Enterprise Decision Research Articles

Optimal production decision of hybrid power generation enterprises in multi-quota policy coupled markets

At present, China is adopting both Carbon Emission Trading (CET) and Tradable Green Certificate (TGC) markets to optimize the resource allocation of its power industry. To mitigate the impacts of the above dual markets, more and more power generation enterprises are adopting hybrid production mode, generating electricity from thermal and new energy units simultaneously. In these complex production and market conditions, enterprises are difficult to arrange their generation activities. This research describes the production decision process of hybrid power generation enterprises with different market positions, obtains their optimal yield, and then offers market equilibrium results. In addition, the consequences of enterprise collusion behaviors and government interventions are also measured. Numerical experiment results confirm the correctness of the production decision model and reveal the following facts: 1) CET and TGC markets effectively control the carbon emission level and promote the consumption of new energy, but magnify the failure of electricity market to a certain extent. 2) CET and TGC markets promote each other in function. The existence of one market can help the other to achieve the anticipated goal. 3) Enterprises first offset the impact of market condition changes by adjusting the share of new energy generation, and then digest the residual influence by adjusting the total power generation. 4) Enterprise collusion behaviors aggravate the welfare loss of electricity consumer and then lower the expected effects of CET and TGC markets.

The geography of acquisitions and greenfield investments: Firm heterogeneity and regional institutional conditions

AbstractThis paper investigates how institutional conditions at national and regional levels shape the decisions of Multinational Enterprises (MNEs) to invest abroad by means of either acquisitions or greenfield investments. The empirical analysis covers all foreign direct investment (FDI) projects in the European Union by the largest MNEs in the world to study alternative choices by the same firm and account for firm‐level characteristics in investment decisions. The empirical results show that—other things being equal—regions with stronger investment eco‐systems are more likely to attract acquisitions, while greenfield investments are more likely in regions with comparatively weaker systemic conditions. Howerver, the regional quality of institutions makes a fundamental difference to the nature of the investment projects attracted by regions: those with high quality of government can attract greenfield investments undertaken by the most productive MNEs. By improving their quality of government, local, and regional policy makers can attract higher quality greenfield investment projects to their constituencies, potentially breaking the vicious circle between low productivity areas and low productivity FDI.

Erratum: Strategic decision-making in small and medium enterprises in South Africa

No abstract available.

Local Gambling Culture and Enterprise Bribery: A Social Norms Theory Perspective

Abstract Based on social norms theory, we examine the impact of local gambling culture, an unexpected result of government-permitted lotteries, on enterprise bribery. We propose that local gambling cultures can promote active enterprise involvement in bribery activities by reinforcing the speculative psychology of enterprise decision-makers. In addition, we argue that local gambling culture is less likely to lead female (returnee) chairpersons to develop speculative psychology than male (nonreturnee) chairpersons. This, in turn, allows female (returnee) chairpersons to undermine the positive impact of local gambling culture on involvement in enterprise bribery. Based on 11 years of empirical data obtained from privately listed Chinese companies (including 2,637 listed companies with 15,036 firm-year data points), we obtain empirical evidence to support most of these views. This study is the first to explore the relationship between local gambling culture and enterprise bribery, and important insights are provided for shareholders and policy-makers to better curb enterprise bribery.

The Role of ChatGPT in Business Information Systems to Support Strategic Decision Making in Medium-Scale Enterprises

Medium-scale companies often operate in dynamic and competitive business environments. Faced with market changes and new opportunities, timely and accurate strategic decisions are key to maintaining and enhancing the competitiveness of the company. This research aims to examine the role of ChatGPT in business information systems to support strategic decision-making in medium-scale enterprises. The research method employed is a literature review with a qualitative approach and descriptive analysis. Descriptive analysis will be used to present information from systematically selected articles from Google Scholar within the timeframe of 2014-2024. The study results indicate that in the continuously evolving digital era, medium-scale companies increasingly rely on technology to address increasingly complex business challenges. One innovation playing a significant role in today's business landscape is the presence of ChatGPT. As an artificial intelligence model capable of understanding and generating text naturally, ChatGPT has a significant impact on business information systems and supports strategic decision-making in these companies.

Effect of Financial Literacy on Investment Decisions of Small Medium Enterprises in Rwanda: A Case of Coffee Shops in the City of Kigali

Effect of Financial Literacy on Investment Decisions of Small Medium Enterprises in Rwanda: A Case of Coffee Shops in the City of Kigali

The Impact of Green Mergers and Acquisitions on Corporate Environmental Performance: Evidence from China’s Heavy-Polluting Industries

This study examined the impact of green mergers and acquisitions (green M&As) on corporate environmental performance. Applying the Differences-in-Differences (DID) model to a sample of Chinese heavy-polluting-industry companies listed on the Shanghai and Shenzhen stock exchanges from 2010 to 2022, our study results show that the adoption of green M&As by the listed Chinese heavy polluters can lower corporate environmental capital expenditure and significantly improve corporate environmental performance. Meanwhile, the positive effects of green M&As on environmental performance are also found to be stronger for state-owned enterprises, young enterprises, and enterprises located in areas with low financial investments in energy efficiency and environmental protection, according to a heterogeneity study conducted for this paper. The analysis of mediating effects shows that the green M&A of heavily polluting firms will have a catalytic effect on the improvement of firms’ environmental performance by promoting their green technological innovation and, in turn, their environmental performance. Furthermore, the moderating effect analysis demonstrates that the quality of the firm’s internal controls and the CEO’s prior environmental experience are both factors that can support the beneficial impact of green M&A on the enhancement of the firm’s environmental performance. This paper enriches the theoretical research system of green M&A and green investment driving mechanisms, and at the same time provides empirical support and strategic reference for the green strategy decision of heavy-polluting enterprises.

基于全面预算管理的企业成本管控不足与改进研究

With the accelerated pace of national market economy reform, in the process of carrying out enterprise cost control work, it is necessary to comprehensively strengthen the profound grasp of the concept of comprehensive budget management, combine with the development requirements of enterprises under the new situation, and strengthen targeted analysis and research of cost control and budget indicators. Only in this way can we provide important reference for scientific decision-making of enterprises and promote the maximum development and utilization of enterprise resources. This study discusses the significance and specific measures of comprehensive budget management in cost control for enterprises. Firstly, it explains the concept of comprehensive budget management and its significance in cost control work. Then, based on the current problems in implementing comprehensive budget management in enterprises, relevant management improvement suggestions are proposed based on the current shortcomings.

Challenges Traditional Firms Encounter when Launching Online Sales Services: Bangladesh Viewpoint

Brick-and-Click organizations (Brick and Click Organizations) have emerged as a new type of business that aims to provide consumers with a seamless experience while purchasing products online. This study seeks to identify and understand the challenges that traditional businesses face when attempting to launch online sales services. The study employs a descriptive research design to address the research issues. Semi-structured interviews were conducted with key- decision-makers in such enterprises to get qualitative insights into the challenges faced by the businesses. This study's target population consists of Bangladeshi brick and click businesses. Online data were collected from a total of 1,036 respondents. The data were analyzed using descriptive statistics. The findings suggest that, businesses face a variety of online sales obstacles. Respondents from businesses indicate that their online sales difficulties were influenced by the product or service they sell and their interactions with customers, including their age, gender, and nature. Customers' distraction during online shopping is a common issue for click-only businesses. According to this study, however, brick- and-click retailers perceived it as a moderate challenge. The classic retail challenges of building personal relationships and providing a tactile product experience are not as daunting for brick and click businesses as they are for online-only businesses. By taking a proactive approach to the issues identified in this study, brick-and click businesses can not only overcome the immediate challenges but also position themselves favorably for future growth and success in the digital marketplace.

Business Intelligence and Decision-Making in Micro Small and Medium Enterprises in Africa

A strong business intelligence strategy can deliver accurate data and reporting capabilities faster to business operators; help them make better quicker business decisions. Holding this statement constant, the researchers investigated business intelligence and decision making in MSMEs in Africa. The study is qualitatively done with six participants who responded to an unstructured questionnaire employed to gather the needed relevant data. The collected data were meticulously transcribed and analyzed. After completion, the numerous data entry forms underwent internal validation to guarantee that the replies were accurately categorized before being harmonized and divided into two main categories- competitive advantage and operational efficiency. The Study found that business intelligence is pivotal for timely decision-making in firms especially in the MSMEs sector of the Nigeria economy as it is a strategy used by owner-managers in the organization to achieve operational efficiency and competitive advantage in a tense business environment like Nigeria. It is evident, therefore, that Africa especially Nigeria is not doing badly in the MSMEs sector of the economy and to sustain this stride, governments at all levels must factor in MSMEs and technology into their policy formulation and implications. It is only when that is done that Africa in general and Nigeria, in particular, can boost of not only registering its name in the global economic map but will have a viable economic base that will continue to attract foreign direct investment.

Deep Learning for Enterprise Decision-Making: A Comprehensive Study in Stock Market Analytics

Deep Learning for Enterprise Decision-Making: A Comprehensive Study in Stock Market Analytics

Study of data science in the managerial decision-making of enterprises

Big data has played an increasingly important role in global manufacturing, circulation, distribution, and consumption activities. The management mode based on data is remolding the management mode of enterprises. In the management control of enterprises, data science has become an important supporting tool for decision-making. It could help managers of enterprises to better understand and hold changes within and outside the environment of the enterprise so as to establish effective management strategies through data to excavate and discover correlations among mass data to predict management forms in the future. Firstly, this paper analyzes the difference between machine learning and deep learning from the technical level. Secondly, taking Zara for example to analyze how Zara takes advantage of data science to obtain competitive edge in the fashion industry. At last. This thesis has discussed advantages of data science in prediction and decision-making in the finance field through the method of literature review.

Marketing Strategy of NOVA Employment

This paper targets identifying challenges faced by the Australian non-profit organization NOVA in providing more suitable job opportunities for disabilities, focusing on communication barriers between NOVA and decision-makers in Small and Medium Enterprises (SMEs). It discusses how NOVA improve its competitiveness by providing unique services through market segmentation, targeting, differentiation, and positioning (STDP) strategies. This paper also emphasizes the current situation for disabilities of finding jobs and explores leveraging LinkedIn to achieve SMART goals, including showcasing services, expanding networks, and using LinkedIn tools to attract target audience.

Roadblocks in Integrating Lean Six Sigma and Industry 4.0 in Small and Medium Enterprises

To survive in highly competitive markets, industries focus on enhancing product quality and customer satisfaction. One specific iteration of this approach sees industries striving to optimize processes to improve product quality while generating minimum waste. This has encouraged companies to begin adopting management practices such as lean six sigma (LSS) and kaizen alongside their implementation of digital technologies of automating processing. This study aims to identify and analyze the barriers to integrating LSS practices with Industry 4.0 technologies for small and medium enterprises. Upon shortlisting fifteen barriers from an exhaustive literature review, the Grey-Decision-Making Trial and Evaluation Laboratory (DEMATEL) methodology is used to analyze those shortlisted barriers and establish causal relations between barriers and outcomes. The findings identify the lack of available infrastructure, lack of training on LSS, and lack of consultants in the field as the most dominant barriers in the cause group. Furthermore, the influence map of barriers produced demonstrates the relationship between cause-and-effect barriers. This study’s findings will ensure that small and medium enterprises formulate business strategies that mitigate the barriers to integrating LSS with Industry 4.0. This study offers insights into overcoming the identified challenges by proposing strategies to enhance product quality and the accuracy of enterprise decision-making, thereby facilitating a successful integration and fostering sustainable growth in SMEs.

DETERMINANTS OF CAPITAL STRUCTURE IN THE AGRICULTURAL SECTOR: EMPIRICAL EVIDENCE FROM LISTED COMPANIES

This study investigated the capital structure of 18 publicly traded agricultural companies over a 10-year period (2012-2022), specifically focusing on short-term debt to total liabilities (SHTDTL). Employing a dataset of 121 observations, the strategic financing decisions of these firms in the Republic of Srpska’s stock market were analyzed. The study examines the impact of various factors, including total debt to total equity (TDTC), tangible assets (TOA), company size (CS), current assets ratio (CR), current assets to total assets (CAA), return on equity (ROE), and return on assets (ROA), on capital structure choices. Results reveal that TOA, CAA, and ROE significantly positively influence the short-term debt ratio, while CS and ROA have a significant negative impact. This research sheds light on the financial decision-making of agricultural enterprises, offering insights that can inform their financing strategies and improve financial performance.

FACTORS INFLUENCING SMALL AND MEDIUM ENTERPRISES' DECISION TO APPLY FOR BANK LOANS: A QUANTITATIVE ANALYSIS IN VIETNAM

This study investigates the determinants influencing the decision of Small and Medium Enterprises (SMEs) to apply for bank loans. Drawing upon a theoretical framework encompassing human capital, firm attributes, business strategy, and information asymmetry, we develop a model to predict SMEs' propensity to seek bank financing. Employing a quantitative methodology in Vietnam, we utilize a hypothetical-deductive testing approach on primary data collected through questionnaires focusing on loan applications. Our findings reveal several significant factors influencing SMEs' inclination towards bank loans. Contrary to expectations, the business experience of a firm's owner exhibits no significant correlation with the likelihood of applying for a bank loan. However, variables such as the educational background of the firm's owner, firm size, collateral availability, and interest rates on loans exhibit negative associations with loan application propensity. Conversely, factors including the presence of comprehensive business plans and establishment of relationships with bankers during start-up phases demonstrate positive relationships with SMEs' inclination to apply for bank loans. This study contributes to the understanding of SMEs' financing decisions and provides valuable insights for financial institutions in designing tailored lending strategies to meet the diverse needs of SMEs.

The strategic effects of non-state shareholders’ governance: based on the perspective of product market performance of state-owned enterprises

ABSTRACT Making state-owned capital and state-owned enterprises stronger, better, and larger is the key driving force for comprehensively building a modern socialist country. This paper studies the impact of non-state shareholders’ governance on the product market performance of state-owned enterprises under the background of mixed ownership reform. Our results show that under the control of equity balances, non-state shareholders appointing directors to participate in governance can optimise the strategic decision-making of state-owned enterprises, promote product and service R&D innovation, and improve the operational efficiency of state-owned enterprises, thereby having a positive impact on the product market performance of state-owned enterprises. And this kind of governance effect is more obvious in state-owned enterprises in local control and competitive industries. Further research finds that the strategic effect of non-state shareholders’ governance not only has long-term sustained characteristics but also has a positive spillover impact on the capital market value and operating performance of state-owned enterprises.

Research on the Evolution Game of The Digital Transformation of Cold Chain Logistics Enterprises Under the Government's Participation

Whether cold chain logistics enterprises choose to carry out digital transformation is a process of evolutionary game. By analyzing the evolution and stability strategy in the process of digital transformation of cold chain logistics enterprises under the participation of the government, and using matlab for simulation, we discuss the influence of each parameter on the decision-making of cold chain logistics enterprises. The results show that the cost of digital transformation of cold chain logistics enterprises will hinder their transformation, and the increase coefficient of enterprise income, the increase of government subsidies and the reduction of tax rate will all promote the implementation of digital transformation of cold chain logistics enterprises. Finally, corresponding countermeasures are put forward to accelerate the digital transformation of cold chain logistics enterprises, so as to lay a solid foundation for the further economic development of the whole country.

A Literature Review on Pricing Decisions for Complementary Supply Chains Considering Social Preference Behavior

In practice, many enterprises have achieved better market results through the implementation and continuous optimization of the complementary products strategy. Although complementary products can bring higher value and utility to customers' consumption experience, thus affecting the production operation and sales price decisions of enterprises, the strategic choices of complementary supply chain members will be affected when facing the different social preference behaviors of the members in the complementary supply chain and the complex supply chain structure. Based on this, this paper considers the vertical altruistic preference of the manufacturer over the retailer and the horizontal altruistic preference of the manufacturer over the manufacturer of the complementary product under different altruistic preference dimensions for a two-level supply chain system consisting of two manufacturers producing complementary products and a common retailer, and analyzes the optimal pricing strategies of supply chain members under different altruistic preference levels, which is of great significance for the stable operation of the supply chain.

Exploring coevolution in the diffusion of green products between consumers and enterprises—An agent-based model of two-layer heterogeneous networks

China has implemented comprehensive low-carbon policies to promote the widespread adoption of environmentally friendly technologies. However, the complexity of interdependent consumer and enterprise decisions poses challenges to this process. In this study, we propose a new approach that combines complex networks and agent-based modelling (ABM) to develop a framework for the collaborative evolution of consumer and enterprise responses to green product promotion. We also innovatively include social factors in our model. This study investigates the impact of various factors on the adoption of green products, including consumer subsidies, government education and propaganda and carbon pricing. The results show that consumers and enterprises exhibit similar strategic evolutionary trends due to their interdependence and mutual influence. Consumer subsidies can effectively stimulate the widespread adoption of green products. Government education and propaganda activities in the initial stages of promotion can effectively drive the proliferation of green products at a relatively low cost. Carbon pricing plays a dual role in promoting the proliferation of green products. Lower carbon pricing has a minimal influence on the overall equilibrium proportions between traditional enterprises and green product enterprises. Higher carbon pricing can act as a catalyst for enterprise-level transformation, encouraging businesses to transition towards greener practices. Sensitivity analysis reveals that consumer subsidies remain the most critical factor in promoting green products, even in the presence of social factors. Demand-side policies can more effectively facilitate the promotion of green products.