Inventory management, managerial competence and financial performance of small businesses

2020 ◽  
Vol 10 (3) ◽  
pp. 379-398
Author(s):  
Laura A. Orobia ◽  
Joweria Nakibuuka ◽  
Juma Bananuka ◽  
Richard Akisimire
Keyword(s):  
Financial Performance ◽  
Inventory Management ◽  
Small Businesses ◽  
Cross Sectional ◽  
Bootstrap Analysis ◽  
Content Type ◽  
Correlational Research ◽  
Analysis Technique ◽  
Managerial Competence ◽  
The Relationship

PurposeThe purpose of this study is twofold (1) to establish the relationship between inventory management, managerial competence and financial performance and (2) to test whether inventory management mediates the relationship between managerial competence and financial performance.Design/methodology/approachWe employed cross-sectional and correlational research designs. A questionnaire survey of 304 small businesses in Uganda was utilized. Hypotheses were tested using a bootstrap analysis technique with the aid of Analysis of Moments Structures (AMOS) software.FindingsResults indicate that inventory management and managerial competence are significantly associated with financial performance of small businesses. Further, inventory management partially mediates the relationship between managerial competence and financial performance.Originality/valueRather than focusing on only the direct effects of managerial competence and inventory management, moreover independently, the indirect effect of inventory management is tested. Further, the behavioral perspective of inventory management, as opposed to financial ratios, is utilized.

Competitive advantage

2017 ◽  
Vol 8 (2) ◽  
pp. 221-234 ◽  
Author(s):  
Nixon Kamukama ◽  
Diana Susan Kyomuhangi ◽  
Richard Akisimire ◽  
Laura A. Orobia
Keyword(s):  
Financial Performance ◽  
Competitive Advantage ◽  
Commercial Banks ◽  
Bootstrap Method ◽  
Mediation Effect ◽  
Future Research ◽  
Cross Sectional ◽  
Content Type ◽  
Managerial Competence ◽  
The Relationship

Purpose The purpose of this paper is to examine the mediating role of competitive advantage in the relationship between managerial competence and financial performance of commercial banks in Uganda. Design/methodology/approach A cross-sectional survey was employed using 22 fully licensed and operational commercial banks in Uganda. Data were analyzed using descriptive statistics, zero order correlation and hierarchical regression analyses. Further, the bootstrap method was used to test the mediation effect of competitive advantage. All the analyses were performed using SPSS v21. Findings The findings reinforce the important position of managerial competence on financial performance of commercial banks. First, managerial competence enhances firms’ competitive advantage. Second, managerial competence has an indirect effect on financial performance through competitive advantage. Overall, managerial competence and competitive advantage are strong predictors of financial performance of commercial banks. Research limitations/implications The study employed only a single research methodological approach, therefore future research could be undertaken using a mixed approach and triangulate to compare findings. Furthermore, the findings from the present study are cross-sectional, considering the limitations there in, a longitudinal approach should be explored. Practical implications Emphasis should be put on improving the knowledge and skills of managers so as to attain a competitive edge in the market and thus register increased profits. This will help practitioners make legitimate decisions and conclusions that can foster business growth. Originality/value A mediation effect of competitive advantage in the relationship between managerial competence and financial performance was tested; previous studies have tended to test the direct effects.

Financial service outreach correlates

2015 ◽  
Vol 42 (4) ◽  
pp. 404-420 ◽  
Author(s):  
Stephen Korutaro Nkundabanyanga ◽  
Julius Opiso ◽  
Waswa Balunywa ◽  
Isaac Nabeeta Nkote
Keyword(s):  
Risk Taking ◽  
Pearson Correlation ◽  
Financial Service ◽  
Mediating Effect ◽  
Mediation Effect ◽  
Microfinance Institutions ◽  
Cross Sectional ◽  
Content Type ◽  
Managerial Competence ◽  
The Relationship

Purpose – The purpose of this paper is to establish the relationship between managerial competence, managerial risk-taking behaviour and financial service outreach of microfinance institutions (MFIs). Design/methodology/approach – In this cross-sectional and correlational study, the authors surveyed 52 branches of MFIs from a population of 60 branches of 20 MFIs in eastern Uganda. Two respondents, a branch manager and a senior loan officer, were the units of enquiry for each branch. The authors put forward and tested four hypotheses relating to the significance of the relationship between perceived managerial competence, risk-taking behaviour and financial service outreach using SPSS version 20. The authors established the hypothesized relationships using Pearson correlation coefficients and obtain a mediating effect of risk-taking behaviour using partial corrections and regression analysis. Findings – The results suggest positive and significant relationships between perceived managerial competence, risk-taking behaviour and financial service outreach. However, while the direct relationship between managerial competence and financial service outreach without the mediation effect of risk-taking behaviour of managers was found to be significant, its magnitude reduces when mediation of risk-taking behaviour is allowed. Thus the entire effect does not only go through managerial competence but majorly also, through risk-taking behaviour of managers. Research limitations/implications – This study did not control for environmental factors such as laws and regulations. As such the model may have been under fitted. Nevertheless, the study has introduced a clearer understanding that outreach performance in MFIs rests with competent managers in strategic positions operating in synergy with their risk-taking behaviour. The study informs policy makers that outreach performance of the MFIs depends on the quality of the competence managers have in addition to their risk-taking propensities. Practical implications – Efforts by the stakeholders to improve financial service outreach must be matched with appropriate competences and risk-taking behaviour of managers. Originality/value – The results contribute to extant literature by investigating two explanatory variables for financial service outreach and provide initial evidence of the mediating effect of intrinsic high risk-taking behaviour of managers. Results add to the conceptual improvement in risk-taking behaviour and lend considerable support for the behavioural perspective in the study of financial service outreach of MFIs.

scholarly journals Relevance Of Devidend Policy As The Mediation On The Relationship Between Financial Performance and Debt On Share Prices

2021 ◽  
Vol 7 (1) ◽  
pp. 180-192
Author(s):  
Irma Tyasari ◽  
Supami Wahyu Setiyowati
Keyword(s):  
Financial Performance ◽  
Stock Prices ◽  
Dividend Policy ◽  
Share Price ◽  
Publicly Traded ◽  
Publicly Traded Companies ◽  
Share Prices ◽  
Correlational Research ◽  
Analysis Technique ◽  
The Relationship

The investors place great importance on the share price of publicly traded companies since it may reflect the company’s value. The research objective is to examine the relationship between financial performance and debt at share prices through dividend policy. The method of the research used is quantitative and correlational research. The data analysis technique is the use of smart PLS. The results of the study explain that financial performance has a positive effect on stock prices in the mediation of dividend policy. Debt negatively affects share price mediated by dividend policy. The implication of the study is that companies should consider the benefits as well as risks of borrowing funds from third parties. Investors and potential investors before investing their money in stocks must pay attention to financial performance, corporate debt and dividend policy so that they do not experience losses in their investment.

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.

Cooperative practices and non-financial performance of savings and credit cooperative societies

2020 ◽  
Vol 36 (3) ◽  
pp. 411-425
Author(s):  
Lawrence Musiitwa Kyazze ◽  
Isa Nsereko ◽  
Isaac Nkote
Keyword(s):  
Structural Equation Modeling ◽  
Financial Performance ◽  
Emerging Economies ◽  
Structural Equation ◽  
Design Methodology ◽  
Methodological Approach ◽  
Equation Modeling ◽  
Cross Sectional ◽  
Content Type ◽  
The Relationship

Purpose The purpose of this paper is to examine the relationship between cooperative practices of accountability, cooperative ownership, advanced communication and non-financial performance in savings and credit cooperative societies. Design/methodology/approach The study uses a cross-sectional research design and adopted a mixed methodological approach were hypotheses were statistically tested using structural equation modeling based on survey data (n = 220) and narratives from qualitative findings supported the quantitative findings from savings and credit cooperative societies. Findings The findings reveal that cooperative practices of accountability, cooperative ownership and advanced communication are significantly and positively associated with non-financial performance of savings and credit cooperative societies. Originality/value This study provides empirical evidence on the relationship between cooperative practices of accountability, cooperative ownership and advanced communication and non-financial performance in savings and credit cooperative societies in emerging economies like Uganda. To the best of the authors’ knowledge, there is limited or no study that has used the construct of agency theory in explaining the relationship between cooperative practices and non-financial performance in savings and credit cooperative societies.

scholarly journals Organisational performance and the use of multiple performance measures in an emerging market

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Abdallah Amhalhal ◽  
John Anchor ◽  
Marina Papalexi ◽  
Shabbir Dastgir
Keyword(s):  
Emerging Markets ◽  
Financial Performance ◽  
Performance Measures ◽  
Emerging Market ◽  
Manufacturing Companies ◽  
Organisational Performance ◽  
Cross Sectional ◽  
Content Type ◽  
Financial Performance Measures ◽  
The Relationship

PurposeThis study is an empirical investigation of the relationship between the use of 41 multiple performance measures (MPMs), including financial performance measures (FPM), non-financial performance measures (NFPMs) and organisational performance (OP) in Libya.Design/methodology/approachThe results are based on cross-sectional questionnaire survey data from 132 Libyan companies (response rate 61%), which were obtained just before the so-called Arab Spring.FindingsMPMs are used by both manufacturing and non-manufacturing companies. Libyan business organisations are more likely to use FPMs than NFPMs. However, these companies still rely more heavily on FPMs. The relationships between the use of NFPMs and OP and the use of MPMs and OP are positive and highly significant. The relationship between the use of FPMs and OP is positive but not significant.Research limitations/implicationsThe high power distance associated with the conservative, Libyan, Arab context will reinforce the tendency to use FPMs more than NFPMs. This may provide a performance advantage to those organisations which do adopt NFPMs.Practical implicationsAlthough there may be institutional barriers to the use of NFPMs in Libya, and other emerging markets, these are not insuperable and there is a payoff to their use.Originality/valueNo previous studies of emerging markets, such as the Middle East or North Africa, have looked at the relationship between OP and the adoption of such a large array of MPMs.

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.

scholarly journals Inventory Management and Financial Performance of Private Hospitals: A Positivist Evidence from Western Uganda

2021 ◽  
Vol 6 (1) ◽  
pp. 24-34
Author(s):  
Cranimar Muhindo ◽  
John Rwakihembo
Keyword(s):  
Data Analysis ◽  
Financial Performance ◽  
Inventory Management ◽  
Management Systems ◽  
Simple Linear Regression ◽  
Cross Sectional ◽  
Private Hospitals ◽  
Western Uganda ◽  
The Relationship ◽  
Positivist Approach

Purpose: This study set out to empirically examine the relationship between inventory management and private hospitals' financial performance in Western Uganda. Methodology: The study adopted a positivist approach and a cross-sectional research design to collect data from 32 Private hospitals in Western Uganda. The study used a closed-ended questionnaire to collect data and simple linear regression for data analysis. Findings: Results revealed inventory management as a significant predictor of private hospitals' financial performance in Western Uganda. The study recommended that private hospitals adopt robust and scientific inventory management systems and models that aim to optimise stock levels and minimise costs if they are to achieve substantial financial performance. Contribution to Practice and Policy: The study has deep-rooted the urgent need for private hospitals to adopt more stringent inventory management systems that will ensure adequate stock levels, minimise costs and enhance superior financial performance. However, the study was positivistic, thus subject to methods bias that could have affected the results' validity.

The glass slipper effect: understanding the Nordic gender equality paradox from an identity fit perspective

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sabrina Spangsdorf ◽  
Alex Forsythe
Keyword(s):  
Gender Equality ◽  
Research Design ◽  
Design Methodology ◽  
Survey Methodology ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
Content Type ◽  
Correlational Research ◽  
Identity Perception ◽  
The Relationship

PurposeThis paper aims to introduce an identity fit perspective adding to the understanding of the Nordic gender equality paradox of top managing positions using a Danish sample as case.Design/methodology/approachIn total, five hypotheses concerning identity perception of top managing positions and the relationship with own identity and type of industry were tested through a correlational research design utilizing a cross-sectional survey methodology. A total of 1,054 women aged 18–60 participated in the survey.FindingsThe analysis revealed a strong masculine perception of a top managing position whereas women's own identity perception was much more diverse. The more masculine a woman perceives herself to be, the more motivated she is to climb the career ladder. Type of industry moderates the relationship between identity fit and motivation for top positions, but only for the masculine traits. The relationship between identity fit and motivation is stronger for women in high masculine industries.Originality/valueApart from being the first study of identity fit in a Nordic setting, this study contributes to the identity fit theory by employing a semi-objective fit approach exploring identity fit on an industry level, including female-dominated industries, as well as examining identity fit in relation to motivation to pursue a top managing position.

Examining the mediating role of innovativeness in the link between core competencies and SME performance

2019 ◽  
Vol 27 (1) ◽  
pp. 103-129 ◽  
Author(s):  
Hee Song Ng ◽  
Daisy Mui Hung Kee ◽  
T. Ramayah
Keyword(s):  
Financial Performance ◽  
Structural Model ◽  
Core Competencies ◽  
Self Report ◽  
Mediation Effect ◽  
Technical Competence ◽  
Cross Sectional ◽  
Content Type ◽  
The Core ◽  
The Relationship

Purpose The purpose of this paper is to evaluate the effect of core competencies, namely, transformational leadership (TFL), entrepreneurial competence and technical competence on financial performance through the mediation effect of innovativeness, among owner-managed small and medium-sized enterprises (SMEs) in developing countries. Design/methodology/approach A research model was developed to test nine research hypotheses. Self-report questionnaires designed for this study were sent to SME owner-managers in Malaysia. A total of 178 completed questionnaires were successfully collected. SPSS and SmartPLS were used to perform the data analysis to test the measurement model and structural model. Findings This paper provides empirical evidence that behavioural innovativeness mediates the relationship between TFL and financial performance, product innovativeness mediates the relationships among entrepreneurial competence, technical competence and financial performance and process innovativeness mediates the relationship between technical competence and financial performance. Research limitations/implications The findings of this study are potentially limited by perceptual measures, cross-sectional data and the risk of response bias from a single informant. Practical implications Owner-managed SMEs can focus on developing the core competencies to achieve financial performance through innovative products, processes and behaviours. Policymakers and practitioners can gain fresh insights into the complexity of sustaining the business activities and financial performance of SMEs through the core competencies and innovativeness. Originality/value The extant literature has revealed that entrepreneurship, leadership, expertise and innovativeness are considered key factors in promoting financial performance, yet little is known about the combined effects of the core competencies on financial performance through innovativeness for owner-managed SMEs in the context of a developing country. The study makes an important contribution to filling this research gap.

Sign in / Sign up

Export Citation Format

Share Document