Does Coordination Flexibility Mediates the Relationship Between Strategic Orientation and Innovative Performance?

Linus Jonathan Vem; Nancwat Samson; Yilshian Noel Nkup; Arandong Idi Jamoke

doi:10.47747/ijbme.v3i2.629

Authors

Linus Jonathan Vem Deparment of Business Administration, Faculty of Management Sciences, University of Jos, Nigeria
Nancwat Samson Department of Business Administration, University of Jos, Nigeria
Yilshian Noel Nkup Faculty of Management Sciences, University of Jos, Jos, Nigeria
Arandong Idi Jamoke Faculty of Management Sciences, University of Jos, Jos, Nigeria

DOI:

https://doi.org/10.47747/ijbme.v3i2.629

Keywords:

Innovative Performance, Strategic Orientation, Coordination Flexibility

Abstract

The current global events have posed a great challenge to the survival of SMEs. This study is motivated to identify the factors that enhance innovative performance among SMEs by exploring the path of Strategic orientation (SO) and coordination flexibility (CF). A total of 400 copies of the structured questionnaire was administered to top managers and Supervisors in Nigeria. Out of the 400 copies administered to top managers, 200 were completed, while 217 were completed and returned by the supervisors out of 400 administered to them as well. Partial Least Square (PLS) software 3.3.3, a variance-based Structural Equation Modelling was used to analyse the data. The results indicate that SO, CF in employee skill but not HR practice was found to relate significantly with IP as well as mediate the relationship with SO. Thus, we concluded that IP can be enhanced through SO and explained through CF in employee skills.

Downloads

Download data is not yet available.

References

Agnihotri, A. Bhattacharya, S. (2015). Whistleblowing policy disclosure: evidence from an Indian emerging market. Corporate Governance, 15(5) 678-692.

Anning-Dorson, T., & Nyamekye, M. B. (2020). Be flexible: turning innovativeness into competitive advantage in hospitality firms. International Journal of Contemporary Hospitality Management. 32 (2), 605-624.

Arthur, J. B. (1992). The link between business strategy and industrial relations systems in American steel minimills. Ilr Review, 45(3), 488-506.

Arvanitis, S. (2005). Modes of Labor Flexibility at Firm Level: Are there any implications for performance and innovation? Evidence for the Swiss economy. Industrial and Corporate Change, 14(6) 993–1016,

Barney, J., Wright, M., & Ketchen Jr, D. J. (2001). The resource-based view of the firm: Ten years after 1991. Journal of Management, 27(6), 625–641.

Becker, J. M., Klein, K., & Wetzels, M. (2012). Hierarchical Latent Variable Models in PLS-SEM: Guidelines for Using Reflective-Formative Type Models. Long Range Planning, 45(5–6), 359–394.

Beltrán‐Martín, I., & Roca‐Puig, V. (2013). Promoting employee flexibility through HR practices. Human Resource Management, 52(5), 645–674.

Beliaeva, T., Shirokova, G., Wales, W., & Gafforova, E. (2020). Benefiting from economic crisis? Strategic orientation effects, trade-offs, and configurations with resource availability on SME performance. International Entrepreneurship and Management Journal, 16(1), 165–194.

Bhattacharya, M., Gibson, D. E., & Doty, D. H. (2005). The effects of flexibility in employee skills, employee behaviors, and human resource practices on firm performance. Journal of Management, 31(4), 622–640.

Byrne, B.M. (2008), Structural Equation Modeling with EQS: Basic Concepts, Applications, and Programming, Psychology Press, New York, NY.

Camps, J., Oltra, V., Aldás‐Manzano, J., Buenaventura‐Vera, G., & Torres‐Carballo, F. (2016). Individual performance in turbulent environments: The role of organizational learning capability and employee flexibility. Human Resource Management, 55(3), 363–383.

Chen, Z., Madjar, N., and Greenberg, E. (2011). Factors for Radical Creativity, Incremental Creativity, and Routine, Non creative performance. J Appl Psychol. 96(4). 730-43.

Chen, M. J., & Miller, D. (1994). Competitive attack, retaliation and performance: an expectancy‐valence framework. Strategic Management Journal, 15(2), 85-102.

Cohen, J. (1988). Statistical power analysis for the behavioural sciences 2nd edn. Erlbaum Associates, Hillsdale.

De Spiegelaere, S., Van Hootegem, G. and Van Gyes, G. (2014). The concept Innovative Work Behavior: Definition and Orientation, Gedrag en Organisatie 27(2)139-156

Diamantopoulos, A., & Siguaw, J. A. (2006). Formative versus reflective indicators in organizational measure development: A comparison and empirical illustration. British journal of management, 17(4), 263-282.

Didonet, S. R., Fearne, A., & Simmons, G. (2020). Determining the presence of a long-term/short-term dilemma for SMEs when adopting strategic orientation to improve performance. International Small Business Journal, 38(2), 90–110.

Dorenbosch, L., Van Engen, M. L., and Verhagen, M. (2005). On-the-job innovation: The

impact of job design and human resource management through production ownership. Creativity and Innovation Management,14(2), 129–141.

Fagerberg, J. (2004). “Innovation: A Guide to the Literature” in Fagerberg, J., D. C. Mowery and R. R. Nelson (eds) Oxford Handbook of Innovation, Oxford: Oxford University Press.

Flemig, S., Osborne, S., Kinder, T., Flemig, S., Osborne, S., & Kinder, T. (2016). innovation in public services Risky business — reconceptualizing risk and innovation in public services. Public Money & Management, 36(6), 425–432.

Fornell, C., & Larcker, D. F. (1981). Structural equation models with unobservable variables and measurement error: Algebra and statistics. Journal of Marketing Research, 382–388.

Gupta, A. K., & Gupta, N. (2020). Effect of corporate environmental sustainability on dimensions of firm performance–Towards sustainable development: Evidence from India. Journal of Cleaner Production, 253, 119948.

Hair, J F, Hult, T. M., Ringle, C. M., & Sarstedt, M. (2017). A primer on partial least squares structural equation modeling . Thousand Oakes. CA: Sage.

Hair Jr, J., Sarstedt, M., Hopkins, L., & G. Kuppelwieser, V. (2014). Partial least squares structural equation modeling (PLS-SEM) An emerging tool in business research. European Business Review, 26(2), 106–121.

Hair, Joe F., Ringle, C. M., & Sarstedt, M. (2011). PLS-SEM: Indeed a Silver Bullet. The Journal of Marketing Theory and Practice, 19(2), 139–152.

Hair Jr, J. F., Hult, G. T. M., Ringle, C., & Sarstedt, M. (2013). A primer on partial least squares structural equation modeling (PLS-SEM). Sage Publications.

Hair Jr, J. F., Hult, G. T. M., Ringle, C., & Sarstedt, M. (2016). A primer on partial least squares structural equation modeling (PLS-SEM). Sage Publications.

Hambrick, D. C. (2007). Upper echelons theory: An update. Academy of Management Briarcliff Manor, NY 10510.

Hambrick, D. C., & Finkelstein, S. (1987). Managerial discretion: A bridge between polar views of organizational outcomes. Research in Organizational Behavior. 9, 369-406

Hambrick, D. C., & Mason, P. A. (1984). Upper echelons: The organization as a reflection of its top managers. Academy of Management Review, 9(2), 193–206.

Hammond, M.M., Neff, N. L. and Schwall, A. (2011) Predictors of Individual-Level Innovation at Work: A Meta-Analysis. Psychology of Aesthetics Creativity and the Arts 5(1) 90-105

Harari, M. B., Reaves, A. C., & Viswesvaran, C. (2016). Creative and innovative performance: A meta-analysis of relationships with task, citizenship, and counterproductive job performance dimensions. European Journal of Work and Organizational Psychology, 25(4), 495–511.

Harris, L. C., & Ogbonna, E. (2001). Leadership style and market orientation: an empirical study. European Journal of Marketing, 35(5/6), 744–764.

Hariyati, H., Tjahjadi, B., & Soewarno, N. (2019). The mediating effect of intellectual capital, management accounting information systems, internal process performance, and customer performance. International Journal of Productivity and Performance Management, 68(7), 1250–1271.

Henseler, J, Ringle, C. M., & Sarstedt, M. (2014). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115–135.

Henseler, J., Hubona, G., & Ray, P. A. (2016). Using PLS path modeling in new technology research: updated guidelines. Industrial Management & Data Systems, 116(1), 2–20.

Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115–135.

Henseler, J., Ringle, C. M., & Sarstedt, M. (2016). Testing measurement invariance of composites using partial least squares. International Marketing Review, 33(3), 405–431.

Hu, B., & Zhao, Y. (2016). Creative self-efficacy mediates the relationship between knowledge sharing and employee innovation. Social Behavior and Personality: An International Journal, 44(5), 815–826.

Iqbal, A., Latif, F., Marimon, F., Sahibzada, U. F., & Hussain, S. (2019). From knowledge management to organizational performance: modelling the mediating role of innovation and intellectual capital in higher education. Journal of Enterprise Information Management, 32(1), 36–59.

Jaskyte, K. (2004). Transformational leadership, organizational culture, and innovativeness in nonprofit organizations. Nonprofit Management and Leadership, 15(2), 153–168.

Jovanovic, M., & Djokic, M. (2020). Innovativeness of Serbian Enterprises as a Factor of Competitiveness Improvement at the International Market. In Economic and Financial Challenges for Balkan and Eastern European Countries .101-115

Karakitapoğlu-Aygün, Z., Gumusluoglu, L., & Scandura, T. A. (2020). How do different faces of paternalistic leaders facilitate or impair task and innovative performance? Opening the black box. Journal of Leadership & Organizational Studies, 27(2), 138–152.

Karakaya, F., & Yannopoulos, P. (2010). Defensive strategy framework in global markets. European Journal of Marketing, 44(7), 1077–1100.

Kauppinen, A. (2019). Explicating professional boxers ’ narrative dynamics towards competitive aggressiveness and potential market entry Antti Kauppinen. International Journal of Sport Management and Marketing, 19(2), 80–105.

Kock, N. & Lynn, G. (2012). Lateral Collinearity and Misleading Results in Variance-Based SEM: An Illustration and Recommendations. Journal of the Association for Information Systems 13(7)

Krejcie, R. V, & Morgan, D. W. (1970). Determining sample size for research activities. Educational and Psychological Measurement, 30(3), 607–610.

Laihonen, H., Aloini, D., Pellegrini, L., Lazzarotti, V., & Manzini, R. (2015). Technological strategy, open innovation and innovation performance: evidences on the basis of a structural-equation-model approach. Measuring business excellence, 19(3), 22 – 41.

Lee, J.-C., Shiue, Y.-C., & Chen, C.-Y. (2016). Examining the impacts of organizational culture and top management support of knowledge sharing on the success of software process improvement. Computers in Human Behavior, 54, 462–474.

Lohmöller, J.-B. (1989). Predictive vs. structural modeling: PLS vs. ML. In Latent variable path modeling with partial least squares (199–226). Springer.

Lynch, S. E., & Mors, M. L. (2019). Strategy implementation and organizational change: How formal reorganization affects professional networks. Long Range Planning, 52(2), 255–270.

Morgan, R. E., & Strong, C. A. (2003). Business performance and dimensions of strategic orientation. Journal of Business Research, 56(3), 163–176.

Naidoo, V. (2010). Firm survival through a crisis: The influence of market orientation, marketing innovation and business strategy. Industrial marketing management, 39(8), 1311-1320.

Nunally, J. C., & Bernstein, I. H. (1978). Psychometric theory. New York: McGraw-Hill.

Olian, J.D. & Rynes, S.L. (1984). Organizational staffing: Integrating practice with strategy. Industrial Relations, 23,171-83

Olorundare, A.S. and Kayode, D.J. (2014) Entrepreneurship education in Nigeria universities: a tool for national transformation. Asia Pacific Journal of Educators and Education. 29, 155 175.

Pandey, A., Gupta, R. K., & Arora, A. P. (2009). Spiritual climate of business organizations and its impact on customers’ experience. Journal of Business Ethics, 88(2), 313–332.

Patterson, F., Kerrin, M., & Gatto-Roissard, G. (2009). Characteristics and behaviours of innovative people in organisations. Literature review prepared for the NESTA Policy & Research Unit, 1-63.

Podsakoff, P. M., MacKenzie, S. B., Lee, J.-Y., & Podsakoff, N. P. (2003). Common method biases in behavioral research: a critical review of the literature and recommended remedies. Journal of Applied Psychology, 88(5), 879.

Podsakoff, P. M., MacKenzie, S. B., & Podsakoff, N. P. (2012). Sources of method bias in social science research and recommendations on how to control it. Annual review of psychology, 63, 539-569.

Pour, M. J., & Asarian, M. (2019). Strategic orientations, knowledge management (KM) and business performance. Kybernetes. https://doi.org/10.1108/K-05-2018-0277

Preacher, K. J., & Hayes, A. F. (2008). Asymptotic and resampling strategies for assessing and comparing indirect effects in multiple mediator models. Behavior Research Methods, 40(3), 879–891.

Redelinghuys, K. (2018). Flourishing-at-Work : The Role of Positive Organizational Practices. Psychological Report, 0(0), 1.23.

Ruiz-Palomino, P., Hernández-Perlines, F., Jiménez-Estévez, P., & Gutiérrez-Broncano, S. (2019). CEO servant leadership and firm innovativeness in hotels: A multiple mediation model of encouragement of participation and employees’ voice. International Journal of Contemporary Hospitality Management, 31(4), 1647–1665.

Sahi, G. K., Gupta, M. C., & Cheng, T. C. E. (2020). The effects of strategic orientation on operational ambidexterity: A study of indian SMEs in the industry 4.0 era. International Journal of Production Economics, 22 (2), 409–424.

Sawers, J. L., Pretorius, M. W., & Oerlemans, L. A. (2008). Safeguarding SMEs dynamic capabilities in technology innovative SME-large company partnerships in South Africa. Technovation, 28(4), 171-182.

Sekiguchi, T., Bebenroth, R., & Li, D. (2011). Nationality background of MNC affiliates’ top management and affiliate performance in Japan: knowledge-based and upper echelons perspectives. The International Journal of Human Resource Management, 22(05), 999–1016.

Shah, H. A., Yasir, M., Majid, A., & Javed, A. (2019). Promoting strategic performance through strategic orientation and strategic renewal: a moderated mediation model. Management Decision. 58(2), 376-392.

Shalley, C. E., & Gilson, L. L. (2004). What leaders need to know: A review of social and contextual factors that can foster or hinder creativity. The leadership quarterly, 15(1), 33-53.

Shalley, C. E., Zhou, J., & Oldham, G. R. (2004). The effects of personal and contextual characteristics on creativity: Where should we go from here?. Journal of management, 30(6), 933-958.

Shao, Z. (2019). Interaction effect of strategic leadership behaviors and organizational culture on IS-Business strategic alignment and Enterprise Systems assimilation. International Journal of Information Management, 44, 96–108.

Schuler, R. S. & Jackson, S.E. (1987): Linking competitive strategy with human resource management practices. Academy of Management Executive, 3, 207–219

Soda, G., Tortoriello, M., & Iorio, A. (2018). Harvesting value from brokerage: Individual strategic orientation, structural holes, and performance. Academy of Management Journal, 61(3), 896–918.

Stock, R., Groß, M., & Xin, K. R. (2019). Will Self-Love Take a Fall? Effects of Top Executives’ Positive Self-Regard on Firm Innovativeness. Journal of Product Innovation and Management, 36(1), 41–65.

Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic Capabilities and Strategic Management David. Strategic Management Journal, 18(7), 509–533.

Tom, E.E., Glory, G. & Alfred, U.J. (2016).An Appraisal of Nigeria’s Micro, Small and Medium

Enterprises (MSMEs): Growth, Challenges and Prospects. International Journal of Small Business and Entrepreneurship Research 4(4),1-15.

Venkatraman, N., (1989). Strategic Orientation of Business Enterprises : The Construct, Dimensionality , and Measurement. Management Science, 35(8), 942–962.

Way, S. A., Tracey, J. B., Fay, C. H., Wright, P. M., Snell, S. A., Chang, S., & Gong, Y. (2015). Validation of a multidimensional HR flexibility measure. Journal of Management, 41(4), 1098–1131.

Xerri, M. J., & Brunetto, Y. (2011). Fostering the innovative behaviour of SME employees: a social capital perspective. Research & Practice in Human Resource Management, 19(2), 43.

Yeap, J. A. L., Ramayah, T., & Soto-Acosta, P. (2016). Factors propelling the adoption of m-learning among students in higher education. Electronic Markets, 1–16.