Understanding the links among innovation performance, market performance and financial performance

2016 ◽  
Vol 11 (3) ◽  
pp. 605-631 ◽  
Author(s):  
Osman Gök ◽  
Sinem Peker
Keyword(s):  
Financial Performance ◽  
Market Performance ◽  
Innovation Performance

scholarly journals The Effect of Responsive and Proactive Market Orientation on Product Innovation and Company Performance: A Case Study on MSMEs in the Culinary Field in D.I. Yogyakarta

2019 ◽  
Vol 3 (1) ◽  
pp. 32
Author(s):  
A’bdul Fatach Ichwan ◽  
Siti Nursyamsiah
Keyword(s):  
Financial Performance ◽  
Market Orientation ◽  
Product Innovation ◽  
Structural Equation ◽  
Market Performance ◽  
Sampling Technique ◽  
Positive Influence ◽  
Innovation Performance ◽  
Company Performance ◽  
Proactive Market Orientation

This study aims to determine the effect of Responsive and Proactive Market Orientation on Product Innovation and Company Performance. The population in this study is the Micro, Small, and Medium Enterprise (MSME) in the Culinary Division at D.I. Yogyakarta and use 200 respondents as a sample. By using convenience sampling technique, the researchers have the freedom to choose any culinary MSME found around D.I. Yogyakarta to be the respondent. Hypothesis testing using Structural Equation Model (SEM) analysis. The findings show that there is a positive influence of responsive market orientation on product innovation performance, proactive market orientation on product innovation performance, product innovation performance on the company's market performance, and the company's market performance on the company's financial performance. The findings of this study contribute to MSMEs that information about market orientation adopted by business actors or companies can affect the performance of new product innovations in the market to improve the company's market performance which then affects the company's financial performance.  

The effect of the board of directors on the performance: Case of Tunisian banks

2020 ◽  
Vol 2 (2) ◽  
pp. 8-17
Author(s):  
Abdelkader Derbali ◽  
Lamia Jamel ◽  
Ali Lamouchi ◽  
Ahmed K Elnagar ◽  
Monia Ben Ltaifa
Keyword(s):  
Financial Performance ◽  
Board Of Directors ◽  
Stock Exchange ◽  
Market Performance ◽  
Outside Directors ◽  
Return On Equity ◽  
Satisfactory Outcome ◽  
Stock Market Performance ◽  
The Board Of Directors ◽  
Negative Effect

The board of directors plays a crucial role as an internal structure of corporate governance. Certainly, its efficiency is needy on the existence of numerous issues; the greatest significance is correlated to its characteristics that relay principally to the individuality of its memberships, board dimension, combining the purposes of pronouncement and regulator as well the grade of the individuality of the audit board and the diverse gender of the committee. To assess the authenticity of our assumptions, which stipulate the presence of deterministic characteristics of the committee on the profitability of Tunisian banks, we evaluated by three different ratios i.e., ROA (return on asset), ROE (return on equity), and MP (market performance); and we estimate three models with linear regressions. The empirical findings were performed on a data sample composed of 11 Tunisian banks listed on the Stock Exchange of Tunisia (SET) during the period from 1999 to 2018. From the estimated regressions, we find a satisfactory outcome indicating the significance of the influence of the characteristics of the committee on the banking performance in Tunisia. Then, the percentage of outside directors negatively affects the level of the financial performance of banks. The number of institutional administrators performs an essential role in improving financial performance. Finally, the duality of the Presidency of the Council General-Directorate has a negative effect on the level of stock market performance of Tunisian banks.

scholarly journals Effects of Emerging-Economy Firms’ Knowledge Acquisition from an Advanced International Joint Venture Partner on Their Financial Performance Based on the Open Innovation Perspective

2021 ◽  
Vol 7 (1) ◽  
pp. 67
Author(s):  
Choo Yeon Kim ◽  
Eun-Hwa Seo ◽  
Canisha Booranabanyat ◽  
Kwangsoo Kim
Keyword(s):  
Financial Performance ◽  
Knowledge Acquisition ◽  
Absorptive Capacity ◽  
Open Innovation ◽  
Joint Venture ◽  
Emerging Economy ◽  
Innovation Performance ◽  
Mediation Effect ◽  
International Joint Venture ◽  
International Joint

Although emerging-economy firms (E-E firms) must have a keen interest in improving their performance by utilizing knowledge transferred from their advanced international joint venture (IJV) partner, there has been little research on the performance implications of E-E firms’ knowledge transferred from their advanced IJV partner. So, drawing on open innovation and organizational learning perspectives, we examine whether, how, and when E-E firms’ knowledge acquisition from their IJV partner has a positive impact on their financial performance. Based on data collected from 127 Thai manufacturing firms with a local IJV partnered with an advanced overseas firm, our results reveal that E-E firms’ knowledge acquisition from their IJV partner has an overall positive influence on their financial performance in terms of growth and profitability. Our results further show that innovation performance mediates the relationship between E-E firms’ knowledge acquisition and their financial performance based on a moderated mediation analysis including innovation performance as a mediator and absorptive capacity as a moderator. It is also found that the positive mediation effect of innovation performance is more pronounced in the presence of higher absorptive capacity than otherwise. That is, our results show that even among E-E firms which have acquired much knowledge from their IJV partner, those with higher absorptive capacity achieve better innovation performance than those with lower absorptive capacity, and improved innovation performance subsequently contributes to producing superior financial performance. The key conclusions, implications, and limitations of our study are presented based on these findings.

scholarly journals An industry analysis of the power of human capital for corporate performance: Evidence from South Africa

2015 ◽  
Vol 18 (4) ◽  
pp. 486-499 ◽  
Author(s):  
Carla Morris
Keyword(s):  
South Africa ◽  
Human Capital ◽  
Financial Performance ◽  
Market Performance ◽  
Value Added ◽  
Further Education ◽  
Bottom Line ◽  
Revenue Growth ◽  
Earnings Per Share ◽  
Capital Efficiency

Even in industrialised emerging economies, the value-generating competencies of a workforce, known as its human capital efficiency, are a key resource for commercial success. The objective of this research is to empirically investigate the relationship between human capital efficiency (as measured by value-added human capital) and the financial and market performance of companies listed on the Main Board and Alternative Exchange (ALT-X) of the Johannesburg Stock Exchange. Return on assets, revenue growth and headline earnings per share were used as financial performance indicators; while market-to-book ratio and total share return were used to measure market performance. Multivariate regressions were performed, with panel data covering 390 companies in the financial, basic materials, consumer services, consumer goods, industrial and technology industries from 2001 to 2011. First, human capital efficiency was found to have no effect on the market performance of listed companies in South Africa. Secondly, higher human capital efficiency was found to result in the extraction of greater returns from both tangible and intangible assets in all industries. Thirdly, higher profitability was found to be associated with higher human capital efficiency in almost every industry in South Africa, with the exception of the technology industry, where human capital efficiency was found to be independent of headline earnings per share. Finally, higher revenue growth was found to be positively associated with human capital efficiency in those industries which are not consumer-driven. In the consumer-driven industries, human capital efficiency contributes to bottom line profitability even though it is not a driver for revenue growth. Overall, the results of this study confirm that human capital efficiency enhances a company’s financial performance, whether it be through a greater capacity for production and service delivery, tighter cost controls or better use of company resources. Management in all South African industries are encouraged to develop the value-creating abilities of their employees through employer-driven personnel enrichment and training programs and by incentivising workers to pursue further education.

Intellectual capital and performance of Islamic and conventional banking

2019 ◽  
Vol 38 (7) ◽  
pp. 518-537 ◽  
Author(s):  
Amina Buallay
Keyword(s):  
Financial Performance ◽  
Intellectual Capital ◽  
Positive Relationship ◽  
Banking Sector ◽  
Market Performance ◽  
Value Added ◽  
High Tech ◽  
Islamic Banks ◽  
Content Type ◽  
Conventional Banks

Purpose Intellectual capital (IC) is considered as a lifeblood of the high-tech and knowledge-based sectors. Therefore, there is a great need to highlight the importance of IC in the banking sector. Since the banking sector in the gulf countries is mainly based on Islamic and conventional banking, the purpose of this paper is to provide a comparative empirical analysis between IC efficiency in Islamic and conventional banks, and its impacts on a bank’s operational, financial and market performance. Design/methodology/approach This study examined 59 banks for five years to end up with 295 observations. The independent variable is the modified value added IC components; the dependent variables are performance indicators (return on assets, return on equity and Tobin’s Q). Two control variables are utilized in this study: bank-specific and macroeconomic. Findings The findings deduced from the empirical results demonstrate that there is a positive relationship between IC efficiency and financial performance (ROE) and market performance (TQ) in Islamic banks. However, in conventional banks, there is a positive relationship between IC and operational performance (ROE) and financial performance (ROE). Originality/value The results of this study can be used to present a successful model for the Islamic and conventional banks to concentrate more on the role of IC in enhancing the bank’s performance. In addition, the results of this study may provide a wake-up call for Islamic banks to examine the reasons for the imperfect relationship between the IC and asset efficiency (ROA), as well as for conventional banks to examine the reasons for an imperfect relationship between the IC and market value (TQ).

scholarly journals Do corporate sustainability practices enhance organizational economic performance?

2015 ◽  
Vol 7 (2/3) ◽  
pp. 184-200 ◽  
Author(s):  
Matjaž Maletic ◽  
Damjan Maletic ◽  
Jens Dahlgaard ◽  
Su Mi Dahlgaard-Park ◽  
Boštjan Gomišcek
Keyword(s):  
Organizational Development ◽  
Indirect Effects ◽  
Large Scale ◽  
Corporate Sustainability ◽  
Market Performance ◽  
Innovation Performance ◽  
Mediation Effect ◽  
Content Type ◽  
Mediated Effects ◽  
Sustainability Practices

Purpose – The purpose of this study is to clarify the relation between sustainability practices and financial and market performance, and also, the role of non-financial performance outputs in this relation. Corporate sustainability is a growing area of importance for organizational development. Managing sustainability practices successfully is an imperative in achieving competitive advantage. Design/methodology/approach – Using empirical data based on a large-scale survey among organizations in five countries (i.e. Germany, Poland, Serbia, Slovenia and Spain), this paper utilized mediation analysis to estimate and test the mediated effects in a multiple mediator model. As such, the sizes of indirect effects of sustainability practices on financial and market performance through potential mediators were estimated. Findings – The results showed that innovation performance exerts a mediation effect in the relation between sustainability practices and financial and market performance. The main conclusion is that a greater engagement in sustainability practices leads to an increased innovation performance, which in turn leads to financial and market performance. Originality/value – This paper is one of the first attempts to empirically validate sustainability exploitation and sustainability exploration practices. Besides, the analysis of the direct and indirect effects of sustainability exploration and sustainability exploitation practices on financial and market performance has not been yet addressed to a great extent.

scholarly journals Efficiency Analysis of Equity Incentive in Private Listed Companies-By Taking the Example of By-Health

2018 ◽  
Vol 4 (4) ◽  
pp. 15
Author(s):  
Junda Yang ◽  
Yun Xia ◽  
Liu Yang ◽  
Zhongtao Zhang
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Market Performance ◽  
Listed Companies ◽  
Governance Structure ◽  
Efficiency Analysis ◽  
Equity Structure ◽  
Corporate Governance Structure ◽  
Equity Incentives ◽  
Equity Incentive

At present, more and more private listed companies in our country realize the importance of corporate governance structure and equity structure, and also start to adopt a variety of equity incentive models to stimulate the business operators. How to evaluate the effect of private listed company's equity incentive measures? By taking the example of By-Health, this paper analyzes the effect of implementing equity incentive from financial performance, manager's behavior and market performance from three aspects: financial performance, manager's behavior and market performance, and puts forward relevant suggestions. With a view to providing useful reference and reference for improving the management of private enterprises and implementing equity incentives smoothly.

scholarly journals ANALISA PENGARUH INTELLECTUAL CAPITAL TERHADAP KINERJA PASAR DAN KINERJA KEUANGAN PADA PERUSAHAAN LQ45 YANG TERDAFTAR DI BURSA EFEK INDONESIA PERIODE TAHUN 2010-2013

2017 ◽  
Vol 9 (1) ◽  
pp. 133
Author(s):  
Siti Nurhayati
Keyword(s):  
Panel Data ◽  
Financial Performance ◽  
Intellectual Capital ◽  
Sampling Method ◽  
Stock Exchange ◽  
Market Performance ◽  
Return On Assets ◽  
Purposive Sampling ◽  
Panel Data Regression ◽  
Data Regression

Abstract.The study aims to examine the effect of Intellectual Capital on Market Performance and Financial Performance in the LQ45 companies. It uses the sample of LQ45 companies listed on Indonesia Stock Exchange during the period 2010-2013. The sample is determined by using Purposive Sampling method. The study conducts 72 observations of 18 samples of the companies. The hypothesis is tested using Panel Data Regression. The study indicates that the Intellectual Capital (VAIC) and VACA of companies significantly influence market performance (Tobins'Q) and financial performance of Return on Assets (ROA) and Assets Turnover (ATO). VAHU significantly effects on the financial performance of Return on Assets (ROA) and STVA significantly effects on the financial performance of Assets Turnover (ATO). Meanwhile, VAHU has no significant effect on the market performance (Tobins'Q) and financial performance of Assets Turnover (ATO). And STVA has no significant effect on the market performance (Tobins'Q) and financial performance of Return on Assets (ROA).Keywords: intellectual capital; lq45; market performance; financial performance; tobins'q; return on assets; assets turnover.Abstrak. Penelitian ini bertujuan untuk menguji pengaruh Intellectual Capital terhadap Kinerja Pasar dan Kinerja Keuangan pada Perusahaan LQ45.Penelitian ini menggunakan sampel perusahaan LQ45 yang terdaftar di Bursa Efek Indonesia selama periode 2010-2013.Sampel ditentukan dengan menggunakan metode Purposive Sampling.Penelitian ini memiliki 72 amatan dari 18 sampel perusahaan.Dalam penelitian ini, hipotesis diuji dengan menggunakan Regresi Data Panel. Penelitian menunjukkan bahwa Intellectual Capital (VAIC) dan VACA perusahaan berpengaruh signifikan terhadap kinerja pasar (Tobins’Q) dan kinerja keuangan Return on Asset (ROA) dan Assets Turnover (ATO). VAHU berpengaruh signifikan terhadap kinerja keuangan Return on Asset (ROA) dan STVA berpengaruh signifikan terhadap kinerja keuangan Assets Turnover (ATO). Sedangkan VAHU tidak berpengaruh signifikan terhadap kinerja pasar (Tobins’Q) dan kinerja keuangan Assets Turnover (ATO). Dan STVA tidak berpengaruh signifikan terhadap kinerja pasar (Tobins’Q) dan kinerja keuangan Return on Asset(ROA).Kata kunci: intellectual capital; perusahaan lq45; kinerja pasar;  kinerja keuangan, tobins’q; return on assets; assets turnover.

Sign in / Sign up

Export Citation Format

Share Document