Corporate Strategic Management Research Articles

Boosting Competitiveness Through the Alignment of Corporate Social Responsibility, Strategic Management and Compensation Systems in Technology Companies: A Case Study

Boosting Competitiveness Through the Alignment of Corporate Social Responsibility, Strategic Management and Compensation Systems in Technology Companies: A Case Study

Does shared tenure between board of directors and CEO affect R&D investment?

Psychology literature suggests that shared tenure between individuals affects how they communicate and share information. Given that the relationship between board of directors and CEO involves extensive interactions and information-sharing to maintain shareholders' interests, this study seeks an answer as to whether that shared tenure between directors and CEO affects R&D investments. Using a sample of firms listed in the UK FTSE350 index between 2010 and 2019, we find that directors–CEO shared tenure positively affects R&D intensity. The study has implications for corporate governance and strategic management literature by highlighting Board–CEO shared tenure as a new factor affecting R&D investments. This study has implications for practice and policy-makers. In particular, companies that are eager to strengthen corporate governance and maintain sustained innovation might consider the shared tenure between directors and CEO.

CORPORATE STRATEGY VS STRATEGIC MANAGEMENT

The concepts of corporate strategy and strategic management are often used interchangeably, but they represent distinct yet interconnected aspects of an organization's approach to achieving long-term success. This paper explores the nuances between corporate strategy and strategic management, highlighting their unique roles, objectives, and practical applications within the context of modern business.

RESEARCH ON THE STRATEGIC CONSENSUS OF EMPLOYEES IN THE PROCESS OF ENTERPRISE DIGITAL TRANSFORMATION (THE CASE OF “XDF DONG YUHUI ESSAY INCIDENT”)

In contemporary enterprise development, digital transformation is an important trend. Its success depends not only on technical capabilities, but also on the support of organizations and teams. Employee strategic consensus, as an important dimension of corporate strategy execution, plays a decisive role in the smooth advancement of digital transformation. On the basis of reviewing the development history of the concept of strategic consensus, this article focuses on exploring the mechanism of employee strategic consensus in the digital transformation of enterprises. The article analyzes the potential negative impact of a lack of strategic consensus among employees, using the "New Oriental Dong Yuhui Essay Incident" as an example. Research shows that employee strategic consensus helps accelerate decision-making and execution, improve adaptability to change, promote innovation and collaboration, and improve employee satisfaction and loyalty. Enterprises can effectively establish and maintain strategic consensus among employees by strengthening strategic communication, promoting broad participation, establishing incentive mechanisms, and conducting in-depth research on feedback, thereby promoting the realization of digital transformation goals. As digital transformation has a profound impact on enterprises' internal structure and culture, employee strategic consensus will continue to be a key issue in corporate strategic management and organizational performance improvement.

Threshold effect of non-interest income disaggregates on commercial banks’ financial performance in Zimbabwe

Financial performance has become a trending concept in corporate finance and strategic management in recent times especially in the aftermath of the Global Financial Crisis (GFC) of 2007–2009. As an antidote to charter value erosion caused by stiff competition from incumbents in traditional banking activities, banks venture into non-core banking activities as a diversification and survival strategy. The purpose of the study is to determine the optimal threshold levels of non-interest income that stimulate financial performance of ten Zimbabwean commercial banks using non-interest income disaggregates over 2009–2020. Unfortunately, studies that examine the non-interest-income-financial performance nexus of banks involved in intermediation are scant and inconclusive. Furthermore, the use of threshold models to crack this puzzle are conspicuous. The study employed Fully Modified Ordinary Least Squares and Threshold difference Generalized Methods of Moment nonlinear threshold approaches. The aggregated and disentangled non-interest income dynamic optimal thresholds found are 26 %, 17 % and 10 % whereas the average static ones are 35 %, 28 % and 17 %. Compared to aggregated non-interest income, the study reveals that the disaggregates pose a greater positive impact on financial performance of banks in the upper regime than their counterparts in the lower regime. In addition, more banks were found to be operating below the required minimum thresholds. To avert episodes of bank failures and hedging against banking sector fragility, commercial bank managers should come up with well-diversified portfolios of income-generating ventures. Also, central bank regulations must promote non-interest activities, competition, growth and reduce leverage of commercial banks.

Analysis of the Impact of Capital Market Internationalization on Corporate Financing Structure and Business Strategy

With the acceleration of globalization, the internationalization of the capital market has had a profound impact on corporate financing structure and operating strategy. This paper aims to explore the impact of the internationalization of the capital market on corporate financing structure and operating strategy. By analyzing the concept, characteristics, and development history of the international capital market, it deeply analyzes the factors influencing the evolution of corporate financing structure under the international capital market. Furthermore, it discusses the impact mechanisms of the international capital market on corporate strategic positioning, growth strategies, and risk management strategies, with the purpose of providing theoretical support and practical guidance for enterprises to cope with the challenges of globalization.

Strategic Planning at Federal Level: Main Elements and Structural and Logical Connections

A significant problem of the organization of strategic planning is the lack of a unified methodology for the development of strategic planning documents. At the same time, coherence is not achieved between the accepted documents on targets, tasks, and time frames. The author supports the view that it is necessary to adopt a special normative document that removes these contradictions, and, as a contribution to its development, a number of methodological solutions are proposed, without which the development of a unified methodological approach seems problematic. The article summarizes the practice of federal strategic planning (25 current and 5 discontinued federal strategies are analyzed). It has been established that when developing federal strategies, a wide variety of approaches are used to establish consistency and interrelationships between the elements of strategies. The relationship between the elements is unclear or completely absent. In addition, the interpretations of different elements (goals, directions, priorities, tasks) often do not differ, and are also characterized by features not peculiar to these elements. As a result, the strategy turns into an enumeration of all possible common intentions with an indistinctly expressed, and therefore difficult to control end result. The adaptation of the mission concept from corporate strategic management to state management is considered appropriate. The essence of individual elements of the strategic plan is clarified, and their concepts that are absent in federal legislation (such as direction, priority) are formulated. A structural and logical scheme of the strategic plan is proposed, linking all the elements of the plan into a single system — from the mission to the tasks, as well as containing recommendations on the most appropriate placement of these elements in various types of strategic planning documents. The implementation of the proposed approach will help streamline the development and presentation of strategies, make the choice of strategic goals and directions more reasonable.

Market Strategy Analysis of Traditional Chinese Medicine Tea Replacement Drinks Based on Corporate Strategic Management

Market Strategy Analysis of Traditional Chinese Medicine Tea Replacement Drinks Based on Corporate Strategic Management

ОЦІНЮВАННЯ ФАКТОРІВ, ЯКІ ВПЛИВАЮТЬ НА ЕФЕКТИВНІСТЬ УПРАВЛІННЯ РИЗИКАМИ ПІДПРИЄМСТВ У СИСТЕМІ ЦІННОСТЕЙ ЦИРКУЛЯРНОЇ ЕКОНОМІКИ

The modern economic and environmental context presents complex challenges for Ukrainian enterprises, including the need to integrate environmental standards and principles of the circular economy into risk management strategies. Ensuring business stability requires the implementation of innovative technologies and the development of new management practices aimed at increasing efficiency and reducing negative environmental impact. The adoption of circular economy principles entails significant changes in business models, involving alterations in production processes, consumption, waste management, and resource reuse. In this context, particular attention is given to analyzing the risks associated with these changes and developing methods for their minimization and management. This approach requires both scientific justification and practical testing on real business structures. The article argues for the importance of integrating sustainability into corporate culture and strategic risk management processes within the context of the circular economy. It is argued that a harmonious combination of risk analysis with sustainability considerations, active engagement of stakeholders, development of strategies reflecting circular economy principles, and transparent reporting are necessary. These aspects together form a comprehensive approach to risk management, contributing to the sustainable development and long-term success of enterprises. It is demonstrated that such an integrated approach is crucial for effective risk management in the conditions of the circular economy, as it takes into account not only financial but also social and environmental aspects of enterprise activities. The role of innovation and technological progress in risk management within the circular economy is emphasized. Innovative approaches can contribute to more efficient resource utilization, waste reduction, and optimization of production processes, which are key elements of the circular economy. Thus, focusing on innovations and technologies can further strengthen the strategic risk management model, oriented towards sustainability and efficiency.

Reflections on Human Resource Planning Based on Corporate Strategic Management Perspectives

Reflections on Human Resource Planning Based on Corporate Strategic Management Perspectives

Green Competitive Advantage in The Tourism Industry

Despite the significant growth of Indonesia's tourism sector, its competitive standing in the industry is still comparatively disadvantaged when compared to neighboring countries like Singapore, Malaysia, and Thailand. Previous empirical studies have identified a significant truth: the emergence of green tourism and a shift in tourism demand. Our research endeavors to formulate a sustainable tourism development strategy for Indonesia with the ultimate goal of attaining a green competitive advantage. Mixed methods were employed to conduct this study. For model analysis, Structural Equation Modeling (SEM-PLS) is utilized. Primary data were obtained directly from research subjects via questionnaires and interviews administered to 60 samples. SEM-PLS was utilized to manage the collected data. Secondary data were obtained from literature from previous studies. In conjunction with the Analytical Hierarchy Process (AHP), the outcomes of the analysis are utilized to ascertain policy priorities for the development of strategies pertaining to the tourism industry in Indonesia. The implications of these results extend beyond the realm of corporate strategic management and its practical implementations to the dynamic tourism sector, where GCA can be obtained. Policy proposals in priority areas were additionally put forth with the aim of fostering the growth of Indonesian tourism.

The future of banking: What are the actual barriers to bank digitalization?

The banking sector must confront challenges arising from globalization, the demand for new business models (BMs), increasing regulation, and ever-advancing digitalization. In this context, innovative competitors, namely FinTechs, are challenging banks and forcing them to rethink existing strategies and structures. In particular, the digital transformation of BMs that have been in place for decades represents a major challenge for companies and their executives. In this article, 407 German bank representatives were surveyed to identify, quantify, and analyze implementation barriers in the context of bank digitalization from a decision-maker’s perspective. By applying structural equation modeling, the authors quantified a variety of barriers and tested their influence on the degree of digitalization at banks. The study uncovered structural relationships between barriers expressed as observed variables— personal involvement, strategic corporate management, technology and regulation, and employees—and the degree of digitalization as a latent variable of banks. The findings increase bank practitioners’ understanding and awareness of barriers to digitalization and contribute to the field of bank digitalization. JEL Classification: G21, M1, O33

REALISASI DANA CSR, TATA KELOLA CSR, DAN MANAJEMEN STRATEJIK KEBERLANJUTAN TERHADAP PENGUNGKAPAN SDGS

COP26 in Scotland it was agreed that real implementation is needed in the agreements on emission reductions and related to global warming and climate change. Indonesia has consistently included these issues in the SDGs framework. Disclosure of SDGs in the Sustainability Report (SR) when viewed from the institutional isomorphism theory is a mimetic stage, where corporations make changes in order to adapt themselves to generally accepted standards (GRI). With an institutional isomorphism theory approach, this study aims to explain the factors that influence the use of SDGs in SR. Using SDGs data on SR of companies operating in Indonesia for the 2018-2020 reporting period. From 231 obtained 136 SR that meet the research criteria, and then processed by testing statistical regression analysis. The results show that the SDGs in SR are influenced by CSR governance and corporate strategic management. Where in this study these two factors are normative stages in institutional isomorphism related to the implementation of SDGs and CSR.

Hinduja Global Solutions Limited: rewarding the shareholders

Learning outcomes After working through the case and assignment questions, the learning outcomes of this study are to understand the dividend policy of a company; compare different types of dividends that a company may give; assess the impact of stock splits and the issue of bonus shares (stock dividends); compare cash dividend and buy-backs as methods of cash distribution to shareholders; evaluate the methods of cash distribution that may be appropriate for the company; and assess the trade-off between long-term value creation and shareholder expectations. Case overview/synopsis This case study presents the dilemma faced by Partha DeSarkar, the executive director and global CEO of Hinduja Global Solutions (HGS) Limited, a leading business process management (BPM) company. The company would have surplus cash of about US$1.2bn from the selling of its health-care service businesses. The company planned to invest a part of this cashflow into the company’s future growth, with some of it distributed among its shareholders. This case study provides an excellent opportunity for students to determine the best method for rewarding the shareholders. It allows students to compare various cash distribution methods. Students can examine in detail the process involved, the quantum of distribution, tax implications, financial implications, fundraising flexibility and valuation impact of available options. Complexity academic level This case study is best suited for senior undergraduate- and graduate-level business school students in courses focusing on corporate finance, financial management, strategic management and investment banking. Supplementary materials Teaching notes are available for educators only. Subject code CSS: 1 Accounting and Finance

EXAMINING THE COMMITMENT OF THE MANAGERS OF SMALL AND MEDIUM-SIZED ENTERPRISES IN CHINA TOWARDS CORPORATE STRATEGIC MANAGEMENT

In the current era, the trend of world economic integration has gradually strengthened, and international competition has become increasingly fierce. As an important factor in the development of enterprises, strategic management of enterprises is also valued and has a profound impact on the growth and development of enterprises. Therefore, it is of more important theoretical and practical significance to study the manager’s degree of emphasis on small and medium-sized enterprises to the strategic management of enterprises. Based on this, this study analyzes and explores the degree of commitment of small and medium-sized enterprises’ managers to corporate strategic management, focusing on the four influencing factors of corporate strategic management (business model, internal environment, external environment, and market competition) to conduct investigations and studies, and then analyze the manager’s degree of emphasis of small and medium-sized enterprises to the corporate strategic management. The main purpose of this study is to explore the managers’ degree of commitment toward strategic management. Through research and discussion, small and medium-sized enterprise managers will investigate and study the attitudes and behaviors of the four influencing factors of corporate strategic management to achieve the goal. This study uses quantitative research to test the hypotheses and collects data on behalf of independent variables and dependent variables through questionnaires. And this study used two commonly used software tools, SPSS and Smart PLS.

The BharatPe debacle: growth at the cost of governance?

Learning outcomes The case is aimed at providing students with an opportunity to understand various aspects of corporate governance and the consequences of poor corporate governance. The case addresses the following objectives: The students need to assess the role of the board in implementing corporate governance. The students should be able to explain the conflicts experienced by various stakeholders in an organization. The students need to evaluate the balancing act of growth and governance in a startup. The students should be able to determine the current state of business sustainability of the high-growth startups in India. Case overview/synopsis The case presents the challenges faced by the CEO of BharatPe, Suhail Sameer. Beginning in 2022, Bharatpe was in deep trouble as there were allegations of financial mismanagement, toxic work culture and widening losses. Co-founder Ashneer Grover and his wife Madhuri had to leave the company following charges against them. As Grover was the face of the company, Sameer would have to quickly act on filling the void and reassuring investors. Because of the uncertainty, scores of employees had already quit or were looking for other jobs. Questions were also raised about the board’s inaction and lack of proactive measures. After a meteoric rise for three years, BharatPe was struggling to survive the whole episode and put its focus back on business. Complexity academic level The case is intended for MBA students in corporate governance, organizational behaviour, business ethics and strategic management areas. As the case reveals the impact of poor corporate governance, it can also be used for executive training purposes on corporate sustainability, governance and leadership with a special focus on Indian startups. Supplementary materials Teaching notes are available for educators only. Subject code CSS 11: Strategy.

Analysis of Corporate Strategic Management of China Southern Airlines

With the unstoppable trend of economic globalization and the development of China's socialist market economy into a period of high-quality development, market competition is more intense. In order to gain a firm foothold in the market competition or even gain an advantage, it is necessary to carry out strategic management within the enterprise according to its own actual situation, so as to promote the healthy development of the enterprise. Through the implementation of strategic management within the enterprise, it can also provide a decision-making role for its sustainable and healthy development, help managers formulate scientific business plans more systematically and efficiently, build a new management model, and ensure that enterprises have a place in the market competition. As one of the main bodies of China's economic lifeline, the air transport industry plays an irreplaceable role in promoting the development of the world economy, and investors pay more attention to the development prospects of related enterprises whose main business is the air transport industry. Taking China Southern Airlines, a leading enterprise in China's air transport industry, as an example, this paper evaluates and analyzes the competition situation of the industry in which Porter uses Porter's "Five Forces Model", points out the problems in the strategic management of the enterprise, and proposes corresponding measures.

The development of a road network flood risk detection model using optimised ensemble learning

Floods are natural phenomena that invade different parts of the globe annually, leaving severe adverse effects on the natural landscape, particularly in areas where humans practice large-scale urban development activities. Inadequate corporate strategic stormwater management or maintenance plans make the issue even worse. Therefore, efforts have been consolidated to confront flood hazards by incorporating precautious and proactive strategies toward better forecasting and preventing flood disasters or even mitigating the damage if it occurs. Further, there is inadequacy in incorporating computational intelligence techniques to detect flood susceptibility in road networks. This paper proposes a data-driven flood risk areas detection model incorporating various ensemble and generic machine learning techniques as well as autoML tools. A systematic and iterative approach is followed to examine different solutions to tackle the data balancing problem, including oversampling and undersampling techniques. Also, hyperparameter optimisation is undertaken using both grid search and genetic algorithms, and the models’ performance using each designated strategy is reported and assessed. The empirical results from the experiments indicate that the optimised ensembled Extremely Randomized Trees classifier proves an ability to perform well on the given dataset with an averaged ROC AUC value of 90% and outperforms several state-of-the-art generic, ensembled, and autoML classifiers in all evaluation measures. The proposed framework could be possibly generalised to other road networks in similar topographical and geological regional areas.

Implementation of Balanced Scorecard in Corporate Strategic Management

This study looks into how the Balanced Scorecard (BSC) was implemented in a West Javan manufacturing company and how it affected strategic management and organizational performance. A mixed-methods approach was used, integrating quantitative data obtained from surveys and performance measures with qualitative data from in-depth interviews and document analysis. The qualitative results draw attention to the intricate implementation process, which includes communication tactics, strategic goal-setting, and ongoing modification. Difficulties were noted, including resistance to change and worries about an increase in workload. Positive employee attitudes, greater alignment with company goals, and advancements in financial and operational measures are all indicated by the quantitative outcomes. The study offers insightful information to companies thinking about implementing BSC, highlighting the significance of open communication, staff involvement, and ongoing adaption for success.

Corporate social responsibility and green innovation: Based on the perspective of corporate strategic management

From the perspective of strategic management, this paper uses the data of Chinese listed companies to examine the relationship between strategic social responsibility and strategic technological innovation. The research results show that the social responsibility based on strategic management is significantly positively correlated with the innovation given to strategic management. At present, enterprises attach more importance to innovation strategically, but few attach importance to social responsibility strategically. Under the current background of high-quality development, Chinese enterprises should continue to pay attention to the input and output of technological innovation, on the other hand, they should recognize the importance of strategic social responsibility activities for the sustainable development of enterprises, and pay more attention to social responsibility activities strategically, so that social responsibility and green innovation can form the core competitiveness of enterprises and achieve long-term sustainable development of enterprises. Enterprise green technology innovation is an important strategic direction for enterprises to respond to new development concepts and achieve high-quality development, and also an important way to achieve the symbiotic and integrated development of enterprises and social environment.