Performance-based pay: alternative interpretations of the Portsmouth Block Mills’ savings

2016 ◽  
Vol 22 (3) ◽  
pp. 269-297 ◽  
Author(s):  
James M. Wilson
Keyword(s):  
Financial Performance ◽  
Design Methodology ◽  
Reward Systems ◽  
Content Type ◽  
Additional Work ◽  
Engineering Designs ◽  
Performance Based Pay ◽  
Practical Implications ◽  
Financial Analyses ◽  
Archived Data

Purpose The purpose of this paper is to describe and analyse a historic performance-based pay system used in 1803-1810 to reward Marc Isambard Brunel for his innovative engineering designs used in the Portsmouth Block Mills. This was used to ensure that Brunel would continue his work on the project once the design was complete to resolve any problems and make any desirable improvements to the machines and the system as a whole. Design/methodology/approach This research analyses archived correspondence between the project’s initiators: the Navy Board and Samuel Bentham along with the Admiralty as well as Marc Brunel. Basic financial analyses are applied to the historic cost and investment data. Findings The scheme was well designed and successfully kept Brunel involved in the implementation and operational phases of the project. However, there were numerous problems that delayed the project’s completion, thereby creating additional work for Brunel and also delaying and reducing his payments. Brunel was alienated by these developments. Research limitations/implications This research has exploited the archived data as fully as possible, and although there are no known deficiencies in the records, it would be desirable to have more complete and detailed information on the investment in, and operations of, the factory. Practical implications Reward systems should be designed and implemented so that events outside management’s and worker’s control should not disadvantage either group. Originality/value Detailed information about the operations and financial performance of an early factory are analysed in depth. These reveal how management and an innovative engineer interacted regularly over several years with numerous insights on their day-to-day relations.

Boosting the financial performance of B2B SMEs

2018 ◽  
Vol 34 (7) ◽  
pp. 32-34
Keyword(s):  
Financial Performance ◽  
Design Methodology ◽  
Reading Time ◽  
Brand Orientation ◽  
Content Type ◽  
Financial Outcomes ◽  
External Communication ◽  
Brand Credibility ◽  
Pertinent Information ◽  
Practical Implications

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 SMEs operating in the B2B context are able to boost financial outcomes by adopting a branding approach. Strong brand orientation and an emphasis on internal and external communication increases awareness and the brand credibility that can ultimately enhance business and financial performance. 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.

HC and financial performance with two HRM strategies

2017 ◽  
Vol 66 (4) ◽  
pp. 459-478 ◽  
Author(s):  
Nopadol Rompho
Keyword(s):  
Human Capital ◽  
Regression Analysis ◽  
Financial Performance ◽  
Lead Time ◽  
Design Methodology ◽  
Strategy Choice ◽  
Content Type ◽  
The Relationship ◽  
Practical Implications

Purpose The purpose of this paper is to examine the relationship between levels of human capital and financial performance of firms that use two distinct human resource management (HRM) strategies. Design/methodology/approach A survey of 128 HRM managers was conducted to assess differences in human capital between firms using different HRM strategies. A multiple regression analysis was used to investigate the relationship between firms’ human capital and financial performance. Findings The results show that companies employing a make-organic strategy have a higher level of human capital than companies employing a buy-bureaucratic strategy. There was no relationship between the level of human capital and long term financial performance of firms with both make-organic and buy-bureaucratic strategies. Research limitations/implications This research contributes toward understanding the effect of HRM strategy and facilitates an optimal strategy choice depending on the organization. However, this study did not consider the lead time between changes in human capital and the effect on financial performance. Practical implications The research encourages firm managers to understand the value of human capital, preparing them for changes in the future. Originality/value This study is among the first to investigate the relationship between human capital and financial performance considering different HRM strategies.

scholarly journals A review and analysis of service level agreements and chargebacks in the retail industry

2018 ◽  
Vol 29 (4) ◽  
pp. 1325-1345 ◽  
Author(s):  
Chun-Miin (Jimmy) Chen
Keyword(s):  
Financial Performance ◽  
Design Methodology ◽  
Service Level ◽  
Retail Industry ◽  
Service Level Agreements ◽  
Content Type ◽  
Significant Relationships ◽  
Research Findings ◽  
Inventory Turnover ◽  
Practical Implications

PurposeThe purpose of this paper is to examine service level agreements (SLAs) in the retail industry and uses empirical data to draw conclusions on the relationships between SLA parameters and retailer financial performance.Design/methodology/approachBased on prior SLA theories, hypotheses about the impacts of SLA confidentiality, choice of chargeback mechanisms and chargeback penalty on retailer inventory turnover are tested.FindingsRetailer inventory turnover could vary by the level of SLA confidentiality, and the variation of retailer inventory turnovers could be explained by chargeback penalty.Research limitations/implicationsThe research findings may not be readily applicable to SLAs outside of the retail industry. Also, most conclusions were drawn from publicly available SLAs.Practical implicationsThe significant relationships between SLA parameters and retailer inventory turnover imply that a retailer could improve its financial performance by leveraging its SLA design.Originality/valueNot only does this study contribute to the understanding of retail SLA design in practice, but it also extends prior theories by investigating the implications of SLA design on the retailer inventory turnover.

An assessment of OECD sustainable portfolios with a multi-criteria approach under uncertainty

Kybernetes ◽  
2017 ◽  
Vol 46 (1) ◽  
pp. 67-84 ◽  
Author(s):  
Klender Cortez Alejandro ◽  
Martha del Pilar Rodríguez García
Keyword(s):  
Financial Performance ◽  
Working Conditions ◽  
Design Methodology ◽  
Fuzzy Regression ◽  
Portfolio Performance ◽  
Content Type ◽  
Corporate Social ◽  
Practical Implications ◽  
Hybrid Methodology ◽  
Better Than

Purpose This paper aims to analyse the differences in financial performance portfolios between sustainable and non-sustainable firms through the use of portfolio theory and OptQuest algorithms from 2007 to 2013. Design/methodology/approach The sample consists of 1,078 firms from 15 Organisation for Economic Cooperation and Development countries. A maximisation weighted ratio is estimated by applying OptQuest algorithms to measure the portfolio performance considering a fuzzy Jensen’s alpha and the percentage of the portfolio’s performance that exceeds the market. Findings The results show a similar financial performance in sustainable portfolios (SP) and non-SP, but considering the uncertainty, the performance in sustainable firms was better than that of non-sustainable ones. Uncertainty was reduced, as it passed the beginning of the crisis from 2008-2009 to 2012-2013. Research limitations/implications The main limitation is the different assessments of sustainability indexes in each of the countries. Practical implications The results help investors assess their decisions in an uncertain economic environment and allocate their investment in not only financial terms but also social character. Social implications Countries with higher financial performances in SP show the efficiency in their legal environmental regulations. On the other hand, the degree of uncertainty is lower in the SP than non-SP, suggesting that sustainable firms in financial crisis could be more responsible in social claims such as good working conditions. Originality/value This study contributes to existing research in two ways. First, the paper studies corporate social responsibility by different continents and countries in an uncertain economic timespan. For this, the legal, cultural and socioeconomic divergences and convergences were explored. Second, the research presented an analysis of the financial performance differences between sustainable and non-SP by applying a hybrid methodology with fuzzy regression and OptQuest algorithms.

Doing good does not preclude doing well: corporate responsibility and financial performance

2018 ◽  
Vol 14 (4) ◽  
pp. 764-781 ◽  
Author(s):  
Jegoo Lee ◽  
Samuel B. Graves ◽  
Sandra Waddock
Keyword(s):  
Financial Performance ◽  
Corporate Responsibility ◽  
Design Methodology ◽  
Supply And Demand ◽  
Firm Level ◽  
Data Set ◽  
Content Type ◽  
Windows Of Opportunity ◽  
Business Cases ◽  
Practical Implications

Purpose This paper aims to propose and test a modified interpretation of long-standing issues on the corporate responsibility (CR)–corporate financial performance (CFP) relationship: companies involved in CR are in general no better and no worse in their level of financial performance than companies without such engagement because of the trade-off between benefit and cost at firm level and imbalance between supply and demand at industry (market) level. Design/methodology/approach The authors apply this frame to a data set with more than 12,000 observations over a 14-year period, using confidence intervals, as a useful and statistically valid approach for testing the null hypothesis. Findings The present study’s findings support neutrality between CR and CFP at the firm and industry levels, implying that a firm’s CR involvement neither penalizes nor improves its CFP. Research limitations/implications CR activities may provide windows of opportunity for companies but do not systematically improve financial performance. Practical implications “Doing good” is not a panacea for corporate achievement with respect to market-facing activities. For firms to succeed, instead, they need to create and implement their business cases and models by converting their involvement in CR activities into drivers for better outcomes because investments in CR practices do alone not guarantee improved financial performance. Originality/value The innovations in this study are twofold. Conceptually, this paper proposes a comprehensive approach for a neutral CR–CFP linkage. Empirically, it introduces a novel and appropriate method for testing neutrality. These will mark an important advance in the theoretical and empirical debates over CR and CFP.

Is the Sharia supervisory board a friend or an enemy of Islamic banks?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ibtissem Baklouti
Keyword(s):  
Financial Performance ◽  
North Africa ◽  
Design Methodology ◽  
Supervisory Board ◽  
Islamic Banks ◽  
Mena Region ◽  
Content Type ◽  
Islamic Countries ◽  
Islamic Financial Institutions ◽  
Practical Implications

Purpose This paper is an empirical study of the effect of the characteristics of the Sharia supervisory board (SSB) on the financial performance of Islamic banks. Design/methodology/approach Using 42 Middle East and North Africa (MENA) Islamic banks outside the Gulf Cooperation Council (GCC) and non-Islamic countries during the 2011/2018 period, a random-effects generalized lease square method for the regression analyzes is applied. Findings The obtained results show that the characteristics of the SSB affect the financial performance of Islamic banks. The results also affirm that a large-sized board of directors and the number of SSB meetings improve banking performance while the cross-mandate seems to destroy it. On the other hand, the SSB members’ competence and reputation and the proportion of women sitting in SSB have no impact on the financial performance of Islamic banks. Research limitations/implications This paper gives a comprehensive literature survey on the effect of the characteristics of the SSB on the financial performance of Islamic banks. Practical implications This study offers insights into the practitioner and Islamic banking regulators interested in enhancing the legitimacy of corporate governance in Islamic financial institutions. Originality/value This paper is among the few studies that investigate the effect of the characteristics of SSB on the financial performance of Islamic banks in particular in Islamic banks in the MENA region outside the GCC and in non-Islamic countries.

The influence of halal orientation strategy on financial performance of halal food firms

2019 ◽  
Vol 11 (1) ◽  
pp. 31-49 ◽  
Author(s):  
Suhaiza Zailani ◽  
Mohammad Iranmanesh ◽  
Shima Jafarzadeh ◽  
Behzad Foroughi
Keyword(s):  
Financial Performance ◽  
Production Process ◽  
Least Squares ◽  
Partial Least Squares ◽  
Design Methodology ◽  
Decision Makers ◽  
Content Type ◽  
Halal Food ◽  
The Relationship ◽  
Practical Implications

Purpose Although the halal orientation strategy (HOS) plays a key role in protecting the halal status of any product, research on the impacts of HOS on the financial performance of halal firms is lacking in the literature. As the main objective of all companies is to maximize their profit, this study aims to examine the influence of HOS on the financial performance of halal food firms with respect to halal culture as a moderator. Design/methodology/approach Data were obtained from a survey of 154 halal food firms in Malaysia and were analyzed using the partial least squares technique. Findings The results indicate that halal materials and halal storage and transportation positively affect financial performance, whereas the halal production process negatively affects financial performance. It is also interesting to observe that halal culture moderates the relationship between the production process and the financial performance of the firm. Practical implications The findings can help managers of halal food firms to enhance the financial performance of their respective firms by investing in HOS and giving attention to halal culture. It also helps decision makers to understand the importance of revising requirements for halal certification. Originality/value This study also contributes to the advancement of knowledge on the relationship between HOS and the financial performance of halal food firms.

Exploring the governance committee: the trinity’s great forgotten

2019 ◽  
Vol 19 (2) ◽  
pp. 339-352 ◽  
Author(s):  
Jean-François Henri ◽  
Sylvie Héroux
Keyword(s):  
Financial Performance ◽  
Empirical Research ◽  
Design Methodology ◽  
Financial Data ◽  
Board Members ◽  
Board Effectiveness ◽  
Content Type ◽  
Governance Committee ◽  
Practical Implications

Purpose This paper aims to explore governance committee’s attributes in terms of composition, roles/duties and responsibilities and operations. Design/methodology/approach Information on the governance committee and the board in general was collected from the websites of 167 Canadian firms. Financial data were collected from the Sedar database. Findings Results uncover two patterns of governance committee attributes (composition, roles and operations), resulting in our characterization of governance committees as “less active” and “more active.” In light of additional analyses, the two groups also differ in terms of antecedents and impact. Practical implications This study can help board members to enhance board effectiveness by describing governance committee attributes and identifying contextual factors that could lead to a more active governance committee. In addition, it suggests that such committee can improve financial performance. Originality/value This empirical research focuses on the governance committee, a largely unexplored primary board oversight committee. An index comprising 19 duties and responsibilities performed by the governance committee was developed.

Impact of COVID-19 on financial performance of logistics firms: evidence from G-20 countries

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Osama Fayez Atayah ◽  
Mohamed Mahjoub Dhiaf ◽  
Khakan Najaf ◽  
Guilherme Francisco Frederico
Keyword(s):  
Financial Performance ◽  
Design Methodology ◽  
Study Data ◽  
Global Perspective ◽  
Future Research ◽  
Content Type ◽  
Confirmatory Analysis ◽  
The Uk ◽  
Practical Implications

Purpose This study aims to contribute to the extant literature on logistics by investigating the interrelationship between the financial performance of listed logistics firms and the COVID-19 and compare the logistics firms’ financial performance of G-20 countries during the pandemic period. Design/methodology/approach To conduct the confirmatory analysis by testing the hypotheses formulated for this study, data have been collected from Bloomberg of all logistics firms from G-20 countries. This paper gathered the first quarter from 2010 until the last quarter of 2020 as the research sample to examine the pandemic impact on financial performance. Findings The results show that the financial performance of logistic firms was significantly higher during 2020. Overall, the country-wise findings corroborated with the main results and the financial performance of 14 countries’ logistic firms out of 20 ones analysed has been significantly elevated, during the pandemic period. However, this paper has found out a negative financial performance of the logistics firms during the COVID-19 period in six countries (Germany, Korea, Russia, Mexico, Saudi Arabia and the UK), which support the second proposition. Research limitations/implications The study’s results were important as they highlighted the role of logistics firms in offering insights to academics, practitioners, policymakers and logistic firms’ stakeholders. For future research, this paper suggests including some other variables that might influence firm performance and that have not been considered in this study, which is a limitation, and going more deeply into the logistics sector by comparing the financial performance of the sub-sectors. Practical implications As the importance of logistics services during the pandemic period is relevant, this study may provide significant insights because the logistics firms play a crucial role by anticipating to ensure the supply of essential items such as food, medicine, then supporting for the continuity of supply chains. The view of finance impacts during the pandemic may provide insightful perspectives for logistics companies, allowing them to understand those impacts and better prepare for likely disruption events such COVID-19 pandemic. Originality/value This paper is novel considering that it is unique in evaluating logistics firms’ financial performance from a global perspective, considering the context of this historical pandemic.

Lean bundles and configurations: a fsQCA approach

2018 ◽  
Vol 38 (2) ◽  
pp. 513-533 ◽  
Author(s):  
Ambra Galeazzo ◽  
Andrea Furlan
Keyword(s):  
Financial Performance ◽  
Lean Manufacturing ◽  
Design Methodology ◽  
Qualitative Comparative Analysis ◽  
Manufacturing Firms ◽  
Just In Time ◽  
Total Quality ◽  
Content Type ◽  
The Relationship ◽  
Practical Implications

Purpose The purpose of this paper is to examine whether there are different configurations of lean bundles leading to successful (bad) financial performance and to explore how the complementarities and substitutions between lean bundles shape these configurations. Design/methodology/approach A fuzzy-set qualitative comparative analysis (fsQCA) was performed on 19 manufacturing firms. Data on financial performance (return-on-asset and growth rate) were retrieved from the AIDA database and data on the lean bundles of just-in-time, total quality management, total preventive maintenance and human resource management were collected via surveys conducted in all the plants belonging to the sampled firms. Findings None of the lean bundles is able to explain alone the firm’s successful financial performance. Lean bundles always have to be complemented by other lean bundles. There are different, equifinal configurations of lean bundles leading to successful (bad) financial performance. Configurations characterized by low implementation of lean bundles are related to bad financial performance. Practical implications By finding different configurations of lean bundles associated with successful and bad financial performance, this study informs operations managers on the most effective investments concerning the implementation of lean manufacturing. Originality/value This study extends literature on complementarities in lean manufacturing literature. It also bridges together apparently contradictory research on the relationship between lean manufacturing and financial performance. Finally, the study demonstrates that lean bundles have different roles in reaching successful and bad financial performance.

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