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Purpose: This study aims at the sudden outbreak of COVID-19, which had an unprecedented negative impact on the Chinese economy, with firms being affected most. Firms differ in terms of their specific internal environment, shaping their ability to respond to the outbreak, so the impact may also vary. Design/methodology/approach: In this paper Chinese listed firms are selected as samples to investigate the mediating effect of prior digital technology on the relationship between R&D (research and development) investment (funds and staff) and firm performance during the epidemic. Firm size and diversification are then introduced as moderating variables to explore the conditional mediating effect of digital technology. Findings: The results indicate that the higher the firm's prior R&D investment, the higher its digital technology level, and thus the stronger its resistance to the epidemic. Moreover, compared with large-scale firms, small-scale firms have the advantage of strategic flexibility to technological changes, which can help them accumulate experience from R&D activities for digital transformation, thus attenuating the negative impact of the COVID-19 on firm performance. Finally, the results also show that digital technology mediates more strongly between R&D investment and firm performance in diversified firms than in centralized firms. Originality/value: The study builds a mediation model to reveal the process mechanism through which R&D investment affects firm performance via digital technology. Firm size and diversification are then innovatively introduced as situational factors to build the moderated mediation model, which opens up a new perspective for understanding the effect of firm internal factors on the relationship between R&D investment, digital transformation and firm performance. © 2022, Emerald Publishing Limited.
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The hospitality sector has been one of the worst-hit industries due to the onset of the COVID-19 pandemic, followed by nationwide lockdowns and curfews. Further, other factors, including the Russia–Ukraine war, commodity price rise, and recession, have acted as hurdles in the slow recovery process. Policy experts at different forums have advocated for proactive and robust measures by the government to reduce adverse impacts during these unprecedented times. To design such measures, determining the firm-specific factors that significantly impact their profitability is essential. In this context, this study tries to understand firm-specific factors that affect the hospitality sector's performance in India. It also explores whether the firm-specific characteristics have changed over time due to changes in political regimes and differ between private and publicly listed companies. Using a sample of 440 public and private hospitality firms for 11 years (2010–2020) and after controlling for unobserved heterogeneity using firm fixed effects, we tested the relationship between firm characteristics and performance. The estimation results demonstrate that the net asset turnover, liquidity, foreign earnings intensity, and age have significant, positive impacts on profitability. In contrast, solvency and size have negatively impacted firm performance. Further, we found differences in the magnitudes of coefficients for private and publicly listed companies. The findings provide important implications for managers and regulators to stimulate new solutions to overcome the ongoing difficult period. © 2022 by the authors.
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During environmental crises, it has always been particularly interesting to investigate how companies, specifically small- and mid-sized enterprises (SMEs), find solutions to survive and learn how to act in adverse situations. We conducted our study during the current coronavirus pandemic to analyse how stakeholder pressure affects both the innovation capabilities of SMEs and their firm performance. On the one hand, we examine whether the market and financial performance are better in the presence of less stakeholder pressure. On the other hand, we analyse whether SMEs implement internal mechanisms that enhance their innovation capacity to solve external problems caused by greater stakeholder pressure, which in turn affects firm performance. Our main findings show that during the pandemic, stakeholder pressure is related to the innovative capacity of SMEs; therefore, the higher the pressure, the more important the innovative response of SMEs. However, with higher pressure, the company's performance would be directly reduced in the short term, as the conditions set would be more unfavourable. Innovation capacity also plays a mediating role in preventing poor business performance because of increased stakeholder pressure. Owing to the importance of the chief executive officer (CEO) in SMEs, we test, through multigroup analysis, the differences based on the CEO's educational level. For example, commitment to innovation in SMEs may be more important for managers with higher education. Finally, our findings show how managers can learn to face new challenges in unfavourable environments.
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Using an international setting consisting of 5410 corporations domiciled in 24 countries, we test the insurance-like effect of corporate social responsibility (CSR) performance in the era of the pandemic and confirm that CSR performance increases socially responsible companies' resilience against the adverse effects of the crisis. Comparing stakeholders' responses to CSR activities during the pandemic and normal periods, we observe that the link between CSR performance and firm value is stronger during the crisis period. We also realize that the social aspect of CSR performance is the main driver for the mentioned effects. Finally, comparing the resilience of highly committed socially responsible companies with those with moderate and very low CSR ratings, we observe that best-in-class companies enjoy the greatest buffering effects, implying that the insurance-like effect of CSR performance is non-linear against systematic crises. Findings are robust to ceremonial CSR activities, extreme values of market-based instruments, endogeneity concern, etc.
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Purpose: Scholars have concentrated their efforts on COVID-19's impact on industries worldwide in order to manage timely supply chain disruptions. Epidemic outbursts are a unique supply chain risk that is distinguished by prolonged disruption propagation, disruption existence, and high uncertainty. The purpose of this study was to investigate the role of R&D investment and firm performance in mediating the relationship between disruption risk and supply chain performance in Pakistani manufacturing industries and supply chain employees during the recovery phase of the COVID-19 pandemic via application of dynamic capability theory. Methodology: From July 21 to August 23, 2020, three hundred and eighteen employees from supply chains of manufacturing industries in Rawalpindi and Islamabad, Pakistan, participated in this cross-sectional online web-based survey. The four standard research scales were used to examine the research and development, disruption risk, firm, and supply chain performance. The response link was distributed to respondents via Facebook, WhatsApp, and email. The data was analyzed using structural equation modelling and a partial least squares technique in the study. Results: The study's findings suggest that disruption risk, research and development investment, and firm performance all improve supply chain performance, but the mediation effect is unsupported by the data. These measures help to plan a better supply chain in the face of disruption risk, and they provide one of the timely empirical conclusions on the role of R&D investment in mitigating risk disruptions and improving supply chain performance
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Purpose - The study aims to establish and conceptualise entrepreneurial orientation (EO) as a key construct that positively influences small and medium-sized enterprises (SMEs) performance. In this paper, a conceptual framework was developed, and three research propositions were outlined: EO (innovativeness, proactiveness and risk-taking) positively influences SME performance;the economic stimulus packages moderate EO and the differentiation strategy;and the differentiation strategy mediates EO and SME performance. Each of the constructs was defined, and the conditions during the COVID-19 pandemic in Malaysia were identified. Design/methodology/approach - The paper suggests links between EO and SME performance and the effects of economic stimulus packages and differentiation strategies on Malaysia's service and manufacturing industry. These concepts lead to the development of propositions based on prior empirical studies underpinning the resource-based view theory and contingency approach. The propositions aim to develop further findings and test the hypotheses. Findings - The study proposes three research propositions to conceptualise the relationship between the four main constructs. The study also recommends an empirical approach to conduct and test the research model concerning Malaysia's service and manufacturing industry. Originality/value - While studies on EO and SME performance have been conducted extensively, studies on the impact of various economic stimulus packages by the Malaysian government on the existing EO and SME performance relationship during the COVID-19 pandemic are limited. Separately, this study uses a configuration approach to test the mediator and moderator during the COVID-19 pandemic.
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Purpose>This study aims to propose that, in business-to-business (B2B) industries, number of strategic alliances firms established before a "black swan” event enhances their chances to survive the black swan, and the enhancements take place through moderation effects. Changes in firms' core structures – their stated goals, authority structure, core technologies and marketing strategies – to adapt to business jolts have adverse effects on firm performance. Firms' existing B2B strategic alliances moderate the effects negatively by outsourcing different goals, authority structures, core technologies and marketing strategies to partners who fit the changed environment.Design/methodology/approach>This study collected quantitative data and analyzed the data with the regression method.Findings>Using data from Chinese firms in five technology industries during the 2007–2009 economic crisis, this study finds that firms' internal adaptation is negatively correlated with their performance during economic crises, and B2B strategic alliances negatively moderate this relationship.Research limitations/implications>First, this study focuses on B2B strategic alliances, and it is not clear whether the findings apply to B2C industries, where strategic alliances may not be common. Perhaps firms can use other means of survival in addition to strategic alliances in B2C industries. Second, this study does not differentiate between fast-moving and slow-moving industries, and it is not clear whether strategic alliances play the same role in both industries. Third, this study does not differentiate firm ages and sizes. It remains unclear how large, established and small, young firms differ when facing crises. Finally, this study is based on the Chinese setting, and it is not clear whether the findings apply to other markets as well. These issues should be explored in future studies.Practical implications>Changing firms' core structures harms their performance during black swan crises because such crises are unpredictable, and planned changes may not adapt firms to crises. Managers should not attempt to change their core structures during crises. B2B strategic alliances provide an effective means for firms to survive crises.Originality/value>This paper makes two contributions to the existing literature: First, this paper demonstrates that changes of one of the four core structures of a firm to cope with black swan events have negative impacts on firm performance. Second, this paper identifies the importance of holding a variety of strategic alliances previously to the black swan events to reduce the negative impacts of changing core structures.
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The Covid - 19 upsurge has materially affected the operating abode of the banking sector worldwide. Its restrictions have interrupted its economic activities and caused grave commercial fallout for this sector. The present study evaluates the effect of Covid - 19 on the governance constitution and the firm performance of the Indian banking sector for the period 2019-2020. It compares the Covid - 19 impacts on the board's governance structures and the bank's performance in the pre and post-pandemic period. It also empirically examines their interrelationship during uncertain times. The results of the study establish that the board size is the sole prominent governance parameter that exerted a pragmatic influence on the bank's performance during the pandemic. The study's outcomes propound policymakers in designing a congruous governance framework for the corporate sectors during the pandemic. It proposes that the right balance of the stakeholder interests with effective risk strategies is essential in developing an effective governance framework. The study is pre-eminent in providing the empiric Covid - 19 repercussions on the governance procedures and corporate performance. It demonstrates the contemporary governance issues during the pandemic and unveils the avenues for subsequent research. © 2022 SCMS Group of Educational Institutions. All rights reserved.
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COVID-19 has developed chaos and uncertainty for small and medium enterprises (SMEs) causing mass downsizing. Under such uncertainty, innovation is key to survival and agility to growth. This study examines role of knowledge coupling and business process digitization (BPD) in sustaining innovation through market capitalizing agility (MCA) besides downsizing strategy. Data have been collected from top and mid management of Chinese manufacturing SMEs and analyzed with knowledge-based view and self-tuning model through Smart-PLS 4. Knowledge coupling positively contributes to MCA and innovation irrespective of downsizing strategy. Effect of BPD on innovation performance is same;however, insignificant on MCA in no-downsizing sample. Likewise, MCA positively influences innovation performance and positively mediates between knowledge coupling (BPD) and innovation performance only during downsizing. This study is first of its kind to establish mediating effect of MCA between knowledge coupling (BPD) and innovation performance during downsizing phase and offers significant theoretical and practical implications. JEL Classification: J63, O31
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We examine the effect of COVID-19-induced lockdown on the profitability of listed firms in India. We use quarterly income statement of 4168 listed firms for the period between April–June 2020 quarter and April–June 2022 quarter and compare their financial data with previous quarters (2015–2019). Using a difference-in-difference estimation framework and various profitability measures, we find that the COVID-19 lockdown has reduced profits by around 15 per cent for listed firms in India. Our results are robust to various robustness tests and alternate specifications. We find evidence of firms losing revenues more than expenses, thus leading to decline in profits. The main effect is conditioned by firm-specific factors. Specifically, firms that are smaller, older, unlisted and that do not belong to any group witnessed larger decline in profitability due to lockdown. Additionally, the effect of lockdown is more pronounced in areas that had lower mobility and higher COVID-19 spread. These results underscore the importance of institutional factors and pre-existing firm characteristics in conditioning the impact of lockdown on firm profitability. © 2023 The Economic Society of Australia.
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This study aimed to identify the effect of corporate governance mechanisms on performance. The corporate governance mechanisms in this study included the number of directors, independent commissioners, female directors, and government ownership. The objects of this research were conventional banking companies listed on the Indonesia Stock Exchange (IDX) during the 2015-2020 period, for 204 observations. Data analysis used random effect regression with robust standard error. The study results revealed that the internal mechanisms in the form of the number of directors and government ownership affected bank performance. However, only independent commissioners as internal corporate governance mechanisms could protect the firm's performance during the crisis. Independent commissioners were proven to effectively protect against the crisis's destructive effects, reducing ROA (Return on Assets). Meanwhile, the number of directors, government ownership, and female directors were insufficient to protect the firm's performance during COVID-19 pandemic.
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Bank stability is a goal that bank managers aim for in addition to the goal of maximizing shareholder value. To achieve this goal, commercial banks have applied various solutions, including corporate governance because corporate governance plays an important role in the business activities of an enterprise in general as well as in that of a commercial bank in particular. The purpose of this paper is to investigate the impact of corporate governance on the stabilities of Vietnamese commercial banks in the period from 2009 to 2020. Using hand-collected data from 25 commercial banks in Vietnam, by system GMM estimation and the Bayesian Mixed-Effects approach, the paper identifies the characteristics of corporate governance affecting bank stability. Board size, women board members, and board members' education have a positive impact, and dependent board and foreign board members have a negative impact on bank stability. Our findings show important evidence for an emerging country, such as Vietnam. From the empirical results, the authors suggest several recommendations to maintain and enhance bank stability in the future time.
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Multi-establishment firms (MEFs) rely on digitized processes enabled by advanced IT infrastructure;however, environmental dynamism is a major influence on their operations. Environmental dynamism threatens the efficacy of current operations, requiring firms to evolve their processes. Firms’ IT infrastructure may catalyze or hinder their endeavors and performance as they respond to environmental dynamics. Little previous research has examined which IT infrastructure types are high-performing and whether their effects vary across environments. We investigate the impacts of IT infrastructure, examining microlevel implementation—the constitution of technical and human assets—across the establishments of a multi-establishment firm (MEF). Specifically, we use the notion of a dominant IT infrastructure to unravel the heterogeneity of IT infrastructure across establishments. We explore dominant IT infrastructures—technology, human, or both—and assess their impacts across environmental conditions. To test our hypotheses, we used a panel dataset from 2007 to 2009 comprising 355 unique firms. Our findings reveal that the impact of establishment-level IT infrastructure types on MEF performance is contingent on environmental dynamism. A technology-dominant IT infrastructure leads to greater MEF performance in less dynamic environments, while a human-dominant IT infrastructure leads to greater MEF performance in more dynamic environments. The MEF performance is enhanced through a combination of technology- and human-dominant IT infrastructures in more dynamic environments. We conclude by discussing the theoretical insights and managerial implications of our findings.
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COVID-19 refocused the importance of social responsibility awareness and social performance measurement of health care. Hospitals must carry out social accountability behaviors while still providing adequate facilities and services. However, any analysis of social performance still contains many ambiguities and can differ in its reference points depending on the nature of the different stakeholders. The study uses an explanatory study to measure the social performance of hospitals in Indonesia and examine the indicators and dimensions that influence social performance in hospitals the most. Data of 752 accredited hospitals were obtained from the Indonesian Commission on Accreditation of Hospital (ICAHO) in Indonesia. Data analysis was conducted using Structural Equation Model (SEM) methodology and SPSS AMOS software. The study found a significant and positive effect of environmental forces and information technology resources on social performance. Further, the study found that intrapreneurship (entrepreneurship efforts within established institutions) in hospitals mediated the effects of organizational architecture, environment forces, and information technology toward/in favor of social performance. This study contributes to improving the quality healthcare by demonstrating novelty for how social performance can be measured and better efforts adopted to produce more social value-based healthcare through the use of organizational architecture, environmental forces, and information technology.
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The present study inspects correlations among different industries' intention to tackle supply chain recovery challenges, and the correlations among diverse industries' desire to use supply chain 4.0 technologies. Primary data for the study have been accumulated through a structured questionnaire to elicit responses from supply chain managers and executives. To examine the obtained data, descriptive statistics, Cronbach alpha, exploratory factor analysis, and Kruskal-Wallis test were used. There is no significant relation among different industries' intention to tackle supply chain recovery challenges and to adopt industry 4.0 technologies. However, the Food and Beverage industry showed the highest level of intention to both tackle the impact of supply chain disruption, and adopt industry 4.0 technologies to ensure more resilient supply chain post Covid-19. This study is the very first attempt to identify the intention of different industries to adopt supply chain 4.0 technologies to combat challenges stem from the supply chain disruptions caused by COVID-19.
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The object of study is the importance of medical technology and healthcare delivery in the COVID-19 pandemic. The COVID-19 pandemic has caused many changes to the business, healthcare, and societal landscape. The changes have had varying effects on key industries, demanding them to realign to fit new pandemic-imposed environmental conditions. This study seeks to investigate the effects of the COVID-19 pandemic on medical device strategy and firm performance of company X, and to provide recommendations and insights on strategies to ensure continuity post-pandemic. A qualitative analysis of the results from nine interviews with associates regarding the effects of COVID-19 on firm performance and strategy at company X was explored. The findings from a thematic analysis of the interview data are reported and related to the study's research objectives. Findings showed that the COVID-19 pandemic forced company X to adjust its strategy to align it with the changing environment. However, the data showed that the unknown nature and uncertainty of the COVID-19 pandemic environment meant that the realignment of strategy to the prevailing dynamics was unique. This study's key findings indicate that COVID-19 strongly influenced financial performance, which influenced firm performance significantly. In addition, financial performance measures were found to have more impact than non-financial performance measures such as strategic performance. The main recommendation emanating from the study was to improve the organization's agility, versatility, and speed. This would be achieved through simplifying processes, streamlining decision-making, and enhancing speed in the market. Agility and versatility are necessary to overcome or take advantage of new developments from the pandemic and post-pandemic environment. This research study can assist medical enterprises in other countries to stream their services and align strategy to meet the dynamic environment caused by the COVID-19. [ FROM AUTHOR]
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Purpose – Supply chain disruptions have plagued firms since the advent of COVID-19 lockdowns. As a re-sult, supply chains remain unstable and dynamic. To better understand supply chain management during pe-riods of disruption, this study compares the impact of relational capital on ambidextrous innovation and firm performance between Korean and U.S firms. Design/Methodology/Approach – This study includes a sample of 200 Korean firms and 227 U.S firms. PLS-SEM is the statistical tool utilized with MICOM multigroup analysis. Findings – Korean and U.S. firms were found to be different on three different pathways indicating that open innovation and investment in supplier relations improve supply chain disruption orientation, exploration inno-vation, and firm performance Research Implications – Relationship capital can significantly improve supply chain management, innova-tion, and firm performance. Exploitation innovation is better for enhancing supply chain management in the short-term amid interruptions. © 2022, International Academy of Global Business and Trade. All rights reserved.
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Purpose: This study aims at the sudden outbreak of COVID-19, which had an unprecedented negative impact on the Chinese economy, with firms being affected most. Firms differ in terms of their specific internal environment, shaping their ability to respond to the outbreak, so the impact may also vary. Design/methodology/approach: In this paper Chinese listed firms are selected as samples to investigate the mediating effect of prior digital technology on the relationship between R&D (research and development) investment (funds and staff) and firm performance during the epidemic. Firm size and diversification are then introduced as moderating variables to explore the conditional mediating effect of digital technology. Findings: The results indicate that the higher the firm's prior R&D investment, the higher its digital technology level, and thus the stronger its resistance to the epidemic. Moreover, compared with large-scale firms, small-scale firms have the advantage of strategic flexibility to technological changes, which can help them accumulate experience from R&D activities for digital transformation, thus attenuating the negative impact of the COVID-19 on firm performance. Finally, the results also show that digital technology mediates more strongly between R&D investment and firm performance in diversified firms than in centralized firms. Originality/value: The study builds a mediation model to reveal the process mechanism through which R&D investment affects firm performance via digital technology. Firm size and diversification are then innovatively introduced as situational factors to build the moderated mediation model, which opens up a new perspective for understanding the effect of firm internal factors on the relationship between R&D investment, digital transformation and firm performance. © 2022, Emerald Publishing Limited.
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Purpose To cope with the existing pandemic situation and to be organizationally responsive, firms need to be strategically flexible, where they need to develop dynamic capabilities (DCs) by continuously reconfiguring their resource base. To address such challenges, firms heavily rely on information and communication technologies (ICT) because of advancement in disruptive technologies. This study aims to explore techniques used by higher education institutional (HEI) leaders to successfully address challenges posed by global disruption, i.e. COVID-19 with the help of advanced ICT software such as Zoom, Google Meet and Microsoft Teams. Design/methodology/approach A qualitative approach was adopted to explore strategic factors such as strategic flexibility (SF) and DC that disclose shortcomings in the current extant literature. A total of 15 interviews were conducted with heads of departments of HEIs in the United Arab Emirates. Data were analyzed using NVivo software. Findings The findings suggested three dimensions of SF (resources, operational and collaborative) and four dimensions of DC (strategic planning, innovative, adaptability and technological) for firms to adopt to be strategically flexible, where DC serves as building blocks of SF. Originality/value This research provides a framework as an avenue for future researchers and practitioners on how to strategically manage their resources and be strategically flexible in turbulent environment such as pandemics. Theory-based investigations on strategic capabilities and DC from resource-based perspective are still under-researched, emphasizing the need for theoretically based research on strategic responsiveness, especially during the times of environmental complexities such as COVID-19 pandemics. This research enriches strategic management research by exploring the important antecedents of organizational responsiveness, including SF and DC together with the support of human factor, i.e. leadership qualities of HEIs managers. This study, to the best of the authors' knowledge, is among the first to systematically explore main dimensions of DC and SF based on the resource-based theory of strategic management in the Middle Eastern context.
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Since the Covid-19 pandemic, the business organizations' performance has experienced great shocks, including Indonesian banking. This study aimed to investigate Indonesia's banking organizations' performance based on intellectual capital (IC), corporate governance (CG), and enterprise risk management (ERM) with competitive advantage (CA) mediation. It intended to develop a new model that could theoretically contribute to scientific civilization with practical implications for business, particularly the banking industry. Secondary data used was obtained from the Indonesia Stock Exchange (IDX). The sample comprised 185 observations consisting of 37 banks selected through purposive sampling, with the criteria of submitting annual report data for five consecutive years of observation (2016-2020). Data were analyzed using partial least squares structural equation modeling (PLS-SEM). The results showed that IC, CG, and ERM do not directly affect OP. However, IC and CG significantly affect CA, which significantly influences OP. CA indirectly mediates the effect of IC and CG on organizational performance (OP). These results confirmed a new model regarding the effect of IC and CG on OP mediated by CA. Therefore, the bank's OP could improve through IC and CG supported by CA. In line with this, the Indonesian banking sector should simultaneously improve IC, CG, and CA through strategic policies and approaches. The new model developed in this study could be adopted by taking the different fields and samples, other indicators, and using different analytical tools such as Lisrel.