INTEGRATED STRATEGIC FINANCIAL AND OPERATIONS MANAGEMENT FOR TECHNOLOGY INTENSIVE MANUFACTURING FIRMS

The purpose of this study is three-fold. First, examine the effect of ERM on the operational and financial performances; second, the effect of competitive advantage on operational and financial performances; and third, explore the mediating roles of competitive advantage and financial literacy on the relationship between ERM and the operational and financial performances of SMEs in Ghana. Sampling 8,384 SMEs purposively, the analytical framework was based on SMART PLS-SEM. The empirical results reveal that ERM just as competitive advantage are positive determinants of financial and operational performances of SMEs. Financial literacy does not mediate the relationship between ERM and financial performance, although it partially mediates the relationship between ERM and operational performance just as competitive advantage partially mediates ERM and financial performance. Competitive advantage mediates between ERM and operational performance of SMEs in Ghana. Therefore, effective ERM practices and competitive advantage strategies are necessary conditions for the long-run sustainability of Ghanaian SMEs by way of improved financial and operational performances, given that the key officers are financial literate.

In this paper, we examine the changes of the firm's financial and operational performances after horizontal M&A, and further analyze the role of the operational performance, from the perspective of supply chain integration. Through the collection of 523 M&A samples from 2005 to 2013, we match the firms' performances of one year before, one year after and two years after the completion of the merger. After excluding the influence of the industry, we conduct Wilcoxon signed-rank test to analyze the changes, and the results indicate that the financial and operational performances after the horizontal M&A are significantly lower than those of the previous year. What's more, by matching the corresponding samples of non-M&A, multiple regression analyses show that the horizontal M&A and the operational performance have a significant interaction role in the influence of the firm's financial performance. Specifically, the operational performance seems to assume the role of “amplifier” to enhance the horizontal M&A's relationship with the firm's financial performance.

Strategic human resource management (SHRM) seeks to create alignment between human resource management (HRM) practices and business strategy (strategy fit); linking HR strategies, policies, and practices within the functional units of the HR department (intra-functional fit); maintaining the status of the HRM department within corporate strategic plan (HR-roles-position fit); and alignment of HRM functions with all other departments (cross-functional fit). This study investigates the effects of SHRM on organizational performance. Data was collected from 314 employees in tertiary educational institutions in Ghana. A conceptual model was developed and a set of hypotheses were proposed. The results found that cross-functional fit has a significant effect on both financial and operational performance. However, the results found no significant effect of strategy fit, role-position fit, and intra-functional fit on financial and operational performance. Therefore, tertiary educational institutions should develop cross-functional fit to improve their financial and operational performance.

Purpose This study aims to explore the impact of financial management strategies on the financial performance of construction projects in Iraq, specifically investigating the moderating role of company size. The primary focus is to understand how different cost components contribute to performance and how this relationship varies between larger and smaller businesses in the construction industry. Design/methodology/approach Utilizing a sample of 296 participants from the construction business in Iraq, this research employed a survey questionnaire. The WarpPLS software facilitated data analysis, employing Partial Least Squares Structural Equation Modelling (PLS-SEM) with bootstrapping for model validation. Confirmatory factor analysis (CFA) with maximum likelihood estimation assessed the measurement model, ensuring a comprehensive understanding of the financial management strategies and performance relationship. Findings The study reveals that equipment costs show no significant relationship with performance in Iraq’s construction industry. Larger construction firms exhibit a positive influence on financial performance from material costs, labour costs and permit/licencing fees compared to smaller firms. This suggests a moderation effect of size on the relationship between these cost components and financial outcomes, highlighting the nuanced impact of financial management strategies on performance. Research limitations/implications While shedding light on the size-dependent nuances in the relationship between financial strategies and performance, this study is confined to the construction industry in Iraq. The findings might not be universally applicable, and contextual variations should be considered. Additionally, the reliance on survey data introduces the potential for response bias. Future research could expand the scope to different industries and regions, incorporating diverse methodological approaches for a more comprehensive understanding of the nuances in the financial management and performance relationship. Practical implications Construction companies in Iraq can enhance project performance by strategically allocating resources and effectively managing costs, considering the nuanced impact of company size. Larger firms, in particular, should focus on optimising material costs, labour costs and permit/licensing fees to maximise financial outcomes. This study provides actionable insights for practitioners, guiding financial management decisions and offering practical recommendations for improving project performance in the Iraqi construction industry. Social implications The research contributes valuable insights to the Iraqi construction industry, an area with limited prior research on management matters. By emphasising the role of size in moderating the relationship between financial strategies and performance, the study informs industry stakeholders, policymakers and professionals about the importance of tailoring financial management approaches based on company size. This knowledge can potentially lead to improved financial outcomes, positively impacting the overall economic and social landscape in Iraq. Originality/value This research adds to the body of knowledge by examining the impact of company size on the relationship between financial management methods and performance in Iraq’s construction projects. The study’s originality lies in uncovering the moderating effect of size on the connection between specific cost components and financial performance. The findings provide a unique perspective on financial management strategies, offering construction companies valuable insights into optimising performance based on their size. This research contributes significantly to an underexplored area, filling a gap in the existing literature and providing practical implications for financial decision-making in the construction industry.

Covid-19 pandemic had created the “new normal” in our society and this has led to a colossal economic loss for lots of businesses across the globe. This study intends to evaluate the impact of Covid-19 pandemic on business performance of Micro, Small and Medium Enterprises (MSMEs) in food and beverage sector within the Ikeja local government, Lagos Nigeria. Structured questionnaire was developed and was divided into four parts: The demographic, financial, sales and operational performance. The financial, sales and operational performance scales were with 3 different periods (pre Covid-19 lockdown, Covid-19 lockdown and partial Covid-19 lockdown) with respect to the Covid-19 pandemic (15 items). Financial performance before Covid-19 lock down and lockdown and partial lockdown era shows r= -0.762 and 0.436 respectively at p<0.01. Also, financial performance during lockdown and partial lockdown era is r= -0.438 at p<0.01. Financial performance and sale with operational performance during Covid-19 lock down period shows r= -0.284 and 0.210 respectively at p=0.004 and p=0.032 respectively. There was no statistically significant difference with the years of business experience [F(2, 101) =0.251, p=0.779] on financial performance during Covid-19 lockdown. On how effect of the Covid-19 pandemic was felt on business performance with gender, there was no statistically significant difference between males and females on the combined dependent variables: F (5,102) =1.308, p=0.267; Wilks’ Lambda=0.937; partial eta squared=0.063, The Covid-19 pandemic with the lockdown that associate with it had a negative impact on the financial performance of the MSMEs that were involved in this study when compared with the period when there was no lockdown.

The electricity industry has an important role in the economic growth and industrial dynamics in all countries. However, it is one of the main sources of environmental pollutants as well. Hence, environmental experts are always trying to reduce the amount of pollutants. This study aims to realize the relations between environmental capabilities and environmental strategies with environmental, financial and operational performances. Accordingly, questionnaires, by 39 questions, distributed among 103 participants, including environmental experts of the thermal power plants and thermal power company. Among 103 questionnaires, 70 qualified questionnaires were collected. The reliability of questioners was tested by Cronbach alpha criterion and the amount of this criterion (0.845) verified the reliability of the questionnaire. Also, the validity of the questionnaire confirmed through the Fornell and Locker methods and other factors. For testing the hypotheses of research, the method of structural equation modelling analysis was used. The empirical results show that: 1. The environmental capabilities have a positive impact on environmental strategies 2. The environmental strategies have positive impacts on financial, operational and environmental performances 3. The environmental capabilities can have positive effects on environmental, financial and operational performance through environmental strategies. These results confirm that focusing on environmental issues of thermal power plant activities, not only improve environmental performance, but also improve their operational and financial performances.

A Small and Medium Enterprise (SME) in the textile industry usually focuses on specialised processes like weaving, knitting, or dyeing while producing and distributing fabrics, clothing or other textile products. This study looks into the sustainability and energy efficiency strategies used by small and medium-sized businesses (SMEs) in Tamil Nadu’s textile sector, particularly in manufacturing hubs like Coimbatore, Tiruppur, Madurai and Salem. The study uses a mixed- methods approach combining qualitative information from interviews with SME owners, production managers and sustainability officers with quantitative data obtained from structured questionnaires. A representative sample of 1250 SMEs from a range of industries, including spinning, weaving, dying, and clothing manufacturing, was guaranteed by a stratified random sampling technique. Together with structural equation modelling (SEM), descriptive statistics, correlation analysis and multiple regression analysis were used to analyse the data and investigate the connections between firm performance, sustainability practices and energy efficiency. Three specific hypotheses were examined in this study: how energy efficiency measures affect operational performance, how sustainable practices and financial performance are related and what obstacles exist for the adoption of energy-efficient technologies. The results show strong correlations and gains in financial and operational performance, underscoring the critical role that sustainability and energy efficiency play in raising textile SMEs’ competitiveness

PurposeThe increased concerns for the environment have led organizations, businesses and nations to act environmentally friendly. This has also pressurized the banking sector to adopt green practices. However, there is a dearth of studies related to green banking (G-banking) adoption practices (GBAP) on banking performance. Hence, by considering the resource-based view theory, this study aims to examine the impact of GBAP on banking performance, i.e. financial, operational and environmental performance.Design/methodology/approachThe data was acquired from banking personnel in Pakistan using a five-point Likert scale questionnaire and a non-probability purposive selection technique. In total, 400 responses were gathered, on which data screening was performed to detect and delete outliers. On a useful sample of 360, partial least square-structural equation modeling was used to validate the hypotheses.FindingsThe findings revealed that GBAP positively affects the environmental, operational and financial performance of the banks. The findings further revealed that GBAP largely affects environmental performance followed by operational performance and financial performance, respectively.Practical implicationsThe study findings offer various insights to the policymakers and the banking sector to better implement G-banking practices in improving banking performance.Originality/valueTo the best of the authors’ knowledge, this is one of the first studies to look at the effect of GBAP on key performance outcomes, i.e. financial and operational performance. This study also verifies the use of resource-based perspective theory in the context of G-banking.

Research underlined that Small and Medium Enterprises' performance is enhanced by different types of innovation capabilities. This research tends to present a comprehensive model to explain the relationship between innovation capabilities and SMEs' financial and operational performance. Specifically, this study tends to achieve three objectives: explores the set of product, process, organizational and marketing innovation capabilities possessed by owners/managers of SMEs and their impact on Chinese manufacturing SMEs' operational and financial performance dimensions, identify the determinants of innovation capabilities, and determine the contextual factors that moderate innovation capabilities and SMEs' performance. This research employed a qualitative research method using in-depth interviews with eight owners/managers of Chinese manufacturing SMEs. Research findings revealed that product and marketing innovation capabilities have a significant impact on SMEs' financial performance while process and organizational innovation capabilities positively influence SMEs' operational performance. The major determinants of innovation capabilities involved availability of sufficient organizational resources, entrepreneurial orientation, knowledge development and external networks. The contextual moderating factors on the relationship between innovation capabilities and SMEs' performance involved internal factors which are: SME size, SMEs' owner/manager work experience, entrepreneurial mindset; and external factors: market dynamism and cooperation strategies. This paper ends by drawing some concluding remarks and proposing future research avenues.

Purpose – The relationship between overall innovation and innovation capability, and performance has been a topic of several earlier studies. However, the effects of the aspects of innovation capability on performance of a firm have stayed unfamiliar. The purpose of this paper is to study the relationship between organizational innovation capability and firm performance. The study contributes to the current understanding by presenting the important aspects of organizational innovation capability that affect firm performance. The effects are studied to both financial and operational performance. Design/methodology/approach – The approach of this study is quantitative. The data used to test the hypotheses were gathered from Finnish small- and medium-sized enterprises (SMEs) with a web-based questionnaire. The sample covered 2,400 SMEs employing 11-249 persons and having a revenue of two to 50 Meuro. The sample was randomly selected. Findings – The findings showed that three aspects of innovation capability, namely ideation and organizing structures, participatory leadership culture, and know-how development, has some effect on different aspects of firm performance. Surprisingly, the aspects of innovation capability were found to be more influential to the financial performance than operational performance. Practical implications – The paper contains suggestions for improving performance through developing innovation capability. The paper aims to support practice in two ways. First, organizations can identify aspects of innovation capability that affect operational and financial performance. In that way, organizations can benefit the results by applying these aspects in their everyday operations. Second, the results of the paper may help professionals to begin to understand that leveraging innovation capability may improve an organization's performance. Originality/value – Previous research has often either concentrated on innovation capability as a one dimension without studying the relationship aspect by aspect or studying only the effects of one aspect of innovation capability. The results of the study take one step further by investigating the relationship of multiple aspects of innovation capability and firm performance.

Indonesia is a developing country with a large population and a relatively high level of economic growth, it has companies that perform well in various sectors but still vary in each economic sector. Performance as measured by the company's profitability will influence the company's condition. Large profits cannot be separated from the company's financial decisions. one of them is funding decisions. The funds obtained can come from debt and equity to form the company's capital structure. This research aims to examine the influence of capital structure and operational performance on financial performance. The data used is secondary data obtained from annual reports and financial reports accessed via idx.co.id. The independent variables are capital structure which is measured using the Debt Equity Ratio (DER) and operational performance which is measured using liquidity. The dependent variable in this research uses financial performance as measured by Return On Assets (ROA). The results prove that: (1) capital structure has a positive and significant effect on financial performance. (2). Operational performance has a negative and significant effect on financial performance. Keywords: Capital Structure, Operational Performance, Financial Performance

Profit is the main concern for assessing the performance or accountability of management. Profit information also helps owners or other parties in assessing the company's earning power in the future. Therefore every business has the hope of realizing maximum profit. In addition, earnings management is very important to help businesses survive, project and develop strategies for the future and improve their performance. Earnings management is carried out based on the company's financial performance, and to maintain it, it is necessary to pay attention to the company's investment and funding decisions. This study aims to examine and analyze (1) the effect of investment and funding decisions on financial performance and earnings management, (2) financial performance as a mediator between investment and funding decisions on earnings management. The population are transportation companies listed on the Indonesia Stock Exchange for the period 2019 – 2021. Based on the criteria, the sample is 39 companies. Data analysis technique with multiple linear regression and the sobel test. The results of the research show that investment and funding decisions are partially unable to influence financial performance and earnings management. Financial performance is not able to mediate the influence of investment and funding decisions on earnings management. The results of the research show that investment and funding decisions are partially unable to influence financial performance and earnings management. Financial performance is not able to mediate the influence of investment and funding decisions on earnings management. The results of the research show that investment and funding decisions are partially unable to influence financial performance and earnings management. Financial performance is not able to mediate the influence of investment and funding decisions on earnings management.

Purpose– The purpose of this paper is to contribute to the ongoing debate about the effectiveness of lean practices in the service sector.Design/methodology/approach– This paper examines the impact of lean service on firm operational and financial performance. Exploratory factor analysis is used to reduce the data and identify the underlying dimensions of lean service, and partial least squares structural equation modelling is used to test the developed model.Findings– The results indicate that the social bundles of lean service had an independent positive impact on firm operational and financial performance. Furthermore, while the technical bundles had an independent positive effect on only the operational performance, they interacted with the social bundles to improve both the operational and financial performance. The findings suggest that service managers must follow a systematic approach when implementing lean service practices without focusing on one side of the system at the expense of the other.Practical implications– The paper highlights the importance of implementing lean service as a socio-technical system (STS) if service firms are to achieve the best possible benefits from their implementation. The motivation factor (social side) and the customer value factor (technical side) are capable of improving all operational performance dimensions and profit margin even if implemented alone. Therefore, service managers with limited resources are encouraged to start lean service implementation with practices within these factors. However, they can also expect improved operational and financial performance from implementing other factors as they positively interact to further improve performance.Originality/value– Viewing lean service as a STS, this paper incorporates a larger set of lean practices than previous studies and demonstrates empirically their capability of improving service firms’ operational and financial performance. It contributes significantly to the emerging literature on lean service by empirically testing the mechanism through which lean service affects firm performance.

Financial decisions in the company are an important part that is very influential on operational and financial performance. The survival of a company is showed from an operational activity that carried out, so that the company gets the desired results. Financial decisions in the form of working capital policies are important for the survival of the company. Companies can use working capital to get good financial performance. Financial performance can be reflected in profitability and firm value. The role of working capital towards financial performance in companies involves other factors, namely firm size. Large companies with assets have quite a lot of different policies on the use of working capital. This impact will affect the financial performance produced. Associated with the size of the company, this study examines working capital for financial performance by considering firm size. The study aims to examine working capital for financial performance. The study was conducted on manufacturing companies in the Indonesia Stock Exchange with a study period of three years 2015 to 2017. Test results showed the relationship of working capital to financial performance by considering firm size. With this connection, it shows the importance of using woking capital that is good enough to generate profitability and firm value.   Keywords: working capital, financial performance, profitability, firm value, firm size.

The research explores the influence of investment decisions, financing decisions, and dividend policy on the financial performance of companies listed on the LQ45 index of the Indonesia Stock Exchange during the 2021–2024 period. In the face of fluctuating macroeconomic conditions post-COVID-19, the study emphasizes the importance of these financial decisions in shaping corporate outcomes. The objective is to provide empirical insights into how these factors contribute to the overall financial performance, particularly in an era of economic uncertainty. A qualitative approach was employed, utilizing a literature study design based on secondary data from journals, books, financial reports, and company annual reports. The findings reveal that companies making strategic investment decisions, particularly in technology and innovation, are more likely to experience improved financial performance, as seen in the case of PT Telekomunikasi Indonesia Tbk. Furthermore, financing decisions, especially those managing a balanced capital structure, significantly impact profitability, with examples like PT Astra International Tbk leveraging debt effectively. Lastly, a consistent and balanced dividend policy contributes to strong investor confidence, thereby enhancing financial performance. The study concludes that companies can optimize their financial performance by carefully balancing investment, financing, and dividend decisions.