Organizational Performance Relationship Research Articles

The effect of AI-enabled HRM dimensions on employee engagement and sustainable organisational performance: fusion skills as a moderator

PurposeThis paper examines and empirically validates the artificial intelligence-enabled human resource management (AI-enabled HRM) dimensions and sustainable organisational performance (SOP) relationship. It also examines the mediation and moderation of employee engagement (EE) and fusion skills (FS).Design/methodology/approachThe indirect effects of AI-enabled HRM dimensions on SOP were found using structural equation modelling (SEM), bootstrapping and FS’s moderation effect by AMOS 22.FindingsResults showed that AI-enabled HRM dimensions indirectly affected SOP through EE as a full and partial mediator with no moderation effects of FS.Originality/valueThis is the first study to link AI-enabled HRM dimensions, EE and SOP and determine how FS moderates EE and SOP.

When things get personal: Understanding revenge by proxy as a function of consumer nationalism

The process of spillover occurs when a crisis in one organization affects the entire industry. It has been documented that the effects a spillover can seriously affect organizational performance and damage relationships with various stakeholder groups. Yet, little research has examined the notion of spillover in crisis communication. Research has coined the term crisis contagion to denote a special type of spillover that goes beyond industry as a risk factor. This paper proposes that country of origin and consumer nationalism could create a unique type of spillover, namely revenge by proxy. We provide several extended examples of revenge by proxy as well as an overview of possible crisis response strategies available to managers when dealing with revenge by proxy.

Effect of intellectual capital on organizational performance in the Indonesian SOEs and subsidiaries: roles of open innovation and organizational inertia

PurposeThis study aims to investigate the direct effect of intellectual capital on the organizational performance of Indonesian state-owned enterprises (SOEs) and their subsidiaries. Furthermore, it also examines whether the relationship is mediated by open innovation and moderated by organizational inertia.Design/methodology/approachThis study is designed as quantitative research. A survey method is employed to collect data by distributing questionnaires to the upper-level managers of the SOEs and their subsidiaries. A total of 293 questionnaires were distributed to the respondents, and 97 responses were obtained for further analysis. The partial least square structural equation modeling (PLS-SEM) is used to test the hypotheses. A mediation-moderation research framework is employed.FindingsThe results show that intellectual capital has a positive effect on organizational performance. Further results also demonstrate that open innovation mediates the intellectual capital–organizational performance relationship and organizational inertia moderates the intellectual capital–organizational performance relationship. Theoretically, the findings contribute to the resource-based view (RBV) and knowledge-based view (KBV) by providing empirical evidence of the importance of distinctive internal resources in achieving superior organizational performance. Practically, the findings provide strategic information for managers that they should properly manage intellectual capital, open innovation and organizational inertia because of their effects on organizational performance.Originality/valueFirst, this study addresses the previous research gaps by confirming that intellectual capital has a positive effect on organizational performance in the research setting of an emerging market. Second, by using a mediation research framework, this study shows that open innovation mediates the relationship between intellectual capital and organizational performance. Third, by using a moderating research framework, this study also reveals that organizational inertia weakens the relationship between intellectual capital and organizational performance. Those associations are rarely researched.

Organizational culture, knowledge sharing and organizational performance: a multi-country study

PurposeDrawing on the competing values framework, we look at the relationship of different organizational cultures (clan, hierarchy, adhocracy and market) with organizational performance. Furthermore, we examine the mediating role of knowledge sharing (attitude and behavior) in the organizational culture and organizational performance relationship.Design/methodology/approachWe draw on survey data from 241 respondents working in the aerospace and aviation manufacturing and services firms in Pakistan (85), Turkey (65) and the United Arab Emirates (91). We employ structural equation modeling for data analysis.FindingsResults suggest that knowledge sharing partially mediates the relationship between clan culture and organizational performance, and fully mediates the market culture and organizational performance relationship. Hierarchy culture is only positively related to organizational performance, while adhocracy culture shows no relationship with knowledge sharing, let alone organizational performance.Originality/valueWhile knowledge sharing enhances organizational performance, there is limited knowledge with regard to the specific organizational culture(s) conducive to knowledge sharing and organizational performance. The study extends existing research on the topic and contributes by showing which cultures are more conducive to knowledge sharing and organizational performance and which are less.

The role of service innovation in mediating entrepreneurial orientation, organizational learning capability, and organizational performance relationship

In 1997, Indonesia had a severe economic crisis, which prompted the Indonesian government to face significant pressure to promptly initiate governmental reform. There is a prevailing desire among the general public for enhancements in governance, with one aspect of this being the implicit need for improvements in government performance. This study investigates the role of service innovation as a mediator in the relationship between entrepreneurial orientation, organizational learning capability, and organizational performance. The study was conducted at the Directorate General of State Assets Management (DGSAM) in Indonesia. The questionnaires were collected from a total of 226 head offices, specifically from the heads of sections under the vertical agency of DGSAM, which is the State Assets and Auction Service Office (Kantor Pelayanan Kekayaan Negara dan Lelang/KPKNL). A quantitative approach was employed in order to elucidate, substantiate, and exemplify the hypothesis posited in the investigation pertaining to the observed events. The statistical technique employed for data processing was Partial Least Squares Structural Equation Modeling (PLS-SEM). This study demonstrates a significant and positive correlation between entrepreneurial approach and organizational learning capability, and both service innovation and organizational success. However, it is determined that service innovation does not act as a mediator in the relationship between entrepreneurial attitude and organizational learning capability in terms of organizational performance. The anticipated outcomes of this study are expected to make significant contributions to the field of science and its associated stakeholders.

The key role played by innovation in the talent management and organizational performance relationship

PurposeThe key aspect of this study is the mediating role of innovation in the relationship between talent management (TM) and organizational performance (OP).Design/methodology/approachA structural equation model with AMOS software is used to gauge the impact of TM on innovation and OP. In this regard, innovation is the mediating variable of the model. The author uses Hayes PROCESS macro for SPSS (Hayes, 2018) and the mediating procedure of Baron and Kenny's model (1986).FindingsResults show that innovation is a full mediating variable that captures the whole variance of the model in the relationship between TM and OP.Practical implicationsThe results of this study are important for organizations since they emphasize the need to adapt TM strategies to innovation and improvement in the organization. This involves not only managers and their training and development plans but also employees in their attraction, development and retention strategies.Originality/valueThe originality of this study is that it explores the causal relationship between the three variables considered in the model, that is, TM, innovation and OP. These relationships evidence gaps in human resource management and TM literature, improving current understanding of the role of innovation in the organizational context.

Mediation Effect of Corporate Entrepreneurship on the Relationship of Talent Management Practices and Organizational Performance

Bu araştırma yetenek yönetimi uygulamalarının örgüt performansı ile ilişkisi ve bu ilişki üzerinde kurumsal girişimciliğin aracılık etkisinin araştırılması amacıyla gerçekleştirilmiştir. Araştırmada internet üzerinden uygulanan anket ile şirketlerin insan kaynakları yöneticileri ve orta kademe birim yöneticilerinden toplanan toplam 1090 adet anket verisi kantitatif araştırma yöntemleri kullanılarak analiz edilmiştir. En Küçük Kareler (SEM-PLS) yöntemine dayalı yapısal eşitlik modeli kullanılarak önce ölçüm modeli sonra da yapısal eşitlik modeli ile araştırmanın hipotezleri test edilmiştir. Analiz sonuçları; kurumsal girişimciliğin örgütün finansal performansı üzerinde anlamlı pozitif etkisi olduğunu göstermiş ve yetenek yönetimi uygulamalarının kurumsal girişimcilik üzerinde anlamlı olumlu etkisini kanıtlamıştır. Yetenek yönetimi uygulamalarının şirketin finansal performansı üzerinde kurumsal girişimciliğin aracılık rolü üzerinden anlamlı olumlu etkisi ortaya çıkmıştır.

Investigation of the Effects of Knowledge Management on Organizational Performance Through Human Resource Management as Mediator

This research seeks to examine and distinguish the factors influencing empowerment and exertion of knowledge management along with the effect of knowledge management on organizational performance. In addition, this paper investigates human capital as mediator between the relationship of knowledge management and organizational performance. The conceptual model was extended based on the literature review. The primary data were gathered using a questionnaire comprising 48 questions distributed to the personnel of all branches of one of the largest private banks in Iran. Three hundred sixty-one questionnaires were randomly distributed among the personnel, and 334 questionnaires were answered. The gathered data were examined through SPSS and SMART PLS. The results demonstrated the positive impacts of variables including structure, organizational technology, strategy, culture, and trust on organizational knowledge management under study. Moreover, knowledge management directly affects the performance of the organization and through human resource management as mediator. This study motivates the managers and personnel to exploit the accessible organizational assets for enhancing knowledge management practices as well as human resources as the most exquisite organizational capitals.

A moderated-mediation analysis of supply chain efficiency, flexibility, integration, and risk management

The preparedness and stability of the defense-industry supply chains have been challenged by significant disruptions and risks that can be critical to national security. Despite increasing importance, limited studies have explored the underlying factors (i.e., efficiency, flexibility, integration, and risk management) impacting the supply chain operations of national defense companies. Hence, this study aims at exploring the relational impact of supply chain risk management (SCRM) practices and organizational performance by hypothesizing a moderated-mediation model involving operational efficiency, flexibility, and supply chain integration (SCI). Using the information processing theory, the survey-based data of 2017 respondents was collected from defense-related national institutions in Pakistan. Empirical findings based on structural equation modeling validated a significant positive SCRM è Organizational Performance relationship. According to the findings, supply chain risk management is strongly connected to operational efficiency and flexibility. Additionally, the study also substantiates the mediating effects of operational performance (i.e., efficiency and flexibility), along with the significant moderation by supply chain integration in the relationship between risk management and operational efficiency. However, the results do not support the role of operational flexibility in mediating the relationship between SCRM and OP. Furthermore, the role of SCI as a moderator between SCRM è operational flexibility was not established. This research is the first to introduce an empirically validated framework of supply chain performance in the defense industry, besides conceptualizing the direct and indirect roles of SCRM, efficiency, flexibility, and integration. This study also navigates some of the critical issues and obstacles faced by the national defense industry and highlights a holistic model that facilitates a multistage supply chain decision-making.

Meta‐analysis of the corporate planning–organizational performance relationship: A research note

AbstractResearch SummaryDespite a plethora of studies, the moderating effects of contingency factors regarding the relationship between corporate planning (CP) and organizational performance (OP) remain open to discussion. Our meta‐analysis analyzes 183 independent study samples, 84 of which are examined for the first time. We expand on previous meta‐analyses by correcting for measurement error and dichotomization, and we use moderation analyses and meta‐analytical regressions to explain heterogeneity in these studies. We find evidence for the moderating effects of task interdependence and uncertainty avoidance as contingency factors. Unexpectedly, we identify an interaction of the measurements of OP and CP with uncertainty avoidance. Our results provide new insights into the relationship between CP and OP.Management SummaryManagers who may doubt whether planning is still fruitful in turbulent times obtain a clear answer from our study: Yes, it is. CP is definitely correlated with OP. The effect sizes are stable over time and for different types of planning. However, the effect of CP on performance depends on the organizational context. Manufacturing firms benefit more than nonmanufacturing firms, and larger firms benefit more than smaller firms. Organizations in countries with high uncertainty avoidance show larger effects in relation to those in countries with low uncertainty avoidance. Finally, organizations facing high environmental uncertainty show higher effects of CP than organizations in more stable environments. However, the identified effects are conditional on the type of measurement of performance and CP.

Knowledge management technologies and organizational performance: a meta-analytic study

PurposeThis meta-analytic study tries to synthesize the mixed relationships between knowledge management technologies (KMT) and organizational performance as well as aims to explore the impacts of contextual elements, such as national culture, economy and industries, on these relationships.Design/methodology/approachFindings on various subjects from 40 previous empirical studies were examined using meta-analysis.FindingsIt was found that KMT are positively related to overall organizational performance as well as financial and nonfinancial performance and that the relationship between KMT and financial performance is stronger in developing economies than in developed economies.Practical implicationsIt helps practitioners better understand the role of KMT in organizational performance in various contexts and provides practical suggestions for KMT implementation.Originality/valueAs the first meta-analytic study to address the generalizability of KMT–organizational performance relationships, this paper offers an improved understanding of the benefits of KMT. It also expands knowledge about how contextual issues related to national culture, economies and industries affect KMT payoffs.

Mediation Effects of Fraud Prevention on the Relationship of Internal Control, Risk Management and Organizational Performance

This study aims to determine the effect of internal control and risk management on organizational performance through fraud prevention. This quantitative research type uses descriptive analysis methods and inferential statistics, namely Structural Equation Modeling (SEM) using Partial Least Square (PLS) and Microsoft Excel software. The population in this study were all auditors who worked at the Inspectorate of Southeast Sulawesi Province, amounting to 37 apparatus. By taking a sample using a saturated piece, the number of samples is 37 Apparatus at the Inspectorate of Southeast Sulawesi Province. This research is sourced from primary data and secondary data. Primary data is obtained from the results of questionnaires distributed to each respondent; secondary data is data that has been collected or data obtained from previous research results—analysis of the Structural Equation Model (SEM) using the PLS program. The study's results found that internal control and risk management had a positive and significant effect on fraud prevention; fraud prevention has a positive and significant impact on organizational performance; internal control and risk management have a positive and significant impact on organizational performance through fraud prevention. Although the internal control implemented is reasonable, it needs to be improved by increasing the identification of every possible risk to avoid risks that will occur in the future. We suggest that the Southeast Sulawesi Provincial Inspectorate can review the performance of each division in carrying out operational activities based on the achievement of performance indicators. Improve regular system maintenance activities, thereby minimizing system disturbances—more follow-up on recommendations on audit findings.

Projecting Experience of Technology-Based MSMEs in Indonesia: Role of Absorptive Capacity Matter in Strategic Alliances and Organizational Performance Relationship

This paper investigates absorptive capacity’s significance in mediating strategic alliance and organizational performance using the partial least square structural equation model (PLS-SEM) Warp PLS 7.0. The online and offline questionnaires were distributed to 308 Indonesian MSME owners/managers. The results suggest that strategic alliance directly influences the organizational performance of MSME’s technology-based in Indonesia. Further analysis attests that absorptive capacity partially mediates strategic alliance and organizational performance relationships; this research is specific to MSMEs in Indonesia, and thus generalization to other countries needs further verification. MSME’s owners or managers can use the knowledge on the relationship between the strategic alliance and organizational performance, including absorptive capacity in mediating the relationship, for policymaking and manifesting strategic alliances through collaboration with partners to achieve companies’ common goals is also highly recommended.

Exploring the Mutual Nexus of Social Capital, Social Innovations and Organizational Performance

The ability of self-reconstruction is essential to the survival of social organizations. To meet the social challenges, these organizations must enhance their creative and innovative processes. Although an extensive literature describes the impact of social capital on innovations, research on how social and organizational innovations affect organizational performance and social capital is very slim. This paper makes an addition to the literature by investigating the impact of organizational and social innovations in explaining the relationship of social capital and organizational performance. Confirmatory factor analysis, exploratory factor analysis, and structural equation modelling are used on the data gained from social organizations in China. It is found that social and organizational innovations affect the organizational performance in positive way while social capital has a vital role in this relationship by improving mutual cooperation, interaction and trust. The mediating role of social and organizational innovations in the relationship of social capital and organizational performance is formalized through structural equation modeling. The empirical findings reveal that organizational and social innovations have mediating role in relationship of organizational performance and social capital. The empirical results do not support the direct relationship between organizational performance and social capital or between innovations and organizational performance. It is also found that social and organizational innovations are necessary to improve the relationship of organizational performance and social capital.

Storm politics: how governmental response to natural disasters is influenced by capacity

Despite the remarkable gains in performance research, public administration field still lacks more empirical analysis of the organizational capacity-government performance relationship and objective measures of organizational capacity. We shed light on the role how capacity enhances performance. By using secondary longitudinal data, we focus on the actions taken by 5,570 Brazilian municipalities to prevent or reduce damage caused by natural disasters. Droughts represent a significant impact on the environment of the region, affect local economy and bring misery to the population. Our hypotheses investigate whether mayors' competence and/or municipal capabilities influence the governmental response to prevent or reduce damage caused by natural disasters. Results provide support for all three hypotheses meaning that when considering both internal dimensions of capacity, it is possible to predict the probability of a municipality adopts actions pro-environment to prevent or reduce damage caused by droughts. Although government faces various constraints, we contribute to investigate subnational organizational capacity as an input to performance of municipalities giving research a more fulsome assessment of government quality.

APPLICATION OF GREEN SUPPLY CHAIN MANAGEMENT PRACTICES ASSOCIATED WITH TOTAL QUALITY MANAGEMENT AND JUST-IN-TIME FUNCTIONS TO IMPROVE ORGANIZATIONAL PERFORMANCE IN MANUFACTURING COMPANIES

Several prior studies have highlighted the importance of green supply chain management practices in enhancing organization performance but empirical evidences of its operational antecedents are limited. Therefore, the present study aims to evaluate the potential operating antecedents of green supply chain management practices. The present study is unique as it is intended to assess the combined effect of TQM and JIT on green supply chain management practices consequently enhancing organizational performance. For this purpose the data from 318 employees was collected from Indonesian manufacturing companies. The data was analysed using SmartPLS 3 software adopting PLS-SEM approach. The findings of the study reveled a positive relationship of JIT and TQM with green supply chain management practices. The findings also provide empirical evidence of the mediting effect of green supply chain management practices between the relationship of JIT, TQM and organizational performance. KEYWORDS: Just-in-Time (JIT), Total Quality Management (TQM), Green supply chain management practices

Impact of Entrepreneurial Orientation on Performance of Quoted Breweries in Nigeria

This empirical study investigated the impact of entrepreneurial orientation (OE) on organizational performance (OP) of quoted breweries in Nigeria considering the mediating effect of organizational embeddedness in the OE-OP relationship under the theoretical lens of the Resource Based (RBV) theory. The focus was on the five quoted breweries in Nigeria- Guinness Nigeria Plc, Nigeria Breweries Plc, Champions Breweries Plc, Golden Guinea Breweries Plc and International Breweries Plc. The study used survey design. Data were collected from 1,120 employees of the five quoted breweries through a questionnaire and analyzed by Partial Least Square - Structural Equation Modeling (Maximum Likelihood). The result showed a significant positive relationship between entrepreneurial orientation (risk-taking, innovativeness and proactiveness) and organizational performance (organizational effectiveness and employee satisfaction) and concluded that organizational embeddedness positively mediates the relationship between entrepreneurial orientation and organizational performance. The findings of this study provide organizational performance guidelines for management of the breweries. The research work considers the effect of the mediating role of organizational embeddedness in the entrepreneurial orientation – organizational performance relationship. This is a gap that has not been fully investigated in the literatures reviewed.

Social capital and organizational performance: The mediating role of innovation activities and intellectual capital

While the positive influence of intellectual capital on innovation is well-established in the extant literature, research on how innovation activities affect intellectual capital is relatively scarce. Moreover, even though there is ample research showing the positive relationship between social capital and organizational performance, its significance is generally underappreciated by practitioners. This paper aims to contribute to the literature by investigating the influence of innovation activities on the depth of intellectual capital and the role they play in the relationship of social capital and organizational performance, using Turkish public hospitals as an exemplary application case. We argue that the activities carried out in these institutions during the innovation implementation process contribute to intellectual capital internally, with positive impacts on organizational performance. We hypothesize that social capital plays a vital role in this relationship by enhancing social interaction while fostering trust and cooperation. We formalize these ideas in a structural equation modeling framework in which innovation activities and intellectual capital serially mediate the relationship between social capital and performance and show that the implications of our model are supported by data from Turkish public hospitals. We find no evidence of a direct link between social capital and performance or between innovation activities and performance and determine that intellectual capital is the crucial link between social capital and organizational performance.

The Moderating Effect of Human Capital on the Relationship between Enterprise Risk Management and Organization Performance

In today’s challenging global economy, risk management is encountering a significant transformation. Organizations are switching their risk management method to enterprise-wide from the traditional compartmentalized approach. Enterprise risk management (ERM), which aims at increasing the sustainability of an organization and achieving competitive advantage, is gaining global attention and fast becoming an essential concern in all industries. Despite the importance of the knowledge embedded in people in the current knowledge-based economy, there remains a paucity of evidence concerning how human capital could influence the organization’s ERM. Based on the Resource-based view (RBV) theory, this study analyses the correlation between ERM, human capital, and performance in Malaysian public listed companies (PLCs). For this study, 500 questionnaires had been distributed, and 116 responses were obtained. Structural Equation Modeling (SEM) had been used to assess the fitness of the conceptual model. This study found a significant relationship between ERM and organizational performance, and this relationship is moderated by human capital. This study contributes to the ERM literature by providing empirical evidence on the relationship of ERM, human capital, and organizational performance. Findings from this study also provide guidelines for managers, policymakers, and the regulatory bodies to evaluate the ERM practices in PLCs.

Blind faith or hard evidence? Exploring the indirect performance impact of design thinking practices in R&D

Design thinking has recently been the subject of considerable attention from academics and practitioners. In management discourse, design thinking is a creative and human‐centred problem‐solving approach based on designers’ practices, used mainly in the pursuit of product, service and process innovation. Despite being increasingly promoted and adopted as an approach to innovation, we know little about whether and how design thinking influences firm performance. Drawing upon the resource‐based view of the firm and dynamic capability theory, this paper answers these questions via a two‐study approach in the context of R&D. Study 1 explores the perceived performance impact of design thinking in a descriptive way. Study 2 investigates the mediating role of organizational innovative capability in design thinking and organizational innovative performance relationship. The results from these two studies shed light on design thinking’s performance impact. In addition, they add evidentiary support to the contention that design‐thinking practices applied in R&D help develop organizational innovative capability, which in turn increases organizational innovative performance. This research adds welcome evidentiary support to the contention that design thinking practices, applied in R&D, help develop organizational innovative capability, which in turn increases organizational innovative performance. Our study offers a theory‐based and actionable approach which explains the underlying mechanism through which a firm can boost its innovation performance by the adoption of design thinking.