Yunhui Wang, Yaqun Yi and Zelong Wei
Drawing on the dynamic managerial capability perspective and the dynamic capability perspective of business model (BM) literature, this paper aims to investigate how top…
Abstract
Purpose
Drawing on the dynamic managerial capability perspective and the dynamic capability perspective of business model (BM) literature, this paper aims to investigate how top management team internal social capital (TISC) promotes BM design and how such effects are moderated by market dynamics (i.e. demand uncertainty and competitive intensity).
Design/methodology/approach
The proposed hypotheses were tested by a questionnaire-based survey. The empirical study was conducted on a sample of 210 firms in China. The model was tested via hierarchical regression analysis.
Findings
TISC has a positive effect on BM efficiency but an inverted U-shaped effect on BM novelty. The effects of TISC on BM efficiency and novelty are contingent on demand uncertainty and competitive intensity in different ways. Specifically, this study finds that demand uncertainty strengthens the inverted U-shaped effect of TISC on BM novelty. This study also finds that competitive intensity strengthens the positive effect of TISC on BM efficiency but weakens the inverted U-shaped effect of TISC on BM novelty.
Originality/value
The conclusion contributes to the dynamic capability perspective of BM literature in two ways. First, it offers a dynamic managerial capability perspective for understanding the antecedents of BM design. It highlights TISC, a root of dynamic managerial capability, as an important internal antecedent of BM design. Second, it provides a more nuanced understanding of the role of TISC in BM design. The findings show the distinct effects of TISC on BM efficiency and novelty. This study also discusses the contingency role market dynamics play in the TISC–BM design relationship.
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Top management team (TMT) serves as the critical designer of a firm’s business model, whose cognition exerts key influence on business model design (BMD). Drawing insights from…
Abstract
Purpose
Top management team (TMT) serves as the critical designer of a firm’s business model, whose cognition exerts key influence on business model design (BMD). Drawing insights from the managerial cognition and knowledge-based views, this paper aims to examine the effect of TMT transactive memory system on BMD and investigate how the relationship between TMT transactive memory system and BMD is contingent upon the firm’s strategic orientation.
Design/methodology/approach
Survey data collected from 210 Chinese firms was used to test the research hypotheses through multivariate regression analysis.
Findings
This paper reveals that TMT transactive memory system facilitates novelty- and efficiency-centered BMD. Furthermore, both differentiation orientation and cost leadership orientation can strengthen the effect of TMT transactive memory system on novelty-centered BMD; the impact of TMT transactive memory system on efficiency-centered BMD is weakened by differentiation orientation but strengthened by cost leadership orientation.
Originality/value
This paper adds to the business model literature by unraveling the effect of TMT transactive memory system on BMD, which not only enriches the internal cognitive antecedents of BMD but also provides an in-depth understanding of how TMTs can use their knowledge structure to proactively design a certain business model. Moreover, this paper also offers insights into how TMTs can better use transactive memory system to design business models according to the specific strategic orientation.
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Yaqun Yi, Meng Gu and Zelong Wei
How do firms make effective strategic change when competitive advantage deteriorates fast in a dynamic environment? Based on information-processing theory and organizational…
Abstract
Purpose
How do firms make effective strategic change when competitive advantage deteriorates fast in a dynamic environment? Based on information-processing theory and organizational inertia theory, the purpose of this paper is to investigate how bottom-up learning affects the speed and magnitude of strategic change and if these relationships are contingent on strategic flexibility.
Design/methodology/approach
Using data of 213 firms in China, the authors conduct an empirical test of hypotheses through a stepwise multivariate regression approach.
Findings
The empirical study suggests that resource flexibility weakens the positive relationship between bottom-up learning and the speed of strategic change while strengthens the impact of bottom-up learning on the magnitude of strategic change. In addition, coordination flexibility strengthens the positive impact of bottom-up learning on the speed and magnitude of strategic change.
Originality/value
The findings not only provide a more nuanced and in-depth understanding of strategic change, but also offer strong guidance for firms on how to make better use of strategic flexibility in order to benefit from bottom-up learning.
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Yaqun Yi, Jing Ji and Chongchong Lyu
This paper aims to investigate the impact of exploratory innovation on the quality of new product development (NPD), and how do polychronicity of the top management team (TMT) and…
Abstract
Purpose
This paper aims to investigate the impact of exploratory innovation on the quality of new product development (NPD), and how do polychronicity of the top management team (TMT) and interfunctional coordination (IFC) moderate the above relationship.
Design/methodology/approach
The hypotheses were tested by the survey data of 210 Chinese enterprises. Hierarchical regression analyzes were used to test the hypotheses in this research.
Findings
The results indicate that exploratory innovation facilitates NPD quality. TMT polychronicity weakens the effect of exploratory innovation on NPD quality. IFC strengthens the effect of exploratory innovation on NPD quality.
Practical implications
This study provides managers with insight on the relationship between exploratory innovation and NPD quality. To improve NPD quality, managers should be paying more attention to exploratory innovation. Furthermore, this study helps managers to understand how the relationship changes with the increases of TMT polychronicity and IFC.
Originality/value
This study highlights the value of exploratory innovation in increasing NPD quality based on the knowledge-based view. By incorporating TMT polychronicity and IFC based on the attention-based view, it offers much richer understandings of how exploratory innovation affects NPD quality.
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How is strategic consensus formed in top management team (TMT)? Prior literature provides inadequate evidence. A few scholars explore its antecedents from some perspectives (e.g…
Abstract
Purpose
How is strategic consensus formed in top management team (TMT)? Prior literature provides inadequate evidence. A few scholars explore its antecedents from some perspectives (e.g. organizational or team structure) to address this gap but yield confusing results. This study aims to clarify the mechanism to reach TMT strategic consensus and explore both the effect of collective team identification and information elaboration.
Design/methodology/approach
Stepwise regression analysis is applied to explore the formation process of strategic consensus by using data collected from 126 TMTs of Chinese firms.
Findings
Results show that collective team identification has a positive effect on TMT strategic consensus, whereas information elaboration has a U-shaped effect. Further, the U-shaped relationship between information elaboration and TMT strategic consensus is strengthened by collective team identification.
Originality/value
This study provides a nuanced explanation of the antecedents of strategic consensus in TMT by exploring the effects of collective team identification and information elaboration. Particularly, this study proposes a U-shaped relationship between information elaboration and strategic consensus, which enriches TMT decision-making literature and consensus research. Moreover, by examining the moderating effect of collective team identification, this study articulates why TMT members fail to achieve strategic consensus even when they have sufficiently discussed the task-relevant information.
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Zelong Wei, Yaqun Yi and Changhong Yuan
The purpose of this paper is to address the conflicting views on the role of bottom‐up learning; this research combines the information‐processing and organizational inertia views…
Abstract
Purpose
The purpose of this paper is to address the conflicting views on the role of bottom‐up learning; this research combines the information‐processing and organizational inertia views to explore how bottom‐up learning affects both exploratory and exploitative innovations and if the effects are contingent on organizational formalization.
Design/methodology/approach
Data for this study are obtained through an interview survey instrument from 213 firms. The questionnaire is adopted from several previous studies on organizational learning, structure and innovation with minor translation adjust. A pilot test was conducted and necessary modifications were made to the questionnaire. Tests show that the sampling validity is not biased by non‐response bias and the measure reliability and validity are acceptable. Furthermore, Harman one‐factor and CFA tests show that the results should not be biased by common method bias. The multicollinearity is also tested and controlled during regression analysis.
Findings
The findings show that bottom‐up learning has accelerated positive effect on exploitative innovation while having an inverted U‐shaped effect on explorative innovation. Furthermore, the organizational formalization strengthens the positive effect of bottom‐up learning on exploitative innovation and the U‐shaped effect on exploratory innovation.
Originality/value
The paper contributes to organizational inertia and information‐processing theories by providing a complete picture on how firms built exploitative and exploratory innovations through bottom‐up learning aligned with appropriate organizational structure.
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Aashiq Hussain Lone and Irfana Rashid Baba
Progress in agriculture significantly relies on the adoption of innovative farm practices by farmers. Being proactive and risk-taking catalyses this innovativeness. Progressive…
Abstract
Purpose
Progress in agriculture significantly relies on the adoption of innovative farm practices by farmers. Being proactive and risk-taking catalyses this innovativeness. Progressive farmers in general are proving to be effective in developing their farms along entrepreneurial lines. The paper aims to examine the relationship between the entrepreneurial traits of risk-taking, proactiveness, innovativeness and entrepreneurial intention (EI) of progressive farmers in Kashmir.
Design/methodology/approach
A quantitative research approach was used to evaluate how innovativeness, risk-taking and proactiveness affect EI. The data was collected from registered progressive farmers using a structured questionnaire via both online and offline means. 203 useable responses were received. The data was then analysed using partial least squares structural equation modelling (PLS-SEM).
Findings
The results reveal that progressive farmers' EI is influenced by innovativeness, risk-taking and proactiveness. As hypothesized, a significant and positive relationship was found between entrepreneurial orientation (EO) traits of risk-taking, proactiveness and innovativeness and EI.
Research limitations/implications
The study adds to the existing body of knowledge on agri-entrepreneurship by conceptualizing EO traits influencing EI of progressive farmers and offering insightful advice to policymakers on how to improve progressive farmers' entrepreneurial abilities and in turn convert their EI into agro venture establishment in Kashmir.
Originality/value
This study makes advancements in the field of farming-related EO by examining the EI of progressive farmers. This study covers a knowledge gap as there aren't many empirical studies on agricultural entrepreneurship that concentrate on the EO of progressive farmers and how it influences the EI in general in India and the Kashmir valley in particular.