Performance risk factors in SME strategic planning

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Keyword(s):  
Strategic Planning ◽  
Financial Performance ◽  
Emerging Market ◽  
Negative Influence ◽  
Positive Influence ◽  
Content Type ◽  
Political Ties ◽  
Pertinent Information ◽  
Internal Stakeholders ◽  
Business Ties

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 the links between SME financial performance, business ties, and political ties. Business ties were revealed to be the fundamental microfoundations of formal strategic planning (FSP), by significantly boosting firms' financial performance. However, political ties were revealed to be something to avoid, in emerging market like Turkey, due to their distracting negative influence of firm performance. SMEs can overcome some of the disadvantages of their size by involving positive influence external parties in strategic work, to support internal stakeholders. Originality/value The briefing saves busy executives, strategists 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.

Relational governance, strategic planning and firm performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Volkan Yeniaras ◽  
Ilker Kaya
Keyword(s):  
Firm Performance ◽  
Strategic Planning ◽  
Financial Performance ◽  
Emerging Economies ◽  
Structural Equation ◽  
Demand Uncertainty ◽  
Equation Modeling ◽  
Content Type ◽  
Political Ties ◽  
Business Ties

PurposeWhile there is growing attention to the efficacy of business and political ties in emerging economies, there are not many studies explicitly examining the relations of business and political ties to small and medium enterprises (SME) strategy formation in emerging economies outside of the East-Asian setting. This study attempts to refine the facilitating role of formal strategic planning (FSP) in the relation of business and political ties to financial firm performance.Design/methodology/approachStructural equation modeling and conditional mediation analyses were used.FindingsThe authors show that while business ties are positively related to FSP, political ties are negatively associated with it. In addition, this study provides empirical evidence that FSP positively mediates the relation of business ties to financial performance. Conversely, there exists a negative indirect relationship between political ties and financial performance. This study shows that the demand uncertainty negatively moderates the relation of FSP to financial performance.Originality/valueThe findings offer noteworthy inferences for firm managers and policy makers, who should evaluate the benefits and costs carried by business and political ties.

Linking green business strategy with financial performance

2019 ◽  
Vol 35 (11) ◽  
pp. 30-32
Keyword(s):  
Financial Performance ◽  
Business Strategy ◽  
Emerging Market ◽  
International Markets ◽  
Content Type ◽  
Cost Leadership ◽  
Leadership Process ◽  
Green Business ◽  
Pertinent Information ◽  
The Relationship

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 unpacking the relationship between green business strategy and export financial performance in emerging market manufacturing firms, specifically in Turkey. Overall, the pursuit of a green business strategy did increase the financial performance of the surveyed emerging market firms. This was achieved by combining green product differentiation with a committed cost leadership process, as a way of mitigating the additional expense associated with designing green products that appeal to consumers in international markets. Originality/value The briefing saves busy executives, strategists 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.

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.

Does capacity utilisation influence financial performance? A study of Indian public bus transport companies

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shivam Kushwaha ◽  
Shankar Prawesh ◽  
Anand Venkatesh
Keyword(s):  
Financial Performance ◽  
Public Transport ◽  
Ordinary Least Squares ◽  
Positive Influence ◽  
Data Envelopment ◽  
Truncated Regression ◽  
Capacity Utilisation ◽  
Content Type ◽  
Unit Increase ◽  
Unused Capacity

PurposeThe objective of the paper is to get a better understanding of capacity utilisation (CU) in Indian public bus companies. More specifically, this paper would be measuring CU and identifying the drivers of the same. Finally, the influence of CU on the financial performance of Indian bus companies is examined.Design/methodology/approachThe study adopted data envelopment analysis (DEA) to measure the CU in Indian public bus companies. Truncated regression was used to identify the drivers of CU. Subsequently, the ordinary least squares (OLS) regression was used to analyse the influence of CU on Indian bus companies' financial performance. The period of study was from 2013 to 17.FindingsThe significant drivers of CU were fleet age, passenger lead and fleet utilisation. Additionally, it was found that CU had a significant positive influence on the financial performance of Indian public bus companies and a unit increase in unused capacity has led to an increase of 7% in the operating ratio of the bus companies.Practical implicationsGetting insights into CU, apart from technical efficiency, is of immense use to both public transport researchers and practitioners. Managers of public bus companies should be mindful of CU as it has a significant bearing on their financial performance.Originality/valueThis is the first study in public transport, which establishes the linkage between CU and financial performance. Besides, a modified measure of cost-efficiency has also been conceptualised in this study.

Network activities as critical sources of creating capability and competitive advantage

2019 ◽  
Vol 58 (3) ◽  
pp. 544-568 ◽  
Author(s):  
Chih-Hsing Liu ◽  
Angela Ya-Ping Chang ◽  
Yen-Po Fang
Keyword(s):  
Social Capital ◽  
Human Capital ◽  
Competitive Advantage ◽  
Organizational Performance ◽  
Innovation Capability ◽  
Content Type ◽  
Political Ties ◽  
Depth Analysis ◽  
The Relationship ◽  
Business Ties

Purpose The purpose of this paper is to propose a new integrated model that combines the concepts of network ties (e.g. political ties and business ties), the organization of internal critical attributes (such as social capital, human capital and innovation capability) and analyses of how those critical attributes influence organization performance and competitive advantage. Design/methodology/approach A structural equation model and three-way interactions in moderated multiple regressions was used to test the hypotheses on a sample of 621 cultural and creative industry (CCI) managers in Taiwan. Findings The results indicate that human capital mediates the relationship between social capital and innovation capability. Furthermore, innovation capability also plays a mediating role in connecting the relationships between human capital, competitive advantage and organizational performance. The findings indicate that business ties strengthen the relationship between social and human capital. The level of human capital is at its peak when social capital, business ties, and political ties considerably interact with one another. Research limitations/implications The present study conceptualized the topic and systematized the questionnaire design and data collection, statistical analysis, and report writing. This study performs a systematic analysis to present the research but does not employ in-depth qualitative interviews to analyse the essential attributes of the different entrepreneurial styles. In-depth interviews enable the interviewees to completely depict their feelings, experiences, motivations, emotions and attitudes. Thus, this method can provide an in-depth analysis. Studies can be conducted to analyse the complexity of the processes involved. Practical implications This study determines and emphasizes that networking with various factors to create innovation is the key to enhancing competitive advantage and organizational performance. Innovation is a unique characteristic and a basic kinetic energy that affects various strategic organizational behaviours that positively influence competitive advantage and facilitate organizational performance. Hence, CCI firms need to consider market orientation and innovation in this highly competitive environment. Originality/value To the best of the knowledge, how CCI firms use networking sources to create competitive advantage and organizational performance, thereby promoting the development of the CCIs of Taiwan, has not been analysed in the tourism-related literature. Thus, the present study provides a significant contribution to the human capital literature, in which empirical research analyses the three-way interaction and demonstrates the empirical insights that may be used to study human capital. The findings reported in this study will encourage future researchers to employ multilevel human capital perspectives.

Mitigating the risks of acquiring foreign strategic assets

2019 ◽  
Vol 35 (8) ◽  
pp. 21-23
Keyword(s):  
Design Methodology ◽  
Reading Time ◽  
Emerging Market ◽  
Developed Countries ◽  
Location Strategy ◽  
Content Type ◽  
Strategic Assets ◽  
Pertinent Information ◽  
Timing Of Entry ◽  
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 This research paper concentrates on a range of entry options available to emerging market companies who intend to expand their global reach by seeking strategic assets in developed countries. The results reveal that the emerging market investor’s appetite for amassing strategic assets, such as Western brands and technologies, materially influences their location strategy, their chosen mode of ownership, and their investment intensity but not their timing of entry. Originality/value The briefing saves busy executives, strategists, 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.

Creating competitive advantage through network ties, entrepreneurial orientation and intellectual capital

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chih-Hsing (Sam) Liu
Keyword(s):  
Competitive Advantage ◽  
Intellectual Capital ◽  
Entrepreneurial Orientation ◽  
Competitive Advantages ◽  
Organizational Capital ◽  
Network Ties ◽  
Content Type ◽  
Political Ties ◽  
Managerial Ties ◽  
Business Ties

PurposeThis study attempts to explore how a cultural and creative firm's competitive advantages can be maintained through the accumulation of intellectual capital and entrepreneurial orientation. Another goal of this study is to identify the different mechanisms of network ties to explore the interrelationships between organizational capital and competitive advantage in the context of Taiwan and China.Design/methodology/approachStudy 1 and study 2 settings are applied, and 786 samples (i.e., 418 samples from Taiwan and 368 samples from China) are used to examine the proposed model.FindingsStudy 1 reveals that entrepreneurial orientation may influence the organization capital through human capital and social capital, which discloses the mutual relationships of intellectual capital. Further, the results of study 2 confirm the mediating role of intellectual capital that links the relationships between entrepreneurial orientation and competitive advantage. Specifically, this study also discovered that firms with more network or political ties (e.g. the Chinese samples) and business ties (e.g. the Taiwanese samples) tend to amplify the effects of organizational capital on competitive advantage.Practical implicationsAccording to our empirical results, cultural and creative managers should build a learning mechanism to encourage and develop entrepreneurial orientation and intellectual capital capacities and to provide means of understanding of customers' changing expectations. Hence, in enhancing entrepreneurial orientation and intellectual capital cultural and creative firms can develop a competitive advantage over competitors. Our findings also offer new insight to support further studies of the benefits of managerial ties for firms operating in Guanxi cultural settings in Chinese contexts.Originality/valueMost previous studies on tourism strategies have disregarded the impacts and different roles of government (e.g. political ties) and business (e.g. business ties) forces on cultural and creative firms' competitive advantages, suggesting a need to address social network issues in response to dynamic tourism environments. Therefore, this study examines differences in network ties and the differences observed between China and Taiwan in the context of Chinese cultural and creative firms.

Factors affecting tender price in the Ghanaian construction industry

2017 ◽  
Vol 22 (3) ◽  
pp. 252-268 ◽  
Author(s):  
Ernest Kissi ◽  
Theophilus Adjei-Kumi ◽  
Edward Badu ◽  
Emmanuel Bannor Boateng
Keyword(s):  
Construction Industry ◽  
Structural Equation ◽  
Construction Projects ◽  
Negative Influence ◽  
Positive Influence ◽  
The Body ◽  
Content Type ◽  
Factors Affecting ◽  
Practical Implications ◽  
Structured Questionnaire

Purpose Tender price remains an imperative parameter for clients in deciding whether to invest in a construction project, and it serves as a basis for tender price index (TPI) manipulations. This paper aims to examine the factors affecting tender price in the construction industry. Design/methodology/approach Based on the literature review, nine independent constructs and one dependent construct relating to tender pricing were identified. A structured questionnaire survey was conducted among quantity surveyors in Ghana. Partial least squares structural equation modelling (PLS-SEM) examined the influences of various constructs on tender price development (TPD) and the relationships among TPD and TPI. Findings Results showed that cultural attributes, client attributes, contractor attributes; contract procedures and procurement methods; consultant and design team; external factors and market conditions; project attributes; sustainable and technological attributes; and TPI have a positive influence on tender price, whereas fraudulent attributes exert a negative influence. Practical implications The findings offer construction professionals broader understanding of factors that affect tender pricing. The results may be used in professional decision-making in the pricing of construction projects, as they offer clearer causal relations between how each construct will influence pricing. Originality/value This study adds to the body of construction pricing knowledge by establishing the relationships and degree of influences of various factors on tender price. These findings provide a valuable reference for practitioners.

Strategic planning for sustainable performance: the role of firm spirituality

2017 ◽  
Vol 33 (5) ◽  
pp. 26-29
Keyword(s):  
Strategic Planning ◽  
Design Methodology ◽  
Reading Time ◽  
Well Being ◽  
Business Organizations ◽  
Content Type ◽  
Sustainable Performance ◽  
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 Growing pressure from different groups has forced business organizations to reconsider existing strategies of securing a competitive advantage through the exploitation of natural resources. Demands for greater sustainability have forced companies to seek new ways to differentiate their offerings. Firm spirituality is offered as a novel means of increasing sustainability and maximizing the focus on enhancing the well-being of society and the environment. This can be achieved by aligning key spirituality elements with the different stages of strategic planning to position the organization as one with limitless capabilities. 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.

Managing strategic supplier relationships: antecedents and outcomes

2015 ◽  
Vol 30 (2) ◽  
pp. 129-138 ◽  
Author(s):  
Eric P. Jack ◽  
Thomas L. Powers
Keyword(s):  
Service Quality ◽  
Financial Performance ◽  
Empirical Evidence ◽  
Structural Equation ◽  
Positive Influence ◽  
Equation Modeling ◽  
Management Support ◽  
Quality Outcomes ◽  
Supplier Relationships ◽  
Content Type

Purpose – The purpose of this paper was to examine the antecedents of strategic supplier relationships in conjunction with outcomes of product and service quality and financial performance. The management of strategic supplier relationships involves the selection and development of suppliers that share common goals and strategies of the partnering organization. Design/methodology/approach – Structural equation modeling using partial least squares is used to verify and test these relationships. Findings – Top management support, technological preparedness and trust were found to have significant positive influences on the management of strategic supplier relationships. Strategic supplier relationships were found to have a positive influence on product and service quality outcomes and financial performance. Research limitations/implications – The results provide new and original empirical evidence on the relationship between the antecedents and outcomes of strategic supplier relationships. Practical implications – The findings can contribute to the management of supplier relationships, resulting in improved product and service quality outcomes and financial performance. Originality/value – The research adds empirical evidence to the literature on the factors that contribute to effective supplier relationships and the customer- and firm-related outcomes of this process.

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