Corporate Growth Strategy Research Articles

Board Size Moderates the Influence of Research and Development (R&D) Intensity on Financial Performance

Innovation and R&D activities have been highlighted as important factors influencing corporate growth strategies and corporate financial performance. However, the company’s management policy determines the decision to invest in R&D activities, and the board of directors is the leading company’s manager. This research examines the effect of R&D intensity on company financial performance, with board size as a moderating variable. This research uses multiple linear regression methods, ordinary least squares (OLS) and moderated regression analysis (MRA) with the application program IBM SPSS Statistics 22 for Windows to explore the hypothesis. The results of this paper show that R&D intensity has a positive and insignificant effect on corporate financial performance. Then, after board size was entered into the regression model, the results showed that board size positively and significantly moderated the influence of R&D intensity on the company’s financial performance

Corporate Growth Strategies and Performance of Savings and Cooperative Societies in Mandera County, Kenya

Consistent and continuous threats from the environment have been the order of the day in the corporate world and therefore businesses need to adjust accordingly in order to survive. Just like is the case in other organizations, there is a need for SACCOs to be in a position to respond strategically to the turbulence and environmental changes they operate in. SACCOs have made little effort to master corporate growth strategies for the changes in the environment. This study therefore interrogates the influence of Corporate Growth Strategies on performance of Savings and Cooperative Societies in Mandera County, Kenya. The specific objectives are to establish the influence of Product Development Strategy on performance of Savings and Cooperative Societies in Mandera County, Kenya ; to assess the effect of Market Development Strategy on performance of Savings and Cooperative Societies in Mandera County, Kenya ; to determine the role of Divestment Strategies on performance of Savings and Cooperative Societies in Mandera County, Kenya and to explore the extent to which Diversification Strategies influences performance of Savings and Cooperative Societies in Mandera County, Kenya. The study is anchored on the Porter’s Competitive Advantage Theory, the Dynamic Capability Theory and Resource Based Theory to help explain the concepts from a theoretical point of view. An explanatory research design was adopted to achieve the objectives. Targeted population for the present survey was the four active SACCOS in Mandera county according to the Mandera County Integrated Development Plan (2013-2017). The plan indicates that the county has five registered SACCOs but only 4 with a total membership of 100 are active. Focus for the study was on the four SACCOs which are active. A quantitative method was adopted whereby data using structured questionnaires was collected. However, before using the questionnaire, its reliability was tested using a Cronbach Alpha Coefficient at a threshold of 0.7. Additionally, the quality of the content of the questionnaire was checked to make sure there are no typographical or form problems. Both descriptive and inferential analysis were used to examine the quantitative data. Correlation and regression analysis were the inferential methods used. Multivariate regression is the best option. Finally, tables and figures were used to present the study's results. The results of this study would greatly advance our understanding of corporate strategies that consider the constraints posed by environmental change on organizational performance. Furthermore, the gaps found in earlier and current research of the approach would be filled by scholars in the present and the future thanks to the findings.

.Analisa Proses Tahapan Akuisisi Bank ABC oleh PT XYZ dan PT DEF

The development of Mergers and Acquisitions is a form of corporate growth strategy to access new products and markets and is considered a fast way. PT Bank ABC was acquired by PT DEF which aims to compete in the Digital Bank business which is currently developing in Indonesia. In general, a bank that is acquired will have a positive effect on its financial performance, but this needs to be reviewed in non-financial matters such as work culture or constraints in making strategic decisions on the continuity of PT Bank ABC's business, the research method used is a qualitative research method with a descriptive method by comparing the performance and work culture of PT Bank ABC before the acquisition and after the acquisition. The data used in this research consists of primary data and secondary data obtained from various sources, primary data obtained directly from interviews with several Middle Top Management of PT Bank ABC while secondary data obtained from monthly publication reports of PT Bank ABC before the acquisition process and after the acquisition process. Broadly speaking, the acquisition process of PT Bank ABC has been carried out in accordance with the POJK provisions and while in terms of performance or work culture there are differences after the takeover of shares. 
 Keywords: merger & acquisition, process evaluation, performance & work culture.

Influence of Entrepreneurship Manifestation Factor on Organisational Innovation: The Role of Corporate Entrepreneurship and Imperative Innovation Culture

The importance of corporate entrepreneurship is continuously highlighted as a crucial potential corporate growth strategy that seeks continued growth opportunities. Corporate entrepreneurship is perceived as a critical element of corporate performance, so studies on key internal factors that may affect the manifestation of such entrepreneurship within an organisation are gaining increasing attention. This is because an innovative organisational environment is vital for invigorating corporate entrepreneurship in the organisation. This study aims to show how managers and employees can design and run their organisations in a way that is conducive to innovation, value-creation and continued growth by examining how internal organisational support and imperative innovation culture manifests corporate entrepreneurship and supports organisational innovation. This study analysed how key internal factors affecting the manifestation of corporate entrepreneurship influence the organisational innovation of 229 Korean companies. This study intends to determine the internal factors that support and strengthen corporate entrepreneurship by shedding light on which of them affect the manifestation of corporate entrepreneurship necessary to nurture and develop more intrapreneurs. This research also aims to analyse how imperative innovation culture moderates the relationship among innovation activity, organisational innovation and risk-taking.

An Evolution Model of Fintech Supports Technology‐Based SMEs Innovation and Growth

The survival and growth of technology‐based small and medium‐sized enterprises are faced with a complex and changeable market environment. Introducing the role of fintech, the paper builds an evolutionary model for growth of technology‐based SMEs and analyzes fintech incentive mechanisms to guide corporate growth strategies based on some cases by the simulation. The research results show that the evolutionary game strategy that SMEs are willing to adopt is {cooperation, cooperation}. And, under the incentive mechanism of fintech, the evolutionary game strategy adopted by SMEs and fintech institutions is {cooperation, cooperation, participation}. In the growth of fintech institutions serving technology‐based SMEs, the selection strategy of SMEs is more sensitive to changes in fintech institutions’ willingness to participate in cooperation, cooperation costs, and cooperation benefits. The selection strategy of fintech institutions is more affected by changes in cooperation costs and incentive funds during the process of participating in cooperation.

Corporate growth strategies in an era of digitalization: A network analysis of the national basketball association’s 2K league sponsors

Traditional sport leagues must innovate and embrace emerging trends to grow. At the forefront of these trends are the inherently digital esports –competitive video game competitions. In particular, the NBA is a trailblazer in the esports industry by partnering with the video game publisher Take-Two Interactive, to create a virtual sport-simulation league, the NBA 2K League. The NBA’s entrepreneurial activities create challenges regarding how to position the digital, boundary spanning product that incorporates elements from both traditional sports and esports. The current study utilized network analysis to examine three sponsorship portfolios: the NBA, the 2K League, and an existing esports league, the League of Legends Championship Series. Findings indicate that the NBA is using an innovative hybrid corporate growth strategy, with a diverse sponsorship portfolio for the 2K League. This strategy serves to mitigate the challenges of digitalization by legitimizing the 2K League across physical and virtual domains.

Consequences of Mergers and Acquisitions on Firm Performance: A Sector-Level Study of Public Listed Companies in China

As the motives of mergers and acquisitions (M&As) are different across industries, this study examined the synergy effects of technological gains and capital intensity on the operating performance of the acquiring firms after M&As. The sample comprised 434 completed M&As initiated by Chinese firms listed on the Shanghai and Shenzhen Stock Exchanges with 2,170 observations over the years 2012 to 2016. On average, the firms performed better after M&As. The results show that the operating performance of public health, information technology, telecommunication and financial service firms within the high-technology sector increased after M&As. This suggests that high-technology firms can benefit from M&As through a more extensive knowledge base and financial synergy. We also found that good governance characterized by board independence affects firm performance positively. Therefore, the acquisition of technology through M&As could be an essential corporate growth strategy in the Chinese capital market, which is transforming from a state-controlled economy to a more market driven one. The findings provide useful insights to both corporate players and policy-makers on the types of M&As that stand higher chances to generate positive outcomes and those that need extra measures and further scrutiny to prevent inefficient allocation of resources.

Corporate Growth Strategies and Performance of Selected Savings and Credit Cooperative Societies in Nairobi City County, Kenya

The dynamic nature of business operating environment has called on business leaders to be strategic in their leadership roles if they are to sustain their competitiveness into the unforeseen future. Growth is important in Sacco’s because it is future oriented establishing ways in which the organizational operations can be aligned to future changes in the business environment to ensure that competitiveness is sustained. The SACCOs in Kenya have experienced problems in the past; some even shutting down therefore there is need for customer growth to be enhanced so as to increase their incomes so as to sustain the business. These SACCOs have to look for leaders and managers who can develop future targets, direct and lead other staffs towards meeting the firm’s objective and gaining a competitive edge. The aim of this study was an assessment of corporate growth strategies and performance in savings and cooperative societies in Kenya, Nairobi County. The study sought to determine the influence of market expansion, diversification strategies and acquisition strategies. The study target population was 41 licensed SACCOs in Nairobi County. The study used primary data to collect information, and the data collection instrument was a questionnaire which was given to the 41 operations managers in the 41 selected SACCOs. The data collection procedure was done by the researcher and drop-and-pick strategy will be applied. The data was coded and keyed in Statistical Package for Social Science (SPSS Version 23.0), and was analyzed using both descriptive and inferential statistics. For descriptive statistics was through mean scores, standard deviations, frequencies and percentages, while the inferential statistics was through regression analysis to establish the relationship between strategic leadership and customer growth. The findings were presented in tables and charts for easy understanding, interpreting, and describing the data. The study established that market expansion, diversification strategies and acquisition strategies as corporate growth strategies had a positive and significant effect on the performance of SACCOs in Nairobi City County. The study concluded that the SACCOs significantly employed market expansion strategies through improved branch network, customer base enhancement, new distribution channels and technological innovation. The study concluded that the SACCOs embraced a hybrid of the main diversification strategies, diverse products and services significantly. It was concluded that to a little extent the selected SACCOs in Nairobi City County have employed acquisition as a corporate growth strategy. The study recommends that the SACCOs should embrace integrate technology in the implementation of corporate growth strategies to enhance efficiency and effectiveness. Further studies should be undertaken to establish the effect of corporate growth strategies on the performance of other SACCOs in other regions to establish the disparities or similarities among the financial sector players.

How Sustainable Are Corporate Growth Strategies of Development Banks in Developing Countries? Evidence from Nigeria

Minimal research effort has been expended to the extent to which adopted growth strategies stimulate corporate sustainability of development banks in developing economies such as Nigeria. Hence, the study examined how industry specific growth strategies have predicted the corporate sustainability of these banks. Corporate growth strategy variable was proxied by market expansion, market strategy and human resource strategy as extracted from the Ansoff Matrix and Resource Based Theory, while sustainability was modelled by market share, customer experience and organizational evolution. Descriptive research design was employed in studying primary data obtained through a Likert Scaled structured questionnaire. Holistically, a sample frame of 477 executives from 6 development banks in Nigeria, including the African Development Bank was examined. Upon analysis with Linear Regression, it was found that a significant relationship existed between market expansion and market share; marketing strategy and customer experience; and human resource strategy and organizational evolution of development banks in Nigeria. For Nigeria, the results indicate significant evidence of linkages between corporate growth strategies of development banks and sustainability; thus, confirming the hypotheses of the Ansoff Matrix, the SMCR Model and Resource Based Theory.

Corporate growth strategies and financial performance of quoted manufacturing firms in Nigeria: The mediating role of global economic crises

This study examines the mediating role of global economic crises (GECs) in the effect of growth strategies on Nigerian manufacturing firms’ performance. The study used secondary data for the period...

THE IMPACT OF MERGERS AND ACQUISITIONS ON FINANCIAL PERFORMANCE OF LISTED COMPANIES IN CHINA

The purpose of this paper is tantamount to study whether mergers and acquisitions (M&A) improve the financial performance of Chinese listed companies. We use panel data regression to examine 434 completed M&A activities from 2012 to 2016 initiated by Chinese companies listed on the Shanghai and Shenzhen Stock Exchanges. The evidence indicates that, on average, the firm performed better after the M&A activities. We further divide all sample enterprises into three different types of M&A. The results demonstrate that when other conditions are unchanged, horizontal M&A and conglomerate M&A are positively related to firm performance. Our results suggest that the firm can benefit from horizontal M&A through economies of scale in operations while financial synergies following the conglomerate M&A enhance the firm performance. The findings deepen our understanding of the consequences of M&A and provide evidence that it is an important corporate growth strategy for the Chinese capital market.

Corporate Growth Strategies, External Operating Environment and Firm Performance: An Empirical Survey of Large Manufacturing Firms in Nairobi City County, Kenya

Theoretical literature in strategic management describes performance as outcome of firm’s strategic objectives, which are developed and executed at the corporate level of management. Conceptual propositions also suggest that the external operating environment of a firm influences the relationship between its corporate strategies and performance. This paper examines the direct effect of corporate growth strategies on performance of large manufacturing firms in Nairobi City County, Kenya. The strategies under study are market development, product development and diversification. The paper also examines the moderating effect of external operating environment on the relationship between corporate growth strategies and performance of the large manufacturing firms. The authors adopted indicators of competitive position, consumer behaviour and credit accessibility to measure external operating environment.Multistage probability sampling technique was used to select study sample of 189 firms. One hundred forty eight firms responded where primary data was collected using a semi-structured questionnaire. Data was analysed using descriptive and inferential statistics. The study findings indicate that corporate growth strategies have a positive and significant impact on a firm’s performance. It also found out that external operating environment has a moderating effect on the relationship between corporate growth strategies and firm performance. The study has important implications for managers and policy makers of the manufacturing firms.

CSR as Corporate Growth Strategy ──A Case Study of Foxconn──

CSR as Corporate Growth Strategy ──A Case Study of Foxconn──

COMPETITIVE STRATEGIES AND ORGANIZATIONAL PERFORMANCE: DETERMINING THE INFLUENTIAL FACTOR CONQUER OVER THE RIVALS IN THE FOOD INDUSTRY OF BANGLADESH

An organization always faces the multifarious challenges like technological evolution, volatile and rigorous demand transformation, economic shifting, and strategic dilemma from its counterpart. Competitive advantages over its counterpart require a massive and propitious strategic direction that surely accomplishing the ultimate desire objectives of an individual organization. This study is mainly incorporated with the different competitive strategies and recognizes how these strategies influence over the organizational performances especial concentration on the food industry in Bangladesh. For identifying the substantial and commensurate circumstance in the food industry a simple random sampling method was used with a sample size of 1025 from the 15 different food manufacturing company. With the concentration of this rigorous work it was observed that competitive strategy has strengthened the organizational performance in the food industry and also noted that cost leadership strategy comparatively propound strategy that helps the firm to consolidate its market share and accelerate its market superiority.Keywords: Competitive advantages, Cost leadership, differentiation strategy, focus strategy, corporate growth strategy, simple random sampling.JEL Classifications: L16, L 22, M 30DOI: https://doi.org/10.32479/irmm.8109

EFFECTS OF CONSUMER PERCEPTIONS OF THE DIFFERENT TYPES OF CSR ACTIVITIES ON CORPORATE BRAND EQUITY

Introduction Recently, Corporate Social Responsibility(CSR) is becoming very important issue in the corporate growth and marketing strategy. In this study, based on Carroll (1979, 1991)’s conception of CSR study, we categorized the CSR types into the five underlying dimensions – i.e. economic, legal, ethical, benevolent, and environmental responsibilities. We tried to investigate the effects of consumer’s perception of the five different types of CSR on the corporate brand equity. More specifically, we used the corporate image, consumer-company identification, and the level of trust which have been used as important variables in the previous brand value studies as the underlying mediating variables of the research model. Theoretical Background and Research Model Based on the conceptual background and our research questions, 11 research hypothese regarding the consumer perceptions of the five different types of CSR, corporate image, consumer-company identification, trust, consumer loyalty, and corporate evaluation were developed. We also tried to include the moderating effects of CSR congruence and consumer’s CSR orientation between the CSR types and mediating variables of the final research model. Results and Conclusions To test the research hypotheses and our research model, we conducted questionnaire survey and collected 552 consumer data for the final analysis. Through the confirmatory factor analysis, reliability and validity of the study constructs were verified. By using the structural equation model, research hypotheses were tested and most research hypotheses were statistically significant and accepted. The final research model also showed the statistical significance with the goodness-of-fit indices. The managerial implications of the study results for the corporate marketing managers and the limitations of the study were also discussed.

Insurer Growth Strategies

AbstractWe study corporate growth strategy within the U.S. property–casualty insurance industry—where firms are required to report uniquely detailed operating information. We present and test two hypotheses related to the manner in which firms choose to grow: the pecking order hypothesis and the managerial discretion hypothesis. Our results imply that insurers follow a general pecking order of growth strategies, where they tend to grow first by entering new states, then by adding new lines of business, and finally through acquisitions. This order is consistent with firms initially choosing to grow in the least costly and complex manner and subsequently choosing more costly and complex methods. We also find evidence in support of the managerial discretion hypothesis as mutual insurers are less likely to choose to grow and, when they do, they tend to select less complex growth methods.

Impact of “Product Scope” and “Customer Scope”

IntroductionImmense research regarding studies of diversification as one of the most important approaches to corporate growth strategy (e.g., Oki, 2013; Palich, Cardinal, & Miller, 2000) has been conducted. Most such studies, however, tend to focus only on diversification at particularly large companies, with less research on diversification considering small- and medium-sized businesses (e.g., Kono, 2016). In addition, we observe limited studies focusing on diversification at the supplier firms that manufacture and sell intermediate products to other businesses, despite the fact that these suppliers account for the bulk of the economy (e.g., Konno, 2007).The most important dimensions of the diversification strategy for suppliers, most of which are smaller than companies dealing in finished products, are extending (product range) and customers (customer reach) within the same industry. For example, supplying a new product to an existing company with a historical relationship is an example of extending in the former dimension; moreover, supplying an existing product to a new customer with no previous relationship is an example of extending in the latter dimension.Numerous studies, both theoretical and empirical, on diversification regarding each of these two dimensions exist separately. Practically, however, decisions about diversification along these two dimensions are not necessarily made independently. No existing studies have considered the two in an integrated manner, notwithstanding the fact that decisions are often made based on comparing and validating them at the same time, implying that they are closely interdependent. This study integrates the two perspectives of product scope dimension and customer scope dimension to provide empirical analysis and discussion regarding the relationship between the supplier diversification strategy and management performance.MethodThis study examines the differences in duration of continuing business and probability of the business continuing for each of the following five categories of business between suppliers and customers.As shown in Figure 1, we first divide the business relationship into two categories of existing and new business. Subsequently, we further categorize new business as either existing or new along the two dimensions of customer scope and product scope, using the growth matrix approach from Ansoff (1965), yielding four categories of business. This results in a total of five categories of business: existing, existing customer/existing product, new customer/existing product, existing customer/new product, and new customer/ new product.For example, business already in place at some point in time would be categorized as existing business, while business commencing after that point in time would be categorized as new business. Within a new business, providing a new product to an existing customer would be considered existing customer/new product1 and providing an existing product to a new customer with no past business would be considered new customer /existing product. Supplying an existing product to a customer with a historical relationship would be considered existing customer/existing product, while providing a new product to a new customer with no historical relationship would be considered new customer /new product. The problem we posed to ourselves is whether any differences would be visible across these five categories of business in the outcome variables-the duration of the business relationship and the probability of it continuing.In the following part, we estimate the duration of the business relationship and probability of it continuing (survival rate) for the Japanese automobile component supplier industry from 1990 to 2008, using the Kaplan-Meier method,2 to obtain an answer to the problem we posed.DataWe consider a business by a particular supplier in a particular component with an automotive manufacturer. …

Effects of Outsider’s Monitoring on Capital Structure and Corporate Growth Strategy: Evidence from a Natural Experiment

Debt-ridden corporate growth and increased vulnerability was one of the causes of the 1997 financial crisis in Korea. Introduction of the outside director system has been the core part of the board reforms following the crisis. Our estimation using instruments obtained from a natural experiment illustrates that outside monitoring has (i) improved capital structure of firms even when we control for the leverage regulation effect, (ii) enhanced compliance with leverage regulation and thus reduced business risks, and (iii) reduced excessive growth and excessive investment more consistently for the top 10 largest chaebols than non-chaebol firms and smaller sized chaebol affiliates. Our results shed some light on why existing studies report the positive effect of outsiders on firm value and add value to existing agency theory by illustrating that the effect of improved governance on capital structure could be non-linear.

Effects of Board Reforms on Capital Structure and Corporate Growth Strategy

Debt-ridden corporate growth and increased vulnerability was one of the causes of the 1997 financial crisis in Korea. Introduction of outside director system has been the core part of the corporate reforms following the crisis. Our estimation using instruments obtained from a natural experiment illustrates that outside monitoring has (i) improved capital structure of firms even when we control for the leverage regulation effect (ii) enhanced compliance with leverage regulation and thus reduce business risks and (iii) reduced excessive growth and excessive investment more consistently for top 10 largest chaebol than stand-alone firms and smaller sized chaebol affiliates. Our results shed some lights on why existing studies report the positive effect of outsiders on firm value.

Development of a Method to Retain Experiential Knowledge in Capital Projects Organizations

AbstractAs many professionals near the traditional retirement age, organizations are finding themselves facing a potential mass exodus of their most senior and experienced employees. These potential retirees have a knowledge inventory accrued through a career of successes and failures in their fields. This knowledge base is often the foundation of decisions that enhance operational efficiency, foster innovation, reduce the occurrence of critical errors, and enable corporate growth strategies. This paper addresses the increased rate of knowledge loss in the capital projects industry. The authors conducted case studies, interviews, and surveys to frame the problem and understand what constitutes a successful experiential knowledge-retention program in capital projects organizations. The result is an experiential knowledge-retention management model that aids in the implementation of a corporate knowledge-retention program, assesses current risk of experiential-knowledge loss across organizational knowledge ...