ORGANISATIONAL STRUCTURE, CORPORATE ENTREPRENEURSHIP AND PERFORMANCE

1998 ◽  
Vol 06 (01) ◽  
pp. 111-146 ◽  
Author(s):  
SHAKER A. ZAHRA ◽  
JEFFREY G. COVIN ◽  
PATRICIA H. ZAHRA

The importance of a firm's formal organisational structure for stimulating corporate entrepreneurship (CE) has been the subject of interest and debate in the literature. A firm's organisational structure usually provides the context, incentives and impetus for its CE activities and determines the success of its innovative ventures. This study empirically examines the association of the dimensions of organisational structure with CE activities in a sample of 130 banks. The results suggest that low formalisation, low centralisation, high professionalism, high participation, and intensive organisational-wide communication are positively associated with CE. Further, CE is positively associated with bank financial performance measures. Finally, the fit between the dimensions of organisational structure and CE is associated with successful organisational performance.

Author(s):  
Therese A. Joiner ◽  
X. Sarah Yang Spencer ◽  
Suzanne Salmon

PurposeAgainst a background of a customization imperative embraced by manufacturing firms in industrialised nations and the concomitant call for more balanced performance measurement systems (PMS), this study seeks to examine the mediating role of both non‐financial and financial performance measures in the relationship between a firm's strategic orientation of flexible manufacturing and organisational performance.Design/methodology/approachA path‐analytical model is adopted using questionnaire data from 84 Australian manufacturing firms.FindingsThe results indicate that, first, firms emphasising a flexible manufacturing strategy utilise non‐financial as well as financial performance measures; second, these performance measures are associated with higher organisational performance; and third, there is a positive association between a firm's strategic emphasis on flexible manufacturing and organisation performance via non‐financial and financial performance measures.Practical implicationsWhile there is agreement on the beneficial role of non‐financial performance measures in supporting strategic priorities associated with customization strategies, equivocal research results have emerged on the role of financial performance measures in this context. The study underscores the importance of both non‐financial and financial performance measures in this context.Originality/valueThe paper reinstates the value of financial performance measures for firms pursuing customization type strategies and adds to one's knowledge of PMSs by exploring the intervening role of such systems in linking flexible manufacturing strategy to organisation performance.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Abdallah Amhalhal ◽  
John Anchor ◽  
Marina Papalexi ◽  
Shabbir Dastgir

PurposeThis study is an empirical investigation of the relationship between the use of 41 multiple performance measures (MPMs), including financial performance measures (FPM), non-financial performance measures (NFPMs) and organisational performance (OP) in Libya.Design/methodology/approachThe results are based on cross-sectional questionnaire survey data from 132 Libyan companies (response rate 61%), which were obtained just before the so-called Arab Spring.FindingsMPMs are used by both manufacturing and non-manufacturing companies. Libyan business organisations are more likely to use FPMs than NFPMs. However, these companies still rely more heavily on FPMs. The relationships between the use of NFPMs and OP and the use of MPMs and OP are positive and highly significant. The relationship between the use of FPMs and OP is positive but not significant.Research limitations/implicationsThe high power distance associated with the conservative, Libyan, Arab context will reinforce the tendency to use FPMs more than NFPMs. This may provide a performance advantage to those organisations which do adopt NFPMs.Practical implicationsAlthough there may be institutional barriers to the use of NFPMs in Libya, and other emerging markets, these are not insuperable and there is a payoff to their use.Originality/valueNo previous studies of emerging markets, such as the Middle East or North Africa, have looked at the relationship between OP and the adoption of such a large array of MPMs.


Author(s):  
Emilyn Cabanda ◽  
Eleanor C. Domingo

Banking institutions, nowadays, serve as intermediaries of funds to a variety of clients, including the micro enterprisers. This study analyzes and measures the performance of rural and thrift banks with microfinance operations in the Philippines, using combined measures of data envelopment analysis and traditional financial performance indicators. Data envelopment analysis (DEA) method is employed to measure the productive efficiency of these banks under the production approach. The variable returns to scale is also used, with the assumption that not all banks are operating at optimal scale over the long-run period. DEA findings reveal that sample banks performed below the production frontier. The average technical efficiency score of these banks is 66.09% and additional 33.91% is needed to reach the production frontier. Overall, thrift banks are found to be more productively efficient than rural banks as depository banks. The authors have also found a strong relationship between financial performance measures and bank's productive efficiency. For thrift banks, sustainability, ROE and ROA measures showed a statistically significant positive correlation to the banks' productive efficiency while a negative relationship was observed in rural banks. Lastly, the authors can suggest that both DEA's productive efficiency and financial performance measures are consistently and strongly correlated when evaluating the overall performance of banks with microfinance operations.


2013 ◽  
Vol 26 (2) ◽  
pp. 243-267 ◽  
Author(s):  
Kari Joseph Olsen ◽  
Kelsey Kay Dworkis ◽  
S. Mark Young

ABSTRACT This study investigates the relationship between narcissistic personality characteristics in CEOs of Fortune 500 companies and financial performance measures of earnings-per-share (EPS) and stock valuation. Using panel data from 1992 through 2009, we show that firms with narcissistic CEOs have higher earnings-per-share and share price than those with non-narcissistic CEOs. We examine the mechanism driving the observed results and find that narcissistic CEOs are more likely to increase reported EPS through real and operational activities rather than accrual-based manipulations. The findings suggest that narcissistic personality characteristics of top executives affect financial performance measures through the executive's decisions and influence over the firm's operational activities rather than through accrual and accounting decisions. Data Availability: Data available upon request.


Author(s):  
Jan vom Brocke

This chapter addresses service-oriented information systems from a management perspective. It is evident that running a service-oriented enterprise brings up new challenges for management. Given the technological opportunities, the challenge lies essentially in choosing the right mix of services on the basis of an appropriate architecture. For this purpose, strategic considerations regarding, for example, the company’s flexibility have to be justified by financial performance measures. This is particularly evident as long-term economic consequences result from decisions on the service portfolio. Thus, evidence is required about the fact that these decisions are in alignment with the company’s financial situation. The total costs of ownership (TCO) caused by a particular service-oriented information system, as well as the return on investment (ROI) gained by it, give examples for appropriate financial performance measures. In this chapter, a measurement system is presented that facilitates the assessment of the various financial consequences within a comprehensive framework. The system is grounded in decision theory and capital budgeting, and it is illustrated by its application within practical examples.


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