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1 – 10 of over 113000Hariyati Hariyati, Bambang Tjahjadi and Noorlailie Soewarno
The purpose of this paper is to examine the mediating effect of intellectual capital (IC), management accounting information systems, internal process performance and customer…
Abstract
Purpose
The purpose of this paper is to examine the mediating effect of intellectual capital (IC), management accounting information systems, internal process performance and customer performance (CP) on the relationship of strategies with financial performance (FP).
Design/methodology/approach
The population in this research was medium and large manufacturing company business units in Java. The business unit as the unit of analysis in this research is part of the organization that: is responsible for the production and marketing of a product or set of products; is formed by product type; has its own competitors which are different from competitors of other business units or divisions within a parent company; and has a manager who is responsible and has authority over the planning and implementation of strategies to achieve the specified profit target.
Findings
An innovation strategy that includes product innovation, process innovation and technology has an impact on FP if there is a good internal process performance, reliable management accounting information system and good CP. The internal process performance, which includes operations management processes, customer management processes, innovation processes and regulatory and social processes, optimizes the relationship of the strategy with FP. In this study, IC does not affect CP and internal process performance, nor does the management accounting information system affect FP. However, information systems affect FP through internal process performance and CP.
Originality/value
The originalities of this study are: the use of the continuous innovation strategy in an integrated manner between product innovation and process and information technology – this has never been conducted by other researchers, especially in Indonesia; the use of IC, management accounting information systems, internal process performance and CP as mediating variables; the use of an integrative approach by including variables of IC, management accounting information systems and non-FP as contextual variables related to contingency approaches that have never been conducted in previous research; the modeling of new related concepts with the one developed in the balanced scorecard; and using single mediating and multiple mediating on the influence of sustainable innovation strategies on FP.
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Analyze the importance of sustainable innovation strategy applied in manufacturing companies in Indonesia which affects the company's financial performance through several…
Abstract
Purpose
Analyze the importance of sustainable innovation strategy applied in manufacturing companies in Indonesia which affects the company's financial performance through several mediating variables.
Design/methodology/approach
The population in this research was medium and large manufacturing company business units in East Java. Business units are part of a company considered as the profit center. The business unit as the unit of analysis in this research is part of the organization that: (1) is responsible for the production and marketing of a product or set of products; (2) is formed by product type; (3) has its own competitors which are different from competitors of other business units or divisions within a parent company; (4) has a manager who is responsible and has authority over the planning and implementation of strategies to achieve the specified profit target.
Findings
Innovation strategy has a significant effect on financial performance. Human capital does not significantly mediate the relationship between innovation strategy and financial performance. Capital performance and internal performance do not mediate the relationship between innovation strategy and financial performance. Management accounting information system does not mediate the relationship between innovation strategy and financial performance. Internal process performance mediates the relationship between innovation strategy and financial performance. Management accounting information system and internal process performance mediate the relationship between innovation strategy and financial performance.
Originality/value
The difference in findings confirms that this research needs to be conducted. On the other hand, there is no research that has comprehensively tested the mediating effects of Human Capital and Management Accounting Information System in the relationship between Innovation Strategy and Internal Process Performance and the Impact on Corporate Financial Performance. The originality of this research can be seen in the use of contingency theory which narrows the gap between the industrial organization (I/O) paradigm and the resource-based view (RBV) regarding competitive advantage and performance. Specifically, this research introduces innovation strategy, human capital, management accounting information system, and internal business process performance as the contingency factors that affect financial performance. Second, empirically, this research tries to reduce the gap in empirical research by offering new research model and new research establishment at the level of strategic business units (SBU) in manufacturing companies in East Java. This research is expected to be useful for policy decision making, especially for managers who want to improve strategic business unit's financial performance.
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This study aims to develops the decomposed model to examine the influence of knowledge management orientation (KMO) dimensions (organizational memory, knowledge sharing, knowledge…
Abstract
Purpose
This study aims to develops the decomposed model to examine the influence of knowledge management orientation (KMO) dimensions (organizational memory, knowledge sharing, knowledge absorption and knowledge receptivity) on balanced scorecard outcomes (learning and growth, internal process, customer satisfaction and financial performance).
Design/methodology/approach
Survey data from 244 managers (in charge of KM projects in their companies) in large Taiwanese firms were collected and used to test the decomposed model using the structural equation modeling approach.
Findings
This study finds that knowledge sharing is the strongest predictor of internal process performance, while knowledge absorption is pivotal in improving customer satisfaction. The results also show that non-financial performance measures (i.e. learning and growth, internal process and customer satisfaction) directly and indirectly affect financial performance through cause-and-effect relationships.
Practical implications
In an increasingly dynamic environment, the building of internal knowledge stocks is likely insufficient, but knowledge must be moved between a firm and external entities (e.g. customers, business partners and education and research institutes) (i.e. building knowledge flows) to achieve increased customer satisfaction and financial performance.
Originality/value
Theoretically, the findings of this study suggest that the decomposed approach helps to understand the complex relationships embodied in the KMO–performance link, which cannot be surmised using a composite model. From the managerial perspective, the findings of this study may help academics and managers design and sustain KMO implementation throughout the organization to achieve higher effectiveness, efficiency and profitability.
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Kwabena Abrokwah-Larbi and Yaw Awuku-Larbi
This study aims to empirically investigate the relationship between artificial intelligence (AI) in marketing (AIM) and business performance from the resource-based view (RBV…
Abstract
Purpose
This study aims to empirically investigate the relationship between artificial intelligence (AI) in marketing (AIM) and business performance from the resource-based view (RBV) perspective.
Design/methodology/approach
A survey strategy was used in this study to collect data from 225 small and medium enterprises (SMEs) respondents who were on the registered list of the Ghana Enterprise Agency in the Eastern Region of Ghana. Structural equation modeling – path analysis was used to estimate the impact of AIM on the performance of SMEs.
Findings
The analyzed data shows that AIM has significant impact on the financial performance, customer performance, internal business process performance and learning and growth performance in the case of SMEs in Ghana. This study establishes the significance of AIM approach in achieving financial performance, customer performance, internal business process performance and learning and growth performance through the application of AIM determinants including, Internet of Things (IoT), collaborative decision-making systems (CDMS), virtual and augmented reality (VAR) and personalization.
Research limitations/implications
Aside the aforementioned significance of this research study, this study has limitations. The sample size of this research study can be expanded to include SME respondents in other geographical areas that were not considered in this study. Future research studies should concentrate on how AIM can analyze customer communications and information such as posts on social media to develop future communications that may enhance customer engagement.
Practical implications
The practical implications comprise of two key items. First, this research study encourages SME owners and managers to develop an AIM method as a fundamental strategic goal in their pursuit to improve SME performance. Second, SME owners and managers should increasingly implement the four determinants of AIM indicated in this research study (i.e., IOT, CDMS, VAR and personalization) to develop essential resources for effective application of AIM to improve their performance.
Originality/value
The results of this study provide a strong support to RBV theory and the proposition that AIM and its determinants (i.e., IOT, CDMS, VAR and personalization) should be recognized as an essential strategic resource for improving the performance (i.e., financial performance, customer performance, internal business process performance and learning and growth performance) of SMEs. This study also contributes to the current body of knowledge on AIM and management, particularly in the context of an emerging economy.
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Daniel Prajogo, Adegoke Oke and Jan Olhager
The purpose of this paper is to examine the value chain processes that represent the “black box” between supply logistics integration and competitive operational performance in…
Abstract
Purpose
The purpose of this paper is to examine the value chain processes that represent the “black box” between supply logistics integration and competitive operational performance in firms. To realize this objective, the authors develop a research model which comprises a series of linkages from supply logistics integration to operational outcomes using Porter’s concept of value chain and the relational view of resource-based theory as theoretical lenses.
Design/methodology/approach
The data set for testing the hypothesized relationships in this study was drawn from 232 Australian manufacturing firms.
Findings
The findings show that there is no significant direct relationship between supply logistics integration and competitive operational performance; rather, the relationship is fully mediated by inbound supply performance and internal lean production processes. Further, lean production processes have a positive effect on inbound supply performance.
Research limitations/implications
The study shows the importance of managing both internal (production processes) and external processes (logistics and supply chain) of firms’ operations in an integrated manner in which supply logistics integration act through key internal processes to impact competitive performance which the end customers actually experience.
Originality/value
This is the first study which uncovers what happens “in between” the incoming materials and the end outputs delivered by firms into the market. This “in between black box” is important in improving our understanding of how inbound supply activities are translated into outbound competitive performance outcomes.
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Chaichan Chareonsuk and Chuvej Chansa‐ngavej
The purpose of this paper is to explore the interrelationships of intangible assets to business performance. The paper reports an empirical evidence for the impact of three…
Abstract
Purpose
The purpose of this paper is to explore the interrelationships of intangible assets to business performance. The paper reports an empirical evidence for the impact of three elements of intangible assets: learning and growth, internal business process, and external structure on the business performance of the firm. The linkages between intangible asset elements and business performance are investigated in companies of various business sizes, business sectors and establishment ages.
Design/methodology/approach
The proposed model was adapted from the balanced scorecard strategy map. The primary data for analyzing and investigating the interrelationships between intangible assets and business performance were gathered by subjective opinion survey questionnaire. In all, 3,084 questionnaires were distributed to the top management. The numbers of qualified responses were 304 and the data were analyzed using the structural equation modeling technique.
Findings
The commonly assumed causal relationships are confirmed, i.e. the element of learning and growth has influence on internal business process, the element of internal process has effect on external structure, and the element of external structure, in turn, has effect on business performance.
Originality/value
Following the research findings, top management in companies of different sizes, business sectors, and establishment ages should understand the nature of interrelationships and recognize the importance of intangible assets. These findings will enable top management to realize the impact of intangible asset elements on business performance so that long‐term strategies for effective intangible asset management may be emphasized for sustainable competitive advantage of the firm.
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Laura Birou, Richard N. Germain and William J. Christensen
The purpose of this paper is to examine the relationships between internal process improvement investments, applied channel logistics knowledge, and financial performance for…
Abstract
Purpose
The purpose of this paper is to examine the relationships between internal process improvement investments, applied channel logistics knowledge, and financial performance for make‐to‐order (MTO) and make‐to‐stock (MTS) manufacturers. This study takes the position that knowledge, specifically tacit or applied knowledge, may serve as a key indicator of organizational performance. In this study, the tacit knowledge exhibited in intentional logistics integration activities is captured in the construct applied channel logistics knowledge.
Design/methodology/approach
A structural equation model, controlling for firm size and demand uncertainty, is used to examine these relationships. A sampling frame of 1,264 senior manufacturing “executives” provided 222 usable surveys representing 210 firms.
Findings
The results show that for MTO firms, higher investments in internal process improvement relate to higher applied channel logistics knowledge, whereas for MTS firms, the relationship does not hold, and this difference is significant. In addition, the results indicate a positive relationship between internal process improvement investment and financial performance for MTO firms, whereas again the relationship does not hold for MTS firms. Both MTO and MTS firms show increased financial performance when applied channel logistics knowledge increases, although the increase in financial performance is significantly greater for MTO firms.
Originality/value
Historically, the success of integration strategies has been postulated to be equally effective for MTO and MTS firms, a “one‐size‐fits‐all” approach to improving system effectiveness. However, given the inherent differences in these manufacturing strategies, this speculation deserves further investigation and serves as the focus of this research. The use of the tacit knowledge construct applied channel logistics knowledge is also unique and of value in understanding supply chain relationships.
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Stephanie Graham and Rodney McAdam
As pressure for companies to improve their environmental performance has intensified in recent years, research attention has shifted away from establishing a link between…
Abstract
Purpose
As pressure for companies to improve their environmental performance has intensified in recent years, research attention has shifted away from establishing a link between environmental practices and performance towards consideration of other factors that might facilitate performance improvements. The purpose of this paper is to: first, to investigate whether internal support processes interact with pollution prevention by positively moderating the relationship between pollution prevention and environmental performance; and, second, to assess whether the relationship between pollution prevention and cost performance is mediated by environmental performance.
Design/methodology/approach
It uses a cross-sectional survey of 1,200 UK-based food processing firms to gather information on environmental practices and performance. Regression analysis was conducted on a sample of 149 responding firms to assess the hypothesised relationships.
Findings
Support was found for two of the four moderated relationships hypothesised namely, suggesting that internal support processes support the environmental performance of some pollution prevention practices. Strong support for a mediated relationship between pollution prevention, environmental performance and cost performance was provided by the results.
Originality/value
This study provides an original contribution to the literature on the performance outcomes of environmental practices by considering a number indirect relationships between environmental practices and performance. This has implications for the interpretation of the relationship between environmental practices and performance.
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John Stephen Sands, Kirsten Nicole Rae and David Gadenne
This study aims to investigate the feasibility of integrating the social, environmental and innovation processes within the four-perspective sustainability balanced scorecard…
Abstract
Purpose
This study aims to investigate the feasibility of integrating the social, environmental and innovation processes within the four-perspective sustainability balanced scorecard (SBSC) model by determining the extent of linkages between and within the four SBSC perspectives.
Design/methodology/approach
A survey collected responses from senior management and middle management of large Australian companies.
Findings
The findings support several positive significant associations. Direct associations are found between value-creating processes within the internal process perspective. These results support the feasibility of integrating environmental, social and innovation-orientated value-creating process into the internal process of the four-perspective SBSC model. The results also provide evidence about the extent to which direct or indirect associations exist between the four SBSC perspectives: first, direct association of human capital (learning and growth perspective) with value-creating processes (internal processes perspective); second, direct association of value-creating (internal processes perspective) with customer value (customer perspective); and third, direct and indirect associations of value-creating (internal processes perspective) with financial performance (FP; financial perspective).
Research limitations/implications
Several limitations are acknowledged related to cross-sectional data, senior and middle managers’ perceptions and assumptions underpinning structural equation modelling.
Practical implications
The implications for practice from this study concern how organisational management should relate to their stakeholders while providing value in their FP.
Social implications
These associations reflect the influence of stakeholders’ recognised needs on process and product innovation. These needs highlight the benefits of focusing on future-orientated environmental budgets and ongoing employee training that lead to customer value and FP.
Originality/value
This is an initial in-depth study of a four-perspective SBSC model that provides an effective means of integrating social, environmental and innovation processes within the traditional four SBSC perspectives.
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The purpose of this paper is to investigate the impact of customer-focus on small medium enterprise (SME) performance from the perspective of a resource-based view (RBV).
Abstract
Purpose
The purpose of this paper is to investigate the impact of customer-focus on small medium enterprise (SME) performance from the perspective of a resource-based view (RBV).
Design/methodology/approach
This research study implemented a survey strategy to gather data from 255 respondents on the registered list of Ghana Enterprise Agency (GEA) in the eastern region of Ghana. Scales used to gather data were operationalized from previous research studies. A structural equation modeling (SEM) path analysis was used to estimate the impact of customer-focus on the performance of SMEs.
Findings
The outcomes of this study indicate that customer-focus has a significant positive impact on SME performance, hence backing the current demand for investigating the distinct influence of customer-focus on SME performance. The results show that customer-focus has a positive and significant relationship with financial performance, customer performance, internal business process performance and learning and growth performance, thus supporting the literature on the positive impact of customer-focus on SME performance. Therefore, customer-focus determinants used in this study, including co-creation, networking ties, customer insight and artificial intelligence marketing (AIM), are critical to the optimization of SME performance.
Research limitations/implications
Notwithstanding the importance of this research study mentioned earlier, the study has limitations. Notably, the sample size of this study can be increased to capture SME respondents in other geographical zones that were not included in this study. Future research studies may address how business environment conditions moderate the relationship between customer focus and performance, and also the cause-effect of the relationship between customer focus and business environment conditions on SME performance.
Practical implications
The practical implications consist of two main items. First, this study empowers SME owners and managers to develop a customer focus technique as a central strategic goal in their quest for SME performance optimization. Second, SME owners and managers should progressively exploit the four determinants of customer focus which include co-creation, networking ties, customer insight and (AIM in order to accrue important resources for effective utilization of their customer focus competences as a way to enhance their performance.
Social implications
This study is targeted at the sound development of SMEs to bring about poverty alleviation and employment. Poverty, unemployment and poor living standards are recognized as vital social challenges in most emerging economies. The establishment of customer focus as an important strategic capability provides opportunities for SME survival, profitability and growth.
Originality/value
Generally, the findings of this research study provide a strong backing to RBV perspective and the proposition that customer-focus and its determinants (i.e. co-creation, networking ties, customer insight and AIM) should be acknowledged as a vital strategic resource for optimizing the performance of SMEs. This research study also provides new knowledge contribution to the present body of knowledge on customer-focus orientation and management literature, particularly in the context of an emerging economy.
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