Business Performance Evaluation Research Articles

Indicators and criteria for evaluation of business performance

Indicators and criteria for evaluation of business performance

スマートヒートグリッドを用いた拡張性・多様性ある熱融通の可能性に関する研究 （第四報） ～ 既築建物間に導入したケースの環境性・事業性評価

スマートヒートグリッドを用いた拡張性・多様性ある熱融通の可能性に関する研究 （第四報） ～ 既築建物間に導入したケースの環境性・事業性評価

Ekonomik Katma Değer (EVA) ile İşletme Sermayesi Etkinliği Arasındaki İlişki: 2008 Küresel Finansal Kriz Dönemine İlişkin Bulgular

Literatürde işletme performansının değerlendirilmesinde kullanılan Ekonomik Katma Değerin (EVA) ortaya çıkmasından bu yana, kurumsal yapının en belirgin ölçütü haline gelmiştir. EVA, ekonomik katma değer anlamına gelir ve sermaye maliyetinin getirdiği getirinin yatırım yapılan sermayeyi aşması olarak tanımlanmaktadır. Bu çalışmada, Borsa İstanbul-BİST 100’de faaliyet gösteren işletmelerin 2003-2012 yılları arasındaki EVA'larının işletme sermayesi etkinliğinde kullanılan nakit dönüşüm döngüsü ve unsurlarına ilişkin oranlar arasındaki ilişki incelenmiştir. Bu çalışmanın amacı, EVA'nın benimsenmesinin işletme sermayesi etkinliği arasındaki ilişkiyi araştırmaktır. Araştırmanın bulgularına göre, EVA ile işletme sermayesinin etkinliğine ilişkin unsurlara ait rasyolar arasında anlamlı ilişki olduğu sonucuna varılmıştır.

Determinants of economic value added (EVA) in Chinese listed banks

Purpose The purpose of this paper is to examine the determinants of the EVA performance evaluation model for the Chinese banking industry. The authors investigate the impact of six bank-specific factors and corporate governance factors on financial performance. Design/methodology/approach The authors use the ordinary least square regression to examine the determinants of the EVA performance evaluation model for the Chinese banking industry. The findings are generally robust to alternative proxies of performance. Findings The empirical results indicate that credit risk, operational efficiency and the degree of innovation are positively related to banks’ EVA while capital management has a negative impact on it. In addition, although board size and independent directors are not related to the bank’s EVA, from the perspective of the traditional performance evaluation indicators, executive compensation has a positive impact on the bank’s profitability. Research limitations/implications This paper has some limitations. First, due to the large number of adjustments to accounting items are required in the application of EVA when evaluating business performance, some items of the EVA model in this paper have been simplified, which may cause the bank’s EVA value to deviate slightly from the actual situation. Moreover, the sample includes only listed banks, so our results cannot generalize to non-listed banks, such as some small- and medium-sized commercial banks. Originality/value This paper contributes to the limited body of literature concerning the use and the determinants of EVA in emerging markets. The authors construct an EVA model which is suitable for China’s banks and reports comprehensive evidence on the drivers of EVA as a measurement tool.

How Effective is the Balanced Scorecard in Business Performance Evaluation of Hospitality Industry in Nigeria?

Motivated by the need to have a multi-dimensional picture of performance of the hospitality industry in Nigeria, the Balanced Scorecard was applied in evaluating the business performance of the industry. The study adopted a survey research design with copies of questionnaire developed and administered on service personnel, unit heads, managers and guests in the surveyed hotels. Data collected from the study were coded for analysis. Results of test of hypotheses conducted with multiple regression, indicated significant relationships of all four perspectives of the balanced scorecard. Findings suggest that customer perspective (Beta= 0.131, t= 3.4474, P< 0.05) contributes most to the business performance of hospitality industry in Nigeria; followed by internal business process perspective (Beta =0.096, t= 2,6667, P< 0.05); then financial perspective(Beta = 0.294, t= 2.3150, P< 0.05); then leaning and growth perspective(Beta = 0.154, t= 2.0649, P<0.05). The analysis reported an adjusted R 2 of 0.643. The F value (19.152) was significant at 0.05 level with its P value = 0.000. It was recommended that hospitality firms in Nigeria see the need to balance their ‘unbalanced’ performance presentation by adopting the BSC as their performance scorecard; that in view of the significant contributions of the non-financial perspectives, customer, internal business process ; and learning and growth to hospitality business performance in Nigeria, there was need for firms in the industry to prioritize related issues in operational management; that hospitality firms in the country strategize to ensure all stakeholders in the business are properly served in order to improve upon its financial performance.

Diversification Business Performance Evaluation of Shipping Industry in China

ABSTRACT Huang, P. and Yao, C., 2018. Diversification business performance evaluation of shipping industry in China. In: Liu, Z.L. and Mi, C. (eds.), Advances in Sustainable Port and Ocean Engineering. Journal of Coastal Research, Special Issue No. 83, pp. 802–806. Coconut Creek (Florida), ISSN 0749-0208. International trade is the economic key of a nation, and shipping is an inevitable factor in international trade that shipping industry presents a critical role in international trade. The diversification development of shipping companies is related to the success of a shipping company, which connects shipping service for one-stop service to reveal the importance of shipping diversification. Moreover, global shipping market is closely related to global economy. Under the globalization of international trade, the correlation between China economy and global economy is worth discussion. For this reason, it is necessary to discuss the diversification business performance of shipping industry in China. DEA i...

Linking a performance management system and competencies: Qualitative research

Abstract The main purpose of the paper is to identify the group of indicators that are most widely used in the manufacturing area worldwide, to identify the responsibility and authority for measuring and evaluating business performance, and to create an illustrative competency-based model for a performance management system within a business. The paper covers two areas that are important in the maintenance of sustainable business performance. The first area focuses on a performance management system and its key performance indicators as an important element in every performance management system within a business. The article also presents the theoretical background of the Z-MESOT method, which is applied to define the consistency of these indicators in practice. The second area is dedicated to defining a competency-based model and competences related to the measurement and assessment of performance, which have been extracted from other general competences. This paper presents findings from qualitative research to eliminate the bottlenecks of the Z-MESOT matrix that was transposed into a questionnaire. The questionnaire, as well as structured interviews, helped identify differences in responsibility attributes of the Z-MESOT matrix regarding the size of the researched businesses. The paper offers a list of competences related to the key performance indicators that can be used for following theoretical and practical research.

Kier Group Plc: Business and Financial Performance Analysis and Evaluation

The subject matter of this paper is the analysis and evaluation of the business and financial performance of the Kier Group Plc over the three year period 2012–2014. The company is analysed against the comparator undertaking Balfour Beatty Plc and the average numbers of the UK and international construction industry. The financial analysis is performed over the range of financial ratios commonly applied in undergraduate and graduate business studies. For the purposes of the business analysis, the SWOT Model and the PESTEL Framework are used. The research reveals that due to diversified divisions and a high market share the Kier Group Plc is able to generate growing revenues, albeit at the high administrative costs and with an extending operating cycle. Further, revenue growth is not accompanied by improved liquidity. The growing social diversification among residential customers, the steady technological change and the increasing demand for sustainable construction place additional challenges to the Group. The results obtained are of interest for the construction industry researchers, financial analysts and financial and business analysis students.

Marketing audit as a tool for business performance evaluation

Удосконалення аудиту маркетингової діяльності підприємства як одного з напрямів контролю є необхідною умовою його успішного функціонування в цілому. Дослідження присвячене маркетинговому аудиту як найрезультативнішому способу оцінювання ефективності маркетингової діяльності фірми. Розглянуто сутність маркетингового аудиту, як інструменту ефективності бізнесу та його значення в збутовій діяльності фірми. Визначено мету, завдання, предмет та цілі аудиту маркетингового середовища фірми як одного з напрямів аудиту бізнесу. Обґрунтовано необхідність застосування маркетингового аудиту на підприємствах для досягнення найвищої конкурентоспроможності продукції. Наведено основні характеристики маркетингового аудиту. Зазначено причини, за якими даний вид контролю використовується в нашій країні досить рідко. Наведено передумови виникнення та розвитку маркетингового аудиту, а також наведено його визначення, дані зарубіжними та вітчизняними авторами в різний час. Розглянуто методи аудиту внутрішнього та зовнішнього середовища, які набули найбільшого поширення в даний час. Розглянуто фактори зовнішнього та внутрішнього маркетингового середовища фірми, які враховуються аудиторами при аналізі маркетингового середовища підприємства. Зазначено та обґрунтовано критерії, яким повинен відповідати ефективний маркетинговий аудит, а саме: всеосяжність, систематичність, незалежність, періодичність. Обґрунтовано доцільність проведення маркетингового аудиту зовнішніми аудиторами для дотримання основних принципів аудиту. Визначено та встановлено передумови для успішного здійснення маркетингового аудиту й управління маркетингом. Зазначено основні фактори, які впливають на ефективність маркетингового аудиту, а також основні бар'єри, які впливають на використання маркетингового аудиту на практиці. Наведено основні характеристики маркетингового аудиту. Визначено критерії ефективності маркетингового аудиту та наведено ситуації, які вимагають термінового проведення аудиту маркетингової діяльності фірми.

A Comparative Analysis of Modern Performance Methods in Economic Practice

The main objective of this paper was to analyse the performance and efficiency development of the Slovakia's spa sector over the years 2013 – 2017 by applying the selected modern methods of business performance evaluation – the Economic Value Added, the Return On Net Assets, the Creditworthy Model, the Simplex Linear Programming Method and examine whether the application of these modern models provides an identical view of the financial performance of the sector surveyed. The intention of the paper was also to reveal statistically significant interconnections between the key EVA indicator and other modern methods. In the case of confirmation of a strong correlation we focused on evaluation the degree of identity with the results of above-mentioned applied methods. Despite the fact that these models evaluate performance on the basis of different input data and indicators, year 2015 was identically identified as the best-performing one, vice-versa, the worst financial performance of enterprises was recorded in 2016 within the application of all methods.

I modelli di previsione delle insolvenze e le piccole imprese: evidenze empiriche in una prospettiva territoriale

Purpose of the paper : To test whether the qualitative variables regarding the territory and the firm-territory relationship can improve the accuracy of small business default prediction models. Methodology : We applied a logistic regression to a sample of 141 small Italian enterprises located in the Marche region and we built two different default prediction models: one using only financial ratios and one using jointly financial ratios and territorial variables. Findings : Including variables regarding the relationships between firms and their territory the accuracy rates of default prediction models is significantly improved. Research limits : The qualitative variables data collected are affected by subjective judgments of respondents of the firms studied. In addition, no other qualitative variables (such as those regarding competitive strategies, the managerial skills and the knowledge management) were included. Practical implications : The work suggests the possibility for the management to adopt a model of diagnosis of the health of businesses and the opportunities for financial institutions, to integrate the qualitative variables related to the territory and firm-territory relationship in their credit rating models. In a perspective of strategic control, default prediction models can serve as instruments of ex ante evaluation of business performance and of the first symptom of difficulty. Originality of the paper : In literature there are a very few previous studies on the contribution of the aspects relating to the territory for the default prediction of enterprises.

An Empirical Analysis of Shandong Power Grid Operational Efficiency Based on DEA-Malmquist

This article intends to use China State Grid Corp's business performance evaluation system to study the Shandong Electric Power Group Corp's power grid operation efficiency. And through analyzing the operational efficiency of each decision unit by DEA, we analyze the adjustment direction of the input and output on the angle of horizontal, vertical and internal analysis, find the investment shortage, and put forward some improvement measures. From the changes of the input and output efficiency in the last 15 years, the changing trends of the total factor productivities is found, and the successful experience of the high efficiency is obtained with the specific background.

Research on Motivation, Constraints and Countermeasures of Small and Medium-sized Enterprises Performance Evaluation

Business performance evaluation is an essential part of enterprise management activities. It is based on the actual situation of the enterprise and uses relevant indicators to evaluate the business performance and employee performance. The results of the evaluation will play an important role in the formulation and development of the enterprise's future strategy, and it is also a measure of the management level of the enterprise managers and the staff's ability to work. The paper expatiates on the necessity of performance evaluation for small and medium enterprises, the causes of performance evaluation of small and medium-sized enterprises in China are analyzed, and puts forward to strengthen enterprise managers performance evaluation consciousness, improve business performance evaluation system and other strategies to promote the strategic objectives of enterprises.

INNOVATIVE APPROACHES AND THEIR APPLICATION IN MEASURING BUSINESS PERFORMANCE

In the area of business performance evaluation, we should pay attention to innovative approaches to performance measurement. They include the application of a matrix model. This concept was initially used for addressing the efficiency of input and output transformations. However, the terms ‘efficiency’ and ‘performance’ are closely linked. Some authors even assign them the same meaning. Based on the above-mentioned, a linear programming model for addressing the problems of input and output transformations can also be applied for business performance measurement. The benefit of this paper is the measurement of business performance applying a matrix model. One of the significant outcomes of such matrix model is the formation of new indicators, which can be beneficial in business performance measurement. Another positive aspect of this approach is the creation of a network of indicators assessing business efficiency, effectiveness and performance. There are strong links between indicators in a network, which can be mathematically described. Based on the knowledge, the management of a business can focus on those functional areas, which are preconditioned for business performance and efficiency improvement.

Diagnóstico e análise para a implementação do modelo PMS em uma indústria calçadista

Uma das opções que a literatura sugere para auxiliar desafios na avaliação de desempenho advém dos estudos dos sistemas de controle gerencial (SCG), que têm se mostrado um importante mecanismo para auxiliar na avaliação de desempenho dos processos de negócios. Diante desse fato, este estudo tem por objetivo analisar quais seriam as dificuldades e os possíveis benefícios que a implementação do modelo performance management systems – PMS de Ferreira e Otley (2009) poderiam oferecer para a avaliação de desempenho estratégico e operacional. Para tal, se realiza um estudo de caso em uma indústria de calçados de grande porte. Os resultados apontam que as principais dificuldades foram: identificação dos fatores chave de sucesso; identificação das medidas chave de desempenho; criação de uma política de recompensa ou sanção para os resultados. Já para os benefícios esperados, os resultados inferem que a implementação promoveria: maior integração entre a estratégia e as operações; a criação de estratégias de negócios mais consistentes; a medição correta do desempenho; e um melhor cumprimento dos objetivos traçados.

GROUND OF BASIC ECONOMIC INDICATORS OF EFFECTIVENESS OF MACHINEBUILDING ENTERPRISES

The main objectives of the article are to determine the main economic indicators of the effectiveness of machinebuilding enterprises in the monitoring system. To optimize, you need to know what is wrong or ineffective, so it is necessary to measure various aspects of business processes that reflect the performance of the enterprise. To do this, use the monitoring system of economic performance indicators of the enterprise. So in the article existing approaches to evaluating business performance and results analysis using their validity are generalized. the criteria of evaluation of integral index of effectiveness of machine-building enterprise are certain, and also his components that is determined by basic business processes and business processes of development. The partial indicators of effectiveness are considered in the context of three-dimensional criterion format "cost - time - quality". The criteria for indicators of the individual components and the integral performance indicator based on typical Harrington scale intervals are defined and meet the following levels: high, sufficient, satisfactory, inadequate and critical level. Evaluating the effectiveness of the proposed methodological approach provides a basis for defining a list of existing problems and providing substantiated proposals for the implementation of corrective and / or preventive measures aimed at improving the company's performance. Using such an assessment will provide managers with the opportunity to receive regular analytical information to monitor the performance of the enterprise, assess the relevance of the company's current activities to strategic goals and prospects of development, timely response to organizational changes. Prospects for further research, we see in determining the ratio of proposed performance indicators to the traditional economic indicators of machine-building enterprises.

The Discussion about International Agricultural Logistics and Distribution System of Henan Wanbang

With the development of economic globalization, The current development of China’s agriculture has shifted from production areas to circulation areas, People on fresh produce a concern degree higher and higher, the key is to ensure agricultural products fresh degree is the logistic distribution. This article takes the distribution system He nan wan bang International Agricultural Logistics Park for the study, From the current situation, agricultural logistics perspective, Through Wan bang distribution status, Problems distribution system was investigated, Also it includes its logistics strategy, organizational design and distribution, distribution function, operations and process design, information systems and mechanical equipment analysis, business performance evaluation and so on. With related theory, To study the issue of logistics through knowledge learned, Put forward reasonable solutions, Wan bang optimized logistics and distribution system of agricultural products.

THE FORMATION OF THE MONITORING SYSTEM OF INNOVATIVE STAFF ACTIVITY

Urgency of the research. Personnel management in the penal system is a process that is due to specific features of penitentiary department, and objectives defined at the present stage of reform. Achieving the strategic and tactical objectives, possible only if the assessment of professional skills, personal qualities and growth prospects of workers. Target setting. The aim of effective personnel management ensured effective system for its evaluation and certification. Availability of shortcomings in the evaluation process of personnel is a factor that affects the efficiency of the penal system. Actual scientific researches and issues analysis. Problems related to the assessment of business and personal qualities of staff examined in the works of foreign and local scientists D. Aaker, A. Antonyuk, S. Honcharov, J.Greyson, O. Zaharov, K. Kovalchuk, F. Stremnikov, A. Kibanov and others. Uninvestigated parts of general matters defining. Despite the considerable theoretical development of the problem, there is no single approach to understanding the value of staff in the strategic development of the penal system. The research objective. The article investigates business performance evaluation system of staff personal development of the penal system. The statement of basic materials. In terms of actual reform of the penitentiary department is to develop an effective system of personnel evaluation that reveals extent to professional, business and personal qualities of the employee. In order to optimize human resources management system proposed introduction of monitoring activity management, providing evaluation training, growth potential and analysis of innovative activity. Conclusions. The proposed system is to assess the level of qualification of certified and hired staff of the correctional system, and determine the value of employee penitentiary department of the country.

Analysis of Small and Medium Sized Enterprises’ Business Performance Evaluation Practice at Transportation and Storage Services Sector in Latvia

In the circumstances of globalisation, the assessment of the companies’ business performance becomes crucially important for small and medium-sized enterprises (SMEs). Despite a wide variety of the methods for evaluation of the companies’ financial performance offered by the theory of economics, the issue on what is the optimal method to be chosen and to be applied by the company to manage efficiently the enterprise is still up-to-date. During the research performed by the authors, it was established that the SMEs business performance assessment in Latvia can be carried out mainly using just financial indicators. The research reveals inadequacy of traditional performance measurement approach based on the analysis of just financial indicators of the economic activities and explains its insolvency by using as an example the analysis of financial conditions of some bancrupted companies during the recent years of their existance. The current research is based on the analysis of scientific publications, results of the authors’ previous studies, and the results of the expert survey.

Customer Satisfaction Index Model for Indian Banking Industry: A Qualitative Study

The conventional financial measures have always dominated the business performance evaluation in India. There is a need to augment the current approaches to evaluate the financial health of individual firms and industries. Customer Satisfaction Index (CSI) is one of the best solutions which is a customer-based satisfaction benchmarking system and serves as a standard metric, widely implemented in the United States and Europe. However, there is no such index in India and there is a need for a non-financial, customer-based satisfaction metric. This study is a pilot attempt to develop a Customer Satisfaction Index (CSI) model, specifically for the Indian banking industry. To achieve this, the focus group technique was employed to find the key determinants of customer satisfaction in the banking industry. The comprehensive thematic analysis revealed a total of six themes and nine sub-themes which have been proposed as the antecedents of customer satisfaction in the CSI model for the Indian banking industry. The future research intends to develop instrumentation based on the focus group results and validate the hypothesized CSI model proposed in this study.