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Article
Publication date: 14 February 2022

Shriram Pandey and Pramod Kumar

This paper aims to understand the Return on Investment (ROI) of academic libraries. It shows different aspects of returns on investment from academic libraries (ROI concept…

Abstract

Purpose

This paper aims to understand the Return on Investment (ROI) of academic libraries. It shows different aspects of returns on investment from academic libraries (ROI concept, components, calculating ROI). The study helps the academic libraries to know the efficiency, performance and achievement in terms of students, research scholars, teachers and staff should be enhanced to increase returns on library investment.

Design/methodology/approach

This research paper discusses various formulas for calculating ROI from the academic library, like the general ROI formula, the concept of origin ROI's formula and models. However, the study set forth some of the limitations. The study is limited to the ROI analysis of academic Libraries. It is believed that study may be helpful to the libraries to understand the concept of return on investment to offer better library services.

Findings

The study helps understands the concept of return on investment from academic libraries and services. In times of economic crisis and budgetary constraints, Library Advocacy needs to determine the economic value of resources in institutions to assist in decision-making. This paper presents more extensive study aimed at recognizing the importance of academic libraries. The economic and social pressure to affirm the position of libraries in academic libraries depends on demonstrating their importance, especially in terms of return on investment. Though it is important to get insight into returns, it has several challenges which are outlined and discussed.

Originality/value

This research can also be useful in decision-making, library collection development and system analysis of the institutional library. ROI presents an essential parameter for increasing the ranking system of the institution. ROI is considered the most important metrics for evaluating the value of libraries is the return on investment.

Details

Library Hi Tech News, vol. 39 no. 3
Type: Research Article
ISSN: 0741-9058

Keywords

Abstract

Details

Process Automation Strategy in Services, Manufacturing and Construction
Type: Book
ISBN: 978-1-80455-144-8

Article
Publication date: 11 August 2023

Abdoulaye Kaba, Ghaleb Awad El Refae, Shorouq Eletter and Tahira Yasmin

The return on investment (ROI) model is a tool used to measure the financial benefits and costs of an investment, in this case, the investment in digital library resources. By…

Abstract

Purpose

The return on investment (ROI) model is a tool used to measure the financial benefits and costs of an investment, in this case, the investment in digital library resources. By applying this model to the AAU digital library resources, the study seeks to determine whether these resources are providing sufficient value for the investment made in them.

Design/methodology/approach

The proposed ROI model has two distinct phases and utilizes two different sets of data to calculate the return on investment for a database subscription. In Phase I, the ROI is calculated based on the total number of downloads of full-text articles from the database during the academic year 2019–2020. This information is used to determine the financial returns of the database subscription costs. In Phase II, the ROI is calculated by examining the citations drawn from the Scopus database on a sample of 30 funded research projects for the College of Engineering during the year 2019. These data are used to determine the impact of the database subscription on research output and its contribution to the success of the College of Engineering's research projects. The two phases of the proposed ROI model aim to provide a comprehensive understanding of the value of the database subscription and its impact on both financial returns and research output.

Findings

The findings of the study indicated different results between Phase 1 and Phase 2 of the study. The positive ROI in Phase 1 suggests that the investment in online databases has a good return for the AAU, as they are gaining almost a dollar for every dollar spent. However, the negative ROI in Phase 2 is concerning. It suggests that the investment in the IEEE database is not generating a positive return for the AAU and may even be costing the institution money. Overall, these findings highlight the importance of measuring ROI in academic libraries, particularly in Arab countries where resources may be limited. By understanding the impact of library investments on institutional outcomes, libraries can make informed decisions about where to allocate their resources and how to optimize their services to best serve their communities.

Research limitations/implications

The findings of the current study were based on data collected from a specific sample, therefore, the findings may not be generalized to other academic libraries. A similar study with larger and more diverse samples can help to validate and extend the results of this study.

Originality/value

The findings of the study provide evidence that the proposed ROI model can be effectively applied in Arab countries and academic libraries in the Arab world, this could encourage more institutions in the region to adopt this model for evaluating their investments and projects. The study may also guide how to adapt the model to the specific cultural and organizational contexts of Arab countries.

Details

Performance Measurement and Metrics, vol. 24 no. 3/4
Type: Research Article
ISSN: 1467-8047

Keywords

Article
Publication date: 25 February 2022

Apeesada Sompolgrunk, Saeed Banihashemi, M. Reza Hosseini, Hamed Golzad and Aso Hajirasouli

The business benefits envisaged for BIM represent the main criteria for decision-making about BIM implementation – or shy away from BIM. Despite the significance, traditional…

Abstract

Purpose

The business benefits envisaged for BIM represent the main criteria for decision-making about BIM implementation – or shy away from BIM. Despite the significance, traditional evaluation techniques have difficulty to capture “the true value” of BIM from multiple levels and dimensions – as an effective evaluation method is supposed to. This study aims to identify the significant factors that affect BIM return on investment (ROI), develop an integrated model for companies and examine the influence of intangible returning factors of BIM on the rate of BIM implementation.

Design/methodology/approach

A cluster sampling technique was used; 92 questionnaires completed by Australian architecture, engineering and construction small- and medium-sized enterprises (SMEs) provided the basis to identify and analyse the key measurable returning factors, value drivers and strategic benefits associated with BIM ROI.

Findings

Applying the PLS-SEM technique, findings reveal that a lack of reliable quantification methods for the ROI factors associated with BIM significantly affects the organisation's commitments to implement BIM. In essence, the failure to adequately identify and assess these benefits could result in the system not being appropriately implemented and supported by executive sponsors, who give priority to hard and tangible ROI measurements.

Practical implications

The outcome of this study would be of direct appeal to policymakers, industry professionals and the academic community alike, in providing data-informed insight into the intersection between the implementation of BIM and the concept of ROI. Findings would provide a springboard for further research into using ROI factors to increase BIM implementation. Though the findings are directly applicable and contextualised for Australia, they provide lessons and offer a blueprint for similar studies in other countries and settings. That is, regardless of the context, findings raise awareness and provide a point of reference for the quantification of intangible returning factors rather than the tangible returning factors, as one of the first studies in its kind.

Originality/value

The study provides original insight in drawing attention to an untapped area for research in BIM implementation, namely BIM ROI. Apart from raising awareness around BIM ROI, the study is novel in providing a quantified model that establishes the links and level of impacts of various factors associated with BIM ROI. Findings of this study, particularly add value to the body of knowledge related to the business implications associated with BIM implementation in the context of Australian SMEs, while providing lessons for other countries and settings.

Details

Engineering, Construction and Architectural Management, vol. 30 no. 5
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 28 June 2022

Deneise Dadd and Matthew Hinton

This study aims to investigate the growing use of financial metrics (such as return on investment [ROI]) to measure performance and evaluate human capital (HC) investments.

Abstract

Purpose

This study aims to investigate the growing use of financial metrics (such as return on investment [ROI]) to measure performance and evaluate human capital (HC) investments.

Design/methodology/approach

The research employed an embedded case study approach, examining how one ROI approach was applied to evaluating HC investments, across three sectors (corporate, public health and international development).

Findings

Three major findings emerged in this study: First, interpretations of ROI can lead to ambiguity during implementation. ROI is interpreted trichotomously – metaphorically, as a desire for value; literally, as a metric; and procedurally, as a method for planning and evaluating HC investments. Second, understanding, measuring and tracking the domains of people performance (cognitive, affective and psychomotor) is vital to evaluating the impact of HC investments because this is where the change in behavior occurs. Third, although the logic model measures the change in process following an intervention (input-activity-output-outcome-impact), other approaches measure the change in behavior of people in the intervention (people performance).

Practical implications

These findings provide clarity for practitioners about challenges when applying ROI.

Originality/value

This is the first study to explore how the ROI financial metric is applied in a new domain by first examining its interpretation. It elucidates the use of ROI in practice, as well as the different purposes of key ROI approaches.

Details

International Journal of Productivity and Performance Management, vol. 72 no. 9
Type: Research Article
ISSN: 1741-0401

Keywords

Article
Publication date: 14 December 2021

Maayan Nakash and Dan Bouhnik

This paper focuses on the meanings attributed to the measurement of return on investment (ROI) in knowledge management (KM) initiatives in knowledge-intensive organizations. At…

Abstract

Purpose

This paper focuses on the meanings attributed to the measurement of return on investment (ROI) in knowledge management (KM) initiatives in knowledge-intensive organizations. At the heart of this exploratory research is the introduction of a unique coherent perspective of discipline experts regarding the ROI metric, as part of their perception of assessing effectiveness in this field.

Design/methodology/approach

The research begins with in-depth semi-structured personal interviews and continues with focus groups, as part of a qualitative research paradigm. The data were analyzed using a thematic analysis method, based on the grounded theory approach.

Findings

The findings provide empirical evidence regarding the significant challenges associated with the objective assessment of KM performance, which is deeply rooted in numerical-financial values. Despite the high status of ROI in the business environment, the authors find that decision-makers surprisingly avoid evaluating ROI for the most important resource of the organization, notwithstanding the immeasurable hopes that depend on this performance measure and the expectation of establishing the profitability of investment in organizational KM.

Originality/value

The uniqueness of this research is the adoption of the skeptical-critical research approach. For the first time, the authors interrogate the suitability and relevance of the general model of the ROI metric as a means of proving the value and contribution of well-managed knowledge to organizations. The authors call for adoption of a new integrative perspective for evaluating effectiveness, which will reflect the holistic set of KM in organizations.

Details

Aslib Journal of Information Management, vol. 74 no. 3
Type: Research Article
ISSN: 2050-3806

Keywords

Article
Publication date: 15 June 2004

Frederick R. Rohs

Measuring the Return on Investment (ROI) in training and development has consistently earned a place among the critical issues in the human resource development (HRD) field…

Abstract

Measuring the Return on Investment (ROI) in training and development has consistently earned a place among the critical issues in the human resource development (HRD) field. Leadership educators may soon find that program sponsors and administrators asking for ROI information as well. This paper reports the ROI of the Southern Extension Leadership Development (SELD) program as implemented at The University of Georgia. To calculate the return on investment, the ROI model proposed by Phillips (2002) was used. New extension agents hired between 1995 and 2001 who completed the probationary period with the Cooperative Extension Service formed the population for this analysis. Analysis of the data indicated that the employee turnover rate for the participant group was significantly lower than for the non-participant group. Based on the ROI model calculations, every one-dollar spent in the SELD program returned $3.86 in benefits and $2.86 (286%) in net benefits were returned on Investment.

Details

Journal of Leadership Education, vol. 3 no. 1
Type: Research Article
ISSN: 1552-9045

Article
Publication date: 3 December 2021

Apeesada Sompolgrunk, Saeed Banihashemi and Saeed Reza Mohandes

The purpose of this study is to identify and analyse the key measurable returning factors, value drivers and strategic benefits associated with building information modelling…

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Abstract

Purpose

The purpose of this study is to identify and analyse the key measurable returning factors, value drivers and strategic benefits associated with building information modelling (BIM) return on investment (ROI). The findings of this study provide researchers and practitioners with up-to-date information in formulating appropriate strategies to quantify the monetary value of BIM. The suggested research agenda provided would also advance what is presently a limited body of knowledge relating to the evaluation of BIM ROI.

Design/methodology/approach

To fill the identified gap, this study develops a comprehensive systematic review of mainstream studies on factors affecting BIM ROI published from 2000 to 2020. A total of 23 academic records from different sources such as journals, conference proceedings, dissertation and PhD theses were identified and thoroughly reviewed.

Findings

The reported BIM ROI ranged greatly from −83.3% to 39,900%. A total of 5 returning factors, namely, schedule reduction and compliance, productivity improvement, request for information reduction, rework reduction and change orders reduction were identified as the most commonly reported factors that influence BIM ROI. Four quantification techniques including general assumptions-based theoretical model, perceived BIM ROI based on survey, factors affecting BIM ROI with no reported ROI and quantified BIM ROI based on a case study were observed and pointed out in the review, together with their limitations. Finally, three major gaps were raised as the lack of consideration on the likelihood of BIM assisting in a construction project, intangible returning factors influencing BIM-based projects and industry standards in benchmarking BIM ROI.

Practical implications

The outcomes of this study would assist practitioners by providing the current evaluation techniques that address the limitations with BIM investment and present issues relating to the economic evaluation of BIM in the construction industry. It is also expected that presenting a deeper and wider perspective of the research work performed until now will direct a more focussed approach on productivity improvement efforts in the construction industry.

Originality/value

This study identifies and analyses the key measurable returning factors, value drivers and strategic benefits associated with BIM ROI on an industry scale rather than a particular organisation or a project scale.

Article
Publication date: 12 November 2019

Gohar Khan, Manar Mohaisen and Matthias Trier

Leveraging social action theory, social network theory and the notion of network externality, the purpose of this paper is to model two different return on investment (ROI

1422

Abstract

Purpose

Leveraging social action theory, social network theory and the notion of network externality, the purpose of this paper is to model two different return on investment (ROI) measures: the networked ROI which captures the network effect originating from a social media investment, and the discrete ROI which focuses social media discrete returns from individual users.

Design/methodology/approach

A field experiment was set up over a period of three months to test the effects of two variants of an advertisement campaign (a social vs a discrete ad) on the modeled networked and discrete ROIs.

Findings

The authors find that emphasizing discrete user actions leads to lower network gains, but higher monetary returns while the social action emphasis produces higher network gains, but lower monetary returns. The study further suggests that social action focus is preferable for brand promotion and engagement, whereas the discrete action focus is suitable for boosting sales and website traffic.

Practical implications

Several potential implications for social media researchers and marketers are also discussed.

Originality/value

The authors for the first time showed that that the social media returns are derived not only from individual actions taken by the user (e.g. likes and shares) but also from users’ social interdependencies and the additional exposure that results from network effects.

Details

Internet Research, vol. 30 no. 2
Type: Research Article
ISSN: 1066-2243

Keywords

Article
Publication date: 1 February 1984

John D. Stowe, Manchunath Vadakkepat and Todd Willoughby

While shareholder wealth maximization is accepted by finance theoreticians as the financial goal of the firm, the implementation of this goal is not simple. There can be…

Abstract

While shareholder wealth maximization is accepted by finance theoreticians as the financial goal of the firm, the implementation of this goal is not simple. There can be significant economic impacts of using an alternative goal such as return on investment (ROI) maximization instead of net present value maximization. Many areas of management discretion can be affected by the choice of ROI maximization versus profit maximization. Differential managerial decisions for these two alternative goals have been noted in such areas as investments in new plant and equipment, investments in research and development, and maintenance of plant and equipment. In addition, managers may have preferences among alternative accounting policies (depreciation schema and inventory valuation methods) that depend on their objective.

Details

Managerial Finance, vol. 10 no. 2
Type: Research Article
ISSN: 0307-4358

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