scholarly journals Corporate Strategies In The Post-Transition Economy: The Case Of Slovenian Companies

2011 ◽  
Vol 27 (1) ◽  
Author(s):  
Matej Lahovnik
Keyword(s):  
Ownership Structure ◽  
Transition Economy ◽  
Positive Influence ◽  
Company Performance ◽  
Growth Strategies ◽  
Corporate Strategies ◽  
Unrelated Diversification ◽  
Diversification Strategies ◽  
Related Diversification ◽  
Complex Forms

<p class="MsoBodyTextIndent" style="margin: 0in 0.5in 0pt; mso-pagination: none; tab-stops: .5in 58.5pt;"><span style="color: black; font-size: 10pt; mso-themecolor: text1; mso-ansi-language: EN-GB;" lang="EN-GB"><span style="font-family: Times New Roman;">This paper argues that unrelated diversification strategies outperform related diversification strategies. <span style="mso-spacerun: yes;">&nbsp;</span>The author identifies three phases of the internationalisation process. <span style="mso-spacerun: yes;">&nbsp;</span>More detailed analyses of the internationalisation process shows that companies are trying to develop more complex forms of international business activities. <span style="mso-spacerun: yes;">&nbsp;</span>The author also identifies four groups of competencies that are the cornerstones of corporate strategies. <span style="mso-spacerun: yes;">&nbsp;</span>This study reveals that 40.6% of companies diversified through external means, 36.2% diversified through internal means, while 23.2% diversified through both internal and external methods. <span style="mso-spacerun: yes;">&nbsp;</span>There appears to be no statistically significant performance differences among companies regarding external and internal growth strategies. <span style="mso-spacerun: yes;">&nbsp;</span>Internal growth and joint ventures are the most important forms of diversification. <span style="mso-spacerun: yes;">&nbsp;</span>These companies also tend to develop various forms of long-term strategic co-operation. <span style="mso-spacerun: yes;">&nbsp;</span>This process can be crucial for developing competitive advantages. <span style="mso-spacerun: yes;">&nbsp;</span>By comparing the performance of companies regarding ownership structure, the author found that companies with international ownership structure performed better.<span style="mso-spacerun: yes;">&nbsp; </span>In other words, foreign ownership had a positive influence on company performance.</span></span></p>

scholarly journals Symmetric Modeling of Diversification Strategy and Organizational Structure on Financial Performance: Evidence from China

Symmetry ◽  
2021 ◽  
Vol 13 (2) ◽  
pp. 196
Author(s):  
Jianwei Cao ◽  
Cisheng Wu ◽  
Stephen Tetteh ◽  
Hui Guang ◽  
Gendi Miao
Keyword(s):  
Organizational Structure ◽  
Financial Performance ◽  
Structure Design ◽  
Symmetric Model ◽  
Moderating Effects ◽  
Diversification Strategy ◽  
Holding Company ◽  
Unrelated Diversification ◽  
Diversification Strategies ◽  
Related Diversification

Diversification is a strategy adopted by many enterprises in the process of expansion. The success of the diversification of an enterprise mainly depends on the choice and implement of strategy; choosing an organizational structure that fits the type of diversification strategy used is fundamental to improving financial performance. Based on the empirical research method, this study establishes a symmetric model of diversification strategy and organizational structure on financial performance and selects data from 613 A-share-listed companies in China, from 2012 to 2016, to test the impacts of unrelated and related diversification strategies on financial performance, as well as the moderating effects of united company, holding company, and multidivisional structures on such relationships. The results show that there is asymmetry between the diversification strategy adopted and financial performance, and a related diversification strategy should be adopted as a priority; the symmetry of an unrelated diversification strategy and holding company structure on financial performance is partially confirmed, and other elements should be adopted, simultaneously, to improve this symmetry; a related diversification strategy and multidivisional structure on financial performance is symmetric. The above findings will provide references for the diversification strategy choice and the organizational structure design of enterprises.

The moderating effect of board size on the relationship between diversification and tourism firm performance

2019 ◽  
Vol 25 (7) ◽  
pp. 1084-1104 ◽  
Author(s):  
Chen Zheng ◽  
Henry Tsai
Keyword(s):  
Firm Performance ◽  
Tourism Industry ◽  
Moderating Effect ◽  
Diversification Strategy ◽  
Board Size ◽  
Unrelated Diversification ◽  
Diversification Strategies ◽  
Related Diversification ◽  
The Relationship

This study examines the effects of diversification strategy and board size on firm performance as well as the moderating effect of board size on the relationship between diversification strategy and firm performance in the Chinese tourism industry from 2008 to 2015. The results show that related diversification positively influenced Chinese tourism firm performance, and unrelated diversification negatively influenced it. Board size was found to negatively moderate the relationship between related diversification and firm performance and to positively moderate the relationship between unrelated diversification and firm performance. In addition, the results imply that small boards are beneficial to Chinese tourism firms when both related and unrelated diversification strategies are implemented.

Corporate Growth Strategies and Performance of Selected Savings and Credit Cooperative Societies in Nairobi City County, Kenya

2020 ◽  
Vol 2 (2) ◽  
pp. 19-30
Author(s):  
Hamida Mwilu ◽  
Reuben Njuguna
Keyword(s):  
Data Collection ◽  
Business Environment ◽  
Primary Data ◽  
Growth Strategies ◽  
Inferential Statistics ◽  
Market Expansion ◽  
Acquisition Strategies ◽  
Corporate Growth ◽  
Diversification Strategies ◽  
And Performance

The dynamic nature of business operating environment has called on business leaders to be strategic in their leadership roles if they are to sustain their competitiveness into the unforeseen future. Growth is important in Sacco’s because it is future oriented establishing ways in which the organizational operations can be aligned to future changes in the business environment to ensure that competitiveness is sustained. The SACCOs in Kenya have experienced problems in the past; some even shutting down therefore there is need for customer growth to be enhanced so as to increase their incomes so as to sustain the business. These SACCOs have to look for leaders and managers who can develop future targets, direct and lead other staffs towards meeting the firm’s objective and gaining a competitive edge. The aim of this study was an assessment of corporate growth strategies and performance in savings and cooperative societies in Kenya, Nairobi County. The study sought to determine the influence of market expansion, diversification strategies and acquisition strategies. The study target population was 41 licensed SACCOs in Nairobi County. The study used primary data to collect information, and the data collection instrument was a questionnaire which was given to the 41 operations managers in the 41 selected SACCOs. The data collection procedure was done by the researcher and drop-and-pick strategy will be applied. The data was coded and keyed in Statistical Package for Social Science (SPSS Version 23.0), and was analyzed using both descriptive and inferential statistics. For descriptive statistics was through mean scores, standard deviations, frequencies and percentages, while the inferential statistics was through regression analysis to establish the relationship between strategic leadership and customer growth. The findings were presented in tables and charts for easy understanding, interpreting, and describing the data. The study established that market expansion, diversification strategies and acquisition strategies as corporate growth strategies had a positive and significant effect on the performance of SACCOs in Nairobi City County. The study concluded that the SACCOs significantly employed market expansion strategies through improved branch network, customer base enhancement, new distribution channels and technological innovation. The study concluded that the SACCOs embraced a hybrid of the main diversification strategies, diverse products and services significantly. It was concluded that to a little extent the selected SACCOs in Nairobi City County have employed acquisition as a corporate growth strategy. The study recommends that the SACCOs should embrace integrate technology in the implementation of corporate growth strategies to enhance efficiency and effectiveness.  Further studies should be undertaken to establish the effect of corporate growth strategies on the performance of other SACCOs in other regions to establish the disparities or similarities among the financial sector players. 

Political embeddedness and multi-layered interaction effects on the performance of private enterprises: lessons from China

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Eli Gimmon ◽  
Ying Teng ◽  
Xiaobin He
Keyword(s):  
Transition Economy ◽  
Economic Transition ◽  
Secondary Data ◽  
Interaction Effects ◽  
Positive Influence ◽  
Business Owners ◽  
Private Enterprises ◽  
Firm Level ◽  
Content Type ◽  
Personal Level

Purpose This study aims to present multi-layered embeddedness and explore the main and interaction effects of political embeddedness on the performance of private enterprises in China. This study tests multi-layered embeddedness through interaction effects between three layers, namely, political, territorial and inter-firm embeddedness. Political embeddedness is related at the personal and the firm levels. Design/methodology/approach The authors used secondary data of four non-panel waves (2002, 2008, 2010 and 2016) of large samples having identical questions based on the Chinese private enterprises’ survey. The accumulated number of business owners’ responses is a total of 10,686. Findings The main effects of each of the layers of embeddedness showed a positive influence on enterprise performance consistently and unchanged over time which fits the Chinese Guanxi regardless of the immense macro-economic transition. However, unexpectedly some interactions showed negative significant effects on performance. Practical implications First, business owners should be aware of the specific contribution to the performance of political embeddedness at both the firm level and the personal level. Second, the pursuit of exercising simultaneously several layers of embeddedness may be detrimental to company performance. This study provides generalizable lessons regarding different embeddedness layers beyond the context of China’s transition economy. Originality/value First, the authors extend political embeddedness to the firm level whilst in previous research this construct had been mostly related to the personal level. Second, building on the resource-based view and redundant resources the authors present the disadvantage of “over-embeddedness” as related to multi-layered embeddedness which has been understudied.

scholarly journals Voluntary Reporting, Sustainable Reporting and Transition Economy

2020 ◽  
Vol 4 (2) ◽  
Author(s):  
Mofijul Hoq Masum ◽  
Ahmed Razman Abdul Latiff ◽  
Mohammad Noor Hisham Osman
Keyword(s):  
United Nations ◽  
Transition Economy ◽  
Sustainability Reporting ◽  
Developing Economy ◽  
Voluntary Reporting ◽  
Corporate Strategies ◽  
Corporate Reporting ◽  
Core Concepts ◽  
The Government ◽  
Sustainability Standards

This concept paper aims at exploring the interrelationship among the corporate voluntary reporting, the corporate sustainable reporting and the transition economy from the literatures and frameworks. At this juncture, transition economy refers the economy especially, the transformation of least developing economy to the developing economy as per the criteria of United Nations. Thus, the context of Bangladesh has been used as a ground for the study. The study explores the affiliation among corporate voluntary reporting, corporate sustainable reporting and transition economy from their respective literature and frameworks. From the literature of the corporate voluntary reporting, various dimensions of corporate disclosures have been considered, while the dimensions of sustainability reporting have been considered as per the consolidated set of global reporting index, published by Global Sustainability Standards Boards. In addition, components of transition economy have been considered on the basis of the guideline of the United Nations Economic and Social Council. The similitudes of these three concepts and their consequences are determined on the basis of the literature and frameworks. It is found that the core concepts of corporate voluntary reporting, corporate sustainable reporting and the transition economy are similar, and they are intermingled to each other. We have found that the dimensions of corporate voluntary reporting are the initiation of sustainability reporting that leads a transition economy to gain its status of being a developing economy. The findings of the study imply that the transition economy like Bangladesh has to put more focus on corporate engagement in transforming its economy to the developing economy. As the developing economy is based on trade rather than aid, the government of the country should design their corporate strategies and policies in such a way that leads the country to have a sustainable development. In addition, the findings may also encourage the corporate people to disclose more information regarding sustainability issues. Moreover, the findings may assist the United Nation to consider and reconsider their criteria of graduating any country from one level of economy to another. Finally, the findings can also open the avenue to the academicians to explore the extent of corporate reporting on transition economy.

scholarly journals Pengaruh Risiko Bisnis, Life Cycle Dan Diversifikasi Terhadap Struktur Modal Serta Hubungannya Dengan Nilai Perusahaan Manufaktur Di Indonesia

2016 ◽  
Vol 9 (1) ◽  
Author(s):  
Septi Diana Sari
Keyword(s):  
Life Cycle ◽  
Capital Structure ◽  
Firm Value ◽  
Order Theory ◽  
Diversification Strategy ◽  
Single Segment ◽  
Unrelated Diversification ◽  
Related Diversification ◽  
Positive Effect ◽  
The Capital Structure

This study aims to examine the factors that affect the capital structure. The task of the financial manager is to determine the amount of capital structure to enhance shareholder value. Since the capital structure associated with firm value , this study also aimed to examine the effect of capital structure on firm value by considering the company's diversification strategy and corporate life cycle stages . By using the data obtained from the OSIRIS period 2009-2012, researchers used multiple regression test and path analysis to test the hypothesis. From the test results stated that only companies which are in the start-up phase which has a significant positive effect on the capital structure , as well as the diversification strategy has an influence on the capital structure of the company's capital structure with a sequence of related diversification > unrelated diversification > single segment. But when regressed diversification strategy with corporate values, only a single segment strategy and related diversification which significantly affect the value of the company, as well as the positive effect of capital structure on firm value. Most of the results of this study can be explained by the signaling effect and the pecking order theory. 

The influence of capital structure on firm profitability in USA and Bangladesh engineering industry

2021 ◽  
pp. 2150029
Author(s):  
Abdelkader Derbali
Keyword(s):  
Capital Structure ◽  
Stock Exchange ◽  
Positive Influence ◽  
Engineering Industry ◽  
Company Performance ◽  
Return On Assets ◽  
Return On Equity ◽  
Negative Effect ◽  
Real Picture ◽  
The Impact

The aim of this paper is not only to determine and compare the nature of capital structure but also its effect on company performance of engineering industry of USA and Bangladesh. We utilize a panel data methodology based on a sample of 34 listed engineering companies of Bangladesh on Dhaka Stock Exchange (DSE) and a mixture of 34 (small, medium and large) engineering companies listed in NASDAQ in USA during the period of study from 2012 to 2019. Our empirical results indicate that the capital structure of engineering industry of USA and that of Bangladesh is different. Also, we demonstrate that capital structure has negative effect on company profitability of engineering industry of USA. Capital structure presents a negative effect on Earning per Share and Return on Assets (ROA) and positive influence on Return on Equity (ROE) and Tobin’s Q of engineering industry of Bangladesh. We conclude that the impact of capital structure on company’s profitability by only one sector and then compare the findings to know the real picture of the link. Investors, auditors, analysts and practitioners should consider many factors to examine the banking performance. Our results from this study may relate to Asian countries with similarities in engineering industry to that in Bangladesh.

Corporate Governance, State Ownership and Firm Performance: An Empirical Study of State-Owned Enterprises in Indonesia

2018 ◽  
Vol 3 (1) ◽  
pp. 26-32
Author(s):  
Chermian Eforis
Keyword(s):  
Corporate Governance ◽  
Stock Exchange ◽  
Agency Cost ◽  
Positive Influence ◽  
Jel Classification ◽  
State Ownership ◽  
Company Performance ◽  
Return On Assets ◽  
Good Corporate Governance ◽  
Negative Effect

Objective - The purpose of this research is to determine the effect of good corporate governance (GCG) on Indonesia's SOEs and the influence of state ownership on company performance. Methodology/Technique - This study examines State Owned Enterprises in Indonesia that were listed on the Indonesia Stock Exchange between 2011 and 2015. Findings - The empirical results show that GCG and state ownership both have a positive influence on the company's financial performance (in this case, Return On Assets). However, the percentage of state ownership has a negative effect on the relationship between Good Corporate Governance and Return On Assets. Novelty - One agency cost is monitoring expenditure by the principal. Privatization is one way to improve the performance of SOEs. Privatization is believed to improve the performance of SOEs, as a result of increased supervision of the performance of SOEs in Indonesia. Type of Paper: Empirical Keywords: State Owned Enterprises; Good Corporate Governance; State Ownership; Return On Assets; Indonesia. JEL Classification: G32, H70, G34.

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