Organizational Capabilities, Strategic Management Accounting and Firm Performance

From a resource-based view perspective, the paper provides empirical evidence on new emerging strategic management accounting (SMA), its association with organizational capabilities (market orientation, entrepreneurship, innovativeness and organizational learning) and the interlinkages among these four elements of organizational capabilities. Partial least squares (PLS) technique was used to test the contingency model. Using the mail survey data of 103 manufacturing strategic business units (SBUs) of public listed companies in Malaysia, the results found that the four organizational capabilities - market orientation, entrepreneurship, innovativeness and organizational learning - collectively give rise to positional advantage leading to enhanced firm performance. SMA techniques are found to support the internal organizational capabilities. However, SMA USAge is not associated with firm performance, indicating that the mediation role of SMA USAge on the relationship between organizational capabilities and firm performance is not supported. The results confirm that a firm can attain above average performance if it possesses and emphasizes the four organizational capabilities collectively and these four organizational capabilities collectively are also important to support the USAge of SMA techniques which can provide useful information for improvement of internal capabilities as well as resource allocation and utilization

Organizational capabilities and industry dynamics: a computational model.

In this paper we propose a model of bounded rational organizations that addresses the role of organizational capabilities in shaping firm size, growth rates and profitability. Our approach aims at reconciling the logic behind stochastic models of firm growth with the notion of organizational capabilities as drivers of economic performance. We extend the stochastic framework by incorporating behavioural assumptions on: (a) the interactions between the firm and the business environment; and (b) the mechanism by which firms sense and seize business opportunities. In our perspective, the degree of concurrence between the substance and organization of the firm and the context in which it operates will directly influence its profitability and indirectly (through costly mutations of the organizational structure) drive its growth. Despite its simple nature the model is able to capture well known regularities about industry dynamics. It generates firm size distributions that are skewed and heterogeneous across different scenarios. Moreover, our results suggest that the higher the selective power of the firm's organizational capabilities, the more the steady state distribution deviates from a log normal. Besides, the distribution of growth rates has a tent-shaped form which is consistent with the pattern described in empirical studies. The distribution of opportunities per firm is also skewed suggesting that a very few entities account for a large fraction of business opportunities arising throughout the simulation period. Finally, the interaction between the external environment and the internal structure of the firms also influences the heterogeneity in the value of the opportunities they capture.organizational capabilities; firm size distribution; growth rates; simulation model

Relational Contracts and Organizational Capabilities

A large literature identifies unique organizational capabilities as a potent source of competitive advantage, yet our knowledge of why capabilities fail to diffuse more rapidly—particularly in situations in which competitors apparently have strong incentives to adopt them and a well-developed understanding of how they work—remains incomplete. In this paper we suggest that competitively significant capabilities often rest on managerial practices that in turn rely on relational contracts (i.e., informal agreements sustained by the shadow of the future). We argue that one of the reasons these practices may be difficult to copy is that effective relational contracts must solve the twin problems of credibility and clarity and that although credibility might, in principle, be instantly acquired, clarity may take time to develop and may interact with credibility in complex ways so that relational contracts may often be difficult to build

Innovation Options and Organizational Capabilities

Organizational capabilities, whether in product development, efficient production, or market access, provide firms with opportunities to achieve and maintain strategic advantages over competitors. Recently, many researchers have argued that certain organizational capabilities add to a firm’s value in the form of its yet-to-be realized opportunities for profitable investments. But do such capabilities help all firms and under all conditions? The objective of this paper is to develop a model that helps us better understand the factors that influence the value of future growth opportunities for the firm and the organizational capabilities required to realize those opportunities

The Influence of Enterprise Resource Planning (ERP) Implementation System on Company Performance Mediated by Organizational Capabilities

Research aims: This study aims to examine the effect of Enterprise Resource Planning (ERP) system implementation on company performance with organizational capabilities as a mediating variable.Design/Methodology/Approach: This research is a quantitative study using 117 samples of manufacturing companies listed on the IDX from 2013 to 2018. Analysis and testing in this study employed SEM-PLS to test the effect of Enterprise Resource Planning (ERP) system implementation on company performance with organizational capabilities as a mediating variable.Research findings: The results showed that the ERP system's implementation had a significant positive effect on company performance and organizational capabilities. Organizational capabilities also had a significant positive effect on company performance. Besides, it was found that organizational capabilities mediated the relationship between ERP system implementation and company performance.Theoretical contribution/Originality: This study utilized a cybernetics approach theory, Resource-Based View (RBV) theory, and organizational capabilities theory to investigate the mediating role of organizational capabilities in increasing the impact of ERP systems on company performance.Practitioner/Policy implication: This study provides evidence that ERP implementation makes an integrated operating system and can increase organizational capabilities by utilizing existing resources, and ultimately will also increase company performance.Research limitation/Implication: In this research, it is challenging to find organizational capability measures, such as marketing capability and process improvement. This study only used one intervening variable so that the information obtained from the results is still limited

The design and sequencing of trade and investment policy reform : an institutional analysis

This paper analyzes from an institutional perspective the experiences of twelve countries with selected aspects of trade and investment policy reform. The analysis highlights two distinct but related determinants of the appropriate design of policy reform - the organizational capabilities of government bureaucracies, and the political flexibility of governments. There exists considerable variations among countries in their organizational capabilities and in their political commitment to change. It follows that the appropriate mix and sequence of policy reforms will be quite different. The design of lending programs supported by the World Bank should respond to these differences between countries.Environmental Economics&Policies,Trade and Regional Integration,Economic Theory&Research,TF054105-DONOR FUNDED OPERATION ADMINISTRATION FEE INCOME AND EXPENSE ACCOUNT,Enterprise Development&Reform

Transferring Collective Knowledge: Collective and Fragmented Teaching and Learning in the Chinese Auto Industry

Collective knowledge, consisting of tacit group-embedded knowledge, is a key element of organizational capabilities. This study undertakes a multiple-case study of the transfer of collective knowledge, guided by a set of tentative constructs and propositions derived from organizational learning theory. By focusing on the group-embeddedness dimension of collective knowledge, we direct our attention to the source and recipient communities. We identify two sets of strategic choices concerning the transfer of collective knowledge: collective vs. fragmented teaching, and collective vs. fragmented learning. The empirical context of this study is international R&D capability transfer in the Chinese auto industry. From the case evidence, we find the expected benefits of collective teaching and collective learning, and also discover additional benefits of these two strategies, including the creation of a bridge network communication infrastructure. The study disclosed other conditions underlying the choice of strategies of transferring collective knowledge, including transfer effort and the level of group-embeddedness of the knowledge to be taught or re-embedded. The paper provides a group-level perspective in understanding organizational capabilities, as well as a set of refined constructs and propositions concerning strategic choices of transferring collective knowledge. The study also provides a rich description of the best practices and lessons learned in transferring organizational capabilities.knowledge transfer, collective knowledge, organizational capabilities, R&D capabilities, organizational learning, network, China

Relationship between Market Orientation and Firm Performance: The Mediating Role of Organizational Capabilities in Family Business

This paper aimed to understand how market orientation affectsfamily business performance that can build organizational capabilities in changingand emerging market. This research is based on a survey of 840 participants fromfamily businesses in Turkey. The findings revealed that market orientationpositively contributed to organizational capabilities. Another purpose of the study isthe mediating effects of organizational capabilities on the association betweenmarket orientation and firm performance. So, findings showed that entrepreneurialcapability is significantly mediated. As a result, all hypotheses revealed in theresearch are supported