• Title/Summary/Keyword: Environmental Dynamism

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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
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    • v.7 no.9
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    • pp.527-536
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    • 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 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
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    • v.17 no.2
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    • pp.31-54
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    • 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.

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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
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    • v.28 no.4
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    • pp.27-62
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    • 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 Effects of Environmental Dynamism on the Dissolution Intention (환경의 동태성이 관계해지의도에 미치는 영향)

  • Kang, Boy-Yeon;Oh, Se-Jo
    • Journal of Distribution Research
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    • v.10 no.1
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    • pp.85-106
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    • 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.

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The Impact of Environmental Characteristics on Electronic Commerce Performance

  • Cho, Se-Hyung
    • Proceedings of the Korea Society of Information Technology Applications Conference
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    • 2005.11a
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    • pp.357-360
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    • 2005
  • Domestic enterprises are surveyed and analyzed to find the empirical relationship between environmental characteristics and electronic commerce(EC) performance. Dynamism, hostility and heterogeneity are selected as environmental characteristics. EC performance is articulated as EC utilization, EC satisfaction and EC usefulness. Empirical test presents that dynamism has a statistically significant relationship with EC performance except EC usefulness, but hostility and heterogeneity have no statistically significant relationship with EC performance. The impact of industry type on environmental characteristics and EC performance is also tested.

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The Effect of IT Utilization Level on Organizational Performance: The Differences among Large, Medium and Small-sized Enterprises (대.중.소규모 기업 간 정보기술 활용수준이 조직성과에 미치는 영향의 차이)

  • Cho, Se-Hyung
    • Journal of Korea Society of Industrial Information Systems
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    • v.14 no.4
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    • pp.183-197
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    • 2009
  • The purpose of this paper is to study whether there are differences in the relationship between IT utilization level and organizational performance among large, medium and small-sized enterprises. This study first assessed the immediate influence of IT utilization level on organizational performance, and then further examined the moderating effects of the organizational size and the environmental dynamism that had influences on the relationship between IT utilization level and organizational performance. The empirical test revealed that IT utilization level had significant impact on organizational performance in case of all sized enterprises. But, the sub-group analysis revealed that IT utilization level had no statistically significant impact on organizational performance in case of large enterprises despite of higher IT utilization level than small and medium-sized enterprises. The relationship between IT utilization level and organizational performance was not moderated significantly by environmental dynamism in case of all sized enterprises. But, the sub-group analysis revealed that environmental dynamism had significant moderating effect on the relationship between IT utilization level and organizational performance in case of large and small-sized enterprises when there was a high level of environmental dynamism.

An Empirical Study on the Blue Ocean New Product Development Strategy (블루오션 신제품개발 전략에 관한 실증연구)

  • Kim, Ji-Dae
    • Journal of Technology Innovation
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    • v.15 no.1
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    • pp.27-63
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    • 2007
  • Recently, Kim and Mauborgne (2005a) has introduced the concept of blue ocean strategy that provides quantum leap in value innovation, thus creating new market space. This study, based on the blue ocean strategy concept, suggests blue ocean new product development strategy, and attempts to examine how much impact this blue ocean new product development strategy has on new product performance, compared to existing new product development strategy perspectives based on competitive strategy-based new product development strategy and resource-based new product development strategy, in an empirical way. The research results show that the blue ocean new product development strategy has a statistically significant impact on new product performance. In addition, it was revealed that such contingency variables as firm size and environmental dynamism have moderating effect on the relationship between the blue ocean new product development strategy and new product performance. The blue ocean new product development strategy is more effective in the small-sized firms than the large-sized ones, and its effect on new product performance is different according to environmental dynamism.

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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
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    • v.17 no.10
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    • pp.1253-1262
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    • 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.

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
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    • v.12 no.4
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    • pp.345-353
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    • 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.

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;O, Se-Jo;Seong, Min
    • Proceedings of the Korean DIstribution Association Conference
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    • 2007.08a
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    • pp.159-186
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    • 2007
  • In today's world, the ability to adapt to the rapidly changing environment is fundamental to the survival and success of any organizations. This is particularly true for the Korean retailing industry which is in the throe of sweeping developments. Against the backdrop of an increasing importance of the environmental factors, it is imperative to look into what efforts are required of corporate enterprises in order to achieve successful long-term partnerships between and among the parties involved in the retail value chain. In spite of the critical importance of the need to understand the environmental factors and their influences on the retail value chain, a serious theoretical and empirical study into this subject has never been conducted. Moreover, previous research has overlooked the various mechanisms influencing the value chain in terms of ,control strategy' and 'control structure'. 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. The survey results show that environmental dynamism has a positive correlation with the opportunism of suppliers. In addition, the control mechanisms such as monitoring and incentives employed by retailers, in turn, have an indirect influence on the opportunism of suppliers. In other words, the monitoring of retailers has a positive correlation with the opportunism of suppliers, while the use of bureaucratic structuring has a negative correlation with opportunism. 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.

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