Contingency Theory Research Articles

Understanding interdependency of sustainability dimensions from the lens of collaborative relationship conditions: findings from an emerging economy

PurposeDrawing on the relational view and contingency theories, this study explores supply chain relationship conditions' roles in interrelationships between environmental, social and supply chain performance (SCP), i.e. triple bottom line (TBL).Design/methodology/approachThe data from industries and structural equation modeling (SEM) were used to validate the proposed model. Interviews with industry experts were conducted to further understand the findings.FindingsThe authors find that relationship conditions, such as inventory information sharing, dependency, opportunistic behavior and conflicts, moderate TBL linkages. Interestingly, power asymmetry does not moderate the linkages. Social performance mediates between environmental and SCP. This indirect effect is stronger than the effect of environmental performance on SCP.Originality/valueThis research is perhaps the first to bring a much-needed nuanced view on the importance of relationship conditions for TBL performance linkages. The research further underlines the importance of social performance in an emerging economy.

Modes of network governance revisited: Assessing their prevalence, promises, and limitations in the literature

AbstractThe systematic literature review takes stock of the empirical literature on the governance of organizational networks. The analysis is based on empirical papers citing Provan and Kenis (2008) as the seminal article on the governance of networks. We synthesize key findings on the modes of network governance, contingency factors, and network‐level tensions. The review provides insights into how the contingency theory of network governance has developed into an established and recognized research agenda in the last 15 years. We conclude that the governance of organizational networks as a vocabulary has been adopted in the management and organization sciences literature to explain organizational networks' development, functioning, and effectiveness. However, further theoretical development and testing are warranted to inform the practice of network governance, particularly when, how, and why to use institutions and structures of authority and collaboration to allocate resources and coordinate and control joint action of groups of organizations.

MANAGEMENT OF STRATEGIC CHANGE AT COUNTY GOVERNMENT OF VIHIGA, KENYA

The County Government of Vihiga, Kenya aligns its governance with a resonating change management strategy geared towards progressive socio-economic development. With the advent of devolution and county governments in Kenya in 2013, the efficient management of strategic changes has been a key area of focus.Implementing strategic change management at the County Government of Vihiga is vital for better performance in economic, health, education, and other sectors. It ensures flexibility and adaptability to continually changing circumstances, simultaneously maintaining transparency, accountability, and improved service delivery. However, as with any evolving system, strategic change management faces challenges in this county. This comprises resistance to change among employees, inadequate resources, and unstable political environment. The County Government of Vihiga must be committed to change leadership, capacity building, resource allocation, managing resistance to change, and creating an environment that facilitates continuous improvement.Reviewed studies have focused mainly on strategic change management in private institutions hence there is little empirical data on the application of strategic change management in public institutions, a gap this research aims to bridge. The specific objectives of the study are to establish change management practices adopted by Vihiga County Government,to determine challenges faced by Vihiga County Government in managing strategic change and to ascertain the measures Vihiga County Government has put in place to mitigate challenges of management of strategic change. The research was anchored on open systems theory, chaos and complexity theory and contingency theory. Primary data was collected by use of interview schedule and analysed through content analysis. The results revealed that the county uses various strategies for strategic change management which include employee participation, effective communication active leadership and training. Similarly, it was discovered that the notable challenges encountered in managing strategic change included employee resistance, middle management resistance due to perceived loss of power and poor resource allocation. The main mitigation measures that the county management used to mitigate these drawbacks encompassed the creation of strong synergy and management monitoring of the change implementation process. The study concludes thatCurrently Vihiga County Government has successfully navigated through the change management. It recommends that,there is need to introduce change in a humane way, and if need be, set a guiding and counselling office to enable employees to cope with the change.

Assessment of the Effect of Devolution on The Performance of Employees at County Government of Marsabit, Kenya

Devolution presents challenges in terms of coordination and collaboration between different levels of government, and in terms of capacity building at sub-national levels. Additionally, competition among counties can lead to a fragmentation of resources and a lack of cooperation, which can further decrease efficiency and productivity. In Kenya, despite an increase in power and resources by county governments, they are faced with many difficulties in providing quality services to citizens. Particularly, in Marsabit County, underdevelopment, regional stagnation, and a lack of infrastructure amenities have all been connected to ineffective public service delivery. The county was among the Counties that produced the least amounts of money in comparison to the revenue objectives in the 2018–19 fiscal year. The county government's efforts through numerous strategic initiatives have not been successful. The study aimed to assess the effect of devolution on the performance of employees at county government of Marsabit County, Kenya. The specific objectives of the study were: to evaluate the effect of devolved recruitment and selection practices, devolved rewards and benefits, devolved training and development practices and devolved resource allocation practices on employee performance at county government of Marsabit, Kenya. This study was guided by three main theories including New Public Management Theory, Contingency Theory and Maslow's need-hierarchy theory. The study adopted a descriptive study design and target 450 county officers working at the Marsabit County. The respondents were selected from the constituencies in the county. A sample of 81 participants, calculated using Slovin's formula, were selected through a stratified random sampling method. Data collection occurred through structured questionnaires, with each section on a specific research aim. To provide a comprehensive understanding of the data, this study employed descriptive and inferential analysis. The outcomes of this research were communicated through the presentation of results using tables and graphs, to enhance clarity and comprehension. From the correlation analysis, all the research variables including Devolved recruitment and selection practices (r=0.371), Devolved rewards and benefits practices (r=0.270), Devolved training and development practices (r=0.455), and Devolved resource allocation practices (r=0.591) had a positive effect on the employee performance at Marsabit County Government. The results of the regression analysis further showed that the devolution practices studied explain 45.0 percent of the variations in the employee performance at Marsabit County Government (R2=0.450). The conclusions of the study emphasize the importance of continued efforts to strengthen and refine devolved practices to maximize their positive impact on employee performance and, by extension, the effectiveness of the county government. The study recommends that county government authorities should actively embrace and implement devolved recruitment and selection practices. Furthermore, the study recommends the development and implementation of robust devolved rewards and benefits policies. To optimize employee performance, the study recommends that county governments continue to refine their devolved resource allocation practices. The study recommends that the county government of Marsabit should recognize and support the broader impact of devolution on employee performance. By acknowledging the significance of devolution in governance and management, the county government can continue to create an environment conducive to improved employee performance and overall organizational effectiveness.

Diskontinyuitas Sejarah Bali Abad XIX: Alternatif Mempelajari Masa Lampau melalui Pendekatan Postmodern

This study discusses the discontinuity of the history of Bali in the nineteenth century. The collapse of the Klungkung Kingdom in 1908, positioned as the present, serves as a starting point. It then moves backwards to 1849, which marked the beginning of the collapse of the Balinese kingdoms into the hands of the Dutch colonial government. Then it moves forward to form a periodization, but with a different frame of mind. The periodization is not connected to the present, but it is only used as a method to identify the location of historical discontinuities. The goal is merely to view whether an event brings new ideas that can make the old knowledge undergo ruptures, fractures, thresholds, accidents, and transformations. Using Foucault’s method of archaeology of knowledge combined with the theory of radical contingency, this study manages to demonstrate that the power after the fall of the Buleleng kingdom formed new knowledge which created the discontinuity of history in Bali in the nineteenth century.

Factors influencing Voluntary Tax Compliance Among Small and Medium sized Enterprises in Kenya

Tax compliance is essential for generating revenue to fund government activities and public services. Despite the efforts of the Kenyan Revenue Authority (KRA), compliance remains a challenge due to factors such as complex tax systems, high compliance costs, and negative taxpayer attitudes. The study examines the factors that influence voluntary tax compliance, including information availability, tax compliance costs, and individual attitudes and perceptions. It delves into tax compliance theories, such as the Contingency Theory of Taxation and the Ability to Pay Theory, shedding light on their impact on organizational behavior and financial performance. Empirical evidence from previous studies is discussed, highlighting the importance of tax education and the perception of tax fairness in promoting compliance. The study also identifies challenges specific to Kenya, such as a complex tax system, high compliance costs, and negative attitudes toward taxation, which hinder compliance, particularly among SMEs. It underscores the efforts made by the Kenyan Revenue Authority (KRA) to enhance compliance but acknowledges the persistence of challenges. The abstract concludes by emphasizing the need for a comprehensive understanding of tax compliance to ensure an equitable and efficient tax system that supports economic growth and national development in Kenya and other developing nations.

A cross-cultural study on the career counseling service ecosystem: implications for higher education marketing

ABSTRACT A career counseling service (CCS) provides an important measure of student satisfaction and contributes to the shaping of a higher education marketing strategy. However, the body of knowledge in the higher education domain is scant on how a CCS is created and delivered to suit the needs of students and the wider society. This study uses an explorative multiple-case study of the CCS across three different cultural contexts: UK, Italy, and China. The study adopted a service ecosystem perspective, building on contingency theory (i)to analyze the CCS as a tri-level scheme – that is to say, at the micro, meso, and macro levels – and identify the themes and underlying constructs in the co-creation of the CCS at each level and (ii)to highlight the disparities in CCSs across different cultural contexts. Six dominant themes in CCSs emerged – namely, quality assurance, a student-centered approach, mental health, industry collaboration, promotion of service, and digital platforms. The findings revealed that the role of the CCS is transitioning from a mere job placement service to a strategic and administrative function, which interacts with and influences various actors in the higher education ecosystem. Across the different cultural contexts, disparities in the identified themes were ascertained and explained.

PROPHETS AND LEADERS: A COMPARATIVE ANALYSIS OF PERSONALITY TRAITS USING THE CONTINGENCY THEORY

Using the contingency theory, we explore the similarities and differences between the personality traits of prophets and leaders employing a cross-sectional design to compare and contrast the relevance and importance of 15 traits commonly associated with both roles. Research finds that while prophets and leaders share many similar characteristics, significant differences exist in their leadership styles, decision-making processes, and organizational skills, suggesting that the context in which leadership is exercised plays a critical role in shaping the relative importance of each trait.

On the (in)effectiveness of standardized versus adapted international promotion strategies: Evidence from entrepreneurial firms

This study investigates how internationally active firms’ international promotion strategy is linked to international marketing performance. It addresses the issue of effectively balancing the economic benefits of standardized strategies with the potential performance gains achieved when adapting to local customer preferences and market situations. Based on contingency theory and the strategic fit paradigm, we argue that there is no panacea solution to the promotion strategy standardization versus adaptation debate. Instead, our empirical results from 298 international entrepreneurial product-market ventures based in Sweden support the view that international firms must fit the promotion strategy to relevant macro- and micro-environmental conditions in order to optimize their international marketing performance. Our results caution against assuming that all environmental factors exert an equivalent effect on the level of international promotion strategy standardization and reveal that neither standardization nor adaptation is a superior strategy in pursuing international marketing performance.

EFFECT OF SUPPLY CHAIN RESILIENCE STRATEGIES ON THE PERFORMANCE OF FLORICULTURAL FIRMS IN KENYA

The floriculture industry encounters diverse, ever new and high frequency challenges, which if not well managed will cause business closure, great losses and recovery challenges. In Kenya, floricultural firms are exposed to varied disruptions, bottlenecks and delays in their supply chain ecosystem, and this was worsened by the global Covid-19 pandemic. It is therefore crucial for firms to employ the right resilience strategies to prepare for such disruptions in responding and recovering faster to continue operating and improve performance. However whether, how and which resilience strategies affect performance in floricultural firms is a topic that remain under-explored. Using the Complex Adaptive System, Relational, Contingency and Agency theories together with the empirical literature, the study sheds light on the relationship between resilience strategies and firm performance. The specific objectives were to establish: the effects of supply chain collaboration, flexibility, agility and risk management strategies on the performance of floricultural firms in Nakuru County, Kenya. The study adopted descriptive and correlation research design. Target population was 101 flower firms. Primary data was collected using questionnaires. Using SPSS, descriptive and inferential statistics were carried out using ordinal multiple regression and correlation analysis. The study findings will guide the various businesses that are rethinking their business model and finding solutions to survive business disruptions affecting supply chains, by providing information on how to develop the right resilience strategies to deal with unforeseen disruptions and improve their performance. KEY WORDS: Supply Chain Collaboration, Supply Chain Flexibility, Supply Chain Agility, Supply Chain Risk Management, Performance Kenya.

Role of Transformational and Transactional Leadership Styles on Employees’ Performance with the Median of Organization Commitment, in Selected Higher Learning Institutions at Mwanza, Tanzania

This study examined the roles of transformational and transactional leadership styles on the employee’s performance in higher learning institutions in Mwanza. The study specifically aimed to identify the relationship between transaction leadership style and employee task performance, to determine if there is a relationship between transactional leadership style and employee tasks performance and to determine if transformational or transactional leadership style influences employee organization performance. The study was guided by situation and contingency theory as well as Transformation and transaction leadership theory. It employed a quantitative research approach and descriptive research design. The study employed a targeted population of 545 from which a sample size of 217 was used. Data in this study was collected through questionnaires and were analyzed using SPSS. V20 uses inferential statistics, descriptive statistics as well as regression and mediation analysis. The result obtained shows that overall model results R. Square of about 65%which is adjusted to 56%. Generally, R square and Adjusted R square were used to explain the power of the regression model in which the results of the model predictors explain 65% of the variation in the employee performance among the sampled respondents in the targeted higher learning institutions. The findings from the regression analysis show a positive and significant relationship between TRNF and EP. The regression formed a coefficient value of .643 and T-test was 2.092whihc was significant at .0002. Transactional Leadership Style (TRNS) was positively and significantly related to Employee Performance (EP). This can be evidenced by the coefficient of .528 and T-statistics of 2.241 which was significant at a level of. 001. The study also tested the relationship between Organization Commitment (OC) and Employee performance (EP) among the selected respondents. The Coefficient value was .556 and a T-Test was 2.85 which was significant at .000. The results from the analysis show a regression coefficient of .447 and a T-test of 2.040 which was significant at a level of .000. The study concluded both Transformational and Transactional leadership style has positive impacts on the task performance of the employee in the higher learning institution because through is a leader uses his/her acts to build my respect in the working place and also leader acts as a good role model to their employee hence employee as motivated to work in a committed manner to attain the desired organization objective whether long term or short term.

Influence of Internal Audit Risk Planning Practices on the Financial Performance of SACCOs in the Western Region of Kenya

To better monitor and control risks, businesses may use risk-based internal audit (RBIA) practices. It also increases transparency and honesty in the financial reporting process. The Western Region and Kenyan Deposit Taking Savings and Credit Cooperatives (DT-SACCOs) are the primary subjects of this research. Despite having an audit department in place, some DT-SACCOs encounter difficulties in auditing their operations, such as a lack of audit evidence (too weak or incorrect) that makes it difficult for the auditor to make the proper choice or generate accurate findings. An internal audit that takes risk into account may help a company prioritize its resources where they will have the most impact. This allows the SACCO to boost its financial performance and provide better reporting to its members. This research looked at how risk-based internal audits affected the profitability of DT-SACCOs in Kenya's Western Region. Based on three theories - the Positive Accounting Theory of internal auditing risk planning, the Contingency Theory of risk management, and the Agency Theory of internal audit capacity—this descriptive study was conducted. Fifteen DT-SACCOs in the Western Region of Kenya will be the focus of the study. Primary data was collected from DT-SACCO members, with a response rate of five per SACCO. The data on financial performance was verified using secondary sources of information. Regression analysis shows that risk-based audit planning had a statistically significant effect on the financial performance of DT-SACCOs in the Western area (t = 5.626, p<0.05). The study recommended that SACCO management practice risk-based auditing with adequate planning from all stakeholders to enhance transparency and accountability. Furthermore, the management should ensure there is timely action on audit queries.

Digitalization & Covid-19: An institutional-contingency theoretic analysis of supply chain digitalization

Black Swan external contingencies like the COVID-19 pandemic or Suez Canal blockage have a significant impact on the technology adoption decisions in firms. At a firm level, supply chains are the segments that are most prone to disruption due to these shocks. Hence the need to study the role of these contingencies in enabling digitalization in supply chains. Modern supply chains operate in a strong institutional environment that influences various aspects like technology adoption and digitalization. In this study, we bring these two aspects together by applying an institutional and contingency theory perspective. We investigate the institutional forces and the effect of environmental contingencies on the digitalization of supply chains. We propose a generalizable model to investigate digitalization readiness independent of the technological artefact being implemented. To achieve the same, we identify the forces of digitalization in the supply chains from the review of the extant literature. We then model the forces of digitalization into a Bayesian Belief Network (BBN). The study finds that organizational readiness and people readiness are critical elements of digitalization readiness. Our study reports the importance of top management's involvement and employees' training as the critical forces aiding digitalization.

Open innovation: The missing link between synergetic effect of entrepreneurial orientation and knowledge management over product innovation performance

Scholars stressed over the importance of entrepreneurial orientation and knowledge management for promoting innovation in the enterprises. SMEs, especially in the developing countries are afraid of innovating new products. This research focused particularly on SMEs operating in Jordan which is considered as a heaven for SMEs. The data has been collected with the help of an adopted questionnaires through simple random sampling. The framework has been developed using theoretical lenses of resource-based view, knowledge based view, and contingency theory. A structural equation modelling approach has been applied to test direct and indirect effects. The findings supported all the established relationships except the direct relationship between entrepreneurial orientation and product innovation performance. However, indirect effect of entrepreneurial orientation through open innovation is significant. The findings are highly relevant for the practitioners as they guide that product innovation performance is dependent on open innovation, only entrepreneurial orientation is insufficient.

The effect of management control system with four lever's of control model and remuneration on employees’ performance: A study at Brawijaya University

Purpose—This study applies contingency theory to examine the effect of the management control system (MCS) and remuneration scheme on Brawijaya University's employees' performance. The MCS in this study is understood following the Four Levers of Control (LOC), which includes belief systems, boundary systems, diagnostic control systems, and interactive control systems. Design/methodology/approach—For this analysis, the data collection method employed in this study was cluster random sampling of all employees except structural officials of Brawijaya University (UB). 355 respondents from Headquarters and 7 Faculties participated in this study. The data were collected, and the technique analysis used was SEM—PLS programs. Findings—Based on the analysis and discussion, the results of this study showed that employees’ performance was positively impacted by the boundary system, diagnostic control system, and remuneration. Employees’ performance could be improved by implementing an effective boundary system and diagnostic control system and providing fair and adequate remuneration. Employees’ performance was unaffected by the belief or interactive control systems. Practical implications—This study's Empirical evidence also showed that beliefs systems and interactive control systems do not affect the performance of UB employees. Originality/value — A management Control System with the LOC model (Simons, 1995) is implemented in private organizations. The researchers want to adopt the LOC model (Simons, 1995) in public organizations at Brawijaya University. This research is able to provide benefits for related officials in Universitas Brawijaya to implement a Management Control System with the LOC model as a means of controlling employee performance. Employees can be motivated to improve their performance with the management control system and the LOC model. Paper type — Case study

The Impact of Entrepreneurial Orientation on SMEs’ Performance in a Transitional Economy: The Mediating Role of Differentiation Advantages and Innovation Capability

EO literature suggests that the effects of entrepreneurial orientation (EO) on performance is affected by studying context. There is a lack of study executed in transitional economies. In addition, the mediating role of differentiation advantages (DA) and innovation capability (IC) on the relationship between EO and performance remains underexplored. Thus, drawing upon resource-based view and contingency theory, this study examines the mediating effects of DA and IC on this relationship in the contexts of manufacturing SMEs located in Vietnam. A sample of 176 manufacturing SMEs currently operating in Vietnam was analyzed. Partial least square structural equation modeling was applied to test the hypotheses. The results indicate that DA and IC fully mediate the relationship between EO and performance. These findings permit four theoretical contributions to the literature. First, this study contributes to the EO literature by examining the effects of EO in a transitional economy as Vietnam. Second, this study also overcomes prior EO studies in term of the operationalization of the performance. Third, this study introduces to EO literature two novel mediators such as DA and IC. Last but not least, this study it also contributes to contingency theory in EO study by addressing mediating rather moderating effects. Regarding to practical implications, managers of manufacturing SMEs should aware that adopting EO is only beneficial to the performance when EO can be used to develop DA and IC.

Effect of Innovation on The Performance of Star‐Rated Hotels in The North Rift Region, Kenya

Hotels should improve their innovation capabilities to effectively respond to competition and achieve optimal performance in the industry. The hospitality industry consistently aims to innovate in order to improve customer service. Unfortunately, the current literature on innovation in the service sector, specifically in the hospitality industry, is lacking in both theoretical and empirical research. The study set out to determine the effect of innovation on performance of Kenyaʹs starred hotels in the North Rift. The research was grounded in the theory of contingencies. The study used an explanatory research design and positivism. A total of 575 hotel workers were included in the study. Self‐administered questionnaires were used to collect data, which was then analyzed using SPSS version 25 using descriptive and inferential statistics. The research revealed a significant link between innovation and performance of star rated hotels. Based on the results, star rated hotels should rethink their innovation strategies and put more effort into enhancing their innovative capabilities. The star rated hotels should therefore innovatively search for important contingencies which can guarantee their high performance in the face of the ever‐changing business environment. The star rated hotels should often create new products that provide value for customers. Besides, the star rated hotels should invest on service innovation strategies.

Model of Fit Perceived Environment Uncertainty (PEU) and Budgetary Characteristics on Managerial Performance: A Residual Approach

This study examines effects of budgetary goal characteristics that are budgetary participation, budget goal clarity, budget goal difficulty, budgetary feedback on managerial performance using regression analysis (stepwise). This study also examined the contingency theory to seen the fit between budgetary goal characteristics system and environment on organization effectiveness, in this case budgetary system and perceived environmental uncertainty (PEU) to increasing managerial performance using residual approach. The application of residual analysis is illustrated by examining the interaction fit of budgetary goal characteristics and perceived environmental uncertainty and their effect on managerial performance. Residual approach used to enhance the potential for model of fit and be unformattable for future management accounting contingency theory studies. Based on the response of 64 managers in Makassar Industrial Area. The results of the study showed that that budgetary participation and budget goal clarity tend to have positive and significant effect on managerial performance. The results related to influence of budgetary goal’s difficulty level (about right, tight but attainable, too tight) to the average of managerial performance also showed insignificant relationship. This study showed that lack of fit between budgetary participation and budgetary goal clarity to environment uncertainty have negative and significant correlation with managerial performance.

Contingency Theory and Public Emotions in Crisis Communication –A Conceptual Study

Aim. Problems are inevitable in the subtleties of organizational communication, but it does not mean confronting them is uncontrollable. This paper aims to offer a conceptual structure for investigating contingency theory in Public Relations (PR) during an organizational crisis. The research investigates PR practitioners’ use of advocacy and accommodation in contingency theory to intervene in crisis communication. It also offers insights into the public’s emotional response and coping mechanisms during a crisis, as well as how understanding these emotions (such as anger, anxiety, fear, and grief, among others) could aid PR professionals in developing more effective crisis communication methods. Method. Empirical research was conducted on the basis of literature reviews by observing and analyzing the existing literature on contingency theory, crisis communication in organizations, and public emotions. Results. This conceptual paper proposes and empirically tests a few propositions. The implications for future studies are included in the paper. Findings promote the adopting a dual-continuum strategy that might assist public relations professionals in preferring superior crisis management strategies for obtaining desired organizational outcomes. Conclusion. The authors assert that PR professionals must move from embracing Grunig’s four models of excellence to contingency theory for communicating strategically with the public. The authors propose to adopt a dual-continuum approach that varies from advocacy to accommodation and might provide practical guidance to choose a better stance adopted by the organization towards the public during a crisis. The negative emotions of the public influenced by a crisis along with their emotional coping approaches are also discussed.

Impact of Corporate Social Responsibility on Firm Reputation and Financial Performance: The Moderating Role of Servant Leadership

This study investigates the influence of corporate social responsibility (CSR) on firm reputation and financial performance within Afghanistan's banking industry, utilizing the frameworks of stakeholder theory and contingency theory. To gauge the perceptions of CSR, reputation, and performance among a sample of 200 employees from both private and public banks, a questionnaire survey was administered. The collected data was subjected to quantitative analysis. The findings reveal that socially responsible actions undertaken by bank employees exert a significant and positive impact on the bank's reputation and financial performance. Moreover, the study demonstrates that the relationship between CSR and financial performance, as well as CSR and firm reputation, is moderated by servant leadership. These results highlight how businesses that actively participate in social activities and adopt a servant leadership style can enhance their public image and financial performance. Keywords: Corporate Social Responsibility, Firm Reputation, Firm Financial Performance, Servant Leadership, Banking sector.