Strategic business decision making: the use and relevance of marketing metrics and knowledge management

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Boban Melović ◽  
Marina Dabić ◽  
Milica Vukčević ◽  
Dragana Ćirović ◽  
Tamara Backović
Keyword(s):  
Decision Making ◽  
Knowledge Management ◽  
Strategic Decision ◽  
Market Position ◽  
Marketing Metrics ◽  
Business Decisions ◽  
Business Decision ◽  
Content Type ◽  
Financial Metrics ◽  
A Company

Purpose The purpose of this paper is to investigate the perception of marketing managers in a transition country Montenegro with regards to marketing metrics. The paper examines the degree in which managers are familiar with the way marketing metrics are applied and how important they are in the process of making business decisions in a company operating in a Montenegro. Design/methodology/approach Data was collected during 2020 through a survey of 171 randomly selected companies and was analyzed using structural equation model and the statistical method of analysis of variance tests. Findings The obtained results show that managers are quite familiar with financial and non-financial metrics. Both groups are applied to a significant degree, as managers believe that these indicators provide valuable information needed during the decision-making process. Still, more emphasis is placed on the knowledge, implementation and importance of non-financial metrics compared to financial metrics. This is probably due to the specificities of the economic activities of the companies operating in Montenegro, as most of them are service companies, which is why non-financial metrics (such as consumer metrics) are the most important indicators when it comes to ascertaining the market position of the company. Additionally, in recent years the primary focus in Montenegro, as country that is still in the process of transformation from planned economy to a free-market form, has been placed on strengthening of competitiveness and advancing the market orientation of companies. This led to an increase in the importance that managers in transition countries attach to non-financial metrics. Research limitations/implications The fact that the survey only covers companies from one country is its limitation. Practical implications The obtained results will have a significant empirical contribution, which is reflected in providing guidelines for managers on how to improve the system of measuring and controlling marketing performance, all that to strengthen the competitiveness of the company, and can serve managers of hierarchy levels in a company as guidelines for making decisions on the implementation of marketing strategy and marketing metrics, to improve business performance, multi-context customer interaction, cost-saving and strengthen competitiveness. Social implications Obtaining necessary knowledge management and implementing marketing metrics are important conditions for consideration when it comes to the continuous monitoring and improvement of business results, increasing competitiveness and advancing the market position of the company. Originality/value The originality stems from the analysis of the interconnection that exists between marketing metrics and strategic decision-making, which is expected to be positively reflected in the development of society, i.e. strengthening the competitiveness of companies based on knowledge management achieved through the assessment of the degree of knowledge, the implementation and the significance of each of the metrics covered within this research in business decision-making processes. The paper provides insights into the extent to which managers understand the meaning of these indicators and are able to combine different marketing metrics to obtain more complex indicators, serving as necessary inputs when making strategic business decisions.

scholarly journals Women on corporate boards and allocation of capital raised through IPOs

2019 ◽  
Vol 57 (3) ◽  
pp. 547-568 ◽  
Author(s):  
Bazeet Olayemi Badru ◽  
Nurwati A. Ahmad-Zaluki ◽  
Wan Nordin Wan-Hussin
Keyword(s):  
Decision Making ◽  
Governance Structure ◽  
Capital Allocation ◽  
Strategic Decision ◽  
Corporate Boards ◽  
Content Type ◽  
Investment Opportunities ◽  
Women On Corporate Boards ◽  
The Impact ◽  
A Company

Purpose The purpose of this paper is to examine whether the differences in men and women, such as risk aversion in decision making, can influence the amount of capital that the board of directors can allocate for investment opportunities. Design/methodology/approach This study sampled 212 IPOs over the period of 2005–2015 and employed the OLS and the quantile regression techniques to examine the impact of female directors on capital allocation. Findings The results show that women on corporate boards have a positive influence on the amount of capital an IPO company can allocate for investment opportunities. These findings suggest that the investment strategies of women in an emerging financial market, like Malaysia, may differ from women in other financial markets. Practical implications The presence of women on corporate boards plays an important role in board involvement in a company’s strategic decision at the time of the IPO. Therefore, regulators and IPO issuers should pay close attention to the corporate governance structure of a company at the time of an IPO. In addition, investors and other stakeholders of a company may consider women on corporate boards as an important factor in financing and investment decisions. Originality/value Despite several studies that have examined the influence of women on corporate boards on corporate outcomes, globally, the presence of women on corporate boards and their influence on corporate decision-making related to allocation of capital to investment opportunities, have not been fully explored in the IPO literature.

Corporate brand building at SRF: challenge of selecting the brand consultant

2011 ◽  
Vol 1 (4) ◽  
pp. 1-27
Author(s):  
Jaydeep Mukherjee ◽  
Mukund Trivedy
Keyword(s):  
Decision Making ◽  
Subject Area ◽  
Management Program ◽  
Advertising Agency ◽  
Corporate Brand ◽  
Business Decision ◽  
Content Type ◽  
Brand Building ◽  
Postgraduate Level ◽  
A Company

TitleCorporate brand building at SRF: challenge of selecting the brand consultant.Subject areaThe case is about the selecting the agency to take up the brand building challenge of SRF Limited, a well established, large business in India having diverse lines of “industrial products”. The business decision problem of SRF stemmed from the fact that the corporate leadership team, which had to take a decision on the topic had considerable reservation about the appropriateness of each of short‐listed agencies for the job at hand. There were also differences of opinion on what would be the criteria for selecting the brand consultant. The Managing Director had to ensure that the team arrived at a consensus, rather than being foisted with a decision from top.Study level/applicabilityThis case can be taken up in executive education programs as well as the basic marketing management program at the postgraduate level or in a specialist advertising courses. The case can be taught in the core marketing course at the postgraduate level while discussing the selection on advertising agency.Case overviewThe decision‐making focus of the case is about selecting an advertising agency among a set of three, which was most suited to help SRF achieve the repositioning, branding and the awareness creation challenge. The agencies, however, were mostly experienced in building brands for consumer product which was distinct from industrial intermediaries company like SRF. As an organization, SRF had no experience of dealing with an advertising agency, thus the selection was quite a challenge. It brings to focus the decision‐making dilemma faced by a large number of companies in emerging markets which are making the transition to brand building.Expected learning outcomesThe following insights could be elucidated by the case: Help the students understand the corporate branding concept as distinct from product branding. Decision‐making dilemmas associated with corporate brand building for a company with long legacy of product branding.Criteria for evaluating the proposals by advertising agency from the perspective of a client organization.Supplementary materialsTeaching notes.

An image theory of strategic decision-making in family businesses

2019 ◽  
Vol 9 (4) ◽  
pp. 451-467
Author(s):  
Christopher Penney ◽  
James Vardaman ◽  
Laura Marler ◽  
Victoria Antin-Yates
Keyword(s):  
Decision Making ◽  
Family Firms ◽  
Family Firm ◽  
Family Businesses ◽  
Strategic Decision ◽  
Image Theory ◽  
Strategic Decision Making ◽  
Screening Criteria ◽  
Business Decision ◽  
Content Type

Purpose Research suggests family businesses often pursue risky or aggressive strategies despite the desire to preserve socioemotional wealth (SEW), which is thought to lead to conservativism in family firm strategic decision making. The purpose of this paper is to resolve this apparent contradiction by presenting a model that describes the screening criteria used by family business decision-makers when evaluating strategic opportunities. Design/methodology/approach The conceptual model relies on insights derived from image theory to resolve apparent contradictions inherent in the SEW perspective’s implications for family firms’ risky strategic decisions. Findings The proposed model suggests new strategic opportunities in family firms are evaluated through an unconscious, schema-driven decision process and that the preservation of SEW does not preclude risky strategic directions, but instead serves as an unconscious screening criteria for strategic opportunities. Originality/value This paper contributes to the literature by expanding the understanding of family-firm strategic decision-making to include considerations of the decision’s fit with the family’s principles, goals and strategic plan rather than solely to overall risk to SEW. Thus, the paper presents a detailed model of family-firm strategic decision-making that relies on insights from image theory.

Integrating knowledge management with intellectual capital to drive strategy: a focus on Italian SMEs

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Daniele Giampaoli ◽  
Francesca Sgrò ◽  
Massimo Ciambotti ◽  
Nick Bontis
Keyword(s):  
Decision Making ◽  
Knowledge Management ◽  
Empirical Evidence ◽  
Intellectual Capital ◽  
Partial Least Square ◽  
Strategic Decision ◽  
Equation Modeling ◽  
Direct Impact ◽  
Content Type ◽  
Positive Direct

Purpose This study aims to provide empirical evidence on the linkage between knowledge management (KM), intellectual capital (IC), planning effectiveness (PE) and innovation performance in Italian small and medium-sized enterprises (SMEs). Design/methodology/approach Survey data from 172 Italian SMEs was collected through an online questionnaire and analyzed using structural equation modeling (partial least square). Findings Results show that KM practices have a positive direct impact on each IC component which influences PE. Finally, structural capital and PE have a positive direct impact a firm’s ability to innovate. Research limitations/implications For researchers, this paper fills an important gap in the academic literature by conceptualizing and empirically testing the link between IC and PE. The main practical implication of this study is that developing intangible resources is of particular importance for strategic decision-making in SMEs. The focus on Italian SMEs limits the generalizability of the results. Originality/value This study provides empirical evidence on how KM and IC interact and mutually drive PE. Second, results shed light on the importance of IC to enhance a firm’s ability to reach its goals. Finally, the focus on SMEs enriches the extant literature in the field confirming the vital role of KM and IC in managerial decision-making.

Quantitative tool for market sector strategic analysis

2018 ◽  
Vol 25 (6) ◽  
pp. 1706-1728 ◽  
Author(s):  
Rogério dos Santos Morais ◽  
Carlos Roberto Camello Lima
Keyword(s):  
Decision Making ◽  
Business Strategy ◽  
Telecommunications Industry ◽  
Strategic Decision ◽  
Strategic Decision Making ◽  
Content Type ◽  
Strategic Factor ◽  
Accurate Quantitative Analysis ◽  
Strategic Factors ◽  
A Company

Purpose A competitive business strategy with a greater chance of success depends on an accurate quantitative analysis of business strategic factors prevailing in a company. The purpose of this paper is to conduct the latter to determine the level of competitiveness in a sector. Design/methodology/approach This study develops a tool based on literature classics and tested in the telecommunications industry to determine market segment competitiveness, market attractiveness and the relative ability of companies to generate profits. Findings The proposed tool allows managers to quantify each strategic factor and, thus, identify positive factors leading to a competitive advantage and weaknesses leading to vulnerability, which enables an improvement in daily strategic decision making. Practical implications Implementing the tool can enable managers to both quantify each strategic factor and improve strategic decision making. Originality/value This methodology employed here is novel. As such, this study provides new insights into how to compete in the telecommunications industry and discusses useful implications for academia, new entrepreneurs, buyers and suppliers.

scholarly journals Exploring the level of utilizing management reports in decision-making in Croatian companies

2021 ◽  
Vol 26 (2) ◽  
pp. 63-78
Author(s):  
Mirjana Hladika ◽  
Berislav Žmuk
Keyword(s):  
Decision Making ◽  
Positive Impact ◽  
Management Accounting ◽  
Accounting Information ◽  
Decision Making Process ◽  
Business Decisions ◽  
Accounting Information System ◽  
Business Decision ◽  
A Company ◽  
Important Basis

Effective business decisions have a positive impact on the overall business of a company. Each business decision should be based on relevant, high-quality, and reliable information prepared by a management accountant in accordance with managers' specific requirements. In order to be support the efficient decision-making process, the management accounting information should be appropriate for a particular business decision, and it should reflect the role, responsibility, and value it has for a manager that participates in the decision-making. This paper aims to investigate whether the management accounting information system is developed in Croatian companies. In order to collect data for the analysis, a web survey was conducted on a representative sample of Croatian companies. Overall, 225 companies from the real sector participated in the survey. The results have shown that managers consider management reports an important basis in decision-making. Furthermore, the findings of this study have shown that managers in large companies use management reports to a greater extent in decision-making than managers in micro, small, and medium-sized companies do.

Understanding how the contextual variables influence political behaviour in strategic decision-making

2014 ◽  
Vol 7 (3) ◽  
pp. 226-250 ◽  
Author(s):  
Said Elbanna ◽  
Ioannis C. Thanos ◽  
Vassilis M. Papadakis
Keyword(s):  
Decision Making ◽  
Strategic Decision ◽  
Strategic Decision Making ◽  
Strategic Decisions ◽  
Empirical Examination ◽  
Content Type ◽  
Political Behaviour ◽  
Practitioner Education ◽  
The Impact ◽  
Practical Implications

Purpose – The purpose of this paper is to enhance the knowledge of the antecedents of political behaviour. Whereas political behaviour in strategic decision-making (SDM) has received sustained interest in the literature, empirical examination of its antecedents has been meagre. Design/methodology/approach – The authors conducted a constructive replication to examine the impact of three layers of context, namely, decision, firm and environment, on political behaviour. In Study 1, Greece, we gathered data on 143 strategic decisions, while in Study 2, Egypt, we collected data on 169 strategic decisions. Findings – The evidence suggests that both decision-specific and firm factors act as antecedents to political behaviour, while environmental factors do not. Practical implications – The findings support enhanced practitioner education regarding political behaviour and provide practitioners with a place from which to start by identifying the factors which might influence the occurrence of political behaviour in SDM. Originality/value – The paper fills important gaps in the existing research on the influence of context on political behaviour and delineates interesting areas for further research.

Integration between knowledge management and business process management and its impact on the decision making process in the construction sector: a case study of Jordan

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sami Wasef Abuezhayeh ◽  
Les Ruddock ◽  
Issa Shehabat
Keyword(s):  
Decision Making ◽  
Knowledge Management ◽  
Business Process Management ◽  
Process Management ◽  
Business Processes ◽  
Decision Makers ◽  
Decision Making Process ◽  
Construction Sector ◽  
Content Type

Purpose The purpose of this paper is to investigate and explain how organizations in the construction sector can enhance their decision-making process (DMP) by practising knowledge management (KM) and business process management (BPM) activities. A conceptual framework is developed that recognises the elements that impact DMP in terms of KM and BPM. The development of this framework goes beyond current empirical work on KM in addition to BPM as it investigates a wider variety of variables that impact DMP. Design/methodology/approach A case study is undertaken in the context of the construction industry in Jordan. A theoretical framework is developed and assessment of the proposed framework was undertaken through a questionnaire survey of decision-makers in the construction sector and expert interviews. Findings The outcomes of this research provide several contributions to aid decision-makers in construction organizations. Growth in the usage of KM and BPM, in addition to the integration between them, can provide employees with task-related knowledge in the organization’s operative business processes, improve process performance, promote core competence and maximise and optimise business performance. Originality/value Through the production of a framework, this study provides a tool to enable improved decision-making. The framework generates a strong operational as well as theoretical approach to the organizational utilization of knowledge and business processes.

scholarly journals Executive decision-making in fashion retail: a phenomenological exploration of resources and strategies

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Danielle Sponder Testa ◽  
Elena E. Karpova
Keyword(s):  
Decision Making ◽  
Academic Research ◽  
Phenomenological Approach ◽  
Study Data ◽  
Decision Making Process ◽  
Business Decision ◽  
Content Type ◽  
External Data ◽  
Executive Decision Making ◽  
Fashion Retail

PurposeDecision-makers must be well-informed to successfully impact the future of the business. The purpose of this study was to explore experiences of US fashion retail executives when making business decisions to understand what resources and strategies are utilized within the decision-making process. Additionally, the role of academic research within executive decision-making process was explored.Design/methodology/approachThis study utilized a phenomenological approach to understand the experiences of fashion retail executives when engaging in business decision-making. Fifteen US fashion retail executives participated in the study. Data were collected through in-depth individual interviews and thematically coded to gain a holistic perspective of the decision-making process within the fashion retail industry.FindingsAs the result of the data analysis and interpretation, three topical areas emerged:: “Incredible Amounts of Information,” “Industry Specific Academic Research” and “Have a Clear Road Map.” The findings suggested that while the facts gleaned from internal and external data are of great importance to fashion professionals, insights gathered from social media are equally influential within the decision-making process. The authors identified five major strategies utilized consistently by fashion retail executives regardless of the type of business they represented: collaboration, adaptability, speed, gut instinct and creativity.Research limitations/implicationsThe results are important to fashion retail companies for improving internal decision-making processes. The identified resources and strategies of the decision-making process can be incorporated into fashion program curricula and considered as learning outcomes when preparing future industry professionals.Originality/valueLimited studies have explored the decision-making process specific to the fashion retail environment, an uncertain and ever-changing industry. Further, the study shed light on the opportunity for academic research use in fashion retail decision-making and contributes to the literature by developing a fashion retail decision-making model.

Selection of lean manufacturing systems using the PROMETHEE

2008 ◽  
Vol 3 (1) ◽  
pp. 40-70 ◽  
Author(s):  
G. Anand ◽  
Rambabu Kodali
Keyword(s):  
Decision Making ◽  
Lean Manufacturing ◽  
Manufacturing Systems ◽  
Strategic Decision ◽  
Computer Integrated Manufacturing ◽  
Preference Ranking ◽  
Manufacturing Strategy ◽  
Manufacturing Companies ◽  
Content Type

PurposeIn recent years, many manufacturing companies are attempting to implement lean manufacturing systems (LMS) as an effective manufacturing strategy to survive in a highly competitive market. Such a process of selecting a suitable manufacturing system is highly complex and strategic in nature. The paper aims to how companies make a strategic decision of selecting LMS as part of their manufacturing strategy, and on what basis such strategic decisions are made by the managers.Design/methodology/approachA case study of a small‐ and medium‐sized enterprise is presented, in which the managers are contemplating on implementing either computer integrated manufacturing systems (CIMS) or LMS. To supplement the decision‐making process, a multi‐criteria decision making (MCDM) model, namely, the preference ranking organisation method for enrichment evaluations (PROMETHEE) is used to analyse how it will impact the stakeholders of the organisation, and the benefits gained.FindingsAn extensive analysis of PROMETHEE model revealed that LMS was the best for the given circumstances of the case.Research limitations/implicationsThe same problem can be extended by incorporating the constraints (such as financial, technical, social) of the organisation by utilising an extended version of PROMETHEE called the PROMETHEE V. Since, a single case study approach has been utilised, the findings cannot be generalized for any other industry.Practical limitations/implicationsThe methodology of PROMETHEE and its algorithm has been demonstrated in a detailed way and it is believed that it will be useful for managers to apply such MCDM tools to supplement their decision‐making efforts.Originality/valueAccording to the authors’ knowledge there is no paper in the literature, which discusses the application of PROMETHEE in making a strategic decision of implementing LMS as a part of an organisation's manufacturing strategy.

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