The complementarity of IT and HRM capabilities for competitive performance: a configurational analysis of manufacturing and industrial service SMEs

ABSTRACT

Building on the resource-based view (RBV) perspective, we analyse the combined effects of two highly-valued organizational resources, namely information technology (IT) capabilities and human resource management (HRM) capabilities, on the competitive performance of small and medium-sized enterprises (SMEs). Three resource configurations are derived from data on 227 SMEs (121 from the manufacturing sector and 106 from the industrial services sector) through a cluster analysis. These resource configurations are labelled IT Capabilities-dominant Configuration (ITC), e-Business Capabilities-dominant Configuration (e-BC), and HRM Capabilities-dominant Configuration (HRC). This last configuration is the best-performing, followed by the e-BC, with the ITC as the worst-performing. The results also show that manufacturing and service firms are very unevenly distributed within HRC and ITC configurations, suggesting notable differences between the two sectors regarding their respective IT and non-IT capability-building. The fact that service SMEs are overwhelmingly represented (93%) in the worst-performing configuration and completely absent (0%) in the most effective configuration while displaying the strongest IT infrastructure capabilities confirms that the IT productivity paradox is aggravated in service SMEs and calls for further research on this issue.     

海峡西岸区域物流对区域经济增长贡献度的探析

从海峡西岸经济发展现状入手,结合该区域物流市场需求的必然性和可行性分析,采用计量经济模型对区域物流与经济增长进行相关的实证分析,得出了区域货运量、客运量每单位增长对经济增长的贡献度,为政府重视区域物流的发展提供了可靠依据。     

Environmental management practices and financial performance using data envelopment analysis in Japan: The mediating role of environmental performance

This study investigates the relationship between environmental management practices (EMPs) and financial performance (FP) and consequently ascertains whether environmental performance (EP) can mediate the EMPs–FP nexus. Distinctly using data envelopment analysis and generalised method of moments techniques to analyse a comprehensive dataset of Nikkei 225 listed firms from 2007 to 2018 (1920 firm-year observations), our findings first suggest that EMPs have a positive effect on FP. Second, the desired EP can be achieved through the adoption of comprehensive EMPs. Third, improved EP has a substantial impact on shaping the EMPs' effect on FP. These findings are consistent with the predictions of resource-based view and institutional theories. The results are robust to controlling for different types of alternative measures and endogeneities. The findings have important implications for academics, investors, managers, policymakers and regulators.     

Customer service-focused HRM systems and firm performance: evidence from the service industry in Taiwan

Abstract

This study adopts a resource-based view, attraction–selection–attrition theory and a focused approach to examine the link between service-focused human resource management (HRM) systems and firm performance. Internally, we examine employee competency as the ‘black box’ between service-focused HRM systems and firm performance. Externally, we examine the effect of the interplay of a service-focused strategy and service-focused HRM systems in predicting firm performance. We collect data from different sources (i.e. executives, human resource members, and line managers). Using a final sample included 2120 respondents from 175 firms in the service industry in Taiwan, the results show that customer service-focused employee competency transmitted 53% of the effect of customer service-focused HRM systems on firm performance. In addition, when a firm implements a less service-focused business strategy, service-focused HRM systems leads to significant improvement in firm performance. Implications for research are discussed.     

In search of sustained competitive advantage: the impact of organizational culture,competitive strategy and human resource management practices on firm performance

We develop and test a dynamic model of co-specialized resources for competitive advantage. Using matched data from senior executives and human resource managers, we test the direct and interactive effects of high-performance human resource (HPHR) practices and organizational culture on firm performance. Although the HPHR practices were not an important influence on performance, our findings indicate that organizational culture can be a valuable resource for companies.     

海峡西岸经济区产业集群的物流信息化建设

首先分析了海峡西岸经济区产业集群的物流信息化发展现状及存在的问题,然后针对性地提出了产业集群物流信息化建设的总体框架,结合物流信息化建设不同的需求主体,对产业集群物流信息化平台的功能进行了详细的阐述。     

Determinants of long-distance investing by business angels in the UK

The resource-based view (RBV) of the firm has been applied to territories, although academia has not frequently undertaken exploration of RBV applied to clusters in an empirical base. The goal of this paper aims at empirically translating RBV to the territory with a double objective. First, the work seeks to understand which are the cluster's resources and capabilities. Second, the paper evaluates whether a cluster's unique set of resources and capabilities could influence a cluster's performance. Research is applied to leading European ceramic tile clusters located in Spain (Castellon) and Italy (Emilia-Romagna). Comparing clusters in the same industry allows benchmarking and the metrics make more sense. Secondary data and face-to-face semi-structured interviews with managers from the R&D Institutes, institutional agents and Castellon (59) and Emilian (19) firms assess a cluster's resources and capabilities. The employed variables address skilled labour availability, social capital, linkages, business sophistication and network effects. In addition, and through the utilization of financial and productivity data the work analyses whether there are performance differences. Results indicate that clusters have a unique set of resources and capabilities and a certain performance level. On the whole, a cluster's unique set of resources and capabilities matter. The paper offers a methodological approach to tackle empirically the RBV application to clusters.     

Technology sourcing and outward FDI: A study of IT industry in India

Dunning’s eclectic or the OLI framework suggests that MNCs exist and grow due to possession of ownership (O) advantages consisting of the tangible and intangible assets of the firm (including technology); location (L) advantages consisting of production factors such as transportation, infrastructure, and human and natural resources available in the host country; and internalisation (I) advantages owing to firm’s competitive advantage in producing internally rather than selling or licensing technologies to others. There are several studies that have analysed MNCs of developed country origin from the perspective of both developed (home) and other developed or developing (host) countries. Recently, however, MNCs from developing countries are also making their presence felt in the world. Yet, there are hardly any studies that analyse MNCs of developing country origin.Using data on 130 firms from the high-tech Information Technology (IT) industry of India, we investigate whether ownership advantages (O), as proposed in the eclectic theory, holds true for the presence of MNCs from developing countries. Specifically, we analyse whether firm-specific technological advantages generated through differential technology sourcing at home (India) are important in determining inter-firm differences in the decision to invest abroad. The technological sources considered are in-house R&D efforts, import of designs, drawing and blueprints, and import of capital goods. The study reveals that in-house R&D efforts are indeed important for the firms to invest abroad. Size and export intensity of the firm also influence the decision of the firm to invest abroad. The study recommends a proper innovation and resource management strategy for developing country firms for efficient allocation of resources, technology sourcing, and technology assimilation.     

The relationships among corporate social responsibility,corporate image and economic performance of high-tech industries in Taiwan

The economic development of high-tech industries in Taiwan focuses on IC design, opt electrics, semiconductors, computer science and telecommunication. It is necessary for business to understand the relations and significance of the economic performance to take the responsibility and keep a positive corporate image, thus they can earn more admiration and trust from customers. How do they take the social responsibility to improve their corporate image and create the economic performance, and finally reach the top one of the whole world? This study discusses the subject concerning the continuing development of business and relevant issues stated above. We found that 68.1% of high-tech industries in Taiwan are in accordance with business ethics and norms of conduct. Businesses take their responsibility practically by participating in public welfare activities. The more responsibilities they fulfill; the better image they have. High-tech industries should target the social responsibility as their first goal and secondly improve their corporate image to increase the economic performance.     

The longitudinal effect of HRM effectiveness and dynamic innovation performance on organizational performance in Taiwan

This longitudinal study examined whether HRM effectiveness and dynamic innovation performance increase the level and growth rate of organizational performance. In 2002 we sent questionnaires to the top 1,000 manufacturing companies in Taiwan, and 181 valid questionnaires were returned. Otherwise, innovation and organizational performance between 2002 and 2005 were measured by research intensity and labor productivity. Latent growth curve modeling methodology was used to analyze the panel data over the 4-year period. Our results indicated that there was significant individual variability in terms of the intercept and slope factors for research intensity and labor productivity. HRM effectiveness was found to be a significant predictor of the intercept and slope factors of labor productivity. Initially, research intensity had a significant impact on the initial status of labor productivity, and an increasing rate of research intensity could significantly affect the growth rate of labor productivity.     

The impact of cluster connectedness on firm innovation: R&D effort and outcomes in the textile industry

Recent research into the clustering effect on firms has moved away from a simplistic view to a more complex approach. More realistic and complex causal relationships are now considered when analysing these territorial networks. Specifically, this paper attempts to analyse how cluster connectedness moderates the relationship of a firm's innovation effort and the results obtained from this effort. We want to question the commonly accepted direct and positive impact of R&D effort, and moreover, we suggest the existence of a saturation effect and that the level of cluster's inter-connectedness in the cluster moderates this effect. We have developed our empirical study focusing on the Spanish textile industrial cluster. This is a complex manufacturing industry that uses relatively low-technology manufacturing and R&D. Our findings suggest that the degree to which a firm is involved with, or connected to, other firms in the cluster can moderate the effect of the R&D effort on its innovation results. More generally, we aim to contribute to the discussion on the degree to which firms should be involved in the cluster network in order to operate efficiently and gain the maximum competitive advantages. Our findings have implications both in recent cluster and network literature as well for institutional policy.     

Strategic marketing practices and the performance of Chinese small and medium-sized enterprises (SMEs) in Taiwan

This paper reports on a survey of the strategic marketing practices of 218 small and medium-sized enterprises (SMEs) in Taiwan. The survey's results indicate that while the higher performing Taiwanese SMEs give a higher priority to marketing than to other business functions in corporate planning, they are still sales- or production-oriented. The higher performing Taiwanese SMEs are more aware of strategic planning tools, but they make less use of them. They compete with value-added products and good buyer-seller relationships. The findings suggest that broad, small firm marketing principles, specifically generated from countries in the West, to some extent contribute to the success of Taiwanese SMEs. Interestingly, however, the specific marketing practices of these small firms are different from those of their Western counterparts. The research results provide additional evidence to support the theory that both Chinese cultural value orientations and mediating environmental factors play significant roles in shaping the attitudes and behaviour of Taiwanese owner-managers and, in turn, the marketing practices of Taiwanese SMEs.     

后ECFA时代闽台产业合作的政策选择

采用显示性比较优势指数（RCA指数）和出口增长优势指数,从静态和动态两个不同侧面综合反映产业产品的竞争力变化,系统地研究ECFA的签署与实施对福建省三大产业早期收获清单相关产品竞争力的影响,研究发现：ECFA实施后,福建省第一、二产业大多数相关产品的竞争力均有不同程度的提升,比较优势相对较弱的第三产业虽受到一定的冲击,但整体趋势看涨。为此,在后ECFA时代,闽台应以新型绿色农（渔）业、先进制造业和现代服务业为重点,加强闽台产业深度合作,优化福建传统产业,构建闽台产业合作平台,促进投资双向对接,加快建立产业分工合作和互利共赢体系。     

Regional patterns and determinants of birth and survival of new firms in Western Germany

This paper documents and assesses the economic performance of metropolitan technology centres in the USA during the business downturn of the early 2000s. We find that many of the USA's leading high-technology centres have performed at or near the national average, but that some of the nation's most prominent technology centres have fared poorly during the downturn, including Silicon Valley. The main factors that accentuated economic decline in technology centres during the recent recession include: a poorly diversified overall economic base; limited diversity within high-technology industries; relatively high (all industry) wages; and high levels of venture capital funding during the end of the ‘boom’ period of the late 1990s. We find that counter to some of the recent literature on regional development and knowledge-based industry clustering and networking, the rules of regional economic development have not changed dramatically with the so-called ‘new economy’. High-technology regions, just as ‘traditional’ industry regions over the past century, are vulnerable to pronounced economic cycles of growth and decline. The cycles can be particularly pronounced if regional economies are not well diversified and labour costs are not moderated during economic downturns. We also find that venture capital can exaggerate rather than moderate regional economic cycles, such as economic growth years in the USA from the late 1990s to the recession of 2001. The model suggests that free-flowing venture capital dollars may result in an over reliance on these funds, at the expense of a sound business model with sustainable growth and reasonable cash flow. Also, business networks associated with venture capital fund flow might be detrimental at critical economic turning points, often resulting in a rush of dollars in a limited business sector, rather than a diversified set of entrepreneurial ventures.     

Evaluating the prospective effects of alternative regulatory policies on the investment behaviour and environmental performance of a newly liberalised electricity industry in Taiwan

The research explores the potential effects of alternative regulatory policies for electricity market liberalisation on the investment behaviour and environmental performance of the electricity industry in Taiwan. The results provide insights into how the electricity market might evolve under the proposed reform scheme and other possible scenarios. This paper begins by reviewing the characteristics of the industry and how it has developed so far, and follows by studying the planned liberalisation agenda and the main purposes of the regulatory policies. Whether the liberalised electricity market will develop in a desirable direction is investigated by analysing investors’ aspirations for the market and their possible reactions to regulatory policies. The paper focuses on the investment decisions of the generation sector and concludes with assessments of the implications for security of supply, fuel diversity, electricity price and the environment.     

The importance of HR practices and workplace trust in achieving superior performance: A study of public-sector organizations

This paper assesses the impact of bundles of HR practices on workplace trust, job satisfaction, commitment, effort and perceived organizational performance. A theoretical model is developed and tested using data collected through a postal survey of UK local government employees. The results support the hypothesis that HR practices are powerful predictors of trust and organizational performance. These findings demonstrate the need for public organizations to re-evaluate their current battery of HR practices in an attempt to improve overall performance.     

Human resource managers' role consistency and HR performance indicators: the moderating effect of interpersonal trust in Taiwan

This study explores the consistency between human resource (HR) managers' roles and HR performance indicators. In particular it considers the moderating effects of interpersonal trust on the relationship between HR managers' roles and HR performance indicators. We selected 116 HR managers from the top 500 manufacturing companies in Taiwan as our sample, and hierarchical regression analysis was conducted to test our hypotheses. The results showed that the HR managers' roles were consistent with HR performance indicators. Also, a high level of affective trust weakened the positive relationship between HR manager roles and HR performance indicators. Thus we suggested that Chinese companies should design HR performance indicators according to the roles HR managers play. Additionally, when HR managers are playing the role of a strategic partner or change agent, top executives should avoid high affective trust with HR managers.     

Radical innovations in new product development and their financial performance implications: An event study of US manufacturing firms

At the dawn of the 21st century, global competition continues to increase at an accelerating rate and radical innovation is recognized as a potent weapon for firms to achieve sustainable competitive advantages. Academics, practitioners and consultants share the view that radical innovation is important to the long-term financial success of firms. Nevertheless, empirical studies on the relationship between radical innovation and firm performance have been dominated by survey research, which provided little concrete evidence on the financial impact of radical innovation. In this study we traced the financial performance of publicly traded manufacturing firms in the United States that introduced radical innovations over the period 1986-2000 and examined whether radical innovation could lead to superior financial performance in these firms. We employed the event-study method, matching each sample firm with a control group of firms in the same industry with similar pre-event performance and firm size. Our results show that while radical innovation helps firms maintain sales growth and return on sales (ROS), firm profitability in terms of return on assets (ROA) is not significantly improved. In fact, manufacturers suffer from a decline in profitability upon the introduction of radical innovations in new product development.     

The impact of skills and performance on earnings: evidence from retail bankers in Portugal

This article contributes to the debate on wage flexibility by estimating the return to skills and performance for a sample of Portuguese retail bankers. If the relevance of skills in the contemporary workplace is unquestionable, their role as the main determinant of earnings is doubtful. The argument of this article is that firms are not adjusting individual wages according to information obtained from on-the-job appraisals subsequent to employment. The banks show a selective approach to rewarding skills and performance, and they still manage as an internal labour market. The idiosyncratic nature of skills may offer a partial explanation for the persistence of this model. However, the evidence points to the presence of hybrid models. While the return to organisational skills reinforces the role of specific skills, the return to cognitive skills suggests that there is competition around general skills in the banking industry.     

Sustainable development in small and medium enterprises: The role of entrepreneurial orientation in supply chain management

Organizations are under increased pressure to improve their sustainable performance through the adoption of green supply chain management (GSCM) practices. Small and medium enterprises (SMEs) have lagged behind larger corporations due to a number of factors. Chief among these factors is the lack of resources and capabilities. In this study, we investigate whether entrepreneurial orientation as a distinctive firm-level resource contributes to the successful implementation of GSCM practices within SMEs. We use primary data obtained from 316 manufacturing SMEs and analyze the data by using a fuzzy-set qualitative comparative analysis (fsQCA). Our findings show four equifinal configurations of GSCM practices and the components of entrepreneurial orientation (EO) that lead to high environmental performance. Two practices, “eco-design” and “internal environmental management”, are present in all configurations, with the latter being the single core condition. The components of EO are present in all the configurations. Three distinct configurations lead to the simultaneous achievement of high environmental performance and high economic performance. Some noticeable differences appear in these configurations: “internal environmental management” is no longer a core condition, instead external practices (“green purchasing,” “cooperation with customers including environmental requirements,” and “investment recovery”) and “risk-taking” become core conditions. We exptrapolate our findings into a set of propositions that expand theory on the link between entrepreneurial orientation and sustainable performance. Our study provides insights for managers who seek to infuse entrepreneurial thoughts and actions into their green supply chain initiatives.