Institutional Pressure and Sustainable Performance of Industrial Manufacturing Companies: Analyzing the Mediating Role of Strategic Learning (Case study; Kermanshah Industrial Town)

Document Type : Sterategic Management

Authors

1 Assistant Professor, Department of Management, Faculty of Management, Imam Ali University, Tehran, Iran.

2 PhD student in Public Administration, Human Resources, University of Lorestan, Khoramabad, Iran

Abstract

The aim of this study is to investigate the effect of institutional pressure on the sustainable performance of manufacturing and industrial companies by analyzing the mediating role of strategic learning. The research method is applied in terms of purpose and descriptive in terms of data collection method. The statistical population includes managers from 256 different industrial and production companies of Kermanshah Industrial Town. According to Morgan sampling table, 152 companies were determined and selected using simple random sampling method. Data collection tools, questionnaires and analysis were performed using Structural Equation Modeling (SEM) in LISREL software. Findings indicate that institutional pressure has a direct significant effect on the sustainable performance of industrial and manufacturing companies. Also, institutional pressure has an indirect significant effect on sustainable performance through the variable of strategic learning. The results show that strategic learning plays a mediating role between institutional pressure and sustainable performance. In addition, institutional pressure and strategic learning are the most important factors affecting the sustainable performance of industrial and manufacturing companies. Moreover, the results have provided theoretical innovations in the areas of institutional pressure, strategic learning and sustainable performance.

Keywords


Abbasi, H. & Fattahian, N. (2017). The effect of strategic learning on organizational performance with the mediating role of strategic agility (Case study: Sports and Youth Departments of Hamadan and Kermanshah). Magazine; Contemporary research in sports management. Year 8 - Number 15 -. Digital ID; 10.22084 / SMMS.2018.15272.2140. (In Persian)
Abdulaziz-Alhumaidan, A., & Ahmad, N. H. (2019). The Influence of CSR Practices on Economic Sustainable Performance. International Journal of Entrepreneurship and Management Practices, 2 (7), 26-38. DOI: 10.35631/ijemp.27004
Abdul-Rashid SH, Sakundarini N, Ghazilla RAR, & Thurasamy R. (2017). The impact of sustainable manufacturing practices on sustainability performance: Empirical evidence from Malaysia. Int J Oper Prod Manag. 37:182–204.
Arman, Mani & Shafiee, Mahboubeh (2017). Competitive Capabilities in Knowledge-Based Companies A model for explaining the role of strategic agility and strategic learning. Journal of Management Studies (Improvement and Transformation), Twenty-fifth year, No. 83. (In Persian)
Anderson, B.S. Covin, J.G. & Slevin, D.P. (2009).“Understanding the relationship between entrepreneurial orientation and strategic learning capability: an empirical investigation”,Strategic Entrepreneurship Journal, Vol. 3 No. 3, pp. 218-40.
Aziz Mohammadloo, Hamid. Fazli, Safar & Mohammadnejad Modardi, Sepideh (2017). Selection of clean technology and green innovation, a solution to improve the environmental performance of small and medium industries (Case study: Kermanshah Industrial Town). Quarterly Journal of Industrial Technology Development. Issue 30. (In Persian)
Bandoi Anca, Jianu Elena, Enescu Maria, Axinte Gheorghe, Tudor Sorin & Firoiu Daniela, (2020). The Relationship between Development of Tourism, Quality of Life and Sustainable Performance in EU Countries. Sustainability 2020, 12, 1628; doi:10.3390/su12041628.
Bourlakis, M., Maglaras, G., Aktas, E. & Gallear, D. (2014). Firm size and sustainable performance in food supply chains: Insights from Greek SMEs. International Journal Production Economics, 152, 112-130.
Beat mashal, Hod. (2017). Explain the mediating role of strategic learning in the impact of strategic entrepreneurship and dynamic capabilities on the performance of knowledge-based companies. Master Thesis, Business Management, Faculty of Management, Kharazmi University. (In Persian)
Baumgartner, R. J., & Rauter, R. (2017). Strategic perspectives of corporate sustainability management to develop a sustainable organization. Journal of Cleaner Production, 140, 81-92. https://doi.org/10.1016/j.jclepro.2016.04.146.
Chatterjee, J. (2002). Knowledge management–theories, issues and challenges, IIT, Kanpur, India, http://www.iitk.ac.in/ime/jayanta/jc.htm
Chu, Z., Wang, L., & Lai, F. (2019). Customer pressure and green innovations at third party logistics providers in China: The moderation effect of organizational culture. The International Journal of Logistics Management, 30(1), 57-75.
Crossan, M, Lane, H, & White, R. (1999). An organizationall earnin frameworkf: rom intuition to institution. Academy of management review, 24(3), 522-537.
D’Andreamatteo, A., Ianni, L., Rangone, A., Paolone, F., & Sargiacomo, M. (2019). Institutional pressures, isomorphic changes and key agents in the transfer of knowledge of Lean in Healthcare. Business Process Management Journal, 25(1), 164-184.
Doz, Y. & Kosonen, M. (2010). Embedding Strategic Agility A Leadership Agenda for Accelerating Business Model Renewal. Long Range Planning (43), 370-382.
Fang, Zhong. Bai, Hua & Bilan, Yuriy. (2019). Evaluation Research of Green Innovation E_ciency in China’s Heavy Polluting Industries. Sustainability 2020, 12, 146; doi:10.3390/su12010146.
Guo, H., Xu, E., & Jacobs, M. (2014). Managerial political ties and firm performance during institutional transitions: An analysis of mediating mechanisms. Journal of Business Research, 67(2), 116-127.
Hatem Keshtiban, Saber (2018). Investigating the effect of strategic learning methods on export performance with the mediating role of strategic flexibility (Case study: Export companies of West Azerbaijan province(.Completion of Master's Degree, Business Management, Faculty of Management and Accounting, Azar Abadgan Non-Governmental Institute of Higher Education. (In Persian)
Hooi, H. C., Ahmad, N. H., Amran, A., & Rahman, S. A. (2016). The functional role of entrepreneurial orientation and entrepreneurial bricolage in ensuring sustainable entrepreneurship. Management Research Review, 39(12), 1616–1638.
Huber, G. (1991). Organizational Learning The Contributing Processes and the Literatures. Organization Science, 2(1). 88-115.
Hubbard, G. (2009). Measuring Organizational Performance: Beyond the Triple Bottom Line. Business Strategy and the Environment, 18, 177-191.
Iduris, W. & AL-Rubaie, M. (2013). Examining the Impact of Stratepe Learning on Strategic Agility. Journal of Management and Strategy, 4(2), 70
Jerez-Gomez, P. Cespedes-Lorente, L. & Valle-Cabrera, R (2005) Organizational learning capability a proposal of measurement. Journal of Business Research(58), 715-725.
Juliet Orji Ifeyinwa, (2019).  Examining barriers to organizational change for sustainability and drivers of sustainable performance in the metal manufacturing industry. Resources, Conservation & Recycling 140 (2019) 102–114. journal homepage: www.elsevier.com/locate/resconrec
Jermsittiparsert, K. & Srihirun, W. (2019). Role of Ethics in Supply Chain Management: Culture as Moderator. Humanities and Social Sciences Reviews, 7(3), 728-735.
Kuwada. K (1998). Strategic Learning The Continuous Side of Discontinuous Strategic Change. ORGANIZATION SCIENCE, 96, 719-736.
Kumar Singh Sanjay, Del Giudice Manlio, Chierici Roberto & Graziano Domenico, (2020). Green innovation and environmental performance: The role of green transformational leadership and green human resource management. Technological Forecasting & Social Change 150 (2020) 119762. Journal homepage: www.elsevier.com/locate/techfore.
Neuvonen, Aleksi  & Ache, Peter (2017). Metropolitan vision making – using backcasting as a strategic learning process to shape metropolitan futures. Contents lists available at ScienceDirect. journal homepa ge: www.elsevier.com/locate/futures.
Orsic Jerko, Rosi Bojan & Jereb Borut, (2019). Measuring Sustainable Performance among Logistic Service Providers in Supply Chains. ISSN 1848-6339 (Online) https://doi.org/10.17559/TV-20180607112607. Technical Gazette 26, 5(2019), 1478-1485.
Rao-Nicholson, R., Khan, Z., & Marinova, S. (2019). Balancing social and political strategies in emerging markets: Evidence from India. Business Ethics: A European Review, 28(1), 56-70.
Stewart, H. & Gapp, R. (2014). Achieving effective sustainable management: A small-medium enterprise case study. Corporate Social Responsibility and Environmental Management,21(1),52–64.
Suleman Areeba, Azim Khan Ather, Bokhari Ijaz Hussain & Mustafa Faisal (2019). The Role of Sustainable Strategies, Sustainable Structure Towards the Sustainable Performance in Family-Owned- Businesses. Journal of Research and Reflections in Education. Vol.13, No 2, pp 302-319. http://www.ue.edu.pk/jrre
Shah Hoseini, M.A., Javaheri Shalmani, S.F., Hasangholipour Yasouri, T., & Rostami, A. (2019). Evaluating and Comparing Key Indicators of Sustainable Development Performance in the Petrochemical Industry Using SMAA and SMAA-S. Industrial Management Journal, 11(2), 273-302. (in Persian)
Shin, Y., Thai, V. V., Grewal, D., & Kim, Y. (2017). Do corporate sustainable management activities improve customer satisfaction, word of mouth intention and repurchase intention? Empirical evidence from the shipping industry. The International Journal of Logistics Management, 28(2), 555-570.
Salonen, A. Rajala, R. & Virtanen, A (2018). Leveraging the benefits of modularity in the provision of integrated solutions: A strategic learning perspective. Industrial Marketing Management 68,13–24. journal homepage: www.elsevier.com/locate/indmarman.
Siren, Ch. Hakala,H. Wincent, J. Grichnik, D. (2017), Breaking the routines: Entrepreneurial orientation, strategic learning, firm size, and age.journal homepage: http://www.elsevier.com/locate/lrp.
Sepahvand, R; Baqerzadeh Khodashahri, R; & Sepahvand, M (2019). Political Sensitivity and Compensation for Senior Management: An Analysis of the Mediating and Modifying Role of Political Networking and Institutional Pressure in Iranian Government Ministries. Government Management, 11 (3), 431-454. (In Persian)
Williams, C., & Spielmann, N. (2019). Institutional pressures and international market orientation in SMEs: Insights from the French wine industry. International Business Review, 28(5).
Siren, C. A. (2012). Urmasking the capability of strategic learning a validation study. The Learning Organization, 19(6), 497-517.
Somjai, S., Srisuponvanit, S., & Jermsittiparsert, K. (2019). Does the e-marketing determine the sustainable performance of firm’s Sportswear industry in Thailand. Journal of Human Sport and Exercise,14(5proc),S2304-S2317. doi:https://doi.org/10.14198/jhse.
Zhang, Y., Wei, Y., & Zhou, G. (2018). Promoting firms’ energy-saving behavior: The role of institutional pressures, top management support and financial slack. Energy Policy, 115, 230–238.