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1 – 10 of over 12000The purpose of the research is to analyse the ability of nonfinancial factors to predict value creation in Finnish technology firms. Nonfinancial factors are defined in terms of a…
Abstract
The purpose of the research is to analyse the ability of nonfinancial factors to predict value creation in Finnish technology firms. Nonfinancial factors are defined in terms of a large set of variables on organizational characteristics, strategy, competitive stance, consistency of performance measurement, management control systems (MCSs), and quality of MCSs. Financial ratios are used as a benchmark. The hypotheses are that, firstly, nonfinancial factors include important information for prediction and, secondly, that they provide incremental information over financial ratios. The nonfinancial variables are drawn from a postal survey carried out in 1999. Financial variables for 1998–2001 are obtained for 40 private firms of the 110 firms responding to the survey. Shareholder value is estimated on the basis of the four‐year financial data for 2001. This value divided by the shareholder book value (estimated‐to‐book value ratio, EBV) as well as its drivers are predicted by past non‐financial and financial data. Partial Least Squares (PLS) method is used to analyse the importance of information in prediction. The results give support to the hypotheses. Moreover, the results show that nonfinancial factors yield important incremental information over financial ratios when predicting value drivers, that is, growth, profitability, and risk. Especially, financial ratios are weak in predicting growth.
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George T. Haley and Usha C.V. Haley
Asserts that foreign multinational corporations (MNCs) investing in or expanding business operations in China, South and Southeast Asia often find themselves sparring with local…
Abstract
Asserts that foreign multinational corporations (MNCs) investing in or expanding business operations in China, South and Southeast Asia often find themselves sparring with local business groups. Draws on research and experiences with firms in the region in order to enhance understandings of competitive dealings with two business networks that dominate the Southeast Asian economies ‐ the Overseas Chinese and the Overseas Indians, collectively referred to as “the Networks”. Measures the sparring rings in Asia through the historical conditions that contributed to the Networks’ fighting stances and to Asian business environments. Proceeds to place the two Asian competitors under the spotlight by highlighting cultural differences between the Networks. Predicts the Networks’ movements by elaborating on their unique management and strategic decision‐making styles and discusses, finally, the implications of the Networks’ business practices for MNCs’ strategies and organizational restructuring in the Asian arena.
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Erica E. Harris, Ryan D. Leece and Daniel G. Neely
We investigate the determinants and consequences of nonprofit lobbying activity by analyzing 501(c)(3) nonprofit lobbying choices as reported on the primary tax form, Form 990…
Abstract
We investigate the determinants and consequences of nonprofit lobbying activity by analyzing 501(c)(3) nonprofit lobbying choices as reported on the primary tax form, Form 990. Under the Internal Revenue Code (IRC), nonprofits may lose their tax exempt status if they engage in a substantial amount of lobbying. We examine lobbying choices across three dimensions: (1) the test used to determine whether lobbying activities are substantial (i.e., making an H-election) (2) whether lobbying activities are directly related to the mission of the nonprofit (i.e., program related) (3) whether an affiliate nonprofit lobbies on behalf of a nonprofit. Results indicate lobbying choices are associated with the amount of lobbying reported and the amount of contributions received. Additionally, our results provide some evidence that nonprofit lobbying choices allowed under the IRC are underutilized.
Siti Zaleha Abdul Rasid, Che Ruhana Isa and Wan Khairuzzaman Wan Ismail
The purpose of this paper is to examine the linkages between management accounting systems (MAS), enterprise risk management (ERM) and organizational performance by examining MAS…
Abstract
Purpose
The purpose of this paper is to examine the linkages between management accounting systems (MAS), enterprise risk management (ERM) and organizational performance by examining MAS information characteristics that match ERM implementation and joint effects of MAS and ERM on organizational performance.
Design/methodology/approach
The research method involved administering a questionnaire to 106 financial institutions (FIs) in Malaysia. The respondents were chief financial officers or staff members holding the most senior positions in the finance department of the institutions.
Findings
The significant findings on the association between ERM and MAS show that implementation of ERM requires the use of sophisticated MAS information. ERM and MAS complement each other as both are integral to decision making, planning and control in an organization. The finding also substantiates the important role of ERM in enhancing non-financial performance.
Research limitations/implications
This study covered only MAS as part of sub-control systems in an organization. Future studies could investigate the link between a more comprehensive management accounting and control system and ERM. Furthermore, this study used perceptual measures of MAS, ERM and organizational performance.
Practical implications
The regulating body should promote best management practices of sophisticated MAS and ERM among FIs as these practices will create competitive advantage as well as help those institutions comply with regulations.
Originality/value
This study has contributed to the body of knowledge on the linkages between MAS, risk management system and organizational performance.
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Hasan Yousef Aljuhmani, Bashar Ababneh, Lawrence Emeagwali and Hamzah Elrehail
Although prior researchers have consistently established a significant relationship between different strategic stances and organizational performances across different research…
Abstract
Purpose
Although prior researchers have consistently established a significant relationship between different strategic stances and organizational performances across different research contexts, the mechanisms underlying this link remain unclear. This study attempts to fill this gap in the literature by testing the mediating effect of the use of strategic performance measurement systems (SPMS) on the relationship between strategic stances (prospector, defender, and reactor) and organizational performance in the public sector.
Design/methodology/approach
This research is based on data collected by surveying 224 managers at public organizations in the Turkish Republic of Northern Cyprus (TRNC) and conducts an analysis using structural equation modeling (SEM).
Findings
The study findings show that prospector strategy is positively associated with organizational performance through the use of SPMS. The reactor strategy was negatively related to organizational performance through the use of SPMS. The defender strategy shows mixed results in terms of its effect on the use of SPMS and organizational performance.
Research limitations/implications
The results obtained here provide strong evidence of the vitality of the use of SPMS for efficiency and effectiveness as a mediator between prospector strategy and organizational performance. To extend this position, future researchers could incorporate other contingent variables, such as structural autonomy, or use experimental design methods during economic austerity in the aftermath of the coronavirus disease 2019 (COVID-19) global pandemic.
Originality/value
This study represents an attempt to address public administration literature' general calls for grounded research that spells out to practitioners how different strategic stances are likely to affect the use of SPMS to achieve organizational performance levels in the public sector. The present study extends the public administration literature by examining the unexplored linkage of the use of SPMS through which strategic stances influence organizational performance in major public sector organizations.
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Khaled Hutaibat, Larissa von Alberti‐Alhtaybat and Khaldoon Al‐Htaybat
The purpose of this paper is to explore the concept of strategic management accounting (SMA) in an English university. It is in search of and investigates SMA practices and…
Abstract
Purpose
The purpose of this paper is to explore the concept of strategic management accounting (SMA) in an English university. It is in search of and investigates SMA practices and processes, and their meaning to participants in an English university context. The higher education (HE) institution under research had gone through a major change a couple of years prior to this study, including implementation of new strategic management and management accounting practices.
Design/methodology/approach
The approach taken is an interpretive one and the adopted methodology is grounded theory according to Glaser's evolved approach. Data collection took place largely through interviews and, where possible, participant observation.
Findings
The main findings of the research concern the core concept of the strategising mindset, which encapsulates the institutional, divisional and individual stance towards strategy and SMA. The strategising mindset is understood as the belief system that is adopted with regard to SMA, which is divided into a bureaucratic and an entrepreneurial mindset. According to the respective mindset, accounting for strategic management is dealt with and institutional members' perceptions of SMA are shaped. The particular mindset adopted depends on the context members were and are functioning, which reflects Bourdieu's theory of practice.
Originality/value
The main contributions are the emergent theoretical framework on SMA in HE, the concept of the strategising mindset and resulting views and conclusions on what SMA actually means in practice. To the authors' knowledge, no such theoretical framework has been published to date.
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Holger Joerg Schmidt, Nicholas Ind, Francisco Guzmán and Eric Kennedy
This paper aims to shed light on the emerging position of companies taking stances on sociopolitical issues and the impact this has on consumers.
Abstract
Purpose
This paper aims to shed light on the emerging position of companies taking stances on sociopolitical issues and the impact this has on consumers.
Design/methodology/approach
The paper uses focus groups, interviews and consumer experiments in various countries, to provide insights as to why brands are taking sociopolitical stances.
Findings
Consumers expect brands to take a stance on sociopolitical issues. However, to be credible, a stance needs to be rooted in a long-term commitment that aligns with the brand’s strategy and values. Perceived authenticity is key.
Research limitations/implications
Future studies should aim at broader generalizability and should address various industries.
Practical implications
Differentiating a brand through a sociopolitical stance requires a strategic approach. Brand managers need to identify which issues they should support, how to engage with them and the risks and opportunities involved.
Originality/value
While the impact of brands adopting a sociopolitical stance has been discussed in the mainstream media, there has been a lack of empirical evidence to support the arguments. The results of the four studies discussed in the paper provide insights and demonstrate the brand-related opportunities and risks of taking a sociopolitical stance.
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Jamil Anwar and SAF Hasnu
Firms face the paradox of adapting change and remaining stable to control uncertainty simultaneously to maintain their competitive position because both aspects are essential for…
Abstract
Purpose
Firms face the paradox of adapting change and remaining stable to control uncertainty simultaneously to maintain their competitive position because both aspects are essential for the firm’s effectiveness. This has raised a debate in the contemporary literature that whether firms should remain consistent or adapt flexibility in their strategic choice to produce better performance? The supporters of both the arguments provide substantial evidence in their favor. The purpose of this paper is to investigate the strategy-performance relationship in this context along with contingent effect of firm size and industry.
Design/methodology/approach
Empirical analysis using seven years financial data of 307 joint stock firms from 12 industries is done by applying Miles and Snow strategic typology. Scoring method is used to classify the strategic orientation of the firms. Univariate and multivariate regression models are applied to investigate the influence of strategy, firm size, and industry on firm performance both individually and collectively.
Findings
The results show that most of the firms in Pakistan are consistent in their strategic stance (43 percent) followed by flexible (40 percent) and reactors (17 percent). The mean differences in the performance of consistent, flexible, and reactor strategies show that both consistent and flexible strategies performed equally well and outperformed the reactors. However, there is significant variation in the performance of the strategic types due to the variation in firm size and industries whereas the contingent effect of firm size, industry, and strategy is statistically insignificant.
Originality/value
The methodology used for the identification of transition of strategic stance of the firms over time to know the consistent, flexible, and reacting behavior of the firms from archived data is the important contribution to the literature. The methodology can be replicated in longitudinal studies for identification of strategic groups in typological research.
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Carol Pomare and Anthony Berry
The purpose of this paper is to explore whether and how changes in the management control systems (MCS) of post-secondary institutions (PSIs) in Western Canada can be described…
Abstract
Purpose
The purpose of this paper is to explore whether and how changes in the management control systems (MCS) of post-secondary institutions (PSIs) in Western Canada can be described and explained in terms of formal and informal MCS; and whether and how changes in the MCS of PSIs in Western Canada can be described and explained in terms of an integrative contingency-based framework of MCS based on regulatory accountability systems, competitive markets and organizational culture?
Design/methodology/approach
The empirical research was undertaken with an exploratory mixed design. The first phase involved descriptive univariate and bivariate statistics as well as non-parametric statistics computed on data from annual reports and financial statements of 46 PSIs in Western Canada to quantitatively explore MCS. The second phase involved the grounded theory (GT) analysis of annual reports of 46 PSIs in Western Canada to qualitatively explore formal MCS in relation to changes in contingencies. The third phase involved the GT analysis of 20 semi-structured interviews of senior managers from PSIs in Western Canada to qualitatively explore informal MCS in relation to formal MCS and changes in contingencies.
Findings
The research showed that emphasis on formal MCS in Western Canadian PSIs resulted in biased compliance within informal MCS. The exploratory research also demonstrated that the distinction between formal and informal MCS was better understood in a wider framing of MCS in terms of regulatory accountability systems, competitive markets and organizational culture.
Originality/value
This research led to the elaboration of an exploratory theoretical framework to subsume the distinction between formal and informal MCS into an integrative contingency-based framework of MCS.
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INDIA: Iran stance reflects strategic concerns