Changing Business Environment Research Articles

Process innovation capability in less-structured business processes: a systematic literature review

PurposeBuilding process innovation capability (PIC) is becoming increasingly important to keep pace with changing business environments and emerging technological opportunities. However, the literature on process innovation capability (PIC) is still very broad and does not consistently reflect today's reality that is becoming increasingly complicated and knowledge-intensive, leading to more organizational needs for supporting less-structured business processes (LSBP).Design/methodology/approachBased on a systematic literature review (SLR), the authors provide evidence for this under-investigated subject by consolidating organizational capabilities for managing PIC in LSBP. The authors screened 1,083 and identified only 26 peer-reviewed articles that simultaneously encompass process innovation and LSBP.FindingsThe authors explain which LSBP types are typically addressed, and in which sectors. The authors categorize research avenues, best practices and a framework that links PIC to performance outcomes by also considering business environments. Three theories (i.e. resource-based view, dynamic capabilities and sociotechnical theory) help to underpin the six empirically observed capabilities along three pillars (i.e. people, process and technology).Research limitations/implicationsBesides a research agenda, the authors offer a conceptual framework for PIC in LSBP as a reference to guide scholars and practitioners.Practical implicationsThe authors offer best practices, as derived from the literature.Originality/valueThis is the first SLR for PIC in LSBP, consolidating and categorizing the PIC-LSBP characteristics. Due to few studies on the subject, this work contributes to a deeper understanding of the PICs needed for LSBP to obtain the desired performance outcomes.

Dynamic Analysis and Fabrication of Single Screw Conveyor Machine

The design and development of machine tools play a vital role in the current economic growth. It facilitates the reduction of manufacturing cost coping with a quickly changing business environment. During the design of the machine tool, the dynamic characteristics need to be calibrated for avoiding uncertainties. This paper investigates the design, dynamic characteristics, and development of a single screw conveyor machine which is used to blend waste plastic material with catalysts. The conveyor machine model is created based on the idea developed from filament extruder machine with Pro-E solid modelling software. Its multibody dynamic analysis was carried out for the selected operational requirements in the ADAMS View. It shows that when the conveyor screw operated above the velocity of 42 m/s, the deformation will occur at a maximum value of 4.23 mm. The rigid body dynamic was carried out in ANSYS to solve the performance forecasting problems at their design stage. The dynamic analysis results were suggested to improve the conveying machine and driving mechanisms design parameters.

An Inclusive Leadership Framework to Foster Employee Creativity in the Healthcare Sector: The Role of Psychological Safety and Polychronicity.

Creativity at the level of employees is of utmost importance for every sector of an economy, with no exception to a healthcare system. The reason why employee creativity is important lies in the fact that employees have profound knowledge of their job and thus can serve as a source of meaningful innovation in an organization. Research shows that employee creativity is largely dependent on leadership. Corporate leaders significantly influence subordinates’ behavior. However, with the economic development, globalization, and changing business environment, a traditional authoritative leadership style can no longer be effective in understanding employees’ psychological needs to foster their creative behavior. In this regard, the role of inclusive leadership as an effective organizational management strategy was recently discussed in literature at different levels. It was also stated that an inclusive leader could foster employee creativity. However, such relationships in healthcare systems of developing economies have largely remained under-explored previously. We explored employee creativity in a healthcare context of a developing economy in an inclusive leadership framework to bridge such knowledge gaps. We also investigated the mediating roles of psychological safety and polychronicity in the above-stated relationship. We collected the data from hospital employees through a questionnaire (paper–pencil method). A hypothetical model was developed, which was tested through structural equation modeling in AMOS. Based upon the statistical outcomes, we found that an inclusive leadership style in a hospital can significantly foster employee creativity, whereas psychological safety and polychronicity mediate this relationship. This study offers different theoretical and practical insights, especially to a healthcare system. An important finding was that an inclusive leader can motivate the followers to be more creative. This finding is significant for a hospital because creative employees provide a hospital with a solid competitive base.

Managerial ties: How much do they matter for organizational agility?

In a constantly changing business environment, firms are becoming increasingly dependent on organizational agility for survival and success. Although existing studies have recognized the importance of political and business ties in responding to market changes, few have examined how these ties affect organizational agility nor compared their relative effectiveness in shaping organizational agility. Drawing on social exchange theory, this study examines the comparative impacts of political and business ties on organizational agility and the contingent roles of competition intensity and legal enforceability. Using two-wave survey data collected from three top executives in 132 Chinese firms, we find business ties have a stronger positive effect on organizational agility than political ties. Competition intensity strengthens the positive impact of political ties but weakens the positive impact of business ties on organizational agility, which reduces the impact difference of political and business ties. Legal enforceability strengthens the positive impact of political ties but does not significantly influence the positive impact of business ties, which mitigates the impact difference of political and business ties. Accordingly, our findings provide new insights for the strategic utilization of political and business ties to achieve organizational agility in emerging economies.

Relevance of agile change management in a dynamic business environment

Conventional change management approaches are increasingly reaching their limits in a business environment characterised by volatility, dynamics, and complexity. In other contexts, attempts are often made to counter these aspects with agile approaches. The extent to which this also makes sense in the field of change management has not been frequently investigated to date. The aim of this paper is therefore to examine the extent to which agile change management contributes to the successful handling of changes in a dynamic business environment. For this purpose, 30 interviews were conducted with change management and organisational development experts from various small, medium-sized, and large companies in Germany. The data obtained was primarily analysed qualitatively, using a structuring content analysis according to Mayring (2015). The results of the research show that change management can strongly benefit from agility. In particular, this is the case with respect to self-organisation, iteration, and experimentation. Agile change management makes sense even in more conventional, hierarchical organisations. However, there are indeed organisation-, project- or context-specific characteristics that speak particularly in favour of the use of agile change management approaches or make more conventional change management approaches seem more reasonable. Often, it is even advisable to use a clever mixture of both.

Facilitating the Malaysian Manufacturing Sector in Readiness for Industry 4.0

The manufacturing sector of Malaysia is an essential part of its economic system. Malaysia holds a remarkable position in the global market through the exports of manufacturing products. However, this sector faces challenges such as organizations’ capability to innovate due to rapid technological and business environment changes in line with Industry 4.0. These challenges may prevent manufacturing firms from embracing Industry 4.0 and thrive in their businesses. Therefore, this research aims to identify the role of organizational practices such as Knowledge Oriented Leadership, Electronic Human Resource Management, and Decentralized Organization Structure in support of Organization Innovation to prepare manufacturing firms for Industry 4.0. A quantitative method was applied to 218 samples collected from Malaysian manufacturing firms. The results of this research are interesting for keen researchers and helpful for decision-makers and practitioners to successfully pave the way for Industry 4.0 implementation in manufacturing firms by developing innovation capabilities.

A LITERATURE REVIEW ON DIMENSIONS OF BRAND EQUITY IN THE INSURANCE INDUSTRY OF SAUDI ARABIA

Branding is generally regarded as a unique approach for brand equity that enhances the corporate reputation of stakeholders. Insurance firms acknowledge and handle goods in a changing business environment as important assets. Brand is a system with multi-dimensional principles that satisfy consumers’ wants, expectations and needs, including practical and emotional elements. One of the branding goals is to distinguish the brand from its unique and valued characteristics. If the brand is an important element in every marketing effort, it must be recognized that its equity definition is appropriate. Insurance companies attempt to maintain brand resources and other methods by means of suitable brand distinctiveness. This paper attempts to describe the aspects of specialized literature. Since Saudi insurance is such a recent phenomenon, it has not undergone a critical analysis of whether it fulfils the requirements for takaful insurance or not.

무역원활화를 위한 전자무역서비스 개선방안

As the world trade environment and business environment change, the importance of trade facilitation is being emphasized. In this regard, Korea has also been striving to facilitate trade through the establishment of e-trade services. However, the e-trade service for trade facilitation still does not fully perform its functions due to overlapping roles, inadequacy of laws and systems, and lack of international standards. Therefore, the improvement plan of e-trade service for trade facilitation is considered as follows. First, it is necessary to establish a prompt and efficient operating system by unifying the entities that promote trade facilitation. Second, an international single-window system must be established through the advancement of UNI-PASS. Third, it is necessary to establish an integrated support service by reconfiguring the role of uTradeHub. Through this, it is necessary to enhance the service utilization of trading companies for trade facilitation.

Implications of an increasingly dynamic business environment on change management requirements in german organisations

Under today's circumstances, conventional change management approaches, which are mostly based on stability and controllability, seem to be reaching their limits. Even the near future is quite unpredictable, the dynamics in the business environment are high and change cycles are becoming shorter. Against this background, the paper aims to define the requirements for change management in a dynamic business environment. For this purpose, an online survey with employees in Germany was conducted. 321 valid data sets of respondents from mainly hierarchical and agile organisations in various industries were obtained. The gained data was primarily evaluated quantitatively with the methods of frequency and correlation analysis to test the previously-formulated hypotheses. The results show that employees perceive that change management itself needs to evolve fundamentally to continue to have a significant impact. According to the research, successful handling of organisational change in a dynamic business environment primarily requires a high degree of transparency and open communication, an appropriate culture and mindset as well as holistic collaboration. Among other factors, high speed and flexibility in the change management approach also play an important role. In this context, experimentation and step-by-step adaptation are furthermore crucial.

CONCEPTUAL APPROACHES TO EVALUATION OF THE INNOVATIVE POTENTIAL OF THE ENTERPRISE

The complexity of the innovative potential of the enterprise as a subject of research and its versatility determine the large number of approaches to its evaluation. Therefore, an important area of ​​research is to develop a comprehensive approach to quickly and fully diagnose the state of the existing innovative potential of the enterprise. Assessment of the innovative potential of the enterprise is a set of analytical procedures to determine its quantitative and qualitative characteristics, which expresses a certain attitude to this object of the one who evaluates in accordance with the chosen system of relations. The changing and dynamic business environment requires active innovation, which ensures the overall development of the enterprise, as well as improving or maintaining the necessary level of its competitiveness. At the same time, conducting innovative activities is accompanied by significant risks and threats. Assessment and management of the innovative potential of the enterprise is designed to reduce the level of risks and possible consequences of their occurrence. These processes consist of a number of stages, one of which is the adoption of management decisions on the selection and implementation of a particular innovation strategy. Management decisions are impossible without reliable and complete information about the object of management. In turn, the definition of enterprise development strategy depends on the main characteristics of the existing innovation potential of the enterprise, which is a necessary condition for innovation and acts as a decisive factor in increasing the competitiveness of the enterprise. Therefore, in order to objectively assess the current situation, find competitive advantages and increase the effectiveness of enterprise management in general, it is necessary to analyze the existing innovation potential and identify reserves of efficiency. The subject of research and analysis is the innovative potential of the enterprise and its components. The main purpose of the article is to formulate and substantiate conceptual approaches to assessing the innovative potential of the enterprise.

How Farmers Conceive and Cope with Megatrends: The Case of Finnish Dairy Farmers

Megatrends (urbanization, digitalization, globalization, climate change, etc.) are mainstream developments that affect most economic activities. These megatrends have varying incidences and impacts on individual entrepreneurs and enterprises, also in farming sector. A farmer can either ignore or try to adapt to or benefit from megatrends. This reaction depends on many things: individuals’ futures orientation, management practices, business strategy, sunk costs, the life cycle and type of business, for example. The study explores the association between eight common megatrends and business strategies among a sample of Finnish dairy producers. The analysis is based on survey data from the year 2019 (n = 135) collected among a major Finnish dairy industry co-operative’s contract producers. The respondents evaluated the expected impact of the megatrends on their own business within the next 10 years with 5-point Likert-type scale (−2 … +2). K-means cluster analysis was utilized to uncover a few basic settings in the association between megatrends and farmers behaviours. After trying out several numbers of clusters, a distinctive three cluster solution was found. Additionally, cluster member profiles were framed with farmers’ Likert -scale responses. The analysis indicates that dairy farmers differ in their observation of megatrends. The results confirm that some of the farmers more or less ignore the common megatrends, whereas some other farmers adapt to or benefit from the common megatrends. Supporting farmers’ futures consciousness will strengthen their capacities of coping in the changing business environment.

FEATURES OF THE USE OF DIGITAL MARKETING IN THE BANKING SECTOR

In the 21st century, the business has become a digital technology-driven system that can hugely impact consumer behavior and labor productivity. The use of the Internet in the new information age is a visible example of globalization. Electronic platforms offer continuous information dissemination, interactive communication with users, and digital systems for conducting transactions in the modern economy. In the context of the digital revolution, along with the changes made to improve services, the electronic transformation of banks has also become necessary, as modern technologies can increase the productivity, permanence, and transparency of the use of information. The paper identifies the key features of digital marketing that make companies successful in the banking sector. The use of digital channels in the financial industry is growing day by day and, regardless of the level of development of countries, is characterized by a growing trend everywhere. The article analyzes digital banking marketing strategies and opportunities that are indispensable conditions for attracting customers in a changing business environment. The paper highlights the role of social media in shaping individual messaging in the banking industry and creating a product tailored to the target audience. Based on secondary data analysis, the focus is on the role of mobile marketing in digital banking marketing. It is noted that mobile marketing simplifies the implementation of banking operations for customers. The article highlights the importance of switching to digital services in the banking industry during the COVID-19 pandemic, indicators of digital channel usage, customer engagement in mobile banking, and forecasts for the future. It has been shown that in the context of the COVID-19 pandemic, the key issue for banks is to identify consumer confidence-building indicators. The paper presents the latest statistics that have reflected on the underlying characteristics of consumer behavior from the beginning of the COVID-19 pandemic to the present day. After analyzing the secondary data, the article found that the active use of smartphones has increased the importance of online advertising, which will continue in the future. With this in mind, the key recommendations that financial companies need to follow to succeed and optimize their budgets are precisely in the direction of popular digital platforms. One of the most important issues of the paper is the increased consumption of cryptocurrency in the world, which is due to its sharp increase in popularity among users. Based on the above, the article shows that if technology companies expand the use of digital currency, the forms of physical services of banks will become obsolete, and the only way to popularize banking products will remain digital marketing. Keywords: Digital Marketing, Banking Marketing, Mobile Banking, COVID-19 Pandemic.

International entrepreneurship by family firms post Covid

The Covid pandemic has brought about major changes in the global business environment in which family firms operate. As a result, researchers studying these firms have a golden opportunity to leverage these changes as they study fundamental questions related to the changing roles of institutions, the social role of technology, the contribution and changing nature of ownership, and the social role of the firm. These changes also are likely to alter family firms’ culture and identity. Examining these issues will enrich our theory building while providing more evidence-based guidance on how to attain and sustain resilience as family firms pursue international entrepreneurship.

Model to Program and Blockchain Approaches for Business Processes and Workflows in Finance

Business process modeling and verification have become an essential way to control and assure organizational evolution. We overview the opportunities for the application of blockchain in Business Process Management and Modeling in Finance and we focus on in-depth analysis of claim process in insurance as a use case. We investigate the utilization of blockchain technology for model checking of Workflow, Business Processes to ensure consistency, integrity, and security in a dynamically changing business environment. We create a UML profile for the blockchain, then we combine it with a UML activity diagram followed by a verification using Petri nets to guarantee a distributed computing system and scalable with mutable data. Our paper creates a unified picture of the approaches towards business processes modeling used in the financial industry organized around the set of premises intending to develop a future research agenda for blockchain business process modeling, specifically for the financial industry domain.

Global talent management by multinational enterprises post‐COVID‐19: The role of enterprise social networking and senior leadership

AbstractMultinational enterprises' (MNEs') workforce is made up of people from diverse backgrounds and different locations around the globe. The cross‐border transfer of knowledge, skills, and best practices among MNE employees is important to maintain global standards and competitiveness. In the post‐COVID‐19 period, there is a greater need to exchange knowledge in the changing business environment. The purpose of this study is to examine the issues related to MNEs' global talent management, post‐COVID‐19. The study investigates the use of enterprise social networking applications for better knowledge exchange and tries to understand the moderating role of senior leadership team support in facilitating the usage of enterprise social networks for cross‐border collaboration and talent management. After reviewing the literature and relevant theories, we developed a conceptual model, which is then validated using the SEM technique with 347 respondents from 12 MNEs. The study reveals the importance of using enterprise social networks for cross‐border knowledge exchange in the post‐COVID‐19 period.

Цифровая трансформация функций контроллинга

The highly turbulent external environment of an organization and the multi-level internal environment necessitate fundamentally new conceptual approaches to the organization management. Contemporary postindustrial period specifies digital business transformation as a new vector of the companies’ economic development. In this regard, the author considers the controlling system that has received worldwide recognition to be an effective one. The paper briefly characterizes the main trends in the global economy, changes in business environment, and management issues in the activity of an organization. The analysis of the functioning and development of the general management and digital technology system allowed distinguishing a number of interrelated components of the contemporary management paradigm. The author specifies the directions of theoretical studies in the field of controlling: clarification of the conceptual apparatus, the formation of the principles of constructing a system, functional features identification, the development of up-dated tools, and the expansion of spheres of influence on various aspects of the company’s activity. The paper presents the author’s interpretation of the “Controlling” category, determines the boundaries of the tasks of the controlling system, and highlights its main functions. The paper presents the assessment of the state and dynamics of digital transformations of Russian organizations. The author describes the main directions of the controlling system digitalization in the company and considers the impact of using the key digital technologies on the management efficiency. The paper defines the most promising Industry 4.0 technologies, the use of which leads to the controlling system transformations and qualitative changes in its functionality. The theoretical and practical understanding of digital opportunities in the sphere of management and the structuring of controlling functions allowed formulating the essence of transformation of each of them. The author proposes the development of the controlling system based on digitalization, which ensures the stable functioning of an enterprise and the systemic solution of problems arising as a result of interaction between the enterprise and the internal and external environment.

The Influence of Psychological Contracts and Burnout on IT Professionals’ Turnover and Turnaway Intention

Retaining valuable information technology (IT) professionals is still an issue for organizations and the IT profession. The changing business environment and the increased demand for IT professionals to innovate using new technologies and processes puts pressure on IT turnover intention researchers to adapt and innovate as well. Psychological contract and burnout theories are used to explore precursors to turnover and turnaway intention. We collected data from 247 experienced IT professionals across different organizations. We found that (1) burnout is a formative construct with three reflective dimensions: exhaustion, cynicism, and professional efficacy; (2) burnout impacts IT professionals’ turnaway intention more than turnover intention; and (3) burnout is positively related to psychological contract violation. Post-hoc analysis suggests that for non-married IT professionals, psychological contract breach influences psychological contract violation, but this is not the case for married IT professionals. Implications for research and practice are discussed.

М. Б. Нагара ТЕОРЕТИЧНІ АСПЕКТИ БІЗНЕС-МОДЕЛІ: ГЕНЕЗА, СКЛАДОВІ, ФАКТОРИ ВПЛИВУ

The purpose of the article is to study the theoretical and applied aspects of business models. Methodology of research. The achievement of the purpose set in the article is carried out with the help of the following research methods: content analysis, dialectical approach, induction and deduction, logical approach, graphic method. Findings. The views of scientists regarding the formation of the business models concept are analyzed. The contribution of scientists to the meaningful interpretation of the “business model” concept is outlined. It is determined that the key aspect of the business model is the detailed architecture of the enterprise’s activities with the aim of obtaining profit, gaining and maintaining a high competitive status. The “business model” concept is based on the criteria of complexity, situationality, evolution and practical implementation. The factors determining the architecture of the business model are characterized. The specifics of the interrelated component business models are substantiated. The requirements that a complex business model of a modern enterprise must meet are outlined. The business model should be based on material (financial, technical, informational) resources controlled by the enterprise and key competencies embodied in human resources. The business model should reflect the enterprise’s place in the consumer value chain. The business model must take into account the chaotic and changing business environment. The business model must be clear for practical implementation. It is outlined that the business modeling tools are systematically developing and becoming more complicated due to the acceleration of changes in the business environment. Practical value. Systematization of knowledge in the field of the business modeling will improve management efficiency and enterprise flexibility. The need for further research in the field of business models and their dynamic components is emphasized. It is justified that business models provide the definition, substantiation and implementation of strategic business goals on the basis of optimal relevant schemes.

A Value-in-Use-Oriented Sales Approach for Digital Services of Technology Companies

Today, technology companies are paying increased attention to the provision of digital services, and business customers’ actual usage process has become a pivotal concern. Thus, technology companies are turning their focus to customer value created during usage processes, referred to as “value-in-use”. This implies that the entire organization and ist ecosystem must adapt accordingly. This qualitative study identifies and classifies concrete fields of action for the sales team structure, the sales role itself, the selling process, and the customer-supplier relationship. The results shed light on a value-in-use-oriented sales approach for digital services that is currently implemented in the technology industry. The theoretical contributions include a holistic perspective on a changing business environment and its impact on the sales organization as well as an explicit focus on value-in-use. Managerial implications include recommendations to adjust recruitment and training activities based on developments in the team structure and a salesperson’s individual skills as well as to strengthen and extend the customer-supplier relationship.

CHANGES IN THE INTERNATIONAL BUSINESS ENVIRONMENT AND INNOVATION AND INVESTMENT BEHAVIOR OF COMPANIES IN A PANDEMIC CRISIS

Introduction. The formation of the international business environment is influenced by crises, including the current pandemic crisis in the economy and society, and the way out of this (the current "new normality") should be sought in the application of innovations and funding opportunities. Innovations determine the opportunities for further development of both business entities and the world community as a whole. Goal. Study of innovation and investment behavior of companies in the current state of the international business environment, which manifests itself in a pandemic as economic downturn and destruction of market relations due to extreme instability of commodity, resource, money markets and structural deformation of relations between them. at the national and supranational levels. Methodology. The research was conducted through analysis and synthesis to study changes in the international business environment and innovation and investment behavior of companies in a pandemic crisis; tabular methods for visual presentation of the material. Results. It is shown that the international business environment has changed the pandemic crisis, comparable to the global financial and economic crisis of 2008. They differ primarily in the cause – uneconomic in the first case and economic in the second; combines – non-cyclical nature of origin and the systemic nature of destructive changes in the economy and society. It was found that the challenges and problems of the pandemic crisis have forced organizations to rethink approaches to doing business and the rapid introduction of innovations such as artificial intelligence, blockchain, Internet of Things, process automation tools. The need for digital transformation of business is emphasized, which is an innovative strategy incorporated into the overall long-term development plan of the company, which determines the content of corporate, functional, competitive strategies. It is proved that the preconditions for the spread of digitalization in the activities of other entities are created through the digital strategy implemented by the initiating company – through its relationships with customers, suppliers, competitors. The scenario of recovery of the world economy according to UNCTAD is considered. It was found that the most difficult thing for the transformation of business in a pandemic crisis is to raise funds for innovation.companies suffer heavy losses, which significantly limits investment.