IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v10y2018i11p4122-d181796.html
   My bibliography  Save this article

Strategies for Sustainable Business Development: Utilizing Consulting and Innovation Activities

Author

Listed:
  • Yoo Hwan Lee

    (Business Consulting Research Center, Daejeon University, 62 Daehak-ro, Dong-gu, Daejeon 34520, Korea)

  • Young Wook Seo

    (Department of Business Consulting, Daejeon University, 62 Daehak-ro, Dong-gu, Daejeon 34520, Korea)

Abstract

This study explores strategies for sustainable business development via the process and performance of business consulting by using 200 samples of different industry sectors in South Korea. The main purposes of this paper are to build the consulting model framework and to analyze the relationships between consulting factors and consulting performance for establishing strategies for sustainable business development. First, the findings show that the support of CEOs for consulting projects and the innovation activities via exploration and exploitation (and ambidexterity) have higher impacts on the contribution to business performance than other consulting factors. Similarly, according to the results of IPMA, these variables are placed in a group of high importance and performance, so the findings indicate that the support of CEO and innovation activities play a central role in the consulting model. Second, the competency of CEOs for recognizing the awareness of newly changing market conditions and the importance of utilizing business consulting can serve as an engine to reach their sustainable business development. Moreover, the firms’ innovation activities via business consulting can increase their ability to utilize and absorb the external resources and knowledge for establishing strategies for sustainable business development. These abilities are used not only to induce their business innovation internally but also to pioneer new market opportunities amid a rapidly changing market environment.

Suggested Citation

  • Yoo Hwan Lee & Young Wook Seo, 2018. "Strategies for Sustainable Business Development: Utilizing Consulting and Innovation Activities," Sustainability, MDPI, vol. 10(11), pages 1-19, November.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:11:p:4122-:d:181796
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/10/11/4122/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/10/11/4122/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Claudio Dell'Era & Paolo Landoni & Roberto Verganti, 2015. "From Creative Individuals To Creative Capital: Value Creation And Appropriation Strategies Of Creative Knowledge-Intensive Business Services," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 19(02), pages 1-24.
    2. Milé Terziovski, 2010. "Innovation practice and its performance implications in small and medium enterprises (SMEs) in the manufacturing sector: a resource‐based view," Strategic Management Journal, Wiley Blackwell, vol. 31(8), pages 892-902, August.
    3. Tsui-Yii Shih, 2018. "Determinants of Enterprises Radical Innovation and Performance: Insights into Strategic Orientation of Cultural and Creative Enterprises," Sustainability, MDPI, vol. 10(6), pages 1-22, June.
    4. Paul E. Bierly III & Paula S. Daly, 2007. "Alternative Knowledge Strategies, Competitive Environment, and Organizational Performance in Small Manufacturing Firms," Entrepreneurship Theory and Practice, , vol. 31(4), pages 493-516, July.
    5. Paul E. Bierly & Fariborz Damanpour & Michael D. Santoro, 2009. "The Application of External Knowledge: Organizational Conditions for Exploration and Exploitation," Journal of Management Studies, Wiley Blackwell, vol. 46(3), pages 481-509, May.
    6. Momparler, Alexandre & Carmona, Pedro & Lassala, Carlos, 2015. "Quality of consulting services and consulting fees," Journal of Business Research, Elsevier, vol. 68(7), pages 1458-1462.
    7. Jaehun Park & Joonyoung Kim & Si-Il Sung, 2017. "Performance Evaluation of Research and Business Development: A Case Study of Korean Public Organizations," Sustainability, MDPI, vol. 9(12), pages 1-16, December.
    8. Koryak, Oksana & Lockett, Andy & Hayton, James & Nicolaou, Nicos & Mole, Kevin, 2018. "Disentangling the antecedents of ambidexterity: Exploration and exploitation," Research Policy, Elsevier, vol. 47(2), pages 413-427.
    9. Wang-Jin Yoo & Hyun Ho Choo & Sang Jin Lee, 2018. "A Study on the Sustainable Growth of SMEs: The Mediating Role of Organizational Metacognition," Sustainability, MDPI, vol. 10(8), pages 1-17, August.
    10. Creplet, F. & Dupouet, O. & Kern, F. & Mehmanpazir, B. & Munier, F., 2001. "Consultants and experts in management consulting firms," Research Policy, Elsevier, vol. 30(9), pages 1517-1535, December.
    11. James G. March, 1991. "Exploration and Exploitation in Organizational Learning," Organization Science, INFORMS, vol. 2(1), pages 71-87, February.
    12. Glenn B. Voss & Zannie Giraud Voss, 2013. "Strategic Ambidexterity in Small and Medium-Sized Enterprises: Implementing Exploration and Exploitation in Product and Market Domains," Organization Science, INFORMS, vol. 24(5), pages 1459-1477, October.
    13. Chul-Yong Lee & Sung-Yoon Huh, 2017. "Technology Forecasting Using a Diffusion Model Incorporating Replacement Purchases," Sustainability, MDPI, vol. 9(6), pages 1-14, June.
    14. Shearmur, Richard & Doloreux, David & Laperrière, Anika, 2015. "Is the degree of internationalization associated with the use of knowledge intensive services or with innovation?," International Business Review, Elsevier, vol. 24(3), pages 457-465.
    15. Pascual Ivars, Jose Vicente & Comeche Martínez, Jose Manuel, 2015. "The effect of high performance work systems on small and medium size enterprises," Journal of Business Research, Elsevier, vol. 68(7), pages 1463-1465.
    16. Jeffrey K. Pinto & John E. Prescott, 1990. "Planning And Tactical Factors In The Project Implementation Process," Journal of Management Studies, Wiley Blackwell, vol. 27(3), pages 305-327, May.
    17. Tenenhaus, Michel & Vinzi, Vincenzo Esposito & Chatelin, Yves-Marie & Lauro, Carlo, 2005. "PLS path modeling," Computational Statistics & Data Analysis, Elsevier, vol. 48(1), pages 159-205, January.
    18. Auh, Seigyoung & Menguc, Bulent, 2005. "Balancing exploration and exploitation: The moderating role of competitive intensity," Journal of Business Research, Elsevier, vol. 58(12), pages 1652-1661, December.
    19. Lee, Yoo Hwan & Graff, Gregory D., 2017. "The Production And Dissemination Of Agricultural Knowledge At U.S. Research Universities: The Role And Mission Of Land-Grant Universities," Journal of Rural Development/Nongchon-Gyeongje, Korea Rural Economic Institute, vol. 40(Special, ), December.
    20. Uriel Stettner & Dovev Lavie, 2014. "Ambidexterity under scrutiny: Exploration and exploitation via internal organization, alliances, and acquisitions," Strategic Management Journal, Wiley Blackwell, vol. 35(13), pages 1903-1929, December.
    21. Lori Rosenkopf & Atul Nerkar, 2001. "Beyond local search: boundary‐spanning, exploration, and impact in the optical disk industry," Strategic Management Journal, Wiley Blackwell, vol. 22(4), pages 287-306, April.
    22. Pino G. Audia & Jack A. Goncalo, 2007. "Past Success and Creativity over Time: A Study of Inventors in the Hard Disk Drive Industry," Management Science, INFORMS, vol. 53(1), pages 1-15, January.
    23. Allan P. O. Williams & Sally Woodward, 1994. "The Competitive Consultant," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-13384-0.
    24. Sabri Ahmad & Wan Mohamad Asyraf Bin Wan Afthanorhan, 2014. "The Importance-Performance Matrix Analysis in Partial Least Square Structural Equation Modeling (PLS-SEM) With Smartpls 2.0 M3," International Journal of Mathematics Research, Conscientia Beam, vol. 3(1), pages 1-14.
    25. Yongtao Song & Taiwen Feng & Wenbo Jiang, 2017. "The Influence of Green External Integration on Firm Performance: Does Firm Size Matter?," Sustainability, MDPI, vol. 9(8), pages 1-18, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Michael Yao-Ping Peng & Ku-Ho Lin & Dennis Liute Peng & Peihua Chen, 2019. "Linking Organizational Ambidexterity and Performance: The Drivers of Sustainability in High-Tech Firms," Sustainability, MDPI, vol. 11(14), pages 1-17, July.
    2. Samuel AMPONSAH ODEI & Michael AMPONSAH ODEI & Henry Junior ANDERSON, 2020. "Consultants and firm-level innovation performances: a doubly robust estimation approach," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 11, pages 288-311, December.
    3. Lirios Alos-Simo & Antonio J. Verdu-Jover & Jose M. Gomez-Gras, 2020. "The Dynamic Process of Ambidexterity in Eco-Innovation," Sustainability, MDPI, vol. 12(5), pages 1-17, March.

    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. Wenke, Kathrin & Zapkau, Florian B. & Schwens, Christian, 2021. "Too small to do it all? A meta-analysis on the relative relationships of exploration, exploitation, and ambidexterity with SME performance," Journal of Business Research, Elsevier, vol. 132(C), pages 653-665.
    2. Marina Estrada-Cruz & Noelia Rodriguez-Hernández & Antonio J. Verdú-Jover & Jose Maria Gómez-Gras, 2022. "The effect of competitive intensity on the relationship between strategic entrepreneurship and organizational results," International Entrepreneurship and Management Journal, Springer, vol. 18(1), pages 1-24, March.
    3. Lirios Alos-Simo & Antonio J. Verdu-Jover & Jose M. Gomez-Gras, 2020. "The Dynamic Process of Ambidexterity in Eco-Innovation," Sustainability, MDPI, vol. 12(5), pages 1-17, March.
    4. Marina Estrada-Cruz & Noelia Rodriguez-Hernández & Antonio J. Verdú-Jover & Jose Maria Gómez-Gras, 0. "The effect of competitive intensity on the relationship between strategic entrepreneurship and organizational results," International Entrepreneurship and Management Journal, Springer, vol. 0, pages 1-24.
    5. Partanen, Jukka & Kohtamäki, Marko & Patel, Pankaj C. & Parida, Vinit, 2020. "Supply chain ambidexterity and manufacturing SME performance: The moderating roles of network capability and strategic information flow," International Journal of Production Economics, Elsevier, vol. 221(C).
    6. Úbeda-García, Mercedes & Claver-Cortés, Enrique & Marco-Lajara, Bartolomé & Zaragoza-Sáez, Patrocinio, 2020. "Toward a dynamic construction of organizational ambidexterity: Exploring the synergies between structural differentiation, organizational context, and interorganizational relations," Journal of Business Research, Elsevier, vol. 112(C), pages 363-372.
    7. Mavroudi, Eva & Kesidou, Effie & Pandza, Krsto, 2023. "Effects of ambidextrous and specialized R&D strategies on firm performance: The contingent role of industry orientation," Journal of Business Research, Elsevier, vol. 154(C).
    8. Young Rok Choi & Seongwook Ha & Youngbae Kim, 2022. "Innovation ambidexterity, resource configuration and firm growth: is smallness a liability or an asset?," Small Business Economics, Springer, vol. 58(4), pages 2183-2209, April.
    9. Mingfeng Tang & Peng Xu & Patrick Llerena & Asghar Afshar Jahanshahi, 2019. "The Impact of the Openness of Firms’ External Search Strategies on Exploratory Innovation and Exploitative Innovation," Sustainability, MDPI, vol. 11(18), pages 1-20, September.
    10. Carolina Rojas-Córdova & Amanda J. Williamson & Julio A. Pertuze & Gustavo Calvo, 2023. "Why one strategy does not fit all: a systematic review on exploration–exploitation in different organizational archetypes," Review of Managerial Science, Springer, vol. 17(7), pages 2251-2295, October.
    11. Vinit Parida & Tom Lahti & Joakim Wincent, 2016. "Exploration and exploitation and firm performance variability: a study of ambidexterity in entrepreneurial firms," International Entrepreneurship and Management Journal, Springer, vol. 12(4), pages 1147-1164, December.
    12. Lin, Hsing-Er & Hsu, I-Chieh & Hsu, Audrey Wenhsin & Chung, Hsi-Mei, 2020. "Creating competitive advantages: Interactions between ambidextrous diversification strategy and contextual factors from a dynamic capability perspective," Technological Forecasting and Social Change, Elsevier, vol. 154(C).
    13. O'Reilly, Charles A., III & Tushman, Michael L., 2013. "Organizational Ambidexterity: Past, Present and Future," Research Papers 2130, Stanford University, Graduate School of Business.
    14. Soetanto, Danny & Jack, Sarah, 2016. "The impact of university-based incubation support on the innovation strategy of academic spin-offs," Technovation, Elsevier, vol. 50, pages 25-40.
    15. Zhou, Lianxi & Xu, Shou-Ren & Xu, Hui & Barnes, Bradley R., 2020. "Unleashing the dynamics of product-market ambidexterity in the pursuit of international opportunities: Insights from emerging market firms," International Business Review, Elsevier, vol. 29(6).
    16. Ana María Serrano-Bedia & Marta Pérez-Pérez, 2021. "Knowledge Ambidexterity within a Business Context: Taking Stock and Moving Forward," Sustainability, MDPI, vol. 13(18), pages 1-21, September.
    17. Osiyevskyy, Oleksiy & Shirokova, Galina & Ritala, Paavo, 2020. "Exploration and exploitation in crisis environment: Implications for level and variability of firm performance," Journal of Business Research, Elsevier, vol. 114(C), pages 227-239.
    18. Hughes, Paul & Hughes, Matthew & Stokes, Peter & Lee, Hanna & Rodgers, Peter & Degbey, William Y., 2020. "Micro-foundations of organizational ambidexterity in the context of cross-border mergers and acquisitions," Technological Forecasting and Social Change, Elsevier, vol. 153(C).
    19. Fourné, Sebastian P.L. & Rosenbusch, Nina & Heyden, Mariano L.M. & Jansen, Justin J.P., 2019. "Structural and contextual approaches to ambidexterity: A meta-analysis of organizational and environmental contingencies," European Management Journal, Elsevier, vol. 37(5), pages 564-576.
    20. Céline Bérard & Marc Fréchet, 2020. "Organizational antecedents of exploration and exploitation in SMEs: The role of structural and resource attributes," Post-Print halshs-02570775, HAL.

    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:gam:jsusta:v:10:y:2018:i:11:p:4122-:d:181796. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.