Effect Of Environmental Dynamism Research Articles

Clarifying the conditions and limits of the contributions of ordinary and dynamic capabilities to relative firm performance

AbstractStrategy scholars have argued that capabilities can influence firm performance through a variety of means and mechanisms. However, the role of capabilities and their proposed contributions have been narrowly theorized and insufficiently tested. We contribute to resolving these issues by considering the conditions under which ordinary and dynamic capabilities contribute to higher relative firm performance. We do so by examining the positive and negative contributions of capabilities to relative firm performance as well as the effects of environmental dynamism and the degree of capability heterogeneity. We utilize measures of relative firm performance at both the process and firm level within a sample of Chilean firms, which due to a dynamic environment allows for a clearer link between the environment and the use of capabilities. We find that environmental dynamism negatively affects the contribution of ordinary capabilities and positively affects the contribution of dynamic capabilities to relative firm performance. Further, heterogeneity strengthens the contribution of dynamic capabilities to relative firm performance, but is less important for ordinary capabilities. Interestingly, we find support for the direct effects of capabilities to be stronger with a process‐level performance measure, whereas the influences of environmental dynamism and heterogeneity are stronger with a firm‐level measure. Copyright © 2010 John Wiley & Sons, Ltd.

Effects of firm characteristics on the link between business environment and operations strategy: evidence from China's retail sector

Drawing on contingency theory, this study aims to examine the impacts of firm characteristics on the nature of relationships between business environmental factors and operations strategy choices. This study uses a path analytic framework to understand the effects for a sample of retail firms in China. Our findings suggest that the strongest business environmental factors that influence the degree of emphasis placed on operations strategy choices is environmental dynamism (such as changes in retail technology and innovations in new service development). When faced with the same environmental stimuli, firms with different firm characteristics (such as firm size, firm age, and firm nationality) choose to emphasise different operations strategies. For instance, the impact of labour availability on operations strategy choices is different for big and small firms. The effect of environmental dynamism on operations strategy choice seems to be much stronger for local firms than foreign firms in China. Compared with old firms, new firms appear to pay much more attention to competitive market forces during their operations strategy choices.

Call for Papers: Outsourcing R&D for efficient innovation

In the present day markets, new product development and innovation are essential for value creation. Innovation, however, hardly provides benefits if rivals are able to copy it with little or no extra cost. Consequently, being able to build an appropriability regime that provides effective protection against imitation and enables getting returns on investments in innovation is necessary. The problem is that choosing the methods to protect different kinds of innovations is not straightforward. In this paper we study appropriating from radical and incremental innovations. It is widely known that many significant differences exist between the two innovation types, and the appropriability conditions are no exception. Empirical evidence on the topic is provided by analyzing survey data collected among 299 companies. As a result, the effects of environmental dynamism and research and development (R&D) intensity on radical and incremental innovation are illustrated, and knowledge is provided on the role of the appropriability regime in enhancing the potential to profit from radical and incremental innovations.

Appropriability regime for radical and incremental innovations

In the present day markets, new product development and innovation are essential for value creation. Innovation, however, hardly provides benefits if rivals are able to copy it with little or no extra cost. Consequently, being able to build an appropriability regime that provides effective protection against imitation and enables getting returns on investments in innovation is necessary. The problem is that choosing the methods to protect different kinds of innovations is not straightforward. In this paper we study appropriating from radical and incremental innovations. It is widely known that many significant differences exist between the two innovation types, and the appropriability conditions are no exception. Empirical evidence on the topic is provided by analyzing survey data collected among 299 companies. As a result, the effects of environmental dynamism and research and development (R&D) intensity on radical and incremental innovation are illustrated, and knowledge is provided on the role of the appropriability regime in enhancing the potential to profit from radical and incremental innovations.

Effect of Environmental Dynamism on Relational Governance in Manufacturer-Supplier Relationships: A Contingency Framework and an Empirical Test

The effect of dynamism in the downstream (i.e., customer and competitive) environment on the manner in which manufacturers manage their upstream (i.e., supplier) relationships is not well understood in the literature. While some prior studies suggest that manufacturers will adopt relational governance with suppliers in response to dynamism in the downstream environment, other studies suggest that manufacturers will avoid relational governance with suppliers when faced with environmental dynamism. Drawing from the literature on interparty learning, the authors develop a conceptual framework wherein the validating conditions for each conclusion are identified. Results from a survey of 221 manufacturing organizations show that in dynamic environments, manufacturers adopt (avoid) relational governance with suppliers under two conditions: (1) when manufacturer collaborative belief is high (low) and (2) when supplier knowledge is high (low). The results are discussed in terms of their managerial and future research implications.

Pengaruh Moderasi Dinamika Lingkungan pada Sistem Kontrol Akuntansi dan Kinerja Perusahaan

Contingency theory posits a strong relationship between accounting control system and organizational performance. In the past empirical studies, there were some contextual factors that moderating those relationship. The current study postulates and tests the moderating effect of environmental dynamism on the accounting control systems and performance nexus. The study finds that estimation result supports the hypothesis that there is moderating effect of environmental dynamism on the accounting control system and firm’s performance.

The moderating effect of environmental dynamism on the ownership and performance relationship

The moderating effect of environmental dynamism on the ownership and performance relationship