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The corporate conundrum: how to blend people and process to improve firm performance

Purpose – One of the challenges in the business world is maximising effectiveness and firm performance. This study proposes that the right blend of people (with openness to change and self-transcendence values) and process (effectuation) would result in innovative behaviour and firm performance. The...

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Main Authors: Rathakrishnan, Thanuja, Siew, Imm Ng, Jo, Ahn Ho, Zawawi, Dahlia
Format: Article
Language:English
Published: Fundacao Escola de Comercio Alvares Penteado (F E C A P) 2021
Online Access:http://psasir.upm.edu.my/id/eprint/95358/1/The%20corporate%20conundrum%20how%20to%20blend%20people%20and%20process%20to%20improve%20firm%20performance.pdf
http://psasir.upm.edu.my/id/eprint/95358/
https://rbgn.fecap.br/RBGN/article/view/4099
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spelling my.upm.eprints.953582023-01-05T07:30:15Z http://psasir.upm.edu.my/id/eprint/95358/ The corporate conundrum: how to blend people and process to improve firm performance Rathakrishnan, Thanuja Siew, Imm Ng Jo, Ahn Ho Zawawi, Dahlia Purpose – One of the challenges in the business world is maximising effectiveness and firm performance. This study proposes that the right blend of people (with openness to change and self-transcendence values) and process (effectuation) would result in innovative behaviour and firm performance. Theoretical framework – The effectuation process has been found to be useful in promoting innovativeness, especially among small firms whose resources are scarce. This relationship is also true in large firms, although these have more resources and operate in a relatively stable environment. Design/methodology/approach – Using a snowball sampling approach, a total of 206 completed questionnaires were collected online from employees involved in decision making and innovative work processes in multinational companies in Selangor, Malaysia. PLS-SEM was used to analyse the data. Findings – The right people (who are open to change or self-transcendent) blended with the right process (effectuation) were found to positively predict innovative behaviour and firm performance. Effectuation and innovative behaviour also mediated the relationships between individual values and firm performance, suggesting that people and process should coexist to enhance firm performance. Research Practical & Social implications – Effectuation is scarcely practised in large firms. Therefore, we suggest that large firms encourage the use of effectuation through training. As the practice is better received among individuals who are open to change and self-transcendent, these values could also be used as hiring criteria. Originality/value – This study contributes to the literature by analysing the roles of people and process in optimising firm performance, and identifying effectuation and innovative behaviour as mechanisms that link individual values to firm performance. Fundacao Escola de Comercio Alvares Penteado (F E C A P) 2021-09-26 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/95358/1/The%20corporate%20conundrum%20how%20to%20blend%20people%20and%20process%20to%20improve%20firm%20performance.pdf Rathakrishnan, Thanuja and Siew, Imm Ng and Jo, Ahn Ho and Zawawi, Dahlia (2021) The corporate conundrum: how to blend people and process to improve firm performance. RBGN-Revista Brasileira de Gestao de Negocios, 23 (2). 226 - 251. ISSN 1806-4892; ESSN: 1983-0807 https://rbgn.fecap.br/RBGN/article/view/4099 10.7819/rbgn.v23i2.4099
institution Universiti Putra Malaysia
building UPM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Putra Malaysia
content_source UPM Institutional Repository
url_provider http://psasir.upm.edu.my/
language English
description Purpose – One of the challenges in the business world is maximising effectiveness and firm performance. This study proposes that the right blend of people (with openness to change and self-transcendence values) and process (effectuation) would result in innovative behaviour and firm performance. Theoretical framework – The effectuation process has been found to be useful in promoting innovativeness, especially among small firms whose resources are scarce. This relationship is also true in large firms, although these have more resources and operate in a relatively stable environment. Design/methodology/approach – Using a snowball sampling approach, a total of 206 completed questionnaires were collected online from employees involved in decision making and innovative work processes in multinational companies in Selangor, Malaysia. PLS-SEM was used to analyse the data. Findings – The right people (who are open to change or self-transcendent) blended with the right process (effectuation) were found to positively predict innovative behaviour and firm performance. Effectuation and innovative behaviour also mediated the relationships between individual values and firm performance, suggesting that people and process should coexist to enhance firm performance. Research Practical & Social implications – Effectuation is scarcely practised in large firms. Therefore, we suggest that large firms encourage the use of effectuation through training. As the practice is better received among individuals who are open to change and self-transcendent, these values could also be used as hiring criteria. Originality/value – This study contributes to the literature by analysing the roles of people and process in optimising firm performance, and identifying effectuation and innovative behaviour as mechanisms that link individual values to firm performance.
format Article
author Rathakrishnan, Thanuja
Siew, Imm Ng
Jo, Ahn Ho
Zawawi, Dahlia
spellingShingle Rathakrishnan, Thanuja
Siew, Imm Ng
Jo, Ahn Ho
Zawawi, Dahlia
The corporate conundrum: how to blend people and process to improve firm performance
author_facet Rathakrishnan, Thanuja
Siew, Imm Ng
Jo, Ahn Ho
Zawawi, Dahlia
author_sort Rathakrishnan, Thanuja
title The corporate conundrum: how to blend people and process to improve firm performance
title_short The corporate conundrum: how to blend people and process to improve firm performance
title_full The corporate conundrum: how to blend people and process to improve firm performance
title_fullStr The corporate conundrum: how to blend people and process to improve firm performance
title_full_unstemmed The corporate conundrum: how to blend people and process to improve firm performance
title_sort corporate conundrum: how to blend people and process to improve firm performance
publisher Fundacao Escola de Comercio Alvares Penteado (F E C A P)
publishDate 2021
url http://psasir.upm.edu.my/id/eprint/95358/1/The%20corporate%20conundrum%20how%20to%20blend%20people%20and%20process%20to%20improve%20firm%20performance.pdf
http://psasir.upm.edu.my/id/eprint/95358/
https://rbgn.fecap.br/RBGN/article/view/4099
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score 13.223943

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