AN EMPIRICAL INVESTIGATION OF IS STRATEGY AND IS CONTRIBUTION TO FIRM PERFORMANCE

Given the important impact that an IS strategy has on the potential value IS brings to an organization, we develop and test a model of IS Strategy and Performance. Our survey-based study provides strong evidence that firms with defined IS strategies perform better than those without defined IS strategies. Our study also provides evidence that the two IS defined strategies -- IS Innovator and IS Conservative -- contribute in very different ways to firm performance: the IS Innovator strategy contributes to strategic growth whereas the IS Conservative strategy contributes to firm efficiency. Organizations without a clearly defined IS strategy experienced a negative contribution of IS to firm performance. The different types of performance had differing affects on satisfaction with the IS department and satisfaction with the CIO such that CIOs overseeing an Innovator strategy experience lower satisfaction from their organizations than do CIOs overseeing a Conservative strategy. The lowest performance and satisfaction levels were seen in firms with no IS strategy. Firms with no IS strategy should realize the negative outcomes of such a lack of strategy and work to extricate themselves before a consistent pattern of investing in IS without clear organizational benefit develops

Exploring CRM effectiveness: an institutional theory perspective

This study identifies the potential contribution that institutional theory can make to understanding the success of marketing practices. Based on institutional theory, we argue that the effectiveness of marketing practices decreases when firms are motivated to adopt such practices under the influence of institutional pressures originating in firms' environments. However, alignment between a practice and a firm's marketing strategy may buffer against these negative effects. We apply these insights to the case of customer relationship management (CRM). CRM is considered an important way to enhance customer loyalty and firm performance, but it has also been criticized for being expensive and for not living up to expectations. Empirical data from 107 organizations confirm that, in general, adopting CRM for mimetic motives is likely to result in fewer customer insights as a result of using this practice. Our study suggests that institutional theory has much to offer to the investigation of the effectiveness of marketing practices

Productivity, Product Differentiation and Profitability: A Comparison between the Chemical and the Textile Industries in Greece

The purpose of this study is to investigate the relationship between the profitability of the firm and its Research and Development expenditures. We separate Research and Development expenditures in two main categories, Research and Development that focuses on the product differentiation and Research and Development, which concerns improvements in production process. The latter leads to a more efficient production, which can be measured by labour productivity. We estimate our model using cross section analysis and test the impact of the two aforementioned variables upon firm’s profitability. Our model was applied to Greek Chemical industry and to Greek Textile industry, for a data set of 124 enterprises of the chemical sector 139 enterprises in the textiles sector in the year 2001. Our findings support the positive influence of productivity on profitability is present in both manufacturing sectors, although not at an equal weight

The impact of knowledge management processes on organisational performance

Copyright @ 2012 ISEing.In today's increasingly competitive business environment, the use of knowledge to gain a competitive advantage has become a serious concern for all organisations. However, despite the increasing number of studies relating to Knowledge Management (KM) in developed countries, few studies have explored this issue within the context of developing countries. Moreover, some industries have been affected more acutely than others in the transition to a knowledge-based economy. Towards covering this gap, this study aims at investigating the impact of Knowledge Management processes on Organisational Performance (OP). In this paper, the authors propose a conceptual model through an in-depth investigation of the previous and current studies in the area of Knowledge Management and Organisational Performance. Through an extensive classification of Knowledge Management processes, the proposed model explores the impact of each Knowledge Management process on improving the level of Organisational Performance. It is envisaged that this model can play a role in guiding the process of Knowledge Management implementation in order to maximise the beneficial effects of Knowledge Management processes on Organisational Performance

Board of Directors’ Involvement in Strategic Decision Making Process: Definition and Literature Review.

Over the past few years, research in corporate governance has devoted increased attention to board of directors’ involvement in the strategic decision making process. But in spite of its growing interest, the literature provides theoretical pluralism and mixed empirical results. Indeed, the concept has not been well defined by past studies and there is no consensus about its operationalization. In this paper, we review the literature on board’s involvement in the strategic decision making process and question the definitions of this phenomenon and if an operational measure can be proposed for future research.Board of Directors; Strategic Decision Making Process; Board involvement; Corporate Governance.

An exploratory study of factors influencing make-or-buy of sales activities

Purpose This paper aims to explore how sales managers make resourcing decisions with particular focus on their perceptions of outsourcing. Design/methodology/approach This paper is based on in-depth interviews with 29 senior sales managers from a variety of industry sectors based in the UK. All had more than five years’ experience of making resourcing decisions. Findings The findings are that resourcing decisions are prompted by cost pressure, the need to access skills or to improve flexibility. Outsourcing preferences are strongly moderated by perceived reputational risk. Availability of suitable suppliers and the ability to manage outsourcing are also practical moderators. Research limitations/implications The sample was purposeful in identifying and accessing senior respondents in substantial companies with extensive experience, but it was not random. Practical implications Respondents reported a lack of information available when making resourcing decisions; the model proposed provides a framework by which sales managers can identify the factors which should be taken into account and the information they need to make objective evaluations of resourcing options. Originality/value It has been acknowledged in prior literature that there is relatively little outsourcing of sales activities. This is the first exploratory study of the perceptions of sales managers about resourcing options and the first conceptualisation of how sales resourcing decisions are made

Testing for linear and quadratic effects between price adaptation and export performance: The impact of values and perceptions

Managerial perceptions are essential in explaining strategic decisions. It is, therefore, surprising that despite the number of studies that have examined the impact of managerial characteristics in exporting, little research has been reported in the export literature that investigates the importance of managers' perceptions on strategic decisions and resultant performance outcomes. To address this gap in the literature, the authors examine the key determinants of managers' psychic distance as well as its influence on international pricing decisions, and this in turn, on the export performance of SMEs. We also examine the quadratic effects of price adaptation on export performance. This is particularly relevant since price adaptation and export performance have been assumed in the literature to have a linear relationship. The results show that managers' perceptions have a significant impact on pricing decisions and resultant performance outcomes. Our findings also indicate that price adaptation has an inverted U-shaped relationship with export performance

Resource determinants of strategy and performance: the case of British exporters

This study adopts the RBV of the firm in order to identify critical advantage-generating resources and capabilities with strong positive export strategy and performance implications. The proposed export performance model is tested using a structural equation modeling approach on a sample of 356 British exporters. We examine the individual as well as the concurrent (simultaneous) direct and indirect effects of five resource bundles on export performance. We find that four resources/capabilities: managerial, knowledge, planning, and technology, have a significant positive direct effect on export performance, while relational and physical resources exhibited no unique positive effect. We also find that the firm’s export strategy mediates the resource-performance nexus in the case of managerial and knowledge-based resources. The theoretical and methodological grounding of this study contributes to the advancement of export related research by providing better specification of the nature of the effects – direct or indirect – of particular resource factors on export performance

There is a link between work life balance culture and strategic competitive advantage

This paper suggests a linkage between work-life balance culture and competitive advantage through commitment and firm-specific human resources. The paper argues that a workplace culture supportive of employees balancing their work and non-work lives leads to their commitment to their organisation being higher. Higher commitment leads to a greater willingness to invest in the development of firm specific resources – such as developing certain intra-organisational competencies or idiosyncratic technical competencies. This greater level of firm specific resources then enables the firm to have a stronger competitive advantage. The paper argues theoretically for these relationships, reviewing the relevant empirical and theoretical literature and concludes with suggestions for practice and future research