The Impact of Antecedent Variables on Strategic Renewal Capability : An Empirical Investigation of Software Businesses in Thailand
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Published:
Dec 25, 2017
Keywords:
Strategic Renewal Capability Forward-Looking Vision Learning Utilization Resources Complementarity Technology Growth Market Change
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Abstract
Strategic renewal capability has been viewed as one of the key components that influence organizational outcomes. The objective of this study is to investigate five influential variables on strategic renewal capability; forward-looking vision, learning utilization, resources complementarity, technology growth and market change. In this research, 156 software businesses in Thailand were chosen as a target population for this study. Data were collected and analyzed in the formulation of hypotheses and the hypothesized relationships among variables were then examined using ordinary least square (OLS) regression analysis. Results suggest that almost all antecedents are positively related to the strategic renewal capability except forward-looking vision. This study concluded by identifying a range of theoretical and managerial contributions, and also made suggestions for future research
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References
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Atuahene-Gima, K. & Murray J. (2004). Antecedents and Outcomes of Marketing Strategy Comprehensiveness. Journal of Marketing, 68(4), 33-46.
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Bonn, I. & Fisher, J. (2011). Sustainability: The missing ingredient in strategy. Journal of Business Strategy, 32(1), 5-14.
Bruton, G. D. & Rubanik, Y. (2002). Resources of the firm, Russian high technology startups and firm growth. Journal of Business Venturing, 17, 553-576.
Capron, L. & Mitchell, W. (2009). Selection capability : how capability gaps and internal social frictions affect internal and external strategic renewal, Organization Science, 20(2),
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Cheng, H., Niu M. & Niu, K. (2014). Industrial cluster involvement, organizational learning and organizational adaptation: An exploratory study in high technology industrial districts, Journal of Knowledge Management, 18(5), 990-971.
Churchill, G. A. (1979). A paradigm for developing better measures of marketing constructs, Journal of Marketing Research, 16, 64-73.
Conger, J. A. (1989). The charismatic leader. San Francisco : Jossey-Bass.
Cooper, J. & Cronin, J. (2000). Internal marketing : A competitive strategy for the long-term car industry, Journal of Business Research, 51, 11-24.
Danielson, M. (2004). A theory of continuous socialization for organizational renewal, Human Resource Development Review, 3(4), 354-384.
Decarolis, D. M. & Deeds, D. L. (1999). The impact of stock and flows of organizational knowledge on firm performance : An empirical investigation of the biotechnology industry, Strategic Management Journal, 20, 953-68.
Dodgeson, M. (1993). Organizational learning : A review of some literature, Organization Studies, 14(3), 375-94.
Duncan, R. B. (1972). Characteristics of organizational environments and perceived environmental uncertainty. Administrative Science Quarterly, 17(3), 313-327.
Egan, M., Yang, B. & Bartlett, K. (2004). The effects of organizational learning culture and job satisfaction on motivation to transfer learning and intention, Human Resource Development Quarterly, 15(3), 279-301.
Ellinger, D., Ellinger, A. E., Yang, B., S. W. (2002).The relationship between the learning organization concept and firms’ financial performance : an empirical assessment, Human Resource Development Quarterly, 13(1), 5-21.
Garrett, T. C., Buisson D. H. & Yap, C. M. (2006). National culture and randd and marketing integration mechanism in new product development : A cross-cultural study between Singapore and New Zealand, Industrial Marketing Management, 35, 293-307.
Glazer, R. & Weiss, A. (1993). Marketing in turbulent environments: Decision processes and the time-sensitivity of information, Journal of Marketing Research, 30, 509-521.
Gordon, L. A. & Miller, D. (1976). A contingency framework for the design of accounting information systems, Accounting, Organizations and Society, 1(1), 59-69.
Grant, R. (1996). Prospering in dynamically-competitive environments: Organizational capability as knowledge creation, Organization Science, 7, 375-387
Hair, J. F., Black, W. C., Babin B. J. & Anderson R. E. (2010). Multivariate data analysis. 7th ed. New Jersey : Pearson Education, Inc.
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Henderson, R. M. & Cockburn, I. (1994). Measuring competence? Exploring firm effects in pharmaceutical research, Strategic Management Journal, 15, 63-84.
Huff, A. S. & Huff, J. O. (2000). When Firms Change direction. Oxford University Press.
Jaw, B. S. & Liu, W. (2003). Promoting organizational learning and self-renewal in Taiwanese companies: The role of HRM, Human Resources Management, 42(3), 223 – 241.
Jaworski, B., & Kohli, A. K. (1993). Market orientation: antecedents and consequences, Journal of Marketing, 57(3), 53-70.
Jirawuttinunt, S. & Ussahawanitchakit, (2011). Strategic human capital orientation and sustainable business performance: An empirical assessment of hotel businesses in Thailand, International Journal of Strategic Management, 11(3), 49-75.
Jumpapang, M., Ussahawanitchakit, P. & Jhundra-indra, P. (2013). Value creation strategy and marketing performance of food businesses in Thailand: An empirical investigation of the antecedents and consequences, Journal of International Finance and Economics, 13(3), 5-34.
Junell, J. & Stahle, P. (2011). Measuring organizational renewal capability, case training service business, Competitiveness Review, 21(3), 247-268.
Kogut, B. & Zander, U. (1992). Knowledge of firm, combinative capability and the replication of technology, Organization Science, 3, 383-397.
Lee, J. N. (2001). The impact of knowledge sharing, organizational capability and partnership quality on IS outsourcing success, Information Management, 38, 323 – 335.
Lissack, M. R. & Gunz, H. P. (2005). Managing complexity in organizations : A view in many directions. Quorum Books Publication: Greenwood Publishing Group, Inc.
March, J. G. (1991). Exploration and exploitation in organizational learning, Organization Science, 2(1), 71-87.
Meadan, H., Shelden, L. L., Appel K. & DeGrazia, R. L. (2010). Devleoping a ling-term vision: A road map for students’ future, Teaching Exceptional Children. 43(2), 8-14.
Murmann, J.P. (2003). Knowledge and Competitive Advantage: The Coevolution of Firms, Technology, and National Institutions, Cambridge University Press, New York, NY.
Nahapiet, J. & Goshal, S. (1998). Social capital, intellectual capital and the organizational advantage, Academy of Management Review, 23(2), 242-66.
Nunnally, J. C. & Bernstein, I. H. (1994). Psychometric Theory. 3rd ed. New York : McGraw-Hill.
Pansuppawatt, P. & Ussahawanitchakit, P. (2011). Strategic organizational creativity of medical and cosmetic businesses in Thailand: An empirical investigation of the antecedents and consequences, International Journal of Strategic Management, 11(2), 1-25.
Perrott, B. E. (2007). A strategic risk approach to knowledge management, Business Horizons, 50(6), 523-533.
Poyhonen, A. (2004). Renewal Ability of Organizations: Synthesis of Theoretical Literature and Suggestions for Measurement. Lappeenranta, Finland: Lappeenranta University of Technology.
Prasnikar, J., Lisjak, M., Buhovac, A. R. & Stembergar, M. (2008). Identifying and exploiting the inter relationships between technological and marketing capabilities, Long Range Planning, 41(5), 530-554.
Price, W. H. (2001). Vision and change: The relationship between vision and change in organization, Doctoral Dissertation. Nova: Nova Southeastern University.
Prieto, I. (2003). A Valuation of Knowledge Management for the Development of Learning Capability in Organizations: An Integrated Model Proposal, doctoral diesis. Department of Economics and Administration, University of Valladolid, Spain.
Ray, G., Barney, J. B. & Muhanna, W. A. (2004). Capabilities, business processes and competitive advantage: Choosing the dependent variable in empirical tests of the resource‐based view, Strategic Management Journal, 25(1), 23-37.
Rothaermel, T. & Deeds, D. L. (2004). Exploitation alliances in biotechnology: A system of new product development, Strategic Management Journal, 25, 201-21.
Rudez, H. N. & Mihalic, T. (2007). Intellectual capital in the hotel industry: A case study from Slovenian, Hospitality Management, 26, 188-189.
Salvato, C. (2009). Capabilities unveiled: the role of ordinary activities in the evolution of product development processes, Organization Science, 20(2), 384-409.
Schmitt, A. & Klarmer, P. (2015). From snapshot to continuity: A dynamic model of organizational adaptation to environmental changes. Scandinavian Journal of Management, 31(1), 3-13
Sookaneknun, S., Ussahawanitchakit, P. & Boonlua, S. (2013). Management Governance and Firm Value: Empirical Evidence from Electronics Businesses in Thailand, International Journal of Business Research, 13(2), 137-164.
Stahle, P. (1998). Supporting a system’s capacity for self-renewal. Yliopistopaino, Helsinki.
Syers, K., Ussahawanitchakit, P. & Jhundra-indra, P. (2012). Strategic marketing learning of hotel businesses in Thailand: An empirical investigation of the antecedents and consequences, International Journal of Strategic Management, 12(4), 1-30.
Teece, D. J., Pisano G. & Shuen, A. (1997). Dynamic capabilities and strategic management, Strategic Management Journal, 18(7), 509-533.
Thongsodsang, C., Ussahawanitchakit, P. & Jhundra-indra, P. (2012). Marketing integration strategy and marketing outcomes: Evidence from software businesses in Thailand, International Journal of Strategic Management, 12(4), 68-96.
Walsh, J. P. (1988). Top management turnover following mergers and acquisitions, Strategic Management Journal, 9(2).
Xue, L., Ray, G. & Sambamurthy, V. (2012). Efficiency or innovation: How do industry environments moderate the effects of firms’ IT assets portfolios, MIS Quarterly, 36(2), 509-528.
Yang, J. & Sun, Y. (2012). The independent brand - building is a key to the survival and development of corporation. Contemporary Logistics, 8, 79-82.
Zander, U. & Kogut, B. (1995). Knowledge and the speed of the transfer and imitation of organizational capabilities : An empirical test. Organization Science, 6(1), 76-92.
Agarwal, R. and Helfat, C.E. (2009). Strategic renewal of organizations. Organization Science, 20(2), 281-93.
Allred, B. B. & Swan, K.S. (2004). Contextual influences on international subsidiaries’ product technology strategy. Journal of International Management, 10, 259-286.
Anderson, S. W. & Lanen, W. N. (1999), Economic transition, strategy and the evolution of management accounting practices : The case of India. Accounting, Organizations and Society, 24(5), 379-412.
Appleyard, M. (1996). How does knowledge flow? interfirm patterns in the semiconductor industry, Strategic Management Journal, 17, 137-54.
Ashill, N. & Jobber, D. (1999). The impact of environmental uncertainty perceptions, decision-maker characteristics and work environment characteristics on the perceived usefulness of marketing information systems (MkIS): A conceptual framework, Journal of Marketing Management, 15(6), 519-40.
Atuahene-Gima, K. & Murray J. (2004). Antecedents and Outcomes of Marketing Strategy Comprehensiveness. Journal of Marketing, 68(4), 33-46.
Baroni De Carvalho, R. & Tavares Ferreira, M. A. (2001). Using information technology to support knowledge conversion processes, Information Research, 7(1), available at: http://InformationRnet/ir/7-1/paper118html (accessed 30 June 2016).
Barr, P. S., Stimpert, J. L. & Huff, A. S. (1992), Cognitive change, strategic action and organizational renewal. Strategic Management Journal, 13, 15-36.
Bonn, I. & Fisher, J. (2011). Sustainability: The missing ingredient in strategy. Journal of Business Strategy, 32(1), 5-14.
Bruton, G. D. & Rubanik, Y. (2002). Resources of the firm, Russian high technology startups and firm growth. Journal of Business Venturing, 17, 553-576.
Capron, L. & Mitchell, W. (2009). Selection capability : how capability gaps and internal social frictions affect internal and external strategic renewal, Organization Science, 20(2),
294-312.
Cheng, H., Niu M. & Niu, K. (2014). Industrial cluster involvement, organizational learning and organizational adaptation: An exploratory study in high technology industrial districts, Journal of Knowledge Management, 18(5), 990-971.
Churchill, G. A. (1979). A paradigm for developing better measures of marketing constructs, Journal of Marketing Research, 16, 64-73.
Conger, J. A. (1989). The charismatic leader. San Francisco : Jossey-Bass.
Cooper, J. & Cronin, J. (2000). Internal marketing : A competitive strategy for the long-term car industry, Journal of Business Research, 51, 11-24.
Danielson, M. (2004). A theory of continuous socialization for organizational renewal, Human Resource Development Review, 3(4), 354-384.
Decarolis, D. M. & Deeds, D. L. (1999). The impact of stock and flows of organizational knowledge on firm performance : An empirical investigation of the biotechnology industry, Strategic Management Journal, 20, 953-68.
Dodgeson, M. (1993). Organizational learning : A review of some literature, Organization Studies, 14(3), 375-94.
Duncan, R. B. (1972). Characteristics of organizational environments and perceived environmental uncertainty. Administrative Science Quarterly, 17(3), 313-327.
Egan, M., Yang, B. & Bartlett, K. (2004). The effects of organizational learning culture and job satisfaction on motivation to transfer learning and intention, Human Resource Development Quarterly, 15(3), 279-301.
Ellinger, D., Ellinger, A. E., Yang, B., S. W. (2002).The relationship between the learning organization concept and firms’ financial performance : an empirical assessment, Human Resource Development Quarterly, 13(1), 5-21.
Garrett, T. C., Buisson D. H. & Yap, C. M. (2006). National culture and randd and marketing integration mechanism in new product development : A cross-cultural study between Singapore and New Zealand, Industrial Marketing Management, 35, 293-307.
Glazer, R. & Weiss, A. (1993). Marketing in turbulent environments: Decision processes and the time-sensitivity of information, Journal of Marketing Research, 30, 509-521.
Gordon, L. A. & Miller, D. (1976). A contingency framework for the design of accounting information systems, Accounting, Organizations and Society, 1(1), 59-69.
Grant, R. (1996). Prospering in dynamically-competitive environments: Organizational capability as knowledge creation, Organization Science, 7, 375-387
Hair, J. F., Black, W. C., Babin B. J. & Anderson R. E. (2010). Multivariate data analysis. 7th ed. New Jersey : Pearson Education, Inc.
Hamel, G. (2000). Leading the Revolution. Boston: Harvard Business School Press.
Helfat, C. E., Finkelstein, S., Mitchell, W., Peteraf, M., Singh, H., Teece, D. & Winter, S. (2007). Dynamic Capabilities: Understanding Strategic Change in Organizations. London: Blackwell.
Henderson, R. M. & Cockburn, I. (1994). Measuring competence? Exploring firm effects in pharmaceutical research, Strategic Management Journal, 15, 63-84.
Huff, A. S. & Huff, J. O. (2000). When Firms Change direction. Oxford University Press.
Jaw, B. S. & Liu, W. (2003). Promoting organizational learning and self-renewal in Taiwanese companies: The role of HRM, Human Resources Management, 42(3), 223 – 241.
Jaworski, B., & Kohli, A. K. (1993). Market orientation: antecedents and consequences, Journal of Marketing, 57(3), 53-70.
Jirawuttinunt, S. & Ussahawanitchakit, (2011). Strategic human capital orientation and sustainable business performance: An empirical assessment of hotel businesses in Thailand, International Journal of Strategic Management, 11(3), 49-75.
Jumpapang, M., Ussahawanitchakit, P. & Jhundra-indra, P. (2013). Value creation strategy and marketing performance of food businesses in Thailand: An empirical investigation of the antecedents and consequences, Journal of International Finance and Economics, 13(3), 5-34.
Junell, J. & Stahle, P. (2011). Measuring organizational renewal capability, case training service business, Competitiveness Review, 21(3), 247-268.
Kogut, B. & Zander, U. (1992). Knowledge of firm, combinative capability and the replication of technology, Organization Science, 3, 383-397.
Lee, J. N. (2001). The impact of knowledge sharing, organizational capability and partnership quality on IS outsourcing success, Information Management, 38, 323 – 335.
Lissack, M. R. & Gunz, H. P. (2005). Managing complexity in organizations : A view in many directions. Quorum Books Publication: Greenwood Publishing Group, Inc.
March, J. G. (1991). Exploration and exploitation in organizational learning, Organization Science, 2(1), 71-87.
Meadan, H., Shelden, L. L., Appel K. & DeGrazia, R. L. (2010). Devleoping a ling-term vision: A road map for students’ future, Teaching Exceptional Children. 43(2), 8-14.
Murmann, J.P. (2003). Knowledge and Competitive Advantage: The Coevolution of Firms, Technology, and National Institutions, Cambridge University Press, New York, NY.
Nahapiet, J. & Goshal, S. (1998). Social capital, intellectual capital and the organizational advantage, Academy of Management Review, 23(2), 242-66.
Nunnally, J. C. & Bernstein, I. H. (1994). Psychometric Theory. 3rd ed. New York : McGraw-Hill.
Pansuppawatt, P. & Ussahawanitchakit, P. (2011). Strategic organizational creativity of medical and cosmetic businesses in Thailand: An empirical investigation of the antecedents and consequences, International Journal of Strategic Management, 11(2), 1-25.
Perrott, B. E. (2007). A strategic risk approach to knowledge management, Business Horizons, 50(6), 523-533.
Poyhonen, A. (2004). Renewal Ability of Organizations: Synthesis of Theoretical Literature and Suggestions for Measurement. Lappeenranta, Finland: Lappeenranta University of Technology.
Prasnikar, J., Lisjak, M., Buhovac, A. R. & Stembergar, M. (2008). Identifying and exploiting the inter relationships between technological and marketing capabilities, Long Range Planning, 41(5), 530-554.
Price, W. H. (2001). Vision and change: The relationship between vision and change in organization, Doctoral Dissertation. Nova: Nova Southeastern University.
Prieto, I. (2003). A Valuation of Knowledge Management for the Development of Learning Capability in Organizations: An Integrated Model Proposal, doctoral diesis. Department of Economics and Administration, University of Valladolid, Spain.
Ray, G., Barney, J. B. & Muhanna, W. A. (2004). Capabilities, business processes and competitive advantage: Choosing the dependent variable in empirical tests of the resource‐based view, Strategic Management Journal, 25(1), 23-37.
Rothaermel, T. & Deeds, D. L. (2004). Exploitation alliances in biotechnology: A system of new product development, Strategic Management Journal, 25, 201-21.
Rudez, H. N. & Mihalic, T. (2007). Intellectual capital in the hotel industry: A case study from Slovenian, Hospitality Management, 26, 188-189.
Salvato, C. (2009). Capabilities unveiled: the role of ordinary activities in the evolution of product development processes, Organization Science, 20(2), 384-409.
Schmitt, A. & Klarmer, P. (2015). From snapshot to continuity: A dynamic model of organizational adaptation to environmental changes. Scandinavian Journal of Management, 31(1), 3-13
Sookaneknun, S., Ussahawanitchakit, P. & Boonlua, S. (2013). Management Governance and Firm Value: Empirical Evidence from Electronics Businesses in Thailand, International Journal of Business Research, 13(2), 137-164.
Stahle, P. (1998). Supporting a system’s capacity for self-renewal. Yliopistopaino, Helsinki.
Syers, K., Ussahawanitchakit, P. & Jhundra-indra, P. (2012). Strategic marketing learning of hotel businesses in Thailand: An empirical investigation of the antecedents and consequences, International Journal of Strategic Management, 12(4), 1-30.
Teece, D. J., Pisano G. & Shuen, A. (1997). Dynamic capabilities and strategic management, Strategic Management Journal, 18(7), 509-533.
Thongsodsang, C., Ussahawanitchakit, P. & Jhundra-indra, P. (2012). Marketing integration strategy and marketing outcomes: Evidence from software businesses in Thailand, International Journal of Strategic Management, 12(4), 68-96.
Walsh, J. P. (1988). Top management turnover following mergers and acquisitions, Strategic Management Journal, 9(2).
Xue, L., Ray, G. & Sambamurthy, V. (2012). Efficiency or innovation: How do industry environments moderate the effects of firms’ IT assets portfolios, MIS Quarterly, 36(2), 509-528.
Yang, J. & Sun, Y. (2012). The independent brand - building is a key to the survival and development of corporation. Contemporary Logistics, 8, 79-82.
Zander, U. & Kogut, B. (1995). Knowledge and the speed of the transfer and imitation of organizational capabilities : An empirical test. Organization Science, 6(1), 76-92.