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1 – 10 of over 82000Mathieu Dunes and Bernard Pras
This paper aims to analyze the impact of brand management system (BMS) practices on subjective and objective performance in both service- and product-oriented sectors.
Abstract
Purpose
This paper aims to analyze the impact of brand management system (BMS) practices on subjective and objective performance in both service- and product-oriented sectors.
Design/methodology/approach
Based on a “grounded-in-practice” approach to BMS, a comprehensive formative BMS scale is developed and its validity is assessed. The impact of BMS on subjective brand performance (i.e. predictive validity) and on objective financial performance is assessed. Data are collected from a sample of 298 brand managers and marketing directors in five business sectors (cosmetics, convenience goods, industry, bank/insurance and media) and from a financial database. Path analysis and multigroup analysis are performed to test mediating and moderating effects.
Findings
The results reveal that subjective brand performance (perceived brand performance) mediates the relationship between the BMS and objective financial performance of the firm and on each of the three BMS dimensions; and product-oriented (vs service-oriented) sector positively moderates the relationship between the BMS and subjective brand performance.
Research limitations/implications
The paper offers insights into adapting brand management practices along all BMS dimensions to achieve better business performance and improve objective financial performance in product-oriented activities. It highlights the role of brand management implementation, as well as the role of brand management in hierarchical relationships, in improving performance in service activities.
Practical implications
The formative BMS scale offers a tool which can be used to improve strategic decisions and give practical guidance on product vs service sector specificities. The indirect impact of a BMS on financial objective performance reinforces the legitimacy of brand managers and marketing managers.
Originality/value
This paper shows the impact of the BMS on objective financial performance by using a “grounded-in-practice” BMS scale. It also affords explanation on sectoral effects of brand management practices and their consequences on subjective and objective performance.
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Kimberly K Merriman, Sagnika Sen, Andrew J Felo and Barrie E Litzky
Organizational sustainability has become a priority on many corporate agendas. How to integrate sustainability efforts throughout the organization, however, remains a challenge…
Abstract
Purpose
Organizational sustainability has become a priority on many corporate agendas. How to integrate sustainability efforts throughout the organization, however, remains a challenge. The purpose of this paper is to examine two factors that potentially enhance incentive effects on employee engagement in environmental objectives: explicit organizational values for sustainability and the performance objective’s complementarity with incented financial objectives.
Design/methodology/approach
The authors employed a quasi-experimental design in which participants were randomly assigned to one of four conditions, including a status quo condition against which the treatments were contrasted. Participants (n=400) were comprised of a cross-section of US employees from a wide range of occupations and industries. A post hoc qualitative analysis provided additional insights.
Findings
Incentive effects were enhanced (i.e. preference for the environmental objective was significantly higher) when the environmental project offered complementary benefits for financial objectives, but not when organization values emphasized sustainability. An entrenched status quo bias for financial performance was discerned among a subset of the sample.
Research limitations/implications
Management scholars must pay close attention to the role of implicit norms for financial performance when investigating employee engagement in organizational sustainability efforts. From an applied perspective, framing sustainability objectives to emphasize financial benefits consistent with a financial mission may maximize employee engagement.
Originality/value
This study contributes to understanding of organizational sustainability efforts at the individual employee level of analysis, a conspicuously small part of the organizational research surrounding this topic.
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Sandeep Vij and Harpreet Singh Bedi
The purpose of this paper is to operationalize the subjective measures of business performance and assessing their justification for use in place of objective measures of business…
Abstract
Purpose
The purpose of this paper is to operationalize the subjective measures of business performance and assessing their justification for use in place of objective measures of business performance.
Design/methodology/approach
The study is based on a sample survey of 171 companies listed on Bombay Stock Exchange, India. A cross-sectional descriptive research design has been used. Exploratory factor analysis was used to assess the factor structure and dimensionality of objective and subjective measures of business performance. The psychometric properties of these measures and their interrelationship have been assessed through confirmatory factor analysis.
Findings
The study finds a strong positive correlation between subjective business performance and objective business performance. The study finds it justified to use the subjective measures of business performance.
Research limitations/implications
Response bias may have crept in because of self-reported measure used for the study. Future researchers may cross-verify the subjective perception of respondents with data available from the records of the firms. Second, the study focuses only on financial and operational indicators of performance. The future studies may widen the scope of business performance by incorporating the interests of other stakeholders like suppliers, government, environment and society in general.
Practical implications
The strategy researchers confronting the challenge of adopting appropriate measures of business performance can use either or both of subjective and objective performance measures, as suggested in this study. The study has suggestions for strategic decision makers regarding measurement of business performance in terms of financial as well as operational indicators.
Originality/value
The study operationalizes and validates two measures of performance, namely, subjective business performance and objective business performance. The study contributes to the strategic management literature by providing evidence for association between objective and subjective measures of performance.
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To study the nature of management accounting performance measures in the Financial Services Industry (FSI). The nature of Performance Measurement (PM), specially non‐financial PM…
Abstract
Purpose
To study the nature of management accounting performance measures in the Financial Services Industry (FSI). The nature of Performance Measurement (PM), specially non‐financial PM in FSI (service “shop”) has not been explored before.
Design/methodology/approach
This exploratory multiple case study consists of survey, interviews with questionnaire, individuals' (senior management and executives) interviews, collecting primary and secondary sources of information as well as literature surveys.
Findings
The results of this study demonstrate that the actual practices of the recent trends of management accounting in non‐financial PM are negligible in the studied financial institutions, and management of studied banks paying more attention to improve and measure financial performance than that to non‐financial performance for different reasons that affect the function/operation of FSI.
Research limitations/implications
The field study is being conducted without a conceptual/theoretical framework. An explanatory case study with particular theoretical framework/model could make possible to discuss the factors that affect non‐financial PM in this particular industry. Moreover, a comparative study with manufacturing industry would make the research results more robust.
Practical implications
A stable economic condition and competition that would increase the need and importance of non‐financial PM in FSI as well as in other services (and even in manufacturing industries).
Originality/value
This paper explores the nature of management accounting PM particularly in FSI.
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Belinda Luke, Jo Barraket and Robyn Eversole
The purpose of this paper is to review the growing emphasis on quantifiable performance measures such as social return on investment (SROI) in third sector organisations …
Abstract
Purpose
The purpose of this paper is to review the growing emphasis on quantifiable performance measures such as social return on investment (SROI) in third sector organisations – specifically, social enterprise – through a legitimacy theory lens. It then examines what social enterprises value (i.e. consider important) in terms of performance evaluation, using a case study approach.
Design/methodology/approach
Case studies involving interviews, documentary analysis, and observation, of three social enterprises at different life-cycle stages with different funding structures, were constructed to consider “what measures matter” from a practitioner's perspective.
Findings
Findings highlight a priority on quality outcomes and impacts in primarily qualitative terms to evaluate performance. Further, there is a noticeable lack of emphasis on financial measures other than basic access to financial resources to continue pursuing social goals.
Social implications
The practical challenges faced by social enterprises – many of which are small to medium sized – in evaluating performance and by implication organisational legitimacy are contrasted with measures such as SROI which are resource intensive and have inherent methodological limitations. Hence, findings suggest the limited and valuable resources of social enterprises would be better allocated towards documenting the actual outcomes and impacts as a first step, in order to evaluate social and financial performance in terms appropriate to each objective, in order to demonstrate organisational legitimacy.
Originality/value
Findings distinguish between processes which may hold symbolic legitimacy for select stakeholder groups, and processes which hold substantive, cognitive legitimacy for stakeholders more broadly, in the under-researched context of social enterprise.
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In order to fulfill the Shari'ah objective of promoting the welfare of society, institutions offering Islamic financial services (IIFS) are expected to consciously align their…
Abstract
Purpose
In order to fulfill the Shari'ah objective of promoting the welfare of society, institutions offering Islamic financial services (IIFS) are expected to consciously align their decisions and actions so that they are “socially responsible”. An integral policy approach towards corporate social responsibility (CSR) would constitute assigning explicit social objectives to IIFS over and above their economic, legal, Shari'ah, and ethical responsibilities. Alternatively, the task of undertaking socially‐oriented projects could be argued to be a discretionary responsibility of IIFS, with the objective of CSR being sought merely as a peripheral practice. Recent debates on the evolution of the practice of Islamic finance highlighted the profit and economic efficiency motives of IIFS rather than their concern for socio‐economic equity and welfare. A divergence between the economics literature on Islamic finance and the course taken by the practical field of Islamic banking and finance has been argued to be arising over the years. An assessment of this contention motivates this study. The paper aims to discuss these issues.
Design/methodology/approach
The study seeks to assess the corporate social performance (CSP) of a sample of 46 IIFS, located worldwide, which have responded to a questionnaire survey and whose CSR practices have been further verified by content analysis.
Findings
The findings revealed that the majority of the Islamic financial practitioners believed in attributing an integrated social role to IIFS. However, the practices of the IIFS reflected a more limited approach to CSR. Most of the IIFS were observed to be focused on meeting their legal, economic and Shari'ah responsibilities, that is, were concerned with the goals of profit maximisation and for their transactions to meet Shari'ah compliance. CSR was practised as a peripheral activity by the IIFS as opposed to being an integral, well thought‐out and deliberate policy decision of management.
Practical implications
If the welfare of Muslim communities and general human well‐being are to be promoted by IIFS – in line with the maqasid al‐Shari'ah – this study questions whether the organisational structure of IIFS should be revisited and be re‐orientated to facilitate their efficient performance in terms of contribution towards social development and human well‐being. The question about the most appropriate business model of the Islamic finance practice that will bring about such a socially responsible outcome is yet to be resolved. This could be an important area for future research.
Originality/value
This study rises to the call of some Islamic researchers who voiced out the need to assess the performance of IIFS vis‐à‐vis their social objectives. The study is among the pioneers to quantify CSR practices of IIFS by conducting an empirical analysis on the CSP of the IIFS.
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Atthaphon Mumi, George Joseph and Shakil Quayes
Microfinance institutions (MFIs) play an important role in economic development, with the dual objectives of social outreach and financial self-sufficiency. The purpose of this…
Abstract
Purpose
Microfinance institutions (MFIs) play an important role in economic development, with the dual objectives of social outreach and financial self-sufficiency. The purpose of this study is to examine the influence of organizational structure and variations in legal systems on the MFI dual performance goals.
Design/methodology/approach
Using a sample that includes 1,518 MFIs from 105 different countries over a period of 20 years, this study analyzes the data by applying a model that includes six categories of organizational structures and variations of legal systems, including both civil and common law, with accounting performance measures for the dependent variables.
Findings
The analyses provide robust results indicating that MFIs structured as non-governmental organizations (NGOs) have better social outreach than all other types of MFIs and exhibit better financial performance than MFIs registered as commercial banks or credit unions. Legal systems also played a role in MFI effectiveness.
Research limitations/implications
Given the increasing importance of MFIs on economic development globally, this study has relevance on how the impact of MFI structural characteristics and macro-level influences on their dual performance criteria can be translated into management approaches and governance policies that can increase the effectiveness of these dual (i.e. social and financial) goals.
Originality/value
This study is more comprehensive than prior research in addressing the influence of organizational structures of MFIs and legal systems on MFI dual mission, namely, its financial performance and social outreach, thereby increasing our understanding of policy implications in sustaining the MFI’s developmental role.
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Robin B. DiPietro, H.G. Parsa and Amy Gregory
The purpose of this paper is to determine the relationship between QSC (quality, service and cleanliness) inspection scores and financial performance in quick service restaurants.
Abstract
Purpose
The purpose of this paper is to determine the relationship between QSC (quality, service and cleanliness) inspection scores and financial performance in quick service restaurants.
Design/methodology/approach
Restaurant QSC inspection data were collected from 25 quick service restaurants of an international chain over a period of 18 months. Audited financial data were also collected for these participating restaurants. Using SPSS software, the data were analyzed for possible relationships between the restaurant QSC scores and the financial performance measured as total unit sales per week, revenues per available seat per week, and gross operating income for each month. Restaurant unit size is measured by total revenues per month.
Findings
Contrary to the commonly held belief, the relationship between QSC variable and restaurant performance is weak. This study found there was a “V” curve in QSC inspections and financial performance when restaurant size was chosen as the moderating variable.
Research limitations/implications
The specific items measured in the QSC may differ across organizations, although the broad categories remain constant. Certain operational factors such as price changes, special promotions, additional restaurant openings in the specific area, and local economic conditions could have confounded the results.
Practical implications
The knowledge obtained from this study could help restaurant organizations determine the level of weighting given to a specific inspection variable. This study also suggests the use of FQSC inspections instead of traditional QSC to emphasize financial performance (F). This study demonstrates the liability and limitations of tying QSC inspections to merit raises and bonus plans as normally done in restaurants.
Originality/value
This paper is the first empirical study to analyze the QSC inspections of restaurants related to financial performance. In contrast to the past studies with food safety/health inspections, the current study focuses directly on QSC inspections conducted more frequently and in greater detail by the quick service restaurants with emphasis on operational and financial performance.
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Fernando Muñoz, María Vargas and Ruth Vicente
This study aims to examine style-deviation practices in the socially responsible mutual funds (SMRF) industry i.e. how mutual funds game their stated financial objectives to earn…
Abstract
Purpose
This study aims to examine style-deviation practices in the socially responsible mutual funds (SMRF) industry i.e. how mutual funds game their stated financial objectives to earn a higher relative performance ranking. In addition, the consequences of such practices on sustainable scores and money flows are studied.
Design/methodology/approach
A sample of 454 US equity SRMFs is studied. This paper uses panel regressions controlling for time and style fixed-effects.
Findings
This study finds that 17.60% of SRMF managers in the sample are engaged in style deviation practices. These practices positively impact the sustainable performance of SRMFs and negatively impact their financial performance. One effect offsets the other and they consequently do not affect money flows. Another finding is that only investors with lower portfolio sustainability scores do show return-chaser behaviour.
Practical implications
This paper reveals that SRMF managers deviating from their stated financial style face a dilemma that is non-existent for their conventional peers that is style deviation practices affect financial and sustainable performance in opposing ways, whereas SRMF investor utility depends positively on both dimensions. The findings are not conclusive about the effectiveness of style deviation practices in attracting SRMF money flows.
Social implications
SRMF industry has experienced tremendous growth in the past decade. The increased competition in this industry has led managers to strive to attract investors, sometimes by relying on irregular practices that enhance their portfolio results. Regulators should consider how to avoid such perverse behaviour with a view to improving mutual funds transparency.
Originality/value
This is the first research that analyses style deviation practices and their consequences for the SRMF industry.
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Kurmet Kivipõld and Maaja Vadi
The aim of the study is to explore the relationship between organizational leadership capability and organizational performance in the context of market orientation in Estonian…
Abstract
Purpose
The aim of the study is to explore the relationship between organizational leadership capability and organizational performance in the context of market orientation in Estonian financial services organizations.
Design/methodology/approach
A total of eight organizations from the Estonian financial services sector participated in this study: the five largest banks (∼95 per cent of the market), the largest leasing organization (∼50 per cent of the market) and the two largest insurance companies (∼50 per cent of the market). The data used includes: aggregated and non‐aggregated evaluations by customers, and aggregated financial data. The methodology combines two approaches for testing the hypotheses: a quantitative OLS regression analysis of the evaluations from 555 customers, and ranking mean values of the aggregated assessments from customers and financial data in quartiles for all eight organizations.
Findings
The results of the study reveal a relationship between specific organizational leadership capabilities and organizational performance.
Research limitation/implications
The study suggests that the positive relationship between leadership and organizational performance at the organizational level explains how an organization manages in the context of its external environment. However, the results of the authors’ investigation are only valid in the Estonian financial services context, and the influence of organizational leadership capability on organizational performance in organizations in other service sectors could differ from these results.
Originality/value
This paper demonstrates that organizational leadership capability, expressed as the interaction between the main behavioural principles of an organization marked as organizational orientation and adaptation, has a clear relationship with organizational performance.
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