An empirical study of the influence of business strategy, uncertainty and market position on financial measures using the SEM approach

Using financial and non-financial measures, the Balanced Scorecard (BSC) approach evaluates different aspects of firms’ performance: financial, customer, learning and growth, and internal business processes. Resource flexibility and availability of financial resources are basically highlighted as separate antecedents of company’s performance. Grounded on resource based view, the role of financial resources on business strategy has been addressed numerously in previous studies. However, there is limited study to evaluate the role of financial resources on relationship between business strategy and BSC performance measures. Especially there is no study addressing this issue according to the moderating role of financial resources among small and medium enterprises (SMEs). It is worth mentioning that such relationships and models can be more highlighted in a developing countries since financial resources has been debated to be weak in theses context. Grounded in contingency theory, an evaluation of the moderating role that financial resources plays in the relationship between SMEs’ business strategy and balanced scorecard performance measures in SMEs points to the value of providing enough resources for SMEs. External fund providers such as banks and loan providers can help SMEs in this regard since firms could pass the way from business strategy to superior BSC performance measures more successfully.

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IDENTIFICATION OF RELATION BETWEEN BUSINESS MODEL AND BUSINESS STRATEGY AND MEASUREMENT OF ITS TIGHTNESS

Problems of Management in the 21st Century ◽

10.33225/pmc/17.12.54 ◽

2017 ◽

Vol 12 (1) ◽

pp. 54-68

Author(s):

Štefan Slávik ◽

Robert Hanák

Keyword(s):

Business Model ◽

Business Strategy ◽

Quantitative Methods ◽

Company Performance ◽

Market Position ◽

Potential Source ◽

Strategy Model ◽

Real Relation ◽

The Relationship ◽

A Company

Business model and business strategy fundamentally characterize and predetermine the essence of a company and its action. Research has already brought a fairly extensive knowledge of the model and strategy too. There is also emerging evidence that describes the relationship between model and strategy, but it is not verified by empirical research. The research confirmed the existence of a real relation between model and strategy using quantitative methods. Business model impacts significantly on the market position of the company, has got implications for competitive advantage, originality/uniqueness of the company action and of its passivity/activity. The acquired knowledge can be used to purposeful alignment of model and strategy. A higher degree of intensity of this relationship improves the market position of the company and may be a potential source of higher company performance. Keywords: business model, business strategy, model-strategy-relation, market position.

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Determinants Of Integrated Performance Measurement Systems Usage: An Empirical Study

Journal of Applied Business Research (JABR) ◽

10.19030/jabr.v26i5.319 ◽

2010 ◽

Vol 26 (5) ◽

Cited By ~ 3

Author(s):

Mojca Marc ◽

Darja Peljhan ◽

Nina Ponikvar ◽

Aleksandra Sobota ◽

Metka Tekavcic

Keyword(s):

Performance Measurement ◽

Performance Management ◽

Contextual Factors ◽

Company Size ◽

Market Position ◽

Management Tools ◽

Financial Measures ◽

Measurement Systems ◽

Performance Measurement Systems ◽

Integrated Performance

Performance management literature has been advocating the balanced use of non-financial measures alongside traditional financial measures, possibly within integrated performance measurement systems, since the early 1990’s. The purpose of this paper is to explore how contextual factors (such as company size, industry, and market position), business objectives and knowledge about contemporary management tools influence the decision to implement Balanced Scorecard or similar integrated performance management systems. We tested our research propositions regarding the influence of these factors by using survey data and a logistic regression model. The study is based on a survey conducted in 2008 on a sample of 323 Slovenian companies. The sample consists of large, medium, and small firms from different industrial sectors, including manufacturing and service. Overall, our results confirm contextual factors, such as company size and industry, and knowledge about management tools as most important determinants of integrated performance measurement systems usage. Although market position and business objectives also receive some support for their influence, the results are generally weaker and more ambiguous.

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