contributes to the literature by showing the importance of OC.

Lean practices and operational performance: the role of organizational culture

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Saumyaranjan Sahoo
Keyword(s):  
Organizational Culture ◽  
Structural Equation ◽  
Mediating Effect ◽  
Operational Performance ◽  
Equation Modeling ◽  
Future Research ◽  
Lean Implementation ◽  
Content Type ◽  
Cultural Aspects ◽  
Lean Practices

PurposeThere is a scarcity of research about cultural aspects of organization related to lean implementation. The purpose of this research is to investigate the effects of lean practices and organizational culture on the operational performance of small- and medium-sized manufacturing enterprises.Design/methodology/approachThe study is based on a survey conducted and data collected from 215 manufacturing SMEs in India. The hypothesized relationships are then analyzed with structural equation modeling.FindingsThe results showed that the constructs of lean practices and organizational culture have significant and direct effects on the operational performance of Indian manufacturing SMEs. Further, this research shows the mediating effect of organizational culture on sustaining lean processes within small-medium manufacturing business setups.Research limitations/implicationsFuture research is required in a more diverse context to confirm the generalization of the results. Future research may be extended to investigate the effects of lean and organization cultural aspects on measures of financial, social and environmental performance.Practical implicationsThe results obtained would help managers of manufacturing SMEs to better understand the linkage between lean and operational performance, considering the aspect of cultural change management in an organization. The outcome of this research provides useful indications of how organizations can work to sustain the philosophy of lean manufacturing within their workplace.Originality/valueThere is a lack of research at the critical intersection of organizational culture and sustainability of lean implementation. Culture is key to making changes required for lean implementation and in sustaining the drive toward lean production and management. This research is an attempt to fill that gap.

How organizational green culture influences green performance and competitive advantage

2019 ◽  
Vol 30 (4) ◽  
pp. 666-683 ◽  
Author(s):  
Chao-Hung Wang
Keyword(s):  
Organizational Culture ◽  
Competitive Advantage ◽  
Structural Equation ◽  
Manufacturing Firms ◽  
Mediating Effect ◽  
Equation Modeling ◽  
Theoretical Argument ◽  
Green Innovation ◽  
Content Type ◽  
Green Performance

PurposeGrowing public concern about the natural environment is rapidly transforming the competitive landscape and forcing firms to adopt green innovation strategies. Many manufacturing firms have recognized the concept of green innovation, though there has been relatively little research on considerations of its driver and effect. The purpose of this paper is to empirically develop and test a theoretical model that analyzes how organizational green culture (OGC) influences green performance and competitive advantage. Specifically, this model explains how green innovation mediates these relationships.Design/methodology/approachThe paper collected data from 327 manufacturing firms of different industry sectors in Taiwan. Structural equation modeling with AMOS 11 software was applied to analyze the data. Data on specific environmental innovation issues at the firm level are not usually available from published sources, so this paper uses a questionnaire. The questionnaire is developed based on the literature.FindingsThe findings of this paper suggest that OGC significantly predicted green performance and competitive advantage, respectively. Moreover, the results show that both green innovation completely mediates between OGC and green performance, and that it has a partially mediating effect on the relationship between organization green culture and competitive advantage under environmental pressure.Research limitations/implicationsThis study has some limitations that point to the future lines of research. Perhaps, the biggest limitation of the study is that the data are from a single country, which may hamper generalization. This study is also limited in that it is based on cross-sectional data. A final limitation is the origin of organizational culture vs employee attitude culture.Originality/valueThis study contributes to the existing literature on organizational culture and innovation by considering green environmental concerns, which have not been empirically explored. This study also offers a unique theoretical argument describing the relationships by considering the mediating effect of green innovation strategy.

Supply chain integration and its impact on sustainability

2018 ◽  
Vol 118 (9) ◽  
pp. 1749-1765 ◽  
Author(s):  
Mingu Kang ◽  
Ma Ga (Mark) Yang ◽  
Youngwon Park ◽  
Baofeng Huo
Keyword(s):  
Supply Chain ◽  
Structural Equation ◽  
Management Practices ◽  
Social Performance ◽  
Supply Chain Integration ◽  
Equation Modeling ◽  
Content Type ◽  
New Perspective ◽  
And Performance ◽  
And Function

Purpose The purpose of this paper is to examine the role of supply chain integration (SCI) in improving sustainability management practices (SMPs) and performance. Design/methodology/approach Based on data collected from 931 manufacturing firms in multiple countries and regions, the authors conducted a structural equation modeling analysis to test the proposed hypotheses. Findings The findings suggest that supplier and customer integration are vital enablers for both intra- and inter-organizational SMPs. The results also reveal that both intra- and inter-organizational SMPs are significantly and positively associated with sustainability performance (i.e. economic, environmental and social performance) and function as complements to jointly enhance environmental and social performance. Originality/value This study incorporates SCI into the sustainability literature, providing a new perspective on sustainability and supply chain management research.

Building trust by signaling trustworthiness in service retail

2014 ◽  
Vol 28 (5) ◽  
pp. 361-373 ◽  
Author(s):  
Husni Kharouf ◽  
Donald J. Lund ◽  
Harjit Sekhon
Keyword(s):  
Customer Loyalty ◽  
Structural Equation ◽  
Positive Impact ◽  
Past Research ◽  
Customer Relationships ◽  
Mediating Effect ◽  
Equation Modeling ◽  
Content Type ◽  
Survey Responses ◽  
Customer Trust

Purpose – The purpose of this paper is to investigate the role of retailer trustworthiness in driving customer trust and the subsequent impact on loyalty. The authors position trustworthiness as a mediator in the link between retail strategies and the development of trust. They model customer loyalty to the service retailer as a function of the trust created through trustworthy perceptions. Design/methodology/approach – The authors validate their model using 420 survey responses from customers in a service retail setting. Nine research hypotheses were tested using structural equation modeling. Alternate models are estimated, and the results provide support for the theory-based trustworthiness mediation model. Findings – Trustworthy behaviors first build trustworthiness, which then translates into customer trust and ultimately has a positive impact on both behavioral and attitudinal loyalty. Research limitations/implications – The research highlights the importance for retailers to signal their trustworthiness to build customer trust and loyalty. Researchers should measure trustworthiness perceptions when examining customer relationships and managers should plan strategically to develop both trust and trustworthiness with their customers. Originality/value – This study is one of the first to investigate the mediating effect of trustworthiness on customer loyalty in service settings. While past research has investigated dimensions of trustworthy behaviors, none has included a measure of trustworthiness perceptions and consumer trust in the same theoretical model. The results of the research provide important insights for both researchers and managers.

Structural empowerment and serving culture as determinants of organizational identification and turnover intention

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Radoslaw Nowak
Keyword(s):  
Organizational Identification ◽  
Turnover Intention ◽  
Structural Equation ◽  
Joint Effect ◽  
Mediating Effect ◽  
Equation Modeling ◽  
Structural Empowerment ◽  
Content Type ◽  
Employee Identification ◽  
The Relationship

Purpose This paper aims to provide an alternative explanation for how organizations could increase levels of organizational identification, in turn reducing employee turnover intention. Specifically, the study empirically tests the joint effect of two types of organizational resources – structural empowerment and serving culture (SE*SC) – on employee identification. Moreover, it investigates the mediating effect of organizational identification on the relationship between the joint effect (SE*SC) and turnover intention. Design/methodology/approach The data were collected in 2018 from employees working in a higher education institution located in the USA. Structural equation modeling was used to test the proposed model. Findings Statistical analysis reveals the positive joint effect (SE*SC) on organizational identification and the mediating effect of identification on the relationship between the joint effect (SE*SC) and turnover intention. Originality/value This study contributes to past research by revealing a new important mechanism. Business organizations could increase levels of employee identification and, in turn, reduce turnover by providing empowering resources that allow employees to successfully complete their jobs. Moreover, the study also contributes to practice by providing some recommendations that managers may implement to improve internal effectiveness in their respective organizations.

scholarly journals Testing the Mediating Role of Career Development in Affecting Intellectual Capital and Organizational Culture on Employee Performance: Evidence of Local Banks in Yogyakarta, Indonesia

2021 ◽  
Vol 23 (1) ◽  
pp. 16-32
Author(s):  
Titi Laras ◽  
Rutha Mathilde Santana ◽  
Bambang Jatmiko ◽  
Tiyas Puji Utami
Keyword(s):  
Organizational Culture ◽  
Career Development ◽  
Intellectual Capital ◽  
Structural Equation ◽  
Employee Performance ◽  
Equation Modeling ◽  
Study Results ◽  
And Performance ◽  
Branch Office

Research aims: This study aims to examine the role of career development in mediating the relationship between intellectual capital and organizational culture on employee performance.Design/Methodology/Approach: This study used a proportional stratified random sampling method with 126 permanent employees of local banks in Yogyakarta, Indonesia, as research respondents. The respondents included Head Office, Main Branch Office, and Senopati Branch Office. The data were collected by distributing a questionnaire, and the secondary data were in the form of data or documents that supported and strengthened the primary information from books, magazines, journals, and other documents. Then, the analytical tool utilized in this study was SEM (Structural Equation Modeling) to test the research hypotheses.Research findings: The results showed that intellectual capital and organizational culture had a positive and significant effect on career development and performance, but career development had no positive and significant effect on performance. Meanwhile, career development could not mediate the effect of intellectual capital and organizational culture on performance.Theoretical contribution/Originality: The study results contribute to the literature (body of knowledge), especially as additional discussion toward theory and literature related to intellectual capital, organizational culture, career development, and performance in local banks, which is still very limited.

The impact of information security initiatives on supply chain robustness and performance: an empirical study

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sindhuja P.N.
Keyword(s):  
Supply Chain ◽  
Information Security ◽  
Supply Chains ◽  
Structural Equation ◽  
Essential Element ◽  
Equation Modeling ◽  
Content Type ◽  
And Performance ◽  
The Impact ◽  
Supply Chain Robustness

Purpose Information security is an essential element in all business activities. The damage to businesses from information security breaches has become pervasive. The scope of information security has widened as information has become a critical supply chain asset, making it more important to protect the organization’s data. Today’s global supply chains rely upon the speedy and robust dissemination of information among supply chain partners. Hence, processing of accurate supply chain information is quintessential to ensure the robustness and performance of supply chains. An effective information security management (ISM) is deemed to ensure the robustness of supply chains. The purpose of the paper is to examine the impact of information security initiatives on supply chain robustness and performance. Design/methodology/approach Based on extant literature, a research model was developed and validated using a questionnaire survey instrument administered among information systems/information technology managers. Data collected were analyzed using exploratory and confirmatory factor analysis. Further, to test the hypotheses and to fit the theoretical model, Structural equation modeling techniques were used. Findings Results of this study indicated that information security initiatives are positively associated with supply chain robustness and performance. These initiatives are likely to enhance the robustness and performance of the supply chains. Originality/value With the advancements in internet technologies and capabilities as well as considering the dynamic environment of supply chains, this study is relevant in terms of the capability that an organization needs to acquire with regards to ISM. Benefiting from the resource dependency theory, information security initiatives could be considered as a critical resource having an influence on the internal and external environment of supply chains.

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