scholarly journals Linking internal marketing orientation to balanced scorecard outcomes in small businesses: the case of travel agencies

2017 ◽  
Vol 11 (3) ◽  
pp. 297-308 ◽  
Author(s):  
Javad Khazaei Pool ◽  
Masood Khodadadi ◽  
Ezat Amirbakzadeh Kalati
Keyword(s):  
Financial Performance ◽  
Balanced Scorecard ◽  
Small Businesses ◽  
Internal Marketing ◽  
Equation Modeling ◽  
Content Type ◽  
Internal Process ◽  
Marketing Orientation ◽  
Process Learning ◽  
The Relationship

Purpose The purpose of this paper is to examine how internal marketing orientation affects balanced scorecard outcomes (financial performance, customer, internal process, learning and growth) in a small service businesses context. Design/methodology/approach Drawing from the small businesses, the relationship between internal marketing orientation and performance is hypothesized and tested. A structural equation modeling (SEM) test with maximum likelihood estimation was performed to test the relationship between the research variables. Findings The results obtained from the SEM analyzes revealed that internal marketing orientation positively impacts the levels of financial and non-financial performance. The results also indicate that non-financial performance measures (that is, customer, internal process, learning and growth) directly affect financial performance. Originality/value This study unpacks the mechanism between internal marketing orientation and balanced scorecard outcomes and contributes to the academic research of internal marketing orientation in the context of small businesses.

Linking knowledge management orientation to balanced scorecard outcomes

2015 ◽  
Vol 19 (6) ◽  
pp. 1224-1249 ◽  
Author(s):  
Hsiu-Fen Lin
Keyword(s):  
Knowledge Management ◽  
Customer Satisfaction ◽  
Financial Performance ◽  
Knowledge Sharing ◽  
Balanced Scorecard ◽  
Equation Modeling ◽  
Content Type ◽  
Internal Process ◽  
Management Orientation ◽  
Knowledge Absorption

Purpose – This study aims to develops the decomposed model to examine the influence of knowledge management orientation (KMO) dimensions (organizational memory, knowledge sharing, knowledge absorption and knowledge receptivity) on balanced scorecard outcomes (learning and growth, internal process, customer satisfaction and financial performance). Design/methodology/approach – Survey data from 244 managers (in charge of KM projects in their companies) in large Taiwanese firms were collected and used to test the decomposed model using the structural equation modeling approach. Findings – This study finds that knowledge sharing is the strongest predictor of internal process performance, while knowledge absorption is pivotal in improving customer satisfaction. The results also show that non-financial performance measures (i.e. learning and growth, internal process and customer satisfaction) directly and indirectly affect financial performance through cause-and-effect relationships. Practical implications – In an increasingly dynamic environment, the building of internal knowledge stocks is likely insufficient, but knowledge must be moved between a firm and external entities (e.g. customers, business partners and education and research institutes) (i.e. building knowledge flows) to achieve increased customer satisfaction and financial performance. Originality/value – Theoretically, the findings of this study suggest that the decomposed approach helps to understand the complex relationships embodied in the KMO–performance link, which cannot be surmised using a composite model. From the managerial perspective, the findings of this study may help academics and managers design and sustain KMO implementation throughout the organization to achieve higher effectiveness, efficiency and profitability.

Investigating causal linkages in the balanced scorecard: an Indian perspective

2018 ◽  
Vol 36 (1) ◽  
pp. 184-207 ◽  
Author(s):  
Adil Zahoor ◽  
Musadiq Amin Sahaf
Keyword(s):  
Financial Performance ◽  
Balanced Scorecard ◽  
Business Processes ◽  
Equation Modeling ◽  
Sequential Dependency ◽  
Content Type ◽  
The Balanced Scorecard ◽  
Customer Perspective ◽  
Employee Learning ◽  
The Relationship

Purpose Kaplan and Norton (1996b) claimed that there exists a sequential dependency between the four balanced scorecard perspectives (learning and growth, internal business processes, customer, and financial). Although theoretically supported by various researchers, the said claim has, somehow, attracted limited empirical attention. Therefore, the purpose of this paper is to investigate whether empirical evidence will support the theoretically grounded interrelations between the four balanced scorecard perspectives. Design/methodology/approach For this study, a total of 13 key performance indicators were identified and then clustered into the four perspectives of balanced scorecard, followed by the development of causal linkages. Data related to these indicators were collected from 1,001 employees and 985 customers of two Indian retail banks and then tested for hypothesized relationships using structural equation modeling. All the constructs were measured using scales developed in previous research works. Findings The results indicate that employee learning and growth positively influence the internal business processes which in turn influence the customer perspective. Finally, the customer perspective has a significant positive influence on the financial performance. Further, it was also revealed that internal business processes mediate the relationship between employee learning and growth and customer perspective. Also, the relationship between internal business processes and financial performance is significantly mediated by customer perspective. Originality/value Majority of the previous research on causal linkages of balanced scorecard has been theoretical in nature. Whatever little empirical research is available in this regard is limited to developed nations. In a developing nation like India, these linkages have seldom been examined in the past. The study has been conducted to plug this gap in the literature and, resultantly, provide further insights into the interrelations of the balanced scorecard perspectives.

From corporate social responsibility activities to financial performance: role of innovation and competitive advantage

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahnoor Zahid ◽  
Hina Naeem ◽  
Iqra Aftab ◽  
Sajawal Ali Mughal
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Competitive Advantage ◽  
Manufacturing Firms ◽  
Equation Modeling ◽  
Content Type ◽  
Corporate Social ◽  
The Relationship

Purpose The purpose of this study is to scrutinize the effect of corporate social responsibility activities (CSRA) of the firm on its financial performance (FP) and analyze the mediating role of innovation and competitive advantage (CA) in the relationship between CSRA and FP in the manufacturing sector of an emerging country, i.e. Pakistan. Design/methodology/approach Data has been collected through an electronic structured questionnaire from 300 middle-level and top-level managers by surveying different manufacturing firms of Gujranwala, Pakistan. The study’s hypotheses have been checked by analyzing the reliability and validity of data and applying confirmatory factor analysis and structural equation modeling through statistical package for the social sciences and analysis of moment structures. Findings Outcomes of this study supported the hypothesized model. It has been found that the CSRA plays a significant positive role in determining the FP of the firm. Furthermore, the CA and innovation have been proved as significant mediators between CSRA and FP. Originality/value The first time examining the intermediation of innovation and CA in the relationship between CSRA and FP is the primary input of this study to the literature. Practically, this study’s findings will help strategy makers of manufacturing firms in emerging countries develop better strategies for implementing CSRA, enhancing innovation, seeking CA and improving FP.

Dependence, trust, and 3PL integration: an empirical study in China

2017 ◽  
Vol 47 (9) ◽  
pp. 927-948 ◽  
Author(s):  
Baofeng Huo ◽  
Chen Liu ◽  
Haozhe Chen ◽  
Xiande Zhao
Keyword(s):  
Financial Performance ◽  
Information Sharing ◽  
Structural Equation ◽  
Mainland China ◽  
Performance Model ◽  
Equation Modeling ◽  
Content Type ◽  
Key Dimensions ◽  
Process Coordination ◽  
The Relationship

Purpose The purpose of this paper is to investigate relationships among dependence, trust, and integration in the Chinese 3PL context. 3PL integration is manifested in two key dimensions: information sharing and process coordination. Design/methodology/approach This study develops a dependence-trust-3PL integration-performance model and tests it using structural equation modeling with survey data collected from 361 companies in the Greater China area (i.e. mainland China, Hong Kong, and Taiwan). Findings The results show that switch dependence is indirectly related to information sharing and process coordination through goodwill trust, while goal dependence has direct links with both integrative behaviors. The authors also found that only goodwill trust mediates the relationship between dependence and integrative behaviors, while ability trust does not mediate any relationships. Finally, the analysis validated the direct link between process coordination and financial performance, but did not find a significant link between information sharing and financial performance. Originality/value Different from most previous studies on similar topics, this study examines the impacts of different types of dependence and trust on different 3PL integration dimensions. As a result, the findings are more specific and have direct relevance to effective 3PL relationship management in China.

Managerial innovative capabilities, competitive advantage and performance of healthcare sector during Covid-19 pandemic period

foresight ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Demetris Vrontis ◽  
Hani El Chaarani ◽  
Zouhour El Abiad ◽  
Sam El Nemar ◽  
Alissar Yassine Haddad
Keyword(s):  
Health Care ◽  
Financial Performance ◽  
Competitive Advantage ◽  
Health Care Sector ◽  
Healthcare Sector ◽  
Equation Modeling ◽  
Content Type ◽  
Innovative Capabilities ◽  
Managerial Capabilities ◽  
The Relationship

Purpose The purpose of this paper is to reveal the impact of dynamic managerial innovative capabilities on the competitive advantage (CA), financial performance (FP) and non-financial performance (NFP) of the health-care sector during the very turbulent Covid-19 pandemic period. The focus is on human behavior and personnel interaction in the hospitals that receive Covid-19 cases. Design/methodology/approach Data for this research was collected from the medical sector in Lebanon. The authors approached 14 public hospitals and 60 private hospitals for the study and only 48 hospitals (total of 284 respondents) accepted to complete the survey and provide data using a structured questionnaire. Findings This study reveals the moderating impact of CA on the relationship between dynamic managerial innovative capabilities and the performance of the health-care sector. Based on 48 Lebanese health-care centers during the Covid-19 pandemic, the results of the structural equation modeling model indicate that dynamic managerial innovative practices positively impact on CA and NFP. The results also reveal that CA has a moderating effect on the relationship between dynamic managerial innovative practices and NFP. Practical implications This study does not reveal any direct or indirect relationship between managerial capabilities and FP during the pandemic. Originality/value As the world deals with the Covid-19 pandemic, the health-care sector needs new approaches and methods for confronting the constantly evolving and turbulent environment. This study examines how health-care leaders are dealing with these dynamic challenges and tests a three-dimensional SEM model of dynamic managerial capabilities (sensing, seizing and reconfiguration) that impact CA.

Socioemotional wealth and human resource policies: effects on family firm performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Juan David Peláez-León ◽  
Gregorio Sánchez-Marín
Keyword(s):  
High Risk ◽  
Financial Performance ◽  
Human Resource ◽  
Family Firms ◽  
Equation Modeling ◽  
Positive Contribution ◽  
Socioemotional Wealth ◽  
Content Type ◽  
Firm Financial Performance ◽  
The Relationship

PurposeThis study analyses whether human resource management (HRM), through the use of four sets of high-performance work policies (HPWPs) (i.e. selection, training, motivation and opportunity policies), mediates the relationship between socioemotional wealth (SEW)—defined as a unique set of nonfinancial family goals—and firm financial performance when family firms face a high-risk context.Design/methodology/approachHypotheses were statistically tested using a structural equation modeling (SEM) methodology with a cross-sectional sample of 196 medium-sized and private family firms in a high-risk context in Spain.FindingsThe results indicate that the relationship between SEW and financial performance in family firms is fully mediated by the use of HPWPs, especially by training and motivation HR policies. The importance given to preserving SEW influences the use of four sets of HPWPs when family firms show clear evidence of being confronted by a financial decline (i.e. a high-risk context). However, to improve their financial results to avoid the firm's failure and thus the loss of their SEW, only those HR policies that focus on training and motivation made a significant and positive contribution to the firm financial performance.Originality/valueThis study contributes to the literature on family firms and HRM by adopting an alternative theoretical framework to understand how the importance of nonfinancial family goals may affect employee structures and management policies, thereby improving financial performance in family firms.

scholarly journals Government institutional support, entrepreneurial orientation, strategic renewal, and firm performance in transitional China

2019 ◽  
Vol 25 (3) ◽  
pp. 433-456 ◽  
Author(s):  
Chengli Shu ◽  
Dirk De Clercq ◽  
Yunyue Zhou ◽  
Cuijuan Liu
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Entrepreneurial Orientation ◽  
Transition Economy ◽  
Institutional Support ◽  
Equation Modeling ◽  
Content Type ◽  
Strategic Renewal ◽  
Firm Financial Performance ◽  
The Relationship

PurposeThe purpose of this paper is to examine how entrepreneurial orientation (EO) and strategic renewal (as a critical dimension of corporate entrepreneurship) might transmit government institutional support and thereby enhance firm performance in a transition economy.Design/methodology/approachMulti-respondent data were collected from 230 Chinese-based firms. The hypotheses were tested with structural equation modeling, in combination with a bias-corrected bootstrap method, to assess the significance of the theorized direct and indirect relationships.FindingsGovernment institutional support enhances EO and strategic renewal individually, yet EO also fully mediates the relationship between government institutional support and strategic renewal. Moreover, strategic renewal fully mediates the relationship between EO and firm financial performance, and it partially mediates the relationship between EO and firm reputation.Originality/valueThis study contributes to entrepreneurship literature by testing an organization-level model of entrepreneurial phenomena in established firms that identifies EO and strategic renewal as two distinct mechanisms through which government institutional support in a transition economy can enhance organizational effectiveness, which entails the firm’s financial performance and reputation. In doing so, this study provides an extended understanding of how EO and strategic renewal might influence a firm’s financial and nonfinancial outcomes in different ways.

Examining the influence of expatriates’ social capital and knowledge-sharing behavior on financial performance

2019 ◽  
Vol 28 (3) ◽  
pp. 557-577 ◽  
Author(s):  
Wann Yih Wu ◽  
Li Yueh Lee ◽  
That Thi Pham
Keyword(s):  
Social Capital ◽  
Customer Satisfaction ◽  
Financial Performance ◽  
Knowledge Sharing ◽  
Balanced Scorecard ◽  
Organizational Support ◽  
Content Type ◽  
Moderation Effect ◽  
Internal Process ◽  
The Impact

Purpose The purpose of this paper is to examine the impact of expatriate’s social capital and knowledge sharing on multinational companies’ (MNCs) financial performance, with a specific focus on the influence of trust, commitment, organizational support and the four elements of balanced scorecard (BSC). Design/methodology/approach A quantitative questionnaire survey was conducted using expatriates of MNCs in Taiwan as the respondents. Findings Trust and organizational support are significant predictors of knowledge sharing and social capital, which further facilitate their influence on learning and growth, customer satisfaction, internal process improvement and financial performance of MNCs. Besides, social capital serves as an accelerate agent to promote the influence of trust on knowledge sharing, and customer satisfaction serves as a catalyst on the influence of learning and growth and internal process on a firms’ financial performance. Practical implications This study provides a clear articulation of the role of knowledge sharing on the financial performance and its moderation effect on the elements of BSC. Trust and organizational support are essential for knowledge sharing and expatriates’ social capital. The roles of social capital and knowledge sharing are critical for expatriates to be success in the overseas market places. Originality/value Since the evidences regarding expatriate performance rarely integrate the variables of social capital, knowledge sharing and BSC into a more comprehensive framework, the results of this study can be an important reference for academicians to do further validation. These results are also critical for practitioners to develop dispatching policies for the expatriates in the oversea market places.

scholarly journals Impacts of dynamic managerial capability and international opportunity identification on firm performance

2019 ◽  
Vol 27 (4) ◽  
pp. 339-363 ◽  
Author(s):  
Md Imtiaz Mostafiz ◽  
Murali Sambasivan ◽  
See Kwong Goh
Keyword(s):  
Financial Performance ◽  
Structural Equation ◽  
Negative Relationship ◽  
Manufacturing Firms ◽  
Equation Modeling ◽  
Opportunity Identification ◽  
Developed Country ◽  
Content Type ◽  
The Relationship ◽  
Export Manufacturing

Purpose This paper aims to investigate the antecedents and outcomes of international opportunity identification (IOI) in export-manufacturing firms. The fundamental question addressed in this research is: How does dynamic managerial capability (DMC) of entrepreneurs contribute to IOI and success of the firms? Design/methodology/approach The research model was tested through structural equation modeling among the readymade garment manufacturing firms in the least developed country, Bangladesh. A survey was conducted with a random sampling approach and responses were collected from 390 firms. Findings The salient findings are: DMC has direct and indirect impacts through IOI on financial and non-financial performance; IOI mediates the relationship between managerial social capital and non-financial performance and between managerial cognition and non-financial performance; IOI has a negative relationship with the financial performance of the firms; and scope of accelerated internationalization positively moderates the relationship between IOI and financial performance of firms. Originality/value This paper notably shows that DMC of export-manufacturing entrepreneurs leads to the identification of the right kind of opportunities, which, in turn, generate better performance. It is advantageous for this type of firm to operate a business in multiple countries.

A multi-stage analysis of antecedents and consequences of knowledge management evolution

2014 ◽  
Vol 18 (1) ◽  
pp. 52-74 ◽  
Author(s):  
Hsiu-Fen Lin
Keyword(s):  
Knowledge Management ◽  
Organizational Performance ◽  
Balanced Scorecard ◽  
Equation Modeling ◽  
Research Model ◽  
Content Type ◽  
Internal Process ◽  
Km Strategy ◽  
Multi Stage ◽  
Antecedents And Consequences

Purpose – Drawing from knowledge-based view and balanced scorecard approach, this study seeks to develop an integrative model to examine the influence of two knowledge management (KM) strategies, codification KM strategy and personalization KM strategy, on the multi-stage KM evolution (KM adoption, implementation and institutionalization stages), which in turn affects balanced scorecard outcomes (financial performance, internal process performance, customer performance, and growth and learning performance). Design/methodology/approach – Survey data from 244 managers (currently and directly in charge of KM activities) in large Taiwanese firms were collected and used to test the research model using the structural equation modeling (SEM) approach. Findings – The results have revealed that both the codification KM strategy and personalization KM strategy are positive factors for stage-based KM evolution, but their relative importance differs across the three subsamples. Additionally, the results showed that the internal process and customer perspectives play a critical role in measuring performance during the earlier stages of KM evolution, while the financial and learning and growth perspectives emphasize the performance achievements from the latter stages. Practical implications – Since KM implementation is an evolutionary process, using both financial and non-financial measures to assess organizational performance through KM efforts, such as the four balanced scorecard perspectives, can take full advantage of stage-based KM evolution. The results indicate that the time-lag effect is critical to distinguishing different forms of organizational performance. Originality/value – Theoretically, this study aims to provide a research model that is capable of understanding the antecedents and consequences of staged-based KM evolution. From a managerial perspective, the findings of this study provide valuable guidelines to policy-makers and practitioners in accelerating KM evolution and achieving organizational performance.

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