scholarly journals Using Importance-Performance Matrix Analysis to Evaluate the Financial Performance of American Banks During the Financial Crisis

SAGE Open ◽  
2020 ◽  
Vol 10 (1) ◽  
pp. 215824402090207
Author(s):  
Mohamed M. Khalifa Tailab

This research applies a technique that identifies areas of improvement that can be addressed by managerial decisions or policy activities. It extends the application of partial least squares structural equation modeling (PLS-SEM) using an importance-performance map analysis (IPMA). The IPMA determines priority factors that should receive management’s attention. The PLS path model was tested by comparing 140 failed U.S. banks with the same number of nonfailed banks from 2006 to 2008. This model assembles 15 indicators with four predecessor constructs (i.e., profitability of 2006, profitability of 2007, risk of 2006, and risk of 2007) and one final target construct (i.e., profitability of 2008). Profitability and risk of 2007 mediate the path of profitability and risk of 2006 and profitability of 2008. The IPMA indicated that failed banks were predisposed to decreasing financial performance in 2008 because of their poor performance in 2006 and 2007. Conversely, nonfailed banks were more likely to experience increasing financial performance in 2008 because of their positive performance in 2006 and 2007. This study indicates that managers who use IPMA to prioritize their financial decisions will obtain useful conceptual insights and are unlikely to be misled. Although IPMA can be conducted on the indicator level as well, this article limits its analysis by focusing on the construct level only. The use of IPMA is ubiquitous in end-user surveys, but its application to banking is still in its embryonic state. For originality, this work prioritizes the application of IPMA using secondary data collected from financial statements to assess the performance of American banks during the crisis.

2021 ◽  
Vol 21 (3) ◽  
pp. 1087-1100
Author(s):  
Sook-Fern Yeo ◽  
Cheng-Ling Tan ◽  
Kah-Boon Lim ◽  
Elaine Lam

Nowadays, grooming is considered an essential part of life to maintaining and up keeping a healthy and hygienic outlook which plays a key role in social bonding. As it turns out, the desire to looking good has spawned a wide range of beauty products causing the beauty industry to thrive and grow at a rapid rate. In other words the Malaysian Beauty Salon Markets have become big business today, driven by a rising population, disposable incomes, urbanisation and increasing influence of western culture to look good and to feel good. The beauty market is valued at USD 119.24 million and is expected to grow at a CAGR of 5.23% in the next five years, to USD 153.86 million in 2015. As a result of a highly fragmented in this market, the need for differentiation from other salons is impendency for this industry. This research aims to study the different attributes of customer's concerns and reveals the final factors that generate customer intention to visit facial spa treatment centres in Malaysia. The effort is devoted to identifying those dimensions of services provided in facial spa treatment centres for instance, atmospheric, service quality, price, brand image and location which aid to build up a greater relationship with their patrons. Data is collected via questionnaires distribution from the target population of the female with the age range from 16-63 years old. A sample size of 308 was studied and data analysis involving Structural Equation Modeling SmartPLS version 3.0 software were used. Service quality reached the conclusion as the strongest predictor in influencing customer intention to visit facial spa treatment centres, followed by the factors of price and brand image. Further to that, an Importance-Performance matrix analysis was conducted in order to identify factors that need to be given priority for spa owners in Malaysia. These findings made contributions beyond the high context services for instance beauty salons, massage salons, hair salons, nail salons, financial consulting and medical care with the matching services characteristics.


2021 ◽  
Vol 7 (1) ◽  
pp. 10-13
Author(s):  
Mei Peng Low ◽  
Hengky Latan ◽  
Charbel J Chiappetta Jabbour

Digital technologies advancement has immersed in many aspects of our lives, be it an individual or a business. The fast moving technologies has fostered the growth of digital economy. Businesses which fail to adopt will eventually lose their competitive advantage. The pressing phenomena motivates the study of digitalization adoption among small and medium enterprises (SMEs), which account for the majority of the businesses worldwide. Technology-Organization-Environment (TOE) framework was utilized to guide this study. The plausible difference between service based and non-service based industries was also examined. Quantitative approach via purposive sampling was performed to collect data from the SMEs. The data was analyzed using the concept of Hierarchical Component Model (HCM) for TOE constructs and Multi-Group Analysis (MGA) under the purview of Partial Least Square Structural Equation Modeling (PLS-SEM). For more insightful findings, Importance Performance Matrix Analysis (IPMA) was conducted. The findings informed that Technology and Organization record significant positive influence on Digitalization Adoption among SMEs while there is heterogeneity between service based and non-service based industries.


2014 ◽  
Vol 5 (1) ◽  
pp. 166
Author(s):  
Iskandar Putong

This study analyzed the effect of fundamental information of a company such as company financial performance in the form of financial ratios, namely the coefficient of DAR, DER, ROA, ROE, OPM and NPM of the company's stock price in general, either in closing stock price (Pclose), PBV or PER. The object of research is the insurance companies listed on Indonesia stock exchanges until the analysis was conducted in 2013. The number of samples used is equal to the total population of listed companies until 2013, which publish their financial report, as many as nine companies. The type of data used are secondary data in a form of panel (pooled data). The period of data between 2008 and 2012. The analytical tool used is multiple regression and multivariate Formative Structural Equation Modeling is often called Canonical Correlation (CanCorr). By using Level Of Confident of between 90% to 99%, the results of multiple regression analysis (assuming simultaneous) showed that together all of these variables affect the financial performance of the PER and PBV, but had no effect on Pclose. By using Canonical Correlation analysis, the results showed statistically significant canonical variables of fundamental financial information firm canonical variables significantly influence to the financial performance of the company.


2018 ◽  
Vol III (III) ◽  
pp. 175-192
Author(s):  
Mohsin Bashir ◽  
Muhammad Waseem Bari ◽  
Syed Hassan Raza

This paper empirically inquire the relation of social capital dimensions (relational social capital, structural social capital, and cognitive social capital), organization innovation capabilities, and the performance of information technology (IT) as a mediator in the said relationships. A total of 263 workers of different management cadres from software SMEs (Zhongguancun Software Park, Beijing, China) were randomly selected. However, 143 respondents submitted the complete response. Thus, the response rate was 54%. For the empirical investigation, the present paper uses Partial Least Squares, Structural Equation Modeling (PLS-SEM) and Importance-Performance Matrix Analysis (IPMA) techniques to analyze the survey data. The direct and indirect relationship between dimensions of social capital and organizational innovation capabilities is significant. However, IT generates a partial mediation effect. IPMA highlights the importance of relational and structural social capital to innovation capabilities, however, IT is indicated as the key driver that trigger the effect of social capital on organization innovation capabilities. Future studies guidelines and limitations are explained at the end of this paper.


Author(s):  
Sabri Ahmad ◽  
Wan Mohamad Asyraf Bin Wan Afthanorhan

The Important-Performance Matrix Analysis (IPMA) is widely used in analytical technique that yields prescription for the management of customer satisfaction. IPA is a two-dimensional grid based on importance and performance of customer satisfaction. Yet, this paper intend to use the volunteers as a research subject to identify to what extent the strength of the relationship between exogenous and endogenous variable that can be derived. As pedagogical theoretical and past empirical studies, attribute level of performance and importance is relevance and significant. These finding reveals the capabilities of IPA towards a volunteerism program. Using Partial Least Square Structural Equation Modeling with SmartPLS 2.0, the asymmetric relationship importance and performance is provided. Futhermore, it shown that benefits factor is a major importance and performance for establishing Motivation.


2019 ◽  
Vol 15 (2) ◽  
pp. 140-168
Author(s):  
Yosep Fangohoi ◽  
Tigor Sitorus

In corporate governance, the role of independent commissioners and audit committees is very important in ensuring that all operational and strategic activities are going well because they greatly affect the financial performance of the entity. This study aims to empirically analyze the influence of independent commissioners and audit committees on financial performance and whether the existence of strategic information disclosure through the internet (IRSI) is able to mediate independent commissioners and audit committees on financial performance to be better or vice versa in banking companies. The population in this study are companies listed on the Indonesia Stock Exchange in 2014-2016. The data obtained is secondary data. Data analysis using WarpPLS 3.0 program with statistical models, which is Structural Equation Modeling Analysis (SEM). The results of the study indicate that independent commissioner variable has no significant effect on financial performance, but on the contrary the audit committee variable has a significant impact on financial performance. In addition, independent commissioner variable has no significant effect on the internet reporting of strategic information (IRSI), but audit committee variable has a significant effect on IRSI. The IRSI variable has a significant influence on financial performance. The conclusions of mediation show that IRSI was able to mediate the audit committee on financial performance but IRSI was unable to mediate independent commissioner variables on financial performance.


2020 ◽  
Vol 3 (1) ◽  
pp. 44-57
Author(s):  
Umar Gunu Suleiman ◽  
Umar Gunu

Corporate diversification is a center of research in strategic management and finance. Many firms are experiencing a decline in their traditional activities' dues to environmental challenges, including competition, inadequate infrastructural facilities, and economic instability. The study examines the effect of income diversification on the financial performance of quoted manufacturing firms in Nigeria. Specifically, it determines the impact of product income segment diversification and non-product income segment diversification on quoted manufacturing firms' financial performance in Nigerian. The study adopted an ex-post facto research design using secondary data of 42 firms from the 63 quoted manufacturing firms in Nigeria for 11 years (2007-2017) period. Structural equation modeling (SEM) is utilized for data analysis. The study found that both product income segment diversification and non-product income segment diversification significantly affect the financial performance (ROA and ROCE variables) of quoted manufacturing firms in Nigeria. The study concluded that quoted manufacturing firms' financial performance in Nigeria is significantly affected by product income segment diversification and non-product income diversification. The study recommended that manufacturing firms should strategically diversified to increase their income generation in both the product segment and non-product segment to improve their financial performance.


2018 ◽  
Vol 6 (2) ◽  
pp. 199
Author(s):  
Asep Saifuddin Chalim

This study discussed employee turnover as one of the crucial problems faced by every organization. This study sought to analyze the determinants of turnover intention, such as job insecurity, organizational commitment, and job satisfaction. The objects of this study were newcomer lecturers of private Islamic universities in East Java Province, Indonesia. To analyze the relationship among independent variables and dependent variable; this study employed a correlation path model. To build the structural formulation of the correlation path model, this study used the variance-based Structural Equation Modeling (SEM) as a Partial Least Square (PLS) analysis. The study found that job insecurity influenced job satisfaction and organizational commitment. Moreover, job satisfaction and organizational commitment had positive impacts on the turnover intention. In contrast, job insecurity did not have a direct significant impact on the turnover intention, but it had indirect effect that influences job satisfaction and organizational commitment.


2018 ◽  
Vol 5 (2) ◽  
pp. 37-49
Author(s):  
Wahyu Yulianto

The study purpose is to analyse the impact of training, competence, motivation and leadership towards performance either directly or through job satisfaction as a mediator variable. As many as 55 staff are considered as respondents in this research, and census method is used as the sampling method. Primary data in this study were collected through questionnaires and analyzed using Likert Scale. Secondary data are obtained from the organization structure Sukamandi Apparatus Training Centre (BDA), performance appraisal, staff attendance, information system and personnel management. Structural Equation Modeling Analisis of Moment Structures (SEM-AMOS) is used to process and analyze data. This study shows staff with high education, competence and leadership have a significant effect on performance, While the job satisfaction is significant in mediating the influence of training, competence and leadership on performance. Next on the employee with low education, training, competence, motivation and leadership have a significant influence on performance, while job satisfaction is significant in mediating the effect of competence and leadership on staff performance.   Keywords:  training, competence, motivation, leadership, job satisfaction, performance


2021 ◽  
Vol 13 (11) ◽  
pp. 6069
Author(s):  
Hong-Long Chen

Many studies advance the contemporary technologies of Industry 4.0. However, relatively little is known about how Industry 4.0 affects corporate financial performance. Using a survey, bootstrap sampling, and structural-equation modeling, this study evaluates the moderated mediation effects of Industry 4.0 maturity on financial performance. The results show that Industry 4.0 maturity significantly affects internal business process performance (IBPP), which influences customer performance through the mediating effect of supply chain performance (SCP), and IBPP and SCP affect financial performance fully through the mediating effect of customer performance. The results also show that Industry 4.0 maturity moderates the positive relationship between customer performance and financial performance. Customer performance and IBPP have the largest direct and total effects on financial performance in the context of Industry 4.0 implementation, respectively. The results indicate that Industry 4.0 magnifies the potential returns to companies mainly through IBPP, SCP, and customer performance. This study offers an enhanced understanding of the financial implications of Industry 4.0 implementation and provides insights into the factors through which Industry 4.0 maturity influences financial performance.


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