Thomas Anning-Dorson

Moderation-mediation effect of market demand and organization culture on innovation and performance relationship

The purpose of this paper is to examine the effect of market demand on innovation-firm performance relationship in service firms. The paper further analyzes the extent to which market demand influences the effect of product innovation on firm performance and how such effect could be managed by a specific type of cultural orientation that is critical to strategic management.,Data were collected from different service sub-sectors of an emerging economy with a fast-growing services sector. Causal modeling methods through different model comparisons are used in analyzing the relationship between innovation and service firm performance and environmental mediating and moderating effects.,The findings suggest that though product innovation has a positive effect on firm performance, high market demand dampens and negate this effect. However, a service firm’s ability to build an innovative culture, that supports strategy implementation, assuages this negative effect and restores the positive relationship between product innovation and firm performance, even in the face of environmental coercion.,This paper shows that market demand will dampen the effect of product innovation on performance and as such must be managed in a way that mitigates this negative effect. The building of an organizational culture that is innovative is therefore recommended to mitigate this negative effect to render product innovation still relevant even in periods where market conditions prevent favorable performance effects.

Branding capabilities and SME performance in an emerging market: The moderating effect of brand regulations

Purpose The purpose of this paper is to test the effect of brand regulations on the relationship between enterprises’ branding capabilities (internal and external) and performance. It also examines the hypothesized relationship effects across manufacturing and service-based enterprises. Design/methodology/approach The study uses data from 384 small- and medium-sized enterprises (SMEs) within an emerging market setting. Moderated hierarchical regression was used to examine the theoretical interrelationships between branding capabilities and enterprise performance within the boundaries of regulations. Findings Results from the study suggest that both internal and external branding capabilities positively affect enterprise performance. However, the effect is confounded as brand regulations attenuate the relationship between enterprises’ branding capabilities and performance. Varying outcomes across manufacturing and service-based enterprises are also assessed. Originality/value The study suggests that policy makers should review regulations on businesses, particularly those relating to the small business sector. Regulations that ameliorate activities of SMEs should be implemented to promote existing enterprises, and attract new ones for industrialization in emerging markets. The findings provide evidence for issues of potential research and managerial interest, with implications for both policy makers, small business owners and the academic community.

How much and when to innovate: The nexus of environmental pressures, innovation and service firm performance

Purpose The purpose of this paper is to examine the role of market innovation in driving service performance in the context of environmental pressures. This paper argues from the complexity theory that the development and the implementation of market innovation must critically examine the effect of customer demand and competitive intensity in the innovation efforts of service firms. Design/methodology/approach Data from different sub-sectors of the services industry of a growing emerging African economy are used. Structural equation modeling was used in analyzing the interconnection among environmental pressures, market innovation and firm performance. Findings The study found that both market demand and competition impact on innovation development positively. However, in terms of the moderation effects, competition negatively moderates the relationship between innovation and performance, while customer demand moderates the relationship positively. Practical implications The implications are that the implementation of market innovation must be reduced in low demand periods and high competitive periods in order to maximize financial and non-financial performance benefits for the service firm. Originality/value The current study complements the complexity theory by stating that the complex nature of business environment presents both opportunities and threats. However, for effective sense making out of the information provided by environment, service firms must evaluate environmental effect differently. While a factor may promote the development of strategy, same environmental factor may hinder the positive influence such strategy may have on overall firm performance.

Interactivity innovations, competitive intensity, customer demand and performance

Purpose The purpose of this study is to identify dimensions of interactivity service innovations and examine the moderating effect of external factors, i.e. customer demand and competitive intensity, on the relationship between such service innovations and service firm performance. Design/methodology/approach Data were collected at two levels; the first for validation; and the second for confirmatory and relationship analyses. Structural equation modeling was used in analyzing the relationship between interactivity innovation and service firm performance and environmental moderating effects. Findings The study found that high levels of interactivity innovations, in combination, drive superior performance. It was also found that deployment of high levels of interactivity innovations in high-demand periods is significantly related to high performance. The paper also found that the relationship between high interactivity innovation and financial performance is dampened by intense competition. Originality/value Unlike previous studies, this study found that it is rather high levels of service innovations that maximize performance in service firms operating in emerging economies and not just the implementation of such innovations, and that the implementation must be aligned to the prevailing environmental conditions.

Antecedents of social media usage and performance benefits in small- and medium-sized enterprises (SMEs)

Despite the blossoming nature of social media marketing, the nuances and implications among small- and medium-sized enterprises (SMEs) appear to be under-researched in literature. The purpose of this paper is to progress knowledge and offer extended understanding of the motivations and performance benefits of social media accrued by SMEs with an empirical study from an emerging economy.,Based on past research, the study hypothesizes that interactivity, compatibility and cost effectiveness are motivations germane to social media usage, which consequently offer performance benefits. Data from 210 SMEs (having Facebook and/or Twitter accounts) are employed to investigate the proposed conceptual model using structural equation modeling with sub-group analysis.,Finding from this study demonstrate that the interdependencies of social media motivations, as well as effects of social media usage are positive but erratic across product-based and service-based SMEs. Moreover, SMEs who offer physical products are more likely to employ social media based on cost-effective motives while service SMEs are more likely to consider interactivity as a key motivation. Additionally, findings from the study data suggest that in a tale of two sites, Facebook proved to edge Twitter in terms of engendering performance benefits among SME users.,The findings provide evidence to issues of potential research and managerial interest, offering insightful implications to the academic and practitioner communities. Evidently, irrespective of some usage bottlenecks, SMEs in emerging markets appears to be reaping enhanced social media benefits by deploying their marketing campaigns via multiple platforms.

Innovation and competitive advantage creation: The role of organisational leadership in service firms from emerging markets

The purpose of this paper is to explain how emerging market firms create competitive advantage through innovation. The study through the upper echelon theory and the power distance cultural perspective examines the mediating role of organisational leadership in the innovation and competitive advantage relationships.,Data were collected from the service sectors of two emerging economies, i.e. India and Ghana. Robust standard error regressions were run at two levels. First, at the specific country level and later on the aggregated level for robustness check.,The results show that in both India and Ghana, innovation largely relates positively with competitive advantage. In specific terms, market innovation was found to be the most significant determinant of competitive advantage in both contexts. Additionally, organisational leadership was also found to be mediating between innovation and competitive advantage in both contexts independently and collectively to confirm the effect of power distance and leadership role in such cultures.,The current study looks at only two emerging markets with high power distance cultures. The implication is that the impact of leadership may differ in emerging economies with low power distance.,The current study looks beyond the mundane relationship between financial performance measures and innovation to assess innovation and competitive advantage in emerging markets context, which has not received the needed attention. It further explains how emerging markets firms can ride on the back of power distance to create a competitive advantage with their innovation development and implementation through organisational innovation leadership. The study offers that the maximum exploitation of the beneficial effect of innovation – competitive advantage – in service firms can only be achieved when leaders spearhead the innovation process and see it through implementation.

Effects of regulations and competition on the innovativeness-performance relationship: Evidence from the financial services industry

Purpose The purpose of this paper is to investigate the nature and the extent of moderation effect of the regulatory regime and competition, on the innovativeness-performance relationship among financial services firms. Based on the absorptive capacity theory, this study argues that firms must gather adequate knowledge from the external environment (specifically on regulatory systems and competitive landscape) to assist in developing competitive innovation strategies, and to realize the needed performance benefits from such strategies. Design/methodology/approach Data were collected from the Ghana’s financial services sector with a focus on banking and insurance institutions. Structural equation modeling and regression models were specified to test both the direct effects of variables of interest, and the moderation effects of environmental factors on the independent and dependent variables. Findings The results of the study show that both process and product innovativeness enhance financial services firms’ performance. While competition was found to stifle innovativeness, regulatory regime was found to promote innovativeness in financial services. Regulatory regime was also found to positively moderate the relationship between process innovativeness and performance, while competition was found to positively moderate the relationship between product innovativeness and performance. Research limitations/implications The firms sampled are from an emerging economy with a growing financial services sector, and as a result, the findings may not apply to contexts with different economic characteristics. Originality/value This study asserts that in enhancing innovativeness in the financial services markets, firms must recognize the value of new external information on regulatory regime and competition as key environmental factors. Financial service firms must assimilate, transform, and apply such new knowledge in their innovation efforts in order to improve performance. For firms to fully benefit from their innovation, process innovativeness must be aligned with regulatory systems while product innovation yields best returns in competitive periods.

Enhancing service firm performance through customer involvement capability and innovativeness

Purpose Because of the paucity of empirical research on firm-level capabilities of firms for effective customer involvement, the purpose of this study is to evaluate service firms’ capacity to coopt customers to enhance the innovativeness and firm performance relationship. This study conceptualizes involvement capabilities of service firms as a strategic driver that exploits their internal firm assets, which in turn facilitates the positive relationship between innovativeness and firm performance. Design/methodology/approach Data were collected from 344 managers of service firms across different sub-sectors in an emerging economy. The study first confirmed the constructs through confirmatory factor analysis before analyzing hypothesized relationships. Regression models were specified with robust standard errors to test the hypothesized relationships. Findings The study found that involvement capability of service firms helps them to exploit their relational assets and create and manage strong customer participation. Additionally, it was found that involvement capabilities enable service firms to capitalize on the competencies of customers, which in turn improves the outcomes of their innovativeness. The results showed that the interaction between involvement capability and innovativeness enhances firm performance significantly. Practical implications Service firms can enhance customer participation in the value creation process by increasing their involvement capabilities. The increase in such capabilities will enhance the innovativeness of service firms, thereby improving their financial and non-financial performance. Originality/value This study offers guidance on how a firm’s innovativeness and customer involvement work together within the service operation to enhance firm performance.

Impact of customization and innovation on hospitality firms’ performance

ABSTRACT This study examines how process innovation and customization, both individually and in combination, improve hospitality firms’ financial and non-financial performance. The paper investigates both process innovation and customization as important firm-level capabilities that have the capacity to improve the performance of hospitality firms due to the nature of their operations. This paper uses data from hospitality firms operating in Ghana. The study finds that hospitality firms’ customization capability allows hospitality firms to benefit from using the customer as a key resource and as a production partner to provide the desired value for customer satisfaction. This study further finds that process innovation and customization produce higher levels of firm performance when they are deployed together as they have complementary properties. This study, therefore, offers that customization capability should target at improving innovation capability in order to achieve higher overall firm performance for hospitality firms.

Innovation and organizational development: the role of organizational leadership

Purpose - The purpose of this paper is to assess the moderation effect of organizational leadership on the relationship between service firm’s innovation strategy and organizational development. The study argues that in Ghana where power distance is high, organizational leadership provides the needed impetus for strategies such as innovation to achieve enhanced firm performance. Design/methodology/approach - Data were collected from different service firms across Ghana for this study. A confirmatory factor analysis was used for construct reliability and validity checks. Robust regression estimations were then performed to test the hypothesized relationships. Findings - The results show that both product innovation as strategy and organizational leadership are positively related to organizational development (i.e. financial and non-financial performance). It was also found that organizational leadership does not only serve as a predictor of strategy formulation but provides the necessary strategic fit between a firm’s strategy and business environment to achieve organizational development. Originality/value - This study has shown that in high-power distance cultures, firms that are able to align their leadership orientation with their institutional environment are able to create a better fit between their strategic orientation and business environment in order to enhance organizational development.