Mahmoud Abdelaziz Ahmed Abdelaziz, Jiani Wu, Changwei Yuan and Mohamed Ahmed Ghonim
In light of the current challenges in the business environment, firms, particularly those involved in supply chains, must foster innovation. In this context, the current study…
Abstract
Purpose
In light of the current challenges in the business environment, firms, particularly those involved in supply chains, must foster innovation. In this context, the current study employs the theory of dynamic organizational capabilities (DOCs) to track supply chain learning capabilities (SCLCs) and independently uncover their relationship to innovation at both the product and process levels. Similarly, the study intends to investigate the influence of technological turbulence (TT) on these relationships as a moderating variable.
Design/methodology/approach
The data were gathered using in-person interviews with 189 CEOs with some supply chain management proficiency from small and medium-sized enterprises (SMEs) in the industrial zones of eastern Egypt. The study used a survey approach to collect data, and the SEM-PLS technique was utilized to analyze the data.
Findings
Study findings revealed that SCLCs positively affect product and process innovation. In addition, TT positively moderates the relationship between SCLCs and product and process innovation, except for risk-taking capability. Further theoretical and practical implications are derived from the study findings.
Originality/value
This research adds to the knowledge of the dynamic capabilities theory (DCT), which affects how firms interact with their external environment. Studying learning capabilities are employed as essential competencies to counterbalance high levels of TT in the external environment in terms of innovative performance and vice versa if firms do not attempt to strengthen their dynamic learning capabilities in supply chains. In addition, this study contributes to the literature by studying learning capabilities from the external perspective, where SCLCs are being developed as a new variable to improve innovation.
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Changwei Pang, Qiong Wang, Yuan Li and Guang Duan
The purpose of this paper is to examine how business model innovation (BMI) mediates the relationship between integrative capability, business strategy and firm performance.
Abstract
Purpose
The purpose of this paper is to examine how business model innovation (BMI) mediates the relationship between integrative capability, business strategy and firm performance.
Design/methodology/approach
A literature review provides the model and hypotheses. Using a sample of 165 Chinese firms, the authors conduct the examination using a theoretical model and hypotheses following standard analysis methods.
Findings
The results show that BMI positively mediates the relationship between integrative capability and firm performance. Moreover, a differentiation strategy positively moderates the link between BMI and firm performance, while a cost leadership strategy presents a significantly negative moderating effect.
Research limitations/implications
First, the authors test the hypotheses using data from China; thus data from other emerging economies should be tested. Second, the authors use cross-sectional data in this study making it impossible to verify the dynamic developed in the process of BMI; a longitudinal study could provide a more comprehensive understanding. Third, the authors consider one intermediate mechanism to test the relationship of integrative capability and firm performance; additional factors may link integrative capability and firm performance.
Practical implications
The mediating effect of BMI suggests managers should pay more attention to BMI to improve firm performance, and they should understand that BMI’s role varies across different business strategies.
Originality/value
The paper is original in its investigation of the effect of integrative capability and BMI on firm performance using data from China and demonstrates the mediating effect of BMI on the relationship between integrative capability and firm performance.
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Changwei Pang, Qiong Wang and Songqiang Wu
The purpose of this paper is to examine the underlying mediating mechanism and contextual conditions in the relationship between dynamic capabilities and novelty-centered business…
Abstract
Purpose
The purpose of this paper is to examine the underlying mediating mechanism and contextual conditions in the relationship between dynamic capabilities and novelty-centered business model design (NCBMD).
Design/methodology/approach
Using data from 146 firms in China and the process conditional modeling, the authors acquire evidence supporting the hypothesized moderated mediation.
Findings
The authors find that interfunctional coordination plays a crucial mediator role in the relationship between dynamic capabilities and NCBMD. Environmental dynamism positively moderates the mediating effect of interfunctional coordination on the relationship of dynamic capabilities and NCBMD.
Research limitations/implications
First, the research setting focuses on a specific intermediary mechanism of dynamic capabilities on NCBMD. Second, dynamic capabilities are considered as an integrative construct in the study. Future research could further examine the effect mechanism of dynamic capabilities' sub-dimensions, which might provide more theoretical findings. Third, the impact of public policies, an important source of environmental dynamism, on NCBMD needs a fine-grained analysis. Fourth, the sample data restricts the popularity of the conclusion.
Practical implications
First, firms should be aware of the irreplaceable role of dynamic capabilities in the process of designing a novel business model. Second, firms promoting the design of business models should pay more attention to interfunctional coordination. Third, the significant moderating mediation effect reveals that the importance of interfunctional coordination for the relationship between dynamic capabilities and NCBMD under a highly dynamic environment.
Originality/value
First, the authors reveal how a firm's dynamic capabilities can promote NCBMD. By focusing on the influence of dynamic capabilities on NCBMD, the authors elucidate the source of value creation from the perspective of organizational capability. Second, the analysis of mediating effect delineates the bridging mechanism of dynamic capabilities and NCBMD. These findings emphasize the important role of interfunctional coordination in designing a novel business model. Third, given the context of this research, the results present implications for the role of a dynamic environment. For the methodology of theoretical research, the different findings indicate that scholars could further refine the manipulation of moderators, which contributes to elucidate new conclusions ignored in the past studies. Accordingly, this research extends both theoretical research and methodology.
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Changwei Pang, Hao Shen and Yuan Li
The purpose of this paper is to investigate the relationships between organizational slack, environmental characteristics, and new venture performance in China. The paper focuses…
Abstract
Purpose
The purpose of this paper is to investigate the relationships between organizational slack, environmental characteristics, and new venture performance in China. The paper focuses on how different types of organizational slack, such as absorbed slack and unabsorbed slack, impact Chinese new venture performance. And it also examines the moderating effects of environmental characteristics, such as munificence and dynamism, on the slack‐performance linkage in Chinese transitional context.
Design/methodology/approach
A literature review on organizational slack and institutional environment characteristics provides the model and hypothesis. Using a sample of 91 Chinese new ventures, the authors conduct the examination on the theoretical model and hypotheses.
Findings
The results show that the relationship between absorbed slack and new venture performance is negative and unabsorbed slack has an inverse U‐shaped effect on new venture performance. Furthermore, the institutional environments, such as munificence and dynamism in transitional economies have different moderating effects on the relationship between organizational slack and new venture performance.
Research limitations/implications
This study focuses on the new ventures of China, which is context specific. It is necessary to replicate this research in other transitional economies because of some specific differences between China and other transitional economies.
Practical implications
The results of the study suggest that new ventures should strengthen the management of resources and decrease absorbed slack in order to reduce the managerial cost, and then raise the level of resource utilization. In addition, how the new ventures make better utilization of organizational slack to deal with institutional environment uncertainty would be a core task in future business operations.
Originality/value
The paper is original in its investigation of the effect of organizational slack on new venture performance in contingent transitional environments. The paper explains the relationship between different types of organizational slack and new venture performance from a contingent perspective, thus extending the extant research.
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Qianqian Shi, Longyu Yao, Changwei Bi and Jianbo Zhu
The construction of megaprojects often involves substantial risks. While insurance plays an important role as a traditional risk transfer means, owners and insurance companies may…
Abstract
Purpose
The construction of megaprojects often involves substantial risks. While insurance plays an important role as a traditional risk transfer means, owners and insurance companies may still suffer huge losses during the risk management process. Therefore, considering the strong motivation of insurance companies to participate in the on-site risk management of megaprojects, this study aims to propose a collaborative incentive mechanism involving insurance companies, to optimize the risk management effect and reduce the risk of accidents in megaprojects.
Design/methodology/approach
Based on principal-agent theory, the research develops the static and dynamic incentive models for risk management in megaprojects, involving both the owner and insurance company. The study examines the primary factors influencing incentive efficiency. The results are numerically simulated with a validation case. Finally, the impact of parameter changes on the stakeholders' benefits is analyzed.
Findings
The results indicate that the dynamic incentive model is available to the achievement of a flexible mechanism to ensure the benefits of contractors while protecting the benefits of the owner and insurance company. Adjusting the incentive coefficients for owners and insurance companies within a specified range promotes the growth of benefits for all parties involved. The management cost and economic benefit allocation coefficients have a positive effect on the adjustment range of the incentive coefficient, which helps implement a more flexible dynamic incentive mechanism to motivate contractors to carry out risk management to reduce risk losses.
Originality/value
This study makes up for the absence of important stakeholders in risk management. Different from traditional megaproject risk management, this model uses insurance companies as bridges to break the island effect of risk management among multiple megaprojects. This study contributes to the body of knowledge by designing appropriate dynamic incentive mechanisms in megaproject risk management through insurance company participation, and provides practical implications to both owner and insurance company on incentive contract making, thus achieving better risk governance of megaprojects.
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Hai-xi Jiang and Nan-ping Jiang
A more accurate comprehension of data elements and the exploration of new laws governing contemporary data in both theoretical and practical domains…
Abstract
Purpose
A more accurate comprehension of data elements and the exploration of new laws governing contemporary data in both theoretical and practical domains constitute a significant research topic.
Design/methodology/approach
Based on the perspective of evolutionary economics, this paper re-examines economic history and existing literature to study the following: changes in the “connotation of production factors” in economics caused by the evolution of production factors; the economic paradoxes formed by data in the context of social production processes and business models, which traditional theoretical frameworks fail to solve; the disruptive innovation of classical theory of value by multiple theories of value determination and the conflicts between the data market monopoly as well as the resulting distribution of value and the real economic society. The research indicates that contemporary advancements in data have catalyzed transformative innovation within the field of economics.
Findings
The research indicates that contemporary advancements in data have catalyzed disruptive innovation in the field of economics.
Originality/value
This paper, grounded in academic research, identifies four novel issues arising from contemporary data that cannot be adequately addressed within the confines of the classical economic theoretical framework.