Inter-relationships between innovation and market orientation in SMEs

Purpose – This study aims to explore the nature of the interactions between two strategies, innovation and market orientation. By examining the components of these constructs the paper seeks to identify key components of market orientation that are antecedent factors of the innovation performance of the firm.

Design/methodology/approach – Correlation analysis was undertaken on data from a survey of 73 manufacturing firms in the Greater Western Sydney economic development zone in Australia. The data were supplemented by information obtained from the firm's annual reports.

Findings – Innovation was found to be positively correlated to market orientation (customer orientation, competitor orientation and inter-functional co-ordination) and both of these constructs were found to be positively correlated to firm performance and the degree of change in the firm's competitive environment.

Research limitations/implications – Possible limitations are: the low survey response rate; the nature of the sampled population; and the spread of industries involved, which could limit the generalisability of the results. The next steps will be to conduct deeper analysis into the factors that make up the subscales of the two constructs and to determine how market orientation or its associated activities interact with the innovation process.

Practical implications – In order to maximize a firm's financial performance, organizations should increase both their market orientation and their innovation activities as these factors operate synergistically.

Originality/value – This study is arguably the first to establish the finding that the degree of change in the competitive environment and the level of market orientation are linked, and the identification of the components of market orientation that are linked to firm innovation. These findings suggest that firm innovation and firm market orientation are strategic reactions to changes in the firm's competitive environment.

Organizational learning orientation - how can it foster alliance relationships?

Purpose – The purpose of this paper is to examine the importance of an organization's learning orientation in developing alliance relationships.

Design/methodology/approach – The paper is based on research conducted on organizations involved in alliances as well as practical evidence.

Findings – The paper finds that alliance managers need to focus on developing learning capabilities within their organizations to achieve superior alliance performance.

Practical implications – The paper has practical implications for managers involved in alliances as it shows the importance of an organization focusing on learning. With the relatively small number of alliance relationships that succeed, it is important that managers harness their organization's learning potential in the context of an alliance.

Originality/value – The paper is unique as it highlights the importance of an organization's learning orientation in an alliance context.

Study on the oriented recrystallization of carbon-coated polyethylene oriented ultrathin films

It is confirmed that a layer of vacuum-evaporated carbon on the surface of a preoriented ultrathin polymer film can lead to an oriented recrystallization of the polymer film. This has been attributed to a strong fixing effect of vacuum-evaporated carbon layer on the film surface of the polymer. To study the origin of the strong fixing effect of vacuum-evaporated carbon layer on the polymer films, the melting and recrystallization behaviors of the preoriented ultrathin PE film with a vacuum-evaporated carbon layer were studied by using atomic force microscopy, electron diffraction, Fourier transform infrared spectroscopy, and Raman spectroscopy. We found that there exists some extent of chain orientation of carbon-coated polyethylene (PE) preoriented ultrathin film above its melting temperature. These oriented PE chain sequences act as nucleation sites and induce the oriented recrystallization of preoriented PE film from melt. Raman spectroscopy results suggest that new carbon-carbon bonds between the carbon layer and the oriented PE film are created during the process of vacuum carbon evaporation. As a result, some of the PE chain stems are fixed to the coated carbon substrate via covalent bond. Such a bonding has retarded the relaxation of the PE chains at the spot and, therefore, preserves the original orientation of the PE stems at high temperature, which in turn derives the recrystallization of the PE chains in an oriented structure.

Institutional environment, managerial attitudes and environmental sustainability orientation of small firms

This study examines the direct impact of three dimensions of the institutional environment on managerial attitudes toward the natural environment and the direct influence of the latter on the environmental sustainability orientation (ESO) of small firms. We contend that when the institutional environment is perceived by owner–managers as supportive of sound natural environment management practices, they are more likely to develop a positive attitude toward natural environment issues and concerns. Such owner–manager attitudes are likely to lead to a positive and proactive orientation of their firms toward environmental sustainability. The study uses survey data from 166 small manufacturing firms located in three Philippine cities. First, the study develops and tests the measurement models to examine the validity of the constructs representing the firm’s institutional environment, managerial attitudes toward the natural environment and the ESO of firms. Second, the study develops and tests the structural models examining the institutional environment–managerial attitudes–ESO linkages. Multi-sample invariance structural model analysis shows the mediating role of managerial attitudes in the institutional environment–ESO nexus. The findings show that ESO is a construct comprising three dimensions: knowledge of environmental issues, sustainable practices and commitment toward environmental sustainability. The cognitive, regulatory and normative elements of the institutional environment are strongly linked to positive managerial attitudes toward environmental sustainability, which in turn, positively influences the firm’s overall ESO. Managerial attitudes play a mediating role in the institutional environment–ESO linkages. The managerial, practical, research and policy implications of the research findings are discussed.

Environmental sustainability orientation and financial resources of small manufacturing firms in the Philippines

Purpose - This study challenges the conventional view that resources determine the extent of environmental sustainability orientation (ESO) of small firms in a developing Southeast Asian country context. First, this study attempts to develop a measurement model of ESO of small firms in the manufacturing sector in the Philippines. Second, the study explores the impact of the financial resources on the ESO of firms.

Design/methodology/approach - The study uses survey data from 166 small manufacturing firms in three Philippine cities. Multiple regression modelling is used to estimate the relationships between firm resources and ESO.

Findings - The results indicate that ESO is a multi-dimensional construct with three facets: awareness of, actions for, and appreciation of environmental sustainability. The empirical evidence does not support the conventional firm resources – ESO proposition.

Research limitations/implications - A proactive ESO is not necessarily beyond the reach of resource-constrained small firms. The generalisability of the findings however is limited to small manufacturing firms in the Philippines.

Practical implications - This study informs owner-managers of small firms that a proactive ESO does not largely depend on financial resources. Government policies and programs to encourage small firms to become sustainable should not only focus on financial forms of assistance.

Originality/value -  To date, this is the only Philippine-based study and one of the scarce small firm-focused studies that examine the proposition that small firms are unable to pursue a proactive ESO due to resource-constraints.