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Article
Publication date: 16 October 2007

Dong Kyoon Yoo and Jeong Ah Park

The purpose of this paper is to show how firms can enhance their service quality to increase customer satisfaction and thus financial performance? In answer to this question, four…

7955

Abstract

Purpose

The purpose of this paper is to show how firms can enhance their service quality to increase customer satisfaction and thus financial performance? In answer to this question, four factors (i.e. employees, perceived service quality, customers, and financial performance) are critical to the success of service firms. The purpose of this research is to provide a research framework that examines relationships among employees, perceived service quality, customers, and financial performance.

Design/methodology/approach

This research develops valid and reliable instruments to measure employee training, a shared understanding, perceived service quality, customer satisfaction, and financial performance. Structural equation modelling is employed to test hypotheses following the research framework.

Findings

Drawing on a sample of 129 hotels, the results of this research show that employee training has an influence on perceived service quality. A shared understanding among employees plays a critical role in enhancing perceived service quality. In addition, customer satisfaction mediates between perceived service quality and financial performance.

Originality/value

This research illustrates that management may keep the consistency and reliability of perceived service quality by increasing the capability of employees through training and a shared understanding. In the literature, the relationship between perceived service quality and financial performance has shown a mixed picture; both positive and negative influences. This research provides empirical evidence that customer satisfaction mediates between perceived service quality and financial performance. This research may help service firms understand how the important elements (i.e. employees, customers, perceived service quality, and financial performance) interact to influence the overall performance.

Details

International Journal of Quality & Reliability Management, vol. 24 no. 9
Type: Research Article
ISSN: 0265-671X

Keywords

Article
Publication date: 7 January 2014

Hyoung Koo Moon and Byoung Kwon Choi

Researchers in the field of business ethics have posited that an organization's ethical climate can benefit for employees as well as organizations. However, most of the prior…

4332

Abstract

Purpose

Researchers in the field of business ethics have posited that an organization's ethical climate can benefit for employees as well as organizations. However, most of the prior research has been conducted at the level of the individual, not organization. Thus, the purpose of this paper is to examine how an organization's ethical climate has a positive influence on two its performance indicators – customer satisfaction and financial performance – with a perspective of organizational innovation.

Design/methodology/approach

The data were collected from 29 subsidiaries of a conglomerate in South Korea. Hypotheses were tested using the partial least squares (PLS).

Findings

The result showed that an organization's ethical climate was positively related to customer satisfaction as well as financial performance, and this relationship was mediated by perceived organizational innovation. Additionally, the positive influence of an ethical climate on employees’ perceived organizational innovation was mediated by their organizational commitment and the climate for innovation.

Originality/value

With a focus on innovation, the study explained how an organization's ethical climate influences customer satisfaction and financial performance. Furthermore, as was the case in studies conducted in other developed countries, the results derived from South Korea sample demonstrated that an ethical climate is critical for organizational performances in developing countries.

Details

European Journal of Innovation Management, vol. 17 no. 1
Type: Research Article
ISSN: 1460-1060

Keywords

Article
Publication date: 26 August 2014

Stephen Korutaro Nkundabanyanga, Joseph M. Ntayi, Augustine Ahiauzu and Samuel K. Sejjaaka

– The purpose of this paper is to examine the mediating effect of intellectual capital on the relationship between board governance and perceived firm financial performance.

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Abstract

Purpose

The purpose of this paper is to examine the mediating effect of intellectual capital on the relationship between board governance and perceived firm financial performance.

Design/methodology/approach

This study was cross-sectional. Analyses were by SPSS and Analysis of Moment Structure on a sample of 128 firms.

Findings

The mediated model provides support for the hypothesis that intellectual capital mediates the relationship between board governance and perceived firm performance. while the direct relationship between board governance and firm financial performance without the mediation effect of intellectual capital was found to be significant, this relationship becomes insignificant when mediation of intellectual capital is allowed. Thus, the entire effect does not only go through the main hypothesised predictor variable (board governance) but majorly also, through intellectual capital. Accordingly, the connection between board governance and firm financial performance is very much weakened by the presence of intellectual capital in the model – confirming that the presence of intellectual capital significantly acts as a conduit in the association between board governance and firm financial performance. Overall, 36 per cent of the variance in perceived firm performance is explained. the error variance being 64 per cent of perceived firm performance itself.

Research limitations/implications

The authors surveyed directors or managers of firms and although the influence of common methods variance was minimal, the non-existence of common methods bias could not be guaranteed. Although the constructs have been defined as precisely as possible by drawing upon relevant literature and theory, the measurements used may not perfectly represent all the dimensions. For example board governance concept (used here as a behavioural concept) is very much in its infancy just as intellectual capital is. Similarly the authors have employed perceived firm financial performance as proxy for firm financial performance. The implication is that the constructs used/developed can realistically only be proxies for an underlying latent phenomenon that itself is not fully measureable.

Practical implications

In considering the behavioural constructs of the board, a new integrative framework for board effectiveness is much needed as a starting point, followed by examining intellectual capital in firms whose mediating effect should formally be accounted for in the board governance – financial performance equation.

Originality/value

Results add to the conceptual improvement in board governance studies and lend considerable support for the behavioural perspective in the study of boards and their firm performance improvement potential. Using qualitative factors for intellectual capital to predict the perceived firm financial performance, this study offers a unique dimension in understanding the causes of poor financial performance. It is always a sign of a maturing discipline (like corporate governance) to examine the role of a third variable in the relationship so as to make meaningful conclusions.

Details

African Journal of Economic and Management Studies, vol. 5 no. 3
Type: Research Article
ISSN: 2040-0705

Keywords

Article
Publication date: 28 March 2023

Alkistis Papaioannou, Panagiotis Dimitropoulos, Konstantinos Koronios and Konstantinos Marinakos

The aim of the present study is to examine the impact of human resource (HR) practices (human resource empowerment, organizational culture and transformational leadership) on…

Abstract

Purpose

The aim of the present study is to examine the impact of human resource (HR) practices (human resource empowerment, organizational culture and transformational leadership) on innovation activities as well as the effect of innovation activities on perceived financial performance within sport services firms.

Design/methodology/approach

The proposed relationships were examined using empirical data from 172 managers of Greek sport services firms. Seemingly unrelated regression (SUR) analysis was used to investigate the role of human resource management (HRM) practices on innovation activities and whether innovation activities affected the perceived financial performance.

Findings

The results of the study indicated that HRM practices, such as human resource empowerment, organizational culture and transformational leadership, significantly impact innovation activities and subsequently innovation activities have a significant and positive effect on perceived financial performance as measured by satisfaction levels in relation to specific key performance indicators (KPIs) such as profit, ROI, sales volume and market share.

Practical implications

This study presents useful theoretical and managerial implications that can be used by sport service firms to assess the effects of HRM practices on innovation activities and perceived financial performance.

Originality/value

This study contributes to the literature on several merits. Firstly, the authors jointly estimate the impact of HRM practices on innovation and its concurrent effect on perceived financial performance, which is not methodologically considered before. Secondly, the authors incorporate a more thorough measure of perceived financial performance including four dimensions of performance, and finally the authors analyze a larger sample of sport services firms relative to previous studies, leading into more concrete conclusion on the research hypotheses.

Details

Evidence-based HRM: a Global Forum for Empirical Scholarship, vol. 12 no. 1
Type: Research Article
ISSN: 2049-3983

Keywords

Article
Publication date: 14 March 2022

Kar Hoong Chan, Lee-Lee Chong and Tuan Hock Ng

Objectively, this study aims to recognise the antecedents that influence the managers’ environmental practices behavioural intention and its impact on their companies’…

1233

Abstract

Purpose

Objectively, this study aims to recognise the antecedents that influence the managers’ environmental practices behavioural intention and its impact on their companies’ performance, namely, environmental and perceived future financial performance.

Design/methodology/approach

Standardised structured questionnaires are distributed through the investor relations department where the targeted respondents must be ranked manager position and above. A total of 107 usable responses were collected. To analyse the data collected, partial least square structural equation modelling is use.

Findings

Empirically, subjective and corporate norms are positively influencing the managers’ environmental practices intention. Corporate norm has the greatest effects among the antecedents. Furthermore, managers’ environmental practices intention is also found influential to their behaviour. Subsequently, the managers’ environmental practices behaviour is also positively influencing both environmental and perceived future financial performance. In which, managers’ environmental practices behaviour has a larger effect on their companies’ environmental performance. Finally, environmental performance is also positively influencing the perceived future financial performance.

Research limitations/implications

This study enhance the theoretical framework by integrating the extended theory of planned behaviour and norm activation model and extend the original theory of planned behaviour. Also, the greatest effect on corporate norm suggests companies to embrace corporate responsibilities internally to protect the environment. Practically, this study also provides few suggestions to the management so that they can cultivate environmentally friendly behaviour among the employees.

Originality/value

This study is integrating the extended theory of planned behaviour and norm activation model to examine the antecedents to the environmental practices intention among managers of the Malaysia listed companies and extends the original theory of planned behaviour to examine the impact of environmental practices behaviour to companies’ performance.

Details

Journal of Entrepreneurship in Emerging Economies, vol. 14 no. 5
Type: Research Article
ISSN: 2053-4604

Keywords

Article
Publication date: 30 May 2019

Amjad A. Abu-Elsamen, Mamoun N. Akroush, Nermeen A. Asfour and Hana Al Jabali

This paper aims to examine contextual factors affecting intention to purchase energy-saving products (ESPs), via a research model integrating environmental awareness, perceived…

Abstract

Purpose

This paper aims to examine contextual factors affecting intention to purchase energy-saving products (ESPs), via a research model integrating environmental awareness, perceived performance risk and perceived financial risk with the theory of reasoned action (TRA).

Design/methodology/approach

In total, 474 targeted Jordanian householders completed a structured survey, providing data for exploratory and confirmatory factor analyses and for structural path analysis to test the research model and hypotheses.

Findings

Attitude most strongly predicts purchase intention. Environmental awareness positively influences subjective norms and reduces perceived performance and financial risks, which are related to purchase intention.

Research limitations/implications

This research examines perceived performance and financial risks. Others including social and physical risks have research potential. Future research on international marketing strategy and cross-cultural consumer behavior could compare Jordan with its oil-producing neighbors.

Practical implications

Environmental awareness affects ESP purchase intention. Marketing strategy should focus on reducing perceived functional and financial risks while enhancing subjective norms by encouraging positive word of mouth.

Social implications

The findings enhance environmental sustainability by indicating ways of reducing energy consumption and increasing the usage of environmentally friendly products. The study addresses behavioral and social aspects of green products, whereas most ESP suppliers focus on technology.

Originality/value

The study’s major theoretical contribution is incorporating perceived risk and environmental awareness into the TRA to better understand intention to purchase ESPs. Empirically, it conceptualizes and tests an integrated model of determinants of attitudes and intentions with new insights from an emerging market.

Details

Sustainability Accounting, Management and Policy Journal, vol. 10 no. 2
Type: Research Article
ISSN: 2040-8021

Keywords

Article
Publication date: 1 June 2004

Sanjeev Agarwal and R. Kenneth Teas

A major theme for studies in international marketing is whether marketing programs and processes can be generalized across countries. This study tests the generalizability of a…

2741

Abstract

A major theme for studies in international marketing is whether marketing programs and processes can be generalized across countries. This study tests the generalizability of a model that predicts consumers' perception of value based upon extrinsic cues – such as brand name, price, retailer reputation, and country of origin – and their perceptions of quality, sacrifice, and risk. The study extends the perceived value model specified by Agarwal and Teas and tested in the USA. The results of this study, based on an experiment conducted in Sweden, suggest that while the overall structure of the model is supported across countries, the relative importance of the extrinsic cues may vary across countries.

Details

Journal of Product & Brand Management, vol. 13 no. 4
Type: Research Article
ISSN: 1061-0421

Keywords

Article
Publication date: 4 October 2011

Stephen K. Nkundabanyanga and Alfred Okwee

The purpose of this study is to establish the relationship between CSR, managerial discretion, competences, learning and efficiency and perceived corporate financial performance…

1071

Abstract

Purpose

The purpose of this study is to establish the relationship between CSR, managerial discretion, competences, learning and efficiency and perceived corporate financial performance in order to establish the legitimacy and value of CSR, taking managers' perspectives in Uganda.

Design/methodology/approach

The study used quantitative, correlation and regression analyses and collected primary data through a structured questionnaire on a sample of 100 firms.

Findings

The results indicate that managerial discretion and competences, learning and efficiency are significant predictors of perceived corporate financial performance, but CSR is not. However, the results show serendipitously that managerial discretion's predictive potential of perceived corporate performance is moderated by CSR.

Result limitations/implications

The study focuses on corporate social responsibility, a concept not very well appreciated and only understood as philanthropic and not really viewed as a means for improved financial performance in Uganda.

Practical implications

Our study implies that while upholding the ideals of CSR, companies in Uganda need to enhance managerial discretion in their contracting process and develop competences, learning and efficiency in order to impact positively on performance.

Originality/value

This study contributes to the dearth of CSR literature on the African experience by examining the perceptions of managers on CSR's predictive potential of corporate financial performance in Uganda.

Details

Social Responsibility Journal, vol. 7 no. 4
Type: Research Article
ISSN: 1747-1117

Keywords

Article
Publication date: 29 January 2020

Fatimah Noor Rashidah Mohd Sofian and Rusnah Muhamad

The purpose of this paper is to examine the relationship between the modified integrated Islamic CSRD index (MIICSRDi) and financial performance of Malaysian Islamic banks as…

Abstract

Purpose

The purpose of this paper is to examine the relationship between the modified integrated Islamic CSRD index (MIICSRDi) and financial performance of Malaysian Islamic banks as perceived by the stakeholders.

Design/methodology/approach

This paper used survey questionnaire with a purposive sample of 343 stakeholders of Malaysian Islamic banks. A theoretical framework was developed and tested by using partial least square analysis.

Findings

The findings reveal that there is a significant positive relationship between the MIICSRDi and financial performance as perceived by the stakeholders.

Research limitations/implications

There is a lack of empirical research proposing an Islamic CSRD framework that is suitable to be applied within the context of the Malaysian environment. Hence, this paper shows that MIICSRDi in line with the stakeholder theory, Shariah principles and ‘urf principle (customary practice) can be used by Malaysian Islamic banks to increase their performance.

Practical implications

MIICSRDi can be used as one of the strategies to improve the financial performance of Islamic banks. In fact, it can be instilled in the value-based intermediation introduced by Bank Negara Malaysia for the rebranding of Islamic banks.

Originality/value

The relationship between perceived MIICSRDi and perceived financial performance is explained in light of the stakeholder theory, Shariah principles (unity, equilibrium, free will, responsibility and tazkiyah) and ‘urf principle (customary practice).

Details

Journal of Islamic Accounting and Business Research, vol. 11 no. 8
Type: Research Article
ISSN: 1759-0817

Keywords

Article
Publication date: 16 August 2021

Kojo Kakra Twum, Daniel Ofori, Gabriel Keney and Bright Korang-Yeboah

This study aims to examine the factors affecting behavioural intention to use E-learning during the COVID-19 pandemic. The study applies the unified theory of acceptance and use…

2342

Abstract

Purpose

This study aims to examine the factors affecting behavioural intention to use E-learning during the COVID-19 pandemic. The study applies the unified theory of acceptance and use of technology 2 (UTAUT2) to identify the factors that predict intention to use E-learning. Also, the study examines the effect of personal innovativeness in information technology and perceived financial cost on intention to use E-learning.

Design/methodology/approach

The study adopted a cross-sectional quantitative study design involving 617 university students. The data was collected through an online survey due to the COVID-19 restrictions. The proposed hypotheses were analysed using partial least squares structural equation modelling.

Findings

The study found that personal innovativeness in information technology, perceived financial cost, performance expectancy, hedonic motivation and social influence have a significant effect on the intention to use E-learning. Contrary to expectation, habits, effort expectancy and facilitating conditions did not predict intention to use E-learning.

Research limitations/implications

The study was conducted on university students and did not include other school-going students and working professionals. Also, the study sample was not drawn from many universities. The study used a quantitative approach. The use of a mixed-methods approach could provide deeper insights into the factors affecting the intention to use E-learning in developing countries.

Practical implications

The practical implications inform policymakers and educational institutions on how E-learning adoption can be enhanced. In this context, social influence, performance expectancy, hedonic motivation, personal innovativeness and perceived financial cost are identified as predictors of intention to use E-learning. This study has implications for the development of E-learning systems and the promotion of the use of E-learning in the context of developing countries.

Originality/value

The study is amongst the few studies from a developing economy to use the UTAUT2 model to examine students’ intention to use E-learning. The study proposes the inclusion of personal innovativeness in information technology and perceived financial cost as factors predicting intention to use E-learning. Again, the study adopts importance-performance matrix analysis to provide decisional areas where management may improve for successful E-learning acceptance and use.

Details

Journal of Science and Technology Policy Management, vol. 13 no. 3
Type: Research Article
ISSN: 2053-4620

Keywords

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