Level Of Technological Turbulence Research Articles

Unraveling formal and informal business ties in shaping foreign subsidiary capabilities

PurposeDrawing upon the resource-based view this study aims to examine the connections between formal and informal business relationships and resource-bridging and adaptive capabilities within the context of foreign subsidiaries of multinational enterprises (MNEs) operating in Thailand. Based on prior literature emphasizing business network ties as sources of competitive advantage in emerging markets, this study extends the discourse by investigating the moderating effects of technological turbulence, power distance and assertiveness.Design/methodology/approachThis study uses a quantitative research approach, using data obtained from a self-administered survey conducted among 168 foreign subsidiaries spanning diverse industries in Thailand. The data were analyzed by using multiple-group structural equation modeling to test the hypothesized relationships.FindingsCultivating different types of business ties enables foreign subsidiaries to improve different types of capabilities. While interpersonal relationships (i.e. informal businessties) enable them to develop their abilities to combine various resources (i.e. resource-bridging capability), rigid contractual-based relationships (i.e. formal businessties) help them to be more adaptive (i.e. adaptive capability). These relationships are also contingent upon the levels of technological turbulence, host-country power distance and host-country assertiveness.Originality/valueThis research builds upon prior research on network ties and capability building by delineating the specific nature of capabilities. Contradicting to the previous findings, demonstrating a negative relationship between formal business ties and capabilities, this study found that each type of business tie enables foreign subsidiaries to enhance different types of capabilities under different circumstances. Moreover, this study adopts a lens of host-country national culture rather than home-country culture in investigating the moderating effects of power distance and assertiveness.

Unlocking supply chain product and process innovation through the development of supply chain learning capabilities under technological turbulence: Evidence from Egyptian SMEs

PurposeIn light of the current challenges in the business environment, firms, particularly those involved in supply chains, must foster innovation. In this context, the current study employs the theory of dynamic organizational capabilities (DOCs) to track supply chain learning capabilities (SCLCs) and independently uncover their relationship to innovation at both the product and process levels. Similarly, the study intends to investigate the influence of technological turbulence (TT) on these relationships as a moderating variable.Design/methodology/approachThe data were gathered using in-person interviews with 189 CEOs with some supply chain management proficiency from small and medium-sized enterprises (SMEs) in the industrial zones of eastern Egypt. The study used a survey approach to collect data, and the SEM-PLS technique was utilized to analyze the data.FindingsStudy findings revealed that SCLCs positively affect product and process innovation. In addition, TT positively moderates the relationship between SCLCs and product and process innovation, except for risk-taking capability. Further theoretical and practical implications are derived from the study findings.Originality/valueThis research adds to the knowledge of the dynamic capabilities theory (DCT), which affects how firms interact with their external environment. Studying learning capabilities are employed as essential competencies to counterbalance high levels of TT in the external environment in terms of innovative performance and vice versa if firms do not attempt to strengthen their dynamic learning capabilities in supply chains. In addition, this study contributes to the literature by studying learning capabilities from the external perspective, where SCLCs are being developed as a new variable to improve innovation.

Firms’ participation in global value chains marketing activities and performance: the roles of international experience and technological turbulence

This paper investigates the impact of marketing innovation on firms’ participation in global value chains (GVCs) marketing activities. We test the moderating effect of international experience and technological turbulence on the relationship between firms’ participation in GVCs marketing activities and firm performance, using data from 503 Chinese firms. The results highlight that firms’ GVC marketing activity participation relies on marketing innovation to improve performance. Moreover, international experience strengthens the positive relationship between participation in GVCs marketing activities and firm performance. Surprisingly, the positive moderating effect is different under different levels of technological turbulence.

Marketing Capabilities, Technological Innovation, and Management Innovation: An Outside-in Approach

This study builds a theoretical model between marketing capabilities, radical and incremental technological innovations, and management innovation through an outside-in approach. We employed 272 pairs of survey questionnaires collected from Chinese firms in the empirical tests. Results indicate that marketing capabilities enhance management innovation through the mediating effect of radical technological innovation, whereas the mediating effect of incremental technological innovation is not statistically significant by contrast. It is further uncovered that the mediating effect of incremental technological innovation is contingent upon the level of technological turbulence.

THE RELATIONSHIPS BETWEEN TECHNOLOGICAL TURBULENCE, FLOW EXPERIENCE, INNOVATION PERFORMANCE AND SMALL FIRM GROWTH

The main objective of the paper is to address the question of how to foster innovation and small firm growth under different levels of technological turbulence. Specifically, the paper examines the relationship among risk-taking, arising from different levels of technological turbulence, flow experience, innovation and small firm growth (i.e. market share and ROI growth). The underlying premise of our research is that there are substantial differences in low and high technological environments in terms of the relationships of risk taking, flow at work, innovation and small firm growth. Based on a survey among 188 entrepreneurs, the paper tests the proposed relationships in technological diverse environments with structural equation modelling. The results show that, when the level of technological turbulence is high, flow experience is significantly related to innovation and small firm growth, while in low-technological turbulence environment such relationships are not present. The study contributes to the entrepreneurial literature by demonstrating that in highly turbulent environments, flow experience may promote entrepreneurs’ innovation and the efficiency of small firm performance. The study also provides new empirical insights about the relationship between entrepreneurs’ behaviour, which is influenced by environmental conditions, on the one hand and innovation and small firm growth on the other hand.

Entrepreneurial Business Tie and Product Innovation: A Moderated Mediation Model

Radical innovation has attracted increasing attention in corporate sustainability research. Employing a social capital perspective, we explore how and when entrepreneurial business ties (EBTs) enhance radical innovation by considering risk taking as a critical mediator and environmental turbulence as a conditional factor of the mediation effect. Data is collected from 322 Chinese new ventures. We find empirical support for the moderated mediation model. Specifically, EBT is positively related to risk taking while risk taking is positively related to radical innovation. Risk taking further serves as a mediator in the EBT-radical innovation relationship, and this indirect effect is stronger at a high level of technological turbulence. By revealing how entrepreneurs translate their business ties into positive radical innovation outcomes through risk taking and when this indirect effect is most effective, we enhance understandings of the value of EBT and how to impel radical innovation.

Strategic orientation and information technological turbulence

Purpose – There is an emerging recognition in the strategy field that differences in organization forms represent firms’ capability to gain benefit from investing in technology. This study has intention to add to this stream of research by proposing the technological turbulence (TT) as a primary contingency factor focussing on strategic orientation (SO) as main determinant of firm performance (FP). The purpose of this paper is to provide considerable suggestion on how to match SO with various level of TT. Design/methodology/approach – This study uses quantitative approach with structural equation model to understand the moderating effect of information TT on the relationship between SO and FP. The 390 small and medium enterprises (SMEs) in Indonesia contributes to the research as randomly selected respondents. Findings – The result shows how the TT influences managerial decision-making processes under an opportunity-based paradigm. However, SME managers face lack of capability to deal with high TT. Research limitations/implications – This study uses cross-section data at the SMEs context in Indonesia. Practical implications – This study suggest that the initiative to encourage SMEs to adopt information technology (IT) should consider the SME capability to utilize the IT. Originality/value – The research gap challenges a question from previous literature on how long firms retain a given capability to deal with dynamic environment. This study has intention to add to the stream of research by proposing the information TT as a primary contingency factor focussing on SO as main determinant of FP.

Does the use of knowledge integration mechanisms enhance product innovativeness?

This study draws upon the perspectives of organizational learning and environmental contingency to investigate how the use of knowledge integration mechanisms affects product innovativeness under different levels of technological turbulence, market turbulence, and competitive intensity. Based on a sample of 102 high-tech product projects, hierarchical moderated regression analyses reveal that product innovativeness is related to knowledge integration mechanisms in a curvilinear manner under different levels of competitive intensity, market turbulence, and technological turbulence. Specifically, under a low level of competitive intensity, market turbulence and technological turbulence, the relationship between knowledge integration mechanisms and product innovativeness is an inverted U-shape. By contrast, under a high level of competitive intensity, market turbulence, and technological turbulence, product innovativeness is related to knowledge integration mechanisms in a U-shaped manner.

The relationship between team autonomy and new product development performance under different levels of technological turbulence

Operations management researchers have frequently suggested that autonomy can motivate teams to actively and flexibly adapt to fast-changing environments, fostering innovation and creative problem solving. However, empirical studies have not consistently supported the benefits of team autonomy. We articulate the behavioral and mechanistic effects of team autonomy by integrating operations management and behavioral literatures. Further, we view team autonomy as a bipolar factor and argue that both the behavioral and mechanistic effects of team autonomy on operational outcomes are non-linear. Drawing on information processing theory, we propose that the benefits of team autonomy depend on the degree of technological turbulence. A study of 212 new product development projects supports these propositions. Specifically, the relationship between team autonomy and operational outcomes is ∩-shaped in technologically turbulent environments and U-shaped in technologically stable environments. Further, operational outcomes mediate the relationships between team autonomy and product success. We discuss the theoretical implications regarding new product development, operations management, the bipolarity of autonomy, and information-processing theory.

Interfirm networks in periods of technological turbulence and stability

This paper examines how network relations between firms influence firm survival by explicitly addressing the moderating role of changing technological regimes. Using longitudinal data on 1385 developers and 190 publishers of video games in the global video game industry between 1972 and 2007, the analyses show that the effect of network ties between developers and publishers on the survival probability of developers is moderated by the level of technological turbulence in the industry. The results show that the effect of network partner failure on firm survival is dependent on the strength of ties. The failure of strongly tied network partners harms developers in stable periods and benefits them in turbulent eras, while no such relation is found for weakly tied network partners. Network partner diversity positively affects firm performance in epochs of technological turbulence, while the effect plays no significant role for firm survival in stable settings. The results indicate that the relation between interfirm network relations and firm survival is moderated by sequences of technological renewal in the video game industry which cause the industry to go through an evolution that deviates from the typical S-shaped trajectory found in industries that are characterized by strong path-dependent processes.

The contingent value of firm innovativeness for business performance under environmental turbulence

Drawing on the resource-based view and contingency theory, this study investigates how technological and market turbulence influence the effect of firm innovativeness on business performance. Using a survey-based sample of 452 Taiwanese manufacturing firms in a broad range of industries, we employ a hierarchical moderated regression analysis to test two-way interaction hypotheses. The results show that technological turbulence enhances the positive effect of firm innovativeness on business performance but that market turbulence does not. The post hoc analysis indicates that when technological turbulence is high, firm innovativeness has a more positive effect on business performance. An additional sub-group analysis reveals that the positive moderating influence of market turbulence manifests only in the high-technology sub-sample. Our findings suggest that managers of manufacturing firms should nurture high levels of innovativeness to help their firms to thrive under high technological turbulence. This study contributes to the firm innovativeness literature by clarifying the boundary conditions under which firm innovativeness enhances business performance. Contrasting with previous research, our research demonstrates that the performance effect of firm innovativeness is not equally positive but instead increases with the level of technological turbulence. We shed new light on the crucial role of firm innovativeness in an environmental of high technological turbulence.

When does guanxi bolster or damage firm profitability? The contingent effects of firm- and market-level characteristics

This paper advances that a nuanced approach is necessary to understand the effectiveness of managerial ties ( guanxi) in improving firms' financial performance. We take a contingency approach to examine how the effects of managerial ties on performance may be moderated by firm-level factors (i.e., firm age and entrepreneurial orientation) and market-based forces (i.e., demand uncertainty and technological turbulence). Using a survey of 289 firms in China, we find that managerial ties are more salient with regard to enhancing performance for more entrepreneurial-oriented and younger firms. Managerial ties fail to provide performance benefits to firms when high demand uncertainty exists or when the level of technological turbulence is high, which suggests a performance limitation of established ties with government officials, buyers, suppliers, and competitors. The theoretical and managerial implications of the findings are further discussed.