Exploring the antecedents of effectiveness and efficiency

Abstract

a b s t r a c tOur knowledge of determinants of effectiveness and efficiency of firms continues to expand. However, this knowledge remains quite fragmented and non-cumulative in the service industry. Herein, this study explores the effect of entrepreneurial and financial orientations as two key contributors to performance in the service industry. Data for this study were collected from 182 hotels in Switzerland to examine the effect of a financial strategic orientation and an entrepreneurial strategic orientation on two widely-used standards of business performance-effectiveness and efficiency. We hypothesized that these effects would be more pronounced under certain dynamic environment conditions. Findings provide new insights about the merits of building bridges between the entrepreneurial orientation and financial orientation. Within the context of existing research on strategic management, we discuss the implications of our findings for hotel managers and address the study's limitations and future research directions.

Understanding Innovation for Sustainable Business Management Capabilities and Competencies under Uncertainty

“…Moreover, building trust, a shared vision, and agreement on basic values drives the actors in a network that is dedicated to the common development of sustainable business. In particular, managers are advised to stimulate the entrepreneurial spirit and thinking among employees [105].…”

Moderating Effect of Environmental Dynamism on the Relationship between a Firm’s Entrepreneurial Orientation and Financial Performance

“…Previous researchers operationally defined entrepreneurial orientation as an aggregate measure of three dimensions (Covin and Slevin 1988;Miller and Friesen 1983;Naman and Slevin 1993;van Doorn, Heyden, and Volberda 2017). These multidimensional variable indeed reflects top management's behavior in taking strategic decisions and operating management philosophies (Tajeddini 2015).…”

An intelligent framework for productivity assessment and analysis of human resource from resilience engineering, motivational factors, HSE and ergonomics perspectives

“…Efficiency and effectiveness are mutually exclusive. A manager or worker who is effective is not efficient always and vice versa because effectiveness means something entirely different than efficiency while they sound similar (Frøkjaer et al, 2000;Tajeddini, 2015). Effectiveness is related to the difference existing between actual value (i.e., target) and the forecasted (i.e., expected) value.…”

“…Effectiveness is related to the difference existing between actual value (i.e., target) and the forecasted (i.e., expected) value. On the other hand, efficiency is measured by how many units of input are needed to create one unit of output (Tajeddini, 2015). For instance, suppose for one specific DMU, the predicted value of a certain output is 10, while the DMU has obtained 6 of that output as a result, the effectiveness of the DMU is equal to 60% and the efficiency of the DMU could be any value depending on the values of the inputs.…”