To change or not to change–antecedents and outcomes of strategic renewal in SMEs

Companies need to constantly renew themselves to remain competitive in rapidly changing market environments, regardless of their size or age. Even though strategic renewal is a crucial factor for sustainable success of organizations, it is only an emergent area in literature. This article examines potential antecedents of strategic renewal and impact on firm performance. Based on 104 companies’ responses to a structured questionnaire, the empirical findings demonstrate that strategic renewal positively impacts firm performance, and that entrepreneurial orientation and organizational learning are antecedents. From a practical managerial viewpoint, our results suggest that firms following a strategic renewal approach can increase the long-term success of their organizations: Firms that are entrepreneurially oriented and willing to learn can successfully manage strategic renewal.     

Encouraging organizational performance through the influence of technological distinctive competencies on components of corporate entrepreneurship

Firms’ technological distinctive competencies (TDCs) help CEOs to confront their reality based on technological knowledge to achieve and exploit competitive advantage by encouraging the different dimensions of corporate entrepreneurship (innovation, new business venturing, proactiveness and self-renewal). The main purpose of this paper is thus to highlight how companies that strive to improve technological competencies within the firm achieve higher organizational performance through different components of corporate entrepreneurship and their interrelationships. This study seeks to fill this research gap by analyzing theoretically and empirically how TDCs enhance innovation, new business venturing and proactiveness and their interrelationships to achieve self-renewal and thus improve firms’ organizational performance. The methodology used is LISREL analysis. We test the model with data from 201 Spanish organizations. Our research contributes theoretical and empirical arguments on the value of TDCs to the organization, arguments that are especially important because organizations sometimes fail to achieve sustainable competitive advantage due to their limited understanding of the relationships between these strategic variables.     

From original equipment manufacturing to branding: entrepreneurship,strategic leadership,and Taiwan’s firm transformation

This paper investigates firm transformation from original equipment manufacturing (OEM) to original brand manufacturing (OBM) based on variant experiences of Taiwan’s top global brands. Taking the competitive advantage of practicing OEM for multinational corporations (MNCs), latecomer firms can generate capital and accumulate capabilities by engaging with the global production network. Rarely does every firm transform into a global enterprise. We propose that only entrepreneurs with strategic leadership competence, which serves to manage a delicate balance between stability and change in a firm, are capable to facilitate firm transformation from OEM to a global enterprise practicing OBM. We provide an analytical framework that combines the research fields of entrepreneurship, strategic management, and leadership to analyze firm growth and firm transformation of Taiwanese firms. In light of possible branding dilemma when straddling dual-track businesses, successful transforming firms can alleviate this problem either by separating their OBM units from their OEM units or by creating a symbiotic relationship with their MNC customers. How Taiwanese firms first took advantage of initiating OEM to create capital and capabilities and later transformed into OBM provide useful experiences for other latecomer firms.     

A comparative analysis of corporate entrepreneurial orientation between selected firms in the Netherlands and the USA

Firms in turbulent or fast-changing environments must continually innovate to remain competitive. This study examined how a firm's strategic management practices influence its entrepreneurial behaviour as compared to an international competitor. Four firms in the Netherlands were each matched with a key competitor in the USA. Several survey measures related to the strategic management process were used along with an instrument related to corporate entrepreneurship practices. Both managers and employees participated in the study. Results revealed significant differences between the Netherlands firms and the US competitors in entrepreneurial orientation. Results also supported these comparative differences along three key dimensions of strategic management as they relate to corporate entrepreneurship. The final set of data revealed a relationship between corporate entrepreneurship and three measures of firm performance. The implications focus upon the key role that culture may play in facilitating corporate entrepreneurship and adaptable organizational practices. Suggestions for further research are also made.     

Exploring entrepreneurs’ human capital components and effects on learning orientation in early internationalizing firms

This study aims to enhance our understanding of the role of entrepreneurs’ human capital components and the influences on learning orientation in early internationalizing firms. Drawing from the integration of human capital theory, resource-based view theory, learning theory, and on the literature of international entrepreneurship and strategic management, a research model is proposed and consists of five constructs, namely international business skill, international business knowledge, entrepreneurial competence, managerial competence and learning orientation. The empirical analysis was carried out on a sample of 158 early internationalizing firms in a food industry in Thailand. Partial least square technique was conducted to test the structural equation models and hypotheses. This followed by some illustrative case studies as supplementary to the empirical findings. The results confirm our hypotheses and support the proposed research model. This study yielded interesting findings in which an entrepreneur’s skill and knowledge in international business enhance entrepreneurial and managerial competencies. These competencies, in turn, play an important role in influencing a firm’s strategic learning orientation     

Strategic alliances,organizational learning,and competitive advantage: The HRM agenda

In the context of strategic alliances that involve competitive collaboration, the competitive advantage of a firm can be protected only through its capability to accumulate invisible assets by a carefully planned and executed process of organizational learning. As this process is embedded in people, many of the necessary capabilities are closely linked to HRM strategies and practice. The article advocates that the transformation of the HR system to support the process of organizational learning is the key strategic task facing the HR function in firms engaged in international cooperative ventures.     

公司创业导向、能力、战略与竞争优势的关系研究

旨在分析创业导向对于企业竞争优势的影响机制,重点进行公司创业、企业能力、竞争战略、竞争优势等相关理论的探究和模型的构建,并在理论分析的基础上提出若干命题。分析表明,创业导向通过企业能力和竞争战略内外两条互为补充的路径,实现竞争优势。不仅丰富了公司创业和战略管理理论研究,还为企业如何在动态、复杂、不确定的全球环境中生存和发展提供借鉴和指导。     

Organizational capacity for change and firm performance in a transition economy

This study explored some human resource and human systems' aspects of the competitive dynamics for firms attempting to survive and prosper within Russia, a highly volatile transition economy. Overall, this study adds to our understanding of international strategic human resource management, dynamic capabilities, and the generation of competitive advantage within transition economies.

We found that a relatively new construct derived from the dynamic capabilities and organizational change literatures, known as ‘organizational capacity for change,’ is positively associated with firm performance within a wide variety of Russian firms. Furthermore, we find that the relationship between organizational capacity for change and firm performance is stronger when there are relatively high levels of uncertainty with the task environment. Finally, we found that organizational capacity for change is an important attribute in all sizes of organizations, not just for large organizations as hypothesized.     

When do Dynamic Capabilities Lead to Competitive Advantage? The Importance of Strategic Fit

Recent studies suggest the relationship between dynamic capabilities and competitive advantage may be jointly affected by organizational and environmental factors. We enrich this nascent perspective by developing a configurational theoretical framework – underpinned by the mechanism of strategic fit – wherein dynamic capabilities lead to a competitive advantage when they support a strategic orientation appropriate for the levels of dynamism and munificence in the environment. Results of a fuzzy‐set Qualitative Comparative Analysis using primary data show that dynamic capabilities lead to a competitive advantage in dynamic, munificent environments by enabling the combination of differentiation and low‐cost orientations. In stable, non‐munificent environments, dynamic capabilities are effective in support of a low‐cost orientation. The central insight of this study is that the relationship between dynamic capabilities and competitive advantage is contingent upon the strategic fit between organizational and environmental factors, contributing to a more rigorous and configurational dynamic capabilities view.     

动态能力视角下的商业银行战略转型与经营绩效关系的理论与实证研究——以浦发银行为例

动态能力是企业可持续竞争优势的来源,战略转型能力是一种整合、建立和再配置内外部资源的动态能力。为此,本文在构建动态能力与可持续竞争优势的关系模型的基础上,从我国商业银行成功转型会获得财务资源优势的角度出发,设计了衡量商业银行战略转型是否成功的理论分析模型。为验证其模型的客观性,选择中国浦发银行为案例研究对象,在分析研究浦发银行战略转型历程的基础上,运用因子分析法对浦发银行在2001～2009年的不同发展阶段的经营绩效进行分析总结,以验证评价其如何成功地实现战略转型。本文研究发现：企业想要了解其战略转型是否获得了由动态能力决定的持续竞争优势,可借助于衡量商业银行战略转型成功的理论分析模型;正确的战略转型有利于银行提高经营绩效;为此,银行需要继续有效地实施零售业务战略、强化银行内部治理机制改革和现代信息技术网络平台的建设,这是银行获得持续竞争优势的关键。     

Strategic human resource management,human capital and competitive advantage: is the field going in circles?

The resource‐based view (RBV) of the firm has been consistently used as a backdrop in strategic human resource management (SHRM) research and has the potential to bridge the ‘micro–macro’ divide. The tension between the SHRM and the strategic human capital literature, however, signifies that RBV has not reached its potential. In this paper, we begin with a brief review of the conceptual logic linking human resource management (HRM) practices and firm outcomes that aim at highlighting the different treatment of RBV in the SHRM and strategic human capital literatures. We then propose a conceptual model that suggests that HRM practices are not simple levers that enable firms to create sustainable competitive advantage, as most of the strategic human capital research postulates. On the contrary, we argue that HRM practices can contribute to a firm's sustainable competitive advantage not only by enhancing employees' ability, and offering motivation and opportunities, but also by shaping supply‐side and demand‐side mobility constraints.     

Influence of technological support,skills and competencies,and learning on corporate entrepreneurship in European technology firms

In the today′s changing environment, firms are hardly competing with each other to achieve a competitive advantage that can differentiate them from others and improve their organizational performance. In this sense, it is crucial to develop corporate entrepreneurship and promote strategic variables that foster it.The aim of this paper is to highlight the importance of different technological variables (top management support to technology, technological skills and technological distinctive competencies) and organizational learning on corporate entrepreneurship, and thus analyze the influence of corporate entrepreneurship on organizational performance in the context of technology firms.A sample of 160 European technology firms was selected from the database Amadeus in 2009 with CEOs as our main informants. The hypotheses studied are empirically confirmed by using a hierarchical regression model.     

Stages of Organizational Transformation in Transition Economies: A Dynamic Capabilities Approach

How do organizations previously dominated by the state develop dynamic capabilities that would support their growth in a competitive market economy? We develop a theoretical framework of organizational transformation that explains the processes by which organizations learn and develop dynamic capabilities in transition economies. Specifically, the framework theorizes about the importance of, and inter‐relationships between, leadership, organizational learning, dynamic capabilities, and performance over three stages of transformation. Propositions derived from this framework explain the pre‐conditions enabling organizational learning, the linkages between types of learning and functions of dynamic capabilities, and the feedback from dynamic capabilities to organizational learning that allows firms in transition economies to regain their footing and build long‐term competitive advantage. We focus on transition contexts, where these processes have been magnified and thus offer new insights into strategizing in radically altered environments.     

Sustainable Development in Supply Chain Management: The Role of Organizational Learning for Policy Implementation

Implementing sustainable policies in supply chains is a significant challenge for businesses. Recent evidence has shown that failure to manage supply chains responsibly can have significant impacts on firms' reputation and financial performance. In this paper, we develop a conceptual framework, which focuses on organizational learning, and outline specific channels through which firms can generate learning processes and build appropriate capabilities to successfully implement social and environmental supply chain policies. Drawing on 57 in‐depth interviews from a cross‐sectional sample of seven UK and nine German companies, we empirically assess our conceptual framework in accordance with a grounded, in‐depth case study analysis approach. We find compelling evidence to suggest that organizational learning is an important factor for a successful implementation of sustainable supply chain management. Organizational learning is often established as a result of training, knowledge acquisition, stakeholder engagement and collaboration between intra‐organizational and inter‐organizational partners, including suppliers and NGOs. Nonetheless, our results also emphasize that firms often have few systematic processes through which organizational learning is developed, and that such learning processes are often ad hoc at best, which in turn has significant implications for the responsible supply chain practices. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment     

The behavioural gap between entrepreneurial SME’s and high growth: evidence from Canada

Entrepreneurial orientation (EO) describes a firm’s attitude towards entrepreneurial activity; however, it does not measure the specific behaviors likely to contribute to high growth. This research applies the resource-based and dynamic capabilities views to propose a mediation model between EO and high growth. The theoretical framework is drawn from the strategic management and entrepreneurship literature. Competing models are tested against a sample of Canadian SMEs to validate the proposed explanation for the presence of high-growth firms among the population. The study finds that the relationship between EO and high growth is perfectly mediated by innovation performance, a behavioral measure of innovation. This research contributes to firm growth theory while providing further insight into the drivers of high growth useful to policy makers endeavoring to stimulate, and overcome barriers to, entrepreneurship and innovation. Determining the factors associated with firm growth can have implications for management as well as policy. If a firm’s goal is to grow it must be able to focus its limited resources using a strategy appropriate for growth.

     

Dynamic Capabilities, Government Policies, and Performance in Firms from Emerging Economies: Evidence from India and Pakistan

In this study we developed a model of the dynamic capability development mechanisms in Emerging Market manufacturing Firms (EMF). We identified three dynamic capability development mechanisms: organizational learning, reverse engineering, and manufacturing flexibility. We generated hypotheses based on this framework, linking these mechanisms with firm performance. We also modelled the roles played by managerial use of two types of government policies: input supporting policies and marketing supporting policies. We tested our hypotheses on a sample of Indian and Pakistani manufacturing firms. Results showed that organizational learning, reverse engineering and manufacturing flexibility had significant impacts on EMF performance. Additionally, organizational learning combined with input supporting government policies enhanced performance, and the combination of manufacturing flexibility and marketing supporting government policies had an insignificant influence on performance.     

On becoming a strategic partner: The role of human resources in gaining competitive advantage

Although managers cite human resources as a firm's most important asset, many organizational decisions do not reflect this belief. This article uses the value, rareness, imitability, and organization (VRIO) framework to examine the role that the human resource (HR) function plays in developing a sustainable competitive advantage. Why some popularly cited sources of sustainable competitive advantage are not, and what aspects of a firm's human resources can provide a source of sustainable competitive advantage are discussed. The role of the HR executive as a strategic partner in developing and maintaining competitive advantage within the firm is also examined. © 1998 John Wiley & Sons, Inc.     

Managerial perceptions of corporate environmentalism: interpretations from industry and strategic implications for organizations

Environmental issues are becoming increasingly important in organization theory and practice. Corporate environmentalism is emerging as a process of addressing environmental issues facing business firms. In this paper I examine managerial perceptions of corporate environmentalism and describes how key organizational members interpret the relationship between their firm and the biophysical environment. Corporate environmental orientation and environmental strategy focus are two themes of corporate environmentalism that emerge from the study. I discuss managerial perceptions of regulatory forces, public environmental concern, top management commitment and need for competitive advantage, and how perceptions of these factors might translate into environmental strategies. I conclude by discussing implications of corporate environmentalism for organizational theory and practice.     

Environmental sustainability engagement of firms: The roles of social capital,resources, and managerial entrepreneurial orientation of small and medium enterprises in Vietnam

How firms in transition economies demonstrate their strategic engagement in sustainable environmental management given their limited resources and capabilities is less understood in the literature. This study explores how small and medium enterprises (SMEs) in Vietnam, an exemplar of a country in transition from a closed and socialist economy to an open and liberal market, draw on their external social capital to access critical resources that are leveraged by the entrepreneurial orientation or capabilities of the firms' top management towards engagement in business-wide environmentally sustainable practices. Drawing on a database of more than 2000 firms from a large-scale survey of firms in Vietnam, this study tests the relationships between two facets of social capital, environmental management resources and environmental sustainability engagement. This study further contends that managerial entrepreneurial orientation moderates by enhancing the strategic utilisation of resources to enable firms in Vietnam to engage in environmental sustainability. The results offer novel theoretical insights and timely managerial or practical implications as well as promising directions for future research on the resources, strategies and capabilities of firms in transition economies.     

Corporate Entrepreneurship Activities through Strategic Alliances: A Resource‐Based Approach toward Competitive Advantage*

abstract Corporate entrepreneurship (CE) activities may significantly benefit from interfirm strategic alliances, although such benefits have not been sufficiently examined in the literature. In this paper, a resource‐based framework is presented to examine how strategic alliances offer entrepreneurial firms needed resources that may not otherwise be available. We argue that CE activities are likely to lead to resource gaps. We compare various options to fill resource gaps, and identify the pros and cons of the alliance approach. We then discuss the resource conditions that provide competitive advantage for a firm, if alliances are properly used to help implement CE. Finally, we examine how different types of alliance (e.g. joint ventures, R&D alliances, and learning alliances) facilitate various CE activities, including innovation, corporate venturing, and strategic renewal.