Librita Arifiani, Harjanto Prabowo, Asnan Furinto Furinto and Wibowo Kosasih
This study aims to investigate solutions to answer several questions regarding the direct influence of the respond to environmental turbulence (ET) on firm performance (FP) and…
Abstract
Purpose
This study aims to investigate solutions to answer several questions regarding the direct influence of the respond to environmental turbulence (ET) on firm performance (FP) and indirectly through business model transformation (BMT) on telecommunication internet service provider (ISP) in Indonesia. Furthermore, given the importance of telecommunication services for Indonesia to continue developing amid volatility, uncertainty, complexity and ambiguity, technology disruption impacts the telecommunication business. Also, investigating the relationship between BMT and FP simultaneously by embracing ET. Referring to the phenomena above, it is necessary to analyze what factors affect company performance. Therefore, this study aims to examine the effect of ET on FP, the effect of ET on BMT and the effect of ET on FP through BMT.
Design/methodology/approach
This study surveyed 239 ISPs in Indonesia through their top-level management representatives. In addition, this study analyzed the overall model good of fit and causal relationship using confirmatory factor analysis and structural equation modeling. This type of research is verification research. This study takes a quantitative approach by measuring the sample variables built on the construct and representing the study population. Verification research aims to test answers to several research questions regarding ET variables, BMT and company performance. The data are primarily collected through questionnaires distributed online. Respondents are the top management of every ISP organization and company as the unit analysis in this study. Of the 298 questionnaires distributed, 239 valid responses (80.2%) were obtained using the cross-sectional time method, and samples that met these criteria were carried out using a simple random sampling technique. This study uses a multivariant measure in measuring construct dimensions. All items have been rated on a five-point Likert scale ranging from 1 (“strongly disagree”) to 5 (“strongly agree”).
Findings
The results prove that responding to ET does not directly affect FP but indirectly affects FP through BMT. Thus, solutions to improve FP rely on BMT and build by developing responses to ET. The author finds that novelty BMT design is significantly related to what factors drive the business transformation towards achieving performance. Although, this study also finds that BMT positively mediates the relationship between ET to influence performance. ET alone is no longer adequate, and organizations need to revamp the BMT to achieve FP. The organization needs to leverage ET to respond to a shifting basis of competition and create a creative strategy to bring unserved customer segments and offer a high value for customer experience. This study also contributed to the movement of research trends targeted at BMT. This study provides an appropriate riposte for quantitative empirical studies that elucidate the correlation between BMT and FP by simultaneously embracing and managing ET. The relationship between BMT and the factors that support it will be higher comprehend when contextualized. This paper finds different designs and impacts of BMT on business transformation results that culminate in firm business performance as it faces an uncertain business environment that grows dynamically. Although this novelty is important, the authors found no support for effectiveness. However, this study highlights the robustness of the important factors that drive BMT to work effectively to improve business performance.
Research limitations/implications
This research using the cross-sectional approach, thus cannot capture behavior over a period, might miss seizing the dynamic variable over an extensive period. Longitudinal studies can provide broader findings, especially by capturing the results of various dynamics levels in a certain period, and can analyze the causal relationship between variables in various time conditions. This research data was collected based on the provisions before COVID-19. Therefore, in the future, it may be useful to understand if there are differences in results during COVID-19. Further, researchers advise examining specific pandemic contingency factors as moderating variables for the current research model.
Practical implications
This study provides the implications of three factors such as: theoretical aspect: enriches the contingency theory view with RBV integrated industrial organization approach: systematically share organization to manage the business transformation based on the situation environment. This research contributes to leveraging contingency theory and dynamic capability theory by presenting organizational interactions that adapt to changes caused by ET changes in internal and based on external situations. Managerial aspect: This study provides managers with a comprehensive perspective on enhancing strategic dynamics by understanding and developing capabilities adapted from dynamic markets. Besides, regulation is an important driving factor for business continuity. Adaptive regulation is predictive in nature and anticipates various future changes in line with business developments in the 4.0 era. Investigating a set of antecedents of ET in changing business models has highlighted the importance of complementarity as a critical factor in developing future research. Regulatory aspect: Telecommunication regulations must be able to predict, anticipate and respond to challenges of technological development and the needs of society; involving practitioners who are competent in drafting regulations (fair business competition); involving independent bodies in carrying out regulations and regulations do not need to regulate technical details related to technology details because technology changes rapidly. Therefore, another recommendation for the managerial is managers need to improve skills to build ET strategic competencies on strategic resource flexibility, adapt to rapid changes and increase insight into opportunities associated with strategy implementation. Managers require developing a team that acts as a creative change agent to identify and predict unstable business conditions and harmonize changes from uncertainty in implementing policies and regulations. Managers must apply their leadership style effectively to appropriate situations to adapt to the effects of changing markets, regulations and competitors.
Social implications
Telecommunication regulations expect to answer the global community’s needs that have developed into a networked civil society via the internet, answering the community’s needs, not just to follow trends and technological speeds. The implication of research on regulators requires the need to quickly formulate new regulations because the lengthy process of drafting regulations will result in unclear rules of play between stakeholders involved in business and communication technology.
Originality/value
This study extends the contingency theory and dynamic capabilities through organizational interactions, collaborative with RBV theory, and this study also extends previous research on business model innovation. Respond to ET alone cannot face unpredictable business turbulence. Organizations need to revamp the business model to achieve performance and examine BMT’s central role as unique to the service context and distinct from the more studied innovation process. This study highlights the strength of the critical factors that drive the BMT to work effectively to improve business performance, which shows the importance of paradigm-shifting innovation through empirical studies that explain the correlation between BMT and FP while embracing response to ET.
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Randy Kurniawan, Dyah Budiastuti, Mohammad Hamsal and Wibowo Kosasih
This study aims to examine the impact of balanced agile project management (balanced APM) on firm performance through the mediating role of market orientation and strategic…
Abstract
Purpose
This study aims to examine the impact of balanced agile project management (balanced APM) on firm performance through the mediating role of market orientation and strategic agility of medium and large telecommunication technology providers in Indonesia.
Design/methodology/approach
Research data was collected from the executive management of telecommunication technology providers in Indonesia via a questionnaire survey to obtain 150 valid questionnaires for analysis. This study analyzed the overall model fit through confirmatory factor analysis and causal relationships through structural equation modeling.
Findings
The results indicate that market orientation mediates the link between balanced APM and strategic agility and that strategic agility mediates the link between market orientation and firm performance.
Research limitations/implications
The choice of single telecommunication industry in a single country, Indonesia, provides a limitation on external validity. It is, therefore, suggested to extend the research efforts to other industry sectors in multi-country environments.
Originality/value
This study extends the knowledge about agile project management by embracing balancing control enforcement and tests it empirically. This study also re-conceptualizes strategic agility to embrace business partner switching capability and market orientation to embrace the inter-partner coordination dimension. Finally, the results highlight that agile project management needs to be framed by market orientation to create higher value for customers. However, market orientation alone is not enough and that the organization requires strategic agility to achieve firm performance.
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Randy Kurniawan, Dyah Budiastuti, Mohammad Hamsal and Wibowo Kosasih
This study aims to examine the effect of networking capability through market orientation and business process agility on the firm performance of medium and large…
Abstract
Purpose
This study aims to examine the effect of networking capability through market orientation and business process agility on the firm performance of medium and large telecommunication technology providers in Indonesia.
Design/methodology/approach
Research data was collected from the executive management of telecommunication technology providers in Indonesia via a questionnaire survey to obtain 150 valid questionnaires for analysis. This study analysed the overall model fit and hypotheses through confirmatory factor analysis and structural equation modelling.
Findings
The results reveal that networking capability has a positive and significant effect on market orientation. However, networking capability does not have a significant direct effect on business process agility. The results also indicate that market orientation does not have a significant direct effect on firm performance but through the mediating role of business process agility.
Practical implications
The findings provide a practical foundation for the organisation’s networking capability to be framed by market orientation and business process agility to enhance firm performance.
Originality/value
The results indicate that market orientation mediates the relationship between networking capability and business process agility. The findings also reveal that business process agility mediates the relationship between market orientation and firm performance. This study also reconceptualises market orientation to embody the inter-partner coordination dimension and reconceptualise business process agility to embody business partner switching capability.
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Randy Kurniawan, Adler Haymans Manurung, Mohammad Hamsal and Wibowo Kosasih
This study examines the collaborative impact of networking capability and balanced agile project management (APM) on firm performance through the mediating role of market…
Abstract
Purpose
This study examines the collaborative impact of networking capability and balanced agile project management (APM) on firm performance through the mediating role of market orientation and business process agility of medium and large telecommunication technology providers in Indonesia.
Design/methodology/approach
Research data were collected from the executive management of telecommunication technology providers in Indonesia via a questionnaire survey to obtain 150 valid questionnaires for analysis. This study analyzed the overall model fit and causal relationship using confirmatory factor analysis (CFA) and structural equation modeling (SEM).
Findings
The results indicate that market orientation fully mediates the link between networking capability-business process agility and balanced APM-business process agility. Furthermore, business process agility mediates the relationship between market orientation and firm performance.
Research limitations/implications
This study is based on a cross-sectional nature and might fail to capture the dynamic of the studied variables over an extended period.
Originality/value
The study extends the knowledge that dynamic capabilities, represented by networking capability and balanced APM, must be framed by market orientation to create customer value and improve bargaining position. However, market orientation alone is not enough in a highly dynamic business environment. Organization also requires business process agility, responsiveness and adaptability to timely address customers' needs and requirements.
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This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.
Abstract
Purpose
This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.
Design/methodology/approach
This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.
Findings
Organizations are likelier to survive and prosper in today’s unpredictable business environment by developing and strengthening a set of key dynamic capabilities. Particular emphasis on market orientation, business process agility and balanced agile project management (APM) can better position them to satisfy customer needs as they evolve.
Originality/value
The briefing saves busy executives 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.
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Sneha Kandoth and Suraj Kushe Shekhar
This paper aims to examine the mediating role of employees’ intrinsic motivation in the relationship between perceived ambidextrous organizational culture and innovative behaviour…
Abstract
Purpose
This paper aims to examine the mediating role of employees’ intrinsic motivation in the relationship between perceived ambidextrous organizational culture and innovative behaviour among information technology (IT) sector employees.
Design/methodology/approach
The study used a quantitative research methodology, using a questionnaire to gather data from a sample of 510 employees across a range of IT organizations and various roles in the Indian IT sector. Smart partial least squares structural equation modeling Version 3 was used for the analysis and interpretation of the study.
Findings
The findings revealed a significant positive relationship between perceived ambidextrous organizational culture and employees’ innovative behaviour in the Indian IT sector. Moreover, the study established that employees’ intrinsic motivation played a significant mediating role in this relationship.
Originality/value
This study stands out for its exploration into how employees’ intrinsic motivation mediates the relationship between ambidextrous organizational culture and innovative behaviour. It offers valuable insights for enhancing organizational creativity by understanding the critical role of intrinsic motivation.