Investigating security investment impact on firm performance

2014 ◽  
Vol 22 (3) ◽  
pp. 194-208 ◽  
Author(s):  
Ranjit Bose ◽  
Xin (Robert) Luo
Keyword(s):  
Firm Performance ◽  
Information Security ◽  
Economic Value ◽  
Value Added ◽  
Future Research ◽  
Related Factors ◽  
Security Investment ◽  
Content Type ◽  
The Relationship ◽  
Security Investments

Purpose – The purpose of this study is to propose to use the economic value added to measure firm performance against information security investments. Design/methodology/approach – The authors develop a conceptual framework to capture non information technology (IT)-related and IT-related security investment factors and propose to study their holistic influences on firm performance. Findings – The authors propose 14 propositions to understand the relationship between security investments and firm performance. Research limitations/implications – The authors propose a validation process to guide future research to further empirically capture all needed data and analyze the proposed relationships. Practical implications – Managers can view security investment from a more comprehensive perspective and understand how to potentially contribute each of the non IT-related and IT-related factors to firm performance. Originality/value – This is one of the early attempts studying information security investment vs firm performance from a comprehensive conceptual angel.

scholarly journals MARKETING PERFORMANCE MEASUREMENT: MARKETING METRICS IN TURKISH FIRMS

2013 ◽  
Vol 14 (Supplement_1) ◽  
pp. S413-S432 ◽  
Author(s):  
Gungor Hacioglu ◽  
Osman Gök
Keyword(s):  
Firm Performance ◽  
Economic Value ◽  
Value Added ◽  
Future Research ◽  
Marketing Metrics ◽  
Marketing Performance ◽  
Customer Lifetime ◽  
Sectoral Differences ◽  
Managerial Implications ◽  
The Relationship

This study explores which metrics are considered important in measuring marketing performance in Turkish firms. In addition, the study examines the effects of sectoral differences and market dynamism, and the relationship between the importance attached to metrics and firm performance. The data collected from a sample of 145 Turkish firms via a structured questionnaire derived from the literature reveals that the most importance is attached to consumers’ attitudes metrics. Economic value added and customer lifetime value are the least important metrics in performance evaluation. No significant relationship occurs between the importance that executives attach to metrics and firm performance. Managerial implications and future research opportunities will be presented at the end. The study is, as far as is known, the first attempt at aiming to explore marketing metrics in Turkey, and one of a limited number of studies in emerging economies.

scholarly journals Impact of board structure on firm performance: evidence from an emerging economy

2017 ◽  
Vol 11 (2) ◽  
pp. 210-228 ◽  
Author(s):  
Qaiser Rafique Yasser ◽  
Abdullah Al Mamun ◽  
Marcus Rodrigs
Keyword(s):  
Firm Performance ◽  
Firm Value ◽  
Stock Exchange ◽  
Economic Value ◽  
Value Added ◽  
Listed Companies ◽  
Board Structure ◽  
Content Type ◽  
Firm Financial Performance ◽  
The Relationship

Purpose The aim of this paper is to examine the association between board demographics and firm financial performance of Karachi Stock Exchange companies and describe the attributes of these firms and their boards. The connection between board structure and firm performance has attracted much attention, especially in emerging economies, yet yielded many inconsistent empirical results. Design/methodology/approach This study examines the relationship between board structure and the performance of Pakistani public listed companies by using a sample of Karachi Stock Exchange 100 (KSE-100) indexed companies. This study exploits the corporate performance by accounting-based measures (return on assets), market-based measures (Tobin’s Q), and economic profit (economic value added). Findings The outcome of the study shows the positive relationship between the board size, minority representation in board, and family director’s in-board and firm performance. The authors also find that, instead of adding value, independent directors in Pakistan are negatively associated with firm value. Research limitations/implications The study is based on KSE-100 indexed companies from 2009 to 2013; however, a large sample and multiple years’ data are required. Practical implications The paper provides empirical evidence that board independence is not necessary for public-listed companies in Pakistan and would be of interest to regulatory bodies, business practitioners, and academic researchers. Originality/value The paper contributes to the literature on corporate governance and firm performance by introducing a framework for identifying and analyzing moderating variables that affect the relationship between board structure and firm performance.

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.

Servitization strategy, manufacturing organizations and firm performance: a theoretical framework

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Changli Feng ◽  
Lin Jiang ◽  
Ruize Ma ◽  
Chao Bai
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Theoretical Framework ◽  
Future Research ◽  
Company Performance ◽  
Manufacturing Firm ◽  
Content Type ◽  
Manufacturing Organizations ◽  
Manufacturing Company ◽  
The Relationship

Purpose The purpose of this paper is to analyze the available literature on the relationship between servitization strategy and firm performance, which identifies the main streams and theoretical foundations of research and provides guidelines for future research in this area. Design/methodology/approach The paper discusses the relationship between servitization strategy and manufacturing firm performance by gathering and analyzing existing research published between 1988 and 2019 through bibliometric analysis and content analysis, and then unpacking the processes and impacts servitization has on firm performance. Findings This paper analyzes the evolution of the concept and servitization strategy of manufacturing organizations, and the relationship between servitization strategy and manufacturing company performance. Then, the authors establish an integrated theoretical framework aimed at conveying the factors and providing a practical reference. Practical implications The paper establishes an integrated theoretical framework on servitization and firm performance. The results of the systematic analysis of the literature can be used to inform managers about implementing servitization. Managers need to measure the benefits of servitization from two aspects: financial performance and non-financial performance. And managers need to consider some internal and external influencing factors to achieve a strategic–environmental–organizational fit that will bring better benefits to the firm. Originality/value The paper contributes to the existing research in three different ways. First, the study perfects the gap of research on the range of all of the factors within the relationship between servitization strategy and manufacturing company performance. Second, the study demonstrates a clear indication of how existing studies’ differences influence the research outcomes. Third, this paper proposes research problems and future research directions.

scholarly journals Intangible-driven value creation: supporting and obstructing factors

2014 ◽  
Vol 18 (3) ◽  
pp. 87-100 ◽  
Author(s):  
Elena Shakina ◽  
Mariya Molodchik
Keyword(s):  
Value Creation ◽  
Investment Decision ◽  
Economic Value ◽  
Value Added ◽  
Market Value ◽  
Intangible Capital ◽  
Future Research ◽  
Unexpected Result ◽  
Content Type ◽  
The Impact

Purpose – This study aims to investigate the factors that support or obstruct market value creation through intangible capital. Design/methodology/approach – The paper explores the impact of intangibles and exogenous shocks on corporate attractiveness for investors measured by market value added. Specifically, the relationship between intangible-driven outperformance of companies, measured by economic value added (EVA) and a number of intangible drivers on macro-, meso- and micro-levels is analyzed. It is supposed that the process of value creation is not only confined to companies’ performances. The empirical research was conducted on > 900 public companies from Europe and the USA during the period of 2005-2009. Findings – The study establishes that investment attractiveness is affected by intangibles. It is found that a company’s experience, size and innovative focus facilitate value creation. An unexpected result was revealed concerning countries’ education level, which appears to be an obstructive condition for intangible-driven value creation. Research limitations/implications – The study reveals the significance of industry belonging for intangible-driven value creation. Nevertheless, it does not discover the particular characteristics of industry that influence corporate attractiveness for investors. These issues could be addressed in future research. Practical implications – The findings established in this study extend the understanding of the phenomenon of intangible capital and enable the improvement of investment decision-making. Originality/value – The study emphasizes the holistic framework of market value creation by analyzing a number of strategic crucial factors in line with EVA.

Entrepreneurial strategy making in tourism organisations: a systematic review and future research agenda

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Arthur Kearney ◽  
Denis Harrington ◽  
Tazeeb Rajwani
Keyword(s):  
Systematic Review ◽  
Firm Performance ◽  
Literature Review ◽  
Performance Outcomes ◽  
Future Research ◽  
Content Type ◽  
Future Research Agenda ◽  
Entrepreneurial Strategy Making ◽  
The Relationship ◽  
Strategy Making

PurposeUsing a state of the art CIMO literature review the paper develops a framework of the relationship between strategy making in the small tourism firm context and four performance outcomes.Design/methodology/approachThe paper uses the CIMO literature review method, adapted from the wider management literature to structure and integrate the existing fragmented literature base.FindingsPremised on the literature review, a framework of the relationship between strategy making and firm performance in context is posited. Emerging from a dominant owner/manager in a deeply embedded context strategy making influences firm performance across four dimensions. The influence is dynamic, continually subject to modification in a changing environment often mediated through emerging technology.Research limitations/implicationsThe CIMO method provides an integrated framework of the relationship between strategy making and small firm performance in context hence overcoming limitations of the fragmented nature of the research landscape. Emerging from the review key future research trajectories is posited.Practical implicationsWhile highlighting the relationship between strategy making and performance, the proposed framework implies owner/managers play the key role in strategy making with opportunities and challenges in modifying existing strategy making emerging from owner/manager embeddedness. Opportunities for improved policy interventions are posited.Originality/valueThe paper applies the systematic review to the relationship between strategy making and the small tourism firm.

Proactive environmental management and performance by a controlling family

2014 ◽  
Vol 37 (3) ◽  
pp. 210-240 ◽  
Author(s):  
Yi-Chun Huang ◽  
Ying-Jiuan Wong ◽  
Min-Li Yang
Keyword(s):  
Environmental Management ◽  
Firm Performance ◽  
Management Practices ◽  
Pollution Prevention ◽  
Future Research ◽  
Cross Sectional ◽  
Environment Friendly ◽  
Content Type ◽  
The Impact ◽  
The Relationship

Purpose – This study examined how proactive environmental management affects firm performance and whether a controlling family moderates this effect. The paper aims to discuss these issues. Design/methodology/approach – The study adopted content analysis to collect data on listed Taiwanese firms and used cross-sectional regression analysis to examine the relationship between proactive environmental management and firm performance as well as the moderating role of a controlling family. Findings – The results indicated that not all types of proactive environmental management are positively associated with firm performance and that a controlling family might be more effective in low-risk proactive environmental management practices. Research limitations/implications – The focus was on the impact of proactive environmental management from the perspective of stockholders. Future research could investigate its impact on other stakeholders as well. Practical implications – The findings might convince managers that the stereotype of an environment-friendly firm – that the more its green initiatives, the less competitive it becomes – may not necessarily be true. Investing in product-focused pollution prevention could increase revenues and improve performance. Even though process-focused pollution prevention is negatively associated with firm performance, companies are not expected to reduce investment in green processes since they are required for the production of environment-friendly products. Originality/value – This study adopted a multi-dimensional approach to reveal how different types of proactive environmental management affect firm performance. The authors used the controlling family as a moderating variable to determine whether it moderates the relationship between proactive environmental management and firm performance.

Intellectual capital and firm performance

2018 ◽  
Vol 11 (1) ◽  
pp. 139-151 ◽  
Author(s):  
Allam Hamdan
Keyword(s):  
Firm Performance ◽  
Intellectual Capital ◽  
Value Added ◽  
Return On Assets ◽  
Kingdom Of Saudi Arabia ◽  
Content Type ◽  
Two Measures ◽  
And Performance ◽  
Traditional Performance ◽  
The Relationship

Purpose This study sheds light on the relation between intellectual capital and firm performance. The study argues that traditional performance measurement based on accounting is still able to explore the relation between intellectual capital and performance. Design/methodology/approach The study was conducted at 198 firms from two Gulf Cooperation Council countries: Kingdom of Saudi Arabia and Kingdom of Bahrain for the period 2014–2016. To measure intellectual capital, the value added intellectual coefficient model was adopted along with two measures of performance: accounting-based performance which is return on assets and market-based performance which is Tobin’s Q, in addition to the Random-Effects Regression. Findings Study findings came up with evidences that support the relationship between intellectual capital and accounting-based performance, but negates any relation between intellectual capital and market-based performance. The findings also revealed different results, between Saudi Arabia’s and those of Bahrain. Originality/value The study contributes to the debate on the validity of relating intellectual capital to the traditional accounting-based performance.

Does mandated independence improve firm performance? Evidence from New Zealand

2018 ◽  
Vol 30 (1) ◽  
pp. 92-109 ◽  
Author(s):  
Michelle Li ◽  
Helen Roberts
Keyword(s):  
New Zealand ◽  
Firm Performance ◽  
Best Practice ◽  
Good Governance ◽  
Future Research ◽  
Board Independence ◽  
Board Structure ◽  
Content Type ◽  
The Impact ◽  
The Relationship

Purpose This paper aims to examine the relationship between board independence and firm performance for publicly listed New Zealand (NZ) firms over the period 2004-2016. Design/methodology/approach To address endogeneity concerns, the relationship between firm performance and board independence is modelled using three different approaches: firm fixed-effect estimation, difference-in-difference estimation and two-stage least squares estimation, while controlling for firm and governance characteristics. Findings The main finding is that the mandated board independence introduced by the Best Practice Code does not improve operating or market performance for listed NZ firms. Research limitations/implications The fact that NZ firms choose greater board independence than required is puzzling. Research examining director characteristics and connectedness, not captured by the NZX Code, may be a fruitful area for future research when disclosure allows. Practical implications Regulators may need to review reasons for mandating changes in factors affecting firm governance before implementing further regulations concerning board structure. Social implications The findings cast doubt on the benefit of mandated board independence for NZ firms. The results imply that “good” governance practices proposed by regulators are not universal. Originality/value This paper tests the impact of mandated board independence following the adoption of the Best Practice Code in 2004 using methodologies that account for endogeneity using 13 years of data.

Explaining the inconsistent results of the impact of information technology investments on firm performance

2017 ◽  
Vol 13 (3) ◽  
pp. 359-380 ◽  
Author(s):  
Ashraf Khallaf ◽  
Mohamed Aboelhamd Omran ◽  
Taha Zakaria
Keyword(s):  
Information Technology ◽  
Firm Performance ◽  
Economic Value ◽  
Business Strategies ◽  
Future Research ◽  
Competitive Advantages ◽  
Content Type ◽  
It Investments ◽  
It Managers ◽  
The Impact

Purpose The purpose of this paper is to identify potential reasons for inconsistent results of the economic value of information technology (IT) investments. Furthermore, the study aims to develop framework and propositions to explore future opportunities and directions for research that examine the returns on IT investments. Design/methodology/approach This study conducted a longitudinal analysis of the literature review concerning the impact of IT investments on firm performance to identify the reasons to the so-called “IT productivity paradox” and to explore future opportunities and directions for future research. Findings The study provides and discusses the reasons for the inconsistent results in the prior research that examines IT investments payoff and suggested a framework and propositions for future research. Results of prior studies should be interpreted in the context of research questions raised, data used, level of analysis, IT investment measures, firm performance measures, time horizon and industry characteristics. Practical implications IT managers and researchers should align IT investments with the environment in which a firm operates and competes and with firm’s business strategies as important determinants of the return on IT investments. Originality/value Understanding the link between firm performance and IT investments assists researchers and practitioners to understand why firms continue to pour enormous resources into IT and, more importantly, specifies the conditions under which firms are likely to achieve competitive advantages from their IT investments.

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