The entrepreneurial orientation–performance relationship in private family firms: the moderating role of socioemotional wealth

Drawing on socioemotional wealth (SEW) literature, this paper revisits the established entrepreneurial orientation (EO)–performance relationship in a family business context. The main idea in entrepreneurship literature is that EO leads to increased firm performance. We question this logic in a family business context because family related non-financial goals, like SEW, may prevent the firm to reap the fruits of their entrepreneurial efforts. Specifically, we argue that SEW engenders inefficiencies that place constraints on the realization of the benefits of entrepreneurship. Therefore, we propose that a high level of SEW preservation hinders the transmission of the family firm’s EO into positive performance effects. To test this hypothesis, an empirical study was developed using a sample of 232 Belgian private family firms. Robust linear regression analysis reveals that the positive effect of EO on financial performance decreases as the level of SEW preservation increases.     

The moderating impact of internal social exchange processes on the entrepreneurial orientation–performance relationship

This paper applies a social exchange perspective to understand the internal contingencies of the relationship between entrepreneurial orientation (EO) and performance. It focuses on two aspects of social interactions among functional managers (procedural justice and trust), as well as on their organizational commitment, as potential enhancements to the firm's successful exploitation of entrepreneurial opportunities. A study of 232 Canadian-based firms finds several positive moderating effects: The EO–performance link is stronger for higher levels of procedural justice, trust, and organizational commitment. In addition, consistent with a systems approach to organizational contingencies, the EO–performance relationship is stronger when the organization's social context comes closer to an “ideal” configuration of procedural justice, trust, and organizational commitment that is most conducive to knowledge exchange within the organization. The study's implications and future research directions are discussed.     

The role of influencer–follower congruence in the relationship between influencer marketing and purchase behaviour

Over the last decade, influencer marketing has become one of the most important tools for companies and brands to increase awareness, sales, or image strength. Since consumers prefer brands and companies whose image is congruent with their actual or ideal self, we could expect that consumers tend to prefer influencers whom they can compare themselves with. Therefore, congruence between consumer and influencer is imperative in influencer marketing and may indicate whether the influencer will be able to promote products to the target audience in an appealing way. Using a quantitative empirical study, we surveyed more than 7500 individuals measuring how they perceive a specific influencer's credibility, content usefulness, congruence, and purchase behaviour. The results suggest that if there is a congruence between an influencer and the follower, the impact of the influencer's experience and its content usefulness on purchase behaviour is stronger.     

The role of social network websites in the consumer–brand relationship

Building and leveraging the brand community on a social network website (SN) such as Facebook is one of the popular social media strategies that companies employ to build a consumer–brand relationship. This research empirically tests a theoretical argument that the perceived benefits of a brand׳s social network website (BSN) influence the consumer׳s relationship with the brand׳s SN, which in turn leads to loyalty behavior. After qualitative exploration of the community to understand the practice of BSN, a quantitative method was utilized to test the hypothesized relationships. The results provide general support for the positive effect of BSN benefits on outcome variables. Specifically, experiential and functional benefits of a brand׳s SN positively influence the consumer׳s perception of relationship investment made by the brand, resulting in both brand relationship quality and the willingness to spread good words about the brand׳s SN. In addition, experiential benefits of BSN positively influence BSN relationship quality, which in turn leads to brand relationship quality, while the effect of functional benefits on BSN relationship quality is not found. The findings provide practical managerial suggestions to marketers and theoretical implications for future studies.     

A longitudinal examination of the effects of retailer–manufacturer brand alliances: The role of perceived fit

Abstract

One resource that has been identified as a valuable source of competitive advantage is the equity associated with an organisation's brands. Organisations devote considerable resources to developing strategies that allow them to build and/or maintain strong brand names. This study investigates brand alliances between retailers and manufacturers. The role of perceived fit between the partnering brands is explored. In addition, the study examines the influence that retailer–manufacturer brand alliances have on: retailer equity; manufacturer brand equity; the intention of consumers to frequent the stores of the retailer involved in the brand alliance (shopping intention); and the intention of consumers to purchase products from the manufacturer involved in the brand alliance (purchase intention).     

Institutional distance and the quality of the headquarters–subsidiary relationship: The moderating role of the institutionalization of headquarters’ practices in subsidiaries

Through the lens of the institutional theory, we developed and empirically tested a contingency theoretical framework that examines the effects of formal and informal institutional distances on the quality of the headquarters–subsidiary relationship, and how such effects are contextualized by internal institutionalization of headquarters’ practices in subsidiaries of Chinese multinational enterprises (MNEs). Data were collected from both the headquarters of 297 Chinese MNEs and their respective subsidiaries. The results show that regulative and cultural distances are positively associated with the quality of the headquarters–subsidiary relationship, and that these positive relationships are stronger when subsidiaries institutionalize headquarters’ practices to a higher degree. Theoretical and practical implications are highlighted in the paper.     

Entrepreneurs’ creativity and firm innovation: the moderating role of entrepreneurial self-efficacy

There are several studies in entrepreneurship investigating determinants of innovation outcomes in SMEs. Although entrepreneurs’ entrepreneurial creativity is often seen as a prerequisite, previous research indicates it is not an exclusive determinant of innovation. We use theoretical logics of social cognitive theory and innovation theory to develop a conceptual model of entrepreneur’s creativity, self-efficacy, and innovation outcomes. The model is then tested on a large sample of small and medium firms from two distinct economies: the United States and Slovenia. Empirical findings partially support the proposed moderation effects of entrepreneurial self-efficacy, but with the same variations between countries. The implications of these results in relation to entrepreneurship theory and practice are discussed.     

The internationalization of small firms: The relationship between the global mindset and firms’ internationalization behavior

Some firms in internationally oriented industries are internationalized while other comparable firms in the same sector or industry do not. Observing this difference in strategic behavior among small firms led us to consider how differences in CEOs’ attitudes, international orientation, and mindset might explain it. Therefore, this study adopts a cognitive perspective on management to explore the formation of the global mindset and the relationship between the global mindset of small-firm decision makers and their firms’ internationalization behavior. A theory-based conceptual model and measurement instrument are developed and—using structural equation modeling—the model is estimated based on empirical data from cross-sectional samples of small Norwegian and Portuguese firms. The study finds: (1) a strong causal relationship between the global mindset and firms’ internationalization behavior; (2) the combination of the findings and substantive theory indicates that the main driver of firms’ internationalization operates through the global mindset. This study also covers the factors that strongly influence the formation of a global mindset, especially the decision makers’ work experience and personal characteristics in terms of propensity to interdisciplinary collaboration, cognitive flexibility, and networking capability. Based on these findings, suggestions are made for policies that can foster the internationalization of small firms.     

The role of social networks and institutions in the internationalization of Russian entrepreneurial firms: Do they matter?

Drawing upon network theory and institutional theory, this paper examines the influence of networks on the internationalization of Russian entrepreneurial firms. Our case analysis suggests that within the context of the Russian environment, networks play a much less important role in the internationalization process than it is usually assumed in the literature. For the Russian entrepreneurial firms examined in our study, the most important factor in their internationalization was their engagement in honest business practices that established trust and commitment in their relationships with international business partners. This study underscores the importance of the institutional context of an entrepreneurial firm’s country.     

The role of national institutions in the effects of consumers’ perceived customer orientation and firm innovativeness

Many multinational corporations force global customer orientation and firm innovativeness. However, little is known about how or why they benefit from perceived customer orientation and firm innovativeness in one country but not in another. The authors fill this gap by referring to information processing and institutional theories. They contribute to research by analyzing the roles of country development and dimensions of national culture in the direct and indirect effects of perceived customer orientation through firm innovativeness on consumer product purchase intention across 53 countries. The results of multilevel structural equation modeling show different explained variances of the institutions and varying moderations for the differently strong effects of perceived customer orientation and firm innovativeness. Institutional theory strongly complements behavioral theorizing. The findings have direct implications for managers interested in understanding how perceived customer orientation and firm innovativeness interact and attract consumers in different country contexts.     

Where does ESG pay? The role of national culture in moderating the relationship between ESG performance and financial performance

This study investigates the moderating role of a country’s culture as an external contingency factor in the relationship between a firm’s environmental, social, and governance (ESG) performance and financial performance. Using ESG performance data of 4978 firms from 48 countries for 17 years, we argue that the financial return from engaging in ESG varies depending on the countries’ cultural aspects because stakeholder evaluations and appreciations for a firm’s ESG performance differ across nations. We find that a country that espouses a culture of high individualism or masculinity tends to appreciate and reflect on this more explicitly, strengthening the relationship between a firm’s ESG performance and financial performance. Contrastingly, in a country with a culture of high power distance or uncertainty avoidance, firms’ ESG efforts are less likely to be associated with financial performance. Our findings have important implications for multinational enterprises facing various cultural environments when dealing with heterogeneous stakeholder demands across countries.     

The role of commitment on the customer benefits–loyalty relationship in mobile service industry

The purpose of this study is to identify appropriate combinations between various types of commitment and benefit, to induce and enhance loyalty behaviours, such as customer retention, cross-selling, and customers' positive word-of-mouth, in a matured service market. The results show that functional and economic benefits have significant effects on customer retention through calculative commitment, while experiential and symbolic benefits significantly affect cross-selling and positive word-of-mouth via affective commitment. Normative commitment mediates the relationship between affective commitment and customer retention. The implications of these findings for loyalty management strategy related with service benefits and type of commitment are discussed. Limitations and recommendations for future research are also presented.     

The density–satisfaction relationship revisited: The role of scarcity and consumers affective reactions in a crowded retail situation

This article examines how individuals react in crowded utilitarian settings and investigates the specific role of scarcity in the density–dissatisfaction relationship. This paper also highlights the mediating role of affective states (i.e. positive and negative) in determining consumers' satisfaction or dissatisfaction in these contexts. The results suggest that the scarcity of the situation can reduce the extent to which consumers perceive negative experiences in a dense retail situation. In addition, it supports the critical role played by affective states in mediating the relationship between density perceptions and negative reactions. The article provides potential explanations and managerial insights on how managers can deal with crowding in diverse retail and services situations.     

An investigation of relationship learning in cross-border buyer–supplier relationships: The role of trust

This paper investigates the factors influencing relationship learning in cross-border buyer–supplier relationships. A conceptual model is developed by integrating organizational learning theory, relational governance and the resource-based view. Based on a cross-sectional sample of 160 firms in the information technology industry and a structural equation model, the findings show that learning intent, absorptive capacity and cross-cultural differences influence relationship learning. This study further addresses the moderating effects of trust.     

Speed or quality? How the order of market entry influences the relationship between market orientation and new product performance

The role of market orientation as an antecedent of new product performance has been extensively documented in the literature. What is less clear, however, is how firms should make use of their market orientation under different market conditions. This study addresses this question by investigating how market orientation leads to superior new product performance for products that enter the market at different times. In particular, the study examines the moderating effect of order of market entry on the mediated relationship between market orientation and new product performance via product quality and innovation speed. Data from a sample of 244 new product development projects show that a firm's market orientation can improve the performance of first-to-market products and late entrants by facilitating the development of quality products, whereas it can improve the performance of early entrants by facilitating greater innovation speed.     

Together and Apart: Exploring Structure of the Corporate–NPO Relationship

Financially significant relationships between corporations and non-profit organizations (NPOs) have increased in recent years. NPOs offer access to interests and ideologies that are lacking within most for-profit organizations. These partnerships form a unique bridge between for-profit and non-profit goals and offer significant potential to produce innovative ways of “doing business by doing good.” Exploration of the structural implications of these relationships, however, has been limited. The potential for ideological imbalance in these relationships, particularly for the NPO, has been poorly described. We explore the structure of Corporate–NPO relationships from the NPO's perspective under high pressure conditions such as large relational investments or negative pressure from stakeholders. Using data collected from 20 NPOs in Australia, we identified the use by NPOs of both formal and informal governance mechanisms within their partnerships. These mechanisms acted to align and defend important goals of the NPO. They allowed the NPO and their corporate partners to be simultaneously “together and apart.” Our study offers important insight toward the study of cross-sector relationships and the role of governance mechanisms.     

Impact of market orientation on firm’s customer-based performance: the moderating role of employee orientation

ABSTRACT

In this paper, we examine the influence of employee orientation (EO) on converting constituent dimensions of market orientation (MO) into customer-based performance (CBP) and consider the robustness of these relationships in the context of firm age and size. Based on a sample of 410 mid-to-senior-level managers working in UK service industries, we find that all three dimensions of MO positively influence CBP. While highlighting the utility of employing a multidimensional approach to evaluate the customer-based outcome of MO implementation we highlight the nuanced role of EO in strengthening the MO–performance relationship and emphasise the crucial role employees play in implementing different strategic orientations in a perceivable way to customers.     

Restructuring of the Danish pork industry: The role of mergers and takeovers, 1960–2010

This article examines the origins and effects of the evolution of the Danish pork industry characterised by three main merger waves resulting in 43 realised mergers and takeovers. The findings illuminate – in contrast to the traditional strategically motivated rationale – that the majority of the mergers were realised by cooperatives due to the inability to give the pig farmers competitive yearly refunds vis-à-vis local competitors, to financial difficulties or to the lack of investment capability of one of the merging parties. Despite a high-risky strategy, mergers and takeovers became the preferred consolidation mean due to capital constrains and the ‘close’ ownership structure of the cooperatives. Moreover, the study demonstrates that the outcomes of the M&A activities were generally positive.     

The missing link? Understanding the relationship between individual and organisational learning

This article recognises that individual learning plays a key role in organisational learning. It identifies that there has been little empirical research to date exploring the interaction between individual and organisational learning. New research is presented from a company engaged in organisational learning, by a case study investigation utilising qualitative and quantitative research methods. The article explores key issues in training and development related to the interaction of individual and organisational learning, and concludes that individual learning is related to organisational learning through a range of factors including positive learning climate, active informal learning by individuals, and effective communication of skills and knowledge.     

Exploring the relationship between employees’ CSR perceptions and intention to emigrate: Evidence from a developing country

This study contributes to the burgeoning research on corporate social responsibility (CSR) at the individual level of analysis, in a hitherto largely neglected developing country context. Using survey information collected from 297 employees in public and private enterprises in Kosovo, this study examines how and to what extent employees’ perceptions of their employer's CSR activities are associated with their intention to emigrate. Applying a needs-based framework, this research provides evidence that employees’ perceptions of CSR are positively related to the meaningfulness of their work and job satisfaction and negatively related to intention to emigrate. Additionally, results confirm that the association between CSR perceptions and emigration intention is mediated by the meaningfulness of work and job satisfaction. From a practical point of view, this research should encourage private and public enterprises in developing countries to enhance and extend their CSR engagement.