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Article
Publication date: 18 May 2020

Hang Lee, Yung-Chang Hsiao, Chung-Jen Chen and Ruey-Shan Guo

This study aims to examine the relationship between organizational capacity, slack resource, platform strategic choice and firm performance. It also tackles the endogenous issues…

Abstract

Purpose

This study aims to examine the relationship between organizational capacity, slack resource, platform strategic choice and firm performance. It also tackles the endogenous issues regarding the strategic choice of platform types.

Design/methodology/approach

This study uses Heckman’s two-stage procedures to examine the relationship between the variables. The sample in this study comes from Compustat annual company and segment files. The sample used in the main analysis consists of 252 individual corporations globally and 3,528 firm-year observations from 2004–2017.

Findings

The empirical results suggest that: (1) firms are more likely to develop physical platforms than virtual platforms when they possess higher levels of available slack, potential slack, research and development (R&D) capacity and marketing capacity; (2) in general, firms developing physical platforms perform better than firms developing virtual platforms after the endogeneity bias are controlled; and (3) firms that choose to develop physical platforms perform better than if they had chosen to develop virtual platforms.

Research limitations/implications

This study contributes to the platform research literature by proposing the endogenous role of platform type choice in firm performance in the context of the retail industry. Prior conceptual and theoretical platform studies have seldom focused on the retail industry through a strategic choice perspective. Furthermore, one of the contributions of this study is the derivation of empirical support for the research’s prediction using data from actual firms carried out by global physical and virtual platform companies. This study also presents many opportunities for further explorations on the relationship between firm strategic choice and firm performance in the context of platform retail industry.

Practical implications

The findings of this study suggest that firms must realize that their performance is not necessarily affected by these platform type choice determinants in terms of potential slack, available slack, R&D capacity and marketing capacity. By contrast, they should pay more attention to developing physical platforms if it is possible. The study findings indicate that although virtual platforms have grown rapidly because of the development of technology, firm performance is at all times superior when firms choose to develop physical platforms.

Originality/value

Prior platform studies have focused on the topic of network structure, platform architecture, pricing strategy, platform leadership and platform design and governance within the context of video game industry, software industry, hardware industry and telecommunications industry. Seldom of them focus on other industries through a strategic choice perspective. Furthermore, one of the contributions of this study is the derivation of empirical support for the research’s prediction using data from actual firms carried out by global physical and virtual platform companies.

Details

Journal of Business & Industrial Marketing, vol. 35 no. 12
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 2 April 2019

Yung-Chang Hsiao and Ming-Ho Wu

The purpose of this paper is to review and re-examine the role of the organization-level determinants from the perspectives of competence-based views.

1911

Abstract

Purpose

The purpose of this paper is to review and re-examine the role of the organization-level determinants from the perspectives of competence-based views.

Design/methodology/approach

Regression analysis was used to test the hypotheses in a sample of 80 cases drawn from a population of the top 5,000 Taiwanese firms listed in the yearbook published by the China Credit Information Service Incorporation.

Findings

The empirical results indicate that formalization is positively related to new product performance while decentralization has an inverse U-shaped curvilinear effect on new product performance. Furthermore, the regression findings also indicate that market-oriented strategy negatively moderates the relationship between formalization and new product performance, while technology-oriented strategy positively moderates the curvilinear relationship between decentralization and new product performance.

Originality/value

Extant literatures have paid attention to investigating the determinants to the performance of the new product development, but some of the results, such as in the organizational levels, are confusing and mixed. Contrary to previous works, the purpose of this paper is to review and re-examine the role of the organization levels determinants from the perspectives of competence-based view.

Details

Management Decision, vol. 58 no. 1
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 16 August 2011

Yung‐Chang Hsiao, Chung‐Jen Chen and Shao‐Chi Chang

This study aims to investigate the relationship between knowledge management capacity and organizational performance from the social interaction perspective.

2734

Abstract

Purpose

This study aims to investigate the relationship between knowledge management capacity and organizational performance from the social interaction perspective.

Design/methodology/approach

The empirical study employs a questionnaire approach. The sample for this study is drawn from the population of the top 5,000 Taiwanese firms listed in the yearbook published by the China Credit Information Service Incorporation. Regression analysis is used to test the hypotheses in a sample of 105 Taiwanese firms.

Findings

The findings suggest that two assessments of knowledge management capacity, knowledge acquisition and dissemination, and the communication factor of social interaction are positively related to organizational performance. Further, social interaction has complementary or synergistic interaction effects with knowledge management capacity on organizational performance.

Practical implications

Given the need for the use of knowledge management capacity as an enabler to improve organization outcome, firms need to be aware that social interaction would moderate the link between knowledge management capacity and organizational performance. Therefore, firms should pay special attention to formulate appropriate social interaction conditions under which knowledge acquisition and dissemination are most likely to enhance organizational performance.

Originality/value

This study contributes to the literature by theoretically developing a conceptual model and then empirically examining the relationships among knowledge management capacity, social interaction, and organizational performance.

Details

International Journal of Manpower, vol. 32 no. 5/6
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 5 April 2013

Yung‐Chang Hsiao and Chung‐Jen Chen

This study attempts to investigate the relationships among organizational capabilities, strategic choice, and firm performance and examine three questions: What are the…

2634

Abstract

Purpose

This study attempts to investigate the relationships among organizational capabilities, strategic choice, and firm performance and examine three questions: What are the relationships between organizational capabilities and the firm's strategic choice – contract manufacturing and branding? Do branding firms perform better than contract manufacturing firms after controlling for endogeneity bias? Do firms usually choose their strategy (contract manufacturing/branding) appropriately to achieve a better performance under the conditions they encounter?

Design/methodology/approach

The empirical study employs a questionnaire approach to collect data from the population of the top 5,000 Taiwanese firms listed in the yearbook published by the China Credit Information Service Incorporation for testing the validity of the model and research hypotheses. This study uses a Heckman two‐step estimation procedure and follows the procedure proposed by Shaver to examine the economic implications of strategic choice on firm performance.

Findings

Firms are more likely to adopt the branding strategy when they have better marketing and R&D capabilities while they are more likely to choose the contract manufacturing strategy when they possess superior manufacturing and process capabilities; in general branding firms perform better than contract manufacturing firms after controlling for endogeneity bias; and firms achieve a better performance if their strategic choice (contract manufacturing/branding) fits the conditions they encounter.

Research limitations/implications

This study contributes to the marketing literature by exploring an important issue of strategic choice (contract manufacturing or branding) and contributes to the strategy literature by proposing the endogenous role of strategic choice in the relationship between organizational capabilities and firm performance.

Practical implications

Firms should take into account organizational capabilities when choosing a contract manufacturing strategy or branding strategy. Further, managers should not ignore matching their strategic choice (contract manufacturing/branding) with the conditions they encounter in order to optimize firm performance.

Originality/value

The strategic choice of branding or contract manufacturing is a prevalent phenomenon that has received little attention in the strategy and marketing literature. Based on the competence‐based perspective, this study examines the relationships among organizational capabilities, strategic choice, and firm performance.

Article
Publication date: 16 November 2010

Chung‐Jen Chen, Jing‐Wen Huang and Yung‐Chang Hsiao

The purpose of this paper is to investigate the effects of organizational climate and structure on knowledge management and firm innovativeness from the social capital and social…

7627

Abstract

Purpose

The purpose of this paper is to investigate the effects of organizational climate and structure on knowledge management and firm innovativeness from the social capital and social network perspectives.

Design/methodology/approach

The empirical study employed a questionnaire approach. The sample for this study was drawn from the population of the top 5,000 Taiwanese firms listed in the yearbook published by the China Credit Information Service Incorporation. Regression analysis was used to test the hypotheses in a sample of 146 Taiwanese firms.

Findings

The findings suggest that knowledge management is positively related to firm innovativeness. In addition, the effect of knowledge management on innovativeness is positively moderated by supportive climate and decentralized, integrated, and less formalized structure. The study also examines the effects of organizational climate and structure on knowledge management and the results indicate that innovative and supportive climate are positively related to knowledge management. When the organizational structure is less formalized, more decentralized and integrated, knowledge management is more enhanced.

Practical implications

Firms need to be aware of the critical role of organizational structure and climate in the transition process of knowledge management to innovative products or services.

Originality/value

This study contributes to the literature by investigating the relationships among organizational contexts of climate and structure, knowledge management, and firm innovativeness from the social capital and social network perspectives.

Details

International Journal of Manpower, vol. 31 no. 8
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 3 August 2020

This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.

112

Abstract

Purpose

This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.

Design/methodology/approach

This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.

Findings

For organizations, the choice between a physical or a virtual platform comes down to their resource slack, resilience, and potential for future R&D. This briefing looks at which approach yields the greatest dividends for competitive advantage.

Original/value

The briefing saves busy executives, strategists and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Details

Strategic Direction, vol. 36 no. 9
Type: Research Article
ISSN: 0258-0543

Keywords

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