Effects of relational ties paradox on financial and non-financial consequences of servitization: Roles of organizational flexibility and improvisation

Volkan Yeniaras, Anthony Di Benedetto, Mumin Dayan

    Research output: Contribution to journalArticlepeer-review

    21 Citations (Scopus)

    Abstract

    Drawing from relational governance and dynamic capabilities literature streams, we develop a conceptual model in which business and political ties are antecedents of organizational flexibility, which in turn are related to organizational improvisation and, ultimately, financial and non-financial firm performance. We test our model using a data collected from 302 Turkish senior managers. We find positive direct and indirect impacts of business ties on organizational improvisation, and negative direct and indirect impacts of political ties on organizational improvisation. We find organizational improvisation significantly related to several indicators of firm performance. Our results provide clarity on relational governance and firm performance. The intermediate variables of organizational flexibility and improvisation shed light on equivocal findings regarding the effects of business and political ties on firm performance.

    Original languageEnglish
    Pages (from-to)54-68
    Number of pages15
    JournalIndustrial Marketing Management
    Volume99
    DOIs
    Publication statusPublished - Nov 2021

    Keywords

    • Business ties
    • Firm performance
    • Organizational flexibility
    • Organizational improvisation
    • Political ties

    ASJC Scopus subject areas

    • Marketing

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