Internationalization and failure risk patterns

2019 ◽  
Vol 29 (1) ◽  
pp. 25-43 ◽  
Author(s):  
Oliver Lukason ◽  
Tiia Vissak
Keyword(s):  
Financial Performance ◽  
Statistical Tests ◽  
European Market ◽  
Content Type ◽  
Failure Risk ◽  
Single European Market ◽  
Medium Risk ◽  
Universal Prediction ◽  
Export Shares ◽  
Target Markets

PurposeThis paper aims to find out what kind of export and failure risk patterns exist among young Estonian manufacturing exporters and explore their interlinkages.Design/methodology/approachThe sample consisted of 208 young Estonian manufacturing exporters. Based on internationalization literature, export patterns were detected with a consecutive three-stage clustering of export sales share from total sales, outside-Europe sales share from export sales and number of target markets, while failure risk patterns were detected by clustering failure probabilities obtained from a universal prediction model. The interconnection of export patterns with financial ratios and failure risk patterns was studied with statistical tests.FindingsSix main internationalization patterns existed. In all, 49 per cent of firms exported to a single European market and their export share was constantly very low, while even most of the firms with high export shares (39 per cent of the sample) were also active on one European market. In terms of failure risk patterns, 49 per cent of firms had constantly very low failure risk, while 51 per cent of firms had medium risk. Higher export engagement did not lead to better financial performance or lower failure risk.Originality/valueThis study is the first to find out if firms following different export patterns are also characterized by specific financial performance and failure risk. In addition, studies encompassing young exporters’ specific target markets and failure risk development are rare. While exporters’ and non-exporters’ financial performance differences have been frequently documented in favor of the former, this study found no such differences for different types of young exporters.

Dimensions of organisational innovativeness and company financial performance in the biotechnology sector

2019 ◽  
Vol 40 (6) ◽  
pp. 1110-1130 ◽  
Author(s):  
Krista Jaakson ◽  
Hannele-Marianne Aljaste ◽  
Piia Uusi-Kakkuri
Keyword(s):  
Financial Performance ◽  
Human Resource ◽  
Statistical Tests ◽  
Qualitative Comparative Analysis ◽  
Small Sample ◽  
Content Type ◽  
Human Resource Policies ◽  
Biotechnology Companies ◽  
Biotechnology Sector ◽  
Pharmaceutical Biotechnology

Purpose The relationship between organisational innovativeness (OI) and company performance has been studied extensively, and the associations found have mostly been positive. However, as OI is a multidimensional concept, more nuanced research is needed to identify which dimensions of innovativeness companies should focus on. The purpose of this paper is to longitudinally investigate the links between dimensions of OI and company financial performance, based on a sample of Finnish and Estonian pharmaceutical biotechnology companies. Design/methodology/approach Interviews inquiring about OI were conducted in 26 biotechnology companies and then their performance was measured over three subsequent years using objective financial data. Due to limited sample size, qualitative comparative analysis is employed in addition to non-parametric statistical tests. Findings Overall, OI did not decisively influence financial performance in the studied sector. There were, however, dimensions related to human resource policies that appeared to have more potential to positively impact financial performance, whereas the strategic dimension was actually aversive to certain performance indicators. Research limitations/implications The study limitations are a small sample, possible managerial bias in the assessment of OI, and focus on financial measures only. Practical implications The study demonstrates that OI is a multidimensional construct and not all dimensions play an equal role in financial performance. Innovation-supportive human resource policies and strategic flexibility contributes to financial performance in the pharmaceutical biotechnology sector. Originality/value The contribution of the study is the analysis of a specific sector with a longitudinal approach by bridging quantitative and qualitative approach.

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.

An empirical examination of firm financial performance along dimensions of supply chain resilience

2017 ◽  
Vol 40 (3) ◽  
pp. 254-269 ◽  
Author(s):  
Xun Li ◽  
Qun Wu ◽  
Clyde W. Holsapple ◽  
Thomas Goldsby
Keyword(s):  
Supply Chain ◽  
Financial Performance ◽  
Three Dimensions ◽  
Empirical Examination ◽  
Content Type ◽  
Supply Chain Resilience ◽  
Critical Dimensions ◽  
Firm Financial Performance ◽  
Supply Chain Agility ◽  
The Impact

Purpose This paper aims to investigate the impact of three critical dimensions of supply chain resilience, supply chain preparedness, supply chain alertness and supply chain agility, all aimed at increasing a firm’s financial outcomes. In a turbulent environment, firms require resilience in their supply chains to prepare for potential changes, detect changes and respond to actual changes, thus providing superior value. Design/methodology/approach Using survey data from 77 firms, this study develops scales for preparedness, alertness and agility. It then tests their hypothesized relationships with a firm’s financial performance. Findings The results reveal that the three dimensions of supply chain resilience (i.e. preparedness, alertness and agility) significantly impact a firm’s financial performance. It is also found that supply chain preparedness, as a proactive resilience capability, has a greater influence on a firm’s financial performance than the reactive capabilities including alertness and agility, suggesting that firms should pay more attention to proactive approaches for building supply chain resilience. Originality/value First, this study develops a comparatively comprehensive definition for supply chain resilience and explores its dimensionality. Second, this study provides empirically validated instruments for the dimensions of supply chain resilience. Third, this study is one of the first to provide empirical evidence for direct impact of supply chain resilience dimensions on a firm’s financial performance.

A benchmarking study of Indian seaports

2019 ◽  
Vol 13 (1) ◽  
pp. 88-102
Author(s):  
Sajeev Abraham George ◽  
Anurag C. Tumma
Keyword(s):  
Financial Performance ◽  
Future Research ◽  
Data Envelopment ◽  
Operational Parameters ◽  
Two Stage ◽  
Content Type ◽  
The Public ◽  
Port Authorities ◽  
Financial Performance Measures ◽  
The Government

Purpose The purpose of this paper is to benchmark the operational and financial performances of the major Indian seaports to help derive useful insights to improve their performance. Design/methodology/approach A two-stage data envelopment analysis (DEA) methodology has been used with the help of data collected on the 13 major seaports of India. The first stage of the DEA captured the operational efficiencies, while the second stage the financial performance. Findings A window analysis over a period of three years revealed that no port was able to score an overall average efficiency of 100 per cent. The study identified the better performing units among their peers in both the stages. The contrasting results of the study with the traditional operational and financial performance measures used by the ports helped to derive useful insights. Research limitations/implications The data used in the study were majorly limited to the available sources in the public domain. Also, the study was limited to the major seaports which are under the Government of India and no comparisons were carried out with other local or international ports. Practical implications There is a need to prioritize investments and improvement efforts where they are most needed, instead of following a generalized approach. Once the benchmark ports are identified, the port authorities and other relevant stakeholders should work in detail on the factors causing inefficiencies, for possible improvements in performance. Originality/value This paper carried out a two-stage DEA that helped to derive useful insights on operational efficiency and financial performance of the India seaports. A combination of the financial and operational parameters, along with a comparison of the DEA results with the traditional measures, provided a different perspective on the Indian seaport performance. Considering the scarcity of research papers reported in the literature on DEA-based benchmarking studies of seaports in the Indian context, it has the potential to attract future research in this field.

Do disclosure and transparency affect bank’s financial performance?

2019 ◽  
Vol 19 (6) ◽  
pp. 1344-1361
Author(s):  
Isaiah Oino
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Financial Performance ◽  
Financial Institutions ◽  
Content Type ◽  
Loan Portfolios ◽  
Cent Level ◽  
Transparency And Disclosure ◽  
The Impact

Purpose The purpose of this paper is to examine the impact of transparency and disclosure on the financial performance of financial institutions. The emphasis is on assessing transparency and disclosure; auditing and compliance; risk management as indicators of corporate governance; and understanding how these parameters affect bank profitability, liquidity and the quality of loan portfolios. Design/methodology/approach A sample of 20 financial institutions was selected, with ten respondents from each, yielding a total sample size of 200. Principal component analysis (PCA), with inbuilt ability to check for composite reliability, was used to obtain composite indices for the corporate governance indicators as well as the indicators of financial performance, based on a set of questions framed for each institution. Findings The analysis demonstrates that greater disclosure and transparency, improved auditing and compliance and better risk management positively affect the financial performance of financial institutions. In terms of significance, the results show that as the level of disclosure and transparency in managerial affairs increases, the performance of financial institutions – as measured in terms of the quality of loan portfolios, liquidity and profitability – increases by 0.3046, with the effect being statistically significant at the 1 per cent level. Furthermore, as the level of auditing and the degree of compliance with banking regulations increases, the financial performance of banks improves by 0.3309. Research limitations/implications This paper did not consider time series because corporate governance does not change periodically. Practical implications This paper demonstrates the importance of disclosure and transparency in managerial affairs because the performance of financial institutions, as measured in terms of loan portfolios, liquidity and profitability, increases by 0.4 when transparency and disclosure improve, with this effect being statistically significant at the 1 per cent level. Originality/value The use of primary data in assessing the impact of corporate governance on financial performance, instead of secondary data, is the primary novelty of this study. Moreover, PCA is used to assess the weight of the various parameters.

Is Strategic Planning Worth the Effort? A Study of Firm Performance Versus Planning Comprehensiveness in Australia

2000 ◽  
Vol 6 (1) ◽  
pp. 1-13 ◽  
Author(s):  
Peter Devenish ◽  
Tom Fisher
Keyword(s):  
Strategic Planning ◽  
Financial Performance ◽  
Statistical Tests ◽  
The United States ◽  
Negative Finding ◽  
Positive Correlation ◽  
Listed Firms ◽  
The United Kingdom ◽  
Weak Positive Correlation ◽  
Positive Correlations

AbstractThe planning-performance literature suggests that there is a weak positive correlation between strategic planning and financial performance. This study has been undertaken to determine whether this weak positive correlation is true for Australian firms.Strategic planning for the purposes of this study is arranged in three levels of planning complexity. A sample of 77 listed firms was surveyed to determine their level of planning complexity, and this was correlated with the firm's financial performance over a three year period.A range of statistical tests did not reveal any significant correlation between strategic planning at any of the three levels and the financial performance of the firm. This negative finding is generally in line with other recent studies conducted in Australia, the United States and the United Kingdom.However, positive correlations were found with several subjective performance measures, suggesting that respondents generally believe that strategic planning is helping their company.

Preventive maintenance scheduling using analysis of variance-based ant lion optimizer

2018 ◽  
Vol 15 (2) ◽  
pp. 254-272 ◽  
Author(s):  
Umamaheswari Elango ◽  
Ganesan Sivarajan ◽  
Abirami Manoharan ◽  
Subramanian Srikrishna
Keyword(s):  
Analysis Of Variance ◽  
Heuristic Algorithm ◽  
Heuristic Algorithms ◽  
Statistical Tests ◽  
Population Based ◽  
Maintenance Scheduling ◽  
Content Type ◽  
Ant Lion Optimizer ◽  
Ant Lion ◽  
Selection Of

Purpose Generator maintenance scheduling (GMS) is an essential task for electric power utilities as the periodical maintenance activity enhances the lifetime and also ensures the reliable and continuous operation of generating units. Though numerous meta-heuristic algorithms have been reported for the GMS solution, enhancing the existing techniques or developing new optimization procedure is still an interesting research task. The meta-heuristic algorithms are population based and the selection of their algorithmic parameters influences the quality of the solution. This paper aims to propose statistical tests guided meta-heuristic algorithm for solving the GMS problems. Design/methodology/approach The intricacy characteristics of the GMS problem in power systems necessitate an efficient and robust optimization tool. Though several meta-heuristic algorithms have been applied to solve the chosen power system operational problem, tuning of their control parameters is a protracting process. To prevail over the previously mentioned drawback, the modern meta-heuristic algorithm, namely, ant lion optimizer (ALO), is chosen as the optimization tool for solving the GMS problem. Findings The meta-heuristic algorithms are population based and require proper selection of algorithmic parameters. In this work, the ANOVA (analysis of variance) tool is proposed for selecting the most feasible decisive parameters in algorithm domain, and the statistical tests-based validation of solution quality is described. The parametric and non-parametric statistical tests are also performed to validate the selection of ALO against the various competing algorithms. The numerical and statistical results confirm that ALO is a promising tool for solving the GMS problems. Originality/value As a first attempt, ALO is applied to solve the GMS problem. Moreover, the ANOVA-based parameter selection is proposed and the statistical tests such as Wilcoxon signed rank and one-way ANOVA are conducted to validate the applicability of the intended optimization tool. The contribution of the paper can be summarized in two folds: the ANOVA-based ALO for GMS applications and statistical tests-based performance evaluation of intended algorithm.

Heterogeneous investors and trading platforms competition

2015 ◽  
Vol 16 (3) ◽  
pp. 303-320 ◽  
Author(s):  
Nathalie Oriol ◽  
Alexandra Rufini ◽  
Dominique Torre
Keyword(s):  
Design Methodology ◽  
Network Externalities ◽  
International Competitiveness ◽  
Foreign Market ◽  
International Competition ◽  
European Market ◽  
Financial Instruments ◽  
International Context ◽  
Trade Off ◽  
Content Type

Purpose – The purpose of this paper is to consider competition’s issues between European market firms, such as Euronext, and multilateral trading facilities, following Markets in Financial Instruments Directive’s enforcement. This new domestic competition is adding to the existing international competition among financial centers. While diversification of local trading services can improve the international competitiveness of a financial center, the fragmentation of order flows can harm its attractiveness. Design/methodology/approach – The theoretical setting analyzes the interaction between heterogeneous who experiment network externalities, and heterogeneous local trading services providers (alternative platforms and incumbent) in an international context. The authors compare two forms of organizations of the market: a consolidated market, and a fragmented market with alternative platforms – in both cases, in competition with a foreign universe. Findings – The results of this study point out the importance of the trade-off between diversification and externalities. With alternative platforms entry, enhanced competition decreases fees and redistributes informed investors between the foreign market and the domestic one. The increase of domestic platforms’ number then has more complex effects on externalities (of information and liquidity). When the liquidity externalities are low, the diversification of financial platforms increases the number of investors on domestic centers. When liquidity externalities are not negligible, despite the decrease of fees, this same diversification orientates more informed investors to the foreign center. Originality/value – This model is the first to analyze jointly the internal and international competition of trading platforms with heterogeneous investors.

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.

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