scholarly journals Factors determining company performance in the IT industry

2020 ◽  
Vol 15 (1) ◽  
pp. 59-77
Author(s):  
Miruna Florina Lungu

AbstractThe dynamics of the business environment indicate that companies should become more flexible and value oriented. The competition within the IT sector leads to increased uncertainty for the players and a higher focus on the strategic direction of the company. Hence, many studies point out the significance of strategic agility as a tool of increasing company performance and achieving improved results. The paper highlights how the performance of IT companies is impacted by various factors. The main driver for company performance is strategic agility mixed with absorptive capacity. For a better understanding, the paper will analyze knowledge acquisition, knowledge assimilation, transformation and knowledge exploitation. These four dimensions represent the layers of absorptive capacity. Using as framework a survey developed based on the literature, there will be performed an analysis of the input received. The responses have been captured from stakeholders of the IT industry, who are employees of IT organizations with operations in Romania. For an enhanced output, there will be applied a regression analysis. This will contribute to the identification of factors determining company performance in the IT industry. The results of the regression analysis will demonstrate that strategic agility, knowledge acquisition and transformation have the highest impact on company performance. As only three out of the five tested dimensions are validated, further research can be grounded on understanding why knowledge assimilation and knowledge exploitation have not been confirmed as factors impacting company performance.

2018 ◽  
Vol 20 (4) ◽  
pp. 444-459 ◽  
Author(s):  
Marina O. Latukha

The Problem The overall ability to create and transfer knowledge is one of the main competitive advantages for companies from emerging economies and becomes their performance driver. As human resource development (HRD) and talent development (TD), in particular, aim to extend employees’ capabilities related to innovative thinking, creativity, and their key competences, which can be necessary for knowledge creation and development, TD can be associated with a firm’s absorptive capacity; however, their relationship remains underresearched. Although some studies claim about grounds for absorptive capacity, lack of analysis of absorptive capacity dimensions, specified as knowledge acquisition, assimilation, transformation, and exploitation, and its connection to TD in the emerging market context can be observed especially with the relationship to firm performance in Russia. The Solution We investigate the influence of TD on firm’s absorptive capacity in emerging market contexts, more specifically in Russia, and confirm the link between TD in Russia and knowledge assimilation, knowledge transformation, knowledge exploitation, and knowledge acquisition. The Stakeholders We show the new perspective of talent management, in general, and TD, in particular, for HRD area, showing the leading role of TD in emerging market contexts that should be in a primary agenda for both researchers and practitioners.


2020 ◽  
Vol 12 (17) ◽  
pp. 6910
Author(s):  
Abang Azlan Mohamad ◽  
T. Ramayah ◽  
May Chiun Lo

This study presents the moderating effect of innovative culture on the relationship between knowledge management and firm innovativeness. The consequences of organisations that do not practice innovative culture would result in their inability to respond and react effectively to changes in the dynamic nature of the business environment and henceforth unable to achieve superior performance. In attempting to answer the research questions, a total of 202 MSC Malaysia organisations took part in the survey. To assess the developed model, WarpPLS (version 7.0) was applied based on path modelling and then bootstrapping. The results highlighted that three of the four dimensions of knowledge management, namely knowledge acquisition, knowledge application and knowledge protection were positively and significantly related to firm innovativeness. On the other hand, innovative culture was found to moderate the relationships between knowledge acquisition and firm innovativeness; and knowledge application and firm innovativeness.


Author(s):  
Miruna Florina Lungu

Abstract As we are living in a world governed by technology, the society becomes step by step more digitalized. The IT sector is now rooted both in our personal and professional lives, removing physical boundaries. Given these facts, the aim of this paper is to present an analysis of how strategic agility works hand in hand within the IT industry. Strategic agility represents a trigger for growth in this industry, contributing to its expansion and strategic business direction as part of the business environment. Thus, the objectives of the current paper are three-folded, namely: (1) what does strategic agility stands for in the IT industry; (2) how strategic agility is achieved within IT sector (3) which business areas of IT companies are impacted by strategic agility. In the journey of covering all these points, we will use mixed research methodology. The qualitative research contributes to a deeper understanding of the role strategic agility plays in the IT business. This section of the paper screens the targeted concepts of the research, acknowledging the challenges and opportunities triggered by strategic agility. The quantitative research method represented by a survey highlights through primary collected data a real case analysis of the IT industry. Various stakeholders operating in this industry bring their input to the development of this scientific paper, their opinion being sketched with the support of structured set of opened and closed questions. The findings of this research are collected and analyzed to mirror the significance of strategic agility as part of the IT industry. The paper aims to cover all the listed objectives, raising awareness of how technology is a vital strategic pillar of the business environment. Such results enhance our capacity of future value creation, enabling new opportunities for growth and innovation.


2015 ◽  
Vol 35 (9) ◽  
pp. 1275-1294 ◽  
Author(s):  
Min Zhang ◽  
Xiande Zhao ◽  
Marjorie A. Lyles ◽  
Hangfei Guo

Purpose – The purpose of this paper is to investigate the effects of a manufacturer’s absorptive capacity (AC) on its mass customization capability (MCC). Design/methodology/approach – The authors conceptualize AC within the supply chain context as four processes: knowledge acquisition from customers, knowledge acquisition from suppliers, knowledge assimilation, and knowledge application. The authors then propose and empirically test a model on the relationships among AC processes and MCC using structural equation modeling and data collected from 276 manufacturing firms in China. Findings – The results show that AC significantly improves MCC. In particular, knowledge sourced from customers and suppliers enhances MCC in three ways: directly, indirectly through knowledge application, and indirectly through knowledge assimilation and application. The study also finds that knowledge acquisition significantly enhances knowledge assimilation and knowledge application, and that knowledge assimilation leads to knowledge application. Originality/value – This study provides empirical evidence of the effects of AC processes on MCC. It also indicates the relationships among AC processes. Moreover, it reveals the mechanisms through which knowledge sourced from customers and suppliers contributes to MCC development, and demonstrates the importance of internal knowledge management practices in exploiting knowledge from supply chain partners. Furthermore, it provides guidelines for executives to decide how to manage supply chain knowledge and devote their efforts and resources in absorbing new knowledge for MCC development.


2020 ◽  
Vol 19 (6) ◽  
pp. 1173-1188
Author(s):  
A.B. Kogan ◽  
A.N. Pristavka

Subject. The article presents various definitions of the efficiency concept, their changes as the economic science evolves, and describes various methods to measure company performance efficiency, ranging from a simple set of financial indicators to comprehensive systems for effectiveness evaluation. Objectives. The purpose of the study is to systematize the said definitions and identify a category that will meet the current condition of business environment. Methods. The study rests on the retrospective and comparative analysis of interpretations of the efficiency concept in the economic science. We also employ the historical and logical methods of general theoretical research. Results. We identify three approaches to the interpretation of the efficiency concept. Within the selected approaches, we consider the main methods for company performance measurement that have emerged since 1914. The paper formulates criteria, which were used to carry out the comparative analysis of these methods. The analysis enabled to trace all changes in the methods. Conclusions. We propose to use the term Integrated Company Efficiency and to develop methodological framework for measuring the comprehensive efficiency of companies operating in various industries.


Author(s):  
Choo Yeon Kim ◽  
Eun-Hwa Seo ◽  
Canisha Booranabanyat ◽  
Kwangsoo Kim

Although emerging-economy firms (E-E firms) must have a keen interest in improving their performance by utilizing knowledge transferred from their advanced international joint venture (IJV) partner, there has been little research on the performance implications of E-E firms’ knowledge transferred from their advanced IJV partner. So, drawing on open innovation and organizational learning perspectives, we examine whether, how, and when E-E firms’ knowledge acquisition from their IJV partner has a positive impact on their financial performance. Based on data collected from 127 Thai manufacturing firms with a local IJV partnered with an advanced overseas firm, our results reveal that E-E firms’ knowledge acquisition from their IJV partner has an overall positive influence on their financial performance in terms of growth and profitability. Our results further show that innovation performance mediates the relationship between E-E firms’ knowledge acquisition and their financial performance based on a moderated mediation analysis including innovation performance as a mediator and absorptive capacity as a moderator. It is also found that the positive mediation effect of innovation performance is more pronounced in the presence of higher absorptive capacity than otherwise. That is, our results show that even among E-E firms which have acquired much knowledge from their IJV partner, those with higher absorptive capacity achieve better innovation performance than those with lower absorptive capacity, and improved innovation performance subsequently contributes to producing superior financial performance. The key conclusions, implications, and limitations of our study are presented based on these findings.


2021 ◽  
Vol 1 (3) ◽  
pp. 115-119
Author(s):  
Agus Sobar ◽  
Asep Deni ◽  
Riki Riswandi ◽  
Dendi Zainuddin Hamidi ◽  
Indra Permadi

Research related to the effect of product turnover on the performance of companies in the industrial sector is still needed to do research and study in depth. This is needed because the developed sector, especially related to product rotation, has an important role in advancing the sustainability of the company. The research methodology in this research is descriptive quantitative using simple linear regression analysis and using SPSS v 23 and Amos v 23 software as a calculation tool through a measurement model using simple Linear Regression at 87 MSMEs in Sukabumi City. The results of this study indicate a positive effect of product turnover on the performance of Small and Medium Enterprises.


2019 ◽  
Vol 36 (1) ◽  
pp. 74-107 ◽  
Author(s):  
Charmaine Glavas ◽  
Shane Mathews ◽  
Rebekah Russell-Bennett

Purpose Technology has profoundly transformed the international business environment, particularly regarding the flow of information and the way in which knowledge is acquired and shared. Yet, the extent of this transformation is still underappreciated. The purpose of this paper is to examine how small and medium-sized enterprise (SME) owner/founders acquire and utilize knowledge for internationalization via internet-enabled platforms. Design/methodology/approach The empirical analysis draws on multiple case study methodology to examine 13 Australian SME owner/founders and the knowledge they acquire from utilization of internet-enabled platforms. Findings The analysis reveals four differing types of internet-enabled experiences: “technical internet-enabled experiences,” “operational internet-enabled experiences,” “functional internet-enabled experiences,” and “immersive internet-enabled experiences.” The findings indicate that internet-enabled experiences can generate both explicit and tacit forms of knowledge for the pre, early and later phases of internationalization. Practical implications The findings provide a structured approach by allowing SMEs to “plot” themselves against the classification of internet-enabled experiences to denote their level of technological involvement, and for discerning the types of knowledge that can be acquired. The findings are particularly helpful for owner/founders, highlighting that internet-enabled platforms are affecting the ways in which knowledge can be acquired and applied to international businesses processes. Originality/value The findings extend the conventional notion of knowledge acquisition for international business by highlighting how information and knowledge can be acquired via internet-enabled platforms. The findings lay the necessary groundwork for building an evidence base and theoretically extending the concept of knowledge acquisition via internet-enabled platforms.


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