Business Performance Indicators Research Articles

Unlocking Business Success: The Role of Financial Literacy, Innovation Capability, and Government Support

Purpose: This study aims to analyse the effect of financial literacy and innovation capability on business performance with government support as a mediating variable. Theoretical framework: Government Support as a mediation was analyzed the effect of financial literacy and innovation capability on business performance. Method: A quantitative methods approach was used by distributing questionnaires to 110 Food & Beverage MSME in Jakarta Area. The data collection process was carried out using google form, then analysed using path analysis processed using Smart-PLS. Result: This study found that financial literacy has positive impact on government support but innovation capability has not, then innovation capability and government support have the positive effect on MSME performance, but financial literacy has no impact on MSME performance. The mediation test found that government support mediates the effect of innovation capability and financial literacy on MSME performance. Research, Practical & Social implications: This finding suggests that the government as a regulator should continue to increase its support for MSME actors so as to improve the performance of MSME businesses. This finding encourages MSME actors to have strong instincts in creating and implementing the latest innovations in their business to get government support in improving their business. Originality/value: This study uses 3 business performance indicators using primary data which are usually used in analysing the company's secondary data, with sufficient validity and reliability results, the use of these indicators is also suitable in analysing business performance in primary data.

Recent advances in smart manufacturing: a case study of small, medium, and micro enterprises (SMME)

The digital revolution is the future pathway to experiencing business evolution. It will be difficult for any organization to remain in business without deploying fourth industry revolution (4IR) techniques. This review guides prospective business owners on the need to embrace Smart Manufacturing (SM) timely and appropriate to enhance their business performance indicators. Many manufacturing companies are facing challenges in adopting SM tools in their organization due to a lack of essential resources despite the benefits associated with SM. Therefore, this study systematically reviewed the criteria evaluation techniques in implementing digital factories. This work has analysed small, medium, and micro enterprises (SMME), with the view to enumerate the appropriate criteria to determine the level of digital technology tools adoption framework. It also highlights how to compensate for the inadequate technical and financial resources in SM. The guidelines for SM implementation adoption in SMME is a research gap that was missing in previous studies. SM benefits, challenges, applications, significance, impact, and future perspectives, are discussed. Evaluation Criteria for SM Adoption practices were also expounded. The framework used in this study will help SMME owners to adopt SM.

Does the use of digital tools improve a firm’s performance?

AbstractThe COVID-19 pandemic has had a significant economic impact. Different economic agents have been forced to make temporary or permanent changes to their usual patterns of economic activity. In some business sectors, confinement brought activity to a standstill; in others, it led to the spread of teleworking and, in parallel, highlighted, among other aspects, the importance of digital sales channels. In this context, digitalization can be seen as an opportunity (even a necessity) to maintain the level of business activity and to develop new business initiatives. Firms that used digital tools in their pre-pandemic processes were better prepared to face the health and economic crises and could emerge from them earlier than those companies that were less digitized. Drawing on data from The Future of Business Survey, this paper analyzes the adoption of digital tools in the wake of the pandemic and examines the relationship between pre- and post-pandemic indicators of business digitization and business performance, as measured by sales and employeees. It also considers the diversity of existing digital platforms and the possible uses of these tools.

The impact of social media on rural area: A bibliometric analysis

The number of general retail visits has decreased worldwide due to the COVID-19 pandemic. Individuals who previously used social media for commercial transactions now choose e-commerce. Social media allows clients to voice their opinions during crises, boosting product visibility. This study investigates the use of bibliometric analysis to shape social media use in "rural areas" to better understand "social media" in these places. Scholarly articles on rural social media share these findings. Scopus was used to collect "social media" and "rural areas" data. Social media use in rural regions was examined in 119 publications. These articles were used to identify patterns and predict the future. Multiple social media and rural area articles were used to classify and examine distribution states to find key research advancements and divisions. This study explored rural social media use and related research gaps. Synthesizing the findings provides a solid framework for future research. This study examines marketing research, focusing on social media and rural locations. It also discusses the value of social media journals for businesses, developing research trends and future opportunities in rural social media organization, and identifying critical business performance indicators. Rural social media's purpose. The capability framework can help find new marketing research avenues.

Motivations and Issues for Women Entrepreneurs in Enhancing Business Performance in the Smart Tourism Sector of Bangladesh: A Case Study

In this case study, the impact of female entrepreneurs' motivations and obstacles on business performance in Bangladesh's smart tourism industry is investigated. The purpose of the study is to provide light on the challenges that women face and the variables that encourage their involvement in entrepreneurship in the smart travel and tourism sector. This study aims to advance our understanding of women's entrepreneurship dynamics within the unique context of Bangladesh's smart tourism industry by carrying out an exhaustive investigation and analysis. The research uses a case study methodology and focuses on female entrepreneurs in Bangladesh's smart tourism sector. The study looks into the main reasons why women choose to start their own businesses in this industry using qualitative techniques like surveys, interviews, and in-depth examinations of business performance metrics. The focus of the research is to provide insight into the tactics used by female entrepreneurs to overcome obstacles, innovate within their companies, and support the expansion of the travel and tourism industry. Additionally, the study looks at how these incentives and difficulties relate to business performance indicators like revenue growth, market presence, and sustainability in the end. The case study improves our knowledge of gender-specific dynamics in entrepreneurship from an academic perspective and has real-world applications for policymakers, organizations that assist small businesses, and female entrepreneurs. A more inclusive and encouraging business environment can be fostered by stakeholders by identifying the reasons behind women's entrepreneurial success in the tourism industry and addressing the obstacles they encounter. The ultimate goal of the case study is to enhance the success of individual female entrepreneurs in Bangladesh's tourism industry while also contributing to the industry's overall vibrancy.

Creating information about business processes of IT-company in management accounting

Introduction. Formation of information about business processes in the management accounting system will help to avoid the deforming transformations of individual processes and sharp dynamic fluctuations in key business performance indicators. For a clear understanding of the need to optimize each process in the management accounting system, there is an opportunity to form a series of indicators that will demonstrate in real time the growth in business value and its real state. For IT companies, it is necessary to take into account the peculiarities of their organization and the construction of business processes, the identification of a series of indicators to identify «bottlenecks» and determine processes that need optimization and reengineering. The purpose of the study is to explore and analyze methods of creating information about business processes in IT companies.
 Research methods. To conduct scientific research in the article, the following were used: monographic analysis to study scientific works on the topic of research; critical analysis – assessment and comparison of approaches, methods, and results of previous studies; case study methodology – studying the practice of management accounting in IT companies; data analysis and statistical analysis, content analysis, and expert evaluations to obtain results.
 Results. The article highlights the processes of analysis and description of business processes, identification of key performance indicators, and integration of technologies for optimizing work. In the management accounting system, it is proposed to introduce a coefficient measure of business size, evaluate different product models, predict increases/decreases in efficiency, forecast the impact of the external environment, and form relevant information for managerial decision-making.
 Prospects. Promising directions for the development of research are issues of effective resource management, methodologies for systematic analysis of business processes, and improvement of strategic planning.

The Effects of the Covid-19 Pandemic on Corporate Social Responsibility and Business Performance in Companies Listed on the Warsaw Stock Exchange

Abstract The COVID-19 virus pandemic had an impact on all segments of life, including dally operations of companies. Companies had to adapt to market developments and change their business philosophy in order to survive in the market. This paper showed how the crisis caused by the COVID-19 virus pandemic affects the business of companies. This study aims to examine the business performance indicators (BPI) of companies listed on the Warsaw Stock Exchange (WSE) before and during the COVID-19 pandemic with a focus on corporate social responsibility (CSR). In order to examine this, a multivariate regression analysis was conducted. The findings show that there were no changes in the BPIs before and during the COVID-19 pandemic in companies in relation to CSR strategy. The only exception was found in the group of CSR companies that reported a lower profit margin during the COVID-19 pandemic. Companies with better BPIs may be willing to introduce CSR principles into their strategy and during the pandemic, intangibles influenced CSR strategy in a negative way. The limitations of the article are related to the study of only one market. Identified relationships allowed for a better understanding of the application of social responsibility principles among enterprises in Central Europe.

Financial Analysis and Valuation of Tesla Inc.

As the head of the new energy vehicle industry, whether Tesla's market value is overvalued compared to the industry average, and whether the new energy vehicle market outlook is optimistic has been a hot topic. This paper firstly compares and analyzes the business performance and several financial statement indicators of Tesla and other companies involved in the production of new energy vehicles, points out the huge difference between Tesla's valuation and its performance, and secondly analyzes the reasons for the difference in Tesla's valuation through the industrial structure and strategy of Tesla, and points out that Tesla's market value hides the capital market's special premium for technological innovation industry, high threshold industry, and environmental protection energy development. Tesla's market capitalization has a special premium for technological innovation, high-threshold industries, and environmental energy development. Finally, this paper judges the considerable development potential of the new energy vehicle industry in the new era of environmental awareness and points out that it should analyze the industry with future expectations as the main indicator and view the valuation from a long-term investment perspective.

Do entrepreneurial characteristics have an impact on business performance? A case in micro, small and medium enterprises of palm sugar in West Nusa Tenggara

This study researches aims to analyse the effect of entreperenurial characteristics towards the business performance of palm sugar MSMEs in the West Lombok Regency. In this research, entrepreneurial characteristics consist of individual and psychological characteristics; whereas entrepreneurial competencies consist of managerial skill, conceptual skill, social skill, decision making skill and time managerial skill; finally, business performance indicators consist of profit and sales volume. This research used Warp-PLS 8.0 software with a structural equations model. A questionnaire was given to 100 respondents who have palm sugar MSMEs. The result showed that both individual and psychological entrepreneurial characteristics positively influenced business performace. These findings are importance for government to know the increase the performance of palm sugar MSMEs in West Nusa Tenggara.

Longitudinal study of lean tools in Spanish manufacturing firms

PurposeLean management is a suitable methodology for companies that want to improve their productive performance and competitiveness. This study aims to research levels of implementation and internalisation of Lean production tools in Spanish manufacturing companies, and explores differences in behaviour between SMEs and large companies based on data gathered over three time periods. The correlation between Lean adoption and company performance is also analysed.Design/methodology/approachCompany survey data for the years 2012, 2015 and 2018 collected from 354 respondents were used to conduct a longitudinal study on the level of lean tool adoption and internalisation in manufacturing companies.FindingsOver the years, the use of Lean tools has increased, whereas levels of internalisation have remained stable. Lean tool use in SMEs and large companies show significant differences in 2012 and 2015, but this is no longer the case 2018. Results also show that higher Lean tool use helps increase return on sales (ROS), and higher levels of internalisation of tools helps reduce the number of products rejected.Originality/valueTo date, there are no known studies on the use and internalisation of Lean tools or their correlations with business performance indicators in Spanish manufacturing companies.

From customer intelligence to sustainability: management feature of SMEs in Almaty City

ABSTRACT The aim of this study is to obtain data on the perception and use level of customer intelligence (CI) tools, including customer database, customer journey map, customer feedback from Kazakhstan’s small and medium-sized enterprises (SME). Furthermore, this study aims to examine the impact of these tools on the marketing activity effectiveness through indicators of marketing performance, and, as a result, on the SME’s sustainability in Kazakhstan. Expert interviews (owners and managers of middle and top levels) with 25 Kazakhstani companies and a literature review are conducted to achieve the research objectives. This research presents how SME experts understand and apply CI features, estimate the potential and probability of changes and the agents restraining these changes in marketing activities from the CI lens, and enumerate marketing and business performance indicators. Based on the findings, the model of SMEs’ value and the importance of CI applications in marketing activity is created and presented.

Relationships between Farmer Psychological Profiles and Farm Business Performance amongst Smallholder Beef and Poultry Farmers in South Africa

Beef cattle and poultry are critically important livestock for improving household food security and alleviating poverty amongst smallholder farmers in South Africa. In this paper, our goal is to examine the relationships between farmer psychological profiles and farm business performance of commercially oriented beef cattle and poultry smallholder farmers in South Africa. We employ a multipronged interdisciplinary approach to test the theory of planned behaviour and its relationship to farm business performance. First, a behavioural science-informed survey instrument was employed to collect data from randomly selected farmer participants in two major beef and poultry projects undertaken by the authors. Second, a latent profile analysis was used to identify the psychological profiles of those farmers. Third, traditional and estimated indicators of farm business performance were obtained using descriptive and econometric-based approaches, including logistic regression and stochastic frontier analyses. The estimated farm business performance indicators were correlated with the psychological profiles of farmers. Results from the latent profile analysis showed three distinct profiles of beef and poultry farmers clearly differentiated by their ability to control and succeed in their farm business enterprises; criteria included attitude, openness to ideas, personality, perceived capabilities, self-efficacy, time orientation, and farm- and personal-related concerns. Profile 1 (‘Fatalists’) scored themselves negatively on their ability to control and succeed in their business enterprises. The majority of farmers were generally neutral about their ability to control and succeed in their businesses (Profile 2, ‘Traditionalists’), while a relatively small group of farmers were confident of their ability to succeed (Profile 3, ‘Entrepreneurs’). We found evidence of significant differences in farm business performance amongst the different profiles of farmers. As far as we can determine, this is the only study to have assessed farm business performance based on a differentiation of farmers’ psychological profiles. Our results provide a framework to further investigate whether particular types of on-farm interventions and training methods can be customised for different segments of farmers based on their preferred learning styles.

The Effect of Digital Transformation On The Revitalization of Msmes In Pandemi Time With Digital Literacy As An Intervening Variable (Case Study of Micro Enterprises in the City of Bukittinggi)

This study analyzes whether the application of digital transformation affects the revitalization of MSMEs during the pandemic and whether it can be mediated by digital literacy. Using a sample of 378 respondents from micro-sector MSMEs in Bukittinggi City in 2021, this study reveals that the application of digital transformation and digital literacy is positively related to the revitalization of MSMEs, which in this case uses business performance indicators to serve as a basis for determining the level of success. from the revitalization of SMEs. This finding offers empirical evidence about the importance of digital literacy in the relationship between implementing digital transformation and revitalizing MSMEs during the pandemic. This shows that the implementation of digital transformation will not succeed without an educational intermediary for digital technology itself. Furthermore, this study recommends strategies to improve the application of digital transformation for MSME business actors by increasing digital literacy of business actors

Use of Controlling Instruments in Croatian Companies during the Pandemic

Nowadays, in times of corona crisis, controlling is gaining much attention because it represents an effective internal mechanism that can greatly contribute to a timely and rapid response to changes. Controlling activities reflect the quality of company management at the strategic, tactical, and operational levels. In doing so, controlling uses appropriate instruments and contributes to business efficiency and effectiveness. The research aims to determine the current state of controlling instrument application (operational/strategic) in companies. Further, we examine the role of controlling in stabilizing business operations and adjusting business strategies that affect business performance indicators in the context of the corona crisis. The survey method was used and data were collected from 180 companies of different sizes in the Republic of Croatia. The survey was conducted in 2021. Nonparametric techniques, the Chi-square test and the Kruskal-Wallis test were used for hypothesis testing. The findings show: (1) there is a significant relationship between the role of controlling in business stabilization and business strategy redirection in times of corona crisis and thus affects business indicators measured by liquidity, profitability and indebtedness, (2) there is a statistically significant difference between those companies who established controlling department and those without a controlling department in the application of operational controlling instruments, (3) there is no a statistically significant difference between those companies who established controlling department and those without a controlling department in the application of strategic controlling instruments. The results of the study provide insight into the application of controlling instruments in Croatian companies during the corona crisis and empirical implications for academics and practitioners. <br />Implications for Central European audience: Nowadays, market volatility and external factors significantly influence the business decisions of Central European companies. For managerial decisions to be timely and effective, controlling uses various instruments with the aim of better advising managers. To be more agile, companies have to use a combination of operational and strategic controlling instruments. In the Republic of Croatia, as a post-transition country, companies are more short-term oriented, which is visible in the significant use of operational controlling instruments, and to a lesser extent strategic instruments. In times of pandemic and geopolitical events, the results of the research indicate the need for the strategic orientation of companies through the application of strategic controlling instruments in the practice of Croatian companies to increase the efficiency and effectiveness of operations.

The EFQM Model as an Exquisite Tool for the Analysis of Business Excellence and Its Use in the Healthcare Industry

The author links together business analysis and business excellence as an ideal that all well- performing organisations wish to achieve while attaining and continuously maintaining superior levels of business performance, thus fulfilling and even exceeding the expectations of their stakeholders. He leans on the EFQM model and uses it as an excellent tool for analysing the business of an organisation throughout all the phases defined by traditional business analysis. This includes the observation of facts and identification of problems, which can be construed as defining the organisation’s strengths and areas for improvement. This entails setting up hypotheses and testing them by applying appropriate measures. After a short introduction, the author makes first a thorough literature review on business excellence in the last two decades with an emphasis on the EFQM Model. He focuses particularly on the assessment and critical attitude of individual researchers who have studied this topic. Further, the author presents the basic concepts and elements of the EFQM model of business excellence, with a particular emphasis on the RADAR matrix as a very useful instrument (management tool) for business excellence analysis. He also presents the use of the model for analysing and assessing the business excellence of organisations in the public sector, specifically in the healthcare industry (hospitals). He presents the key attributes (select healthcare aspects) that define the quality of healthcare services for its key participants, i.e., patients and the payers of these services. These attributes, namely technical performance, interpersonal relationships, amenities and access, patient preferences, efficiency and cost effectiveness, are then highlighted by select business excellence criteria, mainly referring to the stakeholders’ perception of the organisation in question and business performance indicators. The author rounds off his paper with a couple of recommendations regarding the identification of strengths and areas for continuous improvement, which he, as a leading assessor with many years’ experience, including in the healthcare industry, considers as the most important aspect of business excellence analysis.

The influence of corporate management on the optimization of business processes

Cite as: Miroshnychenko I., and Bradul, O. (2023). The influence of corporate management on the optimization of business processes. Economic analysis, 33 (4), 253-260. DOI: https://doi.org/10.35774/econa2023.04.253 The relevance of the study is due to the fact that today the economic situation in Ukraine in connection with the military aggression of a neighboring country has acquired a rather critical state, as a result of which many domestic corporations are losing production ties, key suppliers and sales markets, reducing business performance indicators processes. Therefore, the main task of corporate management is to find ways to optimize business processes in the existing conditions and direct all the potential of the corporation to maintain and preserve the business. The purpose of the study is to determine the specifics of the impact of corporate governance on the optimization of the enterprise's business processes. The object of the research is cooperative management and its influence on the optimization of the corporation's business processes. The theoretical analysis within the scope of this study was carried out on the basis of the methods of analysis, systematization, generalization and comparison of the theoretical provisions of various researchers regarding the definition of the essence and content of corporate management, as well as its influence on the optimization of the enterprise's business processes. Based on the results of a critical review of scientific works on the essence of corporate governance, the following scientific approaches to its interpretation were distinguished: classical, managerial, regulatory, controlling, strategic, effective, shareholder stakeholder. The author's vision of a complex system of interaction of such approaches based on their systematization into three groups (interest, management, effect) is proposed. At the same time, interest-group approaches are distinguished by a greater attention of scientists to the issues of satisfying the interests of participants in corporate relations, management - an emphasis on management functions and tasks of corporate management, and the effect - on obtaining the desired results from such management in a strategic perspective. The definition of corporate governance is proposed as a system of managing corporate relations in an organization that functions in order to realize its strategic goals by ensuring the effectiveness of the mechanism for making effective decisions based on the regulation and control of corporate rights and monitoring the results of activities to ensure the balance of interests of participants in corporate relations. The content of the concept of "optimization of business processes" in the environment of corporate management is proposed, which is based on the key role of corporate management, which develops a strategy aimed at the result.

CORPORATE SOCIAL RESPONSIBILITY THROUGH MOTIVATING EMPLOYEES IN TYPICAL STATE-OWNED ECONOMIC GROUPS IN VIETNAM

In Vietnam, among 10 biggest economic groups (SEGs), four representatives, which are Viettel, Mobifone (belonged to VNPT in the period 1994-2016), Bao Viet Insurance (belonging to Bao Viet Group), Petroleum Insurance (belonging to PVN Group), have been ranked in the top list of 100 most desired employers in the market by Anphabe. This means that the working environment at the parent company or some subsidiaries of these four groups retains good employees and constantly attracts new talents to join. However, with the great potential and incentives on resources received from the Government, the business performance indicators of those State Economic Groups are not really commensurate. The root of the problem lies in the motivation of the workers. Also, the picture of corporate social responsibility is also much more energetic when the business situation of the groups becomes positive. When international partners and importers require Vietnamese enterprises to comply with global standards on occupational safety, worker health care, and environmental protection, Vietnamese enterprises will have stronger motivation to change and improve their performance, which means increased competitive advantage in the globally integrated environment. Therefore, this paper focuses on the relationship between CSR and the process of motivating employees to suggest new and more groundbreaking research directions on this issue in the future. This study is one of very few studies which have examined the potential relationship between Corporate Social Responsibility and Employee Motivation, with a look from the inside of the company towards the outside connection with society, communities and the customers. The effects can be imposed in back-and-forth directions between CSR and Employee Motivation activities of the company.

Airline’s business performance indicators and their impact on operational efficiency

Airline’s business performance indicators and their impact on operational efficiency

THE IMPACT OF HUMAN CAPITAL VALUE ON HUMAN CAPITAL EFFICIENCY AND BUSINESS PERFORMANCE

In the knowledge economy era, human capital is a part of intellectual capital and a significant factor in enterprise competitiveness. The importance of human capital is often diminished due to the accounting expression of investments in human resources in the income statement as a cost (expenditure) component. This paper points to the fact that the cost of human resources is an investment that affects the growth of the business performance of an enterprise. Hence, the aim of this paper is to examine the impact of human capital value on human capital efficiency and business performance indicators, such as sales revenue (SR), earnings before interest and taxes (EBIT), and EBIT margin (EBITM). To examine this impact, empirical research is conducted on a sample of 24 companies with the highest brand value for the period 2012-2019. The regression analysis results show that sales revenue and EBIT grow by 0.77% and 1.1% respectively as human capital value grows by 1%. Additionally, findings reveal that the growth of the human capital value negatively affects the values of human capital efficiency indicators and EBIT margin in the sample of examined enterprises.

Business performance and occupational injuries trajectories in the construction sector in Sweden

ObjectiveTo identify patterns in business performance and occupational injuries (OIs) in the Swedish construction sector between 2003 and 2015 and investigate associations between these trajectories. MethodsCompany-level data were gathered from national registers. An open cohort of 13,089 private construction companies were classified by size. Yearly business performance indicators were return on equity, operating margin, and labor-to-revenue ratio. OIs rate was defined as number of injuries divided by number of employees. Group-based trajectory models were performed to identify companies with similar patterns in business performance and OIs rate over time. Associations were investigated with binomial regression models. ResultsThe model identified two main patterns (high/low) of injuries and business indicators for all company sizes. Trends in low labor-to-revenue ratio were associated with a high injury rate with a pooled estimate of 1.43 (95% CI 1.22–1.64) with some variation by company size: super small OR 1.3 (95% CI 1.01–1.62), small, OR 1.74 (95% CI 1.39–2.18), medium OR 1.3 (95% CI 0.9–1.8) and large OR 2.1 (95% CI 0.77–5.7). Similarly, low patterns of returns on equity were associated with high injury rate patterns across all company sizes, excluding small enterprises. No associations were found for operating margin patterns. ConclusionsLow returns on equity and labor-to-revenue ratio were associated with higher OIs rate trajectories in the Swedish construction sector, which has implications for injury prevention as well as targeted surveillance and inspection. Further studies could investigate other economic sectors and possible mechanisms for this association.