Changing Business Environment Research Articles

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.

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.

ORGANIZATIONAL INITIATIVES: A STRATEGY FOR ORGANIZATIONAL EFFECTIVENESS

In todays rapidly changing business environment, organizations need to be adaptable and responsive to change. They should have systems in place to monitor external trends, identify potential risks and opportunities and effectively manage change initiatives. The organizations in the present business landscape are required to establish a very supportive environment where workers may perform their tasks efficiently without being vulnerable to any outside forces that might prevent them from achieving their own or the organizations goals. As a result, every organisation must focus on organisational performance, which encompasses client and customer happiness as well as work-life balance. Organisational innovation has a beneficial effect on organisational success because of factors including global competitiveness, rapid technological development, and staff understanding of how to adapt into the new way of doing things. Keeping this in view, a survey was conducted from the employees of Life Insurance Industry to empirically explore the organizational effectiveness in Andhra Pradesh. KEY WORDS: Supportive Environment, Effectiveness, Performance, Explore, Competition

INNOVATIONS OF BUSINESS PLANNING IN THE MARKET ECONOMIC SYSTEM

The purpose of this article is to identify the latest trends in business planning. In order to achieve the defined goal, the research envisages solving the following tasks: providing a description of the traditional, classical approach to business planning; definition of modern trends in entrepreneurial activity and highlighting ways of adapting the business planning system to new challenges. business planning in the context of a traditional approach loses its effectiveness in the face of a changing business environment and new social trends. Transnational companies, companies with a complex subordinate structure should take into account the existence of a relationship between the processes of business planning and the coordination of the activities of divisions, including not only of a hierarchical nature, but also in the horizontal plane. Interaction between units outside the hierarchy takes place according to the "facilitation" pattern. Digitization has added a new DAM digital asset management strategy to the strategic planning of global enterprises, which allows you to avoid pitfalls in the joint use of a digital asset by structural divisions of the enterprise. Each company that chooses a DAM strategy for itself within the business plan should evaluate the future benefits according to three vectors: efficiency; avoiding unnecessary expenses; additional income. The traditional approach in business planning is suitable for the implementation of projects in a predictable environment, at the same time, for the launch of startups, where the plan is based on numerous assumptions, for now, discovery-driven planning is best. Prospects for further research on the topic of this article are related to the assessment of qualitative and quantitative parameters of the effectiveness of business planning in Ukraine.

Navigating circular economy: Unleashing the potential of political and supply chain analytics skills among top supply chain executives for environmental orientation, regenerative supply chain practices, and supply chain viability

AbstractIn a changing business environment, firms encounter significant challenges to fulfill sustainable development goals. However, firms can make substantial progress by adopting regenerative approaches grounded in circular economy principles, enabling them to effectively pursue sustainable development objectives such as responsible production and consumption (goal 12), climate action (goal 13), and the preservation of life on land (goal 15). However, there is a scarcity of research studies that offer guidance to top supply chain (SC) executives, aiming to enhance their environmental focus and enhance the SC viability through regenerative SC practices. This study employed the philosophical perspective of the natural resource‐based view. Advancing the SC literature, it tested a theoretical model to investigate the relationship between the political skills and SC analytics skills of top SC executives and the environmental orientation of SCs. Additionally, it examined the direct and indirect (via regenerative SC) relationships between a firm's environmental orientation and SC viability. This study also tested the moderating role of a firm's artificial intelligence‐driven big data analytics culture in these relationships. Applying a mixed‐methods approach, the study derived a theoretical model to link the aforementioned constructs. Apart from a qualitative investigation, data were also collected through a questionnaire‐based survey from 375 samples. The results indicated that the relationship between the political skills and SC analytics skills of top SC executives toward the environmental orientation of SCs is significant. Furthermore, they indicated that a firm's environmental orientation is positively related to a regenerative SC, which in turn enhances SC viability. The findings also provided evidence that a firm's AI‐driven big data analytics culture enhances the strength of these relationships. The current study extends the knowledge base by integrating the two unique concepts of digitalization and circular economy.

동남권 비제조 중소기업의 경영주역량, 기술혁신역량, 사업화역량 및 경영성과 간의 구조관계 연구

The purpose of this study is to confirm the effect of managerial competency and technological innovation capability of non-manufacturing SMEs located in Busan, Ulsan, and Gyeongnam on commercialization capability, financial and non-financial performance. The technology credit information of 344 target non-manufacturing SMEs was used and the structural relationship was analyzed. As a result of the analysis, it was found that management capability had a positive effect on business capability, technology innovation capability had a positive effect on financial performance, and commercialization capability had a positive effect on both of financial and non-financial performances. In addition, business capability was analyzed as having a mediating effect in the influence of managerial competency on both of financial and non-financial performances. Considering the above analysis results, in order to improve the financial and non-financial performances of non-manufacturing SMEs in a situation where the market economy is declining, business capabilities are required as the ability that discovers new business opportunities and construct competitive business models. In order to have these commercialization capabilities, it is judged that CEO's management capabilities are required for quickly responding to the rapid changes of business environment.

Activation triggers: reconceptualization and review

Purpose- Businesses depend more on knowledge than other factors. Many academics have described the idea of absorptive capacity as a skill for handling outside knowledge. Since organizational phenomenon is a complex , the issue of absorptive capacity as a strategic and dynamic capability still merits further research consideration. Previous research shows that some of the variables are beyond the firm's control and moderate the effect of knowledge source and experience on absorptive capacity. The intensity of the triggers may have an impact on the firm's investment in absorptive capacity capability. The purpose of this study is to review and identify endogenous and exogenous contingencies that function as activation triggers on absorptive capacity based on the previous literature. Methodology- The theoretical model, hypothesis, and measurement indicators for the study's variables are described in this paper. Findings- The study of previous research shows that learning organization structure, business environment, organizational leadership, learning culture, management review, and competitive strategy play roles as moderator activation triggers in this study. According to the findings, businesses face complex and unpredictable business environment changes, as well as significant knowledge gaps. Decentralized and dynamic structures with participation in decision-making have a moderating effect on the capacity to absorb knowledge and make it easier for businesses to absorb new ideas. The results show that organizational culture fosters the development of fresh perspectives and encourages the integration of external knowledge to maximize the benefits of complementary knowledge sources. Also, the competitive strategy defines the scope and context of perception and learning. Other activation triggers that require more investigation include information technology, stakeholders, professional conduct, and research and development units. Conclusion- Managers can explore a variety of strategic alternatives and forge competitive advantages for their companies by using activation triggers as a group of variables to upgrade existing talents and develop new capabilities of absorptive capacity. Keywords: Absorptive capacity, activation triggers, endogenous and exogenous contingencies, knowledge. JEL Codes: D83, L1, O32

A Critical Analysis of Risk Auditing: An Auditor's Approach

analyze risk auditing, focusing on the auditor's approach, to uncover complexities and challenges inherent in contemporary auditing practices. The study synthesizes findings from a literature review, discussing implications for auditors, organizations, and future research. The multifaceted role of auditors in risk auditing involves identifying, assessing, and managing risks across financial and operational domains, ensuring organizational objectives and assets' safeguarding. Auditors must possess diverse skills, expertise, and judgment to navigate subjective risk assessment, particularly in evaluating emerging risks and complex financial instruments. Moreover, auditors must adopt a proactive approach to risk management, anticipating potential risks and providing timely recommendations. However, challenges such as the lack of standardized risk assessment practices, the rapid pace of business environment changes, and integrating emerging technologies into risk auditing persist. These challenges underscore the need for ongoing innovation and improvement in risk auditing practices. Empirical findings suggest a positive association between risk disclosures' quality and firm performance, emphasizing governance mechanisms' importance in risk management. By addressing challenges and collaborating with stakeholders, auditors can enhance risk management practices' effectiveness, safeguarding organizational objectives and assets in dynamic business environments.

Lean Supply Chain Practices and the Performance of Kassmatt Supermarkets Limited

Purpose: The purpose of this study was to assess the influence of lean supply chain practices on the performance of Kassmatt Supermarket Limited.
 Methodology: A descriptive research design was used for the investigation. The study targeted 180 employees from Kassmatt supermarket limited. The sample size of the study was 124 respondents. The researcher utilized self-administered questionnaires to collect primary data with the aid of the drop and pick method. The pilot study utilized 10 percent of the actual sample size, which was equal to 12 participants. The data obtained from the questionnaires was analyzed using the statistical package for social sciences (SPSS) version 28. The study employed percentages, frequencies, means and standard deviations to analyze descriptive research. Inferential analysis was also done. Tables were used to present findings. Finally, multiple regression model was fitted into the study.
 Results: The findings revealed a positive significant relationship between lean supply chain practices in the elements of demand management, process standardization, lean customer practice, lean transport [predictor variables] and performance of Kassmatt Supermarkets Ltd. The study concluded that Kassmatt had implemented the aforementioned lean supply chain practices with the aim of improving its firm performance.
 Unique Contribution to Theory, Practice and Policy: The study enhances our understanding of lean supply chain methods and company performance. The study validated and extended supply chain management and performance theories by evaluating lean approaches in retail. The study's finding of additional variables that may affect lean practices and performance led to new suggestions. The study informed managers and practitioners about lean supply chain benefits. The study helped Kassmatt Supermarkets Limited and other merchants improve their supply chain management and operations. Supply chain management innovation and development may help organizations stay competitive in the rapidly changing business environment, according to the paper. The study informed policymakers and regulators on how lean supply chain methods may affect retail sector efficiency. Lean methods improve consumer satisfaction, waste reduction, and efficiency, which can inform retail supply chain excellence policies. The research also stressed the need of regulations encouraging industry-wide cooperation and knowledge sharing, which can increase innovation and efficiency.