Operating Performance Of Companies Research Articles

Capital Structure and Firm Performance: Evidence from Turkish Manufacturing Firms

One of a company's most crucial financial management decisions is its capital structure, which, when adopted correctly and successfully, can almost ensure its objectives are met. Capital structure affects the cost of capital and is important in enhancing a company's operational performance. The capital structure decision is a cornerstone of corporate financial management, influencing both short-term performance and long-term viability. To find the best debt-to-equity ratio for sustainable growth and shareholder value, businesses must carefully consider their industry dynamics, business climate, and financial objectives. Given the importance of this issue, this study's main goal is to look into how capital structure decisions affect the financial performance of Turkish firms in the food, textile, and fabricated metal subsectors between 2011 and 2020. In this study, short-term liability (STL) and long-term liability (LTL) are used as capital structure measures, return on Assets and return on equity are used as firm performance measures, and sales growth and company size are considered control variables. The findings of this study indicate a negative association between debt and the operating performance of these companies in all three sectors. This implies that companies in the aforementioned industries will have to forfeit some of their company's worth if they raise the amount of debt in their capital mix.

Case Study of the Potential of Indonesian Series C Technology Startup Companies Aplikasi Supers in Becoming a Profitable Company while Maintaining Growth Company Operational Performance

This research aims to find out how the company's growth and the ability of the Aplikasi Super company to survive without funding from investors can be fulfilled and produce value and useful solutions for the Aplikasi Super in the future. The analysis was carried out using the case study method which emphasizes one case on the Aplikasi Super which will be reviewed in this study. The results of this study indicate that the Aplikasi Super currently applies an equity investment and stock dilution funding system. The aim of the Aplikasi Super to develop as an independent company is realized by planning new strategies and concepts so as to create potential that can be developed so that it becomes a positive impact, especially for Aplikasi Super funding. From 2021-2022 the Aplikasi Super is not in a profitable condition, with an ROA of -1.15, this means that the company's net profit is lower than zero or that the company's losses exceed the total value of its assets, but this assessment cannot be concluded absolutely from one just a factor, looking at it from a Aplikasi Super perspective that must maintain growth and profitability while making conditions more difficult to control so this can happen. The concept or strategy developed by Aplikasi Supers in this case can be seen from the company evaluating the gross margin, namely the difference between revenue and production costs, as the main indicator of company profits. Super Apps also takes steps to improve operational efficiency by using technology

Implementation of Supply Chain Management and Strategic Processes in Total Quality Management to Improve Operational Performance

Purpose: This research aims to empirically determine how much influence supply chain management, strategic process, and total quality management have on the company's operational performance, both partially and simultaneously. Methodology/Approach: The study involved eight manufacturing companies in Bandung and focused on 104 operational employees. It used descriptive and verification analysis with a path analysis approach, and data were collected through questionnaires via purposive sampling and the Slovin formula. Findings: The results show that 1) Supply Chain Management (SCM) and Strategic Processes (SP) positively impact total quality management and operational performance, 2) Total Quality Management (TQM) negatively affects operational performance, and 3) supply chain management has the greatest influence on both. Research Limitation/Implication: Future research should expand the sample size or include companies from different regions and industries to improve external validity. Originality/Value of paper: This study emphasises the importance of supply chain management, strategic processes, and TQM in operational performance, with supply chain management being the most crucial factor for quality management and improved performance.

Analisis Implementasi Sistem Informasi Akuntansi Dalam Meningkatkan Kinerja Operasional Perumda Air Minum Mual Nauli

The purpose of this study is to evaluate the contribution of Accounting Information System (AIS) implementation to Operational Performance at Perumda Air Minum Mual Nauli and to understand changes in the company’s condition following the system’s adoption. This research uses a comparative method with a qualitative approach, conducted at Perumda Air Minum Mual Nauli, located on Jalan Adonia Hutagalung No. 01, Sibuluan Raya Village, Pandan District, Central Tapanuli Regency, North Sumatra. Data collection was carried out through direct observation, in-depth interviews with relevant informants, and documentation related to the implementation. The results show that the AIS implementation significantly contributed to improving the company's operational performance, evidenced by timely availability of information, improved information quality, streamlined business processes, more efficient inventory management, and timely deliveries. Following the implementation of the Accounting Information System, Perumda Air Minum Mual Nauli demonstrates operational and efficiency improvements.

Effect of centralized volume-based procurement of drugs on business performance of listed pharmaceutical enterprises

Since March 2018, China has conducted five rounds of negotiations for the inclusion of drugs in the medical insurance system and implemented eight batches of centralized drug procurement. The role of the medical insurance department as a strategic purchaser in the pharmaceutical market has been continuously strengthened, playing a crucial role in controlling the unreasonable growth of medical expenses and reducing the economic burden on patients. The policy of centralized drug procurement, by exchanging quantity for price, can significantly reduce drug prices and lower the profit level of companies. However, being included in the centralized drug procurement catalog can bring a substantial and stable market share to the winning companies. Therefore, the impact of the centralized drug procurement policy on the operational performance of winning companies and how their business decisions should be adjusted remain to be thoroughly explored from both theoretical and empirical perspectives. To assess the impact of the centralized drug procurement policy on the operational performance of companies, this study takes publicly listed pharmaceutical manufacturing companies from 2016 to 2020 as the sample and conducts empirical analysis using methods such as difference in difference (propensity score) matching (PSM-DID). The results showed that the centralized volume-based procurement of drugs policy had a significant negative impact on the business performance of bidding listed pharmaceutical manufacturing companies, indicating that the increase in the sales of bidding drugs could not fully make up for the profit loss caused by the price reduction in the short term. Pharmaceutical manufacturing companies should further adjust their market competition strategies, actively engage in research and development innovation. The government should guide pharmaceutical companies to improve their operational performance while ensuring the quality of drug supply by optimizing the supporting innovative incentive policies in the centralized drug procurement policy.

Determinants of Corporate Indebtedness in Portugal: An Analysis of Financial Behaviour Clusters

Corporate indebtedness is a powerful tool in determining a company’s financial health with impacts on its image and reputation. The main objective of this research is to study the determining factors in corporate indebtedness in Portugal. It also has the secondary objectives of creating clusters of companies’ behaviour in relation to the use of credit and verifying their differences in relation to the characteristics of the companies. It uses a quantitative methodology based on a questionnaire survey of 1957 Portuguese companies. The results of the factor analysis show the formation of six determining factors in corporate indebtedness, namely the negotiating relationship with banks, financing, cycle and indebtedness, company operating performance, guarantees used to obtain bank financing and financing risk analysis as well as secondary forms of bank financing. The application of cluster analysis to the six factors formed led to the classification of companies into three clusters: the resilient financial cluster, the operational excellence cluster and the strategic financial cluster. There are several statistically significant differences in the corporate financing factors in relation to the clusters to which they belong. The evidence of the factors and clusters explaining company financing provides insights for improving credit access practices and for implementing public policies that facilitate access to credit and promote economic development.

The Role of Operational Performance as a Mediator in the Influence of Supply Chain Management Practices on the Financial Performance of MSMEs

<p><em>Financial performance is a tool for measuring the success of a business. Managers can make appropriate decisions by reviewing the results of the company's financial performance. One of the aspects believed to influence the financial performance of a company is operational performance. Of course, this must be done through supply chain management practices in order to achieve good financial performance of the company. This research aims to determine the mediating role of company operational performance in the influence of supply chain management (SCM) practices on company financial performance. A quantitative approach was carried out by distributing questionnaires to 100 business leaders. Primary data consists of the results of filling out a questionnaire by the business owner. The data collection technique uses a survey method by distributing questionnaires to respondents, namely business owners. The MSMEs in question are 100 MSMEs located in Yogyakarta. Validity and reliability tests are carried out before implementing research analysis techniques. In this research, we examine the effect of SCM practices on financial performance through the operational performance of micro, small and medium enterprises in Bantul Regency, Yogyakarta Special Region (UMKM). The analysis technique uses structural equation modeling-partial least squares (SEM-PLS) with the WrapPLS application. The researchers estimated the results of direct effects and indirect effects. The research results prove that operational performance as a mediator in SCM practices influences the financial performance of the company. Apart from this, it is also proven that supply chain management has influence on operational performance, operational performance has influence on financial performance and supply chain management also has a direct influence on financial performance.</em></p>

Information System-Based Supply Chain Management Strategy to Improve Company Operational Performance

Supply chain management is an integrated series of processes that encompass all steps from raw material procurement to the delivery of final products to consumers. The efficiency and effectiveness of the supply chain are crucial for the operational success of companies in achieving competitive advantage. This research aims to analyze an information system-based supply chain management strategy to enhance company operational performance. The methodology used in this study is a qualitative literature review with data collection from Google Scholar from 2001 to 2024. The results of the study indicate that the Information System-Based Supply Chain Management (ISBSCM) strategy has significant potential to improve company operational performance through the integration of information technology throughout the supply chain processes. By leveraging integrated information systems, companies can enhance efficiency, visibility, and responsiveness to market changes. However, the implementation of this strategy is not without challenges, including data security issues, costs, and change management.

Earnings Quality Assessment of Financial Statments Using the Beneish M-Score Model in Manufacturing Companies Listed on the Indonesia Stock Exchange (BEI)

This study aims to analyze and assess the level of manipulation of financial statements and to analyze the quality of earnings of manufacturing companies in terms of relevance based on Beneish M-score. The type of research used is qualitative with a descriptive approach. The object of this research is a manufacturing company listed on the Indoneisa Stock Exchange (IDX) totaling seven companies. The results of the study using the Beneish ratio index show that in 2019 the number of manufacturing companies classified as non-manipulators both LQ45 and non-LQ45 and in 2020 the results of the Beneish ratio index show that manufacturing companies are classified as non-manipulators, because the companies classified as non-manipulators have no more than three parameter indices of the eight parameter indices that have been determined. In the Beneish M-score results, there is one company that is classified as a manipulator where there is a possibility of an increase in the parameter index which affects profit and loss which causes the company to have poor prospects. Companies categorized as non-manipulator companies based on the Beneish M-score index can be assessed that the company has good financial performance, is able to manage items in the financial statements effectively and efficiently such as in profit and loss, good financial performance can indicate the company has good earnings quality, Beneish M-score results when associated with earnings quality in relevance means that the financial statements and measurement index on the company accurately reflect the company's operational performance, providing an accurate overview of the company's financial condition.

The Influence of Value Co-Creation and Mastery of Technology on Operational Performance Through Employee Performance

The application of value co-creation and mastery of information technology is fundamental to creating employee performance which will ultimately influence the company's operational performance. From this phenomenon, the question that will be answered in this research is how value co-creation and mastery of information technology influence the operational performance of coffee shop company employees in Tasikmalaya with employee performance as a mediating variable. The purpose of this research is to determine and analyze the effect of implementing value co-creation on employee performance in coffeeshops, the use of information technology on employee performance in coffeeshops, value co-creation and the use of information technology on employee performance and employee performance mediates the influence of implementing value co-creation and the use of information technology on operational performance. The method used was a survey with a population of 322 which was processed using confirmatory factor analysis (CFA) with the AMOS 21 program. The research results showed that there was an influence between Value Co-Creation on Employee Performance, Information Technology on Employee Performance, Employee Performance on Operational Performance, Performance Employees mediate the relationship between Value Co-Creation and Operational Performance, and Employee Performance mediates the relationship between Information Technology and Operational Performance.

Enterprise Resource Planning (ERP) in Supply Chain Management (SCM) Operational Performance: A Systematic Literature Review

Technological developments in the digital era have made competition in the business world increasingly fierce. Companies are competing to find ways to increase productivity to be able to produce products of better quality and in large quantities and quickly by utilizing technology. One of the many technologies that can be utilized in companies is Enterprise Resource Planning (ERP). Many companies have implemented this ERP system to support the company's operational performance and productivity. Company operations in creating products have different levels of difficulty. Every company has business management in carrying out these operational activities, namely Supply Chain Management (SCM). Starting from procurement of raw materials to distribution of finished products, many are managed by SCM. In order to make SCM performance more effective and efficient, technology is needed in its management. The technology that can be used is ERP. It is hoped that the implementation of this ERP can help SCM operational performance become even more productive.

Delisting regulation and corporate financialization: Evidence from China

We investigate the impact of the implementation of new delisting regulations in China in 2020 on corporate financialization, utilizing data of non-financial listed companies in Chinese A-share market from 2018 to 2022. We find a reduction in corporate financialization after the new delisting regulation, and the decline can be attributed partly to a more constrained free cash flow and reduced managerial myopia. The decrease in financialization is more pronounced among non-SOEs, companies with management shareholding, concentrated ownership structure, and less external attention. After the new delisting regulation, the operational performance of companies’ core business is also improved, and more long-term assets are allocated, indicating a positive effect of the new delisting regulation on real economy.

Effects of the UNE 166.002 standards on the incremental and radical product innovation and organizational performance

PurposeThe purpose of the study has been to fill the gap detected in the literature and to analyze whether the application of management of R&D in accordance with UNE 166002:2021 allows companies to obtain higher product innovation and better performance, specifically incremental and radical product innovations.Design/methodology/approachThe population used in this study included Spanish manufacturing organizations that were active, had more than 50 employees according to the SABI. The information was collected through a structured questionnaire previously tested using a company specializing in the sector under the supervision of the authors. A total of 1,154 companies were randomly contacted in order to reach an acceptable number of 225 valid questionnaires. The data analysis has been carried out with structural equation methodology.FindingsThe results obtained with a sample of 225 companies show that the application of this standard for innovation management promotes the development of new products with incremental and radical changes, and improves business performance. It has also been found that incremental and radical product innovations mediate the relationship between this standard and performance.Research limitations/implicationsFirstly, the survey is only addressed to the company's operations manager. Secondly, the sample used is cross-sectional, whereas innovation management implies a broad implementation process.Practical implicationsManagers must know that radical and incremental product innovation can improve the company's operational performance. And the most direct implication of this work is that, those companies that are committed to the development of innovations should seriously consider the application of the principles incorporated in Standard 166,002, as an instrument that improves the results of innovation in the organization. Since this SIMS promotes both types of innovations, it improves results directly and indirectly through these product innovations.Originality/valueThe existing literature indicates that no empirical study has focused on the benefits of this SIMSs for innovation and BP. This paper fills this gap detected in the literature and analyzes the results of the implementation of this standard on incremental and radical product innovations and business performance.

The Effect of Customer Service Support on Brand Value: Leveraging Customer Service as a Co-Creator of Brand Value to Enhance Corporate Performance. Evidence from FinTech industry

The financial technology (fintech) industry has disrupted traditional financial services by providing new and innovative ways for consumers to access banking and investment products (Kshetri, 2018). With the increasing number of fintech companies in the market, competition has become intense, leading companies to differentiate themselves to attract and retain clients (Nair et al., 2021). One way to create brand value is through exceptional customer experience, with customer support service being a critical factor in its creation (Nair et al., 2021; Vuorinen, Uusitalo, & Vos, 2012). Despite its importance, the impact of customer support service on consumer behavior and company performance is not well-understood (Gulfraz et al., 2022). To address this research gap, this paper aims to investigate the impact of customer support service on consumer behavior and company performance in the fintech industry. Specifically, the study analyzes the potential of customer support service as a co-creator of brand value and its influence on company performance indicators. Keywords: Brand value, Brand value co-creation, Fintech industry, Company's operational performance, Customer support services

OPERATIONAL RISK ANALYSIS OF INDONESIAN SHARIA BANK OLD MOUNTAIN KCP

Operational risk is one of the risks that must be faced by every financial institution, including Bank Syariah Indonesia (BSI) KCP Gunung Tua. Operational risk is faced by all banks because running a bank's business cannot be separated from the human factor, service procedures, administrative processes, and so on. With the emergence of operational risk, there must be causes. The operational risk can cause the bank to lose money which is caused by several factors, namely first, failure in internal processes related to procedural failures. Second, system failure, the main risk to operations due to the bank's increasing dependence on technology. Third, external events, external factors come from matters beyond the control of the bank which also affect the company's operational performance. This study used a qualitative research method with a descriptive approach, the data sources obtained were primary data and secondary data, which were obtained through interview methods, observation methods, documentation methods and data analysis methods.From the results of this study it can be seen that operational risks that occur at BSI KCP Gunung Tua occur due to internal risks such as incorrect checking of counterfeit money, human resource risks such as atk carried by customers, system risks, namely systems that are down and will always occur every year, risks law such as loss of customer guarantees, as well as external risks such as the Covid-19 disaster. The BSI KCP Gunung Tua continues to improve its risk management in order to reduce operational risks that occur. The method used by BSI KCP Gunung Tua to overcome operational risks that occur is by focusing on these 2 factors, optimizing controlling for all employees (internal) and also optimizing controlling for customers (external). It can be seen from the management that has been implemented quite well, it can be seen that the operational risk at BSI KCP Gunung Tua is now reduced. The current operational risk is only because the system is down and that is now only once a year. And the risk because of covid-19 has reduced.

IMPACT OF LEVERAGE BUYOUT (LBO) AND MANAGEMENT BUY OUT (MBO) ON COMPANIES

Based on previous research, researchers analyzed the impact of LBO and MBO on company performance. The research method used is qualitative research with descriptive analysis techniques through a literature review. This research focuses on collecting empirical data and information related to the impact of LBO and MBO. The results showed that LBO can significantly affect company performance by increasing profitability, sales growth, and operational efficiency. External factors such as economic conditions and industry competition, as well as internal factors such as management quality, changes in ownership structure, and incentive systems, influence the long-term success of LBOs. However, risks such as reduced profitability and operational efficiency also need attention. on the other hand, MBO positively impacts a company's operational performance, including increasing profits, profit margins, and efficiency. MBO often occurs when economic policy uncertainty increases and can result in favorable purchase prices and significant operational improvements. However, MBO is not consistent in increasing the performance of companies that fail through MBO, and tax factors also affect the value and performance of companies in the context of MBO. Overall, MBO has the potential to increase company performance, value, and productivity, but structural changes need attention. MBO is not consistent in increasing the performance of companies that fail through MBO, and tax factors also affect the value and performance of companies in the context of MBO. Overall, MBO has the potential to increase company performance, value, and productivity, but structural changes need attention. MBO is not consistent in increasing the performance of companies that fail through MBO, and tax factors also affect the value and performance of companies in the context of MBO. Overall, MBO has the potential to increase company performance, value, and productivity, but structural changes need attention.

The Effect of Supply Chain Integration on Operational Performance and Product Quality

PT XYZ Indonesia is a company that has shown outstanding business performance in the last three years, and it has grown yearly. A study was conducted by distributing 40 questionnaires that became samples of company employees with work relationships and knowledge of supply chain integration, operational performance, and product quality to test these hypotheses. Furthermore, the data were analyzed with an SEM tool to test the causality relationship of the research variables. The theoretical evidence showed that product quality is positively influenced by supply chain integration for this type of company's business field. The managerial implications are to pay more attention to supply chain integration which greatly affects the company's operational performance. Meanwhile, some limitations in this study can be found at the end of the discussion.

Equity incentive contract characteristics and company operational performance-An empirical study of Chinese listed companies.

Equity incentive, as an institutional arrangement for the coordination of the interests of shareholders and managers, has been widely implemented by public companies in developed capital markets throughout Europe and America. However, does it work and/or when might it be more effective in emerging market economies such as China? We aimed to understand the effects of equity incentive plans implemented by listed companies in China and the potential influence of the general characteristics of contracts on the effectiveness of equity incentive plans. Based on behavioral decision theory, this paper adopts a multivariate linear regression model to analyze the 1695 equity incentive plans implemented in Chinese listed companies between 2010 and 2018 with their two-year lagged performance data. The empirical results show that the operational performance of companies after implementing equity incentive plans shows a trend of polarization. In the 95% confidence interval, the effect of restrictive stock incentive and exercise-constrained variables is not significant, while the validity period has a significant positive correlation and incentive intensity has a significantly negative correlation with the company's operational performance. Furthermore, the negative effects mentioned above become more obvious with a longer plan implementation period. Based on these conclusions, we suggest that companies could adopt equity incentive plans with a relatively longer validity period and more reasonable incentive intensity. Additionally, it would be better for companies to select non-restricted stocks as incentive tools if there is no obvious preference.

The impact of the integrated supply chain on the operational performance of companies in the Moroccan electric vehicle sector

This study supports the idea that supply chain integration decisions are essential in the choice of strategy for the electric automotive industry in Morocco. Some studies indicate that the most admired and feared competitors today are companies that link customers and suppliers and their internal processes to tightly integrated networks. On the other hand, empirical studies have shown that supply chain integration is no guarantee of success. On the basis of these assertions, we will examine the relationship between supply chain operational performance-dependent variables (cost, quality, flexibility, and time) and integration-independent variables (customer, supplier, and internal integration). The current research is considered a causality study, addressing the effect of the three dimensions of integration on the operational performance of companies in the Moroccan electric automotive sector. Empirical data were collected from 253 companies, using a questionnaire developed and refined through interviews with experts and the panel of judges. Statistical techniques such as descriptive statistics, correlation and multiple regressions were used. The results of the study indicate a significant positive relationship between the integrated supply chain and the operational performance of the supply chain of companies in the Moroccan electrical automotive sector. Thus, the results affirmed that this sector interlocutors report a close relationship between integration and supply chain performance.

Determinants of operational performance of pharmaceutical wholesalers’ companies in Bali province

Pharmaceutical distribution companies or also known as Pharmaceutical Drug Wholesalers (PBF) play a significant role in the distribution of pharmaceutical products in Indonesia. Without the role of PBF, the drug will not reach the patients from the manufacturer. The PBF appointed by the manufacturer to distribute the product, has operational performance targets that must be achieved. However, like other businesses, PBF operational performance is also affected by external factors, such as the COVID-19 pandemic, government regulations and competition intensity. The impact of internal factors such as limited company resources is also investigated in this research. This research tries to explore the impact of external factors, those are: the pandemic of COVID-19, government regulations, competition intensity and internal factors that are the company's limited resources to PBF operational performance. Sales strategy is also used as mediating variables from external and internal factors to operational performance, thus operational control as moderating variable from sales strategy to operational performance respectively. Data collection was obtained by questionnaires and interviews with 44 PBF operational leaders in Bali, Indonesia. Data analyzing using SmartPLS 3.0. The COVID-19 pandemic, government regulations, competition intensity and company’s limited resources have a negative impact on the company's operational performance. Sales strategy serves as a mediating variable from external and internal factors to operational performance. Operational control plays a significant role in moderating sales strategy and the performance of operational. The theoretical implication of this research is to enhance The Contingency Theory, which claims that the business environment, strategy, and control are three major contingency elements that are linked. The findings of this study also strengthen the concept of Transaction Cost Theory, which states that the relationship between the parties in a transaction is associated with rights and obligations that are poured into a very detailed agreement. The operational performance required by the principal to PBF is also included in the agreement and PBF should strive to achieve that operational performance.