Linking CIO–CMO Communication and Product Innovation via Virtual Customer Environment Engagement: A Moderated Mediation Study

Intuitively, we would expect that CIO–CMO communication plays a minimal role in product innovation performance, because product innovation is primarily driven by firms’ market orientation, knowledge of customer needs and cross-functional integration among marketing, R&D and operations management. In a sharp contrast to this perspective, we propose that CIO–CMO communication increases product innovation performance through enhancing virtual customer environment (VCE) engagement. Such proposed effects are supported by two studies with different samples (i.e. MBA alumni in Study 1 and a representative sample in Study 2) and different performance measures (i.e. subjective ratings in Study 1 and objective sales data in Study 2). Furthermore, the effect of CIO–CMO communication on product innovation performance via VCE engagement is contingent upon two situational factors, namely marketing–IT integration policy and market uncertainty. The effect of CIO–CMO communication on product innovation performance via VCE engagement is positive and significant when marketing–IT integration policy is strong or when market uncertainty is high, but not when marketing–IT integration policy is weak or when market uncertainty is low. Theoretical contributions and managerial implications of these findings are discussed, especially on how managers can capitalize on CIO–CMO communication and VCE engagement to enhance the success of new product innovation.     

Intra-regional sales,product diversity,and the performance of merchandising multinationals

This study examines the relationship between intra-regional sales, product diversity, and performance of 45 merchandising firms using data from 1997 to 2003. The interaction effects between product diversity and intra-regional sales on performance are explored, using a curvilinear relationship. The analysis integrates three main theories, namely the resource-based view, transaction costs, and organization learning theory. The models measuring a firm's performance by return on assets (ROA) and return on sales (ROS) show that at high levels of intra-regional sales, small levels of product diversity can generate greater return to a firm but high levels of product diversity may hurt a firm's performance. Higher levels of intra-regional sales tend to improve a firm's performance and enhance the impact of product diversity on performance.     

Relationships between Sales Management Control, Territory Design, Salesforce Performance and Sales Organization Effectiveness

This research evaluates determinants of sales organization effectiveness in a sample of British companies, and contributes to an important new research stream by following recent empirical studies in the USA and Australia. We discuss a model of sales organization effectiveness determined by salesforce outcome performance and behavioural performance, as well as by the use of a behaviour-based control approach. Sales territory design is also considered as a particularly important managerial variable, which has received little analytical attention in the traditional literature, but which appears to be an important influence on the effectiveness of the sales operation. Our exploratory path analytical model suggests that sales territory design has a large effect on sales organization effectiveness both directly, and indirectly through its relationship with salesforce behavioural performance. These findings are somewhat different to those in similar studies in other countries, and suggest some important implications for managers as well as for researchers in this field.     

Production Competence and Business Strategy: Do They Affect Business Performance?

The purpose of this article is threefold. First, a comprehensive measure of production competence that assesses the level of support that manufacturing provides for the strategic objectives of a firm is developed. Second, hypotheses relating production competence to several financial measures of business performance are tested using data from a large sample of firms (n=65) in the furniture industry. Third, the impact of business strategy both directly on performance and as a moderating variable in relation to production competence is analyzed. The results of the study suggest that production competence may have more of an effect on business performance for certain strategies than for others.     

Systems Collaboration and Strategic Collaboration: Their Impacts on Supply Chain Responsiveness and Market Performance*

Recognizing the importance of interfirm collaboration and recent advancement of information technology (IT) to enhance joint decision making between firms, this study conceptualizes systems collaboration and strategic collaboration as two essential types of interfirm collaboration. The study then simultaneously examines the multiple roles of systems collaboration and strategic collaboration, and how they directly and indirectly influence a firm's supply chain responsiveness and market performance. Hypotheses are tested on survey data collected from 184 firms. Results suggest that the sequential relationships among IT competency, interfirm collaboration, and supply chain responsiveness have significant market performance implications.     

Self-Efficacy Beliefs and Sales Performance

Self-efficacy theory predicts that people will perform better when they believe they have the skills necessary for success. It also suggests, however, that believing in long-term rewards for success ("response-outcome expectations") does not correlate with adequate performance. This paper supports the generality of self-efficacy theory and provides evidence that self-efficacy beliefs predict insurance sales performance, whereas response-outcome expectations did not. A questionnaire was developed to measure self-efficacy beliefs and response-outcome expectations using 200 insurance sales representatives. Regression analyses were computed on a different sample of 97 insurance sales representatives using four separate dependent variables (calls-per-week; number of policies sold; sales revenue and a composite performance index on which actual sales commission was based). (1) These analyses established a correlation (but no causal relationship) between self-efficacy beliefs and sales performance. (2) The generality of self-efficacy theory in a business setting is suggested by the relationship between self-efficacy and objective measures of sales performance. (3) The relevance of these results, and the importance of integrating them into the practice of organizational behavior modification is discussed.     

Conformance and performance roles of bank boards: The connection between non-performing loans and non-performing directorships

This study evaluates how non-performing loans and different types of board turnover—which we link to performing directorship (natural turnover) and non-performing directorship (forced turnover)—impact the economic performance (ROA) of banks. The proposed model and hypotheses, based on the conformance and performance roles of boards, are tested on a rich sample that includes all banking firms operating in Costa Rica between 2000 and 2012. The results indicate that the negative effect of non-performing loans on ROA is significantly greater in banks with non-performing directorship associated with high rates of unexpected changes in the board. The findings of the study highlight that the competence of boards matters. The results also give evidence of the importance of balancing financial and non-financial goals if superior governance and economic performance are the objectives pursued by organisations.     

The Alignment between Organizational Critical Success Factors and Information Technology Capability in Academic Institutions*

Alignment between organizational critical success factors (CSFs) and competencies is widely believed to improve performance. This study examines the performance implications of alignment between CSFs and one source of competence, the organization's information technology (IT) capability. The effects of three antecedent factors–environmental uncertainty, integration, and IT management sophistication–are also examined. This paper uses survey data from 244 large academic institutions, along with some secondary data. Following the profile deviation approach to measure alignment, the academic institutions are divided into three clusters based on their CSFs: the academic comprehensives, the reputed giants, and the small educators. The ideal profile of IT capability is next developed for each cluster in terms of four dimensions: information retrieval, electronic communication, computing facilities for students, and computer-aided education. Alignment is then computed for each institution as the proximity of its IT capability profile from the ideal IT capability profile for the cluster to which it belongs. The results suggest that alignment facilitates both perceived IT success and organizational performance. Moreover, sophisticated IT management facilitates both alignment and perceived IT success, environmental uncertainty facilitates perceived IT success but not alignment, and integration facilitates neither alignment nor perceived IT success.     

Impact of Value‐Added Service Features in e‐Retailing Processes: An Econometric Analysis of Web Site Functions

We examine the impact of three classes of Web site functions (foundational, customer‐centered, and value‐added) upon e‐retailer performance. Using secondary panel data for 2007–2009 on operating characteristics of over 600 e‐retailers, our econometric analysis finds that only the value‐added service functions are positively associated with changes in e‐retail sales revenues across time. We also observe a decreasing marginal impact of deploying additional value‐added service features. To account for possible alternate explanations, we control for firm‐ and time‐specific fixed effects, merchant types, merchandise categories, and order fulfillment strategies. By further decomposing e‐retail sales revenues into Web site traffic, conversion rate, and average order value, we find that Web site functions affect e‐retail sales revenues mainly through their impact on Web site traffic. Our investigation demonstrates the empirical research usefulness of the Voss conceptual e‐service sand cone model. Our results identify for managers where to focus ongoing e‐retailing system development efforts, yet suggest that focusing too many retailing capabilities on exploratory and experimental value‐added service features may backfire, potentially leading to worsening e‐retailer performance.     

Performance and burnout in intensive care units

Abstract

The relationship between three different performance measures and burnout was explored in 20 Dutch Intensive Care Units (ICUs). Burnout (i.e. emotional exhaustion and depersonalization) proved to be significantly related to nurses' perceptions of performance as well as to objectively assessed unit performance. Subjective performance measures relate negatively to burnout levels of nurses, whereas an objective performance measure relates positively to burnout. Furthermore, subjectively assessed personal performance (i.e. personal accomplishment) is more strongly related to burnout than subjectively assessed unit performance. A model test of the relationship between both types of subjective performance and burnout reveals that nurses' perception of unit performance is indirectly related to burnout through perception of personal performance. This model holds similarly for objectively well- and poor-performing ICUs.     

How and when a salesperson's perception of organizational politics relates to proactive performance

Politics in the workplace is a reality of organizational life. Several studies have investigated the negative implications of perceived organizational politics on various work attitudes and performance measures but not on proactive performance. However, proactive performance is important in a sales context because salespeople operate in an uncertain environment, and some task aspects cannot be formalized. Moreover, there is still a need for research to analyse the psychological mechanisms that lead perceived organizational politics to cause negative reactions from employees as well as to provide new insights on the boundary conditions of this process. Therefore, we examine the effect of perceived organizational politics on proactive performance through a salesperson's trust in the sales manager, as well as the moderating role of the salesperson's experience.This study uses dyadic data from 192 salespeople and their sales managers from a range of industries. The model entails a moderated mediation process. Results support the proposed model. The findings contribute to the salesforce management literature by suggesting the need to consider the importance of perceived organizational politics and by aiding in the understanding of how and when it hinders proactive performance.     

Impact of Information Technology Integration and Lean/Just‐In‐Time Practices on Lead‐Time Performance*

Managers seeking to improve lead‐time performance are challenged by how to balance resources and investments between process improvement achieved through lean/just‐in‐time (JIT) practices and information technology (IT) deployment. However, extant literature provides little guidance on this question. Motivated by both practical importance and lack of academic research, this article examines empirically the relationships among interfirm IT integration, intrafirm IT integration, lean/JIT practices, and lead‐time performance using data from IndustryWeek's Census of Manufacturers ( IndustryWeek, 2006 ). The results provide several new insights on the relationship between IT integration and lean/JIT practices. First, the study confirms that implementing lean/JIT practices significantly reduces lead time. Second, lean/JIT practices mediate the influence of IT integration on lead‐time performance. This suggests that process improvements that result from lean/JIT practices are important contributors to the success of IT integration. Even companies that have experienced success in reducing lead time through lean/JIT practices may benefit from IT integration practices such as those embodied in enterprise resource planning systems. The findings provide managers with empirical evidence and a theoretical framework on the balance between lean/JIT and IT for effecting improvement in lead‐time performance, thus offering practical guidance on this important question. Future research is needed to extend the lean/JIT practices in this study to supply chain practices and explore the relationship between supply chain practices and IT integration.     

Fit between sourcing capabilities and organisational structure on IT outsourcing performance

Thus far, relatively few studies on the supplier side of Information Technology (IT) outsourcing arrangements have been based on empirical quantitative research. Previous research identified a recurring supplier problem, a lack of sustainability in IT performance. The literature revealed that a supplier's capabilities and organisational structure affect the supplier performance. We hypothesise that realising a fit between the necessary sourcing capabilities and organisational structure on the IT supplier side will result in a sustainable sourcing performance. We executed a survey research among employees involved in sourcing activities of three different IT outsourcing suppliers (N?=?135). The results from our analysis provide evidence that these constructs can be used to analyse differences between the three types of service suppliers. Results indicate that suppliers who focus on establishing a fit are more willing or able to monitor if they achieve a sustainable performance.     

Exploring the Importance of Business Clockspeed as a Moderator for Determinants of Supplier Network Performance*

As the importance of supplier networks becomes increasingly recognized as a vital factor to company performance, researchers and practitioners alike are focusing their attention on this subject. The study's main objective is to test the specific hypotheses that effective use of Information Technology (IT) and the depth of company relationships with suppliers are directly related to Supplier Network (SN) performance, and that industry clockspeed moderates these relationships. A convenience sample of 135 manufacturing organizations was used to empirically test these hypotheses. Our results indicate that clockspeed does moderate the relationship between IT use effectiveness and supplier network performance. The same is true in the case of supplier relations depth, and hence, managers are encouraged to pay attention to the items comprising network performance as a determinant of supplier network performance.     

Examining the Antecedents and Consequences of CIO Strategic Decision‐Making Authority: An Empirical Study*

Despite the strategic importance of information technology (IT) to contemporary firms, chief information officers (CIO) often still have varying degrees of strategic decision‐making authority. In this study, we apply the theory of managerial discretion to define CIO strategic decision‐making authority and argue that the CIO's level of strategic decision‐making authority directly influences IT's contribution to organization performance. We also draw on the power and politics perspective in the strategic decision‐making literature to identify the direct antecedents to the CIO's strategic decision‐making authority. A theoretical model is presented and empirically tested using survey data collected from a cross‐industry sample of 174 matched pairs of CIOs and top business executives through structural equation modeling. The results suggest that organizational climate, organizational support for IT, the CIO's structural power, the CIO's level of strategic effectiveness, and a strong partnership between the CIO and top management team directly influence the CIO's level of strategic decision‐making authority within the organization. The results also suggest that the CIO's strategic decision‐making authority in the organization directly influences the contribution of IT to firm performance and that effective CIOs have a greater influence on IT's contribution when provided with strategic decision‐making authority.     

The Effect of Board of Directors’ IT Awareness on CIO Compensation and Firm Performance

Chief information officers (CIOs) play increasingly strategic roles in firms in this competitive global economy, which is now largely powered by information technology (IT). However, research has shown a lack of board of directors’ oversight on CIO‐ and IT‐related issues. Drawing on agency, resource dependence, and alignment theories, we investigate the effect of board of directors’ IT awareness on CIO compensation structure and firm performance. We conduct cross‐sectional time series analyses of data collected from various sources. Our study underlines three important findings. First, we show that some commonly known executive compensation determinants, such as individual characteristics and governance structure, do not have significant effects on CIO compensation structure. Second, with regard to CIO compensation structure, firms respond to increasing information asymmetry differently according to the level of IT awareness of their boards. Finally, firms perform better when their boards have higher levels of IT awareness, and this positive effect of IT awareness is considerably larger in IT intensive industries. Overall, our study provides empirical support for the important role of boards’ IT awareness in shaping CIO compensation and improving firm performance. Our results suggest that boards with functional area knowledge—or higher IT awareness in this case—can more effectively monitor and better incentivize executives, and consequently lead to better firm performance.     

Measuring Organizational Performance: A Case for Subjective Measures

We review the organizational performance (OP) measurement literature highlighting the limitations of both objective and subjective measures of performance. We argue that, with careful planning, subjective measures can be successfully employed to assess OP. This is because often consistent, reliable and comparable compatible objective data on OP measures – particularly across countries and sectors – is difficult to come by. Considering that an inflated OP measure can be cross‐checked with the use of secondary data, managers have little incentive to report such figures. As a result, when quizzed over the stand‐alone performance measures of their organizations or vis‐à‐vis their rivals, managers accurately assess and respond to questions on the performance of their organizations. An in‐depth statistical exercise conducted on the subjective measures of OP as reported by managers of four sets of companies in four separate countries, show consistent results, thus lending support to this premise.     

Performance analysis of serial supply chain networks considering system disruptions

The supply chain networks could be very fragile in global environment due to unexpected events such as emergencies, normal disruptions and industrial accidents. The supply chain members may lose their production capacities temporarily, which might have significant impacts on the performance of the whole supply chain network. This article proposes a discrete time model to characterise the unreliable production capacity in serial supply chain networks. Based on the proposed model, the exact probability distributions are available for the performance analysis of a single-stage system in the lost sales scenario. The iterative methods are developed to derive the approximate performance measures for single-stage systems in the backorder scenario and multi-stage systems in both the lost sales and backorder scenarios. The proposed methods are verified through a series of numerical experiments. The analysis results suggest that the performance of the supply chain network suffers more from the downstream-stage unreliability than the upstream-stage unreliability. Furthermore, some application examples are illustrated to show the possible solutions for practical problems.     

Can information technology enable profitable diversification? An empirical examination

Investments in information technology (IT) are now a major part of corporate investment, and the management of IT is essential to performance. In general, IT is expected to have performance effects when it is judiciously used to complement existing corporate capabilities. In this research, we examine how IT can complement diversification strategy. Using hypotheses and measures suggested by information processing theory and the theory of corporate strategy, testable hypotheses are derived to examine how IT can complement diversification. Results suggest that spending on computer technology significantly complements a strategy of unrelated diversification. Implications for theory and practice are discussed.     

The learning organization and its dimensions as key factors in firms' performance

Managerial responses to the Dimensions of the Learning Organization Questionnaire^© together with both perceptual and objective measures of firms' financial performance were analysed. Multiple regression equations were developed to examine the relationship between overall learning organization score and the performance variables return on investment (ROI), return on equity (ROE), earnings per share (EPS), net income per employee and percentage of sales from new products. The results of the study suggest that there is a positive relationship between learning organization behaviours and business performance.