Dimensions Of Firm Performance Research Articles

The mediating effect of firm familiarity between corporate social responsibility and reputation, trust, and customer satisfaction

AbstractWhen assessing Corporate Social Responsibility (CSR) and its impact on company performance there may be an informational asymmetry caused by differences in Familiarity with the firm assessed. This study uses participants' ratings of six large UK retailers to establish the direct relationships between the CSR components of Economic, Legal, Ethical, and Discretionary, and the firm performance dimensions of Reputation, Trust, and Customer Satisfaction, then explores whether Familiarity mediates the relationships between the CSR and the performance dimensions. The findings show CSR Economic, Legal, and Discretionary are associated with firm Reputation and Trust, but not Customer Satisfaction, and that CSR Ethical is associated with Reputation, Trust, and Customer Satisfaction. Familiarity acts as a mediator between CSR Economic, Legal and Discretionary, and Trust and Customer Satisfaction. Familiarity also mediates the relationship between CSR Discretionary and Reputation. The link between CSR Economic and Legal, and Customer Satisfaction only emerges in mediation analysis. Managerial implications suggest increasing familiarity is vital through open and continuous communication about CSR programs is essential to keep customers aware. Methodological implications propose reevaluating the methods used to measure (CSR), taking into consideration its' multi‐faceted nature and the diverse impacts that different aspects have on familiarity and performance measures.

Unraveling the Dynamics of Intellectual Capital, Firm Performance, and the Influential Moderators—BIG4 Auditors and Group Affiliation

The importance of intellectual capital (IC) in past decades unfolds several dimensions of firm performance (FP). Still, the contradictory and inconclusive relationship between IC and FP in the literature motivates the researchers to explore further and understand the empirical connection using both linear and curvilinear approaches. Using the fixed-effect panel regression models on a sample of 795 non-financial firms of India from the financial years 2004–2005 to 2020–2021, this study reveals that, undoubtedly, the IC enhances the FP up to a certain threshold, and with any marginal investment, IC reduces the FP by forming the inverted U-shaped curve. Interestingly, the presence of BIG4 auditors in Indian firms helps to increase the FP with the help of IC, even for the group-affiliated firms. Thus, this study aligns with both value creation and cost concern perspectives and implies that management and regulatory bodies may adopt a balanced approach while enhancing the FP through IC, as the result suggests that investment in IC will not endlessly improve the FP in the Indian context.

Re-examining the quality management and firm performance relationships: meta-analytical investigation on moderating effects of national culture differences

PurposeIn the last 3 decades, organization-wide programs and practices based on the Total Quality Management (TQM) philosophy have become central to continuous improvement (CI) strategy in both public and private enterprises. However, there is paradoxical evidence of TQM-firm performance linkage in non-Japanese contexts. This study presents a meta-analysis of empirical research on TQM-firm performance linkage and investigates the moderating influence of national cultural (NC) values on this relationship.Design/methodology/approachMeta-analytical procedures are adopted to analyse 364 effects accumulated from 135 independent samples across 31 nations, for 30,015 firm observations. Additionally, weighted least square (WLS) meta-regression is used to test the moderation effects of four NC dimensions based on the Global Leadership and Organizational Behavior Effectiveness (GLOBE) model.FindingsThe meta-analysis results reveal that the strengths of the association varied across five soft and hard TQM dimensions and three firm performance dimensions Meta-regression indicate that the effectiveness of the TQM program is high in cultures which reward collectivist behaviours, equity of power distribution and avoidance of ambiguity in rules/structures.Originality/valueThe study contributes to international operational management theory on cultural influences on the effectiveness of operations strategies and decisions.

The Impact of Customer Intensity in Firm Performance: Tech Capabilities as A Moderating Variable

Entrepreneurial marketing “EM” is considered to be suitable for small businesses. However, since the perspective has shifted from product and sales to a market orientation, interest in the creation of customer value has grown and has been the subject of intense discussion. Thus, in this study, we aim to investigate and describe the significant relationship between Customer intensity “CI” and firm performance “FP” in SMEs operating in Khartoum-Sudan, by utilizing technological capabilities “TCPs” as a moderating variable. The resource-based view “RBV” provides the theoretical foundation for this study regarding the effect of CI on FP among TCPs. Regarding the study objective, we assumed the following hypothesis: H1: Customer intensity has a significant relationship with firm performance dimensions: {profitability, sustainability, and customer satisfaction}. H2: We assume that TCPs can positively moderate the relationship between CI and FP. Accordingly, this study is quantitative. Reliable with the purpose of this study. Furthermore, our study relied on the “Positivism philosophy”, a deductive approach to theory development. Therefore, overall, 255 responses were received from the community of SMEs in Khartoum. To analyze the data firstly the following principal component analysis PCA, Correlation, and Rotation matrix were utilized to test the appropriateness of the study structure “the pre-model” and check the validity of the questionnaire items. secondly, we used structural equation modeling (SEM) Path analysis to analyze and examine the significant relationships between all variables. The analysis revealed that customer intensity has a positive effect on profitability (p = 0.000), Customer intensity has also a positive effect on customer satisfaction (p = 0.001). Unlike, customer intensity has negative effects on sustainability (p = 0.216). Finally, the results show that technological capabilities positively moderate the relationship between Customer intensity and profitability (p = 0.000), sustainability (p = 0.007), and customer satisfaction (p = 0.000). Anyhow, these results confirmed the partial support for the first hypothesis and full support for the second hypothesis.

DEBT STRUCTURE AND FIRM PERFORMANCE IN VIETNAMESE STOCK MARKET

This study investigates the relationship between debt structure and firm performance among a comprehensive sample of 546 Vietnamese listed firms over the period 2010 to 2020. The purpose of the research carried out in the article is to establish the relationship between the debt structure and the results of the firm's activities. Employing a fixed-effect method, we analyze the intricate interplay between debt composition and various dimensions of firm performance within the unique economic and institutional context of Vietnam. Our findings reveal a significant and negative association between debt structure and firm performance, shedding light on the intricate dynamics that shape corporate financial decisions and outcomes in the Vietnamese market. Specifically, our analysis indicates that firms with a higher proportion of debt experience decreased levels of performance across multiple performance metrics, including profitability, growth, and operational efficiency. This negative relationship between debt structure and firm performance underscores the importance of optimal capital structure decisions and strategic financial management for Vietnamese listed firms. Our study contributes to the existing literature by providing empirical evidence that extends our understanding of the nuanced determinants of firm performance within emerging market economies. Moving forward, further research could delve deeper into the underlying mechanisms that drive the observed negative relationship. Additionally, exploring potential moderating factors, such as industry-specific characteristics or changes in economic conditions, could provide a more nuanced perspective on the interplay between debt structure and firm performance. Ultimately, this study contributes to the ongoing dialogue on optimal capital structure decisions and their ramifications for the long-term success and sustainability of Vietnamese listed firms, guiding them toward more informed and effective financial strategies.

Drivers of SME Resilience in Southeast Asia during COVID-19

Defining and measuring resilience has become a subject of interest in a world characterized by crises. Calls for empirical work on the microeconomic drivers of the resilience of small and medium-sized enterprises (SMEs) have drawn attention to the need for an enterprise resilience index. This paper fills this gap by proposing a multi-dimensional framework for firm resilience. Factor analysis of firm level data from surveys conducted in Cambodia and the Philippines before and during the COVID-19 crisis identifies a set of firm-level factors that drove successful SME performance during the pandemic. Structural Equation Modelling combines these factors into a firm level resilience index and confirms that the index is positively correlated with commonly used proxies of firm performance during crises, such as retaining employees. The insights from the analysis indicate that investment in certain dimensions of firm performance in good times can drive their resilience during crises.

The effectiveness of the implementation of ISO 9001 on SMEs performance: the case of an emerging economy

PurposeThe study seeks to examine the effectiveness of implementing the ISO 9001 quality management system (QMS) on small and medium enterprises (SMEs) performance in Saudi Arabia. It explores ISO 9001 usefulness through the dimensions of continuous improvement, customer satisfaction focus and prevention of nonconformities. The study investigates two dimensions of firm performance's: operational performance and product/service quality.Design/methodology/approachThe study employs a quantitative method. A simple random sampling technique is used to collect study samples. A self-administered questionnaire is employed as the data collection tool. The study was based on 263 samples from SMEs in Saudi Arabia. Statistical analysis was carried out using SPSS/AMOS.FindingsPrevention of nonconformities, customer satisfaction focus and continues improvement had a positive significant correlation with operational performance and product/service quality. Moreover, the ISO 9001 QMS effectiveness construct showed a helpful and important correlation with the performance of the company.Originality/valueThe study offers empirical evidence to clarify ambiguous findings from past studies, as well as expounds knowledge on the effect of ISO 9001 on SMEs' performance through the lenses of operational performance and quality/service quality.

Knowledge management: Implications to SMEs performance in Nigeria

Purpose: The purpose of this research is to determine the effect of knowledge management on firm’s performance in selected manufacturing small and medium enterprises (SMEs) in Southeast Nigeria.
 Design/Methodology/Approach: The data is gathered from different manufacturing SMEs in Southeast Nigeria for this study. The sample size was 196 gathered from the population size of 800 selected manufacturing SMEs. The convenience sampling is used for the study. Descriptive statistics (frequency tables and percentages) was adopted for data presentation, however, Pearson correlation co-efficient along with regression analysis was applied for hypotheses testing.
 Results: The results exposed that there is an encouraging positive significant association between knowledge management along with SMEs performance. The outcome expressed that there is an encouraging significant relationship between the knowledge management dimensions (knowledge sharing, knowledge acquisition in addition to knowledge protection) and firm performance dimensions (market share, sales growth as well as customer satisfaction).
 Conclusion: The study concluded that SMEs which acquire new knowledge tend to satisfy their customers more than those with outdated knowledge, and those who share knowledge with employees tend to gain larger market share than those who do not share with employees.
 Contribution to Literature: This study contributes to the existing literature in two ways: first, this utilized the knowledge management variables which were not utilized in previous studies. Second, this study decomposed firm performance by using three different indicators.

Online Channel Sales Premia in Times of COVID-19: First Evidence from Germany

A presence on the web tends to be important for firms. Empirical studies show that firms with a better performance across various dimensions, and firms that are more internationally active, tend to have a website. Furthermore, a website helped firms to survive during the COVID-19 pandemic. An open question that is not discussed in the literature is how the use of online channels for sales is related to various dimensions of firm performance. This study contributes to the literature by using a unique recently released set of firm level data from Germany to investigate for the first time the links between online channels sales and firm characteristics. In a robustness check, the empirical investigation was replicated using strictly comparable firm level data from nine European countries, namely Austria, Belgium, Denmark, Finland, France, Ireland, Luxembourg, the Netherlands, and Sweden.

Do shareholders really matter for firm performance? Evidence from the ownership characteristics of Italian listed companies

This paper studies the impact of the features of the shareholder base on the performance of a large sample of Italian listed firms between 2007 and 2019, both within and across firms. We expand the empirical evidence on the relation between shareholder type and different dimensions of firm performance by dividing shareholders into six categories, and further differentiating between domestic and foreign investors. We provide extensive evidence on the relation between firm performance and different types of shareholders, showing how diverse performance metrics are correlated with the voting rights of specific types of shareholders. Consistent with previous studies, the picture that emerges from our analysis shows that the ownership structure of Italian listed companies is characterized by a high degree of concentration. In this context, we find that ownership concentration or the presence of a controlling shareholder is in general associated with better performance. Moreover, a positive relation exists between diverse firm performance metrics and the voting rights of family shareholders, founders and foreign investors, while government ownership is detrimental in the short-term.

Does firm diversity-enhancement program bundle matter? Firm performance dimensions, employee ownership program, and environmental technological opportunity

Research on diversity programs provides inconclusive knowledge regarding their effect on firm performance. In this study, we build on the Ability-Motivation-Opportunity framework to examine the relationship between firm diversity-enhancement program bundle and firm performance. Based on a dataset covering 2,794 U.S. publicly listed firms over 15 years, we find support for our hypothesis that firm diversity-enhancement program bundle results in a greater pay-off when it is coupled with a stronger employee ownership program at the firm level or a greater technological opportunity at the industry level. Furthermore, the pay-off is greatest when a firm’s diversity-enhancement program bundle, its employee ownership program, and its environmental technological opportunity are all high. Overall, our study provides nuanced theoretical and empirical accounts regarding a firm’s integrated diversity-enhancement efforts. It also provides novel managerial implications regarding when firms can reap the most benefit from their integrated diversity-enhancement efforts.

Board Information Technology Governance Mechanisms and Firm Performance among Iraqi Medium-Sized Enterprises: Do IT Capabilities Matter?

This paper aims to investigate the perceptions of Iraqi medium-sized enterprises’ board members on how board information technology governance mechanisms affect their companies’ performance with the help of IT capabilities as a mediator. The study is based on a survey of 223 board members using a stratified random sampling technique. The Structural Equation Model (SEM) method results show that board IT governance structure and board IT governance relational have a significant direct and indirect positive relationship with firm performance through IT capabilities. Contrariwise, IT capabilities do not interfere with the relationship between board IT governance processes mechanisms and firm performance. Our study contributes to the IT business literature by addressing new relationships and providing empirical evidence that explains the inconsistent and mixed results of prior studies. Moreover, it extends and complements these prior studies by considering three board IT governance mechanisms, four IT capabilities, and merges the two dimensions of firm performance in a developing country that offers different institutional settings and litigation environment. The study findings offer notable implications for business practitioners and industry leaders to enhance the IT environment and maximize their corporate outcomes. In addition, these findings draw the attention of the board members, management, and corporate general assemblies to recognize the importance of intensifying the investment in IT capabilities to gain superior firm performance.

Do sustainability innovation and firm competitiveness help improve firm performance? Evidence from the SME sector in vietnam

This study unfolds the nexus between sustainability innovation, firm performance of small- and medium-sized enterprises (SMEs) by exploring the mediating role of firm competitiveness in the context of an emerging market. This study adopts a systematic literature review approach which results in arguing that this relationship is not explored in-depth in current literature. This is especially more critical for emerging economies as current literature shows a lack of empirical research in this research topic. A well-structured questionnaire was administrated for data collection. A total of 435 valid responses from top executives, managers, and experts were received and used for data analysis. Structural equation modeling (SEM) was used to investigate the relationships between constructs and latent variables. Our findings reveal that there is a significant and positive relationship among sustainability innovation and firm competitiveness. Firm competitiveness has a positive and significant relationship with financial, environmental, and operational performance. Moreover, sustainability innovation had an indirect positive and significant effect on financial performance. The statistical results indicate that the indirect effects are all significant (sig. < 0.05) and the order of these indirect effects is consistent with those of direct effects of firm competitiveness on firm performance dimensions. Stakeholder theory is applied to check how firm competitiveness helps improve the performance of SMEs. To the best of our knowledge this study is the first that explores the mediating role of firm competitiveness between sustainability innovation and SMEs’ performance. Based on the context of the influence of the COVID-19 pandemic, this study presents implications for entrepreneurs and top management with respect to strategic perspectives to drive their businesses in a sustainable direction.

Ownership concentration among entrepreneurial firms: The growth-control trade-off

There is much variation in ownership concentration among entrepreneurial firms cross-sectionally and over time. Growth potential, risk-sharing, and demand for external capital seem to be the main reasons behind the choice of low ownership concentration, and firms with diluted ownership show strong growth. After controlling for the firm fixed effects or the sample selection bias, we do not find any evidence suggesting a link between ownership concentration and other dimensions of firm performance. Therefore, the trade-off between growth aspiration and retention of dominant control of the firms may be critical in ownership structure decisions among entrepreneurial firms.

Late-stage venture capital and firm performance: evidence from small and medium-sized enterprises in China

ABSTRACT Where venture capitalists have traditionally focused on early-stage innovative firms, increasingly venture capitalists are investing in late-stage firms, especially in Asia. The performance consequences of this novel phenomenon of late-stage venture capital remain unexplored. This paper provides novel insight into this phenomenon by examining the impact of late-stage venture capital on two key dimensions of firm performance in the venture capital literature: innovation and financial performance. We link VC investment events to financial indicators of Chinese listed firms to account for the timing of VC entry and identify the firm performance impacts. Utilizing a matching and difference-in-differences procedure to account for selection biases, our results show that late-stage venture capital improves investee firms’ financial performance but reduces their innovation performance. Our findings advance understanding about the emergence of late-stage venture capital and its performance consequences, especially in emerging economies. Our work has implications for entrepreneurs and policymakers.

Corporate governance mechanisms and firm performance: empirical evidence from medium and large-scale manufacturing firms in Ethiopia

PurposeThis study aims to examine the impact of corporate governance mechanisms on financial and non-financial aspects of firm performance in medium and large-scale manufacturing firms in Ethiopia.Design/methodology/approachThe cross-sectional survey and simple random sampling methods are adopted while the data collection is through a questionnaire that covers five corporate governance indicators consisting of the board independence, board effectiveness, shareholders role, internal audit effectiveness (IAE) and disclosure and transparency. The dimensions of firm performance were indicated by six firm performance indicators of customer and market (CM), internal process (IP), differentiation, efficiency, competitive position (CP) and financial (organizational) performance (OP). The covariance-based structural equation modeling (SEM) with the maximum likelihood parameter estimation technique was used to perform the data analysis.FindingsA significant positive relationship has been found between the independence of the board of directors and firm performance (especially with respect to differentiation, OP, CP and IP). However, the board of directors’ effectiveness showed an unexpected result, significant negative effect on differentiation, OP, CP, CM and IP. The study also indicates a positive significant effect of disclosure and transparency on differentiation, CP and OP. However, the coefficient on the CM construct of firm performance is negative and significant. A significant negative linkage has also been revealed between IAE and two constructs of performance: differentiation and CP. One of the important findings of the study is that shareholders’ role has a significant positive impact on both board characteristics (board independence and board effectiveness) and firm performance (differentiation, efficiency, CP and OP).Research limitations/implicationsThe study has two potential limitations. First, in comparison to prior studies, this study is based on a small sample size which limits the generalizability of the findings. Different scholars have suggested (Anderson and Gerbing, 1984, 1988; Iacobucci, 2010; Hair et al., 2019) that SEM requires a large sample size to test the hypothetical model. Thus, future research can further investigate the link between corporate governance and firm performance by using a larger sample size to achieve more reliable results. Second, the current study used a quantitative approach only, but prior studies (e.g. Ahrens and Khalifa, 2013) suggest a qualitative approach to more investigate and reach a very conclusive idea on corporate governance. The approach is currently receiving growing popularity in the literature.Practical implicationsThe findings of the study would have measurable implications for different stakeholders who are in the position of supporting or regulating manufacturing firms. First, the findings give a clue about how a firm can design a good corporate governance system. Second, managers of the firm can get a hint or tip from the result that might help as input for designing strategies. Finally, it might help policymakers to understand and think about the very crucial role of active participation of shareholders in curtailing/reducing agency cost and enhancing firm performance apart from (beyond) the conventional corporate governance mechanisms (board of directors, internal audit, disclosure and transparency).Originality/valueThis study seeks to extend and contribute to the current literature in several ways. First, in contrast to previous studies, this study used both financial and non-financial performance measures and thereby providing new empirical insights relating to the non-financial performance measures. Second, this study provides a new result that the role of shareholders has a direct significant positive impact on board characteristics (i.e. board independence and board effectiveness) and firm performance. Finally, this study has come with a new insight that disclosure and transparency is a major driver of firm performance.

Green Supply Chain Management and Firm Performance: Evidence from Ghana’s Food Production and Processing Industry

Based on the Natural Resource Based View (NRBV), this study examines the relationship between Green Supply Chain Management practices and Firm performance in response to calls for empirical evidence from developing country contexts, and the need to consider the Triple Bottom Line approach to sustainability performance measurement. The study is conducted among Food production and processing firms in Ghana. A structured questionnaire was administered to a Senior Manager in each of the respective organizations. Based on data collected from 94 firms, this study uses OLS regression to examine the relationship between GSCM implantation and operational, environmental, social, and economic firm performance. The results indicate a positive relationship between GSCM implementation and all four firm performance dimensions. This suggests that it is in the best interest of managers to deploy resources towards the implementation of green initiatives, as there are potential gains to be made in the long run.

Does the sector matter? An analysis of high-growth firms and industry growth rates

PurposeThis paper aims to analyze the effect of industry growth rates on the characteristics of high-growth firms (HGFs) that are active in a particular industry. By making a distinction between HGFs active in stable and declining industries and HGFs active in growing and high-growing industries, it is analyzed if the main dimensions of firm performance are significantly different for HGFs active in one of these different industry types. Gaining more insight into this industry aspect of high firm growth is important as governmental measures towards HGFs may be more effective if they have a specific sectoral focus.Design/methodology/approachA subset of 740 Belgian HGFs was analyzed. Data were gathered from the Belfirst database. HGFs were classified within their corresponding industry type: a declining industry (negative growth), a stable industry (0 −5% growth), a growing industry (5 −10% growth) and a high-growth industry (&gt;10% growth). Four dimensions of structural firm performance that are expected to correlate with high growth were taken into consideration: productivity (value added per FTE), profitability (ROA), innovativeness (intangible assets) and financial health (solvency and liquidity).Tukey's range tests in conjunction with post-hoc analysis of variance (ANOVA) tests were carried out to test for significant differences in all the mentioned variables for the HGFs in the four different industry types.FindingsResults show that HGFs active in a stable industry are not significantly more profitable or innovative than HGFs active in a growth industry. However, significant differences could be encountered when it comes to the other two dimensions of structural firm performance: productivity and financial health. It is shown that HGFs active in declining and stable industries are significantly more productive than HGFs active in growth industries and high-growth industries. Also, HGFs active in declining and stable industries have significantly higher liquidity ratios than firms active in growth industries, pointing towards a better financial health for HGFs in nongrowing industries.Research limitations/implicationsThe results confirm the conceptual logic that the differences between resource-based view (RBV) and industrial organization (IO) propositions will have an impact on the drivers of firm performance and high business growth. Every future study that focuses on the growth determinants of HGFs should be aware that considering the subset of HGFs as one homogenous group may be suboptimal. It is likely that the growth determinants of both HGF types will indeed be fundamentally different.Originality/valueUntil now, all studies on HGFs have considered the subset of HGFs as a whole. This paper tried to disentangle the subset based on the growth rate of the industry in which HGFs are mainly active. In this proposition, a reason for the lack of knowledge about characteristics of HGFs may – at least partially – be found in the fact that industry membership plays an important role in determining the characteristics of a high-growth firm. Future studies focusing on high-growth determinants may benefit from systematically taking the industry growth rates into account, with the knowledge that the propositions of two different theories – IO and RBV – may be the fundamental drivers of a firm's high-growth rates.

Interrelated effects of technological and non-technological innovation on firm performance in EM – A mediation analysis of Peruvian manufacturing firms

PurposeFirm innovative performance in emerging markets must take into account the peculiarities of their competitive environment. Research on the effect of innovation on firm performance focuses mainly on high-tech firms in developed countries. This study proposes a model that empirically examines how technological and non-technological innovation influence Peruvian manufacturing firms' performance.Design/methodology/approachUsing the resource-based view, a model is proposed that allows the mediation effects of technological innovation and non-technological innovation on firm performance among low and medium-low technological intensity manufacturing firms to be analyzed. The study uses structural equation modeling and mediation analysis with data from 503 Peruvian firms researched in the 2012 National Survey of Innovation.FindingsThe model's validation shows that the integrated perspective is relevant for emerging markets like Peru. Moreover, the results confirm that technological and non-technological innovation and their interrelationship are important for understanding the performance dimensions of Peruvian manufacturing firms.Originality/valueThis paper contributes to the literature on innovation in Latin American economies, proposing and validating a model that combines the mediation effects of technological and non-technological innovation to explain the relevant dimensions of firm performance in emerging markets.

Does national culture matter? Understanding the impact of supply chain integration in multiple countries

PurposeWith increasing globalization, supply chain management in various national cultures requires understanding. This study aims to examine the moderating effects of individualistic and uncertainty avoidance cultures on the relationship between supply chain integration (SCI) and different dimensions of firm performance (i.e. flexibility and financial).Design/methodology/approachThis study collected 124 pairwise survey data from supply chain and senior managers of retail firms in 35 countries. Hofstede’s national culture index was used to examine the moderating effects. Structural equation modeling and regression analysis were used to test the model.FindingsResults corroborate that in a higher uncertainty avoidance culture, the positive influence of SCI on flexibility performance is stronger, but that on financial performance is weaker. By contrast, individualism reduces the positive influence of SCI on financial performance, but does not moderate that on flexibility performance.Originality/valueThis paper proposes a contingent model for SCI-performance relationships by integrating the relational view and the national cultural perspective. Critical national cultural dimensions moderate the effects of SCI on flexibility and financial performance. Therefore, operational managers should design differential SCI strategies in various cultural settings.