Banjo Roxas

Institutional environment, innovation capacity and firm performance in Russia

Purpose – Following the demise of the Soviet Union in 1992, Russia undertook major institutional and market‐oriented reforms to enhance the competitive advantage of domestic enterprises. Although Russia has experienced rapid growth over the last two decades, the extent to which institutions in Russia impact on firm innovation and performance remains poorly understood due to a lack of research on the subject. This paper seeks to contribute to the literature on the competitiveness of Russian firms by focussing specifically on the extent to which the state of the regulatory quality, rule of law, and corruption affect the innovation capacity and performance of firms in Russia.Design/methodology/approach – The study uses structural equation modelling and data from a large‐scale firm level survey (n=787) of firms in Russia undertaken by the World Bank in 2009. It investigates the direct and indirect perceptions of respondents of the effects the current institutional environment has on the innovation capacity an...

Learning, innovation and firm performance: knowledge management in small firms

This study aims to examine the relationships between managerial learning as a facet of knowledge absorption (KA), firm innovation as a facet of knowledge exploitation (KE), and performance of small firms (i.e., firms with fewer than 50 employees). It builds on the knowledge-based view of the firm and the upper echelons theory to describe the effects of KA on KE, and that of KE on firm performance, in the small-firm context. Using survey data of 1441 small firms in New Zealand, the study applies a partial least squares approach to structural equation modelling to test the main hypotheses of the study. The main findings show the positive and significant effects of three types of managerial learning, namely, practice-based, proximal, and distal learning, on innovation and on innovation in firm performance. However, the curvilinear relationships suggest rather that the effects are finite and, potentially, confounded by factors unaccounted for in the models.

Effects of entrepreneurial knowledge on entrepreneurial intentions: a longitudinal study of selected South-east Asian business students

Drawing on the theory of planned behaviour, this study examines the direct and indirect effects of knowledge gained from a formal entrepreneurship education programme on an individual’s entrepreneurial intentions (EI). It tracks the changes in students’ entrepreneurial knowledge (EK), perceptions of desirability of, and self-efficacy in, engaging in entrepreneurship and the impact of those changes on students’ EI upon completion of an entrepreneurship course. It uses longitudinal survey data of 245 business students in a Philippine university. Using cross-lagged panel method and partial-least squares-based structural equation modelling, the study builds and tests the measurement and structural models to examine the hypothesised interactions of EK, perceived desirability of, self-efficacy towards entrepreneurship, and EI. The findings underscore the importance of developing knowledge to nurture students’ self-confidence and attitudinal propensity to engage in entrepreneurship.

Knowledge management culture, strategy and process in Malaysian firms

Malaysia is one of the leading countries in Asia that are at the forefront in the development of a knowledge-based economy (KBE). The Malaysian government has been making substantial investments in both physical and technological infrastructure to facilitate knowledge-intensive economic activities. Foreign and local firms in Malaysia are encouraged to take advantage of the opportunities brought by the emerging KBE. However, little is known as to how firms in Malaysia respond to this new trajectory of economic development. In particular, there is paucity in the literature as to how Malaysian firms manage knowledge in their organizations as they strive to achieve sustainable competitive performance. Little is known as to how and why firms in Malaysia develop and manage their intangible and knowledge-based resources as they operate and respond to the modern knowledge-based competitive economic arena. This paper examines a type of organizational culture that supports and promotes knowledge management (KM) within firms in Malaysia. The paper argues that KM-oriented culture shapes the overall KM strategy of firms, which consequently shapes the organizational process required to manage the firms knowledge-based resources. The study uses survey data from a sample of 153 firms from Malaysia. Structural equation modelling was used to develop and test the measurement model of KM-oriented culture, KM strategy and KM process of the sample firms, as well as the structural model of their hypothesized relationships. The results show that firms with high level of KM-oriented culture demonstrated well-defined KM strategies. Firms that implemented well-defined KM strategies also reported that they have better KM processes in place. Building a KM-oriented culture within the organization is a pre-requisite to the implementation of any KM systems in Malaysian firms. Successful implementation of KM strategies, processes and the supporting technological infrastructure depends on whether organizational members consider KM as a norm within the firm. The studys focus on the linkages between KM-oriented culture, strategy and process in the context of Malaysian firms contributes to a more nuanced understanding of KM among firms in the Asian context in general, and in the Malaysian context in particular.

Looking beyond HRM practices in enhancing employee retention in BPOs: : focus on employee–organisation value fit

This paper argues that the effectiveness of HRM practices in tackling employee retention can be enhanced by improving the compatibility between employee and organisational values. We test our hypothesis using structural equation modelling on a sample of 258 employees in business process outsourcing (BPO) firms in the Philippines. The results show that the fit between employee and organisation values positively and partially mediates the effects of HRM practices on employee retention. However, employee–organisation value clash in US-owned BPOs was found to have a negative effect on employee retention. Because employees are less likely to leave when they share similar values as their organisations, HRM practices can be used strategically to improve the employee–organisation value fit to improve retention. The implications of the findings for HR managers of BPOs in developing countries are fully discussed.

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

Purpose - This study aims to challenge the conventional view that resources determine the extent of the 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 – i.e. 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 focus not just on financial forms of assistance. Originality/value - To date, this is the only Philippines-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.

Effects of rule of law on firm performance in South Africa

Purpose – South Africa (SA) has undertaken significant institutional reforms since the change in its political regime in 1994. During the same period, SA has also experienced rapid economic growth. Although it is widely accepted that institutional reform generally has positive impacts on firm competitiveness and economic growth, the extent to which institutional reforms in SA have been of benefit to businesses is not well understood. The purpose of this paper is to focus specifically on the rule of law and assesses the extent to which the rule of law affects business performance.Design/methodology/approach – The study uses multinomial logistic regression techniques and data, from a large‐scale firm level survey (n=751) of SA businesses undertaken by the World Bank in 2007, to estimate the effects of various elements of the rule of law on firm performance.Findings – Crime and theft were found to have the largest impact on business performance, followed by corruption and tax administration. Political instab...

Effects of Entrepreneurial and Environmental Sustainability Orientations on Firm Performance: A Study of Small Businesses in the Philippines

Why do small businesses in developing countries embrace sustainable business practices and what are the effects on their performance? We address these questions by drawing on the natural‐resource based view of the firm to argue that the environmental sustainability orientation of small businesses can be explained by their entrepreneurial orientation. Our study of 197 small businesses in the Philippines shows that an entrepreneurial strategic orientation enables them to develop a more proactive stance toward environmental sustainability practices which lead to superior firm performance. The implications of the findings for future research and for public policy for small businesses are also discussed.

Explaining the environmentally-sustainable consumer behavior: a social capital perspective

Purpose - – The purpose of this study is to examine the effects of social capital within a community on the adoption of consumer eco-behaviour or environmentally sustainable behaviour of consumers. The authors draw on the behavioural perspective model (BPM) of consumer behaviour and social capital theory in arguing that social capital shapes a consumer’s knowledge of environmental issues and pro-environmental attitudes, which in turn influence a consumer’s perceived capability to engage in eco-behaviour. Design/methodology/approach - – This study uses partial least squares approach to structural equation modelling of survey data involving 1,044 consumers in the Philippines. It involves testing of a measurement model to examine the validity and reliability of the constructs used in the study. This is followed by testing of the structural models to test the hypothesised relationships of the constructs. Findings - – The results suggest the substantive influence of social capital on environmental knowledge, pro-environmental attitudes and eco-capability. Both knowledge and attitudes have positive effects on eco-capability, which in turn positively shapes eco-behaviour. Research limitations/implications - – Future studies can examine how social capital as a multi-dimensional construct impacts context-specific consumer behaviour. Practical implications - – Social and environmental marketing may focus on social network activation to encourage eco-behaviours of consumers. Social implications - – Findings highlight the role of social capital within one’s community as a resource channel to encourage environmentally responsible consumer behaviour. Originality/value - – The study extends the BPM by offering a social capital view as a more nuanced explanation of consumer eco-behaviour.

Environmental sustainability change management in SMEs: learning from sustainability champions

This study identifies the change management processes involved in undertaking environmental sustainability (ES) initiatives within Small and Medium Size Enterprises (SMEs) and relate these to the main attributes of learning organisations. Using case study techniques, the study draws from the change management experiences of a sample of 12 ES champions in different industries. The findings suggest that the ES champions experience four distinct change management stages in undertaking ES initiatives; namely the design, internalise, implement and evaluate stages. Each stage is also found to relate strongly with a number of key characteristics of learning organisations. Overall, the findings suggest that SMEs with strong learning organisation attributes are more likely to be successful in implementing and managing ES change initiatives. The implications of the findings are also discussed.