scholarly journals Analysis of Company's Strategy and Characteristics of Earnings Quality

2021 ◽  
Vol 12 (2) ◽  
pp. 79-95
Author(s):  
Suwindha Idhastari
Keyword(s):  
Ownership Structure ◽  
Audit Quality ◽  
Earnings Quality ◽  
Institutional Ownership ◽  
Managerial Ownership ◽  
Company Size ◽  
Cost Leadership ◽  
Differentiation Strategy ◽  
Leadership Strategy ◽  
Cost Leadership Strategy

This study aims to determine the effect of company strategy proxied by­ cost leadership strategy, differentiation strategy and investment opportunity set, and company characteristics proxied by company size, managerial ownership structure, institutional ownership structure and audit quality on earnings quality in manufacturing companies listed on the Indonesia Stock Exchange 2015-2019. The population in this study were 175 companies with a total sample size 37 compenies. The method used in determining the number of samples in purposive sampling. Regression analysis in this study using multiple linier regression. The result of this study indicate that the cost leadership strategy, investment opportunity set, managerial ownership structure, and institutional ownership structure have no effect on earnings quality. Meanwhie, the differentiation strategy, company size and audit quality have an effect on earnings quality. The result of multiple liniear regression analysis showed an adjusted R2 value of 0,342. This shows that the level of reletionship between the variable cost leadership strategy, differentiation strategy, investement opportunity set, company size, managerial ownership, institutional ownership, and audit quality on earnings quality is 34,2% and the remaining 65,8% is explained by other variables in beyond the research model.

The Impact of Strategic Relevance and Assurance of Sustainability Indicators on Investors' Decisions

2014 ◽  
Vol 34 (1) ◽  
pp. 131-162 ◽  
Author(s):  
Mandy M. Cheng ◽  
Wendy J. Green ◽  
John Chi Wa Ko
Keyword(s):  
Strategic Alignment ◽  
Investment Decisions ◽  
Company Strategy ◽  
Cost Leadership ◽  
Nonprofessional Investors ◽  
Differentiation Strategy ◽  
Leadership Strategy ◽  
Strategy Versus ◽  
The Impact ◽  
Cost Leadership Strategy

SUMMARY In this study, we report two 2 × 2 between-subjects experiments that investigate the effect of strategic relevance of reported sustainability information and its assurance on nonprofessional investors' investment decisions. The first experiment manipulates strategic relevance of reported environmental, social, and governance (ESG) indicators between “high” and “low” by varying the company strategy (sustainability-based differentiation strategy versus cost leadership strategy unrelated to sustainability). The second experiment manipulates the strategic alignment of the ESG indicators (holding strategy constant). We also manipulate the presence (absence) of assurance in both experiments. Results from both experiments document that investors perceive ESG indicators to be more important, and are more willing to invest in the company if ESG indicators have higher strategic relevance. Experiment one also provides evidence that assurance increases investors' willingness to invest to a greater extent when ESG indicators have high relevance to the company strategy. Our findings suggest that the assurance of ESG indicators has a beneficial signaling role in communicating the importance of this reported information to investors.

FATMOLS lodges of Zambia: reaching international travelers

2017 ◽  
Vol 7 (1) ◽  
pp. 1-18
Author(s):  
Marlene M. Reed ◽  
Steven Sikobela
Keyword(s):  
Customer Service ◽  
Low Cost ◽  
First Century ◽  
Content Type ◽  
Cost Leadership ◽  
Differentiation Strategy ◽  
Original Intention ◽  
Leadership Strategy ◽  
General Business ◽  
Cost Leadership Strategy

Study level/applicabilityUndergraduate.Case overviewThis case deals with a Zambian entrepreneur named Frank Ngambi who had developed several lodges in Ndola and Lusaka, Zambia. His original intention had been to build lodges that would provide inexpensive lodging for domestic travelers. That strategy had succeeded, and the lodges had been so successful that Frank had been able to increase the size of his lodges in both cities. However, by the summer of 2015, Frank had decided to seek the patronage of international travelers. He knew that this change in strategy would be difficult to achieve. After analyzing one of his competitors, the Intercontinental Hotel in Lusaka, he realized that he needed to increase his product offerings and also offer outstanding customer service. One problem in attaining that goal was the fact that there was very little training for human resources involved in the hospitality industry in Ndola where two of his lodges were located. Another problem he faced was figuring out how to market his lodges to international travelers, as he had never sought that segment of the market before.Expected learning outcomesAt the conclusion of the case discussion, the student should be able to apply Michael Porter’s General Business-Level Strategy to the present and anticipated strategies for the FATMOLS Lodges; to identify tactics that would apply to a low cost leadership strategy; to identify tactics that would apply to a differentiation strategy; to discuss reasons tourism has increased in Zambia in the twenty-first century; to analyze the financial strategy used in developing the FATMOLS Lodges; and to develop a plan for moving a company from a low-cost leadership strategy to one of differentiation.Supplementary materialsTeaching notes are available for educators only. Please contact your library to gain login details or [email protected] request teaching notes.Subject codeCSS 11: Strategy.

scholarly journals Market Orientation And Performance: Does Organizational Strategy Matter?

2011 ◽  
Vol 18 (1) ◽  
Author(s):  
Kamalesh Kumar ◽  
Ram Subramanian ◽  
Karen Strandholm
Keyword(s):  
Firm Performance ◽  
Market Orientation ◽  
Customer Orientation ◽  
Positive Impact ◽  
Low Cost ◽  
Cost Leadership ◽  
Differentiation Strategy ◽  
Leadership Strategy ◽  
Competitor Orientation ◽  
Cost Leadership Strategy

Data from a survey of 159 hospitals was used to test the relationship between market orientation and firm performance for low cost and differentiation strategies. Hospitals pursuing a differentiation strategy had stronger market orientation than those pursuing a cost leadership strategy. Market orientation had a more positive impact on the performance of organizations pursuing a differentiation strategy than on those pursuing a cost leadership strategy. In the cost leader group, the inter-functional coordination component of market orientation significantly affected firm performance, while in the differentiator group the customer orientation and competitor orientation components of market orientation had significant impact on performance. The implications of these findings for managers also are discussed.

scholarly journals Competitive Strategy Analysis from Entrepreneurship Stories

2019 ◽  
Author(s):  
Şeyma Gün Eroğlu ◽  
Ayşe İrmiş
Keyword(s):  
Production Process ◽  
Local Market ◽  
Competitive Strategies ◽  
Strategy Analysis ◽  
Cost Leadership ◽  
Differentiation Strategy ◽  
Leadership Strategy ◽  
The Cost ◽  
Focus Strategy ◽  
Cost Leadership Strategy

Organizations apply two basic competitive strategies in general. These are the cost leadership strategy and the differentiation strategy. The application of any of the mentioned strategies by focusing on a smaller field in the market is called a focus strategy. Companies gain value in the eyes of customer with the strategy they choose. The aim of this study is to analyze the competitive strategies applied by the enterprises and the results of these strategies. A semi-configured interview on the entrepreneurs of two firms which open to a wider market from local market in Denizli with their own brands, was conducted. The first enterprise, which has been maintaining its existence for 80 years and has many branches in the different provinces, is a firm producing sugar and sugar products (Firm A). The second, which has been maintaining its existence for 84 years and has branches in close neighbor cities and provinces, is a firm producing soft drinks (Firm B). The common feature of both firms is that they keep their local characteristics and take their competitive power from the local people. In the research, the competitive strategies of entrepreneurs have been defined and analyzed by benefiting from the entrepreneurship stories that have been brought up to the present day. It was concluded that firm A applied differentiation strategy in the product, production process, and market, while firm B differentiated in the production process without any differentiation in the product and used the focus strategy in the market.

scholarly journals PENGARUH STRUKTUR KEPEMILIKAN TERHADAP KEBIJAKAN DIVIDEN PADA PERUSAHAAN MANUFAKTUR

2016 ◽  
Vol 12 (2) ◽  
pp. 167
Author(s):  
Evy Sumartha
Keyword(s):  
Regression Analysis ◽  
Ownership Structure ◽  
Dividend Policy ◽  
Control Variable ◽  
Institutional Ownership ◽  
Managerial Ownership ◽  
Company Size ◽  
Dividend Payout ◽  
Negative Effect ◽  
The Relationship

Abstrak: Pengaruh Struktur Kepemilikan Terhadap Kebijakan Dividen pada Perusahaan Manufaktur. Struktur kepemilikan sebagai variabel independen dalam penelitian ini diproksikan dengan kepemilikan institusional dan kepemilikan manajerial. Penelitian ini juga untuk mendapatkan bukti mengenai fungsi moderasi dari konsentrasi kepemilikan dalam hubungan antara struktur kepemilikan dan kebijakan dividen. Variabel dependen adalah kebijakan dividen yang diukur dengan Dividend Payout Ratio (DPR). Sampel yang diperoleh sebanyak 97 perusahaan selama tahun pengamatan. Pengujian hipotesis dilakukan dengan Moderating Regression Analysis dan analisis regresi data panel. Hasilnya menunjukkan bahwa konsentrasi kepemilikan berfungsi sebagai variabel moderating pada hubungan antara struktur kepemilikan dan kebijakan dividen. Untuk kepemilikan institusional pada perusahaan yang tidak mempunyai kepemilikan manajerial berpengaruh negatif terhadap Dividend Payout Ratio, sedangkan kepemilikan institusional pada perusahaan yang mempunyai kepemilikan manajerial berpengaruh positif. Kepemilikan manajerial berpengaruh positif terhadap Dividend Payout Ratio. Variabel kontrol profitabilitas dan ukuran perusahaan berpengaruh pula terhadap kebijakan dividen perusahaan. Kata Kunci: konsentrasi kepemilikan, kepemilikan institusional, kepemilikan manajerial, ROA, ukuran perusahaan, dividend payout ratio Abstract: Pengaruh Struktur Kepemilikan Terhadap Kebijakan Dividen pada Perusahaan Manufaktur Ownership structure; as independent variables in this research; is represented by institutional ownership and managerial ownership. This research also aimed to obtain evidence of moderation function of the concentration of ownership in the relationship between ownership structure and dividend policy. The dependent variable is dividend policy which is measured by Dividend Payout Ratio (DPR). There are 97 sample companies. Hypothesis testing is done by Moderating Regression Analysis (MRA) and panel regression analysis. The results of this research show that the concentration of ownership serves as a moderating variable on the relationship between ownership structure and dividend policy. Institutional ownership in companies that do not have a managerial ownership has a negative effect on Dividend Payout Ratio; while institutional ownership in companies that have a managerial ownership has a positive effect on Dividend Payout Ratio. Profitability and company size as a control variable has effect on dividend policy. Keywords: the concentration of ownership, institutional ownership, managerial ownership, ROA, company size, dividend payout ratio

scholarly journals IS SMEs ABLE TO CONSTRUCT BUSINESS STRATEGY TO IMPROVE ITS PERFORMANCE USING ITS OWN ABILITY? (STUDY ON SMEs KARAWO HANDICRAFT IN CITY OF GORONTALO, INDONESIA)

2017 ◽  
Author(s):  
Ariawan ◽  
Made Sudarma ◽  
Djumahir ◽  
Ghozali Maskie
Keyword(s):  
Human Capital ◽  
Business Strategy ◽  
Capital Investment ◽  
Structural Equation ◽  
The Body ◽  
Cost Leadership ◽  
Differentiation Strategy ◽  
Leadership Strategy ◽  
Focus Strategy ◽  
Cost Leadership Strategy

Status: Preprint (belum di terbitkan pada Jurnal manapun)The objectives of this study were to analyze and investigate the human capital resource of SMEs to achieve the expected level of performance and to see if the quality of human capital had been appropriate enough to be able to apply certain business strategy. This study also intended to see if the cost leadership strategy, differentiation strategy, as well as appropriate focus strategy to improve the performance of SMEs. This study employed a survey design in which researcher conducted a survey to managers or owner of 68 SMEs of Karawo handicraft in Gorontalo city. This study also employed the structural equation or PLS approach using warpPLS application to analyze the data. The finding of this study showed that the ability of the human capital owned by the SMEs had not yet maximized in improving its performance. The role of the mediation business strategy (cost leadership strategy and differentiation strategy) have been appropriate and matched the ability of the human capital to improve the performance of SMEs. The result of this study enriches the body of knowledge related to the resource based theory and the development of strategic management of the human capital investment for the implementation of business strategy to achieve good performance and system. This study also offers practical benefit for managers or owners of SMEs, and government in developing the business. The data were collected using cross sectional strategy by analyzing the opinions and perception of the managers or owners of the business. Future researchers are encouraged to expand this by involving bigger number of sample and broader scope of study. Future researcher may also develop this study using mix method research design to verify and take action on the interesting result of this study related to the implementation of focus strategy based on the ability of the human capital which has been confirmed to have the highest coefficient path, yet did not have significant effect to the improvement of the performance without the involvement of mediational variables such as the combination of focus-cost strategy or focus-differentiation strategy.

Intentional Cannibalization, Radical Innovation, and Performance: A Comparison of Chinese and Western Enterprises in China

2019 ◽  
Vol 28 (2) ◽  
pp. 40-58
Author(s):  
Saeed Samiee ◽  
Maria Sääksjärvi ◽  
Nükhet Harmancioǧlu ◽  
Erik Jan Hultink
Keyword(s):  
Radical Innovation ◽  
Marketing Strategies ◽  
Chinese Firms ◽  
Chinese Enterprises ◽  
Cost Leadership ◽  
Subsequent Performance ◽  
Differentiation Strategy ◽  
Leadership Strategy ◽  
And Performance ◽  
Cost Leadership Strategy

Research contrasting the marketing strategies of foreign and domestic firms within local markets is scarce but is of critical importance to both types of firms. This research examines how intentional cannibalization (IC) functions in Western and Chinese enterprises operating in China and evaluates IC’s impact on radical innovation and subsequent performance while accounting for the moderating effects of cost leadership and differentiation strategies. The investigation uncovers important marketing strategy concerns for firms competing in emerging markets such as China. The results demonstrate that IC on its own correlates with radical innovation for Western firms, but not for Chinese firms. For Chinese firms, the link between IC and radical innovation becomes significant only in combination with a cost leadership strategy. For Western firms, the link between IC and radical innovation is strengthened when these firms pursue a differentiation strategy and, in contrast to Chinese firms, radical innovation mediates the effect between IC and performance. Thus, the way IC and radical innovation affect performance varies across Western and Chinese enterprises. These findings bolster and extend research regarding strategies of local and nonlocal firms in home markets.

International competitive strategies, organizational learning and export performance: a match and mis-match conceptualization

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Henry F.L. Chung ◽  
Mia Hsiao-Wen Ho
Keyword(s):  
Organizational Learning ◽  
Market Share ◽  
Export Performance ◽  
Competitive Strategies ◽  
Content Type ◽  
Strategic Performance ◽  
Cost Leadership ◽  
Differentiation Strategy ◽  
Leadership Strategy ◽  
Cost Leadership Strategy

Purpose This study aims to examine the effects of international competitive strategies, i.e. cost leadership and differentiation, on export (market share and strategic) performance. This study further explores the roles of exploitative and exploratory organizational learning in the relationships between international competitive strategies and export performances. To fill research gaps, this study intends to provide guidance on how varied exploitative/exploratory organizational learning and cost leadership/differentiation strategy combinations would affect export performance. The outcomes of this study provide a new match and mis-match conceptualization to extant international competitive strategy and organizational learning literature. Design/methodology/approach This study selected New Zealand (NZ) exporting as the research setting because exporting plays such a vital role in NZ’s economy and NZ exporting firms have long been highly competitive in international markets (e.g. meat and dairy exporters), with the primary data collected through surveys conducted in 2010 and 2013. This study adopted a three-year lagged performance approach. Findings Cost leadership strategy has a positive effect on market share performance. This effect is enhanced by exploitative learning but dampened by exploratory learning. Cost leadership also has a positive effect on strategic performance, which is not affected by exploitative and exploratory learning. Differentiation strategy bears no relation to market share and strategic performance, even allowing for exploitative and exploratory learning. Collectively, the contingent role of organizational learning in the international competitive strategies and export performance framework is far more comprehensive than was expected. Research limitations/implications This study reveals that a match between cost leadership strategy and exploitative learning may result in a superior market share. The configuration of differentiation strategy and exploitative learning and the integration of cost leadership strategy and exploratory learning are suggested as mis-matches, as these combinations would not lead to any significant and positive market share and strategic performance. Unexpectedly, the co-alliance of differentiation strategy and explorative learning is not suggested as a match, as it does not result in a superior market share and strategic performance. This latter outcome suggests that the differentiation strategy-export performance link may be stimulated by other moderating factors (e.g. business managerial ties). Practical implications While choosing an appropriate international competitive strategy, managers may use cost leadership over differentiation strategy to achieve successful export performance in both the market share and strategic perspectives. Export managers focusing on cost leadership strategy may further implement exploitative learning instead of explorative learning, when market share is vital. Meanwhile, they may note that explorative learning may not have a moderating effect on enhancing strategic performance through cost leadership. These points signify that exploitation of existing knowledge may be more effective than exploration of new knowledge for market share expansion when cost leadership strategy is devoted to exporting activities. Differentiation strategy, however, does not influence market share and strategic performance in exporting, even with an alignment of exploitative/exploratory learning. Managers are urged to pay attention to the mis-match of differentiation strategy and organizational learning when market share and strategic performance are the priorities in export performance evaluation. Originality/value This study contributes to the organizational learning literature by providing a new match and mis-match conceptualization relating to international competitive strategy and export performance. The new framework provides directions on when firms should use organizational learning to enhance their competitive strategies (a match scenario) and when they should not use it (a mis-match scenario). This study broadens the existing research that has mainly focused on alignment combinations such as organizational learning-internationalization strategy and organizational learning-social network.

Insights Between Environmental Scanning Activities and Porter's Generic Strategies: An Empirical Analysis

1992 ◽  
Vol 18 (4) ◽  
pp. 791-803 ◽  
Author(s):  
Daniel F. Jennings ◽  
James R. Lumpkin
Keyword(s):  
Environmental Scanning ◽  
Chief Executives ◽  
Cost Leadership ◽  
Differentiation Strategy ◽  
Leadership Strategy ◽  
Different Types ◽  
Customer Attitudes ◽  
Generic Strategies ◽  
Porter's Generic Strategies ◽  
Cost Leadership Strategy

This study explored the relationships between the environmental scanning activities of chief executives from a single industry and their organizations' strategies, on the premise that executives employing different types of Porter's generic business-level strategies would use different scanning activities. There were differences in the strategy-scanning linkages. Specifically there are indications that firms with a differentiation strategy tend to employ a scanning activity that places more importance on evaluating opportunities and customer attitudes. Firms with a cost leadership strategy tend to use a scanning activity that evaluates competitive threats and tracks the policies and tactics of competitors.

scholarly journals The Effects of Business Strategy and Inventory on the Relationship between Sales Manipulation and Future Profitability

2019 ◽  
Vol 11 (8) ◽  
pp. 2377
Author(s):  
Hwa Deuk Yi ◽  
Sambock Park ◽  
Jonghyun Kim
Keyword(s):  
Product Differentiation ◽  
Business Strategy ◽  
Positive Impact ◽  
Corporate Sustainability ◽  
Cost Leadership ◽  
Differentiation Strategy ◽  
Leadership Strategy ◽  
Real Activities Manipulation ◽  
The Relationship ◽  
Cost Leadership Strategy

Many researchers have found that real activities manipulation undermines future profitability, because it deviates from normal operating activities. We are interested in sales manipulation, which is one type of real activities manipulation relating to corporate sustainability. First, we empirically examine whether the effects of sales manipulation on future profitability differ according to the strategies of a firm. Next, we divide sales manipulation as a type of real activities manipulation and optimal sales manipulation and then examine how the two types of sales manipulation affect future profitability. Finally, we examine how the effects of optimal sales manipulation on future profitability differ according to the firm’s strategies. The empirical findings show that the association between sales manipulation and future profitability is more negative (−) for a product differentiation strategy than for a cost leadership strategy. Further, the sales manipulation performed by firms with a high proportion of the starting inventory and a decrease in the inventory during the current year has a positive (+) impact on future profitability. Our results contribute to the literature on business strategy by presenting evidence that core management activities are related to future financial performance, according to the business strategy. In addition, our research shows that sales manipulation can turn into an optimal operating activity, depending on the firm’s situation.

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