Capital structure, competitive intensity and firm performance: an analysis of Indian pharmaceutical companies

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Neeti Mathur ◽  
Satish Chandra Tiwari ◽  
T. Sita Ramaiah ◽  
Himanshu Mathur
Keyword(s):  
Firm Performance ◽  
Capital Structure ◽  
Financial Performance ◽  
Market Competition ◽  
Competitive Intensity ◽  
Content Type ◽  
Relationship Of ◽  
The Relationship ◽  
Moderating Role

PurposeThis research paper aims to explore the relationship of financial performance and capital structure of Indian pharma firms of BSE 500, the impact of research and development (R&D) expenditure on financial performance and also explore the moderating role of competitive intensity between the existing relationship of capital structure and firm performance.Design/methodology/approachThe balanced panel data of listed pharma firms of BSE 500 are used for the research study, and the present study adopts both the panel and ordinary least square (OLS) estimation techniques to draw the results.FindingsThe results exhibit that the high debt ratio is harmful for the accounting performance of the selected sample of pharma firms of BSE 500. Besides, market competition negatively moderates the relationship between capital structure and firm performance.Research limitations/implicationsThe research findings provide evidence for the policymakers/regulators that the sample firms should discourage the high debt financing in the presence of competitive intensity in the product marketplace.Originality/valueThe core contribution of the current research is to examine impact of R&D expenditure on financial performance and the moderating role of market competition on the relationship of capital structure and firm performance to the best of the authors' knowledge, and no single study has previously explored this relationship in the context of BSE 500 pharma firms.

Capital structure, competitive intensity and firm performance: evidence from Pakistan

2019 ◽  
Vol 16 (5) ◽  
pp. 796-813 ◽  
Author(s):  
Naveed Ahmed ◽  
Talat Afza
Keyword(s):  
Firm Performance ◽  
Capital Structure ◽  
Market Competition ◽  
Product Market ◽  
Debt Financing ◽  
Product Market Competition ◽  
Competitive Intensity ◽  
Content Type ◽  
Moderating Role

Purpose The purpose of this paper is to explore the moderating role of competitive intensity between the existing relationship of capital structure and firm performance. Design/methodology/approach Using the balanced panel data of listed non-financial firms of Pakistan, the present study adopts both the panel and OLS estimation techniques to draw the inferences. Findings The results exhibit that high debt ratio is harmful for the accounting performance of the selected sample firms of Pakistan. In addition, product market competition negatively moderates the relationship between capital structure and firm performance which suggests that high product market competition can be used as a substitute of debt financing to align the interests of a firm’s managers and shareholders. Practical implications The findings of the research provide evidence for the policy makers/regulators that the sample firms should discourage the high debt financing in the presence of competitive intensity in the product marketplace. Originality/value The core contribution of the current research is to examine the moderating role of product market competition on the leverage–performance relationship because, to the best of the authors’ knowledge, no single study has previously explored this relationship in the context of Pakistan.

Resistance to change and turnover intention: a moderated mediation model of burnout and perceived organizational support

2020 ◽  
Vol 33 (7) ◽  
pp. 1431-1447 ◽  
Author(s):  
Shalini Srivastava ◽  
Swati Agrawal
Keyword(s):  
Organizational Support ◽  
Turnover Intention ◽  
Perceived Organizational Support ◽  
Resistance To Change ◽  
Cross Sectional ◽  
Content Type ◽  
Relationship Of ◽  
The Relationship ◽  
Moderating Role

PurposeThe purpose of the paper is to study the turnover intention of employees during the phenomenon of resistance to change. The paper examines the mediating role of burnout in the relationship of resistance of change to turnover intention and the moderating role of perceived organizational support in this relationship.Design/methodology/approachThe empirical data of the study has been collected via cross-sectional data collection method and include responses from 410 employees. The moderation mediation analysis has been done using the SPSS macro process.FindingsThe paper finds that resistance to change is an antecedent to the turnover intention which often represents employees' voluntary turnover in the future. This relationship of resistance to change and turnover intention is explained by burnout. However, the study establishes perceived organizational support as moderator, and with high POS, strength of this relationship will be reduced.Originality/valueThis paper contributes by examining the burnout as an intervening variable in the relationship of resistance to change and turnover intention and perhaps establishes for the first time the moderating role of perceived organizational support in reducing the influence of resistance to change on turnover intention, since retaining employees is of value to the organization.

Risk management and firm performance: the moderating role of supplier integration

2018 ◽  
Vol 118 (7) ◽  
pp. 1327-1344 ◽  
Author(s):  
Yongyi Shou ◽  
Wenjin Hu ◽  
Mingu Kang ◽  
Ying Li ◽  
Young Won Park
Keyword(s):  
Risk Management ◽  
Financial Performance ◽  
Operational Efficiency ◽  
Operational Performance ◽  
Content Type ◽  
Supplier Integration ◽  
Performance Effects ◽  
The Relationship ◽  
Moderating Role

PurposeThe purpose of this paper is to scrutinize the performance effects of supply chain risk management (SCRM). Besides financial performance, two aspects of operational performance are examined: operational efficiency and flexibility. Moreover, the authors explore the moderating role of supplier integration in the relationship between SCRM and operational performance.Design/methodology/approachA survey-based methodology was adopted. Based on the data from an international survey, this study applied the structural equation modeling and latent moderated structural equations approach to test the hypotheses.FindingsThe results indicate that SCRM positively influences both operational efficiency and flexibility, and has an indirect effect on financial performance. In addition, supplier integration enhances the impact of SCRM on operational flexibility, but does not moderate the relationship between SCRM and operational efficiency.Originality/valueThis study extends the existing literature by providing a comprehensive analysis of the performance effects of SCRM. It also provides managerial insights on both risk management and supplier integration.

scholarly journals Does CEO power matter for the performance of retrenchment strategy?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rayenda Khresna Brahmana ◽  
Hui Wei You ◽  
Maria Kontesa
Keyword(s):  
Firm Performance ◽  
Agency Theory ◽  
Ceo Power ◽  
Resource Based View ◽  
Content Type ◽  
Emerging Country ◽  
The Relationship ◽  
Circulation Theory ◽  
Moderating Role

PurposeThis research aims to examine the moderating role of CEO power on the relationship between retrenchment strategy and firm performance by framing the relationship under an agency theory, and power circulation theory.Design/methodology/approachThis study focuses on a sample of 319 non-financial public listed companies in Malaysia from the year 2011–2016 and estimates the model under two-step GMM panel regression to eliminate the endogeneity issue.FindingsThe results show that the retrenchment strategy increased firm performance. Meanwhile, greater CEO power changes that retrenchment effect into increased performance. This study also indicates the CEO power strengthens the relationship between firm performance and retrenchment. However, CEO power does not have any effect on the performance of low retrenchment, and the performance of big firm size.Research limitations/implicationsThe findings show that the higher CEO power cause higher firm performance and higher retrenchment. This research suggests that CEO power can make retrenchment strategy works and the decision made can affect the firm performance significantly.Originality/valueThis study examines the effect of CEO power on the performance of retrenchment strategy implementation by contesting agency theory, power circulation theory, and resource-based view theory within the emerging country context.

Proposing total quality management as a buffer between global software development challenges and project success

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Syed Danial Hashmi ◽  
Khurram Shahzad ◽  
Muhammad Izhar
Keyword(s):  
Software Development ◽  
Project Success ◽  
Negative Relationship ◽  
Global Software Development ◽  
Total Quality ◽  
Content Type ◽  
Relationship Of ◽  
The Relationship ◽  
Moderating Role

PurposeThis study aims to empirically investigate the relationship between different global software development (GSD) challenges (management, process, social, technical and environmental challenges) and software project success. Further, the study examines the moderating role of total quality management (TQM) between the relationship of GSD challenges and success of software projects.Design/methodology/approachUsing two field studies, the authors collected data form software developers working in globally distributed teams. In study 1 (n = 194), relationship of different dimensions of GSD challenges (management, process, social, technical and environmental challenges) and project success was examined. In study 2 (n = 138), moderating role of TQM was examined on the relationship of GSD challenges and project success.FindingsThe results of study 1 indicate that there is a negative relationship between all dimensions of GSD challenges and project success. Findings of study 2 confirmed that TQM practices moderate the negative relationship between GSD challenges and project success.Practical implicationsThe findings of the study provide guidelines to the project managers of software industry to mitigate GSD challenges using TQM practices.Originality/valueStudy adds in the literature of TQM, GSD challenges and project success by (1) empirically investigating the relationship between different GSD challenges and software project success and (2) by examining the moderating role of TQM practices on relationship of GSD challenges and project success in global software development industry.

Mediating effect of organizational learning and moderating role of environmental dynamism on the relationship between strategic change and firm performance

2019 ◽  
Vol 12 (2) ◽  
pp. 275-297 ◽  
Author(s):  
Haruna Isa Mohammad
Keyword(s):  
Organizational Learning ◽  
Firm Performance ◽  
Strategic Change ◽  
Developed Countries ◽  
Mediating Effect ◽  
Environmental Dynamism ◽  
Content Type ◽  
The Relationship ◽  
Moderating Role

Purpose With the materialization of literature on strategic change, it is clear that organizational learning and organizational dynamism have been among the most notable areas of study. The purpose of this paper is to extend the literature on strategic management by examining the mediating effects of organizational learning and the moderating role of environmental dynamism on the relationship between strategic change and firm performance. Design/methodology/approach A survey questionnaire was administered to 650 respondents who were both corporate and business-level managers of 22 main deposit money banks (commercial banks) and their branches across the country. In total, 630 questionnaires were returned and 587 were used after following all the processes of data preparation. Path analysis was employed to test the hypotheses in this study using Smart PLS 3. Findings The study found a significant mediating effect of organizational learning on the relationship between strategic change and firm performance. Although no significant moderating role of environmental dynamism was found, the directions of the path coefficients are consistent with the hypothesis. All the relationships between the constructs are significant. Research limitations/implications It is paramount for managers to understand the type of environment and learning that fits diverse kinds of strategic changes in order to improve firm performance. It is evident that changes that are not proactive and generative organizational learning may seem dangerous for a firm. However, organizations should learn to incorporate the change to be able to compete in a dynamic competitive environment. Originality/value Prior studies on strategic change, environmental dynamism and organizational learning have mainly focused on manufacturing and construction industries in the developed countries, but less has been done in the service sector, particularly the banking organizations in developing countries. Nigeria is one of those countries. Therefore, this study focuses on the links between strategic change and firm performance, moderating role of environmental dynamism and the mediating effect of organizational learning within the context of the Nigerian deposit money banks.

scholarly journals Moderating role of productivity on diversified conglomerates and performance: the case of Malaysia

2017 ◽  
Vol 9 (2) ◽  
pp. 118-133 ◽  
Author(s):  
Alex Kwaku Gyan
Keyword(s):  
Firm Performance ◽  
Content Type ◽  
Industrial Diversification ◽  
And Performance ◽  
Diversified Firms ◽  
The Relationship ◽  
Subsequent Modification ◽  
Moderating Role ◽  
Significant Moderator

Purpose The purpose of this paper is to investigate the previous mixed findings in the relationship between diversification and firm performance. Using international and industrial conglomerates, the paper introduces productivity as a moderating variable to ascertain whether the mixed views in the diversification-performance nexus is due to variations in productivity. The findings in both proxies of performance (q and return on asset (ROA)) show that productivity is not a significant moderator in the diversification-performance link, except that under industrial conglomerates productivity enhances ROAs significantly. Meanwhile, the results show that diversification either has no significant value on firm performance or relates negatively with performance – a contrasting result to the hypothesis of this study. Design/methodology/approach This study adopts diversification measurement, categorisation approach and the methodology used in the work of Fauver et al. (2004) and the subsequent modification by Lee et al. (2012). This study, however, investigates the moderating effect of productivity on diversified firms and not ownership as shown in the previous studies. Performance is measured by two proxies to show robustness of the study. ROA is an accounting tool and Tobin’s q reflects a market-based performance of the firm. Findings The results show that productivity has no moderating impact on a market-based performance of a diversified firm. Regarding ROA, results show a split in finding by showing that productivity has no significant impact on international diversification; however, for industrial diversification, results show significant impact. Originality/value The paper adds to knowledge of finance by ruling out the view that the inconsistencies in the diversification and performance nexus in emerging economies could be due to vagaries in productivity. It is confirmed that productivity technically does not strengthen the link between diversification and performance: suggesting that factors other than productivity could establish a maximal impact on that link to minimise the inconsistencies in the findings on diversification-performance link.

Mediating role of immediate performance outcomes between supply chain integration and firm performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nikhat Afshan ◽  
Purnendu Mandal ◽  
Angappa Gunasekaran ◽  
Jaideep Motwani
Keyword(s):  
Supply Chain ◽  
Firm Performance ◽  
Financial Performance ◽  
Performance Outcomes ◽  
Supply Chain Integration ◽  
Equation Modeling ◽  
Content Type ◽  
Mediating Role ◽  
The Relationship

PurposeThe purpose of this paper is to examine the mediating role of immediate performance outcomes on the relationship between dimensions of supply chain integration (SCI) and financial performance.Design/methodology/approachThis study tests the proposed model linking dimensions of SCI, immediate performance outcomes and financial performance using structural equation modeling on a sample of Indian manufacturing companies.FindingsThe findings suggest that the relationship between dimensions of SCI and firm performance is fully mediated through the immediate performance outcomes.Originality/valueThis study deals with the potential benefits of SCI, especially in developing countries like India, where a little research has been done in this area. Also, this study provides support to practitioners that SCI is an effective way of improving both supply chain performance and financial performance.

Environmental commitment and firm financial performance: a moderated mediation study of environmental collaboration with suppliers and CEO gender

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Thinh Truong Vu ◽  
Wilson V.T. Dang
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Structural Equation ◽  
Equation Modeling ◽  
Content Type ◽  
Environmental Commitment ◽  
Firm Financial Performance ◽  
The Relationship ◽  
Ceo Gender

Purpose Prior studies have found a mixed result on the relationship between environmental commitment and firm performance. To shed a new light on this relationship, this study aims to draw on stakeholder theory, upper echelon theory and gender socialization theory to determine the mediating role of environmental collaboration with suppliers and the moderating role of chief executive officers (CEOs) gender into this relationship. Design/methodology/approach This study conducts a questionnaire survey to collect sample data of 177 CEOs in manufacturing firms in China. Structural equation modeling is used to analyze data and test hypotheses. Findings Empirical results show that environmental commitment has a positive influence on firm financial performance. Furthermore, the results show that environmental collaboration with suppliers mediates the link between environmental commitment and financial performance. In addition, CEO gender has a moderating effect on the relationship between environmental commitment and environmental collaboration with suppliers. Finally, CEO gender also moderates the indirect effect of environmental commitment on financial performance through environmental collaboration with suppliers. Originality/value Findings of this study helps to clarify the mediating and moderating mechanism in the relationship between environmental commitment and firm performance. That is this study helps to clarify the mixed relationship between environmental commitment and firm performance in prior literature. This study also provides new insight and knowledge for business managers to make better decision in dealing with the environmental issue to enhance firm performance.

scholarly journals Innovation capability for SME success: perspectives of financial and operational performance

2014 ◽  
Vol 11 (2) ◽  
pp. 163-175 ◽  
Author(s):  
Minna Saunila
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Organizational Innovation ◽  
Operational Performance ◽  
Innovation Capability ◽  
Content Type ◽  
Leadership Culture ◽  
And Performance ◽  
Relationship Of ◽  
The Relationship

Purpose – The relationship between overall innovation and innovation capability, and performance has been a topic of several earlier studies. However, the effects of the aspects of innovation capability on performance of a firm have stayed unfamiliar. The purpose of this paper is to study the relationship between organizational innovation capability and firm performance. The study contributes to the current understanding by presenting the important aspects of organizational innovation capability that affect firm performance. The effects are studied to both financial and operational performance. Design/methodology/approach – The approach of this study is quantitative. The data used to test the hypotheses were gathered from Finnish small- and medium-sized enterprises (SMEs) with a web-based questionnaire. The sample covered 2,400 SMEs employing 11-249 persons and having a revenue of two to 50 Meuro. The sample was randomly selected. Findings – The findings showed that three aspects of innovation capability, namely ideation and organizing structures, participatory leadership culture, and know-how development, has some effect on different aspects of firm performance. Surprisingly, the aspects of innovation capability were found to be more influential to the financial performance than operational performance. Practical implications – The paper contains suggestions for improving performance through developing innovation capability. The paper aims to support practice in two ways. First, organizations can identify aspects of innovation capability that affect operational and financial performance. In that way, organizations can benefit the results by applying these aspects in their everyday operations. Second, the results of the paper may help professionals to begin to understand that leveraging innovation capability may improve an organization's performance. Originality/value – Previous research has often either concentrated on innovation capability as a one dimension without studying the relationship aspect by aspect or studying only the effects of one aspect of innovation capability. The results of the study take one step further by investigating the relationship of multiple aspects of innovation capability and firm performance.

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