On the relationship between financial and non-financial factors

2015 ◽  
Vol 75 (2) ◽  
pp. 282-300 ◽  
Author(s):  
Nigel Purves ◽  
Scott James Niblock ◽  
Keith Sloan
Keyword(s):  
Management Decision ◽  
Predictive Capacity ◽  
Classification Rate ◽  
Content Type ◽  
Financial Factors ◽  
Financial Failure ◽  
The Board Of Directors ◽  
Management Decision Making ◽  
The Face ◽  
The Relationship

Purpose – The purpose of this paper is to explore the relationship of non-financial and financial factors to firm survival, provide evidence of factors related to financial success and distress for prominent Australian agricultural firms, and improve the predictive capacity of financial failure models. Design/methodology/approach – The paper utilizes mixed method exploratory case studies across four Australian agricultural firms (two successful and two failed) listed on the Australian Securities Exchange. Findings – The authors found that the use of an Integrated Multi-Measured approach provided a higher classification rate for the failed group than those provided by an individual measure. We also discovered that non-financial factors associated with the agricultural organizations studied impacted their success or failure. These factors included managements’ involvement in organizational strategy and the composition of the board of directors. It was also apparent that management decision-making approaches may become frozen, or at best restricted, in the face of impending failure, dependent upon the stress level within the organization and the management skill base. Practical implications – The cases studied indicated that non-financial factors of failure occurred prior to any financial predictors, intuitively indicating a relationship between non-financial and financial factors in Australian agricultural firms. Originality/value – The identification of financial and non-financial factors and sound internal processes which distinguish successful and failing firms can be utilized for the development of an early warning predictor of organizational success or failure.

Are organizations destined to fail?

2016 ◽  
Vol 39 (1) ◽  
pp. 62-81 ◽  
Author(s):  
Nigel Purves ◽  
Scott Niblock ◽  
Keith Sloan
Keyword(s):  
Case Studies ◽  
Financial Distress ◽  
Global Financial Crisis ◽  
Organizational Success ◽  
Organizational Failure ◽  
Predictive Capacity ◽  
Content Type ◽  
Financial Factors ◽  
Financial Failure ◽  
Failure Models

Purpose – The purpose of this paper is to explore the non-financial causes of organizational success or failure, provide a better understanding of the symptoms of financial distress and improve the predictive capacity of financial failure models. Design/methodology/approach – The paper utilizes exploratory case studies in investigating the relationship of non-financial factors to organizational success or failure across a sample of sector-specific Australian firms listed on the Australian Stock Exchange. A two-tailed study was designed, in which seven cases from both extremes were chosen from three Australian business sectors: finance, property and manufacturing. Findings – Non-financial factors associated with the organizations studied impacted their success or failure. These factors included management skill, experience and involvement in organizational strategy, feedback and resultant activity, together with board of director composition. The identification of financial and non-financial factors and sound internal processes could be utilized for the development of an early warning predictor of organizational success or failure. Research limitations/implications – The use of this method is very time-consuming but is highly valuable in case study research, providing a more in-depth understanding of how non-financial factors impact organizational success or failure. Practical implications – The research will provide a better understanding of the symptoms of financial distress and improve the predictive capacity of financial failure models. The improvement in prediction of organizational failure will reduce the costs of failure to all areas affected, from the large corporation to the small business. The inter-connectivity of all businesses to each other often results in a knock-on effect of failure with the cost being borne by all members of the community in some manner. The level of social impact and cost of failure can only be seen by the enormous costs of the Global Financial Crisis failures. Originality/value – This paper contributes to the literature on effective qualitative research and explores important areas of consideration for those conducting qualitative multiple-case studies. It is intended to be of use to researchers investigating the area of predictors of organizational failure or success.

Predictors of corporate survival in the US and Australia: an exploratory case study

2018 ◽  
Vol 11 (3) ◽  
pp. 351-370 ◽  
Author(s):  
Nigel Purves ◽  
Scott J. Niblock
Keyword(s):  
Manufacturing Sector ◽  
Predictive Ability ◽  
Financial Ratios ◽  
Predictive Capacity ◽  
Classification Rate ◽  
Content Type ◽  
Financial Factors ◽  
Exploratory Case Study ◽  
The Us

Purpose The purpose of this paper is to investigate the relationship of financial ratios and non-financial factors of successful and failed corporations in the USA. Specifically, the authors provide evidence on whether financial ratios and non-financial factors can be jointly included as indicators to improve the predictive capacity of organisational success or failure in different countries and sectors. Design/methodology/approach The paper utilises a mixed method exploratory case study focussing on listed corporations in the US and Australian manufacturing, agriculture, finance and property sectors. Findings The financial ratio findings demonstrate that (with the exception of the failed Australian manufacturing sector) the integrated multi-measure (IMM) ratio approach consistently provides a higher classification rate for the failed and successful groups than those provided by an individual measure. In all cases the IMM method scored higher for US companies (with the exception of the failed Australian property sector). The findings also show that irrespective of the country location or sector, non-financial factors such as board composition and managements’ involvement in organisational strategy impact on a corporation’s success or failure. Practical implications The findings reveal that non-financial factors occur prior to financial ratios when attempting to predict organisational success or failure and the IMM approach enables a more thorough examination of the predictive ability of financial ratios for US and Australian organisations. This intuitively indicates that when combined with financial ratios, non-financial factors may be a useful predictor of corporate success or failure across countries and sectors. Originality/value Sound internal processes and the identification of both financial ratios and non-financial factors can be utilised to improve the reliability of financial failure models, enable corrective and preventative steps to be implemented by management and potentially reduce the costs of failure for US and Australian organisations.

Centralization and Effectiveness of Reward Management in Multinational Enterprises

2018 ◽  
Vol 17 (2) ◽  
pp. 55-65 ◽  
Author(s):  
Michael Tekieli ◽  
Marion Festing ◽  
Xavier Baeten
Keyword(s):  
Decision Making ◽  
Social Identity Theory ◽  
Multinational Enterprises ◽  
Role Identity ◽  
Management Decision ◽  
Role Identities ◽  
Management Decision Making ◽  
New Perspective ◽  
Subsidiary Managers ◽  
The Relationship

Abstract. Based on responses from 158 reward managers located at the headquarters or subsidiaries of multinational enterprises, the present study examines the relationship between the centralization of reward management decision making and its perceived effectiveness in multinational enterprises. Our results show that headquarters managers perceive a centralized approach as being more effective, while for subsidiary managers this relationship is moderated by the manager’s role identity. Referring to social identity theory, the present study enriches the standardization versus localization debate through a new perspective focusing on psychological processes, thereby indicating the importance of in-group favoritism in headquarters and the influence of subsidiary managers’ role identities on reward management decision making.

A proposed grading system for arteriovenous malformations

1986 ◽  
Vol 65 (4) ◽  
pp. 476-483 ◽  
Author(s):  
Robert F. Spetzler ◽  
Neil A. Martin
Keyword(s):  
Venous Drainage ◽  
Neurological Complications ◽  
Management Decision ◽  
Grading System ◽  
Content Type ◽  
Treatment Techniques ◽  
Clinical Series ◽  
Management Decision Making ◽  
Eloquent Cortex ◽  
Fine Print

✓ An important factor in making a recommendation for treatment of a patient with arteriovenous malformation (AVM) is to estimate the risk of surgery for that patient. A simple, broadly applicable grading system that is designed to predict the risk of morbidity and mortality attending the operative treatment of specific AVM's is proposed. The lesion is graded on the basis of size, pattern of venous drainage, and neurological eloquence of adjacent brain. All AVM's fall into one of six grades. Grade I malformations are small, superficial, and located in non-eloquent cortex; Grade V lesions are large, deep, and situated in neurologically critical areas; and Grade VI lesions are essentially inoperable AVM's. Retrospective application of this grading scheme to a series of surgically excised AVM's has demonstrated its correlation with the incidence of postoperative neurological complications. The application of a standardized grading scheme will enable a comparison of results between various clinical series and between different treatment techniques, and will assist in the process of management decision-making.

Theory of value co-creation: a systematic literature review

2014 ◽  
Vol 24 (6) ◽  
pp. 643-683 ◽  
Author(s):  
Marco Galvagno ◽  
Daniele Dalli
Keyword(s):  
Management Decision ◽  
Content Type ◽  
The Past ◽  
Theoretical Perspectives ◽  
Emerging Trends ◽  
Building Management ◽  
Innovation And Technology ◽  
Management Decision Making ◽  
Theory Of Value ◽  
Science Innovation

Purpose – The purpose of this paper is to summarize and classify extant research and to better understand the past, present, and future state of the theory of value co-creation. Its main objectives are: to identify the different theoretical perspectives and research streams that characterize and define the co-creation literature, and to highlight the connections between them; to look for emerging trends and gaps in the literature by comparing the most recent papers with those representing the field's core. Design/methodology/approach – The paper relies on bibliometric data: co-citation techniques were employed to select, analyze, and interpret citation patterns within the co-creation literature. Findings – The paper identified two main clusters, as well as specific research streams and common themes, representing scholarly journals’ publications on co-creation over the past years. These research streams and themes apply three different theoretical perspectives: service science, innovation and technology management, and marketing and consumer research. Data from the most recent publications has been used to verify if and how the original streams and themes are reflected in the contemporary debate. Research limitations/implications – Inevitably, the findings of the analysis have limitations related to the research design, the databases, and the applied bibliometric methods. Practical implications – From a practical perspective, the research impacts on theory building, management decision making, and teaching. Originality/value – This study depicts the remarkable development of the literature on co-creation and shows the latent structure underlying its different research streams. To the best knowledge, this study is the first to determine co-citation frequencies from both the SSCI and Scopus databases.

scholarly journals Manager perceptions of big data reliability in hotel revenue management decision making

2019 ◽  
Vol 36 (1) ◽  
pp. 25-39 ◽  
Author(s):  
David Egan ◽  
Natalie Claire Haynes
Keyword(s):  
Decision Making ◽  
Big Data ◽  
Revenue Management ◽  
Management Decision ◽  
Local Market ◽  
Data Systems ◽  
Local Data ◽  
Content Type ◽  
User Input ◽  
Management Decision Making

PurposeThe purpose of this paper is to investigate the perceptions that managers have of the value and reliability of using big data to make hotel revenue management and pricing decisions.Design/methodology/approachA three-stage iterative thematic analysis technique based on the approaches of Braun and Clarke (2006) and Nowell et al. (2017) and using different research instruments to collect and analyse qualitative data at each stage was used to develop an explanatory framework.FindingsWhilst big data-driven automated revenue systems are technically capable of making pricing and inventory decisions without user input, the findings here show that the reality is that managers still interact with every stage of the revenue and pricing process from data collection to the implementation of price changes. They believe that their personal insights are as valid as big data in increasing the reliability of the decision-making process. This is driven primarily by a lack of trust on the behalf of managers in the ability of the big data systems to understand and interpret local market and customer dynamics.Practical implicationsThe less a manager believes in the ability of those systems to interpret these data, the more they perceive gut instinct to increase the reliability of their decision making and the less they conduct an analysis of the statistical data provided by the systems. This provides a clear message that there appears to be a need for automated revenue systems to be flexible enough for managers to import the local data, information and knowledge that they believe leads to revenue growth.Originality/valueThere is currently little research explicitly investigating the role of big data in decision making within hotel revenue management and certainly even less focussing on decision making at property level and the perceptions of managers of the value of big data in increasing the reliability of revenue and pricing decision making.

scholarly journals Big data and dynamic capabilities: a bibliometric analysis and systematic literature review

2019 ◽  
Vol 57 (8) ◽  
pp. 2052-2068 ◽  
Author(s):  
Riccardo Rialti ◽  
Giacomo Marzi ◽  
Cristiano Ciappei ◽  
Donatella Busso
Keyword(s):  
Big Data ◽  
Literature Review ◽  
Bibliometric Analysis ◽  
Systematic Literature Review ◽  
Dynamic Capabilities ◽  
Process Management ◽  
Big Data Analytics ◽  
Management Decision ◽  
Content Type ◽  
Management Decision Making

Purpose Recently, several manuscripts about the effects of big data on organizations used dynamic capabilities as their main theoretical approach. However, these manuscripts still lack systematization. Consequently, the purpose of this paper is to systematize the literature on big data and dynamic capabilities. Design/methodology/approach A bibliometric analysis was performed on 170 manuscripts extracted from the Clarivate Analytics Web of Science Core Collection database. The bibliometric analysis was integrated with a literature review. Findings The bibliometric analysis revealed four clusters of papers on big data and dynamic capabilities: big data and supply chain management, knowledge management, decision making, business process management and big data analytics. The systematic literature review helped to clarify each clusters’ content. Originality/value To the authors’ best knowledge, minimal attention has been paid to systematizing the literature on big data and dynamic capabilities.

Diving into emerging economies bottleneck: Industry 4.0 and implications for circular economy

2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Luciana Oranges Cezarino ◽  
Lara Bartocci Liboni ◽  
Nelson Oliveira Stefanelli ◽  
Bruno Garcia Oliveira ◽  
Lucas Conde Stocco
Keyword(s):  
Supply Chain ◽  
Emerging Economies ◽  
Circular Economy ◽  
Industry 4.0 ◽  
Emerging Countries ◽  
Management Decision ◽  
Public And Private ◽  
Content Type ◽  
Regulatory Policies ◽  
The Relationship

Purpose In this paper, the authors aim to explore the relationship between the concepts of Industry 4.0 and circular economy (CE) as a contribution to the management decision on emerging countries. By analyzing the trends of scientific production to ascertain the interface of both constructs, the purpose of this paper is to identify limitations for Industry 4.0 and CE implementation in Brazil, as well to present an original framework and strategic pathways to overcome limitations for emerging countries. Design/methodology/approach Supported in the Brazilian case, the authors draw a framework using the structuralism approach to indicate pathways for the strategic positioning of emerging economies that consider their limitation and potential for competitive advantage. By understanding country-related limitations such as social and economic contingencies, the authors conceive a structure of implications for Brazil’s capacity to develop CE in the digital era. Findings Results show that Brazil has a reasonable, institutional and stable environment, as well as strong regulatory policies for solid waste that can stimulate CE in the country. However, it requires more communication between actors, especially public and private institutions, performing long-range relationships. Also, the country requires consolidation of industrial policies and investments in the remanufacturing process in the supply chain. Likewise, despite Brazil’s ability to take advantage of CE’s benefits, the country presents a huge lack of qualification to fulfill the competences that the digitization process demands. Economically, Brazil has been fighting against an economic crisis since 2014 that has limited general investments, especially in the industrial sector. Industry presents low performance and decreasing GDP participation, which leads to constant overseas production transfer as a consequence of the workforce’s high costs. Research limitations/implications The authors can affirm that Brazil is far behind developed countries in searching for the capacity to provide CE through technological industrial change. The main problems are related to the lack of articulation of public and private spheres to promote new digital business models. Therefore, the structured framework enables managers and public agents to provide solutions and to properly address supply chain bottlenecks in emerging economies. Originality/value Exploring the relationship between the concepts of Industry 4.0 and CE through the specific lens of the structuralist method, this work can contribute to the management decision on emerging countries, looking into four important perspectives: political, economic, social and technological.

The effect of maintenance operation, time utility and occupancy to sustainability with transit oriented development moderation

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Makjen Sinaga ◽  
Suharyono Suharyono ◽  
Muhammad Al Musadieq ◽  
Mohammad Iqbal
Keyword(s):  
Structural Equation ◽  
Quantitative Research ◽  
Operation Time ◽  
Sampling Technique ◽  
Equation Model ◽  
Primary Data ◽  
Transit Oriented Development ◽  
Content Type ◽  
The Board Of Directors ◽  
The Relationship

PurposeThis study aims to test and analyze the effect of maintenance operation, time utility and occupancy on sustainability with transit oriented development (TOD) as a moderating variable.Design/methodology/approachThis research is a quantitative research. The data in this study are a combination of primary data obtained through a questionnaire. The research took place at PT MRT Jakarta with all the board of directors as a sample in this study. The sampling technique used is saturated sampling and data analysis using structural equation model (SEM).FindingsThe result shows that maintenance and operation (M&O) have a positive and significant effect on time utility, M&O have a positive and significant effect on sustainability, time utility has a positive and significant effect on occupancy, occupancy has a positive and significant effect on sustainability and the influence of TOD does not significantly influence the relationship between time utility on occupancy and occupancy on sustainability.Originality/valueThe originality of this research lies in testing the maintenance operation, time utility and occupancy variables on sustainability with the renewal of TOD as a moderating variable.

Loyalty card adoption in SME retailers: the impact upon marketing management

2015 ◽  
Vol 49 (3/4) ◽  
pp. 467-490 ◽  
Author(s):  
Karise Hutchinson ◽  
Lisa Victoria Donnell ◽  
Audrey Gilmore ◽  
Andrea Reid
Keyword(s):  
Decision Making ◽  
Current Knowledge ◽  
Marketing Management ◽  
Management Decision ◽  
Adoption Process ◽  
Longitudinal Case Study ◽  
Content Type ◽  
Management Decision Making ◽  
The Impact ◽  
Loyalty Card

Purpose – The purpose of this paper is to understand how small to medium-sized enterprise (SME) retailers adopt and implement a loyalty card programme as a marketing management decision-making tool. Design/methodology/approach – A qualitative and longitudinal case study research design is adopted. Data were collected from multiple sources, incorporating semi-structured interviews and analysis of company documents and observation within a retail SME. Findings – The findings presented focus on the loyalty card adoption process to reflect both the organisational issues and impact upon marketing management decision-making. Research limitations/implications – This research is restricted to one region within the UK, investigating loyalty card adoption within a specific industry sector. Practical implications – SME retailers operate in an industry environment whereby there is a competitive demand for loyalty card programmes. SME retailers need to carefully consider how to match the firm’s characteristics with customer relationship management (CRM) operational requirements as highlighted in this case. Originality/value – The evidence presented extends current knowledge of retail loyalty card programmes beyond the context of large organisations to encompass SMEs. The study also illustrates the value of a structured, formal CRM system to help SME retailers compete in a complex, competitive and omni-channel marketplace, adding new insights into the retail literature.

Sign in / Sign up

Export Citation Format

Share Document