Gurjeet Kaur Sahi, Mahesh C. Gupta, T.C.E. Cheng and Subhash C. Lonial
Premised on dynamic capability theory, the purpose of this paper is to explore the link between entrepreneurial orientation (EO) and operational responsiveness (OR). In addition…
Abstract
Purpose
Premised on dynamic capability theory, the purpose of this paper is to explore the link between entrepreneurial orientation (EO) and operational responsiveness (OR). In addition, grounded in contingency theory, the authors examine the roles of competitive intensity and technological turbulence in affecting the entrepreneurial orientation and OR link.
Design/methodology/approach
This study proposes that firms’ entrepreneurial initiatives in terms of innovativeness, proactiveness and risk-taking significantly affect their responsiveness. Competitive intensity and technological turbulence moderate the EO and OR relationship. Using hierarchical regression analysis, the authors analyze the data generated from a sample of 164 small-and-medium enterprises in the USA.
Findings
The findings show that entrepreneurial initiatives are instrumental in responding to market requirements, which in turn results in superior performance. The authors also find that the interactive effects of innovativeness/risk-taking and competitive intensity are significant and positive, while those of innovativeness/proactiveness and technological turbulence on responsiveness are significant but negative. These findings imply that OR is effective when the level of competitive intensity is high while technological turbulence is low.
Research limitations/implications
The authors conclude the paper by suggesting that entrepreneurial actions are pre-requisites for OR, which becomes effective only when the market experiences a moderate level of competition and a low level of technological change. The study provides implications for cross-functional research in the areas of entrepreneurship and operations management (OM) and also suggests future directions in this research stream.
Originality/value
Although responsiveness has been recognized as a critical competitive capability in the OM literature, its relationship with EO is not fully understood and has not been empirically tested. Moreover, the interplay between EO and competitive intensity/technological turbulence and their effects on effective OR have not been gauged in the past.
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Stuart Van Auken and Subhash C. Lonial
Multidimensional scaling (MDS) has often been utilised in retailstore positioning and repositioning research. However, MDS resultsconstrain store movement to existing perceptual…
Abstract
Multidimensional scaling (MDS) has often been utilised in retail store positioning and repositioning research. However, MDS results constrain store movement to existing perceptual dimensions. This work indicates that an assessment of higher level preference functions should be conducted before utilising MDS results in store positioning. Despite this limitation, the ability of MDS to reveal current perceptual criteria means that it can serve as a very useful diagnostic. In this regard, MDS can be utilised to determine if a new dimension has emerged from a given positioning, or whether consumers have changed the salience of their perceptual criteria, as a result of a positioning. It can also reveal if a referent store has moved in the appropriate direction (e.g. away from competitors and towards a gap that evidences utility).
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Yash P. Gupta, Subhash C. Lonial and W. Glynn Mangold
The development of a manufacturing strategy that is in consonancewith marketing objectives is an essential ingredient for success in thecurrent business environment. Therefore…
Abstract
The development of a manufacturing strategy that is in consonance with marketing objectives is an essential ingredient for success in the current business environment. Therefore, the relationship between marketing objectives and manufacturing strategies was examined in this article. Responses from 175 manufacturing organisations indicated that high levels of process structure complexity and organisational scope are associated with companies that have a dominant market share. Conversely, organisations that are minor competitors tend to have lower levels of process structure complexity and organisational scope.
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Subhash C. Lonial, Mehves Tarim, Ekrem Tatoglu, Selim Zaim and Halil Zaim
The principal aim of this study is to determine the critical factors of market orientation (MO) and to measure its effect on new service development (NSD) and financial…
Abstract
Purpose
The principal aim of this study is to determine the critical factors of market orientation (MO) and to measure its effect on new service development (NSD) and financial performance of hospital industry in Turkey.
Design/methodology/approach
Drawing on a self‐administered questionnaire, the data were collected from a sample of privately‐held general hospitals within the city of Istanbul in Turkey. Based on theoretical considerations, a model was proposed to examine the interrelationships among MO, NSD‐performance and financial performance.
Findings
Data analysis reveals that while MO has a strong and positive effect on NSD‐performance, it has no significant effect on financial performance. Also a strong and positive relationship was noted between NSD‐performance and financial performance. Finally, the findings also provided evidence for the mediating role of NSD‐performance in the relationship between MO and financial performance in the hospital industry.
Research limitations/implications
First, due to relatively small sample size, a caution should be exercised when interpreting the results. Second, the data were collected from hospitals in Turkey, which may restrict to some extent generalizability of findings. Third, we relied on the subjective evaluations of senior executives. It would therefore be useful to replicate the results with objective measures of performance indicators.
Practical implications
Although there is compelling evidence that MO has a positive effect on business performance, it alone may not be able to produce superior performance. Many hospitals are committed to MO and new services development. The framework clearly indicates that a strong commitment to both the NSD‐performance and marketing areas is essential for improving the financial performance of hospitals. Also, to remain competitive in today's healthcare industry, hospital managers should all keep pace with the daily changes in the market place and stay attuned to NSD activities and quality management practices.
Originality/value
The main thrust of this study is to investigate whether the relationship between MO and financial performance is mediated by NSD‐performance in hospital industry. This constitutes the novelty of this research as most prior empirical research investigating a mediating mechanism through which MO affects firm performance largely focused on other factors with no or little emphasis being placed on NSD activities or NSD‐performance in healthcare context.
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Gurjeet Kaur Sahi, Subhash Lonial, Mahesh Gupta and Nitasha Seli
This paper seeks to further the understanding of the domain of the IMO construct in a developing country, as suggested by Lings and Greenley. It seeks to build on their proposed…
Abstract
Purpose
This paper seeks to further the understanding of the domain of the IMO construct in a developing country, as suggested by Lings and Greenley. It seeks to build on their proposed construct and provide empirical evidence of its impact in the context of the Indian banking industry.
Design/methodology/approach
The behavioral dimensions of the construct are confirmed in a manner consistent with established market orientation (external) construct. The paper validates scale pertaining to the wants and needs of bank employees for effective intelligence generation and dissemination as well as for effective response implementation.
Findings
The authors find a positive significant relationship between internal market orientation and staff attitude and perceived customer satisfaction. Further, the impact of staff attitude on employee job satisfaction is also significant.
Research limitations/implications
Internal market orientation, with the passage of time, may not be as prevalent and exhaustive as it is now because the nature of the marketing environment is extremely dynamic. So, there is a need to make changes as time evolves so that this scale remains focused with a high level of reliability and validity.
Practical implications
To generate internal market intelligence, bank management should not only rely on internal customer surveys, but also the intelligence obtained through a variety of formal and informal means, such as meetings and discussion with internal customers; analysis of sales reports and worldwide customer databases; and formal market research, such as employees ' attitude surveys and sales response in a test market.
Originality/value
The present research would be of value to managers across the world for identifying key requirements of internal customers, which need to be evaluated consistently from time to time, for different strategic actions.
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Zhenkuo Ding, Meijuan Li, Xiaoying Yang and Wanjun Xiao
The purpose of this paper is to investigate how absorptive capacity mediates the relationship between ambidextrous organizational learning and performance among small and…
Abstract
Purpose
The purpose of this paper is to investigate how absorptive capacity mediates the relationship between ambidextrous organizational learning and performance among small and medium-sized enterprises (SMEs).
Design/methodology/approach
Based on the resource-based view (RBV) and the dynamic capability approach, this paper uses the resource-capability-performance framework to construct the theoretical model of this study and tests the theoretical model with the questionnaire survey data of 189 SMEs in mainland China.
Findings
Ambidextrous organizational learning has different effects on SMEs' performance in terms of survival performance and growth performance. Both exploitative learning and exploratory learning have positive effects on absorptive capacity, and absorptive capacity has positive influences on both the survival performance and growth performance of SMEs. Absorptive capacity plays different mediating roles in the relationships between ambidextrous organizational learning and SMEs' performance: absorptive capacity plays a partial mediating role in the relationship between exploratory learning and SME growth performance, while absorptive capacity plays complete mediating roles in other relationships.
Practical implications
Managers must stress the use of exploratory learning in order to promote SMEs' growth performance. However, to foster both absorptive capacity and SME performance in terms of survival and growth, managers must pay more attention to take advantage of ambidextrous organizational learning. Government as policymakers should create a favorable environment that enable SMEs to benefit much more from the deployment of ambidextrous organizational learning and absorptive capacity.
Originality/value
To the best of authors’ knowledge, this study is the first to theorize and test the mediating role of absorptive capacity in the linkage between ambidextrous organizational learning and SME performance in terms of survival and growth. Additionally, this study also is the first to provide empirical support for the impact of ambidextrous organizational learning on absorptive capacity among SMEs.
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Ahmet Kara, Subhash Lonial, Mehves Tarim and Selim Zaim
Are there cases or contexts where certain groups of customers who are expected to place a considerable emphasis and importance on the tangible qualities of services end up…
Abstract
Purpose
Are there cases or contexts where certain groups of customers who are expected to place a considerable emphasis and importance on the tangible qualities of services end up attributing a greater weight to the intangible qualities? This paper attempts to exemplify the existence of such cases, and explain why such cases are, at times, paradoxical in nature, and how such cases could arise.
Design/methodology/approach
The paper employs a structural‐equation‐modeling approach to theorize about, and empirically examine, the tangible and intangible determinants of service quality. The model and the path developed in the paper also capture the relationship between service quality and customer satisfaction. Using AMOS, the empirical estimation of the model is carried out.
Findings
The central finding is that all intangible factors associated with service quality turn out to be unequivocally more important than the tangible ones in the Turkish non‐profit health‐care sector under investigation. In other words, intangible factors appear to play a statistically more significant role compared with tangible factors in determining the overall customer satisfaction and the quality of non‐profit health‐care services. Considering that, in developing countries, tangible factors are expected to be among the most scarce, and hence, most valuable ones, the relative unimportance of tangible factors constitutes a paradox to be explained and resolved.
Originality/value
This paper contributes to the literature by bringing to light a striking phenomenon which is largely unnoticed in the literature, namely that, in certain cases, there might exist a fundamental asymmetry and difference between the influences of tangible and intangible factors on service quality, and that difference in certain contexts, as in the case of the Turkish health‐care sector, constitutes a paradox to be explained. The paper demonstrates the possibility of such paradoxical cases and provides cultural and sector‐specific explanations for this seemingly puzzling phenomenon in question.
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The purpose of this paper is to examine the role of perceived service attributes in the development of overall customer satisfaction (OCS) and customer loyalty (CL) in a…
Abstract
Purpose
The purpose of this paper is to examine the role of perceived service attributes in the development of overall customer satisfaction (OCS) and customer loyalty (CL) in a health-care setting. This paper also sheds light on the role of hospitalist physicians (HPs) and offers suggestions to improve patient satisfaction and loyalty.
Design/methodology/approach
A telephone survey was used to collect data from recently hospitalized patients with respect to their HP. Structural equations modeling (SEM) was used to confirm the overall relationships between perceived service quality (PSQ), OCS and CL. The sample was then divided into customer relationship groups (CRGs) based on satisfaction and loyalty measures. Discriminant analysis was used to determine which attributes differentiated most between high and low satisfaction and loyalty groups.
Findings
Overall relationships among PSQ, OCS and CL were in conformity with the conceptual model. Findings also revealed that service attributes played an important role in distinguishing between high and low satisfaction and loyalty groups, although some attributes were more important than others and different attributes emerged as being key influencers for satisfaction and loyalty.
Research limitations/implications
The conceptual model used is a fairly straight forward model, and we have not considered the impact of individual factors such as expectations and value perceptions or involvement levels and demographic characteristics on service quality and overall satisfaction. The data for this study were provided by a major health maintenance organization (HMO), and there is room for improvement in the manner in which certain constructs were measured. For example, OCS, recommendation and retention all used single item measures, and it might have been preferable to use multiple item measures for these constructs.
Practical implications
The study shows that organizations can benefit by identifying and focusing on critical attributes as part of their customer relationship management program.
Social implications
The SEM results provide strong support for the overall model linking service quality, OCS and CL in a health-care setting. As one would expect, PSQ has a strong impact on OCS, which, in turn, has a fairly strong impact on CL. However, there is also a significant direct linkage between PSQ and CL. This linkage shows that at least a certain portion of CL could evolve independent of the satisfaction level with the HP. This shows that, in addition to trying to improve satisfaction, organizations should also explore influencing loyalty directly, perhaps by the strategic use of service attribute perceptions.
Originality/value
The study shows that customer perceptions at the service attribute level can often be the key to the generation and management of customer satisfaction and loyalty. It also has significance for how satisfaction and loyalty with HPs can be improved in a hospital setting.