scholarly journals Product diversification and large construction firm productivity: the effect of institutional environments in Malaysia

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohd Azrai Azman ◽  
Carol K.H. Hon ◽  
Bo Xia ◽  
Boon L. Lee ◽  
Martin Skitmore
Keyword(s):  
Firm Performance ◽  
Positive Impact ◽  
Product Diversification ◽  
Content Type ◽  
Construction Firms ◽  
Unrelated Diversification ◽  
Construction Firm ◽  
Related Diversification ◽  
Generalised Method Of Moments ◽  
The Impact

PurposeMany large construction firms (LCFs) adopt product diversification (PD) to counter downturns and spread risks. However, no detailed information is available concerning the type of PD that improves their performance. In addition, it is still uncertain how much changes in institutional dimensions influence the effectiveness of PD. Therefore, the aim is to resolve this issue by establishing a model that shows the extent of this influence.Design/methodology/approachThe generalised method of moments (GMM) estimator is used to model the PD strategies of 86 LCFs in Malaysia over 14 years (2003–2016) and its impact on productivity and profitability performance.FindingsUnrelated diversification (UD) decreased firm performance in 2003–2016, while related diversification (RD) had a positive impact during the more liberal 2010–2016 phase. The models show that the impact of PD is highly dependent on changes in institutional dimensions.Practical implicationsFirstly, managers may adjust the type of PD and its level of diversification to improve firm performance. Secondly, they may devise PD strategies based on changes in institutional dimensions to maximise their effectiveness.Originality/valueThe study contributes to the literature by determining the optimal amount of PD (including RD and UD) and its impact on performance. Secondly, the study is the first to investigate the moderating relationship of the institutional dimensions of economic and regulatory institutions on PD-firm performance. Thirdly, the study is the first to explore the components of technical-scale-scope economies (movement towards and around the production frontier), this being crucial to the strategy that was only conjectured in previous studies.

The impact of service innovation on firm performance: a meta-analysis

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Changli Feng ◽  
Ruize Ma ◽  
Lin Jiang
Keyword(s):  
Firm Performance ◽  
Positive Impact ◽  
Meta Analysis ◽  
Service Innovation ◽  
Future Research ◽  
Quantitative Review ◽  
Content Type ◽  
And Performance ◽  
The Impact ◽  
The Relationship

PurposeWith the rise of service economy, many companies are attempting to gain a competitive advantage through service innovation. However, the existing research has not drawn consistent conclusions about the relationship between service innovation and firm performance. Hence, the purpose of this paper is to provide a quantitative review on the service innovation-performance relationship based on research findings reported in the extant literature.Design/methodology/approachStudies from 46 peer-reviewed articles were sampled and analyzed. A meta-analytic approach was adopted to conduct a quantitative review on the relationship between service innovation and firm performance, and the effects of any potential moderators were further explored.FindingsThe results found that service innovation has a significant positive impact on firm performance. Additionally, the relationship between service innovation and firm performance is influenced by measurement moderators (economic region and performance measurement), and contextual moderators (firm type, innovation type, customer factors and attitudes toward risk).Originality/valueThe meta-analysis has been used to explore the relationship between service innovation and firm performance, and the findings have contributed to the literature on service innovation, as well as providing future research directions.

Product diversification, business structure, and firm performance in Taiwanese property and liability insurance sector

2017 ◽  
Vol 18 (5) ◽  
pp. 486-499 ◽  
Author(s):  
Chen-Ying Lee
Keyword(s):  
Firm Performance ◽  
Financial Services ◽  
Fixed Effects ◽  
Ordinary Least Squares ◽  
Product Diversification ◽  
Least Squares Regression ◽  
Fixed Effects Model ◽  
Content Type ◽  
The Impact ◽  
Business Structure

Purpose The purpose of this study is to analyze product diversification, business structure and insurer performance with a comprehensive look at the property-liability (P/L) insurance operations. Design/methodology/approach Using a panel data, this study employs an ordinary least squares regression model, fixed effects model and random effects model to examine the impact of product diversification and business structure on the performance of P/L insurers. The study assesses insurer performance using both risk-adjusted return on assets and risk-adjusted return on equity. Findings The study finds that product diversification is significantly negatively related to the performance of P/L insurers. The results are consistent with the diversification discount theory. The empirical results reveal that business lines have significant impacts on firm performance, particularly on the lines of fire and marine insurances. Furthermore, the interaction between product diversification and firm size implies that product diversification significantly increases the performance of large-sized insurance firms. Originality/value The study provides some valuable insights into the effects of diversification and business structure on the performance of P/L insurers in a developing country. The study’s findings suggest that management of P/L insurers should clarify their objectives and carefully assess the company’s resources when dealing with product diversification and business structure. The results have practical implications for the financial services industry in Taiwan.

Diversification, family involvement and firm performance

2016 ◽  
Vol 35 (5) ◽  
pp. 663-680 ◽  
Author(s):  
Emanuela Delbufalo ◽  
Sara Poggesi ◽  
Simone Borra
Keyword(s):  
Firm Performance ◽  
Family Involvement ◽  
Fixed Effects ◽  
Product Diversification ◽  
Geographic Diversification ◽  
Content Type ◽  
The Status ◽  
The Impact ◽  
Italian Manufacturing Firms ◽  
Moderating Role

Purpose – The purpose of this paper is to investigate the effect of product and geographic diversification on the performance of Italian manufacturing firms and evaluate the moderating role of family involvement. Design/methodology/approach – The hypotheses have been tested by using a fixed-effects panel data regression model. Findings – Results show a linear relationship between product diversification and firm performance and an inverted U-shaped relationship between geographic diversification and firm performance. Moreover, when considering the status of the family firm, family ties have a negative moderating role on the performance of companies that are product and internationally diversified. Originality/value – By providing theoretical explanations and empirical evidence, the study extends the diversification-performance research by testing this relationship in an unexplored context (i.e. Italy), and by identifying a still not well explored contingency factor (i.e. family involvement). In doing so, diversification and family involvement literatures are brought together and the results show the importance of the type of owner regarding the impact of product and international diversification on firm performance.

scholarly journals PRACTICING FRS AND AUDIT QUALITY SUPPORT FINANCIAL SUCCESS OF CONSTRUCTION FIRMS IN MALAYSIA

2016 ◽  
Vol 1 (1) ◽  
Author(s):  
Chia Hua Sim ◽  
Daw Tin Hla ◽  
Abu Hassan Md.Isa
Keyword(s):  
Firm Performance ◽  
Panel Data ◽  
Financial Reporting ◽  
Audit Quality ◽  
Positive Impact ◽  
Panel Data Analysis ◽  
Financial Success ◽  
Reporting Standard ◽  
Construction Firms ◽  
The Impact

Prior research findings on the effect of financial reporting and audit quality on firm performance were mixed. The current study therefore, sought to examine the impact of audit quality and FRS practices of firms on their financial success. Samples firms listed on Malaysian stock market were selected from the construction sector for the period of 2010 to 2013. Data was collected from the published annual reports and notes to the financial statements. To assess the level of compliance with the regulations and provisions of the Financial Reporting Standard (FRS) in Malaysia, content analysis was carried out. Firm’s engagement with established audit firm is used as a proxy for audit quality, and return on assets is used as a measure of firm performance. Panel data analysis was employed in analysing the data and testing the stated hypotheses. The use of panel data reveals that practices of FRS by firms is significantly and positively related to their financial performance. The results also indicate that audit quality has a significant positive impact on business financial success. The study therefore recommends that the management of listed construction firms improve their practices of FRS and employ the service of established audit firms in support of financial success. Regular training may be organised to provide construction companies with practical guide for better compliance with the FRS in Malaysia.  

Does entrepreneurs’ improvisational behavior improve firm performance in time of crisis?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Peerayuth Charoensukmongkol
Keyword(s):  
Firm Performance ◽  
Human Resources ◽  
Structural Equation ◽  
Positive Impact ◽  
Small And Medium Enterprises ◽  
Equation Modeling ◽  
Online Questionnaire ◽  
Competitive Intensity ◽  
Content Type ◽  
The Impact

Purpose This paper examines the effect of improvisational behavior of entrepreneurs on firm performance of small and medium enterprises (SMEs) in Thailand during the economic crisis following the COVID-19 pandemic. The study also explores external factors in terms of competitive intensity and internal factors in terms of financial and human resources possessed by firms that could enhance the impact of improvisational behavior on firm performance. Design/methodology/approach A self-administered online questionnaire survey was used to collect the data from the random sample of 312 SMEs in Thailand. Partial least squares structural equation modeling was used to analyze the data. Findings The analysis supports the positive relationship between the improvisational behavior of entrepreneurs and firm performance. Moreover, the moderating effect analysis shows that the positive impact of improvisational behavior on firm performance tends to be stronger for firms that encountered a higher level of competitive intensity and for firms that possessed a higher level of financial and human resources. Originality/value This research extends the knowledge from prior research by confirming some moderating factors that could strengthen the benefit of improvisational behavior during the crisis.

scholarly journals A contextual analysis of the impact of strategic sourcing and E-procurement on performance

2015 ◽  
Vol 30 (1) ◽  
pp. 1-16 ◽  
Author(s):  
Minkyun Kim ◽  
Nallan C Suresh ◽  
Canan Kocabasoglu-Hillmer
Keyword(s):  
Firm Performance ◽  
Product Life Cycle ◽  
Structural Equation ◽  
Positive Impact ◽  
Equation Modeling ◽  
Content Type ◽  
Strategic Sourcing ◽  
Research Results ◽  
Positive Effects ◽  
The Impact

Purpose – The aim of this study is to investigate the relationships among strategic sourcing, e-procurement and firm performance, along with the moderating effects of business characteristics and environmental factors on these relationships. Design/methodology/approach – This empirical investigation relies on structured survey responses from 137 managers of US manufacturing firms. The partial least squares-based structural equation modeling approach is used for data analysis. Findings – The research results confirm that both strategic sourcing and e-procurement have a positive effect on firm performance. In addition, e-procurement is also found to have a positive impact on strategic sourcing. In addition, the research results suggest that business characteristics and the environment, especially the degree of competition, market turbulence, firm size and stage in product life cycle moderate these relationships significantly. The positive effects of strategic sourcing and e-procurement on firm performance are particularly enhanced under the right conditions. Originality/value – This research is the first, to the best of our knowledge, to provide insights into the joint effects of strategic sourcing and e-procurement, and how business characteristics and the environment affect their roles on firm performance. In addition, firm performance is evaluated as a multi-dimensional construct involving financial, operational and supply chain aspects, with the measurements consisting of several second-order constructs. The study makes both theoretical and practical contributions.

Diversification, Industrial Synergy and Firm Performance of State-Owned Enterprises - Taking Coal Business Groups as an Example

2014 ◽  
Vol 687-691 ◽  
pp. 4609-4615 ◽  
Author(s):  
Xi Min Sun ◽  
Jing Wang ◽  
Tao Cui
Keyword(s):  
Firm Performance ◽  
Positive Impact ◽  
Management Practice ◽  
Business Groups ◽  
Practical Significance ◽  
Unrelated Diversification ◽  
State Owned Enterprise ◽  
Related Diversification ◽  
Coal Enterprises ◽  
The Relationship

Diversified industrial combination of state-owned enterprise is often not optimal, it can also maintain in the industry boom, but once the main market atrophy, the entire firm’s development will be in trouble, such as coal business groups. To solve this problem, this paper use industrial synergy as an intermediary variable and develop the traditional dualism, which is the relationship between diversification and firm performance, to trialism, which are relationships among diversification, industrial synergy and firm performance and take coal enterprises listing Corporations as an example to analyze relationships of above three points. Results show vertical business synergy in related diversification and horizontal function synergy in unrelated diversification are all have a significant positive impact on firm performance. This conclusion is confirmed the important hypothesis in theory that industrial synergy will promote firm performance and has important practical significance to guide state-owned enterprises’ management practice.

The impact of technological-organizational-environmental (TOE) factors on firm performance: merchant’s perspective of mobile payment from Thailand’s retail and service firms

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Thipa Mahakittikun ◽  
Sid Suntrayuth ◽  
Veera Bhatiasevi
Keyword(s):  
Firm Performance ◽  
Service Providers ◽  
Positive Impact ◽  
Critical Mass ◽  
External Support ◽  
Relative Advantage ◽  
Mobile Payment ◽  
Service Firms ◽  
Content Type ◽  
The Impact

Purpose This study aims to identify the impact of mobile payment on firm performance by developing a model based on the technology, organization and environment framework (TOE framework) including relative advantage, complexity, compatibility, innovativeness, mobile payment knowledge, critical mass, competitive pressure and external support. Design/methodology/approach The data were collected from the retail and service firms in Bangkok, Thailand (n = 387). Multiple regression analysis was applied to test the proposed model and carried out in SPSS version 25. Findings The results indicated that the TOE factors, including relative advantage, innovativeness, mobile payment knowledge, critical mass, competitive pressures and external supports, can predict firm performance. While innovativeness is the strongest predictor of positive firm performance, on the other hand, critical mass is found to be negatively significant on firm performance. Practical implications This research suggests that firms that accept mobile payment can identify the positive impact on firm performance and it is important for payment service providers and the government to work closely with firms. Originality/value As some merchants still refuse to implement mobile payment services in their business, this current study seeks to understand the impact of mobile payment. However, not many studies are reported its impact in Southeast Asia. This study is probably the first in Thailand to examine the impact of mobile payment on firm performance in the retail and service firms.

Corporate social responsibility and financial performance nexus

2018 ◽  
Vol 9 (3) ◽  
pp. 301-328 ◽  
Author(s):  
Joseph Dery Nyeadi ◽  
Muazu Ibrahim ◽  
Yakubu Awudu Sare
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Positive Impact ◽  
Public Investment ◽  
Data Set ◽  
Content Type ◽  
The Public ◽  
Firm Financial Performance ◽  
Corporate Social ◽  
The Impact

Purpose The paper aims to investigate empirically the impact of corporate social responsibility (CSR) on financial performance in South African listed firms. Design/methodology/approach The paper uses panel corrected standard errors to estimate the effect of CSR on firm financial performance and thus addresses contemporaneous cross-correlations across the panel cross sections. The study uses a broad base measure of CSR created by the Public Investment Corporation data set and the combination of accounting and economic means of measuring firm financial performance. Findings CSR is found to have a strong positive impact on firm financial performance in South Africa. When CSR is decomposed further into its major components, governance performance positively impacts a firm’s financial performance with no evidence of any relationship between social components and firm performance and between environmental components and firm performance. The positive impact of CSR on firm performance is greater in big firms. At the industry level, CSR is noticed to impact positively on financial performance in the extractive industry via good governance and responsible environmental behaviors. It however has no impact on firm performance in the financial sector. Research limitations/implications The results should be interpreted with caution and some limitations. Due to the limiting nature of the Public Investment Corporation data set (the survey was carried out on selected firms on the Johannesburg Stock Exchange for three years spanning from 2011 to 2013). This resulted in a sample of 56 firms. It is therefore very problematic to generalize the findings to a larger population over a long period of time. This is more limiting especially on individual sector studies where the sample has further shrunk to a smaller sample. As a result of the smaller sample size, the authors were unable to explore some other sectors which could have given more revealing findings. The authors recommend that future research should explore other data sets or use primary data approach that can allow for more sample size and elongated time period for a more holistic view and for easy generalization of the findings. The authors also identify an important lacuna necessitating further research effort. It would be interesting to empirically examine the threshold point of firms’ size beyond which CSR damages firms’ performance. Knowledge of this will guide managers of firms in their strategic CSR decision. Practical implications This study does not only serve as a reference work for subsequent investigations into the impact of CSR on firm performance in sub-Saharan Africa but also serves as a guide to policymakers on the financial impact of CSR adoption. Originality/value This study is one of the pioneering works that comprehensively examines the effect of CSR on financial performance amongst South African firms via size and sector and also controls for contemporaneous cross-correlation effects from the firms in the panel set.

scholarly journals Does organizational innovation always lead to better performance? A study of firms in Vietnam

2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Thi Thuc Anh Phan
Keyword(s):  
Firm Performance ◽  
Organizational Innovation ◽  
Positive Impact ◽  
Business Practices ◽  
Content Type ◽  
Interaction Terms ◽  
Workplace Organization ◽  
And Performance ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to explore the relationship between organizational innovation and performance of firms in Vietnam. Design/methodology/approach Based on the literature review, the author proposed five hypotheses covering the relationships between different aspects of organizational innovation and firm performance. Data collected from a survey of 266 firms in Vietnam were analyzed to test the proposed hypotheses. Findings Two out of three aspects of organizational innovation, including “innovation in business practices” and “innovation in workplace organization,” are significantly positively associated with firm performance. However, there was no evidence to support the relationship between firm performance and the third organizational innovation aspect, “organizational innovation in external relations.” The results also show that the interaction terms among three aspects of organizational innovation do not have significant impacts on firm performance. Practical implications Firms in Vietnam should pay more attention to innovation in business practices and innovation in workplace organization since two aspects have clear positive influences on performance. Moreover, firms can perform each of the organizational innovation aspects independently or in parallel, as the implementation of organizational innovation in one aspect does not influence the impact on the firm performance of organizational innovation in other aspects. Originality/value This study provides important insights into the widely recognized yet little-researched relationship between organizational innovation and firm performance and concludes that organizational innovation has a positive impact on firm performance.

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