Interactive profit-planning systems and market turbulence: A dynamic capabilities perspective

Peters, MD; Gudergan, S; Booth, P

Interactive profit-planning systems and market turbulence: A dynamic capabilities perspective

Peters, MD Gudergan, S Booth, P

Permalink

Publication Type:: Journal Article
Citation:: Long Range Planning, 2019, 52 (3), pp. 386 - 405
Issue Date:: 2019-06-01

Closed Access

	Filename	Description	Size
	1-s2.0-S0024630116301984-main.pdf	Published Version	476.94 kB	Adobe PDF	View/Open

Copyright Clearance Process

Recently Added
In Progress
Closed Access

This item is closed access and not available.

Full metadata record

Field	Value	Language
dc.contributor.author	Peters, MD	en_US
dc.contributor.author	Gudergan, S	en_US
dc.contributor.author	Booth, P https://orcid.org/0000-0001-7219-1502	en_US
dc.date.accessioned	2020-03-16T04:57:18Z
dc.date.available	2020-03-16T04:57:18Z
dc.date.issued	2019-06-01	en_US
dc.identifier.citation	Long Range Planning, 2019, 52 (3), pp. 386 - 405	en_US
dc.identifier.issn	0024-6301	en_US
dc.identifier.uri	http://hdl.handle.net/10453/139339
dc.description.abstract	© 2018 Elsevier Ltd This article describes, theorizes and empirically investigates the concept of interactive profit-planning systems (PPS) through the lens of the dynamic capabilities logic. With this conceptualization: interactive PPS capabilities comprise budgeting, forecasting and results-reporting routines, in which top and middle managers interact to create knowledge for sensing, seizing, and business model reconfiguring (to manage strategic business change). Survey data from 331 Australian firms is analyzed employing partial least squares structural equation modeling. The data provides support for two hypotheses: (1) greater market turbulence strengthens the positive effect of interactive PPS capabilities on business unit performance; and (2) greater market turbulence strengthens the positive effect of flexibility values (of organizational culture) on interactive PPS capabilities. Our findings show that interactive PPS capabilities function according to the salient tenets of the dynamic capabilities logic, and clarify the beneficial roles of formal cybernetic control systems and the intertwined involvement of top and middle managers in using dynamic capabilities.	en_US
dc.relation.ispartof	Long Range Planning	en_US
dc.relation.isbasedon	10.1016/j.lrp.2018.03.004	en_US
dc.subject.classification	Business & Management	en_US
dc.title	Interactive profit-planning systems and market turbulence: A dynamic capabilities perspective	en_US
dc.type	Journal Article
utslib.citation.volume	3	en_US
utslib.citation.volume	52	en_US
utslib.for	1503 Business and Management	en_US
utslib.for	1505 Marketing	en_US
pubs.embargo.period	Not known	en_US
pubs.organisational-group	/University of Technology Sydney
utslib.copyright.status	closed_access
pubs.issue	3	en_US
pubs.publication-status	Published	en_US
pubs.volume	52	en_US

Abstract:

© 2018 Elsevier Ltd This article describes, theorizes and empirically investigates the concept of interactive profit-planning systems (PPS) through the lens of the dynamic capabilities logic. With this conceptualization: interactive PPS capabilities comprise budgeting, forecasting and results-reporting routines, in which top and middle managers interact to create knowledge for sensing, seizing, and business model reconfiguring (to manage strategic business change). Survey data from 331 Australian firms is analyzed employing partial least squares structural equation modeling. The data provides support for two hypotheses: (1) greater market turbulence strengthens the positive effect of interactive PPS capabilities on business unit performance; and (2) greater market turbulence strengthens the positive effect of flexibility values (of organizational culture) on interactive PPS capabilities. Our findings show that interactive PPS capabilities function according to the salient tenets of the dynamic capabilities logic, and clarify the beneficial roles of formal cybernetic control systems and the intertwined involvement of top and middle managers in using dynamic capabilities.

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10453/139339