Factors affecting the adoption extent of the balanced scorecard by Vietnamese small- and medium-sized enterprises

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dieu Thuong Ha ◽  
Thanh Le ◽  
Greg Fisher ◽  
Thanh Truc Nguyen
Keyword(s):  
Balanced Scorecard ◽  
Product Innovation ◽  
Competitive Environment ◽  
Innovation Strategy ◽  
Top Management ◽  
Business Network ◽  
Content Type ◽  
Factors Affecting ◽  
Network Support ◽  
Innovative Culture

Purpose This study empirically examines factors affecting the extent of balanced scorecard (BSC) adoption in Vietnamese small- and medium-sized enterprises (SMEs) such as top management involvement, an innovative culture, a product innovation strategy, organisational resources, a competitive environment and business network support. This study aims to gain an improved understanding and draw important lessons on BSC adoption for SMEs. Design/methodology/approach Using primary data obtained from a survey of top managers of SMEs that have experienced some forms of BSC adoption, the authors conduct their analysis using exploratory factor analysis and regression analysis methods. Findings The authors find that top management involvement, an innovative culture, organisational resources and business network support are essential factors impacting the extent of BSC adoption in Vietnamese SMEs. Besides confirming literature findings on these variables, the authors identify support of business networks as another important factor affecting the extent of BSC adoption, alongside location and business owners’ experience. However, the impacts of a product innovation strategy and a competitive environment are not significant. Research limitations/implications This study adapts scales previously designed for large enterprises in developed countries to fit into the context of Vietnamese SMEs. Future research can take advantage of this new set of scales and data to obtain further research results. Practical implications This study will serve as guidance for SMEs considering BSC adoption to have a clear vision of what factors are likely to affect BSC adoption, how they affect it and in what direction. Social implications Lessons learned can be extended not only to Vietnamese SMEs that have not yet adopted the BSC but also to firms in other countries with similar economic conditions. Originality/value This study is among pioneering studies on BSC in SMEs and within the context of Vietnam.

Collaborative practices with suppliers in Indian manufacturing multinationals

2017 ◽  
Vol 10 (2) ◽  
pp. 206-231 ◽  
Author(s):  
Manoj Hudnurkar ◽  
Urvashi Rathod
Keyword(s):  
Balanced Scorecard ◽  
Quantitative Methods ◽  
Business Environment ◽  
Exploratory Research ◽  
Manufacturing Companies ◽  
Content Type ◽  
Factors Affecting ◽  
Collaborative Practices ◽  
Qualitative And Quantitative Methods ◽  
Customer Perspective

Purpose The aim of this research was to study collaborative practices with suppliers in multinational manufacturing companies operating in India and to develop a framework for collaboration with suppliers. Design/methodology/approach This study adopted a four-step mixed-methods approach that included qualitative and quantitative methods. Qualitative technique was used to explore the factors and develop a balanced scorecard-based (BSC – balanced scorecard) framework using them. Quantitative technique was used to validate the framework statistically and also by using fuzzy analytical hierarchy process using perception-based ranks given by practitioners. Findings The exploratory research resulted in 26 antecedents for collaboration with suppliers in supply chains. Out of these 26, only 19 were considered based on importance given by practitioners. Further, the identified antecedents were classified and mapped based on the perspectives of the BSC. The extended BSC adds business environment and partnership perspectives to existing BSC framework. Some of the important factors identified under these perspectives were transparency of transactions, long-term commitment and trust. The customer perspective was given the utmost importance by the practitioners. Research limitations/implications There are certain issues that may limit the completeness of the work in a global context. The number of organizations (21) and respondents (45) may also be insufficient to convey the complete knowledge embedded in the practice of the field. Originality/value The study provides practical insights about the factors affecting collaboration with suppliers. A BSC-based framework for collaboration with suppliers was also developed along with the associated importance of each perspective and factors under each perspective, which can prove to be of great value to academics and practitioners involved in relationship with suppliers in supply chain.

Balanced scorecard usage and organizational effectiveness: evidence from manufacturing sector

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Babajide Oyewo ◽  
Olayinka Moses ◽  
Olayinka Erin
Keyword(s):  
Organizational Effectiveness ◽  
Performance Measures ◽  
Balanced Scorecard ◽  
Financial Stability ◽  
Management Accounting ◽  
Organizational Factors ◽  
Equation Modeling ◽  
Manufacturing Companies ◽  
Content Type ◽  
Factors Affecting

Purpose This study aims to investigate the drivers and impact of balanced scorecard (BSC) usage on organizational effectiveness in manufacturing companies. The objectives of the paper were to assess the organizational factors affecting the usage intensity of the BSC; the relative benefits of BSC determining its adoption speed; and the extent to which BSC usage enhances organizational effectiveness. Design/methodology/approach The study adopted a survey research design. Data collection was through a structured questionnaire administered on senior accounting/ finance personnel of 300 manufacturing companies that are members of the Manufacturers Association of Nigeria. Binary logistic regression analysis, discriminant analysis and structural equation modeling (maximum likelihood estimation method) were used to analyze survey data obtained from 104 BSC adopters. Findings Result shows that the three organizational factors affecting BSC usage intensity are affiliation to a foreign entity, availability of specialist skills and business strategy (strategic pattern). The strongest predictor is, however, the availability of specialist skills. The strongest determinants of the BSC adoption speed are the need for financial stability and the importance of customer feedbacks. The impact of BSC usage on organizational effectiveness is positive, statistically significant but weak. The inability of BSC usage to contribute appreciably to organizational effectiveness is attributable to the lack of integration among the performance measures in the BSC framework and the shallow usage rate of BSC. Practical implications Although it is commendable that financial stability and customer satisfaction strongly drive BSC adoption speed, the low rating recorded by other factors related to product development, employee development and process improvement suggests that the performance measures in the BSC framework are not used in an integrative manner. This also confirms that the BSC, like other innovative management accounting techniques, is applied at a rudimentary level by organizations in Nigeria. Originality/value The current study contributes to knowledge by exposing the organizational factors and relative benefits driving BSC adoption. It provides empirical evidence on why the BSC may not deliver the optimal benefit of improving organizational effectiveness despite its popularity and potential as an integrated performance measurement (IPM) apparatus that can add value to organizations. The paper adds to the scarce literature on IPM in developing countries. Drawing from the result that availability of specialist skills is the strongest predictor of BSC usage intensity, the practice of enmeshing the management accounting function with general accounting/finance should be discouraged.

Linkages between firm innovation strategy, suppliers, product innovation, and business performance

2017 ◽  
Vol 37 (8) ◽  
pp. 1054-1075 ◽  
Author(s):  
Muhammad Shakeel Sadiq Jajja ◽  
Vijay R. Kannan ◽  
Shaukat Ali Brah ◽  
Syed Zahoor Hassan
Keyword(s):  
Product Innovation ◽  
Business Performance ◽  
Resource Dependence ◽  
Resource Dependence Theory ◽  
Innovation Strategy ◽  
Equation Modeling ◽  
Content Type ◽  
The Impact ◽  
Innovation Outcomes ◽  
Supplier Relationship

Purpose The purpose of this paper is to use resource dependence theory to hypothesize that a buyer’s innovation strategy enhances supplier innovation focus and a buyer-supplier relationship that supports product innovation. These in turn positively impact buyer product innovation outcomes and business performance. Moreover, it is argued that the buyer-supplier relationship positively moderates the impact of supplier innovation focus on product innovation. Design/methodology/approach Structural equation modeling and hierarchical linear regression are used to test hypotheses. Findings The results support all hypotheses and suggest that company (buyer) age and variables related to buyer engagement with international markets directly influence performance. The results also indicate that the buyer-supplier relationship does not moderate the relationship between innovation strategy and innovation performance. Research limitations/implications This study demonstrates that how a firm builds the conditions to effectively leverage the complementary resources and capabilities of suppliers directly influence innovation outcomes and business performance. Practical implications An important factor in firms achieving their product innovation goals is the selection and management of suppliers that are strategically aligned with regard to innovation. While managers need to develop internal innovation capabilities, partnering with like-minded organizations, and creating conditions for effective cooperation are key drivers of innovation outcomes. Originality/value In contrast to prior research that has examined operational issues, this study shows how the strategic alignment of buyers and suppliers with regard to innovation is an antecedent of product innovation outcomes. Moreover, it adds to a limited literature on supply chain management practices in emerging markets.

Innovation and the performance of informal enterprises in developing countries: a gender perspective

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Elvis Korku Avenyo ◽  
Erika Kraemer-Mbula
Keyword(s):  
Product Innovation ◽  
Business Performance ◽  
Design Methodology ◽  
Data Set ◽  
Content Type ◽  
Factors Affecting ◽  
Product Innovations ◽  
Innovative Products ◽  
The Impact ◽  
Research And Policy

Purpose Examining the impact of gender on various aspects of business performance has gained research and policy traction, although the empirical evidence remains inconclusive. This paper aims to focus on one type of business, namely, informal enterprises and one dimension of business performance, namely, product innovation, to better understand how product innovations affect employment in both female- and male-owned informal enterprises. Design/methodology/approach This paper relies on a unique data set of 513 informal enterprises located in two urban centres in Ghana (Accra and Tema), covering the period between 2013 and 2015 and the Dose-Response Model to examine the effect of product innovations on employment in informal enterprises in urban Ghana. Findings The findings suggest that product innovation has considerable beneficial impacts on the creation of employment in informal enterprises. The results do not show systematic differences in the factors affecting product innovation in female- and male-owned enterprises. However, they suggest that although female-owned enterprises are less likely to introduce product innovations, they do sell more innovative products. Originality/value These findings support the view that innovation is “gendered”, and therefore, requires a “gendered” policy lens.

Product and service innovation and discontinuation in manufacturing and service firms in Europe

2017 ◽  
Vol 20 (2) ◽  
pp. 250-268 ◽  
Author(s):  
Frank Crowley
Keyword(s):  
Product Innovation ◽  
Service Innovation ◽  
Service Firms ◽  
Firm Level ◽  
Unit Of Analysis ◽  
Content Type ◽  
Factors Affecting ◽  
Product Service ◽  
Production Function Approach ◽  
The Relationship

Purpose The purpose of this paper is to explore product/service innovation and discontinuation using the firm as a unit of analysis. A key objective of the paper is to compare the results between manufacturing and service firms. Design/methodology/approach A two-step production function approach is employed to examine first, a firm’s decision to innovate and second, a firm’s decision to discontinue products/services. Findings The results indicate that the factors affecting product innovation and discontinuation are similar for manufacturing and service firms, where innovation was significant for product/service discontinuation and process innovation was found to be important for innovations. Similarly, monopoly power was important for innovation in both industry types. However, there were also some underlying differences, particularly in relation to firm age and economic geography effects. Practical implications The conclusion of the paper is that it is not appropriate to assume that the process of product innovation and discontinuation will be identical across industry types. Originality/value This study is the first study in the literature that examines product/service discontinuation at the firm level and the relationship between innovation and product/service discontinuation using the firm as a unit of analysis. This study further adds to the under-researched (relative to manufacturing studies) area of service innovation.

Innovation capability configuration and its influence on the relationship between perceived innovation requirement and organizational performance

2018 ◽  
Vol 29 (8) ◽  
pp. 1316-1331 ◽  
Author(s):  
Ming-Feng Su ◽  
Kuo-Chih Cheng ◽  
Shao-Hsi Chung ◽  
Der-Fa Chen
Keyword(s):  
Organizational Performance ◽  
Product Innovation ◽  
Information Quality ◽  
Process Innovation ◽  
Innovation Strategy ◽  
Innovation Capability ◽  
Manufacturing Companies ◽  
Content Type ◽  
Innovation Capacity ◽  
The Relationship

Purpose When the management of an information technology (IT) manufacturing firm perceives a need for innovation due to any threat in the external environment, it will be prompted to use organizational resources to support innovation and improve organizational performance through the implementation of the innovation. The purpose of this paper is to explore whether an IT manufacturing firm’s budget slack, information quality of information system (IS), process innovation and product innovation would interact to collectively form an innovation capacity, which is termed “innovation capability configuration (ICC)”, and whether ICC mediates the relationship between perceived innovation requirement and organizational performance. Design/methodology/approach To answer these questions, a structural equation model was built and a questionnaire survey was conducted to collect data from research and development and production managers of IT manufacturing companies listed on the Taiwan Stock Exchange and Over-The-Counter markets. Findings The results showed that budget slack, IS information quality, process innovation and product innovation are all significantly related to ICC, in which high-quality information and low level of budget slack are the key factors that underpin the innovation capacity. In addition, ICC has a full mediation effect, that is, perceived innovation requirement positively influences ICC, which, in turn, improves organizational performance. Research limitations/implications Because all items in a questionnaire were answered by a manager, the common method variance might exist in this study. In addition, the effective recovery rate of the questionnaire was not high due to which the non-response bias might occur. Following the research limitations, several future research recommendations are proposed. Practical implications This study offers managerial implications for the development of an IT manufacturing firm’s innovation strategy and structure to smooth the implementation of innovation in the severe environment. Originality/value The study is the first attempt to integrate the four elements clearly illustrating the ICC, which is a more complete innovation strategy, thus contributing to improve the past fragmental studies and clarify some controversial points existing in the extant innovation research.

An empirical study on relationships amongst success in benchmarking, success in Kaizen, people mindset and organizational dimensions

2018 ◽  
Vol 25 (9) ◽  
pp. 3505-3518
Author(s):  
Joklan I.C. Goni ◽  
Fransisca Tharia ◽  
Nugroho Suryo
Keyword(s):  
Empirical Study ◽  
Small Sample Size ◽  
Small Sample ◽  
Top Management ◽  
Significant Variable ◽  
Manufacturing Companies ◽  
Senior Managers ◽  
Group Company ◽  
Content Type ◽  
Factors Affecting

Purpose The purpose of this paper is to examine factors that most strongly influence success in benchmarking as attempted by Indonesian manufacturers and service companies. It investigates the impacts of success in Kaizen, people mindset and organizational dimensions with success in benchmarking. Design/methodology/approach A total of 100 questionnaires were distributed to senior managers at an 87 percent response rate. Findings This study reveals that success in benchmarking that companies undertake correlates positively with their success in Kaizen, people mindset and organizational dimensions. Research limitations/implications As an empirical study, this work has some limitations that need to be recognized. First, the sample only includes Indonesian companies. Second, as the small sample size resulted in only indicative outcome, more research is needed in this area. Furthermore, there may also have been other factors affecting success in benchmarking. It is, therefore, recommended that the framework be extended to include more variables such as information-technology competency, company status (being a single or group company) and to use other methodologies, such as multiple regression. Practical implications A company can achieve success in benchmarking through implementing success in kaizen, people mindset, formalization, centralization and integration. Industry-wise, formalization and centralization are the variables that impact the success in benchmarking significantly. For services companies, formalization and centralization is the significant variable affecting, whereas, for manufacturing companies success in Kaizen is the significant variable for success in benchmarking. Therefore, for services companies, having documented and implementation policies, regulations and procedures will influence success in benchmarking. The involvement of the top management, budgeting for every functions and unit performance evaluation will result in success in benchmarking. On the other hand, top management commitment and worker involvement are necessary to drive success in Kaizen in manufacturing companies. Originality/value Unlike most of the previous studies on a manufacturing company, this paper examines both manufacturing and services companies especially in Indonesia.

Factors affecting the internal auditors’ effectiveness in the Jordanian public sector

2019 ◽  
Vol 14 (3) ◽  
pp. 251-273 ◽  
Author(s):  
Hamza Mohammad Alqudah ◽  
Noor Afza Amran ◽  
Haslinda Hassan
Keyword(s):  
Public Sector ◽  
Structural Equation ◽  
Task Complexity ◽  
Internal Audit ◽  
Top Management ◽  
Content Type ◽  
Factors Affecting ◽  
Internal Auditors ◽  
External Auditors ◽  
The Public

Purpose The purpose of this paper is to investigate the moderating effect of task complexity on external auditors’ cooperation (EAC), top management empowerment and internal auditors’ independence, which affect internal auditors’ effectiveness in the Jordanian public sector. Design/methodology/approach This paper utilised 117 usable questionnaires from financial managers and internal audit (IA) managers of the Jordanian public sector institutions. The collected data were analysed using partial least squares-structural equation modelling (PLS-SEM). Findings The results reveal that EAC, top management empowerment, and internal auditors’ independence are the factors which positively and significantly affect the internal auditors’ effectiveness, as supported by the resource-based theory, with incomplete support for the task complexity’s role as a moderator. Practical implications The findings are important for the decision-makers and regulators in introducing new legislation and regulation for the IA profession in the Jordanian public sector. Social implications It is shown that the factors affecting the internal auditors’ effectiveness can definitely enhance their ability to achieve the role of IA in protecting public funds and limiting financial and administrative corrupt practices, particularly in the public sector. Originality/value To the best knowledge of the authors, this study is one of the first studies that addresses task complexity as an interaction effect on the factors affecting internal auditors’ effectiveness in the public sector.

Impact of product innovativeness on technology switching in global market

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Osama Sam AL-Kwifi ◽  
Viput Ongsakul ◽  
Allam K. Abu Farha ◽  
Ahmed U. Zafar ◽  
Mahmoud Karasneh
Keyword(s):  
Product Innovation ◽  
High Technology ◽  
Switching Behavior ◽  
Innovation Strategy ◽  
Annual Conference ◽  
Product Innovativeness ◽  
Content Type ◽  
Technology Markets ◽  
Lead Users ◽  
The Relationship

PurposeThe purpose of this paper is to explore the relationship between product innovativeness and the process of technology switching. This issue is important for two reasons: (1) in mature markets, the only way to increase market share is through consumers' switching from competitor firms and (2) it is essential to determine whether the product innovation strategy can meet users' needs in high-technology markets.Design/methodology/approachResearch centers (university hospitals) specializing in magnetic resonance imaging (MRI) are the lead users of the MRI market. In this market, the technology switching process was tracked using an annual conference database. Interviews with industry experts and lead users were conducted in order to determine the relationship between product innovativeness and technology switching.FindingsThe findings reveal that in the lead users' segment, technology switching is occurring at a significant level. The interviews emphasized the influence of product innovativeness on technology switching in the global MRI market, as well as the importance of adopting an open innovation process as a strategy to enhance product innovativeness.Practical implicationsThe results can be generalized to industries with similar characteristics, such as high rates of technological change and technology heterogeneity. In high-technology markets, managers should monitor switching behavior. They should also study the influence of product innovativeness on such behavior in order to determine the correct product innovation strategy and meet users' preferences effectively.Originality/valueThe literature reports considerable research that investigates switching behavior, but most publications use data from a short time period and cover a limited geographical region. This is the first study that uses data to track the switching behavior of high-technology products on a global scale over a 22-year period.

PENGARUH DUKUNGAN MANAJEMEN PUNCAK, MANAJEMEN PROYEK DAN KETERLIBATAN PENGGUNA TERHADAP TINGKAT KESUKSESAN IMPLEMENTASI ENTERPRISE RESOURCE PLANNING PADA PERUSAHAAN DI JABODETABEK

2017 ◽  
Vol 2 (2) ◽  
pp. 147-154
Author(s):  
Julian Aristo
Keyword(s):  
Project Management ◽  
Enterprise Resource Planning ◽  
User Involvement ◽  
Resource Planning ◽  
Business Environment ◽  
Top Management ◽  
Management Support ◽  
Erp Systems ◽  
Factors Affecting ◽  
Top Management Support

Enterprise Resource Planning (ERP) systems have become vital strategic tools in today’s competitive business environment. Implementation of ERP systems is a highly complex process which is influenced not only by technical, but also by other factors. The purpose of this research to find out factors influencing the success of ERP implementations in companies in Jabodetabek. In this research three factors of success implementation ERP were selected on the bases of previous research that includes top management support, project management and user involvement. The results indicate that top management support and project management are key factors affecting the success of ERP implementations, while user involvement does not affect the success of ERP implementations. Top management support, project management and user involvement affect the success rate of 72.7% of ERP implementations. While the rest equal to 27.3% influenced by other variables not included in this research model. Keywords: Enterprise Resource Planning, Top management support, project management, user involvement

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