The Relationship Between Proactive Management of Core Competencies and Business Performance

2013 ◽  
Vol 12 (02) ◽  
pp. 1350016 ◽  
Author(s):  
Lidia Garcia-Zambrano ◽  
Arturo Rodriguez-Castellanos ◽  
Jose Domingo García-Merino
Keyword(s):  
Financial Reporting ◽  
Business Performance ◽  
Basque Country ◽  
Core Competencies ◽  
Essential Elements ◽  
Intangible Resources ◽  
Proactive Management ◽  
Tangible Assets ◽  
Study Results ◽  
The Relationship

Intangible resources drive economic growth, and are considered the fundamental source of business value. Intangibles have become key factors in generating competitive advantages, despite the fact that traditional financial reporting continues to focus on tangible assets. This is primarily due to the fact that the majority of intangible resources are invisible and considered a current expense on financial statements. Top level management on the other hand may be discouraged from investing in intangible resources, even though numerous studies link investments in R&D, advertising, and training, to the performance of the company. Studies also suggested that core competencies, as a form of intangible human capital, are critical competitive factors and essential elements of corporate competitive advantage. Despite that, few studies analyse the relationship between investments in core competencies and corporate performance. The main objective of this study is to attempt to fill the gap in this area of the current literature and test the extent to which investments in core competences, translates into direct improved organisational performance. The field study was conducted by making telephone calls to the financial managers of different Basque Country companies. Their responses and the financial performance of their companies was analysed and reported in this study. Results from the study show that firms with managers whom affirm their investment in intangible resources have better overall growth and sustained economic development.

scholarly journals The relationship between a market orientation and financial performance in South African organisations

2000 ◽  
Vol 31 (2) ◽  
pp. 84-90 ◽  
Author(s):  
S. S. Loubser
Keyword(s):  
Market Orientation ◽  
South African ◽  
Business Performance ◽  
Core Competencies ◽  
Business Leaders ◽  
Business Culture ◽  
Business Excellence ◽  
Organisational Dynamics ◽  
The Relationship ◽  
Business Philosophy

Organisations are in constant flux and with powerful universal trends such as globalisation, technological discontinuity, deregulation and new competencies within a continuously changing environment, both business leaders and academics are searching for new insights into organisational dynamics. In recent years more and more academics have suggested that a market orientation should be considered as a business philosophy and/or business behaviour that will lead to better business performance. However, not much research has been done on this organisational phenomenon and it is not well understood. Market orientation has been defined in this study as the business culture that is focused on creating mutually rewarding relationships between customers and the organisation based on a foundation where (I) the interests of all stakeholders are actively pursued: (2) competitive advantage is based on the organisation's ability to learn from the market itself, and to mobilise core competencies in response: (3) a set of beliefs exists that puts the customer's interests first: and (4) processes exist that support this belief. This study differs from previous empirical research on market orientation in that it takes a systemic view of market orientation, rather than a cause-effect view. It considered 449 unlisted and 51 listed organisations, and found that a market orientation leads to better financial results. Also, market orientation is a necessary, but maybe not sufficient, condition for business excellence, and further research needs to be done in this regard.

scholarly journals Intangible assets and business performance in Latin America

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Fernanda Cristina Lopes ◽  
Luciana Carvalho
Keyword(s):  
Latin America ◽  
Latin American ◽  
Business Performance ◽  
Intangible Assets ◽  
Business World ◽  
Content Type ◽  
Intangible Resources ◽  
New Knowledge ◽  
The Relationship ◽  
Latin American Countries

Purpose The intangible assets of a company have been presented by national and international surveys as a resource to influence the creation of value and the increase in organizational performance. In view of this, this study aims to analyze the relationship between intangibility and the performance of companies in Latin America. Design/methodology/approach For this purpose, multiple regression with panel data was used and three perspectives for measuring intangible resources were defined: representativeness of the intangible asset, accounting measure for measuring the intangible, degree of intangibility and Tobin’ Q, the latter two representing economic and financial measures to determine intangibility. The study covered the period from 2011 to 2017 with a sample of 1,236 publicly traded companies located in some Latin American countries, namely, Argentina, Brazil, Chile, Colombia, Mexico and Peru. Findings The results demonstrated the existence of a significant and positive relationship between the variables of intangibility, degree of intangibility and Tobin’s Q, and the performance variables, return on assets, operating margin and asset turnover, reinforcing the study hypothesis that the greater the investment in intangible resource, the greater the company’s performance. Research limitations/implications The limitations of this study involve the lack of complete information about intangible resources in the financial statements of some companies and some countries, making it hard to analyze the proposed relationship more broadly and accurately. Another limitation involves the causal relationship that may have existed between the regressors of the models defined in the study and their error, thus generating an endogeneity problem in the proposed models. It is recommended for future research to use specific methods to mitigate possible problems of endogeneity in regressions. Practical implications Mainly the possibility of deepening the relationship between intangibility and business performance, thus obtaining new knowledge through the reflexes of this relationship on companies in Latin American countries, finding more consistent results. Social implications The study contributes to the decision-making process in the business world by informing the primary users of accounting information such as investors, administrators, accountants, regulators and creditors. Originality/value This research contributes by addressing a theme whose studies present many gaps, making it possible to deepen the relationship between intangibility and business performance and gain new knowledge through the reflexes of this relationship on companies in Latin American countries.

scholarly journals Employee Voice, Employee Engagement and Business Performance: Understanding the links in a Mediated Model

2021 ◽  
Vol 3 (3) ◽  
pp. 10-19
Author(s):  
Kabiru Maitama Kura ◽  
Mohamed Alkashami
Keyword(s):  
Employee Engagement ◽  
Structural Equation ◽  
Business Performance ◽  
Organizational Outcomes ◽  
Theory And Practice ◽  
Employee Voice ◽  
Equation Modeling ◽  
Study Results ◽  
High Engagement ◽  
The Relationship

Employee voice which refers to the collective bargaining of employees in an organization, is gaining much attention and importance. Studies are linking the role and relationship between employee voice with many important individual and organizational outcomes. To understand its current state and influence, the present study tested employee voice and its influence on employee engagement and business performance. Following the relationship hypothesized model, the current study applied structural equation modeling using Smart PLS 3 and found a significant relationship between employee voice and business performance. In addition, the study also found significant influence of employee voice on employee engagement and business performance. The study also found that employee engagement was mediating the relationship between employee voice and business performance. The results confirm that employees who have the freedom and opportunity to share their ideas, opinions, and input in decision-making are likely to show high engagement, which contributes to increasing business performance. The study results offer important findings based on which implications are drawn for theory and practice for businesses aspiring to increase performance.

Social Innovation, Environmental Innovation, and Their Effect on Competitive Advantage and Firm Performance

2012 ◽  
pp. 89-104
Author(s):  
Javier Amores Salvadó ◽  
José Emilio Navas López ◽  
Gregorio Martín de Castro
Keyword(s):  
Firm Performance ◽  
Competitive Advantage ◽  
Business Performance ◽  
Social Innovation ◽  
Core Competencies ◽  
Environmental Innovation ◽  
Innovative Strategies ◽  
And Performance ◽  
Indirect Relationship ◽  
The Relationship

The proposal below provides a special emphasis on the relationship between businesses and natural environment. It is argued that the inclusion of environmental criteria to business activities promotes the creation of new core competencies, offering a creative and innovative perspective to the organization that can lead to the achievement of sustainable competitive advantages. More specifically, we analyze both the existence of a direct relationship between Environmental Innovation and Firm Performance and the existence of an indirect relationship between the two, which highlights the mediating role of the kind of competitive advantage generated. It also provides an innovative approach, as it explains the Environmental Innovation from the literature on Social Innovation, considering Environmental Innovation as an expression of Social Innovation through the incorporation of ethical arguments to products, processes and organizational modes of the company. The main contributions of this work can be summarized as follows: (1) It explains the nature of Environmental Innovation through the Social Innovation literature, which allows consideration of some key aspects of administrative and technological innovations that have not been taken into account the academic literature. (2) The different types of environmental innovations are analyzed as a necessary step to understand the strategic options in the environmental field. (3) Environmental Innovation is related to business performance. The practical implications of the relationship between environmental innovation and performance are of great importance, since it directly influence the type of environmental strategy chosen, allowing the company to choose from innovative strategies (based on pollution prevention) or more conservative strategies (emissions control).

scholarly journals Inwestycje w majątek trwały a wyniki ekonomiczno-finansowe spółdzielni mleczarskich

2014 ◽  
pp. 97-110
Author(s):  
Michał Pietrzak
Keyword(s):  
Empirical Evidence ◽  
Economic Performance ◽  
Business Performance ◽  
Dairy Industry ◽  
Intangible Resources ◽  
Knowledge Based ◽  
Knowledge Based Economy ◽  
Tangible Assets ◽  
Fixed Assets ◽  
Dairy Cooperatives

Even in the knowledge-based economy era tangible assets still matters. It is because the value of intangible assets steams from the combined bundle of both tangible and intangible resources. Therefore it is important issue to assess how investments in fixed assets are connected with business performance. This problem seems to be particularly interesting in the case of Polish dairy industry. It is important part of European and Polish agribusiness system. During transition in Poland a lot of investments in dairy industry were already done. There is substantial overcapacity noticed in this sector. However empirical evidence done on 18 Polish dairy cooperatives shows the positive correlation between modernity of fixed assets and intensity of developing them and economic performance of dairies.

The effect of knowledge management on environmental innovation

2015 ◽  
Vol 10 (4) ◽  
pp. 413-431 ◽  
Author(s):  
Tatjana Stanovcic ◽  
Sanja Pekovic ◽  
Amira Bouziri
Keyword(s):  
Knowledge Management ◽  
Business Performance ◽  
Probit Model ◽  
Performance Outcomes ◽  
Environmental Innovation ◽  
Community Innovation Survey ◽  
Substantial Impact ◽  
Content Type ◽  
Study Results ◽  
The Relationship

Purpose – The purpose of this paper is to analyze whether knowledge management (KM) practices trigger environmental innovation. Additionally, distinguishing between two types of KM practices, the authors want to examine whether different types of KM practices have the same role for environmental innovation. Design/methodology/approach – Employing two French surveys, namely, the Community Innovation Survey (2002-2004 and 2006-2008) and Annual Firm Survey (EAE, 2000), the authors analyze empirically the relationship between KM practices and environmental innovation. The theoretical relationship the authors propose is tested using bivariate probit model on 1,117 French manufacturing firms. Findings – The econometric estimations show that the investment in KM practices trigger environmental innovation. Furthermore, the authors distinguish between two types of KM practices: a written policy of KM and a culture intended to promote KM sharing. The main results are also confirmed for both types of KM practices. Moreover, based on coefficients and significance levels, the empirical results indicate that a culture intended to promote KM sharing has a more substantial impact on green innovation than a written policy of KM. Practical implications – KM can boost environmental innovation, which also enhances firm business performance. Therefore, managers should foster investment in KM capabilities. They need to create working atmosphere that generates, stores, transfers and applies knowledge in order to improve a firm’s green innovativeness. Additionally, the study results show that managers can choose among different KM practices in order to enhance environmental innovation. However, managers should be aware that not all KM practices provide the full advantage in terms of performance improvement. They should know that different KM practices have differential impacts on different performance outcomes. In this sense, managers should implement KM practices that fit their performance strategy. Originality/value – The relationship between KM and innovation performance has received increasing attention from researchers during the past years. However, even though scholars underline the importance of environmental innovation, the relationship between KM and environmental innovation remains significantly under-researched. The findings suggest that KM should be considered as an important source for environmental innovation improvement.

scholarly journals Una gestión activa de los intangibles empresariales y su incidencia en los resultados financieros de un modo sostenible

2020 ◽  
Vol 32 (3) ◽  
pp. 1117
Author(s):  
Lidia García-Zambrano ◽  
Arturo Rodríguez-Castellanos ◽  
José Domingo García-Merino
Keyword(s):  
Competitive Advantage ◽  
Field Study ◽  
Basque Country ◽  
Core Competencies ◽  
The Core ◽  
Intangible Resources ◽  
Resources And Capabilities ◽  
Telephone Calls ◽  
The Difference

It is widely accepted that the allocation of intangible resources and capabilities has become the difference between firms. However, only a few of them allow to gain a competitive advantage, so-called core competencies. Most of the studies about to the intangibles and firms performance consider only the stock held by the company, and they do not considered intangibles management. Therefore, our objective is to test whether the core competencies management translates into improved sustainably performance, measured through ROA. To this end, a field study was performed, by making telephone calls to Basque Country companies’ financial managers, and favorable evidence was obtained.

scholarly journals IMPACT OF ADOPTION OF FINANCIAL STANDARDS AND INNOVATIONS ON SME BUSINESS PERFORMANCE: THE ROLE OF COMPETITIVE ADVANTAGE AS A MEDIATION

2021 ◽  
Vol 11 (1) ◽  
pp. 80-93
Author(s):  
Ady Inrawan ◽  
Hery Pandapotan Silitonga ◽  
Fitria Halim ◽  
Acai Sudirman ◽  
Darwin Lie
Keyword(s):  
Data Analysis ◽  
Competitive Advantage ◽  
Financial Reporting ◽  
Business Performance ◽  
Sampling Method ◽  
Partial Least Square ◽  
Reporting Standards ◽  
Financial Reporting Standards ◽  
The Relationship

This study aims to determine the role of competitive advantage in mediating the relationship between the adoption of financial reporting standards and innovation on the business performance of SMEs in Pematangsiantar City. This study uses a research design with a quantitative approach to causality. Data collection techniques using observation, interviews, questionnaires and documentation. The sampling method used in this study is the convenience sampling method. The data analysis method used is Partial Least Square (PLS).The data analysis test tool uses the statistical software Smartpls 3.0. The results showed that innovation and competitive advantage had a significant effect on business performance, the adoption of financial reporting standards on business performance obtained an insignificant impact. Whereasthe effect of the adoption of financial reporting standards on competitive advantage obtained significant results. Furthermore, the effect of innovation on competitive advantage obtained insignificant results. Then competitive advantage can mediate the relationship between the adoption of financial reporting standards on business performance. Furthermore, the competitive advantage variable is not able to mediate the relationship between innovation and business performance.

Moderating Role of Gender in the Relationship between Cognitive Errors and Anxiety among Adolescents

2020 ◽  
Vol 4 (1) ◽  
pp. 86-102
Author(s):  
Tasnim Rehna ◽  
Rubina Hanif ◽  
Muhammad Aqeel
Keyword(s):  
Mental Health Problems ◽  
Adolescent Psychopathology ◽  
Future Research ◽  
Cognitive Errors ◽  
Adolescent Anxiety ◽  
Study Results ◽  
The Status ◽  
Manifest Anxiety ◽  
The Relationship

Background: Widespread social paradigms on which the status variances are grounded in any society, gender plays pivotal role in manifestation of mental health problems (Rutter, 2007). A hefty volume of research has addressed the issue in adults nonetheless, little is vividly known about the role of gender in adolescent psychopathology. Sample: A sample of 240 adolescents (125 boys, 115 girls) aging 12-18 years was amassed from various secondary schools of Islamabad with the approval of the Federal Directorate of Education (FDE), relevant authorities of the schools and the adolescents themselves. Instruments: Taylor Manifest Anxiety Scale (Taylor & Spence, 1953) and Children’s Negative Cognitive Errors Questionnaire (CNCEQ) by Leitenberg et al., (1986) were applied in present study. Results: Multiple regression analysis revealed that cognitive errors jointly accounted for 78% of variance in predicting anxiety among adolescents. Findings also exhibited that gender significantly moderated the relationship between cognitive errors and adolescent anxiety. Implications of the findings are discoursed for future research and clinical practice.

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