Performance measurement, intellectual capital and financial sustainability

2017 ◽  
Vol 18 (3) ◽  
pp. 643-666 ◽  
Author(s):  
Ricardo Vinícius Dias Jordão ◽  
Vander Ribeiro de Almeida
Keyword(s):  
Performance Measurement ◽  
Financial Performance ◽  
Intellectual Capital ◽  
Statistical Tests ◽  
Secondary Data ◽  
Theory And Practice ◽  
Financial Sustainability ◽  
Content Type

Purpose One of the main contemporary challenges in organisations is finding ways of measuring their intellectual capital (IC), and its effects on competitiveness and financial sustainability. The purpose of this paper is to analyse the influence of IC on the long-term financial performance of Brazilian companies. Design/methodology/approach Considering that previous studies have not been able to explain the role of IC in financial sustainability (measured by long-term corporate performance), this paper attempts to fill this gap by means of a quantitative, descriptive and applied study. Based on the theories of knowledge management, accounting and finance, the authors have undertaken a study of the companies listed on the BM&FBovespa, based on secondary data, using a multi-industrial cut, over the period 2005 to 2014, using descriptive and multivariate statistics. Findings The analysis supports three major conclusions: IC influences positively the profitability and corporate return of these companies; the more intangible-intensive public companies listed on the BM&FBovespa demonstrate higher financial sustainability than the others, in terms of profitability and corporate return, either individually, globally or by industry; and that IC helps increase financial performance, systematically, over time. Research limitations/implications Contributions of the following types were sought: theoretical (increasing an understanding of the effects of IC on business performance from a long-term perspective – an understanding that is still only incipient in the management literature); and empirical (increasing an understanding of the role of IC in the differentiation of companies, in organisational profitability and on the return on applications of resources). Practical implications The original proposal for the measurement of financial performance presented in this paper proved to be valid and consistent, complementing what is known about the subject under examination, contributing to the improvement of management theory and practice and providing a competitive benchmarking process. This can make it possible for company analysts or managers to evaluate their company in relation to its industry or its market as a whole by means of such indicators, individually or combined with other quantitative or qualitative metrics. Originality/value The results of this research reduce a gap in the management and accounting literature, as they shed light on the performance measurement process. In addition to the range and depth of the statistical tests carried out, attention should be drawn to the originality of the proposal presented in this paper. This facilitates the measurement of the effects of IC on financial performance through the selection and application of specific indicators for the assessment of the contribution of IC to organisational results.

Healthcare sustainability and the role of intellectual capital

2017 ◽  
Vol 18 (3) ◽  
pp. 544-563 ◽  
Author(s):  
Caterina Cavicchi
Keyword(s):  
Social Capital ◽  
Focus Groups ◽  
Performance Measurement ◽  
Intellectual Capital ◽  
Healthcare Professionals ◽  
Theory Development ◽  
Healthcare Sector ◽  
Healthcare Organizations ◽  
Content Type

Purpose The purpose of this paper is to investigate the role of intellectual capital (IC) in promoting the sustainable development (SD) program of the Emilia-Romagna Health Service. The contributions of the following assets were investigated: leadership and competences, culture, performance measurement and incentives systems, social capital and technologies. Design/methodology/approach The case study was conducted following a hierarchical approach: perceptions of the regional directorate of public and social health, the general directors and healthcare professionals of the regional health system (the setting) were analyzed through interviews, focus groups and documentation in order to investigate: the emerging definition of SD within the setting; the role of IC, if any, in the achievement of the regional SD goals. Findings SD culture did not expand at the operative level because of the lack of involvement of healthcare professionals in a permanent dialogue for sustainability. Sustainability projects were not systematic which restricted the development of staff awareness of sustainability issues. Social capital enabled environmental projects and medical projects that increased patients’ involvement in disease management. Technology could help the shift toward sustainability, but it requires consideration of tangible and intangible costs for its successful adoption. SD performance measurement and incentives were in their infancy and cost accounting continues to dominate the healthcare sustainability debate. Research limitations/implications Despite the low number of healthcare professionals involved in the focus groups, the paper represents one of the first attempts to frame their perceptions on SD implementation in healthcare. Practical implications Regional institutions should consider new ways of enacting SD which should be more inclusive of healthcare professionals. The establishment of a permanent interdisciplinary dialogue on sustainability would develop human, social and structural capital for sustainability. Healthcare organizations should monitor the environmental and social effects of their operations to enact their primary mission: the promotion of health. Originality/value The paper contributes to theory development related to the role of IC for SD in the public sector context and, in particular, in the healthcare sector where evidence is currently limited.

SMEs’ resilience from continuous improvement lenses

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Saad Zighan ◽  
Salomée Ruel
Keyword(s):  
Continuous Improvement ◽  
Business Environment ◽  
Theory And Practice ◽  
Organizational Resilience ◽  
Short Term ◽  
Content Type ◽  
Cyclical Process ◽  
Business Philosophy

Purpose The business environment is increasingly volatile, complex, uncertain and ambiguous. Today, COVID-19 represents a super-disruption situation. This paper aims to explore small and medium-sized enterprises’ (SMEs’) resilience from continuous improvement lenses. It explores the role of continuous improvement in building organizational resilience across SMEs. Design/methodology/approach A Delphi methodology has been adopted to capture evidence and opinions from 38 experts from several Jordan-based SMEs through three-online rounds. Findings The study finds that continuous improvement enhances SMEs’ resilience in the short term and long term. It can translate the concept of resilience into tangible working constructs for SMEs in visualizing and making decisions about their risks, adapting, absorbing changes and prevailing over time. The role of continuous improvement in building organizational resilience is fourfold; continuous improvement is a cyclical process; it has a vital cultural aspect and can be considered a business philosophy. It also emphasizes a holistic change approach based on small but constant changes. However, SMEs’ leaders must consider several issues for effective continuous improvement, including a continuous improvement culture and a results-focused approach. Originality/value Organizational resilience has been studied across various contexts; however, there are still unanswered questions for SMEs’ resilience. This study contributes to theory and practice by examining the role of continuous improvement in SMEs’ resilience.

Knowledge sharing, intellectual capital and firm performance

2014 ◽  
Vol 52 (2) ◽  
pp. 230-258 ◽  
Author(s):  
Zhining Wang ◽  
Nianxin Wang ◽  
Huigang Liang
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Intellectual Capital ◽  
Operational Performance ◽  
Relational Capital ◽  
Research Model ◽  
Content Type ◽  
Technology Firms ◽  
High Technology Firms

Purpose – The aim of this paper is to investigate the impact of knowledge sharing (KS) on firm performance and the mediating role of intellectual capital (IC). Design/methodology/approach – A research model was developed based on prior KS and IC studies. A survey was administered to a sample of high technology firms in China and 228 usable responses were collected. Structural equation modeling (SEM) was employed to test the research model. Findings – Tacit KS significantly was found to contribute to all three components of IC, namely human, structural and relational capital, while explicit KS only has a significant influence on human and structural capital. Human, structural and relational capital, enhance both operational and financial performance of firms. The effect of KS on firm performance is mediated by IC. Explicit KS has a greater effect on financial performance than operational performance, whereas tacit KS has a greater impact on operational performance than financial performance. Research limitations/implications – The sample of high technology firms in China might limit the generalization of the findings. Nonetheless, this study takes its lead from and extends prior research, thus providing a deepened understanding of the role of KS in organizational settings. Practical implications – The paper suggests that managers can enhance firm performance by enhancing their KS and IC. Managers can develop corresponding strategies based on the findings to achieve their specific performance goals. Originality/value – This is one of the first papers to examine how KS contributes to firm performance through the mediation of IC. It will add significant value for organizations trying to enhance their performance though KS practices.

Exploring the mediating role of intellectual capital and competitive advantage on the relation between CSR and financial performance in SMEs

2017 ◽  
Vol 13 (1) ◽  
pp. 1-23 ◽  
Author(s):  
Priyanka Jain ◽  
Vishal Vyas ◽  
Ankur Roy
Keyword(s):  
Financial Performance ◽  
Competitive Advantage ◽  
Intellectual Capital ◽  
Geographical Area ◽  
Mediating Effect ◽  
Equation Modeling ◽  
Content Type ◽  
Mediating Role ◽  
The Relationship

Purpose The relationship between corporate social responsibility (CSR) and financial performance (FP) is a much-researched topic in academic arena. Recent studies disclosed that intellectual capital (IC) significantly impacts the success and survival of organizations. Moreover, theoretical assertions confirm that competitive advantage (CA) mediates the association between IC and FP. This has opened up new dimensions for the study. Therefore, this study aims to develop a theoretical model, first, to specify these relations and, second, to explore the mediating role of IC and CA on the relation between CSR and FP in the context of small- and medium-sized enterprises (SMEs). Design/methodology/approach Hypotheses are tested through a survey conducted on 384 SMEs in Rajasthan state. A structured questionnaire having 38 variables was used, and collected data are subjected to confirmatory factor analysis. Structural equation modeling was used to validate the measurement model and to test the mediating effect. Findings The findings indicate a weak positive relation between CSR and FP. The empirical data provide supportive evidence that IC has a profound impact on CSR and FP relationship. Specifically, it was noticed that the mediating role of CA on this relationship was not as reflective as described in the literature. Research limitations/implications The limitation of this study is that it is limited to one country, more specific to one geographical area of a country; therefore, findings of the study cannot be generalized in terms of its implications to other regions and countries. Originality/value Very few empirical studies have analyzed the mediating role of IC and CA on the relationship between CSR and FP. This study is expected to enable scholars and practitioners to have a more definite and direct understanding of the implication of IC and CA in association between CSR and FP.

scholarly journals Performance measurement for the strategic management of health-care estates

2018 ◽  
Vol 16 (2) ◽  
pp. 217-232 ◽  
Author(s):  
Laura Rodríguez-Labajos ◽  
Craig Thomson ◽  
Geraldine O’Brien
Keyword(s):  
Health Care ◽  
Strategic Management ◽  
Performance Measurement ◽  
Strategic Decision ◽  
Performance Measurement System ◽  
Theory Approach ◽  
Care Providers ◽  
Content Type

Purpose The purpose of this study is to explore the role of performance measurement in current practices for strategic management of health-care estates. Design/methodology/approach The research adopts a constructivist grounded theory approach, combining different methodologies of a pan-European qualitative questionnaire, interviews with international health-care providers and a case study of National Health Services (NHS) Scotland. Here, documentation analysis, observations and in-depth interviews involving NHS stakeholders were undertaken. Findings The analysis shows evidence that measuring estate performance has limited value for individual NHS boards regarding strategic decisions related to long-term planning and investment. This was due to design issues and the prioritisation of clinical delivery, which contribute to the neglect of the estate as a consideration in long-term strategic planning. This misalignment results in a tool which is valuable for accountability but which is less helpful to NHS boards in shaping future decisions around the estate. Practical implications Responding to a gap in understanding of the application of performance measurement in the context of health-care estates, this research provides three recommendations to promote a more effective and relevant performance measurement system. These actively recognise the importance of the estate within strategic decision-making as helping to inform the long-term planning and management of the estate within the individual NHS boards. Originality/value This paper shows the current role of performance measurement for the strategic management of health-care estates and identifies issues related to its applicability and value.

The role of intellectual capital in fostering SD-Orientation and firm performance

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Helena Alves ◽  
Ignacio Cepeda-Carrion ◽  
Jaime Ortega-Gutierrez ◽  
Bo Edvardsson
Keyword(s):  
Financial Performance ◽  
Intellectual Capital ◽  
Structural Equation ◽  
Great Influence ◽  
Relational Capital ◽  
Content Type ◽  
Service Oriented ◽  
And Performance ◽  
The Relationship

PurposeThis research aims to understand the relationship among Intellectual Capital (IC), Service Dominant Orientation (SD-Orientation) and firms performance.Design/methodology/approachA model conceptualizing the relationship among the three constructs was tested through structural equation modelling on a sample of 101 firms from SABI Spanish database.FindingsThe results confirm the influence of IC, in all of its dimensions, on SD-Orientation and of SD-orientation on performance. Furthermore, the results show that SD- Orientation fully mediates the relationship between IC and performance, except for relational capital that by itself also directly influences financial performance.Research limitations/implicationsData is limited to a sample of only one country and 101 services firms. Therefore, future studies should be carried out with samples from other countries.Practical implicationsThe main results show HC, relational capital and SC are a great influence and antecedent on SD-Orientation, therefore, as an implication, firms need to take care of the several components (human, structural and social) of IC in order to become more service oriented, something that will allow them to achieve a better performance.Originality/valueUntil know there was no other study testing the influence of IC on SD-Orientation, therefore this study contributes to understand SD-orientation and the necessary resources to operationalize it, including the links to financial performance.

scholarly journals The Effect of Intellectual Capital and Islamic Corporate Governance on Islamic Social Reporting Disclosure with Financial Performance Mediation

The Winners ◽  
2019 ◽  
Vol 20 (2) ◽  
pp. 95
Author(s):  
Ichsan Setiyo Budi ◽  
Rahmawati Prof Rahmawati Prof
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Intellectual Capital ◽  
Secondary Data ◽  
Financial Statements ◽  
Social Reporting ◽  
Islamic Banking ◽  
Annual Reporting ◽  
Report Data

This research aimed to examine the indirect effect of Islamic Corporate Governance (ICG) disclosure and Intellectual Capital (IC) on Islamic Social Reporting (ISR) disclosure with financial performance as a mediating variable in Islamic Banking in Indonesia. It used secondary data with annual report data sources and financial statements on Islamic banking in Indonesia. They were testing this research using regression analysis with data for the annual reporting period of 2011 through 2014. The result finds that ROE mediates the effect of ICG on ISR disclosure. This shows that good management of Islamic banks will produce high financial performance so that they are able to carry out their social roles well too. The contribution of this research is to develop a new model of the role of financial performance mediating the effect of ICG disclosure on ISR so that it is beneficial for the development of science.

scholarly journals Reconnecting with place through events

2017 ◽  
Vol 8 (1) ◽  
pp. 66-83 ◽  
Author(s):  
Alexandra Coghlan ◽  
Bev Sparks ◽  
Wei Liu ◽  
Mike Winlaw
Keyword(s):  
Economic Impact ◽  
Collaborative Research ◽  
Research Collaboration ◽  
Academic Research ◽  
Secondary Data ◽  
Research Impact ◽  
Research Process ◽  
Theory And Practice ◽  
Content Type

Purpose Whilst academic research can capture an existing sense of place, the act of placemaking through strategies such as events depends upon the attitudes and actions of precinct managers and event organisations. The purpose of this paper is to investigate the collaborative research process between researchers and a precinct manager that highlighted an event’s ability to contribute to placemaking within that precinct. Design/methodology/approach Using the results of this event experience study, informal interviews with the SPA research partners, secondary data and a longitudinal, reflective account of the research collaboration, the research process itself was investigated to see how it assisted in the (re)design of the event within the precinct manager’s placemaking strategy to encourage a family-friendly, beach-centred culture within the precinct. Findings It is proposed that the research results combined with a collaborative research process itself facilitated a shift from the business imperative on the event’s economic performance indicators to a broader discussion of the event’s role in shaping local’s (and visitor’s) perceptions of place, and allowed a broader discussion of the role of events in driving a “liveability” and/or placemaking agenda, complementing the economic impact agenda, for the precinct manager. Practical implications The paper suggests how and why it is important for academics to work collaboratively with precinct managers to translate the concept of placemaking into the actual design of events within a place. To do so requires the researchers to bridge the gap between theory and practice. For the concept to be translated into action, greater attention was drawn to the placemaking role of events, positioning it along economic impact measures as a valuable outcome of events. Originality/value Few co-authored studies, representing both researchers and practitioners exist within the events sector, and this study contributes towards understanding process of research impact, by considering the forces capable of delivering a placemaking agenda through a precinct’s event portfolio.

Education for practice

2008 ◽  
Vol 20 (6) ◽  
pp. 529-532 ◽  
Author(s):  
Michael J. Baker
Keyword(s):  
Design Methodology ◽  
Life Time ◽  
Theory And Practice ◽  
Marketing Theory ◽  
Short Term ◽  
Marketing Practice ◽  
Content Type ◽  
Time Value

PurposeThe purpose of this short opinion piece is to focus on the role of marketing, its theory and practice, and its relevance now and in the future.Design/methodology/approachThe article analyses the present situation – which is not new – the perceived divide between marketing theory and marketing practice and, therefore, the issue of what academics should research and teach that might be of relevance to practitioners.FindingsThe article shows that if marketers – both academic and practitioner – are to meet and resolve the present challenges then they need to be customer focused, build long‐term relationships with customers, and think of their life‐time value as opposed to their short‐term profitability.Originality/valueThe article highlights issues of relevance to those involved with marketing theory and practice.

How do family entrepreneurs recognize opportunities? Three propositions

2017 ◽  
Vol 27 (2) ◽  
pp. 199-216 ◽  
Author(s):  
Silke Tegtmeier ◽  
Christina Classen
Keyword(s):  
Family Business ◽  
Family Businesses ◽  
Theory And Practice ◽  
Entrepreneurial Process ◽  
Content Type ◽  
Key Factor ◽  
Internationalization Strategies ◽  
Parallel Streams

Purpose Opportunity recognition (OR) is a key factor in the entrepreneurial process. The purpose of the paper is to elaborate on whether OR, such as related to internationalization strategies, by/in family businesses differs from OR by other companies or individuals, and if yes, to what extent. Design/methodology/approach Taking a conceptual perspective, the authors combine OR and family business knowledge to develop propositions on how family entrepreneurs recognize opportunities. Findings The authors develop three propositions about OR in entrepreneurial families. Specifically, they suggest that storytelling strengthens OR in family businesses and helps to hold on to tacit opportunities. They also address their special human capital resources. These advantages together with their long-term orientation lead to the proposition that family businesses are more likely to recognize opportunities than non-family businesses. Research limitations/implications These findings contribute to an increased understanding of the role of OR in family business research and offer an operational base for future quantitative and qualitative studies. Practical implications The insights in this paper are valuable for practitioners and policymakers as well. Practitioners will get feedback on their own family business management by reflecting on the findings reported and will be able to put the theses into a wider context. Politicians wishing to support family businesses need to understand the specifics of this entrepreneurial process to create good conditions for their development and sustainability. Originality/value This conceptual paper marries the two parallel “streams” of theory and practice of entrepreneurship and family business.

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