scholarly journals The Effects of Digital Transformation on Firm Performance: Evidence from China’s Manufacturing Sector

2021 ◽  
Vol 13 (22) ◽  
pp. 12844
Author(s):  
Lei Guo ◽  
Luying Xu
Keyword(s):  
Financial Performance ◽  
Organizational Performance ◽  
Manufacturing Sector ◽  
Operating Performance ◽  
Digital Transformation ◽  
Manufacturing Companies ◽  
Performance Effects ◽  
Different Dimensions ◽  
The Impact ◽  
Benefits And Costs

With vast potentials in improving operations and stimulating growth, digital transformation has aroused much attention from firms across the world. However, the high costs associated with the transformation can not be ignored. Limited research has looked into the organizational performance effects of digital transformation. After examining the benefits and costs of digital transformation, this research makes an empirical study on the impact of digital transformation on firm operational and financial performance. The panel data from 2010 to 2020 of 2254 manufacturing companies in China suggests that the intensity of digital transformation is in positive correlation with the process-based operating performance, and in the U-shaped correlation with the profit-oriented financial performance. Further, we find that digital transformation has a much more lasting impact on operating performance than on financial performance. The conditions required (i.e., policy and innovation environment) to improve the operating performance via digital transformation are more easing. This research shows the differentiated effect of digital transformation on different dimensions of organizational performance and provides guidance for companies to set the goals for digital transformation.

scholarly journals Managing emergency situations with lean and advanced manufacturing technologies: an empirical study on the Rumbia typhoon disaster

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xiaodie Pu ◽  
Meng Chen ◽  
Zhao Cai ◽  
Alain Yee-Loong Chong ◽  
Kim Hua Tan
Keyword(s):  
Financial Performance ◽  
Organizational Performance ◽  
Operations Management ◽  
Advanced Manufacturing ◽  
Manufacturing Companies ◽  
Content Type ◽  
Emergency Situations ◽  
Advanced Manufacturing Technologies ◽  
Manufacturing Technologies ◽  
The Impact

PurposeThis study aims to examine the impact of lean manufacturing (LM) on the financial performance of companies affected by emergency situations. It additionally explores the role of advanced manufacturing technologies (AMTs) in complementing LM to enhance financial performance in emergency and non-emergency situations.Design/methodology/approachBoth survey and archival data were collected from 219 manufacturing companies in China. With longitudinal data collected before and after an emergency situation (i.e. Typhoon Rumbia), regression analysis was conducted to investigate the effects of LM and AMTs on financial performance in different contexts.FindingsOur results reveal an inverted U-shaped relationship between LM and financial performance in the context of emergency. We also found that AMTs exerted a positive moderation effect on the inverted U-shaped relationship, indicating high levels of AMTs that mitigated the inefficiency of LM in coping with supply chain emergencies.Research limitations/implicationsThrough simultaneous investigation of LM and AMTs as bundles of practices and their fit with different contexts, this study takes a systems approach to fit that advances the application of contingency theory in the Operations Management literature to more complex patterns of fit.Originality/valueThis study illuminates how AMTs support LM practices in facilitating organizational performance in different contexts. Specifically, this study unravels the interaction mechanisms between AMTs and LM in influencing financial performance in emergency and non-emergency situations.

scholarly journals PENILAIAN KINERJA KEUANGAN PERUSAHAAN MANUFAKTUR DENGAN INFLASI SEBAGAI VARIABEL MODERASI

2019 ◽  
Vol 1 (1) ◽  
pp. 61-78
Author(s):  
Asri Nur Wahyuni ◽  
Fitri Lukiastuti
Keyword(s):  
Financial Performance ◽  
Capital Market ◽  
Manufacturing Sector ◽  
Financial Statements ◽  
Financial Statement ◽  
Manufacturing Companies ◽  
Macroeconomic Variables ◽  
Several Variables ◽  
The Impact ◽  
Data Requirements

One consideration of an investor before investing is to look at the company's financial performance. There are several variables that influence the assessment of the company's financial performance, in the proposed research, it will examine the variables of liquidity, solvability, activity and profitability and macroeconomic variables, namely inflation as a moderating variable.The research object is all manufacturing sector companies for 5 years (2013-2017). Data requirements to be analyzed are obtained from the company's financial statements published through IDX and ICMD (Indonesia Capital Market Directory). The analytical tool used is MRA analysis (moderate regression analysis). Based on the results of the analysis, it is known that the influence of company financial statements that reflect the financial performance of manufacturing companies that are increasingly reinforced by inflation as a macroeconomic factor.The results of this study are expected to provide empirical contributions regarding the assessment of the company's financial performance based on financial statement analysis taking into account the impact of inflation that occurs and become the reference basis for investors before investing their capital.

scholarly journals The Impact of Cost- driven Strategic Outsourcing on the Organizational Performance of Manufacturing Companies in Nigeria

2019 ◽  
pp. 1-7
Author(s):  
Hafiz Baba
Keyword(s):  
Organizational Performance ◽  
Sampling Method ◽  
Manufacturing Sector ◽  
Competitive Environment ◽  
Manufacturing Companies ◽  
Staff Members ◽  
Strategic Outsourcing ◽  
The One ◽  
Management Staff ◽  
The Impact

The pivotal roles of the manufacturing sector in economic growth and sustainable development in both developed and developing countries have been documented in the literature. However, the highly competitive environment along with customers' demands for tailored products and services, has forced manufacturing companies, especially in Nigeria to experience slow growth. This study, therefore, seeks to determine the impact of cost drive outsourcing strategy on the organizational performance of manufacturing companies in Nigeria. The questionnaires were administered among the one hundred and twenty (120) management staff members of the sixty selected manufacturing companies in Nigeria through a purposive sampling method, and this was done personally by the researcher. Linear regression was used to analyzed and interpret the data used in this research. The study reveals that cost-driven is a major strategy that helps an organization in achieving its stated objectives in the global competitive environment. The findings further show that cost-driven has a significant impact on the organizational performance of the manufacturing sector in Nigeria.  Based on the findings, the study therefore, recommends that the management of manufacturing companies should adopt strategic and well thought out outsourcing partnerships in order to continuously reduce operating costs for growth.

The impact of soft TQM on financial performance

2018 ◽  
Vol 35 (7) ◽  
pp. 1360-1379 ◽  
Author(s):  
Ahmad Musbah Albuhisi ◽  
Ayman Bahjat Abdallah
Keyword(s):  
Financial Performance ◽  
Organizational Performance ◽  
Pharmaceutical Manufacturing ◽  
Equation Modeling ◽  
Manufacturing Companies ◽  
Total Quality ◽  
Content Type ◽  
Customer Perspective ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to explore the effect of soft total quality management (TQM) on organizational performance in the Jordanian pharmaceutical manufacturing sector using the balanced scorecard (BSC) perspective. It also examines the indirect effect of soft TQM on financial performance through BSC non-financial perspectives. Design/methodology/approach The study is based on survey data collected from 197 employees in managerial and non-managerial positions working in Jordanian pharmaceutical manufacturing companies. Validity and reliability analyses were performed, and the study hypotheses were tested using structural equation modeling. Findings The results indicated that soft TQM positively affected all BSC perspectives. Customer perspective positively affected financial performance while innovation and learning perspective and internal business process perspective did not. In addition, only customer perspective significantly mediated the relationship between soft TQM and financial performance. Originality/value This is one of the first papers to examine the effect of soft TQM on organizational performance in terms of BSC perspective in the pharmaceutical sector. In addition, this paper is the first to examine the mediating effects of the BSC non-financial perspectives on the relationship between soft TQM and financial performance.

The impact of applying the Common Customs Tariff on the armenian export of Cut and Polished Gems to Russia

2019 ◽  
pp. 33-41
Author(s):  
V. L. Harutyunyan ◽  
S. V. Dokholyan ◽  
A. R. Makaryan
Keyword(s):  
Manufacturing Sector ◽  
Practical Implication ◽  
Dominant Role ◽  
New Technology ◽  
Manufacturing Companies ◽  
Medium Term ◽  
Diamond Cutting ◽  
Global Trends ◽  
The Common ◽  
The Impact

The presented study discusses the issues of applying the Common Customs Tariff (CCT) rates of the Eurasian Economic Union (EAEU) on rough diamonds and the impact thereof on the exports of stones cut and polished inArmeniaand then exported toRussia.Aim. The study aims to identify the possible strategies Armenian diamond cutting and polishing companies could adopt as a response to the application of the CCT rates on rough diamonds and how it would affect exports to various destinations, namely to Russia.Tasks. The authors analyze the current state of the gems and jewelry sector and substantiate the need to either integrate it into the jewelry manufacturing sector or to apply various strategies to facilitate exports to either Russia or other destinations in the medium term in response to the application of the CCT rates.Methods. This study uses general scientific methods of cognition, including analytical and methodological approaches and elements of forecasting. Possible strategies the Armenian diamond cutting and polishing companies could adopt in the medium term in response to the application of the EAEU CCT rates are determined using the analytical research method, forecasts in the context of the developments in the Armenian gem processing and jewelry market and global trends, statistical data on the imports and exports of cut and polished gems and jewelry for 2014–2018 published by the UN Comtrade Statistics.Results. Statistics on the exports of processed diamonds from 2014 to 2018 highlights the issue associated with the loss of competitiveness suffered by Armenian companies (mainly in comparison with Indian diamond cutters). The major global trends in the diamond cutting and polishing business indicate that it could be virtually impossible for Armenian cutters and polishers to compete with Indian companies in the medium term if they do not comes to investing in new technology to achieve operational efficiency. For these companies, it is important not to lose the Russian market due to an increase in the tariff rate and concentrate on the processing of gems that are larger than 1 carat. Another strategy to avoid an increase in the customs tariff rates would depend on the Armenian government’s ability to negotiate with Russia in respect of direct imports of diamond stones from Russian manufactures. Two other options for Armenian cutters involve focusing on cutting and polishing of rubies, sapphires, emeralds, etc. or integrating into the jewelry sector either by being the primary supplier or by considering this business as a channel to sell processed diamond stones by setting up their own jewelry manufacturing companies.Conclusions. With CCT going into effect in January 2021 and India’s dominant role in the diamond cutting and polishing business, Armenia needs to carefully consider all of the strategies the Armenian companies could adopt, as discussed above. As a member state of the EAEU, Armenia freely exports to Russia, however, further exports to Russia would depend on Armenia’s ability to ensure that cost-effective operations are in place, or to concentrate on the processing of precious gems rather than diamonds, or to switch to the manufacturing of jewelry items as a major export item.Practical Implication. The findings of this study could be of interest to the Ministry of Economy of the Republic of Armenia and Business Armenia that could be used in elaborating the strategy for the development of Armenian gems and jewelry sector of the economy.

scholarly journals The Role of Digital Maturity Assessment in Technology Interventions with Industrial Internet Playground

Electronics ◽  
2021 ◽  
Vol 10 (10) ◽  
pp. 1134
Author(s):  
Annabeth Aagaard ◽  
Mirko Presser ◽  
Tom Collins ◽  
Michail Beliatis ◽  
Anita Krogsøe Skou ◽  
...  
Keyword(s):  
Assessment Tool ◽  
Digital Transformation ◽  
Assessment Tools ◽  
Manufacturing Companies ◽  
Digital Interventions ◽  
Maturity Assessment ◽  
Industrial Internet ◽  
Digital Development ◽  
Key Dimensions ◽  
The Impact

The use of digital technologies such as Internet of Things and advanced data analytics are central in digitally transforming manufacturing companies towards Industry 4.0. Success cases are frequently reported, and there is clear evidence of technology interventions conducted by industry. However, measuring the impact and effect of such interventions on digital maturity and on the organizational adoption can be challenging. Therefore, the research aim of this paper is to explore how the combination of the different methods of Industrial Internet Playground (IIP) pilots, Shadow Infrastructure (SI) and digital maturity assessment can assist in conducting and documenting the technical, as well as organisational, impact of digital interventions. Through an elaborate literature review of existing digital maturity assessment tools and key dimensions in digital transformation, we have developed a digital maturity assessment tool (DMAT), which is presented and applied in the paper to identify digital development areas and to evaluate and document the effects of digital interventions. Thus, the paper contributes with new knowledge of how the IIP pilot and SI combined with digital maturity assessment can support effective, transparent and documented digital transformation throughout an organisation, as explored through theory and a practice case.

Accounts Receivable: Payable Impact on Each Other with Special Reference to Financial Performance—A Study of Small Cap Companies

2020 ◽  
Vol 47 (4) ◽  
pp. 362-373
Author(s):  
Sangeeta Mittal ◽  
Monika
Keyword(s):  
Financial Performance ◽  
Trade Credit ◽  
Unit Root Test ◽  
Effective Management ◽  
Manufacturing Companies ◽  
Causality Test ◽  
Accounts Receivable ◽  
Accounts Payable ◽  
The Impact ◽  
Test Correlation

Trade credit is important as a funding source for companies having a liquidity shortage. Trade credit comprises of both accounts receivable and payable. The financial literature has discussed the impact of accounts receivable or payable on a company’s financial performance. However, there is a lack of studies on the effects of accounts receivable and payable on each other and further its effect on the financial performance of small-cap companies. Financial performance is determined using the profitability and value of the company. The researchers examined the financial performance implications of offering and receiving trade credit for a sample of 193 BSE small-cap manufacturing companies in India during the period 2011–2019. Granger causality test, Levin, Lin and Chu Unit root test, correlation and regression have been used for data analysis. The finding suggested that accounts receivable influenced the use of accounts payable. The aftermath of accounts payables is that it negatively and significantly affected the profitability and had an insignificant relationship with the value of the company. The result implies that effective management of accounts receivable can influence the application of accounts payable that improves a company’s profits and value. The current study is useful for SMEs’ managers in determining the financial performance and capital structure.

Supply chain integration and firm performance: an empirical study of Swedish manufacturing firms

2014 ◽  
Vol 24 (1) ◽  
pp. 20-31 ◽  
Author(s):  
Hooshang M. Beheshti ◽  
Pejvak Oghazi ◽  
Rana Mostaghel ◽  
Magnus Hultman
Keyword(s):  
Supply Chain ◽  
Financial Performance ◽  
Well Being ◽  
Survey Instrument ◽  
Global Market ◽  
Manufacturing Firms ◽  
Supply Chain Integration ◽  
Manufacturing Companies ◽  
Content Type ◽  
The Impact

Purpose – This article aims to explore the impact of supply chain integration on the financial performance of Swedish manufacturing firms. Design/methodology/approach – The literature review provided the foundation for the development of the survey instrument and hypotheses for the study. In addition, the survey instrument was tested by the experts in the field and modified before it was sent to the managers in the survey group. Findings – The findings show that supply chain integration at any level is beneficial to the financial well being of the firm. Companies with total supply chain integration reported the highest level of financial performance. Research limitations/implications – Data were collected from Swedish manufacturing firms without regard to the size of the firm. The results show that supply chain integration is beneficial at any level. Practical implications – The findings will assist managers with decisions regarding supply chain integration and its role as a critical factor in improving the financial performance of manufacturing companies. Originality/value – Limited empirical studies have been conducted in this area, especially in Sweden. This study provides insight for manufacturing managers with regard to the importance of supply chain management and the competitive nature of business in the global market.

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