Measuring the effectiveness of managerial action in SMEs

2007 ◽  
Vol 30 (12) ◽  
pp. 892-914 ◽  
Author(s):  
Glenn A. Metts
Keyword(s):  
Indirect Effects ◽  
Equation Modeling ◽  
Direct And Indirect Effects ◽  
Manufacturing Companies ◽  
Automotive Manufacturing ◽  
Content Type ◽  
Managerial Action ◽  
The Impact ◽  
Competitive Forces ◽  
Strategy Making

PurposeThe paper's purpose is to investigate the direct and indirect effects of industry competitive forces on strategy‐making and performance in small‐to‐medium‐sized manufacturing companies.Design/methodology/approachThe paper's approach is a survey design with structural equation modeling used for hypotheses testing.FindingsThe findings provide strong support for the mitigating role of managerial action through the strategy‐making process and indications that this is true regardless of small‐to‐medium‐sized enterprise (SME) size. Also, automotive‐manufacturing SMEs seem to exhibit higher levels of competitive factors compared with non‐automotive manufacturing SMEs.Research limitations/implicationsThe major limitation of this research is that the survey was taken in the Mid‐western USA and involved only SME manufacturing organizations. The research should be extended to other geographic regions, industry types, and larger organizations.Practical implicationsMany small company managers feel that they have little impact on industry‐wide macro‐economic and industry‐specific forces. This research indicates that managers in SMEs can mitigate some of the negative effects of industry competitive factors through strategy‐making activities.Originality/valueThis research is unique in several ways. It is the only research that has clearly identified and successfully measured the impact of managerial action in SMEs. It demonstrates that managerial action can be measured by comparing the direct and indirect effects of industry competitive forces on performance. It further identifies the need for a self‐assessment tool to measure the effectiveness of managerial action of top managers in SMEs.

scholarly journals The impact of epidemics on agricultural production and forecast of COVID-19

2020 ◽  
Vol 12 (3) ◽  
pp. 409-425 ◽  
Author(s):  
Shurui Zhang ◽  
Shuo Wang ◽  
Lingran Yuan ◽  
Xiaoguang Liu ◽  
Binlei Gong
Keyword(s):  
Indirect Effects ◽  
Agricultural Production ◽  
Negative Impact ◽  
Spillover Effects ◽  
Control Measures ◽  
Growth Accounting ◽  
Direct And Indirect Effects ◽  
Content Type ◽  
Dynamic Panel Model ◽  
The Impact

PurposeThis article investigates the mechanism of the direct and indirect effects of epidemics on agricultural production and projects the impact of COVID-19 on agricultural output in China.Design/methodology/approachThis article first adopts a dynamic panel model and spatial Durbin model to estimate the direct and indirect effects, followed by a growth accounting method to identify the channels by which epidemics affect agriculture; finally, it projects the overall impact of COVID-19 on agriculture.FindingsThe incidence rate of epidemics in a province has a negative impact on that province's own agricultural productivity, but the increase in the input factors (land, fertilizer and machinery) can make up for the loss and thus lead to insignificant direct effects. However, this “input-offset-productivity” mechanism fails to radiate to the surrounding provinces and therefore leads to significant indirect/spillover effects. It is projected that COVID-19 will lower China's agricultural growth rate by 0.4%–2.0% in 2020 under different scenarios.Research limitations/implicationsIt is crucial to establish a timely disclosure and sharing system of epidemic information across provinces, improve the support and resilience of agricultural production in the short run and accelerate the process of agricultural modernization in the long run.Originality/valueConsidering the infectivity of epidemics, this article evaluates the mechanism of the direct and indirect effects by introducing a spatial dynamic model into the growth accounting framework. Moreover, besides the impact on input portfolio and productivity, this article also investigates whether epidemics reshape agricultural production processes due to panic effects and control measures.

scholarly journals The effectiveness of government policies for export promotion on the export performance of SMEs Cocoa exporters in Cameroon

2018 ◽  
Vol 35 (1) ◽  
pp. 164-185 ◽  
Author(s):  
Sam Zisuh Njinyah
Keyword(s):  
Indirect Effects ◽  
Export Performance ◽  
Export Promotion ◽  
Government Policies ◽  
Equation Modeling ◽  
Medium Size ◽  
Direct And Indirect Effects ◽  
Content Type ◽  
The Government ◽  
Marketing Information

Purpose The purpose of this paper is to examine the significance of the direct and indirect effects (through country and firm’s specific advantages) of government policies for export promotion (GPEP) on the export performance of small and medium-size enterprise (SME) Cocoa exporters in Cameroon. Design/methodology/approach To test the proposed model, data were obtained through self-administered questionnaires using snowball sampling technique to 101 SME Cocoa exporters. This was analyzed using structural equation modeling (SEM) techniques to examine both the direct and indirect effects of GPEP on the export performance of SME Cocoa exporters in the South and Centre Regions of Cameroon. Findings The findings suggest that GPEP had both direct and indirect effects on the export performance of SME Cocoa exporters. Direct effect was on the usage of GPEP which reduces operating cost and increase performance. The indirect effects were through the provision of country and firms specific advantages. However, the only significant path was through the provision of export marketing information. Research limitations/implications The research is limited to one country, one sector, and two regions and does not take into consideration other factors that may influence the effect of GPEP, country, and firms specific advantages on export performance. Moreover, the non-significant paths should be interpreted with caution and further testing required in a different context. Practical implications Empirical findings are relevant for the government and SME Cocoa exporters. It informs the government about the effectiveness of GPEP and the need to disseminate marketing information using every possible medium best understood by the SMEs. It suggests an opportunity for engagement of both SMEs and government authorities in accessing the outcome of GPEP which will increase transparency, awareness, usage, and export performance. Originality/value The research has successfully developed and tested a model for analyzing the direct and indirect effects of GPEP on export performance based on the resource-based view and SEM in a context where there is a call for more empirical and theoretical work on export performance due to limited studies. The framework reveals positive effects of GPEP, country, and firms’ specific advantages as determinants of export performance.

Supplier flexibility and performance: an empirical research

2020 ◽  
Vol 26 (7) ◽  
pp. 1851-1870
Author(s):  
Asuman Üstündağ ◽  
Mustafa C. Ungan
Keyword(s):  
Literature Review ◽  
Information Exchange ◽  
Structural Equation ◽  
Equation Modeling ◽  
Manufacturing Companies ◽  
Chain Flexibility ◽  
Content Type ◽  
Factors Affecting ◽  
Supplier Performance ◽  
The Impact

PurposeA literature review conducted for this study showed that although different aspects of supply chain flexibility have been studied, research on the factors affecting supplier flexibility and the impact of supplier flexibility on supplier performance are conspicuously absent. The present study aims to fill in this gap in the literature.Design/methodology/approachA quantitative research design was adopted. Data were collected from 119 manufacturing companies operating in Turkey and analyzed by structural equation modeling.FindingsThe findings show that supplier flexibility is associated with environmental uncertainty, relationships with the buyer and the quality of information shared between the buyer and the supplier, but not with the level of information shared between the buyer and the supplier. The findings also indicate that supplier flexibility affects supplier performance.Research limitations/implicationsThe generalizability of the findings can be considered as a limitation. In the future, sector-based larger-scale studies are desirable. Also, data can be collected from both the main business and suppliers and findings may be compared.Practical implicationsThe findings of this study help decision-makers to make more informed decisions about information exchange, supplier relationships and environmental uncertainties depending on the degree of flexibility that they request from their suppliers.Originality/valueA literature review for this study indicated that there is a lack of research on the factors affecting supplier flexibility. Therefore, this research is expected to make an original contribution to the literature.

scholarly journals Linking Corporate Environmental Performance to Financial Performance of Pakistani Firms: The Roles of Technological capability and Public awareness

2020 ◽  
Vol 12 (4) ◽  
pp. 1446
Author(s):  
Weiwei Wu ◽  
Rizwan Ullah ◽  
Syed Jamal Shah
Keyword(s):  
Financial Performance ◽  
Indirect Effect ◽  
Indirect Effects ◽  
Environmental Performance ◽  
Public Awareness ◽  
Technological Capability ◽  
Direct And Indirect Effects ◽  
Corporate Environmental Performance ◽  
Manufacturing Companies ◽  
The Impact

This research investigates the corporate environmental performance (CEP) literature toward its financial performance of the firm. CEP is defined as the exercise and practices of companies to choose sensible measures to save and develop environment-friendly green activities. The influence of CEP on the financial performance of the firm via technological capability was examined. Furthermore, public awareness was hypothesized to moderate the impact of CEP on technological capability indicating moderation mediation. When public awareness was high, the relationship between the CEP and technological capability should be stronger. Content analysis was used for data collection. The model was tested using a sample of 1491 observations from the manufacturing companies of Pakistan. The data were collected between the period 2008 and 2017 from the annual reports of the companies, State Bank of Pakistan, and Pakistan Stock exchange. A hierarchical regression analysis was used for data analysis. Using bootstrap analysis, we used model 8 in Stata to examine conditional direct and indirect effects. Results supported the indirect effect of CEP on financial performance through strengthening technological capability. Both direct and indirect effects were significant. Consistent with theoretical assumptions, the indirect effect becomes stronger with high public awareness and diminished with low public awareness. Both theoretical and practical contributions are discussed based on the outcomes.

Disentangling direct and indirect effects of credence labels

2014 ◽  
Vol 116 (6) ◽  
pp. 931-951 ◽  
Author(s):  
Domenico Dentoni ◽  
Glynn T. Tonsor ◽  
Roger Calantone ◽  
H. Christopher Peterson
Keyword(s):  
Animal Welfare ◽  
Indirect Effects ◽  
Consumer Attitudes ◽  
Direct And Indirect Effects ◽  
Path Modeling ◽  
Content Type ◽  
Usage Frequency ◽  
Consumer Inferences ◽  
Knowledge Usage ◽  
The Impact

Purpose – The purpose of this paper is to disentangle the direct and indirect effects of three credence labels (Australian, animal welfare and grass-fed) on US consumer attitudes toward buying beef steaks. Furthermore, it explores the impact of consumer attribute knowledge, usage frequency, education and opinion strength on the magnitude of direct and indirect effects. Design/methodology/approach – Data are collected through an online experiment with 460 US consumers and analyzed with path modeling. Findings – The Australian label generates a 86 percent negative direct effect vs a 14 percent negative indirect effect on consumer attitudes, which means that US consumers do not make strong inferences to form their attitudes toward buying Australian beef. The animal welfare label generates 50 percent direct and 50 percent indirect effects. The grass-fed label generates only indirect effects (100 percent). The higher consumer education, attribute knowledge, usage frequency, education and opinion strength, the weaker are the indirect effects of credence labels. Research limitations/implications – The study focusses on consumers in one country (USA), one product (beef steak) and one label across three attributes, therefore generalization of results is limited. Practical implications – The study offers a tool to agribusiness managers as well as to policy makers, NGOs and consumer groups to design and assess the effectiveness of communication campaigns attempting to strengthen (or weaken) consumer inferences and attitudes relative to credence labels. Originality/value – Despite the wide literature on consumer inferences based on credence labels, this is the first study that quantitatively disentangles the complex set of inferential effects generated by credence labels and explores common relationships across multiple credence attributes.

Nexus between lean operations, eco-product innovativeness, social, green and business performances: an empirical evidence from Ghanaian manufacturing SMEs

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ebenezer Afum ◽  
Yuan Gao ◽  
Yaw Agyabeng-Mensah ◽  
Zhuo Sun
Keyword(s):  
Indirect Effects ◽  
Business Performance ◽  
Social Performance ◽  
Partial Least Square ◽  
Equation Modeling ◽  
Direct And Indirect Effects ◽  
Product Innovativeness ◽  
Content Type ◽  
Green Performance ◽  
Lean Operations

PurposeThis paper explores the nexus between lean operations, eco-product innovativeness, social performance, green performance and business performance. Both direct and indirect effects are tested among the variables under consideration in this study.Design/methodology/approachData is garnered from 166 Ghanaian small and medium-sized enterprise (SME) manufacturers. All hypothesized relationships are tested using partial least square-structural equation modeling.FindingsThe results suggest that lean operations has a significant positive effect on eco-product innovativeness, social performance, green performance and business performance. The results further indicate that eco-product innovativeness significantly influences green performance and social performance, but does not significantly influence business performance. The mediation procedure performed shows that eco-product innovativeness plays a complementary partial mediation role between lean operations, social performance, green performance and business performance.Practical implicationsThe study provides enough evidence that informs managers that the application of lean operations should be a necessity instead of an afterthought when pursuing their sustainable performance targets. The study specifically enlightens Ghanaian managers and those in similar environs to substantially invest in lean operations to achieve eco-product innovativeness and contribute to the survival of the manufacturing sector.Originality/valueIn addition to expanding lean operations and environmental management literature, the study happens to be among the scant studies that has verified the direct and indirect effects between lean operations, eco-product innovativeness, social, green and business performances.

scholarly journals Examining the Direct and Indirect Effects of Climatic Variables on Plague Dynamics

Atmosphere ◽  
2020 ◽  
Vol 11 (4) ◽  
pp. 388 ◽  
Author(s):  
Ricci P.H. Yue ◽  
Harry F. Lee
Keyword(s):  
Climate Change ◽  
Indirect Effects ◽  
Disease Ecology ◽  
Structural Equation ◽  
Equation Modeling ◽  
Economic Systems ◽  
Direct And Indirect Effects ◽  
Economic Changes ◽  
Climatic Impacts ◽  
The Impact

Climate change can influence infectious disease dynamics both directly, by affecting the disease ecology, and indirectly, through altering economic systems. However, despite that climate-driven human plague dynamics have been extensively studied in recent years, little is known about the relative importance of the direct and indirect effects of climate change on plague outbreak. By using Structural Equation Modeling, we estimated the direct influence of climate change on human plague dynamics and the impact of climate-driven economic change on human plague outbreak. After studying human plague outbreak in Europe during AD1347–1760, we detected no direct climatic effect on plague dynamics; instead, all of the climatic impacts on plague dynamics were indirect, and were operationalized via economic changes. Through a series of sensitivity checks, we further proved that temperature-induced economic changes drove plague dynamics during cold and wet periods, while precipitation-induced economic changes drove plague dynamics during the cold periods. Our results suggest that we should not dismiss the role of economic systems when examining how climate change altered plague dynamics in human history.

The impact of quality management practices on innovation: an empirical research study of Brazilian manufacturing companies

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lillian Do Nascimento Gambi ◽  
Fabiane Letícia Lizarelli ◽  
Alex Ribeiro Rosa Junior ◽  
Harry Boer
Keyword(s):  
Quality Management ◽  
Management Practices ◽  
Partial Least Square ◽  
Innovation Performance ◽  
Equation Modeling ◽  
Manufacturing Companies ◽  
Content Type ◽  
Innovation Practices ◽  
The Impact ◽  
Positive Effect

PurposeThe aim of this study is to investigate the effects of soft and hard quality management (QM) practices on innovation performance, considering innovation practices as a contextual variable mediating this relationship.Design/methodology/approachUsing data from 132 Brazilian manufacturing companies, partial least square–structural equation modeling (PLS–SEM) is employed to test if soft and hard QM practices, directly, affect innovation practices and, indirectly, innovation performance. This investigation also aims to identify whether the relationships are maintained regardless of the size of the company.FindingsThe results suggest that soft QM has a positive effect on hard QM. However, only soft QM, not hard QM, has a significant effect on innovation practices. Additionally, soft QM has a significant positive effect on innovation performance through innovation practices. Company size does not influence the relationships.Practical implicationsThe findings can help managers to adjust their managerial practices to enhance the effective impact of QM on innovation performance.Originality/valueThe previous literature presents conflicting results on the relationship between QM and innovation performance. Most studies have proposed a direct relationship between both constructs. This study considers innovation practices as a mediator in this relationship. Furthermore, this paper adds to the scarce literature reporting related studies conducted in developing countries.

The role of online advertising on purchase intention of smartphones: mediating effects of flow experience and advertising value

2020 ◽  
Vol 3 (3) ◽  
pp. 385-410
Author(s):  
Mohitul Ameen Ahmed Mustafi ◽  
Md Sajjad Hosain
Keyword(s):  
Statistical Analysis ◽  
Indirect Effects ◽  
Purchase Intention ◽  
Online Advertising ◽  
Mediating Effect ◽  
Equation Modeling ◽  
Flow Experience ◽  
Direct And Indirect Effects ◽  
Content Type

PurposeThe paper aims at identifying the role of online advertising on the purchase intention (PI) of smartphones of Bangladeshi customers. The independent variable (online advertising) has been divided into five dimensional segregations: informativeness (INFO), irritation (IRR), entertainment (ENT), incentives (INC) and credibility (CRD). For increasing the value of investigation to further extent, the authors included two mediators termed as flow experience (FE) and advertising value (ADD).Design/methodology/approachThe study has been conducted on primary data collected through a structured questionnaire received from a valid sample of 281 smartphone users selected on a random basis. SPSS (Version 24) has been used for descriptive statistical analysis, while structural equation modeling technique (utilizing AMOS 24) has been used to test the hypothetical relationships among the variables.FindingsAfter a careful and bias-free statistical analysis, the results indicate that purchase intention is positively and significantly affected by all the independent components INFO, IRR, ENT, INC and CRD. Regarding the mediating effect, FE can partially mediate the relationships between IRR and PI and ENT and PI as both the direct and indirect effects are significant. On the other hand, ADD can partially mediate the relationships between IRR and PI and INC and PI, respectively, since both the direct and indirect effects are significant.Research limitations/implicationsThis empirical study is expected to be beneficial for the academicians in finding some unique dimensional aspects regarding online advertising and purchase intentions.Practical implicationsThe policymakers can formulate some unique online advertising policies with a view to identifying customer psychology and increase sales volume based on the findings.Originality/valueSmartphone market in Bangladesh is growing steadily. This empirical paper has shed some lights on the unique role of online advertising on PI of smartphones of Bangladeshi customer base. Since the market scenario in Bangladesh is somewhat unique than those of Western and Eastern countries, the authors hope that the findings will add numerical theoretical and practical values for further investigation in South Asian markets.

HRD interventions, employee competencies and organizational effectiveness: an empirical study

2016 ◽  
Vol 40 (5) ◽  
pp. 345-365 ◽  
Author(s):  
Rama Krishna Gupta Potnuru ◽  
Chandan Kumar Sahoo
Keyword(s):  
Human Resource Development ◽  
Organizational Effectiveness ◽  
Equation Modeling ◽  
Medium Size ◽  
Research Model ◽  
Manufacturing Companies ◽  
Content Type ◽  
Cement Manufacturing ◽  
Employee Competencies ◽  
The Impact

Purpose The purpose of the study is to examine the impact of human resource development (HRD) interventions on organizational effectiveness by means of employee competencies which are built by some of the selected HRD interventions. Design/methodology/approach An integrated research model has been developed by combining the principal factors from the existing literature. The HRD interventions chosen are training, performance management and career management (development). The validity of the model is tested by applying structural equation modeling (SEM) approach to the information collected from 290 executive and non-executive employees working in two medium size cement manufacturing companies. The reliability and validity of the dimensions are established through confirmatory factor analysis (CFA) and the related hypotheses are tested by using SEM. Findings The result indicates that the selected HRD interventions have an impact on building of employee competencies, which in turn is instrumental in improving organizational effectiveness. Research limitations/implications The research is undertaken in Indian cement manufacturing companies which cannot be generalized across a broader range of sectors and international environment. Practical implications The findings of the study have potential to help decision makers of manufacturing companies to develop strategies which will enable them to improve employee competency, to formulate effective HRD interventions and to enhance the capability of the employees to achieve desired goals and objectives of the organization. Originality/value The research is unique in its attempt to measure employee competencies for organizational effectiveness by combining the existing scales of individual competences. The article contributes to the HRD literature, integrating HRD interventions and employee competencies into a comprehensive research model that influence organizational effectiveness.

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