Business Management Literature Research Articles

The impact of industry, firm age and education level on financial management performance in small and medium-sized enterprises (SMEs)

PurposeSmall- and medium-sized enterprises (SMEs) are crucial for socio-economic growth due to their significant role in creating new workforce, gross domestic product increase, innovation and entrepreneurship. This paper aims to examine financial management performance in SMEs with regard to industry, firm age and education level of owner/managers differences.Design/methodology/approachThe data used in the study are collected from 188 SMEs through structured questionnaires, and three hypotheses regarding the associations are tested by using structural equation modeling.FindingsFindings of one-way ANOVA tests indicate that performance in financial management practices has a strong and positive correlation with education level of small business owner/managers, whereas no significant difference is found regarding SMEs operating in different industries. For the impact of company age, independent samples t-test is conducted, and a meaningful difference between small- and medium-sized companies which are five years or older and younger is found.Research limitations/implicationsThis study shows that a significant difference for age of an SME is present between over and under five-year-old SMEs, with respect to financial management performance, which is an important finding for both small business and financial management literatures. The tests regarding the particular hypotheses about education level of SME owner/managers indicate that education level of SME owner/managers significantly impacts financial management performance.Practical implicationsThe present study provides important practical implications. First, the importance of education level of owner/managers on SME financial performance is highlighted. Second, strong empirical support is found for the impact of company age on SME performance, which might be discussed as the importance of accumulation of knowledge of the owner/managers and the changes required with the growth patterns of the company, with increasing company age. Third, the study shows that industry differences do not exhibit a significant performance variation factor in financial management of SMEs, with respect to other demographic factors. Overall, these contributions help us better understand the financial management performance indicators in small and medium sized businesses.Originality/valueThis study focuses on company age, education level and industry differences with respect to financial management performance in SMEs in emerging economies, therefore provides additional empirical evidence to a research area where very few empirical studies exist.

Strategic Change in Surgical Quality Improvement: The Ottawa Hospital (TOH) Comprehensive Unit-Based Safety Program (CUSP) Experience.

Strategic change principles are widely cited in business and healthcare management literature, but not in the surgical quality improvement literature despite the need for effective change management skills to successfully enable quality improvement projects. The Ottawa Hospital (TOH) Comprehensive Unit-Based Safety Program (CUSP) model within the Division of General Surgery applied strategic change management principles to support the development and implementation of surgical quality improvement initiatives. Using the TOH CUSP experience, we aim to provide insight and a practical example for surgeons seeking to drive quality improvement within their practice environment.

Mergers and acquisitions in family businesses: current literature and future insights

PurposeThe purpose of this paper is to examine the current state of literature concerning mergers and acquisitions (M&A) in family businesses and to highlight areas for future research.Design/methodology/approachThis literature review systematically analyses the findings of 41 journal articles on M&A in family businesses, identifying key thematic categories according to the main topics of the studies.FindingsThis study finds that it is important to distinguish and examine the type of governance, such as family and non-family, when studying M&A issues, because their distinctive features influence their strategic choices, business goals, and, thus, M&A behavior. Three topic areas are identified in existing research: M&A propensity, process, and performance. Furthermore, methodological and definitional issues regarding the findings are discussed.Research limitations/implicationsThe findings imply that owing to their idiosyncratic nature, the use of alternative theoretical frameworks in addition to agency theory is encouraged in future studies in order to better capture the nature of family businesses. In general, further research on M&A issues in family business settings is needed, especially in the pre-merger phase, which is crucial to M&A performance.Social implicationsOverlooking particular issues that may arise in the context of transactions involving family businesses may lead to problems in M&A processes. Recognizing the importance of these issues in such transactions has important value for practitioners supporting family businesses in M&A processes.Originality/valueThis study takes the first step in analyzing the literature on M&A in family businesses, establishing linkages between family business, corporate governance, and financial management literature, and structuring the existing research to highlight opportunities with relevance for both theory and practice.

The dark side of global sourcing: a systematic literature review and research agenda

PurposeThe purpose of this paper is to present a systematic review of the literature concerning the negative aspects of global sourcing (GS). It complements prior research on the positive aspects of GS, advances theoretical understanding of the phenomenon, and suggests an agenda for future research.Design/methodology/approachThe sourcing, international business and supply chain management literature is systematically reviewed and findings from 83 previous studies are investigated.FindingsResearch on the downsides of GS has intensified over the last decade, but the related knowledge has been very fragmented and oftentimes latent. This literature review extracts knowledge around 28 antecedents to GS downsides from the literature and illustrates their potential harmful effects along operational and financial performance dimensions. Findings suggest that future research should focus more on the effects of decision-making biases and the effects of firm-internal barriers. The dynamic and hidden costs of GS should also be scrutinized in more depth.Originality/valueThis study is the first systematic literature review of the downsides of GS. It facilitates a more balanced and nuanced picture of GS to help managers make better-informed GS decisions. The review also offers a holistic research framework that opens up avenues for much-needed research into the “dark side” of GS.

Airlines define their business models: a content analysis

Business model is not a new concept; however, it has been recently studied in business management literature. On the other hand, business model concept has not been studied in terms of its components in airline business. The purpose of this study is to see how airlines define their business models based on business model components. In this study business model concept is introduced and business model components are discussed as they have been explained in literature. Research part aims to explore how airlines describe their business models. To clarify this, a content analysis has been done in the strategic statements and in 'about us' parts of the websites of 50 biggest airlines worldwide. Our study shows that there are four components that airlines mention in their strategic statements and in 'about us' parts of their websites. These components are: 1) the value proposition; 2) the market segmentation; 3) the value chain; 4) the profit structure.

Good practices for advancing urban mobility innovation: A case study of one-way carsharing

Transforming urban mobility requires integrating public with private services into a single transportation system. Local governments and private companies face the challenge of how to coordinate themselves. An emblematic example is one-way carsharing (shared use of a fleet of vehicles that are typically free-floating throughout an urban area).Surprisingly, good practices for public and private players innovating together remain relatively undocumented. This paper proposes a systematic and balanced public-private approach to foster transportation innovation management. We review both public policy and business management literature and build a framework to help governments and companies collaborate (organizational structures, project management processes, and profitability assessment tools).We use this framework to examine both public and private experiences through a case study analysis with five one-way carsharing services in Europe (Paris, Munich) and the United-States (San Francisco, Portland, Seattle). For each we conducted expert interviews with the government and the private operator. This paper provides recommendations for both sectors. First, public and private players should have specific organizations, separated from the core business. Second, they should co-manage innovation since pilot projects lack certainty and require risk management. Third, a new approach to value emphasizing the role of project learning and capability building is necessary.

Risks and governance modes in offshoring decisions: linking supply chain management and international business perspectives

ABSTRACTGoverning offshoring has become a major challenge for firms that run operations outside the home country. International business (IB) and supply chain management (SCM) literature offer different insights on the topic, focusing especially on possible governance modes and the drivers of this choice, with different perspectives. Grounding the discussion at the intersection between these two research fields, the present study first proposes a taxonomy of offshoring risks (i.e. tasks, operational, reputational and institutional), with corresponding risk factors in each category; then, a set of research propositions are formulated, in order to link these categories to the governance-mode choice. Furthermore, we argue that the risk–governance link is moderated by two relevant factors, that is, the offshoring firm size and the strategic relevance of the outsourced activity. As a result, we elaborate on the interrelation between IB and SCM theories, emphasising the impact of risk management and contingent factors in offshoring governance modes configurations.

Airlines define their business models: a content analysis

Business model is not a new concept; however, it has been recently studied in business management literature. On the other hand, business model concept has not been studied in terms of its components in airline business. The purpose of this study is to see how airlines define their business models based on business model components. In this study business model concept is introduced and business model components are discussed as they have been explained in literature. Research part aims to explore how airlines describe their business models. To clarify this, a content analysis has been done in the strategic statements and in 'about us' parts of the websites of 50 biggest airlines worldwide. Our study shows that there are four components that airlines mention in their strategic statements and in 'about us' parts of their websites. These components are: 1) the value proposition; 2) the market segmentation; 3) the value chain; 4) the profit structure.

The Interface between Organizational Learning Capability, Entrepreneurial Orientation, and SME Growth

This paper investigates the interface between organizational learning capability, entrepreneurial orientation (EO), and small business performance. It reports on the findings from 350 small and medium enterprises (SMEs) in North Cyprus operating in the services and retailing sectors. The findings indicate a positive relationship between EO and sales and market share growth, but not between EO and employment growth. There is also a positive relationship between organizational learning capability and EO. This paper contributes to the small business management literature by providing a holistic analysis of the interface between organizational learning capability, EO, and growth.

PENGARUH JOB EMBEDDEDNESS TERHADAP KEPUASAN PELANGGAN

Using a new construct, Job Embeddedness (JE), from the business management literature,this study examines the effects of JE on Job Performace (JP) and Costumer Satisfaction (CS)at PT. Bayer Indonesia. Samples from the company at PT Bayer Indonesia were collected bymailing a questionnaire survey to those who agreed to participate.The results of this studyindicate that the following variables have a significant impact on Job Embeddedness Fit,Links, Sacrifice, Job Performance and Costumer Satisfaction.The study suggests that the PTBayer Indonesia can improve JP by influencing its JE, specifically, by developing fit, links andsacrifice. The study provided that it is necessary to pay more attention to the dimensions of JEas a key source for organizations to enhance the competitive advantage which is of primesignificance for JP and CS. JE is valuable for evaluating employee retention in PT BayerIndonesia. The study observes that there is a critical shortage of JE and that a greaterunderstanding of the factors that influence the JP, including fit, links and sacrifice, is of greatimportance. Therefore, this study is to examine the relationship between JE, JP and CS amongemployees at PT Bayer Indonesia.Keyword: Job Embeddedness, Job Performance and Costumer Satisfaction

Priorities and perceptions of corporate social responsibility

Purpose– The purpose of this paper is to inform the business management literature that focuses on the perceptions of business professionals towards the multidimensional and highly complex concept of corporate social responsibility (CSR).Design/methodology/approach– This study is based on a sample of 118 Greek business executives/middle managers having different functional positions. A questionnaire based on the works of Quazi and O’Brien (2000) and Welfordet al. (2007) was designed and used for data collection.Findings– Key findings denote occupational health and safety, benign environmental management as well as responsible production methods as the top CSR priorities. Two different CSR viewpoints emerged from the factor analysis reflecting a pragmatic and a more socially responsive interpretation of corporate responsibility. Cluster analysis confirmed such contrasting perspectives allowing the partition of data in distinctive groups according to the relative inclination on either of the identified viewpoints. Similarity measures obtained from cluster analysis also verified the different CSR positions.Originality/value– The paper explores CSR perceptions, as predictor factors of CSR performance, in three different groups of Greek business professionals. It contributes to the literature of CSR perspectives from South-East European countries where there is a distinct lack of empirical studies on managerial attitudes.

An Application of the Integrated IBA-TOPSIS Model in Supplier Selection

The supplier selection process attracted a lot of attention in the business management literature. This process takes into consideration several quantitative and qualitative variables and is usually modeled as a multi-attribute decision making (MADM) problem. A recognized shortcoming in the literature of classical MADM methods is that they don't permit the identification of interdependencies among attributes. Therefore, the aim of this study is to propose a model for selecting suppliers of telecommunications equipment that includes the interaction between attributes. This interaction can model the hidden knowledge needed for efficient decision-making. To model interdependencies among attributes the authors use a recently proposed consistent fuzzy logic, i.e. interpolative Boolean algebra (IBA). For alternatives ranking they use the classical MADM method TOPSIS. The proposed model was evaluated on a real-life application. The conclusion is that decision makers were able to integrate their reasoning into the MADM model using interpolative Boolean algebra.

The Effects of Job Embeddedness on Organizational Cynicism and Employee Performance: A Study on Sadat City University

Purpose: Using a new construct, Job Embeddedness (JE), from the business management literature, this study examines the effects of JE on Organizational Cynicism (OC) and Employee Performance (EP) at Sadat City University. Research Design/Methodology: Using Mitchell et al., 2001 of JE, the study develops a number of hypotheses and tests them. Out of the 692 questionnaires that were distributed to employees at Sadat City University in Egypt, 400 usable questionnaires were returned, a response rate of 58%.Findings: The results showed that JE is related to the OC and EP. In other words, fit, links and sacrifice significantly correlated with OC and EP. This research outlined a strong relationship between JE, OC and EP. The study findings suggest that improving JE will have a positive impact EP.Practical implications: The study suggests that the University of Sadat City in Egypt can improve EP by influencing its JE, specifically, by developing fit, links and sacrifice. The study provided that it is necessary to pay more attention to the dimensions of JE as a key source for organizations to enhance the competitive advantage which is of prime significance for OC and EP.Originality/value: JE is valuable for evaluating employee retention in Sadat City University. The study observes that there is a critical shortage of JE and that a greater understanding of the factors that influence the EP, including fit, links and sacrifice, is of great importance. Therefore, this study is to examine the relationship between JE, OC and EP among employees at Sadat City University.

International Exploitation of Domestic R&D Exploration: New Insights from Russian Manufacturing Firms

In this paper, we approach R&D cooperation and international market expansion from an exploration-exploitation perspective and look how various domestic R&D partners affect international market expansion activities in Russian firms. Our findings, based on a data survey of 206 manufacturing companies, show that different partners affect differently when it comes to market expansion and that their effect depends on a number of things such as the proximity of the international market. Using the exploration-exploitation approach, we are able to explain the phenomenon in more detail and so contribute to the existing international business and innovation management literature.

English

As a result of globalization and intensive competition, knowledge and knowledge management has become the main factor that determine the market value of the enterprises or organizations. With its increasing importance knowledge has become an important component in creating competitive advantage and business capital has begun to be distinguished as physical capital and intellectual capital. As a basic resource of intellectual capital, organizations have to effectively and systematically manage this knowledge in order to survive and create sustainable competitive advantage in long term. In simple terms, knowledge management refers to creation, adaptation, dissemination and usage of required knowledge within organization and among organisations through a well-planned process. Hence, knowledge management express a certain process and this process consists of certain steps such as acquiring, creating, documenting, disseminating, sharing and use of knowledge. Especially in 1990s, with the increasing attention to knowledge management (processes), it has become one of the most debated management concepts and numerous studies conducted in the scope of this emerging concept. Contrary to its popularity in business management literature, it’s seen that number of studies on knowledge management (processes) in hospitality industry is very limited. Thus, knowledge management is a relatively new concept for hospitality management literature and much more detailed studies need to be conducted in order to understand the knowledge management and knowledge management processes in hospitality industry. In this context, this study aims to draw attention to knowledge management in hotels by evaluating knowledge management processes in thermal hotels. Within the scope of research the knowledge management processes applied in thermal hotels has been determined through conducting questionnaire surveys. Percentage and frequency tables are used to present participants’ demographic characteristics and learn participants’ views about knowledge management processes. Finally, discriminant analysis determines differences between participants’ views based on their demographic characteristics. Keywords: Knowledge, Management, Thermal Hotel, Afyonkarahisar, Turkey

Family Control, Regulatory Environment, and the Growth of Entrepreneurial Firms: International Evidence

AbstractManuscript TypeEmpiricalResearch IssueWe investigate the joint effects of family control and the regulatory environment on entrepreneurial growth through the lens of socio‐emotional wealth (SEW) theory.Research FindingsTaking into consideration both economic and non‐economic goals of entrepreneurial firms, measured by sales growth and employment growth respectively, we find that, compared to their non‐family‐controlled counterparts, family‐controlled firms tend to have lower sales growth rates, but higher employment growth rates. Furthermore, less favorable regulatory environments reduce both sales and workforce growth rates to a greater extent for family‐controlled firms than for non‐family‐controlled firms.Theoretical/Academic ImplicationsWe add to the corporate governance and family business management literature by documenting that the regulatory environment moderates the corporate governance effect of family control on the economic and non‐economic goals of family‐controlled firms. The findings also contribute to the family business management literature by enriching and providing strong evidence in favor of the SEW theory through our exploration of the moderating role that macro‐governance plays in the family control‐SEW relation. This research also makes contributions to the entrepreneurship literature, laying a foundation for future empirical studies on entrepreneurial growth by separating its economic from its non‐economic dimensions.Practitioner/Policy ImplicationsOur findings provide practical implications for both policy makers and entrepreneurs. They not only help entrepreneurs better understand growth strategies in various macro‐governance settings, but also provide governments and policymakers with potential policy implications to encourage entrepreneurial and economic growth. Policies that improve the macro‐governance environment can help family firms to prosper by contributing to their economic and non‐economic growth, both of which are important for economic development.

From Rationality to Emotionally Embedded Relations: Envy as a Signal of Power in Stakeholder Relations

Although stakeholder salience theory has received a great deal of scholarly attention in the business ethics and management literature, the theory has been criticized for overemphasizing rationality in managerial perceptions. We argue that it is important to better understand what socially constructed emotions signal in business relations, and we posit the role of envy as a discursive resource used to signal and construct the asymmetrical power relations between small business owner–managers and their stakeholders. Our study is based on a qualitative study on discursive accounts elicited from 33 interviews with small business owner–managers in Finland. Our study makes two primary contributions. First, we suggest that socially and culturally constructed emotions (such as envy) have significance in stakeholder salience analyses. Second, we suggest that socially and culturally constructed emotions provide a fruitful context in which to understand the limitations of owner–managers’ personal and moral autonomy.

The Influence Of Market Related Mobile Activities On The Acceptance Of Mobile Marketing And Consumer Intention To Purchase Products Promoted By SMS In South Africa

There is an increasing attention being accorded to mobile marketing activities in recent business management literature in the past decade as both academicians and practitioners recognize that mobile activities have potential influence on mobile marketing acceptance and customer purchase intention. Notwithstanding this, there is dearth of research on the same in the African context. In view of this development, the purpose of this research paper is to investigate the extent to which mobile marketing activities influence customers mobile marketing acceptance and their purchase intention in South Africa. Five research hypotheses are postulated and using data collected from mobile marketing activities partakers, the hypotheses are tested using Structural Equation Modelling (SEM) approach (Smart PLS). Managerial implications of the findings are discussed and limitations and future research directions are indicated.

Forest fire management to avoid unintended consequences: A case study of Portugal using system dynamics

Forest fires are a serious management challenge in many regions, complicating the appropriate allocation to suppression and prevention efforts. Using a System Dynamics (SD) model, this paper explores how interactions between physical and political systems in forest fire management impact the effectiveness of different allocations. A core issue is that apparently sound management can have unintended consequences. An instinctive management response to periods of worsening fire severity is to increase fire suppression capacity, an approach with immediate appeal as it directly treats the symptom of devastating fires and appeases the public. However, the SD analysis indicates that a policy emphasizing suppression can degrade the long-run effectiveness of forest fire management. By crowding out efforts to preventative fuel removal, it exacerbates fuel loads and leads to greater fires, which further balloon suppression budgets. The business management literature refers to this problem as the firefighting trap, wherein focus on fixing problems diverts attention from preventing them, and thus leads to inferior outcomes. The paper illustrates these phenomena through a case study of Portugal, showing that a balanced approach to suppression and prevention efforts can mitigate the self-reinforcing consequences of this trap, and better manage long-term fire damages. These insights can help policymakers and fire managers better appreciate the interconnected systems in which their authorities reside and the dynamics that may undermine seemingly rational management decisions.

Repercusión de la formación y la tecnología en la productividad en la pesca. Productivity in deep sea and inshore fishing fleets

Business management literature features a variety of factors delimiting the environment of a company. Kast and Rosenzweig (1997) distinguish between a general social setting affecting all trades and a specific setting directly affecting individual organizations. Environmental features affecting the general social setting constitute the external, generic determining factors for all trades: culture, technology, education, policy, legal framework, natural resources, demography, social characteristics and economic aspects. These would make up the PEST analysis –an analysis of economic, social, technological and political factors. In this paper we will begin by delimiting the main features of traditional fishing fleets. We will then centred upon training and, finally, we will analyse the impact of technology in productivity and quality of life of the crew.