Rationality in Strategic Decision Processes, Environmental Dynamism and Firm Performance

Priem, Richard L.; Rasheed, Abdul M. A.; Kotulic, Andrew G.

doi:10.1177/014920639502100506

Cited by 245 publications

(89 citation statements)

References 52 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Environmental dynamism has been also investigated on the relationship between insider ownership and firms' performance (Li and Simerly, 1998). It also had a moderating effect on the relationship between managers' rationality and firm's performance (Priem et al, 1995). In the supply chain and operations management literatures, dynamism, the degree of changes in product design, technology, and customer preferences has been viewed as relationship perspective between supply chain networks.…”

Section: H1-3: Munificence Positively Affects Integration With Custommentioning

confidence: 99%

Assessing the impact of business uncertainty on supply chain integration

Kim

Chai

2016

The International Journal of Logistics Management

View full text Add to dashboard Cite

If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractPurpose: The main objective of this study is to investigate how business uncertainty affects the implementation of supply chain integration. More importantly, this research divides business uncertainty into four dimensions and supply chain integration into three dimensions to examine the role of each dimension. In addition, it investigates the moderating effects of manufacturing approaches, such as push and pull, in the relationship between supply chain integration and performance.Design/Methodology/Approach: Through a structured survey, this study collected 259 responses from supply executives, and supply and purchasing managers of US manufacturing firms. The empirical data analysis was done by using the partial least squares technique. Findings:The results empirically support the findings that business uncertainty positively affects implementation of supply chain integration. Among the four dimensions of business uncertainty, dynamism and hostility significantly affect implementation of internal integration, integration with suppliers, and integration with customers. In addition, manufacturing approaches, such as push and pull, have a moderating effect on the relationship between supply chain integration and performance. Research limitations/Implications:This study collected survey responses from a manufacturing firm in the supply chain to assist managers to find a solution while dealing with business uncertainty through the implementation of supply chain integration. It also emphasizes manufacturing approaches, such as push and pull, in implementing supply chain integration to improve performance. Thus, supply and purchasing managers should consider the business uncertainty that they are dealing with while developing their supply chain strategy.Originality/Value: To the best of our knowledge, this study is the first to provide meaningful insights on the effects of supply chain integration toward dealing with business uncertainty. More importantly, by dividing the dimensions of business uncertainty and supply chain integration, this study presents empirical evidence of the significant role of supply chain practices in uncertain business conditions. In addition, this study add...

show abstract

Section: H1-3: Munificence Positively Affects Integration With Custommentioning

confidence: 99%

Assessing the impact of business uncertainty on supply chain integration

Kim

Chai

2016

The International Journal of Logistics Management

View full text Add to dashboard Cite

show abstract

“…The literature provides strong support for the technique of subjective performance measurement (e.g. Dess and Robinson, 1984;Pearce et al, 1987;Priem et al, 1995;Brews and Hunt, 1999). The measurement scales that we used in this study are shown in the Appendix.…”

Section: Execution Of the Surveymentioning

confidence: 99%

Business‐level strategy and performance

Nandakumar

Ghobadian

O’Regan

2010

Management Decision

126

View full text Add to dashboard Cite

PurposeThis study aims to examine the moderating effects of external environment and organisational structure in the relationship between business‐level strategy and organisational performance.Design/methodology/approachThe focus of the study is on manufacturing firms in the UK belonging to the electrical and mechanical engineering sectors, and respondents were CEOs. Both objective and subjective measures were used to assess performance. Non‐response bias was assessed statistically and appropriate measures taken to minimise the impact of common method variance (CMV).FindingsThe results indicate that environmental dynamism and hostility act as moderators in the relationship between business‐level strategy and relative competitive performance. In low‐hostility environments a cost‐leadership strategy and in high‐hostility environments a differentiation strategy lead to better performance compared with competitors. In highly dynamic environments a cost‐leadership strategy and in low dynamism environments a differentiation strategy are more helpful in improving financial performance. Organisational structure moderates the relationship of both the strategic types with ROS. However, in the case of ROA, the moderating effect of structure was found only in its relationship with cost‐leadership strategy. A mechanistic structure is helpful in improving the financial performance of organisations adopting either a cost‐leadership or a differentiation strategy.Originality/valueUnlike many other empirical studies, the study makes an important contribution to the literature by examining the moderating effects of both environment and structure on the relationship between business‐level strategy and performance in a detailed manner, using moderated regression analysis.

show abstract

“…Yet, as we shall show below, the existence of universal cognitive biases in all humans and in all leaders and managers -and yes, risk analysts -means that much decision-making is fundamentally flawed (Richard L. Priem, 1995). This has not been addressed at all in the classical risk canon.…”

Section: Ignores Decision-making Biasesmentioning

confidence: 99%

Risk Management and Behavioral Finance

Prince¹

2018

FMIR

View full text Add to dashboard Cite

Risk management is still dated in concept. It assumes a compliance approach. Current risk management approaches have failed in predicting both macro-economic and micro-economic setbacks and disasters. This is because financial metrics, the basis for modern risk metrics, are actually a lagging indicator of risk, not a leading indicator. Risk management needs a new paradigm which is based on leading indicators and which can therefore predict such problems. Behavioral finance provides the framework for a new paradigm for risk management.The article sets out such a new paradigm. It is based on a distillation of cognitive biases used in behavioral economics and finance. It shows how these can be used to categorize risky financial behaviors according to differing levels of risk. These various levels of risk can be linked directly to financial and valuation outcomes. This provides us with a new way to measure and predict risk based on a behavioral approach. Since behavior is a leading indicator of risk this provides a new approach which takes into account behaviors which are normally not captured in risk approaches. This opens up a new discipline of behavioral risk management. This is needed to correct for the lack of behavioral data in current approaches.

show abstract

Rationality in Strategic Decision Processes, Environmental Dynamism and Firm Performance

Cited by 245 publications

References 52 publications

Assessing the impact of business uncertainty on supply chain integration

Assessing the impact of business uncertainty on supply chain integration

Business‐level strategy and performance

Risk Management and Behavioral Finance

Contact Info

Product

Resources

About