Cornelia Droge

Psychological and Traditional Determinants of Structure.

The authors would like to thank Jean-Marie Toulouse and Jeannine Robichaud for their help with the data gathering and sample design, Richard Germain for his advice and analytical contributions to the LISREL analysis, Morty Yalovsky, Peter H. Friesen, Donald C. Hambrick, Alex Whitmore, and Richard P. Bagozzi for their suggestions, and the Social Sciences and Humanities Research Council of Canada and the Government of Quebec FCAC program, respectively, for grants #494-84-0012 and #EQ1 867. A study was undertaken to examine the relationships of chief executive need for achievement and the traditional contingencies of size, technology, and environmental uncertaintywith organizational structure. A number of models relating the structural constructs of formalization, centralization, and integration with their hypothesized determinants were examined using LISREL and multipleregression analyses. CEO need for achievement and size were found to have the strongest relationships to most structural constructs; technology and uncertainty had very little impact on structure. The relationships between need for achievement and structure were usually highest in samples of small and young firms, suggesting that CEO personality might be influencing structure, rather than the reverse.

The Effects of Environmental Turbulence on New Product Development Strategy Planning

Managers need guidance on how to cope with turbulent environments in order to improve corporate performance. Research on environmental turbulence has suggested that firms adopt a less centralized, more organic structure in dynamic, uncertain environments. Little work has been done specifically, however, on how environmental turbulence affects strategy planning for new product development (NPD). In this article, we specify a baseline model with firm innovativeness, market orientation and top management risk taking as antecedents to NPD speed and corporate strategic planning; these in turn are modeled as antecedents to NPD program (not project) performance. Two conceptualizations of the role of environmental turbulence are examined: (1) that market turbulence and technological turbulence are additional direct antecedents to NPD program performance; and (2) that the baseline model is moderated by turbulence (that is, that the strengths of the paths differ depending on levels of turbulence). A cross-sectional survey methodology including four diverse industries [automotive, electronics, publishing, and manufacturing/research and development (RD risk-taking decisions ought to be encouraged in such environments.

Service Quality, Trust, Specific Asset Investment, and Expertise: Direct and Indirect Effects in a Satisfaction-Loyalty Framework

This study proposes an integrated framework explaining loyalty responses in high-involvement, high-service luxury product markets. The model is rooted in the traditional (attribute satisfaction)-(overall satisfaction)-(loyalty) chain but explicitly incorporates facility versus interactive service quality, trust, specific asset investment (SAI), and product-market expertise. The authors focus on disentangling the direct versus indirect effects of model constructs on attitudinal versus behavioral loyalty responses. The results support the traditional chain but also show loyalty can be increased by building a trustworthy image and creating exchange-specific assets. The authors found that overall satisfaction is the precursor both to loyalty and to building SAI. Finally, consumers have different costs in reducing adverse selection problems with information, and thus the negative effect of product-market expertise on behavioral loyalty needs to be controlled if the direct versus indirect effects of model constructs on loyalty are to be disentangled.

Strategic Process and Content as Mediators Between Organizational Context and Structure

A series of LISREL analyses showed that aspects of the strategy-making process and the content of business strategies mediate between organizational context and structure. One dimension of context,...

Dimensions of manufacturing strength in the furniture industry

Abstract This paper explores dimensions of manufacturing competitive strength in the furniture industry. A theoretically relevant set of manufacturing competitive priorities is identified from the operations literature and factor analyzed to determine the core dimensions of manufacturing performance. Relationships between these core dimensions of manufacturing strength and overall business performance are examined. The results identify four dimensions of manufacturing strength in the furniture industry: innovation, delivery, flexibility, and value, with the latter encompassing the combined effects of quality and cost. The study supports innovation as a key order winner in the furniture industry.

Does Customer Knowledge Affect How Loyalty is Formed

The authors first propose and test a cognitive-affective-conative baseline model: Perceived service quality (both tangible company-related and employee-related factors) is modeled antecedent to satisfaction and trust, which in turn are antecedents to customer loyalty responses (word of mouth and traditional loyalty). These relationships are then hypothesized to be moderated by high versus low knowledge, a moderation based on central versus peripheral processing. The results show that employee service quality has a greater impact than company service quality on trust and on satisfaction in both knowledge groups. The relationship of trust to word of mouth is both direct and indirect through satisfaction for both knowledge groups, but the relationship of trust to loyalty is both direct and indirect through satisfaction only for the high-knowledge group; for the low-knowledge group, the relationship of trust to loyalty is indirect only, through satisfaction.

Entrepreneurial Orientation versus Small Business Orientation: What are Their Relationships to Firm Performance?

This study examines the constructs of entrepreneurial orientation (EO) versus small business orientation (SBO), their impact on small business performance, and whether these effects are moderated by longevity. A sample of 267 small business owners from 11 small–medium downtowns was used in structural equation modeling (SEM) testing of the measurement, structural and moderation hypotheses. The measurement confirmatory factor analyses models of the two constructs revealed that EO and SBO are unique constructs. Then a structural model predicting performance was tested. Finally, a two‐group model split on “below 11 years” versus “11+ years” demonstrated that the structural paths connecting EO and SBO to performance are not the same in these groups: for the younger group, only EO significantly predicts performance while for the older group, only SBO significantly predicts performance.

The contribution of quality to business performance

Quality is consistently listed as one of manufacturing’s top competitive priorities and has become a prerequisite for success in the global marketplace. Quality helps a firm gain a competitive advantage by delivering goods to the marketplace that meet customer needs, operate in their intended manner, and continuously improve quality dimensions in order to “surprise and delight” the customer. While quality’s significance has been emphasized for years, the contribution of quality to business performance has been largely unexplored. Results of a survey sent to the furniture industry show that quality dimensions ‐ especially design quality and product improvement ‐ are highly correlated with business performance. Quality remains the foundation of competitive advantage, even if a firm’s short‐term attention has drifted to speed‐to‐market, cost reduction and other concerns.

The impact of human resource management practices on manufacturing performance

Abstract A human resource management (HRM) analysis framework is proposed and tested using data from first tier suppliers to the Big 3 in North America. Relationships among underlying dimensions of human resource management practices and manufacturing performance are examined. The study found support for the proposed framework, suggesting that human resource management practices can be grouped into five distinct factors, four of which are associated with specific manufacturing competitive dimensions (quality, flexibility, cost and time). The remaining HRM factor is generic. The four priority-specific HRM factors are strongly related to their respective manufacturing performance dimensions.

Quality‐related Action Programs: Their Impact on Quality Performance and Firm Performance

From analyses of the direct effects of 10 quality action programs on six firm performance outcomes, as well as their indirect effects through eight quality performance dimensions, two routes from action programs through quality performance to firm performance in the automotive supply industry are identified. The first is the product quality route, whose landmarks are superior quality performance on Conformance and Design Quality dimensions; the second is the relationship quality route, with superior Customer Responsiveness and Service. Both the product quality and the relationship quality routes lead to superior ROI; the former also leads to enhanced ROA, and the latter to enhanced market share performance. Associated key action programs are Committed Leadership, Cross-Functional Quality Teams, Employee Empowerment, Supplier Development, and Closer Customer Relationships. The first three are internally focused, while the latter two are boundary-spanning supply chain programs.