• Title/Summary/Keyword: Business Dynamism

Search Result 44, Processing Time 0.026 seconds

Dynamic Capabilities, Environmental Dynamism and Small and Medium Enterprises' Internationalization Level

  • ALI, Hazem;HAO, Yunhong;AIJUAN, Chen
    • The Journal of Asian Finance, Economics and Business
    • /
    • v.7 no.9
    • /
    • pp.527-536
    • /
    • 2020
  • International business research presents a broad consensus on the importance of dynamic capabilities in the internationalization of SMEs. However, there is a lack of research on assessing the impact of dynamic capabilities and the level of SMEs' internationalization operating in a turbulent and dynamic business environment. This study examines the impact of environmental dynamism and three sets of dynamic capabilities, namely, sensing, seizing, and reconfiguring capabilities on internationalized SMEs' geographic scope. In addition, this research examines the association between internationalized SMEs' characteristics: SME's age, size, and SME owner/manager's international experience and SMEs' geographic scope. This study used a quantitative research and employed survey questionnaires to collect data from 305 internationalized Malaysian manufacturing SMEs. Anova tests and Chi Square tests were employed to analyze data collected from respondents using SPSS. Research findings revealed that environmental dynamism and dynamic capabilities have a significant impact on internationalized SMEs' geographic scope, however, none of the internationalized SMEs' characteristics had a significant relationship with their geographic scope. The result of this research suggest internationalized SMEs owner/managers need to possess sensing, seizing and reconfiguring capabilities, and monitor business environmental dynamism to increase their geographic scope. This paper ends with drawing a set of concluding remarks and recommendations.

The Effects of Environmental Dynamism on the Dissolution Intention (환경의 동태성이 관계해지의도에 미치는 영향)

  • Kang, Boy-Yeon;Oh, Se-Jo
    • Journal of Distribution Research
    • /
    • v.10 no.1
    • /
    • pp.85-106
    • /
    • 2005
  • This study has investigated the mediating effects of dependence, goal incongruence, and conflict in processing of environmental dynamism effects on the dissolution intention in the discount store industry. As the result of hypotheses test using data collected from 180 supplier samples, environmental dynamism has the positive effects on dependence, goal incongruence, and conflict. Goal incongruence has the positive effect on conflict. Goal incongruence and conflict has the positive effects on dissolution intention. But, dependence didn't decrease dissolution intention significantly. Finally, the authors discussed the theoretical contributions, managerial implications, and limitations of this study and presented the future research directions.

  • PDF

The Effects of Environmental Dynamism on Supply Chain Commitment in the High-tech Industry: The Roles of Flexibility and Dependence (첨단산업의 환경동태성이 공급체인의 결속에 미치는 영향: 유연성과 의존성의 역할)

  • Kim, Sang-Deok;Ji, Seong-Goo
    • Journal of Global Scholars of Marketing Science
    • /
    • v.17 no.2
    • /
    • pp.31-54
    • /
    • 2007
  • The exchange between buyers and sellers in the industrial market is changing from short-term to long-term relationships. Long-term relationships are governed mainly by formal contracts or informal agreements, but many scholars are now asserting that controlling relationship by using formal contracts under environmental dynamism is inappropriate. In this case, partners will depend on each other's flexibility or interdependence. The former, flexibility, provides a general frame of reference, order, and standards against which to guide and assess appropriate behavior in dynamic and ambiguous situations, thus motivating the value-oriented performance goals shared between partners. It is based on social sacrifices, which can potentially minimize any opportunistic behaviors. The later, interdependence, means that each firm possesses a high level of dependence in an dynamic channel relationship. When interdependence is high in magnitude and symmetric, each firm enjoys a high level of power and the bonds between the firms should be reasonably strong. Strong shared power is likely to promote commitment because of the common interests, attention, and support found in such channel relationships. This study deals with environmental dynamism in high-tech industry. Firms in the high-tech industry regard it as a key success factor to successfully cope with environmental changes. However, due to the lack of studies dealing with environmental dynamism and supply chain commitment in the high-tech industry, it is very difficult to find effective strategies to cope with them. This paper presents the results of an empirical study on the relationship between environmental dynamism and supply chain commitment in the high-tech industry. We examined the effects of consumer, competitor, and technological dynamism on supply chain commitment. Additionally, we examined the moderating effects of flexibility and dependence of supply chains. This study was confined to the type of high-tech industry which has the characteristics of rapid technology change and short product lifecycle. Flexibility among the firms of this industry, having the characteristic of hard and fast growth, is more important here than among any other industry. Thus, a variety of environmental dynamism can affect a supply chain relationship. The industries targeted industries were electronic parts, metal product, computer, electric machine, automobile, and medical precision manufacturing industries. Data was collected as follows. During the survey, the researchers managed to obtain the list of parts suppliers of 2 companies, N and L, with an international competitiveness in the mobile phone manufacturing industry; and of the suppliers in a business relationship with S company, a semiconductor manufacturing company. They were asked to respond to the survey via telephone and e-mail. During the two month period of February-April 2006, we were able to collect data from 44 companies. The respondents were restricted to direct dealing authorities and subcontractor company (the supplier) staff with at least three months of dealing experience with a manufacture (an industrial material buyer). The measurement validation procedures included scale reliability; discriminant and convergent validity were used to validate measures. Also, the reliability measurements traditionally employed, such as the Cronbach's alpha, were used. All the reliabilities were greater than.70. A series of exploratory factor analyses was conducted. We conducted confirmatory factor analyses to assess the validity of our measurements. A series of chi-square difference tests were conducted so that the discriminant validity could be ensured. For each pair, we estimated two models-an unconstrained model and a constrained model-and compared the two model fits. All these tests supported discriminant validity. Also, all items loaded significantly on their respective constructs, providing support for convergent validity. We then examined composite reliability and average variance extracted (AVE). The composite reliability of each construct was greater than.70. The AVE of each construct was greater than.50. According to the multiple regression analysis, customer dynamism had a negative effect and competitor dynamism had a positive effect on a supplier's commitment. In addition, flexibility and dependence had significant moderating effects on customer and competitor dynamism. On the other hand, all hypotheses about technological dynamism had no significant effects on commitment. In other words, technological dynamism had no direct effect on supplier's commitment and was not moderated by the flexibility and dependence of the supply chain. This study makes its contribution in the point of view that this is a rare study on environmental dynamism and supply chain commitment in the field of high-tech industry. Especially, this study verified the effects of three sectors of environmental dynamism on supplier's commitment. Also, it empirically tested how the effects were moderated by flexibility and dependence. The results showed that flexibility and interdependence had a role to strengthen supplier's commitment under environmental dynamism in high-tech industry. Thus relationship managers in high-tech industry should make supply chain relationship flexible and interdependent. The limitations of the study are as follows; First, about the research setting, the study was conducted with high-tech industry, in which the direction of the change in the power balance of supply chain dyads is usually determined by manufacturers. So we have a difficulty with generalization. We need to control the power structure between partners in a future study. Secondly, about flexibility, we treated it throughout the paper as positive, but it can also be negative, i.e. violating an agreement or moving, but in the wrong direction, etc. Therefore we need to investigate the multi-dimensionality of flexibility in future research.

  • PDF

Relationship between Dynamic Capabilities, Operational Capabilities and Innovation Performance : Considering Moderating Effect of Environmental Dynamism (동적역량, 운영역량, 혁신성과 간의 관계: 환경역동성을 조절변수로 하여)

  • Park, Sang Oon;Cho, Keun Tae
    • Journal of Technology Innovation
    • /
    • v.28 no.4
    • /
    • pp.27-62
    • /
    • 2020
  • This study empirically verified the effect of environmental dynamism on changes in the dynamic and operational capabilities of an enterprise and its innovation performance. With the aim of quantification, the concept and definition of each capability were defined as a hierarchical structure of dynamic and operational capabilities. Five research hypotheses were established through prior research on dynamic capabilities, operational capabilities, innovation performance, and environmental dynamism. For empirical analysis, the hypotheses were verified based on surveys from 300 Korean manufacturing companies. It was shown that Dynamic capabilities had a positive relationship with operational capabilities and operational capabilities had a positive relationship with innovation performance. And it was shown that operational capabilities had a positive relationship with radical innovation in business groups with high environmental dynamism while operating capabilities had a positive relationship with gradual innovation in business groups with low environmental dynamism. Also, the moderating effect of environmental dynamism was not significant in the relationship with dynamic capabilities on operational capabilities. This study is meaningful in that it lays the groundwork for empirically verifying the dynamic capabilities of an enterprise by embodying its dynamic capabilities and operational capabilities into processes, and verifies the effect of environmental change on its capabilities and innovation performance. And it has implications to suggest how an enterprise should transform its capabilities to sustain its competitive advantage in a rapidly changing environment.

The Relationship of Taxonomy of Social Capital and Firm's Performance in the Game Industry (게임산업의 사회적 자본유형과 경영성과의 관계)

  • Seo, Tae-Geon;Chung, Dong-Seop
    • Journal of Korea Multimedia Society
    • /
    • v.17 no.10
    • /
    • pp.1253-1262
    • /
    • 2014
  • Social capital is a sociological concept, which refers to connections within and between social networks. Social capital explains the importance of using social connections and social relations in achieving goals. Social capital such connections and relations, is critical along with environmental dynamism and organizational characteristics in achieving goals for firm's performance. This paper draw the taxonomy of social capital and then analyzed the relationship of firm's performance, environmental dynamism and organizational characteristics such as innovative culture. The empirical results using 134 game corporations in Korea showed that the configuration between taxonomy of social capital was significantly related to organizational structure and innovative culture. And second, the taxonomy of social capital is significantly related to firm's performance.

The Effects of Output Sector Munificence and Dynamism on Distribution Channel Performances: Moderating Effects of Integration (수요부문 풍요성과 동태성이 유통경로 성과에 미치는 영향: 수직적 통합의 조절효과)

  • Kim, Sang-Deok;Oh, Se-Jo
    • Journal of Distribution Research
    • /
    • v.11 no.1
    • /
    • pp.1-20
    • /
    • 2006
  • In these days of severe changes in the environment and economic slump, it is indispensable for firms to cope with the environment effectively. This study is an attempt to investigate the mechanisms through which output sector munificence and dynamism affect distribution channel performances, such as, satisfaction, trust, and commitment. Especially, this study focus on moderating effects on distribution channel integration that has not been investigated in the past. For the purpose of empirical testing, 70 corporate channels, 120 contractual channels, and 100 conventional marketing channels have been selected and analyzed. According to the result from moderated regression analysis, munificence strengthens distribution channel performances, while dynamism weakens them. And integration reinforces the effects.

  • PDF

Business Dynamism and Youth Jobs (기업 성장과 청년 일자리)

  • Kim, Jungho;Choi, Kyungsoo
    • Journal of Labour Economics
    • /
    • v.41 no.2
    • /
    • pp.1-29
    • /
    • 2018
  • The paper reviews the trend of youth employment in Korea in recent years and examines whether the change in labor demand through declining business dynamism is one of the causes. The analysis based on Employment Insurance database finds that the rate of job creation declined over the period from 1999 to 2014 and that the job creation of small- and medium-sized enterprises fell sharply. This is partly explained by entry of fewer firms than before given that young firms tend to experience rapid employment growth. In fact, it is confirmed that the share of firms under age 6 in employment level and job creation declined. The finding that young firms employ young workers more than old firms suggests that a smaller role of young firms in the economy had a negative effect on youth employment.

  • PDF

The Influence of Environmental Dynamism on Opportunism in Terms of Control Mechanism and Bureaucratic Structuring (환경의 동태성이 통제 메커니즘과 관료적 구조화를 매개로 기회주의에 미치는 영향)

  • Seol, Do-Won;Oh, Se-Jo;Sung, Min
    • Journal of Distribution Research
    • /
    • v.14 no.2
    • /
    • pp.1-30
    • /
    • 2009
  • The purpose of this study is to investigate the direct and indirect modes of influences environmental dynamism exerts on opportunism, one of important relationship factors. This study particularly delves into the indirect modes of influence in terms of control strategy (control mechanism) and control structure (bureaucratic structuring). To this end, a survey research has been conducted of 200 suppliers in business relationships with Korean hypermarket retailers. An analysis of the collected data indicates that while environmental dynamism has a positive influence on the control mechanisms such as monitoring and incentives, it does not have a negative influence on the control structure such as participation. And then it has a positive influence on the opportunism of suppliers. In addition, participation has a negative influence on the opportunism, but monitoring and incentives do not have a negative influence on it. This study discusses how both retailers and their suppliers should respond to the domestic retail business environment with highly dynamic characteristics, in order to achieve a long-term win-win partnership with one another. It also presents ideas to retailers with regard to what kinds of management strategies and management efforts required to effectively control the opportunism of suppliers.

  • PDF

What Determines Open Innovation in SMEs? An Empirical Study Considering the Strategy-Culture Mixed Typology and Environmental Dynamism (무엇이 중소기업의 개방형 혁신을 결정하는가? 전략-문화 혼합유형과 환경 역동성을 고려한 실증연구)

  • Kwon, Se-In;Yang, Jong-Gon
    • Journal of Convergence for Information Technology
    • /
    • v.12 no.4
    • /
    • pp.345-353
    • /
    • 2022
  • The purpose of this study is to identify the types for open innovation of SMEs considering strategic- culture mixed typology and environmental dynamism. The analysis results of 182 SMEs classified into 4 groups are as follows. First, type PD had a positive effect on innovation performance in both in-bound and out-bound innovation and had improved performance through in-bound innovation in a dynamic technical environment. While DH had no significant effect on both innovations. Second, PH and DD, strategy-culture mismatched types, had a single effect of innovation that affected performance. No moderating effects of environmental dynamism had been shown in types PH, DD, DH. SMEs that aim for open innovation should strive to improve performance by aligning change-oriented strategy with creative and challenging culture.

A Study on Burger King The Growth Mechanism: Toward The Dynamism of Corporate Success and Failure (기업성패 동태적 모형에 따른 버거킹 성장 매커니즘에 관한 연구)

  • Lee, Choong-Woo
    • The Korean Journal of Franchise Management
    • /
    • v.5 no.2
    • /
    • pp.51-67
    • /
    • 2014
  • Looking at the case of countries or companies, the success and failure can be found a certain repetitive 'Pattern'. In this paper, global franchise company factors determine the success or failure of the Burger King on the market dynamism perspective, and looked to discuss its implications. The success or failure of a company in a country like pattern of the growth and erosion and stagnation and decline, and the pursuit of sustainable growth through relentless improvement reactivated. Burger King has more to strengthen brand equity oriented by the world's best restaurant through the development of aggressive marketing activities in the global market to regain its former glory.