scholarly journals Determinants of Financial Performance in China’s Intelligent Manufacturing Industry: Innovation and Liquidity

2021 ◽  
Vol 9 (1) ◽  
pp. 15
Author(s):  
Guanghong Zhang ◽  
Yune Lee
Keyword(s):  
Financial Performance ◽  
Structural Equation ◽  
Manufacturing Industry ◽  
Intelligent Manufacturing ◽  
Manufacturing Industries ◽  
Government Support ◽  
Equation Modeling ◽  
Chinese Government ◽  
Regional Innovation ◽  
Endogenous Factors

This study focuses on the mediation channels through which the financial performance of intelligent manufacturing industries closely related to the Fourth Industrial Revolution has been affected. Along with compiling a massive volume of datasets publicized by the Chinese government and other authoritative institutions, a survey of the 317 listed enterprises of the intelligent manufacturing industries in China has been established for statistical analysis. Using Structural Equation Modeling (SEM), this research tests six hypotheses and confirms the inter-factor impact relationship between exogenous and endogenous factors. We find that innovation efforts mainly led by increasing investment in Research & Development (R&D), along with high liquidity, surely lead to good financial performance, whereas innovation efforts alone do not. Government support policy has been found to be closely related not only to higher liquidity, but to good financial performance through the common channel of R&D investment. Regional innovation capability has been revealed to be related to R&D investments, and, furthermore, to liquidity, which shows that the regional innovation system in China has been functioning relatively well to induce enterprises to increase investments and secure higher liquidity, and finally contribute to achieving better business performance. However, regional economic development shows no relationship with R&D investments, and consequently neither with liquidity nor with performance.

scholarly journals INNOVATION, PROCESS CAPITAL AND FINANCIAL PERFORMANCE: MEDIATING ROLE OF MARKETING PERFORMANCE (EVIDENCE FROM MANUFACTURING INDUSTRY IN INDONESIA)

2019 ◽  
Vol 7 (1) ◽  
pp. 278-290 ◽  
Author(s):  
Bambang Tjahjadi ◽  
Hanna Miriam Shanty ◽  
Noorlailie Soewarno
Keyword(s):  
Financial Performance ◽  
Structural Equation ◽  
Manufacturing Industry ◽  
Equation Modeling ◽  
Manufacturing Companies ◽  
Data Set ◽  
Mediating Role ◽  
Marketing Performance ◽  
The Relationship

Purpose of the Study: This paper aims to investigate the mediating role of marketing performance on innovation-financial performance relationship as well as on process capital-financial performance relationship using the publicly listed manufacturing firms on the Indonesia Stock Exchange (IDX). Methodology: This is a quantitative research employing marketing performance as the mediation variable. A mediation research model is constructed to test the hypotheses of this research using the Partial Least Squares Structural Equation Modeling. A new data set is prepared which involves the publicly listed manufacturing companies on the IDX covering a period of thirteen years from 2005 to 2017. Main Findings: The results of this research provide the following empirical evidence. Firstly, marketing performance partially mediates the relationship between innovation and financial performance. Secondly, marketing performance fully mediates the relationship between process capital and financial performance. Conclusion: This study provides a better understanding of managers regarding the mechanism of how innovation affects financial performance via marketing performance as well as on the mechanism of how to process capital affects financial performance via marketing performance. Application/Implication: This study implies that managers need to continuously innovate, improve manufacturing processes, and enhance marketing management to achieve better financial performance.

Aligning organizational culture and operations strategy to improve innovation outcomes

2019 ◽  
Vol 32 (2) ◽  
pp. 224-250 ◽  
Author(s):  
Li-Fan Wu ◽  
Ing-Chung Huang ◽  
Wei-Chang Huang ◽  
Pey-Lan Du
Keyword(s):  
Organizational Culture ◽  
Organizational Climate ◽  
Structural Equation ◽  
Manufacturing Industry ◽  
Organizational Innovation ◽  
Manufacturing Industries ◽  
Dimensional Structure ◽  
Equation Modeling ◽  
Operations Strategy ◽  
Content Type

Purpose Innovation is a key factor in assessing organizational success. The purpose of this paper is to examine how the organizational culture and operations strategy impact organizational innovation. It explores the influence of various combinations of organizational cultures and operations strategies on a firm’s ability to innovate both in process and product. Design/methodology/approach A conceptual model is developed which attempts to explain how the reciprocal and dynamic interactive relationship between organizational culture and operations strategy and innovation is structured. In total, 233 valid questionnaires were collected from 17 small- and medium-sized enterprises (SMEs) in Taiwan. Structural equation modeling was used to investigate the direction and strengths of the relationships and develop a comprehensive picture to illustrate the drivers of successful innovation. Findings The analysis and conclusions confirm the suitability of Culture–Strategy–Innovation Model and the detailed results demonstrate that a combination of innovative organizational culture and flexibility-oriented operations strategy has the strongest influence on a firm’s innovation process thereby improving their innovative organizational outcomes. Practical implications Although based on Taiwanese manufacturing industries these results provide useful insights for manufacturing industries in general. In alternative contexts, the combination of different dimensions of culture and strategy can be expected to cause different levels of success in innovation. This study provides robust evidence to explain the organizational climate needed to guide the innovative and flexibility considerations needed for SMEs in the manufacturing industry. Originality/value This is an empirical study which specifically investigates the activities of SMEs in the metal/plastic manufacturing industry in Taiwan and in particular examines organizational culture, operations strategies and innovation. The research model proposed and confirmed offers a new multi-dimensional structure of culture and strategy linked with their various related dynamic interrelationships and the drivers that impact organizational innovation.

scholarly journals INFLUENCE OF INTELLECTUAL CAPITAL AND CAPITAL STRUCTURE OF THE COMPANY VALUE THROUGH FINANCIAL PERFORMANCE AS AN INTERVENING VARIABLE (CASE STUDY AT MANUFACTURING COMPANIES LISTED IN INDONESIA STOCK EXCHANGE PERIOD 2013-2017)

2020 ◽  
Vol 4 (02) ◽  
pp. 101
Author(s):  
Syari Octavia ◽  
Ahmad Fauzan Fathoni ◽  
Yulia Efni
Keyword(s):  
Capital Structure ◽  
Financial Performance ◽  
Intellectual Capital ◽  
Stock Price ◽  
Structural Equation ◽  
Manufacturing Industry ◽  
Stock Exchange ◽  
Equation Modeling ◽  
Manufacturing Companies ◽  
Company Value

<p><em>Manufacturing industry is the industry that the largest contribution to GDP growth until 2017. Although still the largest source of the increase in GDP, the contribution of manufacturing to GDP continued to decline since 2015. However, this does not cause the stock price decline of manufacturing. Based on this phenomenon, this study aims to examine the internal factors are thought to be able to increase the value of the company. The population in this study are all manufacturing companies listed in Indonesia Stock Exchange in 2013-2017 as many as 144 companies with a total sample of 76 companies that obtained by purposive sampling. Then, samples were analyzed using Structural Equation Modeling results show that IC and capital structure does not directly affect the value of the company. But IC and capital structure directly affects financial performance. Thus, the financial performance is able to mediate the effects of IC and capital structure to the company's value. The better the financial performance of a company, the better is also the company's value in the eyes of investors.</em></p><p><em><strong><em>Keywords</em></strong><em>: Intellectual Capital, Capital Structure, Financial Performance, Company Value</em></em></p>

scholarly journals Impact of Industry 4.0 on Corporate Financial Performance: A Moderated Mediation Model

2021 ◽  
Vol 13 (11) ◽  
pp. 6069
Author(s):  
Hong-Long Chen
Keyword(s):  
Financial Performance ◽  
Industry 4.0 ◽  
Structural Equation ◽  
Moderated Mediation ◽  
Mediating Effect ◽  
Equation Modeling ◽  
Corporate Financial Performance ◽  
Bootstrap Sampling ◽  
Mediation Effects ◽  
Moderated Mediation Model

Many studies advance the contemporary technologies of Industry 4.0. However, relatively little is known about how Industry 4.0 affects corporate financial performance. Using a survey, bootstrap sampling, and structural-equation modeling, this study evaluates the moderated mediation effects of Industry 4.0 maturity on financial performance. The results show that Industry 4.0 maturity significantly affects internal business process performance (IBPP), which influences customer performance through the mediating effect of supply chain performance (SCP), and IBPP and SCP affect financial performance fully through the mediating effect of customer performance. The results also show that Industry 4.0 maturity moderates the positive relationship between customer performance and financial performance. Customer performance and IBPP have the largest direct and total effects on financial performance in the context of Industry 4.0 implementation, respectively. The results indicate that Industry 4.0 magnifies the potential returns to companies mainly through IBPP, SCP, and customer performance. This study offers an enhanced understanding of the financial implications of Industry 4.0 implementation and provides insights into the factors through which Industry 4.0 maturity influences financial performance.

THE RELATIONSHIP OF LEADERSHIP, TEAM TRUST AND TEAM PERFORMANCE: A COMPARISON OF THE SERVICE AND MANUFACTURING INDUSTRIES

2007 ◽  
Vol 35 (5) ◽  
pp. 643-658 ◽  
Author(s):  
Ming-Jian Shen ◽  
Ming-Chia Chen
Keyword(s):  
Team Performance ◽  
Structural Equation ◽  
Leadership Team ◽  
Manufacturing Industries ◽  
Relational Trust ◽  
Equation Modeling ◽  
Manova Analysis ◽  
Relationship Of ◽  
Team Trust ◽  
Positive Effect

The objective of this study was to investigate and compare the relationships and variations among leadership, team trust and team performance in the service and manufacturing industries. The results of using structural equation modeling to conduct hypotheses testing show that leadership has a positive effect on team trust and team performance, and that team trust also has a positive effect on team performance. By using MANOVA analysis to test for significant variances in leadership, team trust and team performance in the service and manufacturing industries, a significant variance was discovered in the testing of instructed leadership, relational trust and institutional trust in both industries.

A strategy tripod perspective on merger effectiveness in the higher education industry: the mediating role of future foresight

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Zahraa Sameer Sajwani ◽  
Joe Hazzam ◽  
Abdelmounaim Lahrech ◽  
Muna Alnuaimi
Keyword(s):  
Higher Education ◽  
Structural Equation ◽  
Government Support ◽  
Equation Modeling ◽  
Survey Method ◽  
Content Type ◽  
Mediating Role ◽  
Education Industry ◽  
Higher Education Industry

PurposeThe purpose of the study is to investigate the role of the strategy tripod premises, mediated by future foresight and its effect on merger effectiveness in the higher education industry.Design/methodology/approachA quantitative survey method was implemented, with the data provided by senior managers of 14 universities that went through a merger from the years 2013–2016. The proposed model was tested using partial least squares (PLS) of structural equation modeling (SEM).FindingsThe results indicate that government support, competitive intensity and knowledge creation capability relate positivity to merger effectiveness, and these relationships are mediated by future foresight competence.Originality/valueThe study provides a better understanding of merger effectiveness in the higher education industry by identifying the role of future foresight competence in the application of strategy tripod and its contribution on merger effectiveness. Results indicate that future foresight competence contributes to the merger effectiveness and enables the effective implementation of the strategy tripod dimensions in higher education mergers.

Job meaningfulness, employee engagement, supervisory support and job performance: a moderated-mediation analysis

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Abinash Panda ◽  
Subhashis Sinha ◽  
Nikunj Kumar Jain
Keyword(s):  
Job Performance ◽  
Employee Engagement ◽  
Social Exchange ◽  
Structural Equation ◽  
Manufacturing Industry ◽  
Equation Modeling ◽  
Conservation Of Resources ◽  
Supervisory Support ◽  
Content Type ◽  
Job Meaningfulness

PurposeGuided by social exchange, broaden and build and conservation of resources theoretical perspectives, this study explores the moderated mediating role of supervisory support (SS) on the relationship between job meaningfulness (JM) on job performance (JP) through employee engagement (EE).Design/methodology/approachField data were collected from two hundred and nineteen executives and their thirty-eight supervisors of a large paint manufacturing industry through a time-lagged research design and was analyzed with partial least squares based structural equation modeling.FindingsFindings of this study indicate that JM mediated by EE contributes to JP, which means if an employee finds one's job meaningful, she/he is likely to be more engaged emotionally, psychologically and cognitively to deliver better JP. SS is also found to be salient as it moderates both direct and indirect relationships between JM and JP through EE.Research limitations/implicationsGeneralizability of the findings of this study should be done with caution. Though the study has time-laggard data from two different sources but missing longitudinal data restricts causality of relationships/findings.Practical implicationsThese findings are relevant for organizations given that organizational leaders can create a context, by appropriate job design and engaging work context that motivates employees to perform better in their jobs. Insights of this study will be useful for organizations to curate meaningful jobs for their employees and also groom leaders with requisite skills and competencies to help subordinates perform up to their potential.Originality/valueThis study is an attempt toward a better understanding of the interplay of JM, work engagement and SS on JP in a manufacturing set-up in India, which has not been hitherto examined in Indian context.

The contingent effects of coopetition on new product development under dual institutional interactions: evidence from China

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hao Shen ◽  
Yu Gao ◽  
Chuan Liu ◽  
Xiangru Chen
Keyword(s):  
Product Development ◽  
New Product Development ◽  
Structural Equation ◽  
New Product ◽  
Government Support ◽  
Equation Modeling ◽  
Institutional Environments ◽  
Dual Nature ◽  
Content Type ◽  
Business Context

Purpose Integrating the coopetition perspective with institutional theory, this study aims to determine how balanced patterns (BPs) and combinative patterns (CPs) of coopetition impact firms’ new product development (NPD) and how these effects are contingent on the various types of interactions between firms and the institutional environments in which they are embedded. Design/methodology/approach To test the hypotheses, 303 firms in China were surveyed. Based on the responses, the proposed model was estimated using structural equation modeling and hierarchical regression analysis. Findings The findings indicate that CP of coopetition enhances NPD but a BP of coopetition impedes NPD. Further, the results suggest that obtaining government support positively moderates the effect of the CP on NPD but negatively moderates the effect of the BP. Conversely, influencing government policy negatively moderates the effect of the CP but positively moderates that of the BP on NPD. Research limitations/implications The findings indicate that different patterns of inter-firm coopetition may have different effects on NPD, thus, providing a holistic and dynamic understanding of the contingent value of coopetition for NPD. The findings also suggest that the complex effects of coopetition on NPD are influenced by institutional interactions, introducing further contingencies to the process of coopetition-based innovation. Practical implications This study provides guidelines for managers seeking to fully understand and capitalize on the dual nature of coopetition: they should be cautious about the different patterns of competition – cooperation interaction and manage their interactions with institutional environments to increase the benefits and avoid the potential damage that different types of coopetition may bring. Originality/value This study offers direct insights into the balanced nature of coopetition and opens up an avenue for further exploration of the specific effects of cooperation dominance and competition dominance on firm performance in the business-to-business context. Moreover, the proposed contingency model offers a potential interface between institutional and coopetition research on NPD in marketing and strategic fields.

Dependence, trust, and 3PL integration: an empirical study in China

2017 ◽  
Vol 47 (9) ◽  
pp. 927-948 ◽  
Author(s):  
Baofeng Huo ◽  
Chen Liu ◽  
Haozhe Chen ◽  
Xiande Zhao
Keyword(s):  
Financial Performance ◽  
Information Sharing ◽  
Structural Equation ◽  
Mainland China ◽  
Performance Model ◽  
Equation Modeling ◽  
Content Type ◽  
Key Dimensions ◽  
Process Coordination ◽  
The Relationship

Purpose The purpose of this paper is to investigate relationships among dependence, trust, and integration in the Chinese 3PL context. 3PL integration is manifested in two key dimensions: information sharing and process coordination. Design/methodology/approach This study develops a dependence-trust-3PL integration-performance model and tests it using structural equation modeling with survey data collected from 361 companies in the Greater China area (i.e. mainland China, Hong Kong, and Taiwan). Findings The results show that switch dependence is indirectly related to information sharing and process coordination through goodwill trust, while goal dependence has direct links with both integrative behaviors. The authors also found that only goodwill trust mediates the relationship between dependence and integrative behaviors, while ability trust does not mediate any relationships. Finally, the analysis validated the direct link between process coordination and financial performance, but did not find a significant link between information sharing and financial performance. Originality/value Different from most previous studies on similar topics, this study examines the impacts of different types of dependence and trust on different 3PL integration dimensions. As a result, the findings are more specific and have direct relevance to effective 3PL relationship management in China.

The effect of supplier development initiatives on purchasing performance: a structural model

2005 ◽  
Vol 10 (4) ◽  
pp. 289-301 ◽  
Author(s):  
Cristóbal Sánchez‐Rodríguez ◽  
David Hemsworth ◽  
Ángel R. Martínez‐Lorente
Keyword(s):  
Supply Chain ◽  
Structural Equation ◽  
Manufacturing Industry ◽  
Structural Model ◽  
Essential Element ◽  
Equation Modeling ◽  
Supplier Development ◽  
Manufacturing Companies ◽  
Content Type ◽  
Different Levels

PurposeSupply chain management is an increasingly important organizational concern, and proper management of supplier relationships constitutes one essential element of supply chain success. However, there is little empirical research that has tested the effect of supplier development on performance. The main objective is to analyze the effect of supplier development practices with different levels of implementation complexity on the firm's purchasing performance.Design/methodology/approachThree supplier development constructs were defined: basic supplier development, moderate supplier development, and advanced supplier development. Three structural models were hypothesized and tested using structural equation modeling through field research on a sample of 306 manufacturing companies in Spain.FindingsIdentified important interrelationships among the various supplier development practices, basic, moderate, and advanced. Also indicated that the implementation of supplier development practices significantly contributes to the prediction of purchasing performance.Research limitations/implicationsThe use of a single key informant could be seen as a potential limitation of the study. The study was a cross‐sectional and descriptive sample of the manufacturing industry at a given point in time. A more stringent test of the relationships between the different levels of supplier development and performance requires a longitudinal study, or field experiment.Practical implicationsThis study focused on supplier development practices and revealed how involving suppliers in supplier development activities is important and may help buyers to increase their purchasing performance. The findings from the structural analysis should provide practicing managers with insights on how these practices and their benefits are related in terms of purchasing performance, thus affecting their ability to make better sourcing decisions.Originality/valueFills an important gap in the purchasing literature with respect to the area of supplier development. While there is much written about supplier development based on conceptual and case study research, this study is unique in that it is the first attempt to empirically model the relationships between different levels of supplier development and their impact on purchasing performance using a comprehensive set of practices.

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