Augmenting innovation project portfolio management performance: the mediating effect of management perception and satisfaction

Firms face the challenge of efficiently and effectively investing scarce resources in innovation projects in order to sustain or develop a firm's long‐term competitive advantage and sustainable growth. Innovation project portfolio management (IPPM) describes a firm's dynamic capability to assess the challenge of evaluating, selecting, and prioritizing innovation projects. The particular impacts of method usage, criteria usage, IPPM design, information availability, and internal interactions on management perception and satisfaction as well as on IPPM performance and innovativeness are hypothesized and tested. We found that methods and criteria play a negligible role in the IPPM context. IPPM design elements, like transparency and formality, are key drivers of high IPPM performance. Information availability is a key construct in driving IPPM performance, as well as management perception and satisfaction. Relevance of IPPM is supported by revealing IPPM performance's positive impact on firm performance, innovation project performance, and firm's innovativeness.     

Entrepreneurial orientation and firm performance: The role of knowledge creation process

This study examines the relationships among entrepreneurial orientation, knowledge creation process, and firm performance using survey data from 165 entrepreneurs. We use LISREL analysis to test the direct and indirect effects of the entrepreneurial orientation on firm performance. Knowledge creation process - operationalized to reflect the dimensions of socialization, externalization, combination, and internalization - is used as the mediating variable for explaining the relationship between entrepreneurial orientation and firm performance. The results indicate that the significance of the direct effect of entrepreneurial orientation on firm performance is reduced when the indirect effect of entrepreneurial orientation through knowledge creation process is included in a total effect model. Consequently, entrepreneurial orientation is positively related to firm performance, and knowledge creation process plays a mediating role in this relationship.     

HRM systems and firm performance: The mediation role of strategic orientation

Prior research evidence of a set of internal fit human resource practices supports a positive human resource management (HRM)–performance relationship. Yet we know very little about exactly what drives the HRM–performance (also known as strategic HRM) relationship. In response to the call for suitable theories to explore the “black box” between HRM and firm performance, this study is designed to extend previous work by examining how the relationship between HRM and strategic orientation influences firm performance. Specifically, it examines the relationship between HRM systems, strategic orientation, and performance in a cross-section of 190 firms in Singapore. The research hypotheses were tested using multiple regression and LISREL. As predicted, there was an indirect effect between Inducement and Investment HRM systems and firm performance, such that the relationship was mediated by strategic orientation. In particular, Singaporean firms which implemented product and market differentiation strategies would mediate the HRM systems–performance relationship. Implications for research and managerial practices are provided.     

The free cash flow hypothesis for sales growth and firm performance

business is business! And business must grow –Dr. Seuss, The Lorax The paper investigates the agency argument that sales growth in firms with free cash flow (and without strong governance) is less profitable than sales growth for firms without free cash flow. It also tests whether strong governance conditions improve the performance of firms with free cash flow and/or limit the investments in unprofitable sales growth. Consistent with agency theory, firms with free cash flow gain less from sales growth than firms without free cash flow. But different governance conditions affect sales growth and performance in different ways. Having substantial management stock ownership mitigates the influence of free cash flow on performance, despite allowing higher sales growth. In contrast, outside blocks held by mutual funds reduce sales growth substantially, but does not increase performance from sales growth. Copyright © 2000 John Wiley & Sons, Ltd.     

The relationship between corporate entrepreneurship and strategic management

This study examines the relationship between corporate entrepreneurship intensity and five specific strategic management practices in a sample of 169 U.S. manufacturing firms. The five strategic management practices include: scanning intensity, planning flexibility, planning horizon, locus of planning, and control attributes. The results of the study indicated a positive relationship between corporate entrepreneurship intensity and scanning intensity, planning flexibility, locus of planning, and strategic controls. The fine‐grained nature of these results may be of practical use to firms that are trying to become more entrepreneurial and may help researchers better understand the subtleties of the interface between strategic management and corporate entrepreneurship. Copyright © 1999 John Wiley & Sons, Ltd.     

The relationship of strategic planning to financial performance

The relationship between financial performance and characteristics of corporate planning systems was investigated/Planning systems that combined an external focus with a long-term perspective were found to be associated with superior 10-year total return to stockholders. A lagged relationship between such systems and 4-year average annual returns to investors also was identified.     

Pricing superheroes: How a confident sales team can influence firm performance

Despite strong evidence of substantial impact on the bottom line, most companies counter-intuitively neglect the pricing function — as do most scholars. Although pricing is gaining in popularity, only a few articles published in major marketing journals focus on it, and scholars have long asked how organizational and behavioral characteristics of firms affect the link between pricing practices and firm performance. To address these practical and theoretical deficits, we surveyed 507 professionals involved in account and sales management at business-to-business (B2B) firms from around the world to measure the influence of five organizational factors on sales collective confidence associated with pricing and relative firm performance. Results demonstrate that four of the five factors (pricing capabilities, delegation of pricing authority, incentive and goal systems, and knowledge before negotiation) positively and significantly influence sales collective confidence associated with pricing. In turn, we find collective confidence in the sales force to be significantly and positively related to relative firm performance, suggesting that firms that are able to design organizations and allocate resources in a way that maximizes pricing confidence can achieve superior financial outcomes. In aggregate, these organizational factors promote competitive advantage and comparative firm performance.     

Value creation in innovation ecosystems: how the structure of technological interdependence affects firm performance in new technology generations

The success of an innovating firm often depends on the efforts of other innovators in its environment. How do the challenges faced by external innovators affect the focal firm's outcomes? To address this question we first characterize the external environment according to the structure of interdependence. We follow the flow of inputs and outputs in the ecosystem to distinguish between upstream components that are bundled by the focal firm, and downstream complements that are bundled by the firm's customers. We hypothesize that the effects of external innovation challenges depend not only on their magnitude, but also on their location in the ecosystem relative to the focal firm. We identify a key asymmetry that results from the location of challenges relative to a focal firm—greater upstream innovation challenges in components enhance the benefits that accrue to technology leaders, while greater downstream innovation challenges in complements erode these benefits. We further propose that the effectiveness of vertical integration as a strategy to manage ecosystem interdependence increases over the course of the technology life cycle. We explore these arguments in the context of the global semiconductor lithography equipment industry from its emergence in 1962 to 2005 across nine distinct technology generations. We find strong empirical support for our framework. Copyright © 2009 John Wiley & Sons, Ltd.     

Relational key account management: Building key account management effectiveness through structural reformations and relationship management skills

Literature has widely recognised the importance of key account management (KAM) in building long-term customer relationships. Although KAM grounds significantly on the relationship marketing theory, most empirical studies focus on the financial impact a KAM programme can produce. Hence, only normative work can advise practitioners on the implications from adopting a relational approach in managing their business with customers who can help the supplier realise a broader set of strategic objectives. Drawing from 304 cases of different suppliers, this article seeks to start filling this gap in the literature and offer empirical evidence regarding the structural and relational implications from a KAM programme. In summary, the findings suggest that adopting a relational perspective through the development of key account management orientation (KAMO) will result in certain, necessary, structural reformation while allowing for specific relational skills to develop. Consequently, supplier's performance also improves. Moreover, this chain of effects remains strong independently of resources available to the supplier, suggesting that KAM can be a significant basis for developing a competitive advantage irrespectively of the supplier's size.     

Strategic intelligence activity: The management of the sales force as a source of strategic information

Environmental information is very important to strategic management. Human sources are among the most commonly used sources of information and among them, boundary people, such as salesman, hold a privileged position. One dimension which measures the quality of a strategic response is its speed of implementation. Recognizing this, to ensure a good (fast) strategic response, fast communication of information is imperative. This article focuses on factors which influence the speed of communication of environmental information. It is based on an exploratory research which has been carried out on a sample of salesmen of an industrial company. Management policies regarding the use of the sales force as an efficient source of strategic information are proposed in conclusion.     

Value creation in university‐firm research collaborations: A matching approach

University‐based technological opportunities are often exploited through joint corporate and academic entrepreneurship activities such as university–industry research collaborations. This paper explores the partner attributes that drive the matching of academic scientists and firms involved in these relationships. The paper models the formation of firm–faculty partnership as an endogenous selection process driven by synergy between partners' knowledge‐creation capabilities. The main findings indicate that faculty–firm matching is multidimensional: firms and scientists complement each other in publishing capabilities but substitute each other in patenting skills. Furthermore, firms and scientists with specialized knowledge create more value by teaming with more knowledge‐diversified partners. The paper contributes to the literature on university–industry knowledge transfer and, more generally, to the literature on alliance formation.     

The implications of strategy and social context for the relationship between top management team heterogeneity and firm performance

This research reexamines the link between top management team (TMT) heterogeneity and firm performance. Specifically, I theorize that the effects of education, work experience, and tenure on performance will depend upon the top management team's strategic and social context. In a test of such theorizing, I find that (1) the positive relationships between TMT educational, functional, and tenure heterogeneity and performance are contingent on complexity, as indicated by a firm's international strategy and, (2) such relationships are clearly stronger in short‐tenured top management teams. The theory and results presented here provide impetus for future studies, as well as suggest to upper echelon researchers that they think more critically about the conditions under which demographic characteristics are most likely to influence organizational outcomes like performance. Copyright © 2002 John Wiley & Sons, Ltd.     

Environmental variation,strategic change and firm performance: A study of railroad deregulation

Concepts from the literature on the relationship between environmental variation and strategic change are used to analyze the effects of deregulation on strategic management in the railroad industry. Specific hypotheses are presented about the impact of regulation and change in regulation on strategy, strategic change and performance. A survey of experts identified the strategies of 27 railroads prior to and after deregulation. Five different railroad strategies and five different kinds of strategic changes are identified and described. Results suggest that most firms changed their strategies in response to environmental variation, and that those that did change their strategics out-performed those that did not. Among the strategic changes, those involving innovation and contingency strategies were found to be the most profitable. Other empirical results are presented and discussed.     

Interlocks and firm performance: The role of uncertainty in the directorate interlock‐performance relationship

We examine how uncertainty influences the performance effects of directorate interlocks. Our study offers a new perspective of directorate interlocks as mechanisms that enable firms to improve performance when confronted with greater uncertainty, suggesting that uncertainty positively moderates the interlock‐performance relationship. This contrasts with the view based on resource dependence theory suggesting networks reduce uncertainty and enhance firm performance, implying that uncertainty mediates the interlock effect upon performance. Using a sample of 3,745 firms across manufacturing industries in the United States during the period 2001–2009, we find support for the moderation argument and less convincing support for mediation, suggesting that firms may not form interlocks necessarily to reduce uncertainty. Instead, firms may create interlocks to enable adaptation and enhance performance when confronted by uncertainty. Copyright © 2013 John Wiley & Sons, Ltd.     

Behind organizational slack and firm performance in China: The moderating roles of ownership and competitive intensity

Extensive studies of the organizational slack–performance relationship offer mixed findings in developed economies while little research attends to transition economies. Replicating and extending earlier work by Tan and Peng (2003), this study examines the relationship between organizational slack and firm performance in China and focuses on the moderating effects of firm ownership and competitive intensity. Empirical findings based on longitudinal data from 60,945 firms during 1998–2002 suggest that the impact of organizational slack on performance is stronger for private enterprises than for SOEs and foreign-invested enterprises. Furthermore, industry competitive intensity positively moderates the effect of organizational slack on performance. In a three-way interaction effect, the moderating effect of competitive intensity on the organizational slack–performance relationship is weaker in SOEs than in private enterprises and foreign invested enterprises.     

Strategy type and performance: the influence of sales force management

The basic premise of the strategy implementation literature is that different business strategies require different configurations of organizational practices to achieve optimal performance. Sales force management is a key functional activity and should contribute to the successful implementation of business strategy. In this study, we examine the relationship between multiple sales force management practices and performance within each of Miles and Snow's (1978) strategy types. The explanatory power of the eight models tested is quite high (incremental adjusted R² ≥ 0.25 for six of the eight models). Thus, we find substantial support for the general proposition that the different strategy types require individualized profiles of sales force management practices for optimal effectiveness and that sales force management is important to the successful implementation of business strategy. Copyright © 2000 John Wiley & Sons, Ltd.     

Value creation in acquisitions: A re-examination of performance issues

This study provides a conceptual framework and an empirical methodology to assess the extent of value creation in acquisitions. Arguments are presented to examine why related acquisitions might not outperform unrelated acquisitions on average. New measures of value creation are developed which resolve the difficulties with measures used by earlier researchers. In addition, the influence of the classification scheme used to identify acquisition types, and the impact of the relative size of the target to the bidder, on the measurement of the extent of value creation, is examined. The empirical results indicate that value is created in both unrelated and related acquisitions. Further, the data do not appear to indicate that related acquisitions create more value than unrelated acquisitions on average.     

Learning goal orientation and creative performance: The differential mediating roles of challenge and enjoyment intrinsic motivations

We develop a theoretical model to account for the effect of learning goal orientation on creative performance by distinguishing two dimensions of intrinsic motivation as mediators. Challenge intrinsic motivation is concerned with the interest in and excitement of solving problems and tackling complex tasks, whereas enjoyment intrinsic motivation is concerned with the enjoyment of task activities for self-expression and self-entertainment. Results from a sample of 189 Chinese employees support this model and show that learning goal orientation had significant positive relationships with both dimensions of intrinsic motivation, but only challenge intrinsic motivation was significantly related to creative performance and mediated the positive relationship between learning goal orientation and creative performance. As predicted, intellectual stimulation, a dimension of transformational leadership, showed a moderating effect, such that learning goal orientation was less strongly related to challenge intrinsic motivation when intellectual stimulation was high. In addition, a moderated mediation effect was found, such that the mediating effect of challenge intrinsic motivation for the relationship between learning goal orientation and creative performance was weaker when intellectual stimulation was high. No such moderation effect was found for enjoyment intrinsic motivation, providing further support for the differential roles of these two dimensions of intrinsic motivation.     

Industrial distributor selling: The roles of outside and inside sales

This paper examines the current practice of industrial distributor selling, focusing on the roles played by the outside and inside sales forces. Based on benchmark survey results, the present composition, responsibilities, and compensation programs of outside and inside sales forces are compared and contrasted. Some predictions are given on likely changes in selling practices, drawing upon interviews with managers, and managerial implications of them, are offered.