Environmental Uncertainty and Positive Performance of Small Firms: The Roles of Key Mediators

This paper examines the positive impact of environmental uncertainty on performance through the mediating effects of strategic business activities, decision making style, relationships and strategic orientation. This research tests the various hypothesized relationships using a path model. A sample of 152 small firms is used to test the research model. Different variables affect a firm’s financial performance and explain about 31% of the variance. Strategic orientation is impacted by strategic business activities, relationships, and decision making style and these three variables explain over 45% of the variance. The results of the empirical analysis indicate overall support for the research model

Examining relational and resource influences on the performance of border region SMEs

At the U.S.-Mexico border, small and medium sized enterprises (SMEs) are embedded in dual natured institutional and cultural contexts that share common functional and morphological characteristics. In this context firms are challenged by moving from one organizing template to another as embedded network influences constrain and enhance strategic outcomes. We develop and test a model of the impact of embeddedness components including social capital, personal relations and economic interaction on firm outcomes. Our results indicate that these components combine to influence the development of valuable resources and firm adaptation. We find that resources and adaptation significantly relate to SME performance. © 2009 Elsevier Ltd. All rights reserved

Getting partners to take action: Influences on joint action in interfirm relationships

Purpose – The purpose of this paper is to understand the nature of joint action between firms, and to examine how interfirm linkages impact the development of information systems that impact joint action. The research also examines how economic dependence impacts joint action or joint activities between firms. While the importance of interfirm relations has been widely acknowledged, the relationships between buyers and suppliers can vary widely on the amount of joint action they undertake with each other. Design/methodology/approach – Using structural equation modeling, the authors test a model of influences on joint action that incorporates elements of social norms that develop between partners, their economic dependence on each other, and a coordination mechanism of shared information systems. Findings – The findings indicate that joint action is influenced indirectly by some elements of social exchange, and instead is directly impacted by economic dependence and information systems. Social norms, specifically commitment, do impact the development of shared information systems. Research limitations/implications – This is a single industry study of automotive parts and accessories firms. Care should be taken in generalizing these findings to firms in similar settings – relatively small suppliers to larger assemblers or manufacturers. Originality/value – The value of this research is to help understand the elements of interfirm relations, their impact on information systems, the overall impact of these on joint action or joint activities between firms, and the role of economic dependence

Overbidding in cross-border acquisitions: Misperceptions in assessing and valuing knowledge

Many firms competing across borders use acquisitions to gain the knowledge and capabilities that reside in target firms. Assessing and valuing knowledge in the international context is complex and frequently error-prone. The international acquisition literature has not adequately addressed the difficulties of valuing knowledge, the costs associated with acquiring knowledge, the factors behind escalating bids to acquire knowledge, and the impact of knowledge acquisitions on returns. We conceptually explore several key dimensions that influence the assessment and valuation of knowledge and develop propositions positing the effects of predictor variables and moderators on knowledge assessment and valuation in cross-border acquisitions. © 2012 Elsevier Inc