Search results

1 – 10 of over 63000
Article
Publication date: 16 July 2021

Christina Juliana, Lindawati Gani and Johnny Jermias

The purpose of this study is to examine the performance consequences of misalignment among business strategy, organizational configurations and management accounting systems (MAS).

Abstract

Purpose

The purpose of this study is to examine the performance consequences of misalignment among business strategy, organizational configurations and management accounting systems (MAS).

Design/methodology/approach

The authors conducted a questionnaire survey to collect data and test the hypotheses developed in this study. The authors sent the questionnaires to the accounting and finance managers of the manufacturing companies listed on the Indonesia Stock Exchange. The authors received 259 responses from a total of 579 questionnaires sent or a 44.73% response rate. This study excludes 36 responses for further analyzes due to incomplete responses (five responses) and responses from lower-level employees (31 responses). The remaining 223 responses are used for statistical analyzes.

Findings

This study hypothesizes and finds that misalignments among business strategy, leadership style, organizational culture and MAS are negatively associated with both financial and non-financial performance.

Research limitations/implications

The study has three limitations. First, the authors intentionally collect data from the manufacturing industry to minimize the effect of data heterogeneity. To improve the generalizability of the study, future research might consider using data from other industries. Second, the study measures business strategy based on respondents’ perception of their companies’ strategy using indicators representing either product differentiation or cost leadership strategy. Future studies might use different ways of measuring business strategy using more objective empirical proxies such as research and development expenditures or premium price capability. Finally, this study conducts a survey and measures all the variables in a single period. Future studies might use a longitudinal approach to investigate the evolution of companies’ strategies and their impact on leadership styles, organizational commitment and MAS.

Practical implications

The results of the study will help companies in their search for senior executives, in building their organizational culture and in implementing their MAS. The study suggests that product differentiation companies should search for transformational leaders that empower their subordinates to take initiative and encourage innovative ideas in performing their tasks. In regard to MAS, the results suggest that product differentiation companies should implement broad focus MAS that emphasize the balance between financial and non-financial factors. By contrast, cost leadership companies should search for transactional leaders who emphasize on completing tasks on hand effectively and efficiently. In regard to MAS, the findings suggest that cost leadership companies will benefit more from using narrow focus MAS such as formal planning and budgeting, variance analyzes and cost-volume-profit analyzes.

Social implications

The findings of the study suggest that product differentiation companies should build a flexible culture that encourages subordinates to take the risk and effectively manage opportunities and challenges through changes and innovation. Furthermore, cost leadership companies should build a controlled culture that promotes adherence to policies and procedures to minimize costs and increase efficiency.

Originality/value

This paper introduces to the management and accounting literature the concept of fit among competitive strategy, leadership style, organizational culture and MAS and uses the two-stage method proposed by Ittner and Larcker (2001) to measure the degree of misalignment among business strategy and its contextual variables and, in turn, examines the impacts of the misalignment on financial and non-financial performance.

Details

International Journal of Ethics and Systems, vol. 37 no. 4
Type: Research Article
ISSN: 2514-9369

Keywords

Article
Publication date: 20 August 2018

Leo R. Sedlmeyer and Rocky J. Dwyer

The purpose of this paper is to explore leadership strategies of fire officers used by fire office leaders to manage costs associated with hazardous operations.

Abstract

Purpose

The purpose of this paper is to explore leadership strategies of fire officers used by fire office leaders to manage costs associated with hazardous operations.

Design/methodology/approach

The methodology employed in this study was a qualitative method using a case study design. The participants in this research study comprised 13 randomly selected fire officers from fire stations within a major metropolitan area located in the USA who had five or more years hazardous operations experience. In addition to interviews, workplace practices, policies and procedures related to hazardous operations and cost management were analyzed. Limitations of this study include both the sample size, and the geographic area, which impacts the ability to generalize the results of the study.

Findings

Four central themes emerged from the study, namely, servant leadership, partnership, accountability and creative staffing, which are crucial strategies to manage costs associated with hazardous operations. The findings of this study further indicate fire officers must distinguish between the most appropriate action for any given situation to achieve the fire department goals and objectives.

Practical implications

Managing cost effective hazardous operations through sound leadership strategies reduced injuries and saved lives, which results in cost savings in fire departmental budgets, labor costs and health care costs, which can further support the redirection of funds to critical areas of fire operations.

Originality/value

The value of identifying leadership strategies related to hazardous operations cost management may reduce injuries, save lives and ensure adequate budget allocations for fire departments. Social implications include innovative leadership strategies, which may enable fire officers to promote positive social change through saving lives of fire fighters and the citizens they serve.

Details

Disaster Prevention and Management: An International Journal, vol. 27 no. 5
Type: Research Article
ISSN: 0965-3562

Keywords

Article
Publication date: 19 November 2018

Juneho Um, Neungho Han, Tonci Grubic and Asad Ghalib

The purpose of this paper is to demonstrate the strategic alignment between product variety and supply chain (SC) focus through cost leadership or differentiation to…

1315

Abstract

Purpose

The purpose of this paper is to demonstrate the strategic alignment between product variety and supply chain (SC) focus through cost leadership or differentiation to improve business performance.

Design/methodology/approach

The research investigated product variety-related capabilities and strategies in SCs including level of variety, SC agility, SC cost efficiency, cost leadership, differentiation and business performance, and aimed to justify the theory by testing structural equation modelling using survey data from the UK and South Korea.

Findings

Differentiation links high product variety and agile SC while cost leadership is aligned with low product variety and SC efficiency. High product variety negatively impacts on cost leadership strategy. Also, product variety should be mediated by cost leadership or differentiation strategy to improve business performance. Companies in South Korea display higher SC agility, cost leadership and cost efficiency than companies in the UK, while the UK companies exhibit a higher level of product variety and differentiation than those in South Korea.

Research limitations/implications

The findings contribute to theoretical development of variety issues at the alignment of business strategy and SC management according to the level of product variety.

Originality/value

The findings can help international companies set up specific variety-related strategies to achieve global competitiveness.

Details

International Journal of Productivity and Performance Management, vol. 67 no. 9
Type: Research Article
ISSN: 1741-0401

Keywords

Article
Publication date: 25 January 2011

Vichak Phongpetra and Lalit M. Johri

The paper aims to investigate automobile manufacturers in Thailand and the effects that their business strategies had on their organizational performance.

7155

Abstract

Purpose

The paper aims to investigate automobile manufacturers in Thailand and the effects that their business strategies had on their organizational performance.

Design/methodology/approach

For empirical analysis, the method of confirmatory factor analysis and the structural modeling method were applied in order to refine business strategies, functional strategies, financial, and marketing organizational scales.

Findings

This research reveals that there are three significant business strategies of automobile manufacturers in Thailand which have a positive effect on the organization's financial and marketing performance: cost focus (the first priority), cost leadership (the second priority), and integrated cost an differentiation (the third priority). All the priorities of functional strategies that have a positive effect on the financial and marketing organization performance were subsequently analyzed as follows: manufacturing strategy (most significant), human resource management (the second most significant), marketing strategy (the third most significant), and the financial strategy (the least significant).

Research limitations/implications

Future research should select different random samples to assess the perceptions of front line managers of automobile manufacturers, dealers and automobile part firms.

Practical implications

The management of automobile manufacturers and automobile part firms should implement and improve their business strategies in terms of cost focus, cost leadership, and integrated cost leadership strategies achieve higher financial and marketing performance.

Originality/value

This paper contributes to the existing literature by reexamining the impact of business strategies of automobile manufacturers on organizational performance.

Details

International Journal of Emerging Markets, vol. 6 no. 1
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 10 January 2020

Murat Akpinar

This paper aims to clarify the fit of competitive strategies and firm-specific advantages (FSAs) with country-specific advantages (CSAs) in explaining manufacturing…

Abstract

Purpose

This paper aims to clarify the fit of competitive strategies and firm-specific advantages (FSAs) with country-specific advantages (CSAs) in explaining manufacturing location choices at product category level in the European automotive industry.

Design/methodology/approach

Seven hypotheses are formulated and tested using binomial logistic regression with data from 148 passenger car models (i.e. product category level) that are sold in Europe and manufactured in countries that offer CSAs of either cost advantages or differentiation advantages. The first four hypotheses test manufacturing location choices of product categories pursuing cost leadership strategy, differentiation strategy, focus strategy and hybrid strategy. The other three hypotheses test whether FSAs of R&D capability, marketing capability and operations capability will impact on the manufacturing location choice. The tests control for the type of passenger cars as well as the manufacturer’s region of origin.

Findings

While pursuing cost leadership strategy leads to manufacturing in countries that offer cost advantages, pursuing differentiation strategy as well as strong R&D capability and marketing capability result in manufacturing in countries that offer differentiation advantages. Focus strategy, hybrid strategy and operations capability do not have an impact on the manufacturing location choice at product category level.

Research limitations/implications

Conducting empirical research at product category level is subject to limitations in the choices of FSAs due to lack of availability of data.

Practical implications

Managers should assess the competitive strategies and FSAs of their product categories and then decide about manufacturing locations based on their fit with host country CSAs. Policymakers should understand the CSAs of their countries and target to attract manufacturing FDI from product categories with matching competitive strategies and FSAs.

Originality/value

The research contributes to discussions in explaining manufacturing location choices. Its originality lies in being the first study to test the fit of competitive strategies and FSAs of product categories with CSAs.

Details

Competitiveness Review: An International Business Journal , vol. 30 no. 3
Type: Research Article
ISSN: 1059-5422

Keywords

Article
Publication date: 5 February 2018

Nathan Eva, Sen Sendjaya, Daniel Prajogo, Andrew Cavanagh and Mulyadi Robin

While research and adoption of servant leadership are on the increase, little is known about the mechanisms through which it affects organizational performance. Drawing on…

5523

Abstract

Purpose

While research and adoption of servant leadership are on the increase, little is known about the mechanisms through which it affects organizational performance. Drawing on the contingency theory, the purpose of this paper is to examine the extent to which organizational strategy and structure affect the relationship between servant leadership and organizational performance.

Design/methodology/approach

Survey data were collected from 336 direct reports of CEOs/GM/MDs in Australian SMEs, and multiple regression analysis was used in the hypotheses testing.

Findings

The study found that the relationship between servant leadership and performance is moderated by the three-way interaction effects of differentiation and centralization as well as cost leadership and formalization.

Practical implications

This study shows that the positive effects of servant leadership on performance are more pronounced in organizations with minimal organizational structure that are not fixated on cost minimization. To that end, ensuring that there is a fit among organizational strategy, structure, and leadership is a key priority for senior executives.

Originality/value

This research is one of the first to examine the boundary conditions of servant leadership, demonstrating the effects organizational structure has on servant leadership’s influence. Further, this research extends the contingency theory by focusing on strategy and structure, rather than just structural impacts.

Details

Personnel Review, vol. 47 no. 1
Type: Research Article
ISSN: 0048-3486

Keywords

Article
Publication date: 5 June 2009

Shahid Ansari and Jan Bell

The primary purpose of this paper is to merge two traditions in management accounting change – design theory and action research – to explain findings from a case study of…

3277

Abstract

Purpose

The primary purpose of this paper is to merge two traditions in management accounting change – design theory and action research – to explain findings from a case study of introducing a cost leadership initiative.

Design/methodology/approach

This paper is an example of action research in which design theory explains events related to the implementation of a strategic cost leadership initiative at Shell Gabon, a Royal Dutch Shell unit in West Africa.

Findings

The evidence shows that technical accounting changes are, in the final analysis, change management exercises. Implementing change requires thinking as a designer and employing the logic of conjecture rather than scientific deductive or inductive reasoning. Successful implementation requires conjuring an image of a future reality that does not currently exist and making that image persuasive by connecting it with the values of the organizational participants.

Research limitations/implications

This case study provides five key lessons for future designers of accounting change. Implementers should: understand the mental models of organizational participants; show respect for the cultural values of the organization they are working in; meaningfully engage organizational participants; use structured processes to unfold change; and be ready to seize new opportunities and discard old game plans when necessary. The case study also reveals gaps in existing change management models and behavioural accounting theories.

Originality/value

This paper offers design theory as an alternative way of viewing organizational change and offers criteria for evaluating the use of design as a process and for assessing the value of the implemented change.

Details

Journal of Accounting & Organizational Change, vol. 5 no. 2
Type: Research Article
ISSN: 1832-5912

Keywords

Article
Publication date: 21 March 2022

Manish Bansal and Hajam Abid Bashir

This study aims to investigate the impact of business strategy on the classification shifting practices of Indian firms.

Abstract

Purpose

This study aims to investigate the impact of business strategy on the classification shifting practices of Indian firms.

Design/methodology/approach

The study considered cost leadership and differentiation strategy. Two forms of classification shifting, namely, expense misclassification and revenue misclassification have been examined in this study. Panel data regression models are used to analyze the data for this study.

Findings

The results show that managers of cost leadership strategy firms are more likely to be engaged in expense misclassification, whereas firms following differentiation strategy are likely to be engaged in revenue misclassification. Subsequent tests of this study suggest that firms following a hybrid strategy (mix of cost leadership and differentiation) prefer revenue misclassification over expense misclassification for reporting inflated operating performance. These results imply that firms prefer the shifting tool based on the ease and need of each shifting strategy. These results are consistent with several robustness measures.

Practical implications

The results suggest that investors should understand business strategy before developing insights about the accounting quality of firms. Investors should conduct a comprehensive review of income statement items before using items for portfolio evaluation.

Originality/value

To the best of the authors’ knowledge, this is the first study to examine the association between business strategy and classification shifting.

Details

Journal of Accounting in Emerging Economies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2042-1168

Keywords

Article
Publication date: 14 May 2020

Elsa Vieira and João Ferreira

The purpose of this paper is to identify the strategies that private fitness centres implement and to evaluate their impact on financial performance.

Abstract

Purpose

The purpose of this paper is to identify the strategies that private fitness centres implement and to evaluate their impact on financial performance.

Design/methodology/approach

Based upon a sample of 151 private fitness centres in Portugal, multivariate statistics report the implemented strategies and their effect on financial performance. We applied exploratory factorial analysis as our methodology to identify the types of strategy and the ANOVA in order to verify if there are differences of financial performance in the strategies.

Findings

The results obtained demonstrate how private fitness centres implement different strategies, including: cost leadership, differentiation, focus, quality of service, combined and stuck in the middle approaches. The relationship between strategies and financial performance, private fitness centres adopting a cost leadership strategy obtain the best financial performance levels in terms of the sales variable relative to any other strategy but with the combined strategy returning a better performance in terms of the return on assets when compared with the cost leadership strategy.

Originality/value

The originality of this paper stems from its identification of the strategies implemented by private fitness centres, thus, just what type of strategies are in effect across the fitness industry: leadership through cost, differentiation or a focused strategy. However, in addition to ascertaining just which strategies undergo implementation, it is also pertinent in determining just which strategy drives the best financial performance for private fitness centres given that private centres may only remain in the market when achieving financial sustainability. Therefore, this paper seeks to provide information for managers as regards the strategies implemented and their impacts on the financial performance of private fitness centres.

Details

Sport, Business and Management: An International Journal, vol. 10 no. 3
Type: Research Article
ISSN: 2042-678X

Keywords

Article
Publication date: 1 February 2003

Abdalla Hagen, Semere Haile and Ahmad Maghrabi

This study investigated the impact of the type of strategy on the type of environmental scanning activity of Egyptian CEOs at Egyptian banks. Results indicated that CEOs…

424

Abstract

This study investigated the impact of the type of strategy on the type of environmental scanning activity of Egyptian CEOs at Egyptian banks. Results indicated that CEOs with a costleadership strategy were involved in environmental scanning activities that provide information concerning threats. Their counterparts with a differentiation strategy were involved in environmental scanning activities that provide information concerning opportunities.

Details

International Journal of Commerce and Management, vol. 13 no. 2
Type: Research Article
ISSN: 1056-9219

1 – 10 of over 63000