scholarly journals Moderating effect of business environment to working capital and profitability in Indonesia

2020 ◽  
Vol 66 (2) ◽  
Author(s):  
Yuliani Yuliani ◽  
Suhartini Karim ◽  
Rasyid Hs Umrie ◽  
Samadi W. Bakar ◽  
Robiyanto Robiyanto
Keyword(s):  
Business Environment ◽  
Moderating Effect ◽  
Working Capital

scholarly journals Moderating Effect Of Organizational Factors Between Competitive Intelligence Practices And Performance Of Firms Listed On The Nairobi Securities Exchange, Kenya

2016 ◽  
Vol 12 (22) ◽  
pp. 213
Author(s):  
Paul Waithaka
Keyword(s):  
Organizational Factors ◽  
Business Environment ◽  
Moderating Effect ◽  
Competitive Intelligence ◽  
Financial Measures ◽  
And Performance ◽  
General Business ◽  
The Relationship ◽  
Competitive Forces ◽  
Number Of Firms

Performance is critical for every listed firm, as it enhances shareholder’s value and capability to generate earnings from invested capital. Some of the firms listed on the Nairobi Securities Exchange (NSE) have been performing poorly as indicated by the rising number of firms issuing profit warnings. The competitive business environment is continuously working to drive down the rate of return on invested capital. To counter these competitive forces, firms have resorted to gathering information at their disposal and converting it into competitive intelligence through analysis and human judgment. Competitive intelligence can be viewed both as a process and a product. As a process, it is the set of legal and ethical methods for collecting, developing, analyzing and disseminating actionable information pertaining to competitors, suppliers, customers, the organization itself and business environment that can affect a company’s plans, decisions and operations. Competitive intelligence as a product is information about the present and future behavior of competitors, suppliers, customers, technologies, government, market and the general business environment. This study sought to determine the moderating effect of organizational factors between competitive intelligence practices and performance of firms listed on the NSE. Firm performance was evaluated using both financial and non-financial measures. The findings indicate that organizational factors specifically organizational culture, organizational structure and managerial attitudes toward competitive intelligence were found to moderate in the relationship between the competitive intelligence practices and performance of firms listed on the NSE, Kenya.

scholarly journals Entry Mode Strategy and Firm Performance in Emerging Economy: Moderating Role of Organisational Structure and Environmental Turbulence

2021 ◽  
Author(s):  
Abiodun Babatunde Onamusi
Keyword(s):  
Firm Performance ◽  
Organizational Structure ◽  
Entry Mode ◽  
Business Environment ◽  
Moderating Effect ◽  
Environmental Turbulence ◽  
Organisational Structure ◽  
Axiomatic Theory ◽  
Lagos State ◽  
Strategy Performance

Research question: This study assessed the combined moderating effect of organizational structure and environmental turbulence on entry mode strategy - performance link focusing on baby care industry in Lagos State, Nigeria. Motivation: The manufacturers of baby care products in Nigeria have struggled to understand the complexities of entry mode strategy and how to use firm-specific capabilities to contain the threats from new entrants given the idiosyncrasies of the business environment in Nigeria. Also, considering the fast changing business environment and the need for firms to align internal organisational structure to manage the external environmental challenges, this study via the supposition of Hage (1965) axiomatic theory of organisations examined the joint moderating effect of organisational structure and environmental turbulence on entry mode strategy - performance linkage focusing on the baby care industry in Lagos State, Nigeria. Idea: Empirical submissions on the combined moderating effect of organizational structure and environmental turbulence on the interactions of entry mode strategy and organizational performance are sparse. Hence, this study addressed this gap in literature. Data: The survey research design and a sample of 518 employees engaged in FMCG manufacturers in Lagos State, Nigeria were adopted for this study. Tools: A validated structured questionnaire was the instrument of data collection for this study and the hierarchical regression analysis was adopted to test the hypotheses formulated. Findings: The results showed that the interaction between entry mode strategy and firm performance was positive and significant. Further analysis revealed that the interaction term of organizational structure and environmental turbulence accounted for the rise in firm performance to suggest that organizational structure and environmental turbulence are joint significant moderators. This suggests that entry mode strategy appropriateness is key to firm performance and that the fit between organisational structure and the macro-environment is a precondition to higher performance. Contribution: This study adds to recent empirical literature on the link between entry mode strategy, organizational structure, environmental turbulence, and firm performance within emerging economy context, and it provides additional support for the assumptions of the eclectic theory and Hage’s axiomatic theory of organization.

scholarly journals A comparison of strategies for working capital management of listed food companies from Northern Europe

2020 ◽  
Vol 29 (3) ◽  
Author(s):  
Serhiy Zabolotnyy ◽  
Timo Sipiläinen
Keyword(s):  
Financial Management ◽  
Business Environment ◽  
Northern Europe ◽  
Capital Management ◽  
Working Capital ◽  
Short Term ◽  
Risk And Return ◽  
Working Capital Management ◽  
The Cost ◽  
Synthetic Evaluation

The research presents the application of fuzzy logic for synthetic evaluation of strategies for working capital management of twelve food companies from Northern Europe in 2005–2015. A set of financial ratios formed an aggregated indicator reflecting the complexity of relationships between the level and structure of current assets and liabilities of a firm. Based on the proposed indicator, four types of strategies for working capital management were identified and characterized in terms of risk and return preferences. Only a few companies from the sample demonstrated a direct orientation on liquidity or value within their strategies for working capital management. To retain flexibility in short-term financial management, most firms applied moderate policies for current assets and liabilities that helped them in maintaining liquidity and reducing the cost of financing. The integrity of the proposed method for the synthetic evaluation of working capital management makes it a convenient managerial tool suitable for use in firms operating in a turbulent business environment.

scholarly journals The Moderating Effect of Environmental Turbulence on the Strategic Agility-Performance Relationship: Empirical Evidence from Lagos State, Nigeria

2020 ◽  
Vol 10 (1) ◽  
pp. 1
Author(s):  
M. A. Arokodare
Keyword(s):  
Firm Performance ◽  
Oil And Gas ◽  
Pearson Correlation ◽  
Business Environment ◽  
Moderating Effect ◽  
Environmental Turbulence ◽  
Lagos State ◽  
Strategic Agility ◽  
And Performance ◽  
The Relationship

Scholars in strategic management argued that strategic agility measures do enhance firm performance and mitigate environmental turbulence risks. This study therefore examined the moderating effect of environmental turbulence on the relationship between strategic agility and performance of oil and gas marketing companies in Lagos State, Nigeria. Population of the study was 515 managers of major oil and gas marketing companies in Lagos State. Cross-sectional survey research design was adopted with total enumeration. The research instrument was found reliable and valid with Cronbach’s alpha and KMO greater than 0.7 and 0.5 respectively. The data was analyzed using descriptive statistics, Pearson correlation, and multiple and hierarchical regression methods of analyses. Findings revealed that among oil and gas marketing companies in Lagos State, Nigeria, there was positive and significant relationship between strategic agility and performance; strategic agility had positive and significant effect on performance while environmental turbulence significantly moderated the relationship between strategic agility and performance. The study concluded that strategic agility affected and related with firm performance and also environmental turbulence moderated the relationship between strategic agility and performance of oil and gas marketing companies in Lagos State, Nigeria. Therefore, it is recommended that oil and gas marketing companies in Nigeria should fully and dynamically embrace strategic agility practices and continuously develop their capabilities for proper and timely sensing of and responding to changes in their business environment in order to improve their performance over their competitors. Limitations of the study and areas for future research were highlighted.

scholarly journals The Moderating effect of Innovation Ecosystem on Knowledge Entrepreneurship and Innovation Performance of Manufacturing Firms in Kenya

2020 ◽  
Vol 3 (3) ◽  
pp. 237-247
Author(s):  
Isaac Muiruri Gachanja ◽  
Stephen Irura Nganga ◽  
Lucy Maina Kiganane
Keyword(s):  
Target Population ◽  
Business Environment ◽  
Manufacturing Firms ◽  
Moderating Effect ◽  
Innovation Performance ◽  
Mixed Method Research ◽  
Innovation Ecosystem ◽  
Cross Sectional ◽  
Innovation Activities ◽  
Cross Sectional Design

The turbulent and highly competitive business environment has exposed firms to unprecedented uncertainties brought about by market disruptions. Organizations have attempted to thwart this menace by leveraging on innovation, but innovation activities are complex and are not always viable. The purpose of this study is therefore to examine the moderating effect of Innovation Ecosystem (IE) on the relationship between Knowledge Entrepreneurship (KE) and Innovation Performance (IP) of manufacturing firms in Kenya. The study was anchored on the complexity theory. Mixed method research was applied which utilized cross-sectional design. The target population was 828 manufacturing firms. Purposive and stratified random sampling was used to determine a sample size of 115 firms. The study found that IE has a great moderating effect between KE and IP in manufacturing firms in Kenya. Collaboration and networking between industry, research organizations and universities should be strengthened to promote IP and increase the competitiveness of firms. Further studies should investigate the nature and effects of tension that emanates as a result of knowledge leakage that occurs during interactions with the various players within the IE

scholarly journals Working Capital Management Policies in Indian Listed Firms: A State-Wise Analysis

2021 ◽  
Vol 13 (8) ◽  
pp. 4516
Author(s):  
Najib H. S Farhan ◽  
Faozi A. Almaqtari ◽  
Ebrahim Mohammed Al-Matari ◽  
Nabil Ahmed M. SENAN ◽  
Waleed M. Alahdal ◽  
...  
Keyword(s):  
Business Environment ◽  
Manufacturing Firms ◽  
Small Sample ◽  
Investment Policy ◽  
Financial Sustainability ◽  
Manufacturing Companies ◽  
Working Capital ◽  
Return On Assets ◽  
Financing Policy ◽  
The Impact

The main aim of this paper is to evaluate the impact of working capital policies on firms’ profitability. The study uses a panel data set of 829 manufacturing firms for the period from 2011 to 2017. Data is extracted from Prowess IQ database. An empirical model is used for testing research hypotheses. The results show that all firms across Indian states follow conservative financing and investment policy. The conservative investment policy positively affects return on assets, whereas the conservative financing policy negatively affects return on assets and therefore firms’ financial sustainability. Regulators, policymakers, investors, and financial managers in Indian manufacturing companies are advised to follow a conservative investment and financing policy, which is effective and efficient in boosting firms’ profitability for attaining financial sustainability. Therefore, manufacturing firms should invest more in current assets, because they need to expand both inventories and trade credit to their customers. Moreover, financial managers are advised to favor a low level of debt in financing assets. Apart from previous literature, which was either descriptive or based on a small sample size, the present study makes a novel and significant contribution by bridging an existing gap through applying a panel fixed- and random-effect model for a large sample: 829 firms. Furthermore, the business environment in India is somewhat different from that of other countries around the globe, which makes investigating working capital policies in the Indian contexts an interesting endeavor.

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