Does competitively distinct operation enable performance in turbulent business environment? A study on finnish SMEs

• Autorzy: Timilsina B.

Identyfikatory

DOI

10.1515/mper-2016-0029

• Języki publikacji: EN

Abstrakty

EN

Aligning resource choice and operations decision in the value chain (input-process-output) is one of the most important functions of a firm not only to make its operations to be competitively distinct but also very important for the firm’s growth and survival. However, the role of competitively distinct operations in maintaining better performance in dynamic and changing business environment has remained unclear. Therefore, this paper examined the relationship between competitively distinct operations, high efficiency operations and operational performance (research model one). In the similar manner the relationship between turbulent business environments, operational performance and financial performance were also examined (research model two). The study was conducted considering survey responses from 61 small and medium size enterprises from Finland. Correlation test and structural path modelling was used to test and validate the proposed hypothesis and research model. The results showed that competitively distinct operation enables high efficiency operations, which influences operational performance positively and significantly. In the similar manner, operational performance influences financial performance positively and significantly. Likewise, turbulent business environment was found to have a negative impact on operational and financial performance. The research findings are found to be adequate enough to highlight the importance of aligning resource choice and operations decisions in reducing the impact of turbulent business environment on organizational performance.

Słowa kluczowe

EN

competitively distinct operations; high efficiency operations; turbulent business environment; operational performance; financial performance

• Wydawca: Production Engineering Committee of the Polish Academy of Sciences ; Polish Association for Production Management
• Czasopismo: Management and Production Engineering Review
• Rocznik: 2016
• Tom: Vol. 7, No. 3
• Strony: 94--104
• Opis fizyczny: Bibliogr. 57 poz., rys., tab.

Twórcy

autor

Timilsina B.

• Department of Production, University of Vaasa, Finland

Bibliografia

• [1] Verdú-Jover A.J., Lloréns-Montes F.J., GarcíaMorales V.J., Environment-flexibility coalignment and performance: an analysis in large versus small firms, Journal of Small Business Management, 44, 3, 334-349, 2006.
• [2] Coltman T., Devinney T.M., Modeling the operational capabilities for customized and commoditized services, Journal of Operations Management, 31, 7, 555-566, 2013.
• [3] Ketkar S., Sett P.K., Environmental dynamism, human resource flexibility, and firm performance: analysis of a multi-level causal model, The International Journal of Human Resource Management, 21, 8, 1173-1206, 2010.
• [4] Schwark B., Influence of regulatory uncertainty on capacity investments - Are investments in new technologies a risk mitigation measure?, 8th Conference on Applied Infrastructure Research (INFRADAY), (No. EPFL-CONF-153004), 2009.
• [5] Timilsina B., Competitively distinct operations as a key for superior and sustainable business performance: an example from Walmart, Management, 10, 3, 273-292, 2015.
• [6] Vincent F.Y., Hu K.J., An integrated approach for resource allocation in manufacturing plants, Applied Mathematics and Computation, 245, 416-426, 2014.
• [7] Chen H., Hsu W.C., Internationalization, resource allocation and firm performance, Industrial Marketing Management, 39, 7, 1103-1110, 2010.
• [8] Susarla N., Karimi A.I., Integrated campaing planning and resource allocation in batch plants, Computers & Chemical Engineering, 35, 12, 2990-3001, 2011.
• [9] Lewis M., Slack N., Operations strategy, Pearson/Prentice Hall, 2011.
• [10] Schonberger R., Knod M.E., Operations management: continuous improvement, Irwin, Homewood (III), 1994.
• [11] Zott C., Dynamic capabilities and the emergence of intraindustry differential firm performance: insights from a simulation study, Strategic Management Journal, 24, 2, 97-125, 2003.
• [12] Chase R.B., Jacobs F.R., Aquilano N.J., Operations management for competitive advantage, Boston, ma: McGraw-Hill/Irwin, 2006.
• [13] Goodale J.C., Kuratko D.F., Hornsby J.S., Covin J.G., Operations management and corporate entrepreneurship: the moderating effect of operations control on the antecedents of corporate entrepreneurial activity in relation to innovation performance, Journal of Operations Management, 29, 1, 116-27, 2011.
• [14] Teece D.J., Pisano G., Shuen A., Dynamic capabilities and strategic management, Strategic Management Journal, 18, 7, 509-533, 1997.
• [15] Falshaw J.R., Glaister K.W., Tatoglu E., Evidence on formal strategic planning and company performance, Management Decision, 44, 1, 9-30, 2006.
• [16] Duncan R.B., Perceived environmental characteristics of operational environments and perceived environmental uncertainty, Administrative Science Quarterly, 17, 2, 313-327, 1972.
• [17] Holmström J., Realizing the productivity potential of speed, Finnish Academy of Technology, 1995.
• [18] Chakravarthy B., A new strategy framework for coping with turbulence, MIT Sloan Management Review, 38, 2, 69-82, 1997.
• [19] Kraatz M.S., Zajac E.J., How organizational resources affect strategic change and performance in turbulent environments: theory and evidence, Organization Science, 12, 5, 632-657, 2001.
• [20] Gaskill L.A.R., Van Auken H.E., Manning R.A., A factor analytic study of the perceived causes of small business failure, Journal of Small Business Management, 31, 4, 18-31, 1993.
• [21] Milliken F.J., Perceiving and interpreting environmental change: an examination of college administrators’ interpretation of changing demographics, Academy of Management Journal, 33, 1, 42-63, 1990.
• [22] Drucker P., The practice of management, Harper and Row, New York, 1954.
• [23] Chandler A., Strategy and structure: chapters in the history of american industrial enterprise, Cambridge Massachusetts, MIT Press, 1962.
• [24] Christensen C.R., Andrews K.R., Bower J.L., Hammermesh R.G., Porter M.E., Business policy: text and cases, Homewood, IL: Richard D. Irwin, 1982.
• [25] Scott R., Organizations: rational, natural and open systems, Upper Saddle River, NJ: Pearson, 2003.
• [26] Emery F., Trist E., The causal texture of organizational environments, Human Relations, 18, 1, 21-32, 1965.
• [27] Ansoff H.I., McDonnel E., Implanting strategic management, Prentice-Hall, New York, NY, 1990.
• [28] Tsai K.H., Yang S.Y., The contingent value of firm innovativeness for business performance under environmental turbulence, International Entrepreneurship and Management Journal, 10, 2, 343-366, 2014.
• [29] Smith M.F., Sinha I., Lancioni R., Forman H., Role of market turbulence in shaping pricing strategy, Industrial Marketing Management, 28, 6, 637-649, 1999.
• [30] Stacey Ralph D., Complexity and creativity in organizations, Berrett-Koehler Publishers, 1996.
• [31] Boyne G.A., Meier K.J., Environmental turbulence, organizational stability, and public service performance, Administration and Society, 40, 8, 799-824, 2009.
• [32] Schon D.A., Beyond the stable state, London: Temple Smith, 1971.
• [33] Baum J.R., Wally S., Strategic decision speed and firm performance, Strategic Management Journal, 24, 11, 1107-1129, 2003.
• [34] Rosenbusch N., Rauch A., Bausch A., The mediating role of entrepreneurial orientation in the task environment - performance relationship A metaanalysis, Journal of Management, 39, 3, 633-659, 2013.
• [35] Wilden R., Gudergan S.P., The impact of dynamic capabilities on operational marketing and technological capabilities: investigating the role of environmental turbulence, Journal of the Academy of Marketing Science, 43, 2, 181-199, 2015.
• [36] Farahani H.A., Rahiminezhad A., Same L., A comparison of Partial Least Squares (PLS) and Ordinary Least Squares (OLS) regressions in predicting of couples mental health based on their communicational patterns, Procedia-Social and Behavioral Sciences, 5, 1459-1463, 2010.
• [37] Ainuddin R.A., Beamish P.W., Hulland J.S., Rouse M.J., Resource attributes and firm performance in international joint ventures, Journal of World Business, 42, 1, 47-60, 2007.
• [38] Chin W.W., The partial least squares approach to structural equation modeling, Modern Methods for Business Research, 295, 2, 295-336, 1998.
• [39] Chin W.W., Newsted P.R., Structural equation modeling analysis with small samples using partial least squares, [in:] Statistical strategies for small sample research, R.H. Hoyle [Ed.], 2, 307-342, 1999.
• [40] Wold H.O., Introduction to the second generation of multivariate analysis, [in:] Theoretical empiricism: a general rationale for scientific model-building, H.O. Wold [Ed.], pp. VIII-XL, New York, NY: Paragon House, 1989.
• [41] Jaworski B.J., Kohli A.K., Market orientation: Antecedents and consequences, Journal of Marketing: a Quarterly Publication of the American Marketing Association, 57, 3, 53-70, 1993.
• [42] Camisón C., Villar-López A., Organizational innovation as an enabler of technological innovation capabilities and firm performance, Journal of Business Research, 67, 1, 2891-2902, 2014.
• [43] Nunnally J.C., Psychometric theory, 2nd edition, New York: McGraw-Hill, 1978.
• [44] Fornell C., Larcker D.F., Evaluating structural equation models with unobservable variables and measurement error, Journal of Marketing Research, 18, 1, 39-50, 1981.
• [45] Cillo P., De Luca L.M., Troilo G., Market information approaches, product innovativeness, and firm performance: an empirical study in the fashion industry, Research Policy, 39, 9, 1242-1252, 2010.
• [46] Matzler K., Bidmon S., Grabner-Kräuter S., Individual determinants of brand affect: the role of the personality traits of extraversion and openness to experience, Journal of Product & Brand Management, 15, 7, 427-434, 2006.
• [47] Colucci M., Presutti M., Small firms’ relationships and knowledge acquisition: an empirical investigation, Managing Complexity and Change in SMEs: Frontiers in European Research, 50, 2006.
• [48] Hamzah Z.L., Othman M.N., Alwi S.F., Corporate brand: online, [in:] Corporate Branding: Areas, arenas and approaches, T.C. Melewar, S.S. Alwi [Eds.], 2015.
• [49] Hair J.F., Black W.C., Babin B.J., Anderson R.E., Multivariate data analysis, Englewood Cliffs, NJ: Prentice Hall, 2006.
• [50] Falk R.F., Miller N.B., A premier for soft modeling, The University of Akron, Akron, 1992.
• [51] Paliszkiewicz J., Koohang A., Gołuchowski J., Horn Nord J., Management trust, organizational trust, and organizational performance: advancing and measuring a theoretical model, Management and Production Engineering Review, 5, 1, 32-41, 2014.
• [52] Helfat C.E., Winter S.G., Untangling dynamic and operational capabilities: strategy for the (N) everchanging world, Strategic Management Journal, 32, 11, 1243 Role of entrepreneurship and market orientation in firm’s success 1250, 2011.
• [53] Edelman L.F., Brush C.G., Manolova T., Coalignment in the resource - performance relationship: strategy as mediator, Journal of Business Venturing, 20, 3, 359-383, 2005.
• [54] Akgün A.E., Keskin H., Byrne J., The moderating role of environmental dynamism between firm emotional capability and performance, Journal of Organizational Change Management, 21, 2, 230-252, 2008.
• [55] Gonzalez-Benito O., Gonzalez-Benito J., MunozGallego P.A., Role of entrepreneurship and market orientation in firm’s success, European Journal of Marketing, 43, 3/4, 500-522, 2009.
• [56] Rodríguez-Pinto J., Rodríguez-Escudero A.I., Gutiérrez-Cillán J., Order, positioning, scope and outcomes of market entry, Industrial Marketing Management, 37, 2, 154-166, 2008.
• [57] Barclay D.W., Higgins C., Thompson R., The partial least squares approach to causal modeling: personal computer adoption and use as illustration, Technology Studies, 2, 2, 285-309, 1995.

Uwagi

Opracowanie ze środków MNiSW w ramach umowy 812/P-DUN/2016 na działalność upowszechniającą naukę.