Shadow prices for intangible resources

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Elena Shakina ◽  
Iuliia Naidenova ◽  
Angel Barajas
Keyword(s):  
Performance Management ◽  
Management Practices ◽  
Balance Sheet ◽  
Market Value ◽  
Capital Budgeting ◽  
Hedonic Pricing ◽  
Shadow Prices ◽  
Positive Contribution ◽  
Content Type ◽  
Intangible Resources

PurposeFocusing on managerial problems related to the measurement of intangibles, this paper develops and validates a hedonic-pricing methodology for the evaluation of the intangible resources of companies obtaining their shadow prices.Design/methodology/approachThe paper adapts a hedonic-pricing methodology developed primarily for markets in real estate and secondhand cars to define how much intangibles may contribute to companies' market value. A certain calibration of the original tool has been developed to make this methodology appropriate for interpretation and practical use. The main advantage of this approach is that it allows for an evaluation of the shadow prices of intangible resources. These prices can be interpreted as the market value of the intangible resources which are not reflected on the balance sheet.FindingsThe results of this study demonstrate that hedonic pricing with a self-selection correction generates robust estimates. As one can see, the positive contribution of a high endowment of intangibles for all shadow prices is confirmed through estimations using two different techniques. Meanwhile, the negative effect of a low endowment is even more evident for the baseline model. This model shows consistent negative shadow prices for the majority of underinvested intangibles. Brands have the highest shadow prices in the introduced models; human capital, as measured by the qualification of top management and investments in employees, has likewise demonstrated high prices. However, most structural resources seem to be not reflected to a large degree in companies' market value.Practical implicationsThis paper brings new opportunities to obtain the monetary value of intangible resources based on estimated market prices of a corporation's resource portfolio. These prices may be used for several purposes – for example, benchmarking for performance management, capital budgeting or knowledge-management practices. Moreover, by having methodological value, this study opens ways to evaluate any other intangibles which are not explicitly discussed in the empirical test of this particular study.Originality/valueThis study primarily contributes to the methodological advancement of evaluation of corporate intangible resources. It departs from the conventional hedonic-pricing mechanism to identify cogent estimates to intangibles in monetary terms. Importantly, this mechanism implies individual shadow prices for specific intangible resources which makes the contribution of this study unique for the existing literature, both within resource-based and value-based views.

Organizational learning, knowledge management practices and firm’s performance

2015 ◽  
Vol 22 (1) ◽  
pp. 14-39 ◽  
Author(s):  
Ajay K. Jain ◽  
Ana Moreno
Keyword(s):  
Knowledge Management ◽  
Organizational Learning ◽  
Performance Management ◽  
Management Practices ◽  
Achievement Orientation ◽  
Content Type ◽  
Power Generation Equipment ◽  
Engineering Organization ◽  
Reward And Recognition ◽  
The Impact

Purpose – The study aims at investigating the impact of organizational learning (OL) on the firm’s performance and knowledge management (KM) practices in a heavy engineering organization in India. Design/methodology/approach – The data were collected from 205 middle and senior executives working in the project engineering management division of a heavy engineering public sector organization. The organization manufactures power generation equipment. Questionnaires were administered to collect the data from the respondents. Findings – Results were analyzed using the exploratory factor analysis and multiple regression analysis techniques. The findings showed that all the factors of OL, i.e. collaboration and team working, performance management, autonomy and freedom, reward and recognition and achievement orientation were found to be the positive predictors of different dimensions of firm’s performance and KM practices. Research limitations/implications – The implications are discussed to improve the OL culture to enhance the KM practices so that firm’s performance could be sustained financially or otherwise. The study is conducted in one division of a large public organization, hence generalizability is limited. Originality/value – This is an original study carried out in a large a heavy engineering organization in India that validates the theory of OL and KM in the Indian context.

Managing the most important asset: a twenty year review on the performance management literature

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ebina Justin M.A. ◽  
Manu Melwin Joy
Keyword(s):  
Performance Management ◽  
Management Practices ◽  
Organizational Outcomes ◽  
Future Research ◽  
System Quality ◽  
Content Type ◽  
Non Profit ◽  
Quantitative Studies ◽  
Theoretical Perspectives ◽  
Human Resource Management Practices

Purpose The three objectives served by this review are to provide readers a limpid insight about the topic performance management (PM), to analyse the latest trends in PM literature and to illustrate the theoretical perspectives. It would be fascinating for the practitioners and researchers to see the latest trends in the PM system, which is not yet covered in previous reviews. The study covers the historical and theoretical perspectives of human resource management practices. We also try to unveil some of the theoretical debates and conflicts regarding the topic. Design/methodology/approach We reviewed 139 studies on PM published within the last 20 years (2000–2020). The method used here is the integrative review method. The criteria used to determine studies are articles from peer-reviewed journals regarding the PM system published between 2000 and 2020. The initial search for studies was conducted using an extensive journal database, and then an intensive reference-based search was also done. Each selected article was coded, themes were identified, and trends for every 5 years were determined. All the articles were analysed and classified based on the methodology used to identify qualitative and quantitative studies. Findings The review concludes that PM literature's emphasis shifted from traditional historical evaluations conducted once or twice a year to forward-looking, feedback-enriched PM systems. By segregating the studies into 5-year periods, we could extract five significant trends that prevailed in the PM literature from 2000 to 2020: reactions to PM system, factors that influence PM system, quality of rating sources, evaluating the PM system and types of the PM system. The review ends with a discussion of practical implications and avenues for future research. Research limitations/implications It is equally a limitation and strength of this paper that we conducted a review of 139 articles to cover the whole works in PM literature during the last 20 years. The study could not concentrate on any specific PM theme, such as exploring employee outcomes or organizational outcomes. Likewise, the studies on public sector and non-profit organizations are excluded from this review, which constitutes a significant share of PM literature. Another significant limitation is that the selected articles are classified only based on their methodology; further classification based on different themes and contexts can also be done. Originality/value The study is an original review of the PM literature to identify the latest trends in the field.

scholarly journals Public sector reform and the state of performance management in Portugal: is there a gap between performance measurement and its use?

2020 ◽  
Vol 33 (6/7) ◽  
pp. 613-627
Author(s):  
Ana I. Melo ◽  
Luís F. Mota
Keyword(s):  
Data Analysis ◽  
Public Sector ◽  
Performance Management ◽  
Public Administration ◽  
Management Practices ◽  
Ideal Type ◽  
The State ◽  
Performance Information ◽  
Content Type ◽  
Public Managers

PurposeThis paper aims to analyse the state of performance management in the Portuguese public sector as part of the efforts towards public administration reform.Design/methodology/approachTheoretically, the authors took Bouckaert and Halligan's (2008, pp. 35–39) approach into consideration to analyse the adoption of performance management practices. This approach was supplemented by an adaptation of Pollitt and Bouckaert's (2011, p. 33) framework to analyse the context for administrative reforms. The used data analysis techniques include documentary analysis (namely legislation and evaluation reports of reform efforts), secondary data analysis and a survey conducted with 296 Portuguese top public managers.FindingsThe findings show that Portuguese public sector organisations adopted several tools to measure performance over the years, but failed to incorporate performance information into their management practices or to properly use it for either internal or external purposes. Concerning the ideal types proposed by Bouckaert and Halligan (2008, p. 36), Portugal is considered to fit the “performance administration” ideal type, even though it is moving closer to the “managements of performance” ideal type.Originality/valueThis is one of the first comprehensive studies on the state of performance management in Portugal framed within the broader context of public sector reforms. The findings will be of interest both to scholars who study public administration reforms and performance management and to Portuguese policy makers and public managers who are interested in understanding and improving the way performance information is measured, incorporated and used in that sector.

Performance management perception in Kenya

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nickson Hebert Odongo
Keyword(s):  
Performance Management ◽  
Management Practices ◽  
Positive Impact ◽  
Performance Standards ◽  
Future Research ◽  
Social Scientists ◽  
Content Type ◽  
Performance Review ◽  
And Performance ◽  
Government Workers

Purpose This paper aims to present an analysis of the perception of performance management practices and transformations by investigating what devolved governments of Kenya are doing and ought to do after which the approaches of performance and performance management are evaluated. Design/methodology/approach A descriptive assessment of five devolved governments of Kenya is carried out. This study covered 518 respondents across the above-sampled governments. Findings The outcomes demonstrated that there are guidelines established by the counties to measure the performance of workers where tested variables about setting performance standards and performance review information against their effect on performance improvement and performance measurement, respectively, are statistically significant, and therefore have a positive impact on the eventual performance of devolved governments. Practical implications The results support scholars, practitioners and social scientists in development studies for the planning and management of public organizations. The thought of factors that enhance or impede devolved government workers’ performance can be explored in future research. Originality/value The thought of performance management perception, especially in a developing country, is a theoretical milestone.

scholarly journals Performance management practices in humanitarian organisations

2020 ◽  
Vol 10 (2) ◽  
pp. 125-168
Author(s):  
Hella Abidi ◽  
Sander de Leeuw ◽  
Wout Dullaert
Keyword(s):  
Supply Chain ◽  
Performance Measurement ◽  
Performance Management ◽  
Management Practices ◽  
Empirical Studies ◽  
Supply Chain Performance ◽  
Content Type ◽  
Humanitarian Supply Chains ◽  
Design And Implementation ◽  
Performance Measurement Systems

PurposeWe examine how design and implementation practices for supply chain performance management that have proven successful in commercial organisations apply to humanitarian organisations (HOs) to guide the process of designing and implementing performance management in humanitarian organisations.Design/methodology/approachWe identify from the literature ten successful practices regarding the design and implementation of supply chain performance management in commercial businesses. We apply these, using action research over a four-year period, at Médecins sans Frontières (MSF) Belgium and draw conclusions from this.FindingsWe find that tools and techniques, such as workshops and technical sheets, are essential in designing and implementing supply chain performance measurement projects at HOs. Furthermore, making a link to an IT project is crucial when implementing performance measurement systems at HOs. Overall, our case study shows that performance management practices used in business can be applied and are relevant for humanitarian supply chains.Originality/valuePrevious research has argued that there are few empirical studies in the domain of performance management at humanitarian organisations. To the best of our knowledge, this paper is the first to provide a longitudinal understanding of the design and implementation of supply chain performance measurement at HOs.

Remastering contemporary enterprise performance management systems

2017 ◽  
Vol 21 (3) ◽  
pp. 250-260 ◽  
Author(s):  
Michaela Blahova ◽  
Premysl Palka ◽  
Parissa Haghirian
Keyword(s):  
Performance Management ◽  
Management Practices ◽  
Management Systems ◽  
Enterprise Performance ◽  
Business World ◽  
Content Type ◽  
Performance Management Systems ◽  
Academic Texts ◽  
Current Trends ◽  
Synergy Effects

Purpose This paper aims to investigate current trends in selected management systems and analyses their mutual synergy effects to remaster contemporary enterprise performance management systems in the business sphere. Design/methodology/approach This research involves assembling key academic texts and other literature on the subject of changes in management systems worldwide and their influence on remastering contemporary enterprise performance management systems. The literature is reviewed using a systematic approach. More than 3,000 papers and studies are identified and content analysed. Findings The main trends and emerging themes of management practices in the current business world and their synergy effects are identified, reviewed and classified. Originality/value The field of performance management systems and their remastering based on individual corporate needs is an emergent area of study. This paper is relevant to academics, as well as the corporate world, because it introduces summarized results from an extensive number of published studies on the topic of trends in current management systems, their mutual synergy effects and their influence on performance management systems.

Evaluating implementation of strategic performance management practices in universities in Uganda

2015 ◽  
Vol 19 (2) ◽  
pp. 42-56 ◽  
Author(s):  
Bernadette Nambi Karuhanga
Keyword(s):  
Performance Management ◽  
Public Universities ◽  
Management Practices ◽  
Principal Component ◽  
Individual Performance ◽  
Evaluation Tool ◽  
Content Type ◽  
Strategic Performance ◽  
Mission Strategy ◽  
Private And Public

Purpose – The purpose of this study was to propose a tool for evaluating implementation of strategic performance management (PM) by examining the strategic PM practices in public universities in Uganda. Design/methodology/approach – Literature was reviewed and the general features of PM practices were identified. These were captured in a survey instrument which was later administered to staff in selected universities in Uganda to determine the extent of strategic PM implementation. Principal component analysis was conducted to cluster similar variables together with an aim of identifying the focal areas for determining the extent of strategic PM practices implementation in a university. Findings – Strategic PM in public universities in Uganda exists and is aimed at achieving quality. Despite its existence, respondents generally disagreed that: an effective PM system exists in their respective universities, PM training is continuously provided to managers and staff and a formal process exists for units to provide feedback on the attainment of goals. Findings further revealed that implementation of PM practices in universities could be evaluated based on five foci, namely, alignment of organisational vision, mission, strategy and individual performance goals; staff involvement in PM implementation at unit level; existence of an improvement plan; existence of a performance evaluation plan; and staff awareness and understanding of PM. Research limitations/implications – The study focussed on only public universities in Uganda; hence, another study could be conducted considering all universities, both private and public. The list of items from literature may not be exhaustive hence additional PM practices that were not included in this tool should be identified from literature to enrich the evaluation tool. Practical implications – This study allowed the development of an empirical list of PM practices which could be used by universities and policy makers to evaluate implementation of strategic PM. Hence, the five foci could be adopted as an evaluation tool for universities with regard to strategic PM implementation. Using these five foci, university managers can identify the grey areas in their PM systems to which management attention could be focussed for improvement. Originality/value – Despite the increasing desire for effective PM implementation in most organisations the world over, there exists no empirical evidence of institutional PM implementation in public universities in Uganda. Besides, to the best of my knowledge, no study has been previously conducted with the aim of developing a tool for evaluating strategic (PM implementation in universities in Uganda.

Management fee base: financing and investment decisions

2015 ◽  
Vol 8 (1) ◽  
pp. 46-65
Author(s):  
Pierpaolo Pattitoni ◽  
Barbara Petracci ◽  
Valerio Potì ◽  
Massimo Spisni
Keyword(s):  
Real Estate ◽  
Mutual Fund ◽  
Negative Impact ◽  
Balance Sheet ◽  
Market Value ◽  
Relative Effect ◽  
Content Type ◽  
Management Fees ◽  
Performance Fees ◽  
Asset Value

Purpose – The aim of this paper is to focus on different compensation structures for real estate mutual fund Management Companies and assess whether management fees paid on either Net Asset Value (NAV) or Gross Asset Value (GAV) generate distorted incentives relative to those generated by performance fees paid on the market value of the fund. Design/methodology/approach – To test whether management fees induce Management Companies to opportunistic behaviors, the relative effect of NAV- and GAV-based fees is compared over time using a plethora of econometric models. Findings – It is found that Management Companies that are paid GAV-based fees start with higher leverage to expand assets under management, then, subsequently, drive leverage and over-investment down as fund maturity approaches to minimize the negative impact of negative NPV investments on the final market value of the fund and therefore on performance fees paid at maturity. Research limitations/implications – A dataset of Italian listed real estate mutual funds is used. While the Italian market can be considered an ideal setting for an empirical analysis, studies on other countries would make it possible to test implications of the model that are only weakly identified in our setting. Practical implications – Results could be important when designing managerial contracts. Originality/value – It is shown that Management Companies actively manage the size of their balance sheet to maximize fees, and that NAV-based fees produce effects similar to market-based fees in terms of managerial incentives.

Performance management practices, employee attitudes and managed performance

2010 ◽  
Vol 24 (6) ◽  
pp. 507-530 ◽  
Author(s):  
James Kagaari ◽  
John C. Munene ◽  
Joseph Mpeera Ntayi
Keyword(s):  
Performance Management ◽  
Public Universities ◽  
Management Practices ◽  
Cost Effective ◽  
Cross Sectional Study ◽  
Employee Attitudes ◽  
University Education ◽  
Cross Sectional ◽  
Content Type ◽  
Study Approach

PurposeThe purpose of this paper is to establish the relationship between performance management practices, employee attitudes and managed performance.Design/methodology/approachUsing a disproportionate stratified purposive approach, a sample of 900 employees was drawn from four public universities in Uganda.FindingsThe paper reveals that performance management practices and employee attitudes are crucial for achievement of managed performance in public universities.Research limitations/implicationsThis was a cross‐sectional study that inherently has common method biases. Such biases could be minimised with replication of the study using a longitudinal study approach that would also unearth all salient issues that could have remained untouched.Practical implicationsThe paper emphasises the need for public universities to institutionalise result‐oriented relationships and adapt in the external hyper changing environment.Originality/valueThe paper calls for a new approach to managing employees in public universities with increasing demand for university education and stakeholder interests in delivery of cost‐effective quality services.

scholarly journals Assessing the fragmentation of hybrids' performance management systems

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tomi Rajala ◽  
Harri Laihonen ◽  
Petra Kokko
Keyword(s):  
Performance Management ◽  
Management Practices ◽  
Management Systems ◽  
Performance Goals ◽  
Content Type ◽  
Performance Management Systems ◽  
Future Studies ◽  
Low Level ◽  
Service Production ◽  
Survey Interviews

PurposeFragmentation can inhibit joint goals and performance measures. Therefore, the purpose of this study is to investigate the level of fragmentation between public, private and third sectors in a hybrid organization's performance management systems and the effects of this fragmentation to propose hypotheses and new research methods for future studies.Design/methodology/approachThe inductive research design was based on a mixed method approach. As empirical data, a survey, interviews and documents were used in this case study examining a hybrid organization called Welfare Alliance.FindingsThe results showed low-level fragmentation in the performance management system of the hybrid. Although the level of fragmentation was low-level, it affected the hybrid's ability to implement joint performance goals and measures. Performance management practices suffered as a consequence.Originality/valueAs a theoretical contribution to research addressing performance management in hybrids, the study proposes new concepts and theoretical hypotheses concerning fragmented performance management systems in hybrids. These theoretical hypotheses propose how performance goals and measures can become fragmented because they isolate service production units and activities from each other. The proposed hypotheses for future studies also attempt to provide explanations for how fragmentation can spread from one management function to another (i.e. from goal setting to performance measurement).

Sign in / Sign up

Export Citation Format

Share Document