Does organizational creativity always drive market performance?

This study develops and tests arguments that the relationship between organizational creativity and market performance is channeled through new product development (NPD) capability, and that the indirect effect of creativity on performance, via NPD capability, is conditional upon levels of environment dynamism and market responsiveness. The proposed relationships are tested on a sample of 221 small‐ and medium‐sized enterprises (SMEs) in a major sub‐Saharan African market. Findings from the study indicate that process and product NPD capabilities partially mediate the effect of novelty and usefulness elements of organizational creativity on market performance. The study further finds that while environment dynamism weakens the indirect effects of novelty and usefulness of organizational creativity, via process and product NPD capabilities, on market performance, the effects are strengthened under conditions of greater responsiveness to target market needs. A theoretical contribution from this study is the finding that how organizational creativity dimensions drive market performance is more complex than previously thought: it depends on whether or not organizational creativity components are first used to develop an organization's process and product innovation capabilities, and whether target market environment conditions are dynamic and an organization has ability to respond to target market demands.     

Process innovation strategy in SMEs,organizational innovation and performance: a misleading debate?

This article contributes to the study of process innovation as a growth strategy for SMEs, enriching and complementing the well-researched debate about product innovation. Thus, under-researched process innovation strategies are analyzed, and their antecedents and innovative performance implications explored. The results show that process innovation strategy is mainly shaped by the acquisition of embodied knowledge, which acts as a key mechanism for countering firms’ weak internal capabilities. As process innovation is mainly production oriented, performance consequences are measured using the production process indicators of cost reduction, flexibility and capacity improvement, avoiding traditional misguided measures based on sales, which are more product oriented. Drawing on information for 2,412 firms taken from Spanish CIS data, our results suggest that R&D efforts are not positively related to production process performance, but that the latter is improved by the synchronous co-adoption of organizational and technological innovation. SMEs conducting a process innovation strategy rely heavily on the acquisition of external sources of knowledge in order to complement their weak internal innovative capabilities, and their pattern of innovation shows clear-cut differences from traditional R&D-based product innovation strategies. The article uses a resource-based view framework to generate hypotheses.     

Categorically right? How firm-level distinctiveness affects performance across product categories

In their pursuit of “optimal distinctiveness,” firms need to simultaneously adhere to norms and stand out from the competition. Using longitudinal data from Amazon Launchpad, an online B2C marketplace for entrepreneurial products, we offer a multi-level perspective on optimal distinctiveness from a consumer goods market in which firms are active across different and heterogeneous product categories. Arguing along categorization, organizational identity, and the fit with audiences' theory of value, we challenge the assumption that firm-level distinctiveness, i.e., the distinctiveness of a firm's organizational identity and category claims, delivers equal benefits to all products it offers and showcase the decisive role of product category context. In product categories that share less overlap with other categories and thus occupy a more distinct position in the classification system, products offered by firms with high firm-level distinctiveness benefit, whereas in product categories that share frequent relations to other categories and thus occupy a non-distinct position, products do not benefit at all. This offers researchers and managers alike a new and more nuanced perspective on firm-level distinctiveness: It is not invariably efficient in addressing audiences once the “optimal” level is found, but requires careful consideration of both the firm-level appeal and the product category in which a firm seeks to operate. Firm-level distinctiveness provides firms with the means to increase the differentiation of their own products, yet this effect is most meaningful in product categories with an increasingly distinct position.     

Does it transfer? The effects of pre-internationalization experience on post-entry organizational learning in entrepreneurial Chinese firms

Although organizational learning plays a critical role in the internationalization of firms, researchers have largely focused on learning that occurs after a firm’s international entry (“learning by doing”). Few studies have discussed how a firm’s experiences prior to international entry affect its organizational learning after entry. Using a sample of Chinese internationalizers, we argue that pre-entry characteristics will influence organizational learning after international entry. We argue and show that prior experience with international companies in the domestic market is transferable and does affect an organization’s post-entry learning through a mechanism called analogical reasoning or “learning by analogy.”     

Does relationship psychic distance matter for the learning processes of internationalizing SMEs?

This study builds on two theoretical assumptions: (1) Because SMEs tend to internationalize fast on a wide global scale, their market selections do not seem to be dictated by distance measures. (2) Business relationships seem to be vital for these firms when acquiring knowledge and developing their ongoing businesses in foreign markets. Based on these assumptions, this study applies Linear Structural Relations (LISREL) analysis to investigate the relationships of 314 Swedish SMEs and their most important foreign customers. In specific, we investigate what potential effects relationship psychic distance has on SMEs’ knowledge transfer in ongoing foreign customer relationships. The results demonstrate, rather counter-intuitively, that relationship psychic distance actually enhances knowledge transfer in the investigated customer relationships.     

Is cultural distance a bane or a boon for cross-border acquisition performance?

Literature has offered diverse explanations of the relationship between cultural distance and acquisition performance, pointing to both positive and negative effects. In this paper, we build on these findings and attempt to reconcile the conflicting research streams. We suggest that the effect of cultural distance on cross-border acquisition performance depends on the level of acquisition experience of the acquirer. More internationally experienced acquirers are more likely to be aware of cross-border acquisition pitfalls and are more skilled at resolving acquisition related conflicts; this allows the acquirer to benefit from cultural differences, ultimately leading to higher acquisition performance. Performance of culturally distant cross-border acquisitions launched by inexperienced acquirers is lower because such acquirers are unlikely to have a culturally sensitive anti-conflict action plan, which affects the ability of the acquirer to benefit fully from cultural distances. Albeit we stipulate that experience with domestic acquisitions affects positively the relation between cultural distance and acquisition performance, we do not find support. We empirically test our model with a comprehensive database of 1223 cross-border acquisitions launched during the 2009–2010 period.     

Will enterprise social networking systems promote knowledge management and organizational learning? An empirical study

ABSTRACT

Nowadays, enterprise social media practitioners and researchers are keen to know how the enterprise usage of social media can be converted into the improved organizational performance. Meanwhile, organizational learning has long been considered as one of the measures of organizational performance. This article investigated the impact of enterprise social networking systems (ESNS) usage on knowledge management processes and organizational learning; in particular, we examined the mediating role of knowledge creation and knowledge sharing. Four theories from sociology and strategic management were used to build the hypotheses in the research model. An online survey was conducted to empirically test the model. Our study results showed that ESNS usage directly and indirectly influences organizational learning; and that knowledge management processes (knowledge creation and sharing) mediate the path between the two. This study contributes to the existing literature on enterprise social media for three reasons. First, it is among the first to connect the three independent concepts (social media, knowledge management, and organizational learning) and explore their relationships in one theoretical framework. Second, this work also specifically examines the influence of ESNS (Yammer in this case) on organizational processes and outcomes. Third, this is a pioneering study that employs multiple theories to address the research questions under the organizational social media context. Therefore, the research gives implications for both practitioners and scholars who are interested in understanding the effectiveness of ESNS usage in the modern organizations today.     

How does CRM technology transform into organizational performance? A mediating role of marketing capability

Customer relationship management (CRM) technology has attracted significant attention from researchers and practitioners as a facilitator of organizational performance. Even though companies have made tremendous investments in CRM technology, empirical research offers inconsistent support that CRM technology enhances organizational performance. Given this equivocal effect and the increasing need for the generalization of CRM implementation research outside western context, the authors, using data from Korean companies, address the process concerning how CRM technology translates into business outcomes. The results highlight that marketing capability mediates the association between CRM technology use and performance. Moreover, a customer-centric organizational culture and management system facilitate CRM technology use. This study serves not only to clarify the mechanism between CRM technology use and organizational performance, but also to generalize the CRM results in the Korean context.     

A double-edged sword? The moderating effects of control on firm capabilities and institutional distance in explaining foreign affiliate performance

By drawing from the internalisation and institutional theories, as well as the organisational capability perspective, the paper analyses the moderating effects of parent control over foreign affiliates in relation to firm capabilities and institutional distance and their performance effects. These relationships are explored in the context of new MNEs from Poland as a mid-range emerging economy, for which ownership choices constitute critical decisions given their early stage of internationalisation. Our findings show that while firm capabilities drive foreign affiliate performance, the increase of parent control limits this beneficial effect, suggesting the potential occurrence of organisational inertia and reduction of learning in foreign markets. On the contrary, we also find partial evidence that the increase of parent control reduces the negative effect of institutional distance computed based on the Mahalanobis formula. Accordingly, the study suggests a certain ambiguity of parent control in affecting affiliate performance.     

Modular assembly in the car industry—an analysis of organizational forms’ influence on performance

In modular assembly, car manufacturers can choose to assemble the modules internally or to outsource the units assembling the modules. These module assembly units (MAUs) can be located inside or outside the assembly plants. This paper analyzes the conditions provided for MAU performance by ownership and location, the constitutive dimensions of a MAU's organizational form. Based on a case study at Volvo and theoretical arguments, the paper shows that organizational forms provide different conditions for MAU performance. It is concluded that no organizational form is best and that different forms should be used. It is also concluded that companies must control MAUs, which influences how the conditions provided by different organizational forms can be utilized.     

How do managers decide on internationalization processes? The role of organizational slack and performance feedback

This study draws on the behavioral theory of the firm to the postulate relationships between organizational slack and performance aspirations, and internationalization processes. Based on longitudinal data (2000–2008) from 772 publicly listed firms in Taiwan, the findings indicate that organizational slack significantly influences the internationalization processes. Specifically, firms with high organizational slack that have performance that falls below aspirations managers are more likely to exhibit (1) a rapid pace, (2) a wider scope, and (3) an irregular rhythm in their internationalization processes. In addition, we observed an interaction effect between performance feedback and different levels of slack on the internationalization processes.     

To agree or not to agree? A meta-analytical review of strategic consensus and organizational performance

The premise underlying most of the research on strategic consensus is that a higher degree of consensus has a positive impact on organizational performance. Empirical studies, however, have produced inconsistent results for the strength and direction of this relationship, as well as for the role of potential moderators. With this meta-analysis, we provide empirical support for a positive effect of strategic consensus on organizational performance, and offer evidence for the existence of several moderators of the aforementioned relationship, which we then discuss as fruitful avenues for future research. This study enhances our understanding of this important strategy process construct and benefits managerial practice by discussing means for improving the realization and implementation of strategies.     

Do trend following strategies work in Chinese futures markets?

We examine the performance of trend following strategies in Chinese commodity futures markets. We provide evidence that trend following‐based technical trading rules yield better performance than the buy and hold strategy on both individual contracts and sorted portfolios. The outperformance is robust to transaction costs, data frequency, sub‐prime crisis, shorting constraint, delayed execution, liquidity and parameters. Finally, the profitability of the trend following strategy may be subject to data snooping bias.     

The balanced scorecard in China: Does it work?

The balanced scorecard (BSC) is a strategic management system that has been developed and applied in the West for 20 years. The BSC was introduced in China at the turn of the millennium and is widely used in profit and non-profit organizations, from headquarters to subsidiaries in the country. To our knowledge, research on the effectiveness of the BSC in emerging economies is rare, and there are very few studies dealing with the problems with the BSC in China. This article attempts to summarize the limitations of the BSC from Western literature, to determine the obstacles associated with the deployment of the BSC in China, and to provide recommendations for Western firms in terms of how to successfully implement the BSC in China.     

Stock options,restricted stock,salary, or bonus? Managing CEO compensation to maximize organizational performance

CEO pay has gone through remarkable changes over the past two decades. The most striking new features have been the increased use of stock options in the early 2000s, and of restricted stock since then. Both forms of stock-based compensation are intended to resolve the agency problem that occurs when CEOs do not act in the best interests of stockholders, but each has its advantages and limitations. In this instalment of Organizational Performance, we discuss the history of their use and similarities and differences between the two, and argue that both are often overused. Bonuses based on strategic goals, on the other hand, may be underused. We conclude with a contextual approach to guide boards of directors in making choices among the forms of CEO compensation—stock options, restricted stock, salary, and bonus—to incentivize CEOs to work toward maximizing organizational performance. Briefly, stock options are most appropriate for growth firms, and restricted stock for stable firms. Both forms of stock-based compensation are more appropriate for new than for long-tenured CEOs.     

Web 2.0, social capital and work performance in service companies: the employees’ view

Web 2.0 networks have provoked a revolution in the last years due to their capacity to modify human relationships, particularly in business contexts. Social capital, as a crucial intangible asset embedded in Web 2.0 networks, can be extremely helpful to build and optimize personal and organizational power or resources. This exploratory study empirically analyzes the use of Web 2.0 networks for work-related purposes under a new perspective: the perception of Spanish service companies’ employees. Results show a reasonable employee use of Web 2.0 applications with work-related purposes, and identify the main benefits from them and relevant differences in their use.     

Why do cognitive prompts hurt learning in older adults?

The purposes of the present investigation were to attempt to replicate the negative effects for learning prompts in older adults reported by Cavanagh, Kraiger and Peters (2016), determine if the impact of learning prompts depends on type of prompt, and investigate the two possible explanations of the negative impact of prompts – increased cognitive load and higher negative affect. Learning prompts refer to short text inserted into training content to encourage trainees to rehearse new content or engage in meta‐cognitive activity. Although learning prompts generally lead to greater learning in training, Cavanagh et al. reported a negative impact for prompts on measures of recall and transfer. Using similar training materials and learning outcome measures, we conducted two studies using both elaboration and meta‐cognitive prompts in online training. In the first, older adults (N = 194) between 55 and 70 years and younger adults (N = 218) were randomly assigned to either a meta‐cognitive, elaboration or no prompts (control) condition. Older adults learned less and reported greater mental effort than younger learners, but these effects were not moderated by prompt condition. In the second, N = 57 older adults were randomly assigned to the same three prompts conditions listed above. Older adults learned less with prompts than without, but there were no differences between conditions in mental effort or negative affect. In sum, we found negative effects for learning prompts in older adults in two studies, but found no evidence to suggest that these effects were due to either increased cognitive load or greater negative affect.     

Do career satisfaction and support mediate the effects of justice on organizational citizenship behaviour and counterproductive work behaviour?

Following Lavelle, Rupp, and Brockner's ( 2007 ) target similarity framework, we propose that perceptions of support and career satisfaction mediate the influence of justice perceptions on citizenship and counterproductive performance. Structural equation modelling results from 356 employees supporting partial mediation. Collectively, the model explained 19% of the variance in perceptions of organizational support, 44% in perceived supervisor support, 33% in career satisfaction, 35% in citizenship performance directed toward the supervisor, 42% in citizenship performance directed toward the organization, 49% in job/task conscientiousness citizenship performance, 9% in counterproductive performance toward the supervisor, and 20% of the variance in counterproductive performance directed toward the organization. We argue that distributive, procedural, informational, and interpersonal dimensions of organizational justice follow different pathways and variously influence organizational outcomes. We discuss the implications of the results for the target similarity framework and more generally for human resources management. Copyright © 2015 ASAC. Published by John Wiley & Sons, Ltd.