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Being clear and specific on what moderating and/or mediating variables are included and what effects are observed in academic research helps the reader to better understand the academic research context and results. But in terms of managerial relevance, it is also important to do this in a way that it provides descriptive, goal and operational relevance to decision makers in practice, depending on the type of intended research. This article wants to provide “a question-based step-by-step guide” on how to make the analysis of moderating/mediating variables and their observed effects more managerially relevant.

Based on a critical review of the literature, important criteria of managerial relevance are confronted with important aspects of theory building with respect to mediating and moderating effects, leading to best-practice insights and recommendations. Moreover, exemplary articles are used to illustrate these findings.

The insights and step-by-step recommendations assist the academic researcher in making choices when analyzing moderators and mediators, by not only taking a theoretical perspective, but also a managerial (relevance) perspective. Adding moderators/mediators may for instance challenge the “core logic of managerial practice” (in terms of thinking and decision making), even if it does not change the “core logic of a theory” as such. In the other direction, academics (and their theory) may be challenged by practitioners, in the way they define moderators/mediators and their levels. The steps in this article relate to aspects such as measurability, controllability and role of moderators and mediators in managerial problem and decision contexts. In case of multiple moderating and/or mediating variables, the decision architecture for managers becomes more complex, especially when the effects are countervailing/opposite. Multiple studies in this article illustrate that in that case, making optimal decisions becomes a “balancing” act for managers/decision makers and may even challenge their common beliefs (e.g. linear thinking).

The guidelines on managerial relevance of moderating and/or mediating variables and their effects can be used by academic researchers and editors of academic journals, pursuing not only academic rigor, but also managerial relevance. Besides being a guide for managerially relevant output, it also helps in determining for which questions in the research process, input from practitioners or at least insights from practice (e.g. through sources such as business magazines and portals) may be needed. The guidelines may also be used for teaching purposes, complementing more theoretical articles that mainly focus on methodological/statistical issues of moderating/mediating variables and their effects.

Indirect or mediated effects constitute a type of relationship between constructs that often occurs in partial least squares (PLS) path modeling. Over the past few years, the methods for testing mediation have become more sophisticated. However, many researchers continue to use outdated methods to test mediating effects in PLS, which can lead to erroneous results. One reason for the use of outdated methods or even the lack of their use altogether is that no systematic tutorials on PLS exist that draw on the newest statistical findings. The paper aims to discuss these issues.

This study illustrates the state-of-the-art use of mediation analysis in the context of PLS-structural equation modeling (SEM).

This study facilitates the adoption of modern procedures in PLS-SEM by challenging the conventional approach to mediation analysis and providing more accurate alternatives. In addition, the authors propose a decision tree and classification of mediation effects.

The recommended approach offers a wide range of testing options (e.g. multiple mediators) that go beyond simple mediation analysis alternatives, helping researchers discuss their studies in a more accurate way.

This paper aims to determine the mediating effects of government-funded research and development (R&D) projects in the relationship between the competence factors of universities and the performance of university–industry cooperation.

This study has been conducted to analyze the mediating effect of government- and enterprise-funded R&D projects in consideration of the performance during university–industry cooperative projects. In this study, a three-step analysis of the mediating effects (Baron and Kenny, 1986) and Sobel Test are taken for the empirical analysis.

In the result, R&D funding from the central government partially mediates the performance of university–industry cooperation when the research capacity of the full-time faculty and the size of the Technical Licensing Office (TLO) are taken as independent variables. R&D funding from the central government does not mediate university–industry cooperation when the size of the center for university–industry cooperation is an independent variable. However, R&D funding from a local government does not mediate the performance of university–industry cooperative projects for any chosen independent variables. The results of this study suggest a direction for governmental funding in R&D projects to promote performance during university–industry cooperation. Another requirement is for universities to expand their research capacity and the operations of their TLO.

The majority of former research studies on university–industry cooperation and its performance have focused on the university’s research capacity, the competence of the TLO and the traits of the university.

Information and communications technology (ICT) offers enormous opportunities for individuals, businesses and society. The application of ICT is equally important to economic and non-economic activities. Researchers have increasingly focused on the adoption and use of ICT by small and medium enterprises (SMEs) as the economic development of a country is largely dependent on them. Following the success of ICT utilisation in SMEs in developed countries, many developing countries are looking to utilise the potential of the technology to develop SMEs. Past studies have shown that the contribution of ICT to the performance of SMEs is not clear and certain. Thus, it is crucial to determine the effectiveness of ICT in generating firm performance since this has implications for SMEs’ expenditure on the technology. This research examines the diffusion of ICT among SMEs with respect to the typical stages from innovation adoption to post-adoption, by analysing the actual usage of ICT and value creation. The mediating effects of integration and utilisation on SME performance are also studied. Grounded in the innovation diffusion literature, institutional theory and resource-based theory, this study has developed a comprehensive integrated research model focused on the research objectives. Following a positivist research paradigm, this study employs a mixed-method research approach. A preliminary conceptual framework is developed through an extensive literature review and is refined by results from an in-depth field study. During the field study, a total of 11 SME owners or decision-makers were interviewed. The recorded interviews were transcribed and analysed using NVivo 10 to refine the model to develop the research hypotheses. The final research model is composed of 30 first-order and five higher-order constructs which involve both reflective and formative measures. Partial least squares-based structural equation modelling (PLS-SEM) is employed to test the theoretical model with a cross-sectional data set of 282 SMEs in Bangladesh. Survey data were collected using a structured questionnaire issued to SMEs selected by applying a stratified random sampling technique. The structural equation modelling utilises a two-step procedure of data analysis. Prior to estimating the structural model, the measurement model is examined for construct validity of the study variables (i.e. convergent and discriminant validity).

The estimates show cognitive evaluation as an important antecedent for expectation which is shaped primarily by the entrepreneurs’ beliefs (perception) and also influenced by the owners’ innovativeness and culture. Culture further influences expectation. The study finds that facilitating condition, environmental pressure and country readiness are important antecedents of expectation and ICT use. The results also reveal that integration and the degree of ICT utilisation significantly affect SMEs’ performance. Surprisingly, the findings do not reveal any significant impact of ICT usage on performance which apparently suggests the possibility of the ICT productivity paradox. However, the analysis finally proves the non-existence of the paradox by demonstrating the mediating role of ICT integration and degree of utilisation explain the influence of information technology (IT) usage on firm performance which is consistent with the resource-based theory. The results suggest that the use of ICT can enhance SMEs’ performance if the technology is integrated and properly utilised. SME owners or managers, interested stakeholders and policy makers may follow the study’s outcomes and focus on ICT integration and degree of utilisation with a view to attaining superior organisational performance.

This study urges concerned business enterprises and government to look at the environmental and cultural factors with a view to achieving ICT usage success in terms of enhanced firm performance. In particular, improving organisational practices and procedures by eliminating the traditional power distance inside organisations and implementing necessary rules and regulations are important actions for managing environmental and cultural uncertainties. The application of a Bengali user interface may help to ensure the productivity of ICT use by SMEs in Bangladesh. Establishing a favourable national technology infrastructure and legal environment may contribute positively to improving the overall situation. This study also suggests some changes and modifications in the country’s existing policies and strategies. The government and policy makers should undertake mass promotional programs to disseminate information about the various uses of computers and their contribution in developing better organisational performance. Organising specialised training programs for SME capacity building may succeed in attaining the motivation for SMEs to use ICT. Ensuring easy access to the technology by providing loans, grants and subsidies is important. Various stakeholders, partners and related organisations should come forward to support government policies and priorities in order to ensure the productive use of ICT among SMEs which finally will help to foster Bangladesh’s economic development.

Based on the institutionalized agency theory, this paper aims to analyses the role of earnings management (EM) in mediating the relationship between ownership structure (OS) and the cost of equity capital (COE).

The authors test the above relationship by investigating a sample of 249 European non-financial listed companies during 2005-2012. The authors adopt different measures for both EM and COE and identify three main types of ownership by the majority share of the ultimate owners. Path analysis is used to explore the role of direct, mediated (i.e. EM) and total effects of OS on COE.

While OS directly affects COE, the results support the idea that an EM-mediating effect contributes to further explain this relationship in some ownership structures. Particularly European listed family-owned firms experience lower COE owing to the prevailing direct and negative effect of OS, despite the fact that both accrual and real EM mediate and have a positive effect on COE. In financial institutions-owned firms, only a direct and positive effect can be observed on COE while state-owned firms do not have a direct influence on the COE, although they do reduce real EM, which, in turn, decreases the COE in a mediated effect. Further analysis comparing the Anglo-Saxon context with Continental Europe shows more detailed results.

The study marks its entry into the international debate on the evolution in the value relevance of accounting information by arguing that the COE implications of EM depend on institutional factors such as OS and the context investigated.

The paper contributes to extant finance, accounting and corporate governance literature by providing new, robust evidence on the mediating role of EM in defining COE for different ownership types and their diverse risk-taking propensities in Continental Europe, which differs from the Anglo-Saxon context both institutionally and legally.

The current study provides new insights into the relationships between knowledge development (KD) and sustainable supply chain performance (SSCP) by exploring the mediating effects of entrepreneurial orientation (EO) in terms of innovativeness, proactiveness and risk taking.

Data were collected by questionnaire survey from 242 manufacturing organizations. Structural equation modeling (SEM) was used to test the hypotheses.

The results reveal that innovativeness and proactiveness have full mediating effects on the relationship between KD and SSCP. Though KD is negatively related to risk taking and has insignificant indirect effect on SSCP via risk taking, the mediating effect of risk taking remains moderate positive on the relationship between KD and SSCP.

Given that the current study focuses on manufacturing sector, future research is needed for more comparative studies conducted in different sectors and cultural contexts. The negative link between KD and risk taking also warrants future investigation.

Organizations may reduce their level of risk taking due to the increase in KD. However, in order to enhance SSCP, risk taking is still needed as it mediates the relationship between KD and SSCP.

The mediating effects of innovativeness, proactiveness and risk taking on the relationship between KD and SSCP are unknown. Current study aims to address this gap.

Leadership for learning emerged as an integrated leadership framework; however, attempts to establish an empirical measurement model have been limited. Critically, not much is known about how much teachers' beliefs (e.g. self-efficacy) can mediate leadership for learning impact on teacher behaviors. This study establishes a leadership for learning measurement model and examines whether teacher self-efficacy mediates the effect of leadership for learning tasks on teacher collaboration, instructional quality, intention to leave current schools and their confidence in equitable teaching practice.

Drawing on the most recent 2018 Teaching and Learning International Survey (TALIS), the study employed a structural equation modeling mediation approach.

Results suggested that teacher self-efficacy statistically significantly mediated 16 out of 20 of the relationships between leadership for learning task domains and teacher outcomes. Especially, in explaining the variance in instructional quality and teacher confidence in implementing equitable teaching practices, considerable proportions of the predictive power of leadership for learning tasks were accounted for (i.e. mediated) by teacher self-efficacy.

School-wide efforts to craft the school vision for learning must be coupled with enhancing teacher self-efficacy. Critically, leadership efforts may fall short of implementing equitable teaching practice and quality instruction without addressing teacher confidence in their ability in instruction, classroom management and student engagement.

This study is the first of its kind to evidence teacher self-efficacy mediates leadership for learning practice impact on teacher behaviors.

The purpose of this study is to identify the causal relationship among informal learning, leader-member exchange (LMX), empowerment, job characteristics and job self-efficacy and the impact on administrative assistants in corporations. The study aims at providing information for administrative assistants who have worked with their current supervisors for more than one year in a one-to-one administrative assistant role in corporations.

To ensure the reliability and validity of the questions, statistical analysis was performed using SPSS 18.0. AMOS 18.0 was also used to estimate the causal relationship of the proposed research model.

The analyses show the following results. Indirect factor loading of LMX and empowerment to informal learning and direct factor loading of job characteristics and job self-efficacy were observed. In the relationship between LMX and informal learning, empowerment had a negative mediating effect and job self-efficacy had a positive mediating effect. In the relationship between empowerment and informal learning, job self-efficacy and job characteristics both had a mediating effect. However, job self-efficacy did not have a mediating effect in the relationship between job characteristics and informal learning.

When considering informal learning, planners should consider both individual characteristics and organizational characteristics. However, informal learning is not directly correlated to the impact of factors related to the executives and organization itself, but rather linked to individual and job characteristics. Hence, promoting job self-efficacy not only requires the individual efforts of employees but also a systematic strategy at the corporate level.

This study aims to identify the effects of innovation types on the service firm’s financial and nonfinancial performance as well as mediation and moderation effects of innovation and the firms’ performance linkages in the Indian service sector.

This study uses combined data from the World Bank innovation survey 2014 and World Bank enterprise survey (WBES) 2014 for India. It classified innovations into technological innovation (service and process) and nontechnological innovation (organizational and marketing) and used financial and nonfinancial performance measures. This study applies variance-based partial least square structural equation modeling (PLS-SEM) using Smart PLS 3 software.

The study results suggest that service innovation has the highest significant effect on a firm’s financial and nonfinancial performance, followed by process innovation. Marketing and organizational innovation have a long route to contribute to a firm’s financial performance via innovative and nonfinancial performance. The study results do not find any synergy effects of innovation types. Multi-group analysis (MGA) results suggest several significant distinctions in the path relationships between small and medium-sizes and large firms.

This study provides several crucial policy suggestions for the managers and policymakers concerning the effects of service and process innovation on service firms’ performance in India and the mediating factors of these relationships. The study suggests that managers should pay the highest importance to service innovation to swiftly and markedly surge service firms’ financial and nonfinancial performances. In contrast, a service firm’s innovative performance mainly results from its organizational and marketing innovations.

Analyze the importance of sustainable innovation strategy applied in manufacturing companies in Indonesia which affects the company's financial performance through several mediating variables.

The population in this research was medium and large manufacturing company business units in East Java. Business units are part of a company considered as the profit center. The business unit as the unit of analysis in this research is part of the organization that: (1) is responsible for the production and marketing of a product or set of products; (2) is formed by product type; (3) has its own competitors which are different from competitors of other business units or divisions within a parent company; (4) has a manager who is responsible and has authority over the planning and implementation of strategies to achieve the specified profit target.

Innovation strategy has a significant effect on financial performance. Human capital does not significantly mediate the relationship between innovation strategy and financial performance. Capital performance and internal performance do not mediate the relationship between innovation strategy and financial performance. Management accounting information system does not mediate the relationship between innovation strategy and financial performance. Internal process performance mediates the relationship between innovation strategy and financial performance. Management accounting information system and internal process performance mediate the relationship between innovation strategy and financial performance.

The difference in findings confirms that this research needs to be conducted. On the other hand, there is no research that has comprehensively tested the mediating effects of Human Capital and Management Accounting Information System in the relationship between Innovation Strategy and Internal Process Performance and the Impact on Corporate Financial Performance. The originality of this research can be seen in the use of contingency theory which narrows the gap between the industrial organization (I/O) paradigm and the resource-based view (RBV) regarding competitive advantage and performance. Specifically, this research introduces innovation strategy, human capital, management accounting information system, and internal business process performance as the contingency factors that affect financial performance. Second, empirically, this research tries to reduce the gap in empirical research by offering new research model and new research establishment at the level of strategic business units (SBU) in manufacturing companies in East Java. This research is expected to be useful for policy decision making, especially for managers who want to improve strategic business unit's financial performance.