Is more capability always beneficial for firm performance? Market orientation, core business process capabilities, and business environment

This study examines the role of capabilities in core marketing-related business processes–product development management (PDM), supply chain management (SCM) and customer relationship management (CRM)–in translating a firm’s market orientation (MO) into firm performance. The study is the first to examine the interplay of all three business process capabilities simultaneously, while investigating how environmental conditions moderate their performance effects. A moderated mediation analysis of 468 product-focused firms finds that PDM and CRM process capabilities play important mediating roles, whereas SCM process capability does not mediate the relationship between MO and performance. However, the relative importance of the capabilities as mediators varies along the degree of environmental turbulence, and under certain conditions, an increase in the level of business process capability may even turn detrimental.

Capabilities and roles of enterprise wikis in organizational communication

How can technical communicators in organizations benefit from wiki technology? This article alerts technical communicators to the possibilities of wiki-based collaborative content creation. It analyzes 32 articles on the use of corporate wikis, and compares them to three media choice theories: media richness theory, theory of media synchronicity, and common ground theory.

Menedzsmentképességek és döntéshozatali közelítésmódok longitudinális elemzése a versenyképesség-kutatások alapján (Longitudinal analysis of management capabilities and decision making approaches based on the competitiveness researches)

Számos korábbi kutatás – köztük a szerzők korábbi vizsgálatai is – azt mutatja, hogy a menedzsmentképességek és a vállalatok versenyképessége között pozitív kapcsolat áll fenn, a jobban teljesítő és a proaktívabb vállalatok rendre felkészültebb, jobb vezetői képességekkel bíró, kockázatvállalóbb vezetőkkel rendelkeznek. Az is megfigyelhető, hogy az ebből a nézőpontból sikeresebben működő vállalatok döntéseiben az átlagosnál is erősebben érvényesül a racionális közelítésmód, melynek alkalmazásával a menedzserek az optimális cselekvési alternatíva kiválasztására törekszenek. A cikkben a szerzők az elmúlt 15 év versenyképességi kutatásainak tapasztalatait összegzik, kiemelt hangsúlyt helyezve a legfrissebb felmérés eredményeire. ________________ The article summarizes the main findings of the Competitiveness Research Program with respect to the skills and capabilities of the Hungarian managers and the decision making approaches they use during their work. The results of the four surveys conducted in 1996, 1999, 2004 and 2009 are fairly stable over time: practice minded behavior, professional expertise, and problem solving skills are on the top of the list of the most developed skills of the Hungarian executives. The rational approach is the most popular among the most widespread decision making models in the authors’ sample which is rather alarming since the present turbulent economic environment may demand more adaptive and intuitive approaches.

Dynamic capabilities and strategic paradox: a case study

Today’s business leaders must constantly review and develop their firm’s abilities to adapt to and benefit from external changes. Dynamic capabilities are the capacity of an organization to purposefully create, extend or modify its resource base. They enable it to exploit business, technological and market opportunities and adapt to market changes, an ability more often observed in highly dynamic industries, such as consumer electronics or telecommunications. Using the case study method, this article identifies dynamic capabilities in traditional, less dynamic industries when faced with a sudden drop of revenue. Four distinct routines emerge, namely structure and practices enduring time-sensitive strategic decision-making by the tice, and a culture encouraging learning and coevolving. Seemingly strategic paradox objectives encourage the management team to question the status quo and, when managed well, transform the tensions between old and new into an ability to advance superior ideas faster.

Self-Identified Capabilities and Experiences with Mathematics of Adults Who Have Taken a Developmental Algebra Course

Some were born to do math, some persevered past fearful environments, while others withdrew. In this qualitative study, adults describe life with algebra and the meaning they sought. For all, pedagogy was critical, either positively or negatively; and all found salvation in intervention.

An Empirical Investigation of the Relationships among Climate, Capabilities, and Unit Performance

For the current study, the authors examined the relationships among two dimensions of organizational climate and several indices of individual- and unit-level effectiveness. Specifically, the article proposes that an organization ’s service and training climate would be related to employee capabilities—operationalized in terms of frontline service capabilities and managerial support capabilities—and that such capabilities would be related to unit- level measures of employee turnover and sales growth. Using survey and operational data from 201 management and frontline staff members in 22 units of a national restaurant chain, the results from correlation and regression analyses generally supported the proposed relationships. This study replicates and extends previous research and provides a foundation for future conceptual development and empirical work in this research area.

Measurement of Entrepreneurial Dynamism Capabilities and Performance in Collaborative Networks

Part 16: Performance Measurement Systems

Investigation of managerial capabilities and challenges of a core plant role

The competiveness within the global market has forced large manufacturing companies to reorganize their global operations. To act proficiently abroad is therefore no longer a choice but an important prerequisite. In global production networks, there are different plant roles that serve different purposes. One of the important roles within these networks is the core plant role. There are limited amount of the researches done regarding the core plant role. There is also a lack of consistency regarding the definition of the core plant role. It is also evident that there is a knowledge gap regarding the managerial aspects of this plant role both in the academia and in the industry. Managing a core plant requires certain capabilities. It is important to target this knowledge gap since global manufacturing is becoming a common norm for large enterprises and the importance of the core plant role is getting more evident. There is also a lack of understanding towards the challenges that a core plant must deal with both within the organization and globally towards the other plants within the manufacturing network. To address this knowledge gap further, two research questions were created ―What key capabilities are required in order to manage the core plant role?” (RQ1) and ―What are the main challenges in managing the core plant role?” (RQ2). Case study was chosen as the research method for this study since it is the most appropriate method when investigating a phenomenon in its own context. Interviews were the main research technique used to collect data. 18 semi-structured interviews were conducted in eight different cases. A literature review was conducted and was the foundation for the interview guide used in the interviews and for the data analysis. The results show that various capabilities are important for the management of the core plant role. Proximity to R&D and knowledge were the most emphasized factors. For the main challenges in terms of managing a core plant, the communication, cooperation and coordination where the most challenging aspects. Based upon finding, two frameworks have been proposed a concluding generalization and contribution of this research study. The study provides a generalization based upon data that has been collected from companies from different industries. These findings are a contribution towards both the large enterprises operating globally and the academia. 

Analysis of Needs and Resources

The initial aim of the CareMan project was to develop a joint degree programme that combined and utilised the strengths of the five collaborating universities that were already involved in delivering social and health care management education. Because the project was to be implemented in collaboration between education- al institutions, the collaboration had to be based on a detailed understanding of the national and institutional specifics of each of the individual academic enti- ties. During this process it was recognised that, due to a number of regulation issues, achieving the original aim would not be possible; ultimately, following a series of analytical works, which are presented below, it was decided that a set of three master’s level modules should be developed. One of the reasons was that the Finnish law on master’s degrees at universities of applied sciences (UAS) stated that the requirement for entry to a UAS master’s programme was a bachelor degree from a UAS or equivalent, plus a minimum of three years of work experience in an appropriate field. The three years’ work experience is also required from international students. In practice this meant that the participating Finnish UASs, Lahti and HAMK, could not award a diploma for foreign students without this work experience. The other European universities do not have the work experience requirement, although some take it as a bonus for admission (FHS UK). There were also other differences in law (e.g., requirements for mini - mum standards in Social Work education at FHS UK) that could not have been overcome during the period of project realisation. Consequently, the outcome was the development of only three common educational modules, each for 10 ECTS, which were developed, delivered and assessed during the lifetime of the project. The intention was that these would be integrated into the current masters’ level provision in each of the universities

Strategic Orientations, Dynamic Capabilities, and Firm Performance: an Analysis for Knowledge Intensive Business Services

The strategic orientations of a firm are considered crucial for enhancing firm performance and their impact can be even greater when associated with dynamic capabilities, particularly in complex and dynamic environments. This study empirically analyzes the relationship between market, entrepreneurial and learning orientations, dynamic capabilities, and performance using an integrative approach hitherto little explored. Using a sample of 209 knowledge intensive business service firms, this paper applies structural equation modeling to explore both direct effects of strategic orientations and the mediating role of dynamic capabilities on performance. The study demonstrates that learning orientation and one of the dimensions of entrepreneurial orientation have a direct positive effect on performance. On the other hand, dynamic capabilities mediate the relationships between some of the strategic orientations and firm performance. Overall, when dynamic capabilities are combined with the appropriate strategic orientations, they enhance firm performance. This paper contributes to a better understanding of the knowledge economy, given the important role knowledge intensive business services play in such a dynamic and pivotal sector.

Growth through internationalization of Russian SMEs in Finland

The study examines Russian SMEs motives, needs, prospects and constrains to enter Finland through Lappeenranta. Russian entrepreneurship is a young phenomenon in Finland. The present research becomes a first guide in understanding of Russian SMEs’ capabilities for establishing their subsidiaries in Finland. The extensive model of different theoretical approaches was created for evaluating Russian SMEs growth and internationalization opportunities. The findings of the research indicated that Russian growing companies chose the internationalization to continue their development. Many Finland’ positive conditions were evaluated as important for the Russian entrepreneurship. Finland was the first European country of the expansion to the European Union, for the Russian SMEs established the subsidiaries in Lappeenranta. Their motives for entering Finland were usually based on market and resource views. Generally, the Russian SMEs establish a new company in Finland only when they have sufficient capabilities and resources for internationalization. Entering Finland the Russian firms make better the allocation of their natural, financial and human resources.

TAKING ADVANTAGE OF THE LOCAL ADVANTAGE? - Investment value of the analyst local advantage in the Finnish stock market in 2006–2014

An investor can either conduct independent analysis or rely on the analyses of others. Stock analysts provide markets with expectations regarding particular securities. However, analysts have different capabilities and resources, of which investors are seldom cognizant. The local advantage refers to the advantage stemming from cultural or geographical proximity to securities analyzed. The research has confirmed that local agents are generally more accurate or produce excess returns. This thesis tests the investment value of the local advantage regarding Finnish stocks via target price data. The empirical section investigates the local advantage from several aspects. It is discovered that local analysts were more focused on certain sectors generally located close to consumer markets. Market reactions to target price revisions were generally insignificant with the exception to local positive target prices. Both local and foreign target prices were overly optimistic and exhibited signs of herding. Neither group could be identified as a leader or follower of new information. Additionally, foreign price change expectations were more in line with the quantitative models and ideas such as beta or return mean reversion. The locals were more accurate than foreign analysts in 5 out of 9 sectors and vice versa in one. These sectors were somewhat in line with coverage decisions and buttressed the idea of local advantage stemming from proximity to markets, not to headquarters. The accuracy advantage was dependent on sample years and on the measure used. Local analysts ranked magnitudes of price changes more accurately in optimistic and foreign analysts in pessimistic target prices. Directional accuracy of both groups was under 50% and target prices held no linear predictive power. Investment value of target prices were tested by forming mean-variance efficient portfolios. Parallel to differing accuracies in the levels of expectations foreign portfolio performed better when short sales were allowed and local better when disallowed. Both local and non-local portfolios performed worse than a passive index fund, albeit not statistically significantly. This was in line with previously reported low overall accuracy and different accuracy profiles. Refraining from estimating individual stock returns altogether produced statistically significantly higher Sharpe ratios compared to local or foreign portfolios. The proposed method of testing the investment value of target prices of different groups suffered from some inconsistencies. Nevertheless, these results are of interest to investors seeking the advice of security analysts.