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To understand the use of metrics to attain alignment between the needs of the customer, strategic objectives, and the execution system. This paper examines the process by which metrics at the various levels are developed and the factors affecting this process.

The paper draws on a series of “deep” case studies and 45 interviews of key managers at various levels within three related businesses. Open and axial coding on the data was performed and themes reported.

The findings show how metrics can generate two types of synergy, financial, and strategic and that numerous factors affect metrics deployment and alignment. There also exists a tension between those metrics that encourage sales growth through innovation and market development (i.e. the so‐called top line metrics) and those metrics that reduce costs or asset investments (i.e. bottom line metrics).

Selective coding of the data to develop theoretical insight has yet to be performed.

Alignment is affected by both the goals used and the processes used in developing and implementing metrics. Furthermore, the study shows that those actions that foster cost reduction (e.g. through lean systems) may unintentionally hinder and limit those actions aimed at encouraging innovation.

The metrics alignment process is vital to effective management, yet the mechanisms of this process leading from understanding of the customer goals appropriate metrics for the execution system is effectively unexplored – a shortcoming that this paper begins to rectify.

The objective of this exploratory study is to investigate the “flow-through” or relationship between top-line measures of hotel operating performance (occupancy, average daily rate and revenue per available room) and bottom-line measures of profitability (gross operating profit and net operating income), before and during the recent great recession.

This study uses data provided by PKF Hospitality Research for the period from 2007-2009. A total of 714 hotels were analyzed and various top-line and bottom-line profitability changes were computed using both absolute levels and percentages. Multiple regression analysis was used to examine the relationship between top and bottom line measures, and to derive flow-through ratios.

The results show that average daily rate (ADR) and occupancy are significantly and positively related to gross operating profit per available room (GOPPAR) and net operating income per available room (NOIPAR). The evidence indicates that ADR, rather than occupancy, appears to be the stronger predictor and better measure of RevPAR growth and bottom-line profitability. The correlations and explained variances are also higher than those reported in prior research. Flow-through ratios range between 1.83 and 1.91 for NOIPAR, and between 1.55 and 1.65 for GOPPAR, across all chain-scales.

Limitations of this study include the limited number of years in the study period, limited number of hotels in a competitive set, and self-selection of hotels by the researchers.

While ADR and occupancy work in combination to drive profitability, the authors' study shows that ADR is the stronger predictor of profitability. Hotel managers can use flow-through ratios to make financial forecasts, or use them as inputs in valuation models, to forecast future profitability.

This paper extends prior research on the relationship between top-line measures and bottom-line profitability and serves to inform lodging owners, operators and asset managers about flow-through ratios, and how these ratios impact hotel profitability.

This paper aims to examine the impact of selected characteristics (rating, volume and variability) of online user-generated reviews on the bottom-line profitability of restaurants.

Restaurant-level review data are extracted from TripAdvisor and matched with firm-level data from the financial reports gathered from the Belfirst database of Bureau van Dijk. The resulting sample contains data on 2,297 Belgian firms over the period 2007–2018, for which 134,831 reviews are investigated. The author’s regression model of firm-level profitability is estimated against online review characteristics and various financial control variables, including past profitability. This research model and estimation technique address the endogeneity concerns that typically weaken this kind of study.

While comparable studies on hotels document a positive association between review characteristics and profitability, the authors find no relationship between review rating, volume and variability in the profitability of restaurants.

Due to the format of the financial reports of small and medium-sized enterprises (SMEs), data on turnover and cost of materials/services was not available for most restaurants in the sample, limiting our potential for analysis. In addition, our assessment of electronic word of mouth (eWOM) was limited to measures derived from user-generated reviews on TripAdvisor.

In the literature on eWOM, the importance of online reputation is hardly disputed, especially in the context of the hospitality sector. However, most research to date has focused on the hotel sector and top-line measures of success. This study uses restaurant-level financial data, focuses on bottom-line profitability, considers potential endogeneity issues and pays careful attention to the estimation technique. The results fail to establish a direct relationship between eWOM metrics and financial performance and are surprising, meriting further investigation to establish the underlying causes.

In contrast to prior studies on the impact of eWOM on restaurant performance at a group level, this study examines the impact on unit-level profitability, taking into account several potential sources of estimation bias. In addition, the authors challenge this finding with a battery of sensitivity tests, revalidating the absence of a relationship in each case.

The purpose of this paper is to present the concept of global “strategic sustainability”, represented by a conceptual framework, the “spheres of strategic sustainability”. The paper examines routes, solutions and a vision for corporate strategic sustainability in the macro context of the global physical environment and the planet. This builds on previous research identifying key drivers and strategies for corporate sustainability.

The paper is conceptual in nature and underpinned by Gaia theory, ecosystems theory and the laws of thermodynamics. These three offer specific foci for sustainability research including holism, integration and synthesis: without which, sustainability research would be difficult to achieve.

The paper identifies two major domains – “corporate” and “consumer” strategic sustainability. It examines the corporate domain in which routes are identified through responses to existing globalisation, corporate strategy and corporate culture.

The paper provides insight and preliminary conceptual development towards a full theoretical model of corporate and consumer strategic sustainability. The framework will guide future conceptual and empirical investigations and broaden and deepen our understanding of how firm's can construct strategic business models that incorporate sustainability.

The paper offers a conceptual framework that develops the concept of “corporate strategic sustainability” and provides positive, practical solutions to incorporating sustainability into business models. It also challenges the current dominant socio‐economic paradigm and sets the scene for a more positive eco‐paradigm that serves the present and future needs of the planet, environment, businesses and human society.

General Systems Company, Inc. has been directing its experience in installing quality systems throughout the world, as well as its research department’s focus on the development of new quality system strengths, to support and implement the quality growth opportunities of the twenty‐first century. The key is transforming quality from the past emphasis upon the reduction of things gone wrong for the customer, to emphasis upon the increase in things gone right for the customer, with the consequent improvement in sales and revenue growth. This customer value enhancement objective is a fundamentally new, different and much more effective business quality goal to drive the organization’s work from product and service design and development to customer satisfaction. For many organizations this requires a basic change in their business orientation and in their quality systems. Describes this new quality discipline, termed Total Quality System 2000 and its ten systems powers.

Production planning and resource allocation are ongoing issues that organisations face on a day-to-day basis. The purpose of this paper is to address these issues by developing a dynamic performance measurement system (DPMS) to effectively re-deploy manufacturing resources, thus enhancing the decision-making process in optimising performance output. The study also explores the development of dynamic capabilities through exploitation of the organisational tacit knowledge.

The study was conducted using six-stage action research for developing DPMS with real-time control of independent variables on the production lines to study the impact. The DPMS was developed using a hybrid approach of discrete event simulation and system dynamics by using the historical as well as live data from the action case organisation.

Through the development of DPMS and by combining the explicit and tacit knowledge, this study demonstrated an understanding of using cause and effect analysis in manufacturing systems to predict performance. Such a DPMS creates agility in decision making and significantly enhances the decision-making process under uncertainty. The research also explored how the resources can be developed and maintained into dynamic capabilities to sustain competitive advantage.

The present study provides a starting-point for further research in other manufacturing organisations to generalise findings.

The originality of the DPMS model comes from the approach used to build the cause and effect analysis by exploiting the tacit knowledge and making it dynamic by adding modelling capabilities. Originality also comes from the hybrid approach used in developing the DPMS.

The purpose of this paper is to provide an understanding of different explanations in mergers and acquisitions (M&A) research that deal with M&A performance. After five decades of M&A research, the findings on M&A performance are diverse and sometimes inconsistent with each other. The explanatory variables studied in the empirical works reflect primarily on researchers’ approach, construct, measurement techniques and data availability, leading to inconsistencies among the findings. In order to understand how researchers have measured M&A performance so far, the gaps in existing work and to identify the scope of future work, the authors conduct a systematic review of empirical M&A research on explaining M&A performance.

This research has been carried out as a structured assessment of past literature. The findings from selected research works have been categorized, grouped and summarized to discern a meta‐analytic view of the work carried out to date.

The M&A performance measures are diverse owing to heterogeneous views on what constitutes M&A performance and organization performance. They are categorized under Accounting Measures, Market Measures and Other Measures, including subjective assessments. The explanatory variables found in the studies are extensive and can be categorized under Deal Characteristics, Managerial Effects, Firm Characteristics and Environmental Factors.

The paper extracts some key trends in M&A performance studies carried out in empirical works over two decades. The findings help to identify drawbacks and set an agenda for future work.

Knowledge management (KM) has become part of common vocabulary in academic circles as well as in the business world. Whilst an increasing number of companies have embarked upon knowledge management initiatives, a large proportion of these initiatives remain technically focussed. The problem with this type of focus is that it excludes and neglects the true potential benefits that can be derived from knowledge management. In this paper we present a holistic model of KM which dynamically incorporates both tactical as well as strategic elements. Secondly in this paper we address a very important gap in the field of KM, namely how to measure KM by developing a framework which systematically allows for screening and evaluation. The measurement framework proposed enables leveraging knowledge assets effectively and efficiently. Without a holistic perspective which captures all the key elements and dimensions, KM initiatives will create marginal gains at best and failure at worst.

The purpose of this paper is to suggest that in the arena of human capital, risk-mitigation may overshadow risk-optimized decisions, and show how a more balanced approach can be achieved by understanding and applying frameworks from behavioral decision theory, as well as framing human capital risk using tools and frameworks that have a long history in other management arenas, such as finance.

Review risk-optimization frameworks in human resource and general management, distill key connections, suggest ways to enhance risk optimization for human capital, and offer suggestions for future research and practice.

For human capital, risk-mitigation may overshadow risk-optimization, a balanced approach can be achieved by applying behavioral decision theory and by using frameworks from other management arenas, such as finance.

Organizations must acknowledge and skillfully manage the connections between human capital and competitive strategy in this emerging arena of human capital risk, or they will miss key strategic opportunities.

Attention to human capital risk has largely emphasized minimizing or controlling unwanted outcomes, but the paper proposes that risk-optimization requires balanced attention to risk-taking as well.