Moderating Effect Of Environmental Dynamism Research Articles

The performance effects of big data analytics and supply chain ambidexterity: The moderating effect of environmental dynamism

The importance of big data analytics–enabled dynamic capability has been at the forefront of research for information systems management, operations management, and strategic management community. Prior studies have reported on the influence of big data analytics–enabled dynamic capability (BDA) for improved organizational agility and organizational performance, but there has been a paucity of literature regarding the role of big data analytics–enabled dynamic capability in untangling the supply chain ambidexterity dilemma and organizational performance. To address these research gaps, this paper draws on the dynamic capability view of the organization under the contingent effect of environmental dynamism. We tested our research hypotheses using 281 surveys, gathered using a pre-tested questionnaire. Our results suggest that BDA has positive effects on improving supply chain agility (SCAG), supply chain adaptability (SCAD) and performance measures (cost performance and operational performance). However, we noted that hypotheses regarding the moderating effect of environmental dynamism (ED) on the paths joining BDA and SCAG/SCAD were not supported. To address these unexpected results, we conducted post hoc analysis to explain the rationale behind the insignificant moderating effects of ED on the paths joining BDA and SCAG/SCAD. We found that the effects of BDA on SCAG/SCAD were higher under intermediate levels of environmental dynamism but comparatively weak when the environmental dynamism is low or high. Hence, we can argue that big data analytics can help enhance supply chain agility, supply chain adaptability, and organizational performance, but these effects are contingent upon the level of environmental dynamism. Moreover, a non-linear, inverse U-shaped moderating effect of environmental dynamism exists. Collectively, these findings provide a theory-based understanding of the organizational level of usage of big data analytics and its effects on supply chain agility, supply chain adaptability, and organizational performance. Moreover, they further shape our understanding of how big data analytics–enabled dynamic capabilities yield differential results under the moderating effect of environmental dynamism. Hence, we believe that our results will be useful for managers who are highly optimistic about the usage of these emerging technologies and their effects on supply chain characteristics. Finally, we have outlined our study limitations and offered numerous research directions.

Impact of Ambidexterity and Environmental Dynamism on Dynamic Capability Development Trade-Offs

Based on the dynamic capabilities view, this study first examines whether the co-existence of explorative and exploitative capabilities can directly cause organizational tensions. In addition, this study employs the combination of these two capabilities to examine how organizational ambidexterity affects organizational tensions. The research subjects consisted of high-tech firms in Taiwan developing new, high-tech products, and a total of 154 valid questionnaires were returned from these. A hierarchical multiple regression model was used for hypotheses testing. Our findings show that explorative capability is not statistically significant, but that exploitative capability significantly and positively influences organizational tensions. This study provides support for the strong moderating effect of environmental dynamism on the relationship between organizational ambidexterity and organizational tensions.

Paternalistic leadership and innovation: the moderating effect of environmental dynamism

PurposeThe purpose of this paper is to focus on how the three elements of paternalistic leadership – authoritarianism, benevolence and moral leadership – affect organizational innovation – both explorative and exploitative innovation – in Chinese enterprises. It also examines the moderating effect of environmental dynamism on the relationship between paternalistic leadership and organizational innovation.Design/methodology/approachData on 190 superior–subordinate dyads are collected using questionnaire surveys. The supervisors are recruited from the MBA program in a famous university in the city of Hefei, China, who are also asked to distribute subordinate questionnaires to their subordinates. The hierarchical regression analysis is conducted to test the hypotheses by using SPSS 22.0.FindingsThe analysis of 190 superior–subordinate dyads shows that benevolent and authoritarian leadership is positively related to exploratory innovation, while moral leadership has no significant impact on exploratory innovation. The results also reveal that all three elements of paternalistic leadership is, in general, positively correlated with exploitative innovation. Furthermore, environmental dynamism moderates the relationship between paternalistic leadership and innovation. In a dynamic environment, moral leadership has a stronger positive effect on innovation, but only on exploratory innovation; whereas authoritarian leadership exerts more detrimental effects on both exploratory and exploitative innovation.Originality/valueThe current work contributes to understanding the relationship between paternalistic leadership and innovation in the Chinese cultural context by examining the effects of the three elements of paternalistic leadership separately and by showing how these effects can be moderated by environmental dynamism.

Internet Resources and Organizational Knowledge Creation: Role of Environmental Dynamism

The development of the Internet has provided firms with the ideal opportunity to make up for the knowledge gap for achieving internal knowledge generation (IKG) and external knowledge acquisition (EKA). It is worth exploring how Internet resources can be used to satisfy organizational knowledge needs efficiently to adapt to dynamic environments. Thus, according to the resource-based view, knowledge-based view, and contingency theory, we study the impact of different types of Internet resources on the two modes of knowledge creation (IKG and EKA), as well as the moderating effect of environmental dynamism (ED) on this relationship. The hypothesized relationships were tested using the hierarchical regression analysis method with survey data collected from 399 Chinese firms. We found that Internet relationship resource and Internet human resource can simultaneously facilitate IKG and EKA, while Internet infrastructure resource positively affects IKG but has no significant impact on EKA. Furthermore, ED positively moderates the relationship between Internet relationship resource and IKG and EKA, but negatively moderates the relationship between Internet human resource and EKA.

Impact of the Core Founder’s Functional Experience Diversity on New Venture Performance and Moderating Effects of Environmental Dynamism

ABSTRACTPrior research on the association between functional experience diversity (FED) and firm performance has focused primarily on top management teams (TMTs). In this study, we shift the focus of research from teams to key individuals and consider the moderating effects of environmental dynamism. Specifically, we argue that the core founder’s functional experience diversity (CFFED) helps not only to enhance the absorptive capacity of new ventures but also to improve the quality of decision-making and promote its implementation, thereby enhancing new venture performance. Experience inertia occurs after repeated use of functional experience and it can save time and effort in a stable environment; however, it can lead to wrong decisions and worsen the new venture performance in a dynamic environment. Using data about entrepreneur alumni of a Chinese university, we validate the above hypotheses. In addition, we find that environmental dynamism has the opposite moderating effect for CFFED compared to the TMTs case.

Linking entrepreneurial orientation to firm performance in a post-socialist market context: the case of Hungary

Entrepreneurial orientation provoked the interest of numerous scholars as well as political and administrative decision-makers. Both start-ups and already established corporate entities are increasingly persecuting new opportunities, products, and business models in order to establish superiority above their competitive environment. The tendencies evince an optimist impact of entrepreneurial orientation on business performance, namely on financial performance. Beyond the aforementioned relationship, there are impulses such as environmental and organizational factors, which are affecting the businesses. The results of this study provide evidence of the effect of entrepreneurial orientation on business performance in a post-socialist context. We test the impact of three moderators on this bivariate relationship. In contrast to the substantial body of literature for Western markets, we contribute to minimizing the considerable gap of research in post-socialist economies. Entrepreneurial orientation as an organizational behavior may affect the financial performance of businesses differently in distinct market contexts. Both, internal and external factors are crucial to identifying, analyze and monitor, to achieve superior performance and to overcome competitors. This study builds upon a stratified sampling survey of Hungarian company owners and managers from the Amadeus database. The study uses a deductive approach. For the analysis, we rely on structural equation modeling using the PLS algorithm. Our study contributes to the existing literature by means of confirming the entrepreneurial orientation to firm performance relationship for Hungary. In this context, we test the moderating effects of environmental dynamism, environmental hostility as environmental factors and firm age as an organizational factor. Environmental hostility is closely related to an unfavorable environment, deriving from rapid and radical changes in the industry, which are typical for post-soviet economies. In such dynamic environment, destructive innovations of the industrial actors appear more often as the economy switches to an open competition, capitalist market. The results confirm that the internal and external factors have no significant influence on the entrepreneurial orientation to financial performance direct relationship.

Why does leader attention scope matter for innovation ambidexterity? The mediating role of transformational leadership

PurposeThe purpose of this paper is to explore the role leader attention plays in the nurture of transformational leadership (TL) behavior, as well as the mechanism by which TL affects innovation ambidexterity, this research empirically studied the relationship between leader attention scope (LAS) and innovation ambidexterity (exploratory innovation and exploitative innovation) through the mediating role of TL. Further, the moderating effect of environmental dynamism (ED) on the relationship between TL and innovation ambidexterity was examined.Design/methodology/approachEmpirical study was adopted by distributing questionnaires to high echelon leaders in mainland China to assess related variables. Structural equation modeling was used to examine the relationships of the variables based on the 188 returned questionnaires.FindingsThe results show that LAS had a positive effect on innovation ambidexterity, and the relationship was partially mediated by TL. ED negatively moderated the relationship between TL and innovation ambidexterity.Practical implicationsThe results suggest that upper echelon leaders receive more unfamiliar, outward-oriented, and source-diverse information to broaden their attention scope. The broad outlook they get obliges them to engage in TL behavior which is beneficial for innovation ambidexterity.Originality/valueBased on upper echelons theory, this research reveals the realization mechanism of innovation ambidexterity from the perspectives of leader attention and leadership behavior. This paper avoids the previous research limitation of prevalently employing demographic measurements to substitute for leaders’ psychological processes. The study of LAS also explains the formation mechanism of TL. ED is considered to examine the effectiveness of TL.

Strategic implications of HR role management in a dynamic environment

Purpose – The purpose of this paper is to consider the impact of human resource (HR) role overload and HR role conflict on the HR function’s involvement in strategic decision making and to examine whether conditions of environmental dynamism moderate the impact of HR role conflict and HR role overload in that relationship. Design/methodology/approach – The authors collected data from two sources, senior HR and top management team (TMT) executives. A total of 180 HR executives and 109 TMT members completed the survey. In all, 102 organisations were included in the sample with matched HR executive and TMT responses. Findings – Results did not support hypothesised negative relationships between HR role management and involvement in strategic decision making but did establish the moderating effect of environmental dynamism, such that these associations were more negative at higher levels of dynamism. Research limitations/implications – The cross-sectional nature of the study precludes making inferences about causality and would need to be replicated with a longitudinal design before stronger inferences could be drawn with regard to the relationships between the variables. A strength of the study however is the use of two sources of data to address the issue of common method variance. Practical implications – The research has implications for the potential value that HR provides in dynamic environments and the risk that HR role conflict and overload pose to the contribution that HR can make during these periods. Originality/value – The research shifts the focus away from the definition of HR roles to considering how these roles are enacted and kept in balance.

The moderating effect of environmental dynamism on green product innovation and performance

Environmental management has been researching extensively in the last two decades. Pressure from environmental regulations or policies plays an important role to boost environmental management practices. Nevertheless, the relationship between such pressure and the ultimate firm performance is not very obvious. Although green product innovation has been recognized as a predictor to improve environment performance, there is a lack of discussion in the literature to examine the mediating effect of green product innovation between the aforementioned pressure and firm performance. Additionally, most previous studies adopted a static view which ignores the implications on external dynamic factors in many empirical studies. In this connection, this study contributes to the field of knowledge by filling these two gaps. More specifically, this study: (i) examines the effect of green product innovation on the relationship between pressure of environmental regulations (or policies) and firm performance; and (ii) evaluates the moderating effect of environmental dynamism on the relationship between green production innovation and firm performance. A questionnaire survey is conducted in an emerging country, China, to verify the hypotheses.

Innovative behavior and venture performance of SMEs

Purpose– The purpose of this paper is to explore the relationship between innovative behavior and firm performance to determine empirically whether managers’ innovative behavior impacts directly or indirectly on firm performance through innovative output. A proposed conceptual model is tested with the moderating effects of environmental dynamism.Design/methodology/approach– An empirical study tests the conceptual model of a multi-industry sample of Tunisian small and medium-sized enterprises. For this analysis the author applies the partial least squares (PLS) technique using the software package SmartPLS, version 2.0.Findings– Empirical findings reveal that innovative behavior acts on innovation output thus having a positive and significant effect on business performance. Direct effect on business performance is found to be positive but weakly significant. These positive relationships tend to decrease when market conditions are highly dynamic.Practical implications– Managers should be aware of the strategic potential of their innovative skills which can reinforce a firm’s innovativeness in order to improve business performance.Originality/value– This paper proposes a model showing how a manager’s innovative behavior affects innovation output thus enhancing firm performance. The proposed conceptual model gives a more specific vision with the introduction of environmental dynamism as a moderating factor.

Drivers of technology commercialization and performance in SMEs

Purpose– The purpose of this paper is to explore the effects of small- and medium-sized enterprises (SMEs’) R & D capability and learning capability on their technology commercialization by focussing on the moderating effect of environmental dynamism.Design/methodology/approach– Based on a review of the literature on organizational capability, technology commercialization, and environmental dynamism, various hypotheses were developed and tested using a sample of 179 SMEs in Korea. Non-response bias usingt-test and common method bias was assessed.Findings– The results indicate that their R & D capability and learning capability were significant drivers of their technology commercialization, which in turn influenced their business performance. Environmental dynamism was found to moderate the relationship between technology commercialization and business outcomes. These results suggest that SME managers should place greater emphasis on strengthening their organizational capability and dealing with turbulent business environments.Originality/value– Few studies have explored the drivers of technology commercialization and their effects on business performance. To fill this gap in the literature, the present study examines the effects of firms’ R & D capability and learning capability on technology commercialization in the context of SMEs, focussing specifically on the moderating effect of environmental dynamism. The study contributes to the literature by extending the research horizon to firms’ technology commercialization capability, providing a better understanding of the pivotal role of technology commercialization and its key drivers and environmental factors in boosting performance.

Impact of Manufacturing Dynamic Capabilities on Enterprise Performance-the Nonlinear Moderating Effect of Environmental Dynamism

Impact of Manufacturing Dynamic Capabilities on Enterprise Performance-the Nonlinear Moderating Effect of Environmental Dynamism

Interaction effects of formal and social controls on business-to-business performance

Marketing and Strategy studies have treated relational governance as a critical factor of business-to-business (B2B) performance. Extant studies offer contrasting views on whether formal or social control is a better control mechanism, with little known about their interaction effect. In this study, the authors aim to investigate the interaction effect of these two control mechanisms by dividing a B2B contract (formal control) into two provisions (transactional and relational) and to examine the specific interaction effect of social control on each provision. The authors also seek to investigate the moderating effects of environmental dynamism, prior ties, and buyer lock-in. The measure of B2B performance reflects relational quality and financial outcome. The results show significantly different interactions between each provision of the contract and social control depending on the level of environmental dynamism and buyer lock-in, and suggest that the environmental condition of the transactions is reflective of managers' optimal control mechanisms.

The Moderating Effect of Organizational Environment on Post-IPO Corporate Governance Changes and Firm Performance Relationship

In this study, we investigated the possible moderating effects of environmental dynamism, environmental complexity, and environmental munificence on the relationships between changes in top management teams and board of directors and firm performance in the case of young entrepreneurial firms. The results showed that the three dimensions of environment do not moderate the relationship between the rate of change in top management teams and firm performance. On the other hand, the negative relationship between the rate of change in board of directors and firm performance is exacerbated by environmental complexity and munificence. The implications of these findings are discussed in the article.

Killing two birds with one stone: Cross-selling during service delivery

Operational efficiency is a central goal of service firms. The past decade witnessed the replacement of people with IT systems in service industries, yet the spotlight recently shifted to how frontline employees (FLEs) might perform a dual role by achieving sales and service goals simultaneously. This study examines the predictive ability of three well-established constructs (psychological climate perceptions, leader–member exchange, and employee self-efficacy) to model sales and service performance empirically across a range of service settings. The authors also examine the moderating impacts of environmental dynamism and employee experience, to identify the conditions in which climate, leader–manager exchange, and self-efficacy have greater or weaker impacts on FLEs' ability to meet both sales and service targets. The results indicate the significance of all three main effects in driving sales and service performance and support the moderating effects of environmental dynamism and experience.

On the contingent value of dynamic capabilities for competitive advantage: The nonlinear moderating effect of environmental dynamism

This article suggests that dynamic capabilities can give the firm competitive advantage, but this effect is contingent on the level of dynamism of the firm's external environment. A nonlinear, inverse U-shaped moderation is proposed, implying that the relationship between dynamic capabilities and competitive advantage is strongest under intermediate levels of dynamism but comparatively weaker when dynamism is low or high. This proposition is tested using data on alliance management capability and new product development capability, two specific dynamic capabilities widely recognized in prior research. Results based on longitudinal key informant data from 279 firms support the account that these dynamic capabilities are more strongly associated with competitive advantage in moderately dynamic than in stable or highly dynamic environments. Copyright © 2013 John Wiley & Sons, Ltd.

When should organizational change be implemented? The moderating effect of environmental dynamism between dynamic capabilities and new venture performance

The purpose of this study is to explore the moderating effect of environmental dynamism on the relationship between dynamic capabilities and new venture performance using the rapidly changing environment in China as a case. Using a sample of 115 firm observations, we applied the partial least squares structural equation modeling approach to model these relationships and found that opportunity-sensing capability and reconfiguration capability have significant impacts on new venture performance. Additionally, each of these capabilities has a stronger impact on new venture performance at higher levels of environmental dynamism. We conclude that dynamic capabilities are more effective in implementing organizational change at high degrees of environmental dynamism.

Using Exploratory and Exploitative Market Learning for New Product Development*

While the need for research on the market-learning efforts of a firm in relation to its new product development is continuously emphasized, the empirical results on this issue reported so far have been mixed. The current study contends that the inconclusive nature of the empirical evidence is mostly due to the existence of different dimensions of organizational market learning—exploratory and exploitative—and to possible different routes by which these learning dimensions are linked to new product performance. More specifically, this study argues that exploratory market learning contributes to the differentiation of the new product because it involves the firm's learning about uncertain and new opportunities through the acquisition of knowledge distant from existing organizational skills and experiences. By contrast, this study posits that exploitative market learning enhances cost efficiency in developing new products as it aims to best use the currently available market information that is closely related to existing organizational experience. This study provides empirical support for this two-dimensional scheme of organizational market learning and its consequent effects on two components of new product advantage: new product differentiation and cost efficiency. Further, given that the effectiveness of firms' strategic efforts is contingent upon the nature of the market environment, the current study examines the moderating effects of environmental dynamism and market competitiveness for this market learning—new product advantage relationship. This study is based on survey data from 157 manufacturing firms in China that encompass various industries. The empirical findings support the two-dimensional market learning efforts that increase new product differentiation and cost efficiency, respectively. The study confirms that exploratory market learning becomes more effective under a turbulent market environment and that exploitative market learning is more contributive when competitive intensity is high. It also suggests that because of their differential direct and moderating effects on new product advantage either exploratory or exploitative market learning may not be used exclusively, but the two should be implemented in parallel. Such learning implementations will help to secure both the feature and cost-based new product advantage components and will consequently lead to the new product success. The current study attempts to contribute to greater clarity and better understanding of how market learning influences new product success as it theoretically identifies and empirically validates the two forms of new product advantage as the conceptual mediator between market learning and new product performance.

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.

Information technology and firm performance: Linking with environmental, strategic and managerial contexts

The performance impact of information technology (IT) investment is an important research topic that needs to take into consideration the role of key contextual factors. This study discussed and empirically tested the moderating effects of environmental dynamism, firm strategy, and CEO/CIO arrangement on the impact of IT investment on firm performance. The study sample consisted of major US corporations. The empirical results, based on a moderated regression modeling approach, provided preliminary evidence supportive of the hypotheses advanced in this paper. Specifically, IT investment appears to have a stronger positive impact on financial performance when there are greater environmental changes, more proactive company strategy, and closer CEO/CIO ties. According to our findings, companies considering IT investment should assess their environmental contexts, strategic directions, and top management team arrangement to allow CIO's a more strategic role.