Changing Business Environment Research Articles

Sharing Economy Practices in Changing Business Environment: Transaction Cost, Resource-Linking, and Hypercompetition Perspectives

Digital business is a phenomenon that is closely related to sharing economy business in pursuit of new entrepreneurial opportunities in Indonesia. This article aims to analyze the changing business environment because of the disruption from sharing economy practices, as well as analyze the competitive dynamics between the disruptors. The results show that sharing economy practices can change the business environment through differences in transaction costs within the cost structure and by capturing opportunities beyond the existing market through resource-linking strategies. The comparison study of Go-Jek, Grab, and Uber shows that the growth trajectory of sharing economy startups can be triggered by hypercompetition among them as the market leader.

Exploring the Drivers of Business Model Innovation: Insights From a Single-Case Study in Agribusiness

Business model innovation has become a crucial factor for firms to remain competitive and achieve sustained success in today's rapidly changing business environment. The concept of business model innovation involves fundamentally changing the way a firm creates, delivers, and captures value, with the aim of creating value for the customer and capturing value for the company. However, despite its importance, the factors that drive firms to innovate their business models are not well understood and often assumed to be driven solely by profit. To address this gap in understanding, this research aims to examine the drivers of business model innovation in firms. Through a review of existing literature and a single case study, the study will explore the motivations and pressures that lead firms to seek new business models, as well as the internal and external factors that influence their ability to successfully implement these innovations. The case study will provide a deeper insight into the real-world complexities of business model innovation and will shed light on the practical considerations and challenges that firm faced in this process. The findings of this study will contribute to a deeper understanding of the drivers of business model innovation. By exploring the strategic, organizational, and external factors that influence the decision to innovate, this study will provide a more nuanced view of the complex process of business model innovation. In conclusion, this research will provide valuable insights for both practitioners and scholars on the factors that drive firms to innovate their business models and the factors that may influence their ability to successfully implement these innovations. By exploring the complexities of business model innovation through a single case study, this research will contribute to the existing literature and provide a practical example of a firm looking to stay ahead of the curve and maintain a competitive advantage.

Barriers to the adoption of Islamic banking: a bibliometric analysis

PurposeThe adoption of Islamic banking (AIB) among customers has remained in the limelight due to its significance in the strategic marketing of Islamic banking (IB) services. Although researchers have devoted a significant effort to investigating the drivers of AIB, little is known about the exclusive barriers hampering AIB. Accordingly, this paper aims to examine the underlying barriers to the adoption of Islamic banking (BAIB) and categorize them into different research clusters using bibliometric analysis.Design/methodology/approachThe data was collected from 132 articles published in Scopus database between 2007 and 2022 and analyzed using VOSviewer to explore BAIB.FindingsThe findings clustered the barriers to AIB into three groups, namely, efficiency of IB products and services (service quality, Shariah compliance level, availability of services), behavioral (knowledge and awareness, religiosity, trust and intention) and personal attributes (innovativeness, understanding of mobile/internet banking and technology acceptance) factors of Islamic bank customers.Research limitations/implicationsThe sample size of this study is relatively small, as the data was imported from Scopus database only to perform Bibliometric analysis. Future studies may use larger sample size by retrieving data from other databases such as Web of Science and PubMed to develop better research clusters of BAIB.Practical implicationsThe dynamic business environment and unprecedented changes in consumer behavior require managers creating suitable conditions to foster adoption of their services and capture a better market share.Originality/valueFollowing the findings of this research, future research avenues are identified for strategic embeddedness and global development of IB by overcoming BAIB.

Understanding Sentiment and Emotion through ChatGPT to Support Emotion-based Management Decision Making

Effective management decision-making is a key element in organisational success. In the ever-evolving digital age, human interaction with computer systems is increasingly complex and diverse. One increasingly popular form of interaction is the use of Chatbots that are based on artificial intelligence technology. Chatbots trained using language models, such as ChatGPT, have demonstrated their ability to communicate with humans naturally and can be used in a variety of applications, including in management contexts. This research aims to fill this knowledge gap by proposing and implementing a customised ChatGPT model for understanding sentiment and emotion in the context of management decision-making. This research is a literature review that adopts a qualitative method approach, which means it will analyse and interpret data by relying on information and text from various sources. The study results show that understanding sentiment and emotion through ChatGPT is an important innovation that can support emotion-based management decision-making in an increasingly complex and rapidly changing business environment. By analysing and recognising feelings, views and attitudes in text, ChatGPT provides valuable insights for managers to respond to market changes, understand customer and employee views, enhance brand and reputation, and create a healthier and more productive work environment.

Managing Financial Performance toward Achievements in Sustainability Prospects: Comparative Analysis of the e-Commerce and Hospitality Industries

The recent pandemic has been identified as a driver of one of the most severe socio-economic crises over the last few decades. While some sectors have experienced an expansion, others have struggled with a changed business environment. The aim of this research is to simultaneously examine the financial performance and sustainability of the e-commerce and hospitality industries, applying asset and debt ratio analysis to the top five companies in the world from each sector in the time period from 2017 to 2022. The results indicate that the assessed companies demonstrated the ability to successfully manage some of their assets. The debt ratio analysis implies that the assessed companies in the hotel industry have reshaped their capital structure, increasing their reliance on debt in 2020 and 2021 to finance their assets. On the contrary, the selected e-commerce companies were found on average to rely less on debt to finance assets. In accordance with expectations, the differences across the examined sectors and companies that have been observed are mostly in regard to the lower scale of utilization of fixed assets to generate turnover, and in terms of the increased share of debts used to finance assets in the hotel industry, which was among the first and hardest hit by the pandemic. Consequently, the study allows policy makers to identify distinctive strategies for each area of economic activity.

Manajemen Strategis PP. Avia Avian Tbk

Strategic management is a crucial approach for organizations in facing a dynamic changing business environment. PT. Avia Avian Tbk, as a company operating in an industry, faces diverse challenges and opportunities in a rapidly changing environment. This study aims to analyze the strategic management approach implemented by PT. Avia Avian Tbk in facing market and technology changes. This research uses qualitative analysis methods by conducting an in-depth review of the company's documented strategy and interviews with key stakeholders in the company. The results showed that PT. Avia Avian Tbk has adopted a strategic management approach that focuses on [e.g. product differentiation, operational efficiency, new market penetration, or technological innovation]. These strategic steps are geared towards maximizing value for the company's stakeholders, including shareholders, customers, employees, and society. One of the important aspects in the strategic management of PT. Avia Avian Tbk is the use of environmental analysis tools such as PESTEL (Political, Economic, Social, Technology, Environmental, Law) to identify external factors that may affect their business. In addition, the company has also set measurable long and short-term goals, and implemented performance measurement and monitoring mechanisms to ensure the achievement of these goals. Overall, this study provides insight into the strategic management approach applied by PT. Avia Avian Tbk and how the company strives to optimize its business performance in the midst of a changing business environment. The research also provides a foundation for other companies in similar industries to understand best practices in dealing with similar challenges.

Enterprise value management: directions, key factors and growth tools

Methods. The theoretical and methodological basis of scientific research was the work of scientists on the assessment and management of enterprise value. The main results are obtained through the use of general scientific and special methods, namely: theoretical generalization – during the study of the enterprise cost management process; analysis and synthesis – to substantiate the company’s cost management directions; a systematic approach – in the formation of key factors contributing to the increase in value and determining the tools that can be used to achieve this goal. Results. The results of the study shed light on issues related to the areas of enterprise cost management. The application of various approaches, namely: financial, economic and strategic approaches to determining the value of the enterprise by scientists is revealed. The main factors that affect the increase in the value of the enterprise are highlighted: increasing profitability, optimizing the capital structure and increasing the efficiency of operations. Novelty. The study points to the importance of combining different business valuation methods to obtain more accurate and comprehensive results. This allows better understanding of the current state of the enterprise and developing more effective cost management strategies. It has been proven that cost management becomes a tool that helps enterprises to effectively respond to changes in the international business environment and use new opportunities for development. Practical value. The results of the research can be useful for business entities and investors. They can use the recommendations and tools provided in the article to improve the cost management of their enterprises, increase their competitiveness and attractiveness to potential investors.

A Literature Review and Conceptual Framework on Corporate Strategic Foresight – What Value Created as a Source of Competitive Advantage in the Automotive Industry

Nowadays, the challenge in the automotive industry is more demanding due to the increase in dynamicity and complexity of environmental changes in the external business environment. Under the increasing uncertainty level, companies require a strategic approach to face these challenges. One of the essential techniques used to meet the environmental dynamic is corporate strategic foresight. Hence, it is essential to understand its value creation because the business environment is getting more uncertain and intense competition. However, the investigation of corporate strategic foresight value creation in the automotive industry is limited. This study aims to investigate corporate strategic foresight value creation and attempts to answer the research question of what value is created from corporate strategic foresight as a source of the firm's future competitive advantage in the automotive industry. This study employed a narrative literature review method based on the existing literature as a part of the qualitative study. The result showed a novelty in the conceptual framework of corporate foresight value creation in the automotive industry. It also provides insight into how organizational values are created to enhance the capability to gain competitive advantage, which contributes to practical especially to managerial and practitioners’ automotive industry for a better understanding of corporate strategic foresight.
 Keywords— automotive; competitive advantage; corporate strategic foresigh; environmental dynamic; value creation

The Impact of Theory U on Corporate Governance as an Essential Risk Management and Performance Improvement Tool

This paper established the effectiveness of Theory U as a risk management and performance management tool, thereby enhancing an efficient corporate governance system in organizations. The authors provided insights into how organizations can solve corporate governance problems and ascertain a risk management culture that, in turn, optimizes opportunities and minimizes threats to the business. Theory U offers a transformative approach to corporate governance and drive performance improvements. This is attained by fostering a culture of collaboration, innovation, and adaptability, which enhances the effectiveness of governance mechanisms. While implementation may pose challenges, companies that embrace Theory U as an essential risk management and performance improvement tool stand to reap significant benefits, including enhanced resilience, sustainable value creation, and long-term success. The authors outlined the benefits of Theory U and several examples of empirical case studies of organizations that have benefited from this model. Adopting the positivism paradigm of research, this paper has provided examples of how organizations utilized this model. Three hypotheses were tested to validate the data results. In sum, the authors emphasized that critical corporate governance issues can be overcome by adopting this innovative approach, thus enabling organizations to demonstrate enhanced organizational resilience and thrive in today's rapidly changing business environment.

Corporate Social Responsibility and Organizational Performance: A Theoretical Review

This paper utilized a theoretical approach to examine the impact of corporate social responsibility on organizational performance. The paper notes that corporate social responsibility is an essential strategic component of several business organizations as they try to navigate the highly changing business environment. Some benefits of corporate social responsibility involvement identified includes assisting business firms to gain competitive edge over by increasing their reputation and acceptability, market share, improve profitability as against their rivals with less or unrecognised social involvement in their operating environment. The paper concluded that corporate social responsibility drives organizations profitability, and helps organizations gain competitive advantages over rivals in the market arena. It is recommended that managements should make social responsibility involvement a key strategic part of its business operations. Management should scan their environment to identify the appropriate need of their operating environment so as to understand what the people actually need, than just initiating and carrying out projects that may not be beneficial to the society, as this will put the organization in bad light, and their efforts may not be recognized and appreciated. Additionally, organizations should ensure that they disclose all their social responsibility actions to the appropriate stakeholders. This is because, the more people notice the positive social actions of an organization, their perception about such organization change, and this boost their images and reputation of the organization before the general public.

Optimizing Transportation Logistics through Enterprise Architecture: A Case Study of Integrated Management Systems

This abstract captures the essence of optimizing transportation logistics through Enterprise Architecture (EA) by presenting an Integrated Management Systems (IMS)-centered case study. Effective logistics management is crucial for enhancing operational effectiveness and attaining competitive advantages in today's rapidly changing business environment. Achieving this optimization, however, requires a comprehensive strategy that harmonizes disparate aspects such as operational processes, data administration, and technological infrastructure. This study demonstrates that Enterprise Architecture has the potential to function as the link between these domains. This study examines the difficulty of dispersed logistics operations and the resulting inefficiencies, cost escalation, and compromised responsiveness. The case study is presented as Integrated Management Systems powered by Enterprise Architecture principles. This integration intends to optimize workflows, encourage cross-functional collaboration, and provide real-time visibility into logistical activities. This investigation demonstrates how a well-designed EA framework can effectively mitigate transportation logistics and supply chain management disparities. By analyzing the results of the case study, this study aims to identify the benefits and challenges of implementing Enterprise Architecture within the realm of transportation logistics. This study explains how EA can improve operational efficiency, resource utilization, lead time, and customer satisfaction. Therefore, the research contributes to a broader comprehension of how Enterprise Architecture can optimally resolve the complexities inherent to contemporary transportation logistics. The potential for increased operational agility and competitiveness in the logistics industry is highlighted by applying EA principles to the context of integrated management systems.

Why do (some) German car manufacturers go electric? The role of dynamic capabilities and cognitive frames

AbstractAfter the internal combustion engine was the dominant technology in the automotive industry for more than a century, a transition to electric cars is now under way. However, not all car manufacturers seem equally determined to move away from fossil fuels. Based on a comparative case study of German automakers, we discuss some underlying factors associated with variation in electrification strategies. Conceptually, we focus on firms' dynamic capabilities—in particular, their ability to sense low‐carbon risks and opportunities in a changing business environment. Building on qualitative interviews, we gauge sensing capabilities through industry executives' cognitive frames. Our analysis reveals striking differences in the way executives perceive the opportunities and risks associated with electric mobility. In particular, firms' dynamic capabilities to shape the low‐carbon transition are tied to their conceptions of consumer preferences and the economics of the transition, their perception of network embeddedness, prior experiences with technological innovation, and leadership.

Big Data Analysis for Strategic Decision Making in Business Information Systems

The use of big data in the context of strategic decision making in business information systems has become the main focus of research in the current digital era. This research aims to analyze the role of big data in facilitating effective strategic decision making in a rapidly changing business environment. The research methods used include a thorough literature survey and comprehensive analysis of case studies of several leading companies that have adopted big data technology in their business information systems. The research results show that big data has a crucial role in improving strategic decision-making capabilities by providing fast access and in-depth analysis of complex and varied data. This allows organizations to identify market trends, customer behavior patterns and new business opportunities in a more timely and accurate manner. In conclusion, the integration of big data in business information systems is an inevitable strategy for organizations that want to remain competitive in this digital era.

The Role of Adhocratic Leadership in Facing the Changing Business Environment

Changes in today's business environment are increasingly complex and cannot be predicted with certainty. Factors such as technological developments, market dynamics, and regulatory changes are challenges that organisations and companies must face. In the face of these rapid changes, adaptive and flexible leadership becomes critical to ensure business success and continuity. This research aims to analyse the role of adhocratic leadership in dealing with the changing business environment. The current research type is qualitative. Data collection techniques include listening and recording important information to conduct data analysis through data reduction, data display, and conclusion drawing. The study results show that adhocratic leadership plays an important role in dealing with rapid and dynamic changes in the business environment. This leadership approach emphasises flexibility, innovation, rapid adaptation, and collaboration to respond to changing market and customer needs. Adhocracy leaders must be risk-takers, make smart use of technology and data, and create an organisational culture that supports innovation and continuous learning.

How performance pressure influences firms’ cross-boundary growth: the moderating effect of managerial discretion

PurposeIn today's complex and rapidly changing business environment, cross-boundary growth is increasingly critical to the survival or even success of organizations. The purpose of this study is to examine the forming mechanism of firm’s cross-boundary growth by integrating the two important antecedent factors of performance pressure and managerial discretion into a united framework and theoretically analyze the direct role of performance pressure on firm’s cross-boundary growth as well as reveal the moderating role of managerial discretion. Also, the authors select listed manufacturing companies in China as samples to empirically test the research hypotheses.Design/methodology/approachThe authors design a multiple regression model to perform empirical analysis by using a panel of 4,002 year-observations in 1,334 listed manufacturing companies between 2013 and 2016. The sample data sources mainly come from the Wind Database, which is mainland China's leading financial database and software services provider. The hypotheses proposed are tested by adopting a panel data set of the listed manufacturing companies of China.FindingsEmpirical results show that performance pressure has a positive effect on the cross-industry growth and cross-domestic regional growth but a negative effect on the cross-international regional growth, and managerial discretion has a different moderating effect. Specifically, capital intensity strengthens the positive effect of performance pressure on cross-industry growth but weakens the negative effect of performance pressure on cross-international regional growth. State ownership enhances the positive effect of performance pressure on cross-domestic regional growth but decreases the negative effect of performance pressure on cross-international regional growth. CEO duality increases the negative impact of performance pressure on cross-international regional growth.Practical implicationsThis study provides several implications for top executives, including how to dialectically consider the double-edged effect of performance pressure on cross-boundary growth of firms, create an appropriate environments of managerial discretion and design the types of cross-boundary growth strategies that top executives can follow in the volatility, uncertainty, complexity and ambiguity era.Originality/valueAlthough the relevant literature highlights the importance of performance pressure, it has not been related to the cross-boundary growth of firms. This paper makes an incremental contribution to the literature on the forming mechanisms of firm’s cross-boundary growth by providing an important perspective of performance pressure to firm growth determinants and taking into account the moderating role of managerial discretion.

Understanding Global Market Development Strategies: A Qualitative Inquiry into Business, Public Administration Strategy Adaptation and International Supply Chain Management in the Globalization Era

This research provides a comprehensive exploration of global market development strategies, business strategy adaptation, and international supply chain management in the globalization era. The study aims to understand the complex interplay of factors shaping contemporary business practices and to derive insights for enhancing competitiveness in international markets. The research adopts a qualitative inquiry approach, synthesizing existing literature and scholarly perspectives to analyze the phenomena under investigation. Through a thorough review of relevant literature, the study identifies key themes and theoretical frameworks, providing a nuanced understanding of global business dynamics. The findings highlight the diverse strategies employed by firms to navigate international markets, adapt to changing business environments, and manage global supply chain networks effectively. Insights gleaned from the research underscore the importance of strategic adaptation, dynamic capabilities, and collaboration in driving business success in the global marketplace. Moreover, the study elucidates the significance of supply chain resilience, agility, and digitalization in mitigating risks and capitalizing on opportunities in an interconnected world. The implications of the research extend to both theoretical and managerial domains, informing evidence-based strategies for sustainable growth and competitiveness in the globalization era.

The Importance of Innovative Leadership in Improving Organisational Readiness for Technology Disruption

The rapid development of technology has led to disruption in various industries and sectors. Technological disruption refers to a fundamental change in the way businesses and organisations operate due to the adoption of new technologies that change traditional business models. This research aims to illustrate the importance of innovative leadership in improving organisational readiness in the face of technological disruption. The current research type is qualitative. Data collection techniques include listening and recording important information to conduct data analysis through data reduction, data display, and conclusion drawing. The study results show that innovative leadership plays a very important role in improving organisational readiness to face technological disruption. Technological disruption has fundamentally changed the business landscape, and organisations need to adopt innovative approaches to remain relevant, competitive and sustainable in this dynamic environment. Innovative leadership helps organisations understand the impact of technology, deal with the changing business environment, and improve competitiveness by creating competitive advantage through innovation.

Leveraging Supply Chain Leadership for Dynamic Capabilities and Organisational Resilience

Organisational resilience has been identified as one of the critical factors in developing sustainable supply chains. To date, extant research discusses the role of dynamic capabilities in enhancing organisational resilience, particularly in developing and reconfiguring internal and external resources to address the changing business environment. Unfortunately, little attention has been paid to exploring the impact of buying firms’ leadership (or supply chain leadership) on the existing relationships between dynamic capabilities and organisational resilience. As a firm’s performance has a significant impact on its entire supply network (in both upstream and downstream orientations), the responsibility to improve organisational resilience could be extended to the buying or focal firms, particularly during unprecedented times such as the pandemic. This study aims to propose a conceptual framework for examining the impact of dynamic capabilities and organisational resilience. In general, this study suggests that dynamic capabilities (adaptive, absorptive, and innovative capabilities) have a significant impact on organisational resilience. Furthermore, this study proposes that supply chain leadership moderates the relationship between dynamic capabilities (adaptive, absorptive, and innovative capabilities) and organisational resilience. It is expected that this study will facilitate discussions on the need to deepen the comprehension of supply chain leadership and its influence on dynamic capabilities and organisational resilience. The study contributes to the existing literature by addressing the gaps between supply chain leadership, dynamic capabilities, and organisational resilience domains.

A Study of Management Accounting Practices and Financial Performance in Industrial Companies in Jordan

With advancement in technology and changing business environment, it is important to assess the effect of adoption of management accounting practices on the financial performance in companies. Hence, the purpose of the study was to assess the effect of Management Accounting Practices (MAPs) on the financial performance in industrial companies of Jordan. The study considered MAPs (costing practices, budgeting practices, decision-making practices, performance evaluation practices and strategic analysis) as the independent variables and financial performance (Return on Assets - ROA) as the dependent variable. Data collection was done through primary sources where 142 responses were collected using structured questionnaire. Multiple regression test was used to test the hypothesis which found that there is a statistically significant effect of adoption of management accounting practices on the financial performance in Jordanian industrial companies.

Leading digital business model transformation in the K-pop industry: the case of SM Entertainment

ABSTRACT Despite the role of digital technologies in increasing the popularity of K-pop, little is known about how K-pop entertainment companies digitally transform their business models and the driving forces that shape this transformation. In this study, we present an in-depth case study of a pioneering K-pop entertainment company, SM Entertainment, whose founder’s charismatic leadership and organizational capabilities contribute to the digital transformation of its business model through market-pioneering strategies and strategic learning derived from continuous interactions with changing business environments. This transition to the digital business model ultimately leads to sustainable competitive advantages in the marketplace. The important theoretical and practical implications of the findings are discussed.