Business Performance Outcomes Research Articles

Strategic marketing patterns and performance implications

PurposeThe purpose of this study is to create the taxonomy of firms based on the nature of the relationship between market-based resources and marketing capabilities. Anchored in the configuration theory, the present study aims to explore simultaneous roles of market-based resources, i.e. customer orientation and competitor orientation, and marketing capabilities, i.e. the execution of marketing practices and activities within a firm, on firm performance.Design/methodology/approachA self-administrated questionnaire was used to collect data from chief executive officers or top managers of 220 firms in Bosnia and Herzegovina, a transitional economy in South Eastern Europe.FindingsDrawing on a configuration approach via the latent class analysis, the authors empirically derive four distinct strategic marketing patterns, namely, marketing super achievers, marketing-focused virtuosi, marketing drifters and marketing mass pushers. The findings also highlight how business performance outcomes differ as a function of a class membership.Research limitations/implicationsCross-sectional research design and focus on a single country are main limitations of the present study. Thus, longitudinal studies in the context of developed and fast-reforming transition economies are advisable for future work.Practical implicationsThis study enhances the knowledge on how a firm can configure or bundle its market-based resources and marketing capabilities to produce desired outcomes. Findings suggest that joint attention to building market-oriented culture and developing marketing capabilities seems to pay off. However, the authors found that a lack of market knowledge can be substituted by the firms’ ability to build effective promotional and branding capabilities. Thus, the present study adds to the emerging dialog on the relative importance of alternative strategic orientations in achieving superior business performance.Originality/valueThis study contributes to the strategic marketing literature by examining the synergistic effect of market-based resources and marketing capabilities on firm performance using a configurational approach. It also provides support for the equifinality proposition, suggesting that different “bundles” of market-based resources and marketing capabilities can lead to similar level of performance outcomes.

Impact of environment on performance measurement design and processing in retailing

Purpose By focusing on the interface between information dissemination and interpretation at the retail sales floor, the paper aims to open up new practice theory contribution on management control and performance measurement used in complex environments. Design/methodology/approach Problem-centered qualitative interviews in two different contexts (U.S. and Europe) build the methodological approach. 22 interviewees were selected from various retail sectors and hierarchy levels with the focus on store management. Following content analysis procedures, data was coded according to contingency theoretical underpinnings. Findings Environment shapes corporate processes as well as retail management in multiple ways. By studying fast fashion industries, we found similarities in retail management in all researched settings. First, we present relevant operational performance metrics in the retailing context. Second, we see that store managers aim to optimize processes and generate efficient and effective practices to maximize store performance. Third, information and task overload are reasons for neglecting performance information. As a consequence, managers call for decision facilitating tools, e.g. dashboards, to reduce information complexity. Originality/value Widely accepted in contingency literature, environmental aspects influence business activities and performance outcomes. However, evaluating research studies that deal with performance measurement in retailing contexts reveals contradicting results. With the focus on larger retail companies with multibranch and department structures in two different national contexts we can unravel different perspectives on environment in operational retail settings for the first time.

TQM and business success

Purpose– Prior studies by Salaheldin (2009) and Talibet al.(2011) have assessed the relationships between TQM critical success factors (CSF) and business results. The purpose of this paper is to build upon this research by considering the relationships between these CSFs and their sequencing during the implementation of TQM. Furthermore, the influence exerted by the maturity of TQM implementation on the link between instrumental drivers and performance is explored.Design/methodology/approach– The TQM drivers are clustered by means of three constructs: strategic enablers, tactical drivers and instrumental drivers and a model employed in which the strategic and tactical factors are treated as antecedents of the instrumental drivers. The direct effect of each cluster on business results and the indirect relationship of strategic and tactical factors via the mediating role of the instrumental drivers are assessed. These assessments use the partial least squares (PLS) approach which is a variance-based structural equation modeling technique using a sample of 113 Spanish organizations with experience of implementing a TQM program.Findings– The findings confirm the existing relationships among the CSFs and business performance identified by studies Salaheldin (2009) and Talibet al.(2011). However, the results reveal that instrumental drivers possess the highest variance explanation power over business performance outcomes and it is possible to identify a CSF implementation sequence that generates the greatest impact on business performance. Furthermore, the study was inconclusive with regard to the influence exerted by the number of years of TQM implementation on the link between the instrumental drivers and performance.Research limitations/implications– The first is related to organizational bias. It seems likely that those firms which are not satisfied with their TQM system performance would be less likely to be motivated to contribute to the development of this study. Therefore, the authors have included in the sample a higher proportion of “good” systems than is the case in the population at large. Second, although the authors provide evidence of causality, causality itself has not been proven. Third, this research relies mainly on perceptions and the authors only used a single method to elicit these perceptions. Finally, this research was carried out in a specific geographical setting (Spanish companies) and the authors must be cautious about generalizing these results in other contexts.Practical implications– This study offers a substantial number of practical implications. First firms’ managers should emphasize that continuous improvement, benchmarking and zero-defects mentality is a never-ending process. Especially, they should understand that reliable product/service design is critical to exceed the customers’ expectations, leading to improved business success. The results of this study should also lead managers to seeing a “return on investment” in their efforts to implement a TQM program by first, paying more attention on how to implement the instrumental factors, and second, avoiding the belief that the passage of time and experience-based learning will bring business performance enhancement and success on their own.Social implications– Although, the literature agrees that strategic factors are valuable assets and have a crucial role in the deployment of TQM systems, the study empirically validates this assertion. However, at the same time it shows that this impact on performance is stronger and much more significant by reconfiguring instrumental factors. This implies that strategic and tactical factors do have an effect on business success, but they do so indirectly, by reconfiguring and reinforcing instrumental factors that better fit the stakeholders’ needs and expectations.Originality/value– The results suggest the need to consider whether all the CSFs are equally relevant on the basis of their contribution to business success. For example, strategic enablers are generally considered to be of primary importance with tactical and instrumental drivers assuming a secondary position. The study challenges this view and highlights the role of instrumental drivers over strategic and tactical factors with the clear implication that managers should focus strongly on daily implementation tasks such as benchmarking, zero-defects mentality and continuous improvement processes in order to achieve good business performance outcomes.

The Impact of Service Climate and Ethical Climate on Business Performance Outcomes

Prior research has demonstrated that service climate can enhance unit performance by guiding employees’ service behavior to satisfy customers. Extending this literature, we identified ethical clima...

Green Marketing: A Grey-based Rough Set Theory Analysis of Activities

As green marketing is a critical function of green supply chain management, it has generated a great deal of discussion in public discourse and academic research. Interestingly, there is a gap in the research on how a company can effectively invest and manage various green marketing activities. Thus this paper aims to introduce a grey multiple criteria decision-making methodology to investigate the relationships between green marketing activities and performance outcomes (environmental and business performance). This paper seeks to make the following contributions to the green supply chain management literature. First, review the literature to identify implementation activities for green marketing from green supply chain management literature. Second, develop a methodology to evaluate relationships of green marketing activities by integrating grey number and rough set method. Third, obtain various decision rules relating the various green marketing activities to the environmental and/or business performance outcomes through an illustrative application within an incomplete information system. Knowing those rules to help in the implementation, management, and evaluation of these green marketing activities is valuable to both researchers and practitioners. Included in the discussion are insights into how these rules for individual and aggregated performance (environmental, business, and joint performance) may be evaluated. Practical and research implications of this work are detailed in the final section of this paper.

INDITEX, a model company in the implementation of sustainable human resource management

The aim of this paper is to illustrate the sustainable human resource management (SHRM) approach through the application of a theoretical model to INDITEX as an exemplary case study. According to this approach, it is necessary to integrate the human resource policies for sustained business performance and positive employee outcomes of equity, development and well-being. We have applied a qualitative content analysis technique for developing this application of published annual reports of the company. The evolution that this company shows through its public reports (2002-2012) in the corporate social responsibility framework highlights some lessons to understand the importance of focusing on people. This approach is important as a mean to achieve employee satisfaction and commitment, productivity and profits, and human resource sustainability in organisations.

Market orientation and green supply chain management implementation

Green supply chain management (GSCM) involves, among other things, managing the manufacture and distribution of environmentally friendly goods in ways to avoid waste and with minimal impact on the environment. Many firms have incorporated green initiatives into their operations as a strategy to achieve a competitive advantage. While prior research focuses on back-end business performance outcomes on using GSCM, this study seeks to examine front-end GSCM implementation approaches. Specifically looking at how a marketing orientation might impact the successful implementation of GSCM practices. The results of the study show that focusing on market-oriented knowledge about customers and competitors is positively related to financial performance and environmental performance. Firms will benefit by using a marketing orientation to guide the design and development of GSCMs.

Market Orientation and Organizational Performance Linkage in Chinese Hotels: The Mediating Roles of Corporate Social Responsibility and Customer Satisfaction

The nature of market orientation and its impact of business performance and other related outcomes have been extensively researched in a range of service contexts including tourism. Despite the empirical evidence to support the proposition that market orientation has positive impact on organizational performance, several researchers have reported nonsignificant or even negative effects for this linkage. This disparity in existing studies might be reconciled by investigations into the mediators of the relationship. However, research on the topic remains limited. In light of the gap, we proposed two new mediators, namely, corporate social responsibility (CSR) and customer satisfaction, and tested the mediating effects in an empirical study in China's hotel industry. Evidence to support the mediating effects was identified, and the managerial and research implications were discussed.

Design Thinking: Exploring Opportunities for the Design Industry and Business in Australia

Design thinking has been explored internationally as a tool for business seeking innovation as documented by influential authors, practitioners and scholars across business, design, governments and academia. However, the adoption of design thinking in Australia appears to be lagging in comparison with those practising and investigating it globally. This research investigates how business and design in Australia are responding to design thinking, and also unveils the barriers and opportunities that exist for both design and business in this field. Semi-structured interviews conducted with professionals working in the design thinking space in Australia revealed that: a) Australian businesses are generally not aware of or adopting design thinking, b) the benefits of design and design thinking in the pursuit of innovation by business are poorly understood, and c) the design and business sectors, educational providers and the Australian Government have the opportunity to develop capabilities in delivering design thinking for greater business performance and economic outcomes. This paper provides insights into the way design thinking is perceived, understood and adopted in the Australian environment and therefore provides the platform for further research and discourse on the subject within the Australian context.

Does employee safety influence customer satisfaction? Evidence from the electric utility industry

ProblemResearch on workplace safety has not examined implications for business performance outcomes such as customer satisfaction. MethodIn a U.S. electric utility company, we surveyed 821 employees in 20 work groups, and also had access to archival safety data and the results of a customer satisfaction survey (n=341). ResultsIn geographically-based work units where there were more employee injuries (based on archival records), customers were less satisfied with the service they received. Safety climate, mediated by safety citizenship behaviors (SCBs), added to the predictive power of the group-level model, but these two constructs exerted their influence independently from actual injuries. In combination, two safety-related predictor paths (injuries and climate/SCB) explained 53% of the variance in customer satisfaction. DiscussionResults offer preliminary evidence that workplace safety influences customer satisfaction, suggesting that there are likely spillover effects between the safety environment and the service environment. Additional research will be needed to assess the specific mechanisms that convert employee injuries into palpable results for customers. Impact on IndustryBetter safety climate and reductions in employee injuries have the potential to offer payoffs in terms of what customers experience.

Leadership Strategies to Achieve Business Excellence-A Study of Selected Companies in India

This paper is based on part of investigations carried out on ‘Factors determining excellence in business in selected listed Indian companies’. Business excellence is expressed in terms of the best practices followed by the organisations and also the quality of business performance outcomes. Leadership strategies and practices are one of the most important determinants of business excellence. A total of 30 important leadership strategies and actions followed by the successful organisations globally were identified. The responses were obtained from a sample of 75 top-performing Indian companies listed in stock markets. The sample frame was NSE500 companies. In all, 29 key business performance indicators (PIs) were also designed in eight areas of results. The responses were obtained from the companies on five-point Likert scale. The data were processed on SPSS and AMOS software packages to investigate the effect of the leadership inputs on the firm's performance. Factor analysis, correlation tests and median split t-test were conducted. It has been found that business excellence practices in leadership and strategies have strong influence on several business PIs. In path analysis, it was found that leadership practices influenced results directly or indirectly, through other business practices like operations structure and resources, operations strategies, etc. The processes and strategies identified can be very useful easy-to-use self-evaluation and monitoring tool for any commercial organisation to improve performance and competitiveness.

Evaluasi Orientasi Layanan Sebagai Bagian dari Budaya Organisasi dan Efeknya Terhadap Kinerja Organisasi

Nowadays, there are many organizations including universities supposed to develop their performance or effectiveness and also their service quality. Effectiveness have become an important issue because of the explanation on what makes the organizations have their excellence, high quality, productivity, vitality, which represents the concept of effectiveness in organizational science literature. In addition, organizational performances are complex and become one of functions of many variables. One of the multi facet variables which is continuously taken into account from many faculties and business professionals is orientation. Although it is difficult to conceptualize and to measure, organizational orientation directly affects the organizational performance. Organizational orientation, especially service orientation, has shown the significant effect to organizational performance. Together with the increase of the interest in gaining the service orientation, this concept has been proved to be main factor in creating the superior customer value and service quality. The study aims to evaluate the university service orientation as social variable, to empirically test its relationship to organizational performance measures dan to provide managerial implications. The premise behind the study is that service-oriented organizations that strategically choose to emphasize service excellence as a valueadded deliverable will perform significantly better than organizations that do not possess this orientation. This study was aimed to measure the service orientation concept as an aspect of organizational culture and to understand the the relationship between strategically-chosen service orientation, employee service outcomes and business performance by using multiple informants. To date, little empirical research has focused on understanding the complex relationship between service orientation and organizational performance. Moreover, existing research tends to measure and examine the construct, service orientation, without serious regard for its conceptualization and measurement as an element of organizational culture. The study employed survey method and used proportional random sampling as sampling technique. The results of the study are service orientation measures in higher education and its effects on employee service outcomes and business performance are in good confirmation: service orientation increase business performance and employee service outcomes; employee service outcomes increase business performance; and the total effects os service orientation surely increase employee service outcomes, and which in turn, it will increase business performance.

Impact of lean manufacturing and environmental management on business performance: An empirical study of manufacturing firms

This paper explores relationships between lean manufacturing practices, environmental management (e.g., environmental management practices and environmental performance) and business performance outcomes (e.g., market and financial performance). The hypothesized relationships of this model are tested with data collected from 309 international manufacturing firms (IMSS IV) by using AMOS. The findings suggest that prior lean manufacturing experiences are positively related to environmental management practices. Environmental management practices alone are negatively related to market and financial performance. However, improved environmental performance substantially reduces the negative impact of environmental management practices on market and financial performance. The paper provides empirical evidences with large sample size that environmental management practices become an important mediating variable to resolve the conflicts between lean manufacturing and environmental performance. Additional contextual analyses suggest that differences exist in terms of the strengths and statistical significance of some of the proposed relationships. Thus, for effective implementation of environmental management, firms need to measure environmental performance through which the impact of environmental management on other business performance outcomes is examined.

A model of environmental control and effective work

PurposeThe purpose of this paper is to present a model of “environmental control”. Environmental control can be provided through: furnishings and work tools that can be modified or manipulated, choice of time and location of work, organizational policies for flexible work programs, training, and computing and communications technologies that extend control. This paper seeks to propose that enhanced environmental control is related to improved individual, group and organizational performance.Design/methodology/approachA conceptual model is presented of environmental control coupled with a review and analysis of relevant literature that support the model and identify areas that require further development and research.FindingsThe literature review and analysis show support for the model of environmental control. The research reviewed reveals a consistent relationship between workplace capabilities that provide control, and positive behavioral and business performance outcomes for individuals, teams and business units. The review identifies gaps in the empirical support for the model and provides directions for future research.Practical implicationsUltimately, environmental control is proposed as a means for providing choice about where, when and how to work, which can be used to improve the performance of people and organizations. Thus, environmental control is a crucial capability in which organizations should invest, by optimizing choice through workspace, policies, and technology. By leveraging control as a central component of workplace strategy, organizations may enhance their competitive advantage.Originality/valueMuch of the research described in the paper, and methods employed, are appropriate for exploratory research and theory‐building.

Kaizen events and organizational performance: a field study

PurposeThe purpose of this paper is to describe the application of an assessment methodology to empirically measure and evaluate the impact of kaizen events on organizational performance, including human resource outcomes.Design/methodology/approachA field study of two kaizen events held within a single organization utilizing both quantitative (survey) and qualitative (interviews and organizational documents) data was conducted. Sustainability of outcomes was also studied.FindingsThis study empirically illustrates that, even within a single organization, kaizen events may have varied success. Management support was found to be related to human resource outcomes. Positive attitudes at the conclusion of a successful event, however, did not automatically translate to sustained improvements. Additionally, the kaizen event team with a more limited scope was better able to meet targeted business objectives.Originality/valueThe methodology described can assess the impact of kaizen events on business performance and human resource outcomes; the latter has largely been ignored in the kaizen events scholarly literature. This study demonstrates that initial success in business outcomes and human resource outcomes are not necessarily correlated and that success may vary over time. Leaders need to pay close attention to follow‐up mechanisms to ensure sustainability.

The relationship marketing orientation of Hong Kong financial services industry managers and its links to business performance

The importance of a relationship marketing orientation (RMO) in the Hong Kong financial services industry is examined and a RMO construct tested for its impact on business performance. Following an earlier study of RMO that found a significant positive association with business performance in a sample dominated by a Hong Kong wholesaling, retailing, and associated activities, our study of RMO in the financial services sector found a similar association but of greater strength. RMO factors, however, vary in their effect on particular business performance indicators, complicating the picture of how RMO works to improve business performance. For example, communication is the only factor with a significant association with customer retention but is unimportant for market share. Although the elements of RMO are interdependent, differences in contribution to achieving particular business performance outcomes suggest the need for a fine-grained approach to building a RMO strategy, one crafted to the service context and particular business performance goals.

PERAN MARKETING COMPETENCY DALAM MENINGKATKAN KEUNGGULAN BERSAING

Functional area competencies are considered as sources of competitive advantage (Porter, 1994; Heene & Stanches, 1997; Cravens, 1996; Vickery el AI, 1993; Vickery et. Al, 1994), and marketing competency is one of them. Marketing competency construct is defined as the sum of the performed on 31 competitive items, weighted by importance and extent of marketing responsibility (Vickery et al., 1994).This study examines a model of relationships between marketing competency and business performance outcomes such as market share and market share growth. The questioners were sent to marketing managers from manufacture organizations at Jakarta. The instrument from Vickery et al. (1994), was used in this study. Regression was used to analysis this data. The result showed that marketing competency is related to business performance outcomes (in this case: market share and market share growth). So, It suggests that marketing competency is a source competitive advantage.Keywords : Marketing Competency, Business Performance Outcomes (market share and market share growth), competitive Advantage.

Towards agile manufacturing: models of competition and performance outcomes

This paper reports a study which identified significant relationship between models of competitive manufacturing and business performance outcomes. The paper discusses the nature and importance of competitive objectives and their impacts on business performance. The results presented are based on the findings of a survey by questionnaire administered to 600 companies. Statistical tests identified the models of competition and revealed significant differences in performance outcomes. The study showed that flexibility is superior to leanness but that it may add more to costs than to revenue. Suggestions for surviving flexibility trap enroute agile manufacturing were offered. The paper is significant as such studies have not been well documented.

Integrating knowledge management technologies in organizational business processes: getting real time enterprises to deliver real business performance

PurposeTo provide executives and scholars with pragmatic understanding about integrating knowledge management strategy and technologies in business processes for successful performance.Design/methodology/approachA comprehensive review of theory, research, and practices on knowledge management develops a framework that contrasts existing technology‐push models with proposed strategy‐pull models. The framework explains how the “critical gaps” between technology inputs, related knowledge processes, and business performance outcomes can be bridged for the two types of models. Illustrative case studies of real‐time enterprise (RTE) business model designs for both successful and unsuccessful companies are used to provide real world understanding of the proposed framework.FindingsSuggests superiority of strategy‐pull models made feasible by new “plug‐and‐play” information and communication technologies over the traditional technology‐push models. Critical importance of strategic execution in guiding the design of enterprise knowledge processes as well as selection and implementation of related technologies is explained.Research limitations/implicationsGiven the limited number of cases, the framework is based on real world evidence about companies most popularized for real time technologies by some technology analysts. This limited sample helps understand the caveats in analysts' advice by highlighting the critical importance of strategic execution over selection of specific technologies. However, the framework needs to be tested with multiple enterprises to determine the contingencies that may be relevant to its application.Originality/valueThe first comprehensive analysis relating knowledge management and its integration into enterprise business processes for achieving agility and adaptability often associated with the “real time enterprise” business models. It constitutes critical knowledge for organizations that must depend on information and communication technologies for increasing strategic agility and adaptability.

Performance Outcomes of Strategic and IT Competencies Alignment1

This study empirically evaluates the business performance outcomes of aligning an organization's information technology (IT) competencies with its strategic competencies. Strategic competencies include components such as shared vision, cooperation, empowerment, and innovation, whereas IT competencies comprise connectivity, flexibility, and technological scanning. Top managers from 104 organizations completed a questionnaire analyzed with EQS, a structural equation modeling tool. Based on a covariation approach to alignment, results confirm that strategic and IT competencies alignment significantly enhances perceived business performance.