E-Business Strategy and Firm Performance

2011 ◽  
pp. 56-66
Author(s):  
Jing Quan

Electronic business (e-business) has been popularly lauded as “new economy.” As a result, firms are prompted to invest heavily in e-business related activities such as supplier/procurement and online exchanges. Whether the investments have actually paid off for the firms remain largely unknown. Using the data on the top 100 e-business leaders compiled by InternetWeek, this chapter compares the leaders with their comparable counterparts in terms of profitability and cost in both short-run and long-run. The authors find that while the leaders have superior performance based on most of the profitability measurements, such superiority is not observed when cost measurements are used. Based on the findings, this chapter offers managerial implications accordingly.

Author(s):  
Jing Quan

Electronic business (e-business) has been popularly lauded as “new economy.” As a result, firms are prompted to invest heavily in e-business related activities such as supplier/procurement and online exchanges. Whether the investments have actually paid off for the firms remain largely unknown. Using the data on the top 100 e-business leaders compiled by InternetWeek, this chapter compares the leaders with their comparable counterparts in terms of profitability and cost in both short-run and long-run. The authors find that while the leaders have superior performance based on most of the profitability measurements, such superiority is not observed when cost measurements are used. Based on the findings, this chapter offers managerial implications accordingly.


Author(s):  
Jing Quan

Electronic business (e-business) has been popularly lauded as “new economy.” As a result, firms are prompted to invest heavily in e-business related activities such as supplier/procurement and online exchanges. Whether the investments have actually paid off for the firms remain largely unknown. Using the data on the top 100 e-business leaders compiled by InternetWeek, the leaders are compared with their comparable counterparts in terms of profitability and cost in both the short-run and long-run. It is found that while the leaders have superior performance based on most of the profitability measurements, such superiority is not observed when cost measurements are used. Based on the findings, managerial implications are offered accordingly.


2021 ◽  
Vol 9 (07) ◽  
pp. 324-334
Author(s):  
Oluwaleye, Taiwo Olarinre ◽  
◽  
Kolapo, Funso Tajudeen (PhD) ◽  
Ajayi, Foluso Isaac ◽  
◽  
...  

Evidence from the past studies revealed that capital structure has an impact on the firm performance. This research appraises the impact of capital structure on the performance of quoted life insurance companies in Nigeria from 2010 to 2019. The researchers used the panel cointegration model, autoregressive dynamic lag error correction model and pair wise granger causality test to measure the relationship among the variables. The study revealed that capital structure and firm performance has a long-run relationshipand 81% long run disequilibrium is corrected within a year. It was also apparent that there is a significant short run relationship between liquidity of life insurance and return on asset. The Granger causality outcome also shows that bidirectional causality exists between firm size (SIZE) and profitability (ROA) in the short run. We conclude that a large size of life insurance firm has more scope to make more profit in Nigeria context within the study period. The study recommended that to maximize firm’s performance managers must endeavor to obtain and maintain an optimum capital structure level among others.


2021 ◽  
Vol 14 (1) ◽  
Author(s):  
Tough Chinoda ◽  
Tafirei Mashamba

Orientation: The relevance of bank competition and economic growth for boosting financial inclusion is attracting unprecedented attention from academics and policymakers, mainly because of several persisting issues which, if addressed, can enhance the functionality of governments, businesses, individuals and the economy.Research purpose: The study aims to examine the interplay between financial inclusion, bank competition and economic growth in Africa.Motivation for the study: Previous literature focuses mainly on the nexus between financial inclusion and bank competition, financial inclusion and economic growth and bank competition and economic growth producing diverse results, with a dearth of literature on the trivariate link between the three variables.Research approach/design and method: This study employed the pooled mean group estimation-based panel autoregression distribution lag approach from 2004 to 2018. A panel data analysis for 20 African countries was used.Main findings: The study found a significant positive relationship between financial inclusion and economic growth in the long run. However, in the short run, economic growth significantly reduces financial inclusion. We also found that in the long-run bank competition reduces financial inclusion in line with the information hypothesis. However, in the short run the effect is significantly positive, consistent with the market power hypothesis.Practical/managerial implications: Policymakers and development agencies should implement measures that reckon incentives that can accelerate bank competition to bring on-board the unbanked. They should also take note of financial inclusion measurement in addressing financial inclusion challenges. Moreover, they should minimise barriers to financial inclusion to enhance bank competition and stability.Contribution/value-add: The study managed to discover how bank competition and economic growth influences financial inclusion.


2014 ◽  
Vol 30 (6) ◽  
pp. 35-36
Author(s):  
Antonios Panagiotakopoulos

Purpose – The purpose of the paper is to present a viewpoint based on an empirical study conducted by the author, which explored the motivational techniques used by 30 chief executive officers in the context of an advancing economy like Greece that faces a severe financial crisis and evaluated the impact of such motivational tools on staff performance. Design/methodology/approach – The viewpoint is based on a quantitative survey of 30 Greek large organizations involving the leaders of the firms and 113 workers. In all, 143 responses were collected concerning the main motivational techniques used by the participant leaders and their impact on employee behavior. Findings – Overall, the findings showed that in the short-term, both motivational models (i.e. “inspirational” versus “fear”) may lead to effective organizational performance. However, the main difference appears to be related to the long-term impact of each model on firm performance. In particular, the findings indicated that “fear motivation” is more likely to lead to poor firm performance in the long-run compared to “inspirational motivation” due to increased staff absenteeism and turnover. Practical implications – The core implication of the study is that “fear motivation” should be reconsidered by business leaders, as the particular motivational approach adopted has been based on a limited understanding around its overall impact on employee performance. As the analysis revealed, a motivational model focused around empowerment, trust and individual development may lead to better organizational results. Originality/value – It informs the existing management literature about the impact of different motivational patterns on employee performance, where our knowledge is limited.


2003 ◽  
Vol 4 (4) ◽  
pp. 213-224 ◽  
Author(s):  
Sanjay Goel ◽  
Ángela González-Moreno ◽  
Francisco J. Sáez-Martínez

Since technology is a versatile tool that can be deployed strategically, the authors hypothesize that there are certain non-random combinations of technology and business strategy choices that lead to superior performance. Findings from a sample of SMEs in the Spanish electronics industry show that there is a positive relationship between a co-alignment of the two strategies (business and technological innovation) and firm performance. In practical terms, this study shows that although SMEs can achieve equally good performance with different business strategies, within every business strategy, entrepreneurs must emphasize different sets of technological innovation dimensions to outperform the competition.


2012 ◽  
Vol 28 (5) ◽  
pp. 851 ◽  
Author(s):  
Roshayani Arshad ◽  
Siti Mariam Mansor ◽  
Rohana Othman

This study examines the effect of CSR disclosure and MO on firm performance as well as the mediating effect of CSR on the relationship between MO and firm performance. These relationships are examined based on content analysis of 242 Malaysian public listed companies annual reports for 2006, 2007 and 2008. Results of this study provide evidence that CSR activities communicated in corporate annual reports are important business strategy in creating continuous superior performance for organisations. The results also indicate that MO companies are integrating CSR activities into their business strategies. However, the insignificant mediating effect of CSR on the relationship between MO and firm performance indicates that MO and CSR strategies have not been effectively integrated in creating a synergistic effect that can bolster firm performance. Overall, findings in this study indicate the strategic value of CSR in creating economic sustainability for organizations even in an environment characterised by concentrated ownership structure where the companies may be less market focused.


2020 ◽  
Vol 66 (9) ◽  
pp. 4152-4172 ◽  
Author(s):  
Apostolos Filippas ◽  
John J. Horton ◽  
Richard J. Zeckhauser

New Internet-based “sharing-economy” markets enable consumer-owners to rent out their durable goods to nonowners. We model such markets and explore their equilibria both in the short run, in which ownership decisions are fixed, and in the long run, in which ownership decisions can be changed. We find that sharing-economy markets always expand consumption and increase surplus, but may increase or decrease ownership. Regardless, ownership is decoupled from individual preferences in the long run, as the rental rates and the purchase prices of goods become equal. If there are costs of bringing unused capacity to the market, they are partially passed through, creating a bias toward ownership. To test our theoretical work empirically, we conduct a survey of consumers, finding broad support for our modeling assumptions. The survey also allows us to offer a partial decomposition of the bring-to-market costs, based on attributes that make a good more or less amenable to being shared. This paper was accepted by Joshua Gans, business strategy.


1970 ◽  
Vol 16 (2) ◽  
pp. 107-120
Author(s):  
Cheryl Frohlich ◽  
C. Bruce Kavan ◽  
A. Coskun Samli

The primary assertion of this paper is that banks need to redirect and balance the focus of their business strategy from that of an internal (efficiency oriented) to an external (effectiveness oriented) marketing research program in order to achieve full profit potential. The return on assets (ROA) of banks has only fluctuated from 0.93% in 1992 to 1.24% in 1997. As one alternative to the flat ROA, the industry has engaged in a merger mania and invested in internal, transaction-oriented information systems in order to reduce costs and increase the current net income (efficiency driven). However, this business strategy results in short-run profits to the exclusion of opportunities that may result in long-run profits. It is obvious from this flat ROA that banks have not been effective. Therefore, in order to avoid the danger of banks becoming atrophied, the organizational effectiveness component must be brought into the overall architecture of the bank's information system rather than the simple current emphasis on processing efficiency. This change in business strategy requires a fundamental paradigm shift in the manner in which banking executives view their industry. The business strategy must change from the narrow "provider of financial service" orientation to the broader "fulfiller of financial needs" orientation. A marketing information research system facilitating such a major shift in orientation is presented.


2013 ◽  
Vol 10 (2) ◽  
pp. 159-179 ◽  
Author(s):  
Philip L. Martin

Agriculture has one of the highest shares of foreign-born and unauthorized workers among US industries; over three-fourths of hired farm workers were born abroad, usually in Mexico, and over half of all farm workers are unauthorized. Farm employers are among the few to openly acknowledge their dependence on migrant and unauthorized workers, and they oppose efforts to reduce unauthorized migration unless the government legalizes currently illegal farm workers or provides easy access to legal guest workers. The effects of migrants on agricultural competitiveness are mixed. On the one hand, wages held down by migrants keep labour-intensive commodities competitive in the short run, but the fact that most labour-intensive commodities are shipped long distances means that long-run US competitiveness may be eroded as US farmers have fewer incentives to develop labour-saving and productivity-improving methods of farming and production in lower-wage countries expands.


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