The authors use panel data constructed from the responses of repeatedly surveyed top managers at 261 companies regarding their firm's market orientation, along with objective performance measures, to ...investigate the influence of market orientation on performance for a nine-year period from 1997 to 2005. The authors measure market orientation in 1997, 2001, and 2005 and estimate it in the interval between these measurement periods. The analyses indicate that market orientation has a positive effect on business performance in both the short and the long run. However, the sustained advantage in business performance from having a market orientation is greater for the firms that are early to develop a market orientation. These firms also gain more in sales and profit than firms that are late in developing a market orientation. Firms that adopt a market orientation may also realize additional benefit in the form of a lift in sales and profit due to a carryover effect. Market orientation should have a more pronounced effect on a firm's profit than sales because a market orientation focuses efforts on customer retention rather than on acquisition. Environmental turbulence and competitive intensity moderate the main effect of market orientation on business performance, but the moderating effects are greater in the 1990s than in the 2000s. PUBLICATION ABSTRACT
The purposes of this study are to investigate the impact of brand value on business performance and to examine whether the impact of brand value on business performance differs between high and low ...product involvement. Based on the top 100 brands ranked by Interbrand in 2021, linear regression analysis and moderation analysis by SPSS and AMOS were used to examine our proposed hypotheses. The results showed that brand value had a significantly positive effect on business performance. The findings imply that stronger brand valuation impacts are associated with companies that do better financially. In other words, business revenue is significantly determined by a higher brand valuation. The result of the moderation effect reveals that product involvement moderates the effect of brand value on business performance in such a way that the association between brand value and business performance is stronger in low-involvement products than in high-involvement products. The findings validate the notion that a marketer's endeavors toward brand investments constitute a noteworthy origin of activity that adds value. Our study is one of the first to investigate, using empirical data on leading brands across several industries, the impact that brand value can have on business performance. It also broadens the scope of existing understanding regarding the moderating effect of product involvement in regulating a brand's effectiveness. Doi: 10.28991/HIJ-2024-05-01-06 Full Text: PDF
Why do small businesses in developing countries embrace sustainable business practices and what are the effects on their performance? We address these questions by drawing on the natural-resource ...based view of the firm to argue that the environmental sustainability orientation of small businesses can be explained by their entrepreneurial orientation. Our study of 197 small businesses in the Philippines shows that an entrepreneurial strategic orientation enables them to develop a more proactive stance toward environmental sustainability practices which lead to superior firm performance. The implications of the findings for future research and for public policy for small businesses are also discussed.
Purpose: This study interrogates the interfering role of absorptive capacity in the relationship between the effectual actions of small businesses and their performance. Design/methodology/approach: ...Structured questionnaires were used to generate primary data from 685 small businesses from a variety of sectors in South Africa. The data was used to interrogate the hypothesized relationships using the partial least squares structural equation modeling technique. Findings: The findings report a significantly positive relationship between effectuation and small business performance. Further, it is revealed that absorptive capacity partially mediates the relationship between effectuation and small business performance. Research limitations/implications: The limitations of this study include the use of primary data from a sample of small businesses in South Africa and dependence on specific modeling techniques. The implications of this research provide a deeper understanding of the mediating effects of absorptive capacity on the relationship between effectual actions and small business performance. Practical implications: This study provides fresh insights into the mediating effects of the absorptive capacity capability of small businesses in the continuous interaction between their effectual actions and performance. As such, it highlights the connection between the growing theory of effectuation and existing theories in the field of management sciences. This study enables the emergence of knowledge that could spur small businesses to effectively navigate the endemic uncertainties prevalent in their contexts. Originality/value: This study contributes to the understanding of the role of absorptive capacity in the relationship between effectual actions and small business performance, thus adding value to the literature on small business management. Paper type: This research is empirical.
Past research has shown that new firms can facilitate resource mobilization by signaling their unobservable quality to prospective resource providers. However, we know less about situations in which ...firms convey multiple signals of different strengths-that is, signals that are more- or less-correlated with unobservable firm quality. Building on a sociocognitive perspective, we propose that prospective resource providers respond differently to signals of different strengths and that the effectiveness of signals, especially weak signals, will be contingent on the media attention new firms receive. Empirically, we conduct a longitudinal analysis examining the ability of new private equity firms to raise a follow-on fund. Consistent with our theory, we find that unrealized performance, a relatively weak signal, positively influences fundraising. However, we fail to find statistical evidence that its effect is weaker than that of realized performance, a relatively strong signal. Further, media attention strengthens the relationship between unrealized performance and fundraising, but media attention exerts less impact on the relationship between realized performance and fundraising. Taken together, our findings deepen our understanding of how new firms can mobilize resources with signals of different strengths and of how the media-as a key information intermediary-differently impacts their effectiveness.
This study explores the empirical relationships between GHG emissions and an extensive range of business performance measures for UK FTSE-350 listed firms over the first decade or so of such ...reporting. Despite the popular and policy generated environmental imperatives over this period—along with growing evidence of the corporate added-value of having an ‘environmental conscience’, voluntary disclosure of emissions has been slow to adopt by firms. The leading contribution is to present clear evidence of a non-linear relationship, initially increasing with firm performance and then decreasing. An extensive pattern of non-reporting of emissions is also observed over time, and prior literature has introduced questions of endogeneity existing between firm performance and emissions. Steps are taken to ensure confidence/robustness of the results to these concerns. Accordingly, a two-stage (Heckman-type) selection model is used to analyse the emissions-performance nexus conditional upon the firm choosing to report (i.e. treating the choice to report as being endogenously determined with firm performance). From this—in addition to confirming the robustness of the non-linear relationship—it can be observed that the decision to report emissions is not directly influenced by wider social/governance disclosure attitudes of a firm, thus suggesting that firms disassociate environmental responsibility from social responsibility.
The amount of research conducted on the topic of international entrepreneurial orientation (IEO) has grown exponentially in recent years, thus inviting an analysis of the scholarly conversations ...taking place. This paper is a review and commentary on how the construct of entrepreneurial orientation (EO) has been leveraged within the international entrepreneurship literature. The possible distinctiveness of the EO and IEO constructs are considered, and the major themes of IEO research are summarized. Several measurement–related issues particularly pertinent to the assessment of EO as a generalizable/universalistic phenomenon are considered. The paper concludes with the identification of research foci whose pursuit promises to advance IEO knowledge along productive paths.
It is generally assumed that increased satisfaction levels lead to improved financial performance. However, this assumed relationship is, by and large, still to be proven in a more general setting, ...especially with respect to European sectors and industries. This research aims to identify empirically relationships between customer loyalty and satisfaction and profitability measured as ROA, ROE, profit margin and operating income, as well as market indicators (market capitalisation and Tobin's q). The research sample is made up of nine Scandinavian banks observed on an annual basis between 2004 and 2014. We can confirm that customer satisfaction and loyalty have a significant positive influence on banks' profitability and can be considered as a predictor for future profitability as the satisfaction index of the preceding year influences the next year's financial performance. We are also able to confirm that there is a positive link between the customer satisfaction of the preceding year and market indicators of the current year. These results are important for both decision makers in banks and investors. They mean that decision makers and investors can take the bank's level and trend in customer satisfaction to make assumptions on its future profitability and market performance.
This research aims to determine how the competence of the human resources of small and medium entrepreneurs in Surabaya, Sidaorjo, and how their competencies affect their business performance ...partially or simultaneously. The research method used is descriptive exploratory. And competency variables are translated into four indicators: Knowledge, Skills, Ability, and Leadership. To answer research problems and test hypotheses, researchers used statistical analysis with SPSS software, especially correlation analysis, regression, F test, and t-test. Purposive sampling was utilized to choose the sample of respondents for this study, who were MSME respondents for leather items from Small and Medium Enterprises in Surabaya, Sidoarjo. The test results demonstrate that by enhancing the performance of MSME employees through leadership elements and their abilities, product creation may be made better.
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