IDEAS home Printed from https://ideas.repec.org/a/eee/intman/v30y2024i1s1075425323001163.html
   My bibliography  Save this article

Firm performance drivers within a dynamic emerging market ecosystem

Author

Listed:
  • Viktora-Jones, Magdalena
  • Parente, Ronaldo
  • Drori, Netanel
  • Zhao, Yue

Abstract

Business ecosystem participants face a significant challenge in navigating the dynamic environment due to high levels of interdependencies. Integrating dynamic capabilities theory and the business ecosystem perspective, we examine how business ecosystem participants increase performance in such an environment. Using longitudinal data from the Brazilian automotive cluster, we find that a higher degree of modularity and supplier involvement both lead to improved performance of business ecosystem participants. Moreover, we show that strategic agility acts as a mediator, positively influencing the indirect relationships between modularity and performance, as well as supplier involvement and performance. These indirect relationships are further moderated by the digitalization level. This research contributes to the business ecosystem literature by demonstrating that agility and digitalization are important drivers of business ecosystem participants' performance.

Suggested Citation

  • Viktora-Jones, Magdalena & Parente, Ronaldo & Drori, Netanel & Zhao, Yue, 2024. "Firm performance drivers within a dynamic emerging market ecosystem," Journal of International Management, Elsevier, vol. 30(1).
    • Handle: RePEc:eee:intman:v:30:y:2024:i:1:s1075425323001163
    DOI: 10.1016/j.intman.2023.101119
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1075425323001163
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.intman.2023.101119?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Cegarra-Navarro, Juan-Gabriel & Soto-Acosta, Pedro & Wensley, Anthony K.P., 2016. "Structured knowledge processes and firm performance: The role of organizational agility," Journal of Business Research, Elsevier, vol. 69(5), pages 1544-1549.
    2. Jean-Benoit Hardouin & Angelique Bonnaud-Antignac & Veronique Sebille, 2011. "Nonparametric item response theory using Stata," Stata Journal, StataCorp LP, vol. 11(1), pages 30-51, March.
    3. Ittner, CD & Larcker, DF, 1998. "Are nonfinancial measures leading indicators of financial performance? An analysis of customer satisfaction," Journal of Accounting Research, Wiley Blackwell, vol. 36, pages 1-35.
    4. Sílvio R.I. Pires & Guillermo Cardoza, 2007. "A study of new supply chain management practices in the Brazilian and Spanish auto industries," International Journal of Automotive Technology and Management, Inderscience Enterprises Ltd, vol. 7(1), pages 72-87.
    5. Bastien Perrot & Emmanuelle Bataille & Jean-Benoit Hardouin, 2018. "validscale: A command to validate measurement scales," Stata Journal, StataCorp LP, vol. 18(1), pages 29-50, March.
    6. Llopis-Albert, Carlos & Rubio, Francisco & Valero, Francisco, 2021. "Impact of digital transformation on the automotive industry," Technological Forecasting and Social Change, Elsevier, vol. 162(C).
    7. Cha, Hongryol, 2020. "A paradigm shift in the global strategy of MNEs towards business ecosystems: A research agenda for new theory development," Journal of International Management, Elsevier, vol. 26(3).
    8. Ron Sanchez, 1995. "Strategic flexibility in product competition," Strategic Management Journal, Wiley Blackwell, vol. 16(S1), pages 135-159.
    9. Seyoum, Belay & Lian, Yunshan, 2018. "Market performance implications of modularization: Evidence from global auto firms operating in China," International Business Review, Elsevier, vol. 27(4), pages 852-866.
    10. Annarelli, Alessandro & Battistella, Cinzia & Nonino, Fabio & Parida, Vinit & Pessot, Elena, 2021. "Literature review on digitalization capabilities: Co-citation analysis of antecedents, conceptualization and consequences," Technological Forecasting and Social Change, Elsevier, vol. 166(C).
    11. Edward J. Zajac & Matthew S. Kraatz & Rudi K. F. Bresser, 2000. "Modeling the dynamics of strategic fit: a normative approach to strategic change," Strategic Management Journal, Wiley Blackwell, vol. 21(4), pages 429-453, April.
    12. Shams, Riad & Vrontis, Demetris & Belyaeva, Zhanna & Ferraris, Alberto & Czinkota, Michael R., 2021. "Strategic agility in international business: A conceptual framework for “agile” multinationals," Journal of International Management, Elsevier, vol. 27(1).
    13. Graça, Paula & Camarinha-Matos, Luís M., 2017. "Performance indicators for collaborative business ecosystems — Literature review and trends," Technological Forecasting and Social Change, Elsevier, vol. 116(C), pages 237-255.
    14. Jiatao Li & Liang Chen & Jingtao Yi & Jiye Mao & Jianwen Liao, 2019. "Ecosystem-specific advantages in international digital commerce," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(9), pages 1448-1463, December.
    15. Ke Rong & Yong Lin & Boyi Li & Thommie Burström & Lynne Butel & Jiang Yu, 2018. "Business ecosystem research agenda: more dynamic, more embedded, and more internationalized," Asian Business & Management, Palgrave Macmillan, vol. 17(3), pages 167-182, July.
    16. Carliss Y. Baldwin & Kim B. Clark, 2000. "Design Rules, Volume 1: The Power of Modularity," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262024667, December.
    17. David J. Teece, 2007. "Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance," Strategic Management Journal, Wiley Blackwell, vol. 28(13), pages 1319-1350, December.
    18. Liang Chen & Sali Li & Jiang Wei & Yang Yang, 2022. "Externalization in the platform economy: Social platforms and institutions," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(8), pages 1805-1816, October.
    19. Joachim Stonig & Torsten Schmid & Günter Müller‐Stewens, 2022. "From product system to ecosystem: How firms adapt to provide an integrated value proposition," Strategic Management Journal, Wiley Blackwell, vol. 43(9), pages 1927-1957, September.
    20. Juha‐Antti Lamberg & Henrikki Tikkanen & Tomi Nokelainen & Henri Suur‐Inkeroinen, 2009. "Competitive dynamics, strategic consistency, and organizational survival," Strategic Management Journal, Wiley Blackwell, vol. 30(1), pages 45-60, January.
    21. Nambisan, Satish & Wright, Mike & Feldman, Maryann, 2019. "The digital transformation of innovation and entrepreneurship: Progress, challenges and key themes," Research Policy, Elsevier, vol. 48(8), pages 1-1.
    22. Parente, Ronaldo C. & Baack, Daniel W. & Hahn, Eugene D., 2011. "The effect of supply chain integration, modular production, and cultural distance on new product development: A dynamic capabilities approach," Journal of International Management, Elsevier, vol. 17(4), pages 278-290.
    23. Siah Hwee Ang, 2008. "Competitive intensity and collaboration: impact on firm growth across technological environments," Strategic Management Journal, Wiley Blackwell, vol. 29(10), pages 1057-1075, October.
    24. G.S. Smania & G.H.D.S. Mendes & Moacir Godinho Filho & L. Osiro & P.A. Cauchick-Miguel & W. Coreynen, 2022. "The Relationships between Digitalization and Ecosystem-Related Capabilities for Service Innovation in Agricultural Machinery Manufacturers," Post-Print hal-04279963, HAL.
    25. Michael G. Jacobides & Carmelo Cennamo & Annabelle Gawer, 2018. "Towards a theory of ecosystems," Strategic Management Journal, Wiley Blackwell, vol. 39(8), pages 2255-2276, August.
    26. Rong, Ke & Kang, Zhengyao & Williamson, Peter J., 2022. "Liability of ecosystem integration and internationalisation of digital firms," Journal of International Management, Elsevier, vol. 28(4).
    27. Ron Adner & Rahul Kapoor, 2010. "Value creation in innovation ecosystems: how the structure of technological interdependence affects firm performance in new technology generations," Strategic Management Journal, Wiley Blackwell, vol. 31(3), pages 306-333, March.
    28. Rahul Kapoor, 2018. "Ecosystems: broadening the locus of value creation," Journal of Organization Design, Springer;Organizational Design Community, vol. 7(1), pages 1-16, December.
    29. Dennis Campbell, 2008. "Nonfinancial Performance Measures and Promotion‐Based Incentives," Journal of Accounting Research, Wiley Blackwell, vol. 46(2), pages 297-332, May.
    30. Rajiv D. Banker & Raj Mashruwala, 2007. "The Moderating Role of Competition in the Relationship between Nonfinancial Measures and Future Financial Performance," Contemporary Accounting Research, John Wiley & Sons, vol. 24(3), pages 763-793, September.
    31. Gerald A McDermott & Rafael A Corredoira, 2010. "Network composition, collaborative ties, and upgrading in emerging-market firms: Lessons from the Argentine autoparts sector," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 41(2), pages 308-329, February.
    32. Barbosa, Luziane Machado & Lacerda, Daniel Pacheco & Piran, Fabio Antonio Sartori & Dresch, Aline, 2017. "Exploratory analysis of the variables prevailing on the effects of product modularization on production volume and efficiency," International Journal of Production Economics, Elsevier, vol. 193(C), pages 677-690.
    33. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    34. Ronaldo Parente & Ke Rong & José-Mauricio G. Geleilate & Everlyne Misati, 2019. "Adapting and sustaining operations in weak institutional environments: A business ecosystem assessment of a Chinese MNE in Central Africa," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(2), pages 275-291, March.
    35. Paul M. Swamidass & William T. Newell, 1987. "Manufacturing Strategy, Environmental Uncertainty and Performance: A Path Analytic Model," Management Science, INFORMS, vol. 33(4), pages 509-524, April.
    36. Masaaki Kotabe & Ronaldo Parente & Janet Y Murray, 2007. "Antecedents and outcomes of modular production in the Brazilian automobile industry: a grounded theory approach," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(1), pages 84-106, January.
    37. Kathleen M. Eisenhardt & Jeffrey A. Martin, 2000. "Dynamic capabilities: what are they?," Strategic Management Journal, Wiley Blackwell, vol. 21(10‐11), pages 1105-1121, October.
    38. Mudambi, Ram & Swift, Tim, 2011. "Leveraging knowledge and competencies across space: The next frontier in international business," Journal of International Management, Elsevier, vol. 17(3), pages 186-189, September.
    39. Sea-Jin Chang & Arjen van Witteloostuijn & Lorraine Eden, 2010. "From the Editors: Common method variance in international business research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 41(2), pages 178-184, February.
    40. Nicole Coviello & Liena Kano & Peter W Liesch, 2017. "Adapting the Uppsala model to a modern world: Macro-context and microfoundations," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(9), pages 1151-1164, December.
    41. Brieger, Steven A. & Chowdhury, Farzana & Hechavarría, Diana M. & Muralidharan, Etayankara & Pathak, Saurav & Lam, Yan Tong, 2022. "Digitalization, institutions and new venture internationalization," Journal of International Management, Elsevier, vol. 28(4).
    42. Rahul Kapoor & Shiva Agarwal, 2017. "Sustaining Superior Performance in Business Ecosystems: Evidence from Application Software Developers in the iOS and Android Smartphone Ecosystems," Organization Science, INFORMS, vol. 28(3), pages 531-551, June.
    43. Xinshu Zhao & John G. Lynch & Qimei Chen, 2010. "Reconsidering Baron and Kenny: Myths and Truths about Mediation Analysis," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 37(2), pages 197-206, August.
    44. G. Tomas M. Hult & Maria Alejandra Gonzalez-Perez & Katarina Lagerström, 2020. "The theoretical evolution and use of the Uppsala Model of internationalization in the international business ecosystem," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(1), pages 38-49, February.
    45. Zhou, Kevin Zheng & Li, Caroline Bingxin, 2010. "How strategic orientations influence the building of dynamic capability in emerging economies," Journal of Business Research, Elsevier, vol. 63(3), pages 224-231, March.
    46. Jingtao Yi & Jiatao Li & Liang Chen, 2023. "Ecosystem social responsibility in international digital commerce," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 54(1), pages 24-41, February.
    47. Jakki Mohr & Robert Spekman, 1994. "Characteristics of partnership success: Partnership attributes, communication behavior, and conflict resolution techniques," Strategic Management Journal, Wiley Blackwell, vol. 15(2), pages 135-152, February.
    48. Lamin, Anna & Dunlap, Denise, 2011. "Complex technological capabilities in emerging economy firms: The role of organizational relationships," Journal of International Management, Elsevier, vol. 17(3), pages 211-228, September.
    49. Rong, Ke & Hu, Guangyu & Lin, Yong & Shi, Yongjiang & Guo, Liang, 2015. "Understanding business ecosystem using a 6C framework in Internet-of-Things-based sectors," International Journal of Production Economics, Elsevier, vol. 159(C), pages 41-55.
    50. Jarryd Daymond & Eric Knight & Maria Rumyantseva & Steven Maguire, 2023. "Managing ecosystem emergence and evolution: Strategies for ecosystem architects," Strategic Management Journal, Wiley Blackwell, vol. 44(4), pages 1-27, April.
    51. Michael G. Jacobides & John Paul MacDuffie & C. Jennifer Tae, 2016. "Agency, structure, and the dominance of OEMs: Change and stability in the automotive sector," Strategic Management Journal, Wiley Blackwell, vol. 37(9), pages 1942-1967, September.
    52. Jacobides, Michael G. & Cennamo, Carmelo & Gawer, Annabelle, 2024. "Externalities and complementarities in platforms and ecosystems: From structural solutions to endogenous failures," Research Policy, Elsevier, vol. 53(1).
    53. Iheanachor, Nkemdilim & Umukoro, Immanuel & Yela Aránega, Alba, 2023. "Ecosystem emergence in emerging markets: Evidence from the Nigerian digital financial services ecosystem," Technological Forecasting and Social Change, Elsevier, vol. 190(C).
    54. Linde, Lina & Sjödin, David & Parida, Vinit & Wincent, Joakim, 2021. "Dynamic capabilities for ecosystem orchestrationA capability-based framework for smart city innovation initiatives," Technological Forecasting and Social Change, Elsevier, vol. 166(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Shi, Xianwei & Liang, Xingkun & Luo, Yining, 2023. "Unpacking the intellectual structure of ecosystem research in innovation studies," Research Policy, Elsevier, vol. 52(6).
    2. Hou, Hong & Shi, Yongjiang, 2021. "Ecosystem-as-structure and ecosystem-as-coevolution: A constructive examination," Technovation, Elsevier, vol. 100(C).
    3. Silva, Lucas Emmanuel Nascimento & Gomes, Leonardo Augusto de Vasconcelos & Faria, Aline Mariane de & Borini, Felipe Mendes, 2024. "Innovation processes in ecosystem settings: An integrative framework and future directions," Technovation, Elsevier, vol. 132(C).
    4. Rong, Ke & Kang, Zhengyao & Williamson, Peter J., 2022. "Liability of ecosystem integration and internationalisation of digital firms," Journal of International Management, Elsevier, vol. 28(4).
    5. Baldwin, Carliss Y. & Bogers, Marcel L.A.M. & Kapoor, Rahul & West, Joel, 2024. "Focusing the ecosystem lens on innovation studies," Research Policy, Elsevier, vol. 53(3).
    6. Shen, Rui & Guo, Hai & Ma, Hongjia, 2023. "How do entrepreneurs' cross-cultural experiences contribute to entrepreneurial ecosystem performance?," Journal of World Business, Elsevier, vol. 58(2).
    7. Reiter, Andreas & Stonig, Joachim & Frankenberger, Karolin, 2024. "Managing multi-tiered innovation ecosystems," Research Policy, Elsevier, vol. 53(1).
    8. Zahoor, Nadia & Khan, Zaheer & Shenkar, Oded, 2023. "International vertical alliances within the international business field: A systematic literature review and future research agenda," Journal of World Business, Elsevier, vol. 58(1).
    9. Song, Yue & Gnyawali, Devi & Qian, Lihong, 2024. "From early curiosity to space wide web: The emergence of the small satellite innovation ecosystem," Research Policy, Elsevier, vol. 53(2).
    10. Shen, Lei & Shi, Qingyue & Parida, Vinit & Jovanovic, Marin, 2024. "Ecosystem orchestration practices for industrial firms: A qualitative meta-analysis, framework development and research agenda," Journal of Business Research, Elsevier, vol. 173(C).
    11. Roh, Taewoo & Xiao, Shufeng (Simon) & Park, Byung Il, 2024. "MNEs' capabilities and their sustainable business in emerging markets: Evidence from MNE subsidiaries in China," Journal of International Management, Elsevier, vol. 30(1).
    12. Fleury, Afonso & Fleury, Maria Tereza Leme & Oliveira, Luis & Leao, Pablo, 2024. "Going digital EMNEs: The role of digital maturity capability," International Business Review, Elsevier, vol. 33(4).
    13. Constance E. Helfat & Aseem Kaul & David J. Ketchen & Jay B. Barney & Olivier Chatain & Harbir Singh, 2023. "Renewing the resource‐based view: New contexts, new concepts, and new methods," Strategic Management Journal, Wiley Blackwell, vol. 44(6), pages 1357-1390, June.
    14. Spaniol, Matthew J. & Rowland, Nicholas J., 2022. "Business ecosystems and the view from the future: The use of corporate foresight by stakeholders of the Ro-Ro shipping ecosystem in the Baltic Sea Region," Technological Forecasting and Social Change, Elsevier, vol. 184(C).
    15. FeCheng Ma & Farhan Khan & Kashif Ullah Khan & Si XiangYun, 2021. "Investigating the Impact of Information Technology, Absorptive Capacity, and Dynamic Capabilities on Firm Performance: An Empirical Study," SAGE Open, , vol. 11(4), pages 21582440211, November.
    16. Sjödin, David & Liljeborg, Alexander & Mutter, Sermed, 2024. "Conceptualizing ecosystem management capabilities: Managing the ecosystem-organization interface," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    17. Kroh, Julia & Globocnik, Dietfried & Schultz, Carsten & Holdhof, Frederike & Salomo, Søren, 2024. "Micro-foundations of digital innovation capability – A mixed method approach to develop and validate a multi-dimensional measurement instrument," Technological Forecasting and Social Change, Elsevier, vol. 198(C).
    18. Shaker A. Zahra & Olga Petricevic & Yadong Luo, 2022. "Toward an action-based view of dynamic capabilities for international business," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(4), pages 583-600, June.
    19. Gomes, Leonardo Augusto de Vasconcelos & Flechas, Ximena Alejandra & Facin, Ana Lucia Figueiredo & Borini, Felipe Mendes, 2021. "Ecosystem management: Past achievements and future promises," Technological Forecasting and Social Change, Elsevier, vol. 171(C).
    20. Changwei Pang & Qiong Wang, 2024. "How Digital Transformation Promotes Disruptive Innovation? Evidence from Chinese Entrepreneurial Firms," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(2), pages 7788-7818, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:intman:v:30:y:2024:i:1:s1075425323001163. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/601266/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.