The relationship between budgetary evaluation, firm size and performance

2015 ◽  
Vol 34 (8) ◽  
pp. 973-986 ◽  
Author(s):  
Azzouz Elhamma

Purpose – The purpose of this paper is to present the main results of the first empirical study done in Morocco and attempts to highlight the impact of the firm size on the budgetary evaluation and its performance according to the firm size. Design/methodology/approach – Data were collected using a questionnaire sent to the Moroccan firms. A total of 62 questionnaires were correctly returned. The response rate was 15 per cent. Findings – In this research, we identified three principal styles of budgetary evaluation: “strict budgetary evaluation” adopted by 21 per cent of the sample; “moderate budgetary evaluation” adopted by 27.4 per cent of the surveyed enterprises; and “lower budgetary evaluation” adopted by 51.6 per cent of the sample. The first style is adopted especially by large firms. The firm’s performance is significantly and positively correlated with the budgetary evaluation in large enterprises. This correlation is not significant in SMEs. Practical implications – The findings of this research can help managers of companies in emerging economies in the choice of a better budgetary evaluation system. Originality/value – The outcomes of the study are relevant both to the literature on budgetary evaluation in particular and on management control in general, since they determine that the correct fit between budgetary evaluation and firm size causes a positive and significant change in the firm’s performance.

2019 ◽  
Vol 17 (3) ◽  
pp. 571-588
Author(s):  
Ahmed A. Diab ◽  
Ahmed Aboud ◽  
Arafat Hamdy

Purpose The purpose of this study is to address the impact of the related party transactions (RPTs) on firm value. The authors bring evidence from a usually ignored empirical setting: an African emerging market. Design/methodology/approach In particular, the authors focus on companies listed on the Egyptian stock market using a sample of EGX 30 from 2012 to 2017. Findings Unlike the literature, the authors find no significant relationship between RPTs and market value. Practical implications This research provides insights for policymakers and other interested parties concerning the perception of RPTs in Egypt. Originality/value The reported different findings of this study assure the intermediary role of the context and the local culture in the relationship between RPTs and firm value, in contrast to the negative view that is mostly reported in the literature.


2007 ◽  
Vol 27 (7) ◽  
pp. 735-753 ◽  
Author(s):  
Adegoke Oke ◽  
Gerard Burke ◽  
Andrew Myers

PurposeThe objective of this study is to explore the types of innovation that are predominant in UK SMEs, whether they are predominantly radical or incremental, and to investigate the impact of these innovations on performance.Design/methodology/approachA web‐based survey instrument was used to administer survey questionnaires to a sample of UK SMEs in manufacturing, engineering, electronics, information technology and telecommunications industries. The response rate was 13.8 percent. Relevant statistical analytical techniques including regression for analysis was then used.FindingsIt is found that the SMEs tend to focus more on incremental than radical innovations and that this focus is related to growth in sales turnover.Practical implicationsIt is not such a bad idea for SMEs, particularly those operating in high technological industries, to focus on incremental innovations as these are actually related positively to sales turnover growth.Originality/valueAn investigation of the types of innovation that SMEs pursue is pioneering in the field as previous studies of this type have been based on large firms. The contention that the raison d'etre of SMEs is to develop radical innovations is not supported empirically, at least for the sample of SMEs. In addition, it is found that the age of an SME is not related to its focus on either incremental or radical innovation. These are the contributions of this paper.


2017 ◽  
Vol 19 (2) ◽  
pp. 105-124 ◽  
Author(s):  
Philip T. Roundy

Purpose Social entrepreneurship represents an unconventional, but increasingly prevalent, activity in developed and emerging economies. Social entrepreneurs devise novel business models that blend business and social missions with the aim of (co-)producing value with two primary stakeholder groups, beneficiaries and customers. Although interactions between social entrepreneurs and their beneficiaries are well-studied, the relationship between social ventures and consumers has received almost no extended attention. Design/methodology/approach Using a qualitative, partially-inductive approach based on interviews with 40 social entrepreneurs, a study of how social entrepreneurs market their ventures to consumers was conducted. Findings Findings reveal the ways in which marketing is relevant for social entrepreneurs, the unique challenges and opportunities entrepreneurs face in their interactions with customers, and the tactics entrepreneurs use to understand and educate their consumers. Originality/value The study’s findings contribute to work on social entrepreneurship and the entrepreneurship and marketing interface and have practical implications for social entrepreneurs.


Kybernetes ◽  
2018 ◽  
Vol 47 (8) ◽  
pp. 1642-1663 ◽  
Author(s):  
Somayeh Fathalikhani ◽  
Ashkan Hafezalkotob ◽  
Roya Soltani

Purpose In the past two decades, the growth in the number and severity of disasters causes a rapid increase in the presence of NGOs for more effective response and efficient management of disasters. The NGOs must spend part of their resources on attracting funds to fulfill their humanitarian goals. However, limited number of donors and received contributions leads to a competition among NGOs for fundraising. Therefore, managing the relationship between these organizations and donors is very important. This paper aims to examine the competitive and coopetitive behavior of NGOs to model the interaction. Design/methodology/approach To achieve this purpose, by using game theory, two mathematical programing models are presented to examine the two inter-organizational interactions among NGOs. Findings The results show that if the NGOs work together, all the organizations, donors and affected people will benefit, and the accrued disaster will be managed more efficiently. Practical implications The expressed benefits of coopetition of NGOs can be an incentive for them to work together to manage disasters effectively. Originality/value To the best of authors’ knowledge, no research has considered the impact of the coopetition of NGOs in achieving their social mission successfully. Therefore, this paper can be seen as a valuable resource in this field.


2019 ◽  
Vol 47 (8) ◽  
pp. 793-816 ◽  
Author(s):  
Didier Louis ◽  
Cindy Lombart ◽  
Fabien Durif

Purpose The purpose of this paper is to study the impact of the main dimensions of a retailer’s corporate social responsibility (CSR) activities (philanthropic activities, respect for the environment, respect for the consumers and respect for the workers) (e.g. Maignan, 2001; Brunk, 2010a; Öberseder et al., 2014) on consumers’ loyalty towards this retailer. Mediation (through consumers’ trust in this retailer and/or retailer’s perceived brand equity) and moderation effects (depending on the groups of consumers considered) are also studied. Design/methodology/approach This research was conducted on 547 consumers, representative of the Quebec population. These consumers were asked to select a retailer of their choice that they were familiar with (notably with its CSR activities) and to complete a questionnaire with regard to that retailer. Findings This research highlights that: the impact of a retailer’s CSR activities on consumers’ loyalty differs according to the dimensions considered (philanthropic activities, respect for the environment, the consumers and the workers), is fully or partially mediates by consumers’ trust in this retailer and/or retailer’s perceived brand equity and depends on the groups of consumers considered (the very responsible consumers, the local sceptical recyclers and the least responsible consumers). Research limitations/implications This research indicates that when CSR is considered not as an aggregate construct, but in terms of its dimensions, their impacts on consumers’ loyalty towards the retailer may differ or appear under certain conditions. Moreover, this research points out that consumers’ trust in the retailer is a partial mediator (for the philanthropic activities dimension of a retailer’s CSR activities for the very responsible consumers and the local sceptical recyclers) of the relationship between the dimension of a retailer’s CSR activities considered and consumers’ loyalty towards this retailer. Consumers’ trust in the retailer is also a full mediator (for the respect for environment dimension of a retailer’s CSR activities for the very responsible consumers) of the relationship between the dimension of a retailer’s CSR activities considered and consumers’ loyalty towards this retailer. Lastly, retailer’s perceived brand equity is a full mediator (for the respect for environment dimension of a retailer’s CSR activities for the three groups of consumers considered) of the relationship between the dimension of a retailer’s CSR activities considered and consumers’ loyalty towards this retailer. Practical implications This paper indicates to retailers that the dimensions respect for the consumers and the workers of their CSR activities do not have an impact on consumers’ loyalty. By contrast, for a retailer to be perceived by consumers as engaged in philanthropic activities or being environmentally friendly has a positive impact on consumers’ loyalty. Originality/value In this research, CSR is conceptualised as a multidimensional construct and the impacts of its main dimensions (philanthropic activities, respect for the environment, respect for consumers and respect for workers) on an important and strategic variables for retailers, loyalty, are highlighted. Moreover, this research also indicates that the impacts of a retailer’s CRS dimensions on consumers’ loyalty depend on individuals and may follow different paths (through consumers’ trust in the retailer and/or retailer’s perceived brand equity).


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hsin-Hsien Liu ◽  
Hsuan-Yi Chou

PurposeBased on mental accounting theory, this study explored whether the comparability of missed and subsequent promotional formats/frames affects inaction inertia.Design/methodology/approachFour experiments with imaginary and incentive-compatible designs were conducted to test the hypotheses.FindingsConsumers are more likely to express inaction inertia after having missed a comparable promotion than after having missed a noncomparable promotion. Devaluation of the promoted target mediates the impact of comparability on inaction inertia, while referent others' actions do not moderate the comparability effect. Finally, when consumers accept a subsequent inferior promotion, they prefer using a different payment format because it reduces comparability of the two promotions.Practical implicationsCompanies should use different promotional formats/frames to reduce comparability and inaction inertia when a new promotion is relatively inferior to a recent previous one. Companies should offer different payment options to help customers actively avoid comparing a current promotion with a missed promotion.Originality/valueThis study provides a more comprehensive conceptual structure for understanding the relationship between psychological comparability and inaction inertia. It provides insights into what actions companies should take to reduce inaction inertia. Furthermore, this study empirically tests the influence of multiple comparison referents, which provides a reference point for future studies on the factors affecting inaction inertia. A new method to examine whether consumers actively avoid comparisons is used, which clarifies the internal mechanism of inaction inertia.


2021 ◽  
Vol 11 (2) ◽  
pp. 312-339
Author(s):  
Lan Anh Nguyen ◽  
Brendan O'Connell ◽  
Michael Kend ◽  
Van Anh Thi Pham ◽  
Gillian Vesty

PurposeThe study explores accountants' views of the likelihood of widespread accounting manipulation in the emerging economy, Vietnam. Applying the fraud triangle framework, we examine accountants' responses to management pressure, manipulation opportunities and perceptions of how they rationalize their decisions.Design/methodology/approachThe study uses an experimental methodology involving 592 Vietnamese accountants as participants. Post-experiment field interviews were conducted with eight highly experienced accountants.FindingsOur findings indicate that accounting manipulation is perceived to be common in Vietnam. The findings reveal that there is no differentiation between manipulation of accounting transactions with or without management pressure and no differentiation between collective gain or individual gain.Research limitations/implicationsWhile the study focused on accountants' perceptions of accounting manipulation, these views may change over time. The impact of law reforms and the potential for prosecution under the force of law provisions could alter these perceptions.Practical implicationsThe study findings alert regulators, government authorities and auditors of the perceptions and views in relation to accounting manipulation and the potential for fraud in Vietnam. Auditors could use help from forensic specialists to uncover unethical behaviors identified in this study.Originality/valueThe fraud triangle framework is used to shed light on fraud through the examination of accounting manipulation in Vietnam. We contribute to the relevant accounting literature with insights into accountants' motivations toward conducting questionable accounting transactions. The contributions we make draw attention to preconceptions of Asian societies; in particular, accounting actions to motivate collectivist gains. While we shed further light on fraudulent accounting, we conclude that the fraud triangle framework does not necessarily articulate fraud well in relation to accounting manipulation in emerging economies.


2020 ◽  
Vol 28 (6) ◽  
pp. 13-15

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings This research paper concentrates on clarifying the relationship between succession planning and employee performance, while also focussing on the impact of job demands and job resources. The results of the survey respondents from commercial banks in Pakistan reveal that succession planning does cause significant boosts in employee performance through its ability to increase the available job resources and engagement level that employees experience at work. Proactive succession planning is both a way of retaining future leader-worthy talent, and of saving significant recruitment costs when a suitable new leader is needed. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.


2016 ◽  
Vol 32 (7) ◽  
pp. 11-13 ◽  

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings Organizational success depends on efficient performance in a variety of areas and functions. Marketing is undoubtedly one of the most significant. It showcases a firm’s products and services and aims to develop positive perceptions toward them in consumers’ minds. Development and implementation of effective marketing strategies is therefore imperative. Such strategies must address the needs and requirements of target markets, ensure that any strategy is appropriate to the market environment where it is utilized and play to the strengths of the company’s resources and competences. Until recently, marketing strategies have been almost exclusively confined to developed markets. But the impact of globalization has resulted in competition becoming the norm in many emerging economies too. Practical implications The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.


2019 ◽  
Vol 27 (4) ◽  
pp. 37-39

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings A positive relationship exists between employee career development and job performance. The impact can become more substantial when the process of career development becomes the joint responsibility of employee and firm. This makes it imperative to identify individual and organizational factors most able to enhance the relationship and achieve desired outcomes. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.


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