Dimensions of organisational innovativeness and company financial performance in the biotechnology sector

2019 ◽  
Vol 40 (6) ◽  
pp. 1110-1130 ◽  
Author(s):  
Krista Jaakson ◽  
Hannele-Marianne Aljaste ◽  
Piia Uusi-Kakkuri
Keyword(s):  
Financial Performance ◽  
Human Resource ◽  
Statistical Tests ◽  
Qualitative Comparative Analysis ◽  
Small Sample ◽  
Content Type ◽  
Human Resource Policies ◽  
Biotechnology Companies ◽  
Biotechnology Sector ◽  
Pharmaceutical Biotechnology

Purpose The relationship between organisational innovativeness (OI) and company performance has been studied extensively, and the associations found have mostly been positive. However, as OI is a multidimensional concept, more nuanced research is needed to identify which dimensions of innovativeness companies should focus on. The purpose of this paper is to longitudinally investigate the links between dimensions of OI and company financial performance, based on a sample of Finnish and Estonian pharmaceutical biotechnology companies. Design/methodology/approach Interviews inquiring about OI were conducted in 26 biotechnology companies and then their performance was measured over three subsequent years using objective financial data. Due to limited sample size, qualitative comparative analysis is employed in addition to non-parametric statistical tests. Findings Overall, OI did not decisively influence financial performance in the studied sector. There were, however, dimensions related to human resource policies that appeared to have more potential to positively impact financial performance, whereas the strategic dimension was actually aversive to certain performance indicators. Research limitations/implications The study limitations are a small sample, possible managerial bias in the assessment of OI, and focus on financial measures only. Practical implications The study demonstrates that OI is a multidimensional construct and not all dimensions play an equal role in financial performance. Innovation-supportive human resource policies and strategic flexibility contributes to financial performance in the pharmaceutical biotechnology sector. Originality/value The contribution of the study is the analysis of a specific sector with a longitudinal approach by bridging quantitative and qualitative approach.

Mixed-gender ownership and financial performance of SMEs in South Africa

2016 ◽  
Vol 8 (2) ◽  
pp. 117-136 ◽  
Author(s):  
Beatrice Desiree Simo Kengne
Keyword(s):  
South Africa ◽  
Financial Performance ◽  
Negative Impact ◽  
Firm Survival ◽  
Industrial Sector ◽  
Individual Characteristics ◽  
Small Sample ◽  
Gender Composition ◽  
Content Type ◽  
Mixed Gender

Purpose The purpose of this paper is to investigate whether the presence of women among owner-stakeholders affects firms’ financial performance. Particularly, it extends the corporate governance literature by linking stakeholder theory and gender differences to explain why gender composition of ownership matters for firms’ performance. As the management of small and medium-scale enterprises (SMEs) revolves around owner-managers and their individual characteristics that are likely to affect their achievements, the study further investigates the relationship between the gender composition of ownership and the firm survival. Design/methodology/approach Using survey data on SMEs for 2007 and 2010, this study uses a panel-level heteroskedasticity technique and a probit methodology to assess the effect women’s presence among owners may exert on SMEs performance and survival, respectively. Findings Results indicate that firms jointly owned by men and women appear to perform better than those owned by men although the presence of women among owners does not correlate with firm survival. Research limitations/implications While the findings of this study shed some light on the performance impact of gender composition of firm ownership, reports based on the presence of women among owners may not present the full picture. Whether the ownership is shared equally between different genders might provide further insides on the magnitude and/or robustness of such effect. Moreover, a small sample period (T = 2) was used to analyse a single industrial sector (manufacturing), and even though the Hausman test confirmed the use of random-effects specification, caution should be taken when generalizing the findings to other cases. Practical implications The findings suggest that the leadership in mixed-gender context propels a perspective of women as a valuable resource within SMEs, but relying on it to sustain the survival would be unwise. Social implications South Africa scores particularly high on positive actions towards women entrepreneurship, and this is compounded in the SMEs sector by managerial attitudes that could offer positive developments for women. Originality/value The positive and significant relationship between women’s presence among owners and SMEs financial performance in South Africa complements the almost exclusively reported negative impact of gender diversity on firm performance. Consequently, mixed-gender owners’ team can be used as a fulcrum to promote SMEs growth in South Africa.

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.

Internationalization and failure risk patterns

2019 ◽  
Vol 29 (1) ◽  
pp. 25-43 ◽  
Author(s):  
Oliver Lukason ◽  
Tiia Vissak
Keyword(s):  
Financial Performance ◽  
Statistical Tests ◽  
European Market ◽  
Content Type ◽  
Failure Risk ◽  
Single European Market ◽  
Medium Risk ◽  
Universal Prediction ◽  
Export Shares ◽  
Target Markets

PurposeThis paper aims to find out what kind of export and failure risk patterns exist among young Estonian manufacturing exporters and explore their interlinkages.Design/methodology/approachThe sample consisted of 208 young Estonian manufacturing exporters. Based on internationalization literature, export patterns were detected with a consecutive three-stage clustering of export sales share from total sales, outside-Europe sales share from export sales and number of target markets, while failure risk patterns were detected by clustering failure probabilities obtained from a universal prediction model. The interconnection of export patterns with financial ratios and failure risk patterns was studied with statistical tests.FindingsSix main internationalization patterns existed. In all, 49 per cent of firms exported to a single European market and their export share was constantly very low, while even most of the firms with high export shares (39 per cent of the sample) were also active on one European market. In terms of failure risk patterns, 49 per cent of firms had constantly very low failure risk, while 51 per cent of firms had medium risk. Higher export engagement did not lead to better financial performance or lower failure risk.Originality/valueThis study is the first to find out if firms following different export patterns are also characterized by specific financial performance and failure risk. In addition, studies encompassing young exporters’ specific target markets and failure risk development are rare. While exporters’ and non-exporters’ financial performance differences have been frequently documented in favor of the former, this study found no such differences for different types of young exporters.

Integrated reports, external assurance and financial performance

2019 ◽  
Vol 11 (2) ◽  
pp. 317-350 ◽  
Author(s):  
Orhan Akisik ◽  
Graham Gal
Keyword(s):  
Financial Performance ◽  
North American ◽  
Small Sample Size ◽  
Panel Data Analysis ◽  
Small Sample ◽  
Global Reporting Initiative ◽  
Significant Positive Association ◽  
Content Type ◽  
Corporate Websites ◽  
The Impact

Purpose The purpose of this paper is to examine the relationship between integrated reports, external assurance and financial performance for North American firms between 2011 and 2016. Design/methodology/approach Corporate websites were examined for disclosures which included both financial and non-financial information. Compustat North America and Global Reporting Initiative (GRI) websites provided additional data for the analysis. Findings Using a panel data analysis, the results provide evidence that there is a significant positive association between integrated reports and multiple measures of financial performance. Moreover, this positive effect is enhanced when integrated reports are assured by accounting firms. Research limitations/implications There are relatively a small number of firms that do this kind of reporting. A major limitation of the study is the small sample size. Practical implications As stakeholders find information in integrated reports relevant, there needs to be standardization on their content and level of assurance. Standard setters and regulators should be involved in setting these standards and assurance guidelines. Social implications Although it is clear that there is a cost to firms which produce integrated reports, the benefits to society may outweigh these costs. This may go beyond the benefits to shareholders as they make investment decisions. Originality/value According to the knowledge of the authors, this is the first study that examines the impact of integrated reports and external assurance on financial performance for North American firms.

The impact of a learning organization on performance

2017 ◽  
Vol 41 (2) ◽  
pp. 177-193 ◽  
Author(s):  
Kyoungshin Kim ◽  
Karen E. Watkins ◽  
Zhenqiu (Laura) Lu
Keyword(s):  
Financial Performance ◽  
Organizational Performance ◽  
Human Resource Development ◽  
Human Resource ◽  
Learning Organization ◽  
Resource Development ◽  
Equation Modeling ◽  
Content Type ◽  
The Relationship ◽  
Positive Effect

Purpose The purpose of this study is to examine the relationships among a learning organization, knowledge and financial performance using the Dimensions of the Learning Organization Questionnaire and its abbreviated version. Design/methodology/approach This study used a secondary data set and performed second-order factor analysis and structural equation modeling for testing the proposed relationships. Findings The study found that a learning organization has a positive effect on knowledge performance; knowledge performance has a positive effect on financial performance; and knowledge performance fully mediates the relationship between a learning organization and financial performance. Research limitations/implications This study contributes to validating the current dimensionality of the theoretical framework of a learning organization proposed by Watkins and Marsick (1993, 1996) and offers a valid conceptual framework of the relationship among the learning culture and organizational performance dimensions. Practical implications This study re-stresses the significance of the learning and knowledge generated by the human resources of an organization and developed by human resource development practitioners. Originality/value This study is valuable to human resource development scholars and practitioners interested in improving and measuring organizational performance.

Antecedents of small business financial performance: the role of human resource management practices and strategy

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Willie Chinyamurindi ◽  
Janatti Bagorogoza Kyogabiirwe ◽  
Jolly Byarugaba Kabagabe ◽  
Samuel Mafabi ◽  
MTutuzeli Dywili
Keyword(s):  
Resource Management ◽  
Human Resource Management ◽  
Financial Performance ◽  
Human Resource ◽  
Small Businesses ◽  
Management Practices ◽  
Content Type ◽  
Human Resource Management Practices ◽  
The Relationship

PurposeThere is noted emphasis on the role of small businesses as conduits for economic development especially in emerging economies. Given this, there is need for constantly seeking for ways to assist small businesses achieve success. Calls exist in the literature to investigate the combined role that strategy and human resource management practices can play leading to efforts of financial success.Design/methodology/approachA structured questionnaire was utilised and data collected from 401 small businesses operating in the Eastern Province of South Africa. Pearson product–moment correlation and hierarchical regression were used in the data analysis.FindingsThe results confirm that a direct relationship exists between strategy and financial performance. Further, the relationship is made significant only through the mediation effect of human resource management practices.Practical implicationsTo fully realise the enactment of strategy within small businesses there is need to pay attention to the role that human resource management practices may potentially have on financial performance. Small business owner-managers need to ground their strategies with sound human resource management practices. Through this, firm financial performance can be attained.Originality/valueThe paper sheds light and presents a model that illustrates the mediating role of human resource management practices on the relationship between strategy and financial performance.

Management capability and performance in Spanish family firms

2016 ◽  
Vol 29 (3) ◽  
pp. 303-325 ◽  
Author(s):  
Lucia Garcés-Galdeano ◽  
Carmen García-Olaverri ◽  
Emilio Huerta
Keyword(s):  
Human Resource ◽  
Family Firms ◽  
Operational Performance ◽  
Management Skills ◽  
Content Type ◽  
Human Resource Policies ◽  
Management Capability ◽  
Spanish Family ◽  
And Performance ◽  
Performance Gains

Purpose The purpose of this paper is to explore the possible causes of the heterogeneous productivity observed in Spanish firms, finding evidence of a link between managerial capability and higher productivity in the context of family firms. Also, innovative human resource policies are much more frequently found in companies where there is a high level of management capability. Design/methodology/approach Productivity differences in Spanish family firms are, for the first time, analysed from a managerial view, and using multiple correspondence analysis (MCA). Findings This paper proposes a way to measure managerial capability. Innovative human resource policies are much more frequently found in companies with high levels of management capability. The authors show that sustained competitive advantage is not just a function of single or isolated components, but rather a combination of human capital elements. Besides, a clear association between high managerial capability and performance in family firms is established. Thus, better management skills enable Spanish family firms to design the necessary strategies and internal structures to facilitate their adjustment to the business environment, and, thereby, achieve operational performance gains. Originality/value This paper proposes a way to measure managerial capability and its association with productivity in Spanish family firms using MCA. The authors also show a clear positive association between high managerial capability and performance in family firms. Thus, better management skills enable Spanish family firms to achieve operational performance gains.

The employability skills of graduates and employers’ options in Portugal

2018 ◽  
Vol 60 (9) ◽  
pp. 1097-1111 ◽  
Author(s):  
Fátima Suleman ◽  
Ana Maria Costa Laranjeiro
Keyword(s):  
Human Resource Development ◽  
Human Resource ◽  
Technical Skills ◽  
Small Sample ◽  
Shared Responsibility ◽  
Data Set ◽  
Policy Makers ◽  
Content Type ◽  
The Relationship ◽  
Remedial Strategies

Purpose Available literature overlooks the factors that affect employers’ opinions of the skills graduates bring to the labour market. The purpose of this paper is to examine the relationship between the perception of graduates’ skills and the employers’ anticipative and remedial strategies. Design/methodology/approach A qualitative multiple case study is used and data were gathered from interviews with human resource managers in ten firms in Portugal. The data set includes information on perceptions of graduates’ skills, solutions for the acquisition of skills, hiring and training policies, and practices associated with university–industry linkages. Findings Almost all the employers sampled are unsatisfied with graduates’ preparation in soft skills and other personal traits. Some report skill shortages and gaps in technical skills that result in training costs. The perception of technical skills varies according to anticipative and remedial strategies. Research limitations/implications This is an explorative study with a very small sample of firms. However, it is a first step towards further research into whether the perception of graduates’ skills is affected by anticipative and remedial strategies implemented by firms within a particular human resource development system. Practical implications It is argued that the responsibility for graduates’ employability should be shared. Practitioners should learn how to interact with higher education, researchers should profit from insights into typologies of employers’ strategies on skill formation, and policy makers should understand that employers are heterogeneous and there is no one-size-fits-all solution. Social implications Universities, employers and policy makers should understand that the employability of graduates presupposes shared responsibility. Originality/value The relationship between the strategies employers adopt to access skills and their perception of graduates’ skills is a quite underexplored topic.

Enhancing business performance through green human resource management practices: an empirical evidence from Malaysian manufacturing industry

2020 ◽  
Vol 69 (8) ◽  
pp. 1585-1607
Author(s):  
Arsalan Mujahid Ghouri ◽  
Venkatesh Mani ◽  
Mustafa R. Khan ◽  
Naveed R. Khan ◽  
Anugamini Priya Srivastava
Keyword(s):  
Resource Management ◽  
Human Resource Management ◽  
Human Resource ◽  
Significant Relationship ◽  
Business Performance ◽  
Manufacturing Industry ◽  
Small Sample ◽  
Content Type ◽  
Green Human Resource Management ◽  
Relationship Of

PurposeThe purpose of this study is to assess the key determinants of green human resource management (GHRM) and investigate its impact on environmental performance (EP) and business performance (BP).Design/methodology/approachThe research employed SmartPLS 3 and follows a cross-sectional research design. Data from 179 employees were collected using a convenience sampling technique from the firms that adopted GHRM practices.FindingsThe research found a significant relationship of GHRM with EP and also reported the significant relationship between EP and BP. Moreover, EP significantly mediates the relationship of GHRM with BP.Research limitations/implicationsA relatively small sample size of employees was used that may suggest the need for a diverse and more representative sample. The paper is based on data collected from the Malaysian manufacturing industry – other economic sectors and Asian countries may offer different results.Practical implicationsThe paper identifies the need for incorporating GHRM practices and culture at the workplace to encourage positive green behavior in employees which will increase the EP and BP of the firm.Originality/valueThis paper reported the initial empirical findings after the March 7th incident on EP of businesses in Malaysia, where businesses have initiated the adoption of GHRM practices.

Global HRM standards as boundary objects: a device to enhance legitimacy and status

2017 ◽  
Vol 46 (6) ◽  
pp. 1089-1103
Author(s):  
Ylva Ulfsdotter Eriksson
Keyword(s):  
Human Resource ◽  
Small Sample Size ◽  
Small Sample ◽  
Content Type ◽  
Global Standards ◽  
Specific Occupation ◽  
The Given ◽  
The Relationship ◽  
Legitimacy Status ◽  
Practical Implications

Purpose In 2016, the International Organization for Standardization (ISO) introduced new standards for human resource management (HRM). The purpose of this paper is to describe and explain the significance that human resource (HR) professionals attribute to global HRM standards, what outcomes they envisage for the profession and organizations, and what influences engagement in the standardization project. Design/methodology/approach The analyses interpret the relationship between standards, professions, and organizations by combining theories of professions with concepts from institutional theory. The study is ethnographic and consists of observations of meetings and interviews with eight participants from the Swedish committee participating in the ISO project. Findings HR professionals consider HRM standards positive for the profession’s legitimacy, status, and development, which are also considered beneficial for organizations. However, difficulties in recruiting participants and organizations to the standardization project may prevent positive exchanges for the profession, and point to a weak interest in HRM issues from the HR professionals themselves. Research limitations/implications The generalizability of the results is somewhat limited due to the small sample size. Nevertheless, the study provides insights into how HR professionals reason about their profession and professionalization. Practical implications Gaining insights into the forthcoming global standards for HRM is important for HR professionals. These standards may be implemented in organizations worldwide and affect how HRM is conducted, and therefore also have a profound effect on the profession. Originality/value The ISO’s targeting of a specific occupation is unique. The paper contributes with the knowledge on how professionals relates to standardization of the given field.

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