External Business Environment Research Articles

The Effect of Business Environment on the Corporate Performance Through Business Strategies in the Construction Service Industry in DKI Jakarta, Indonesia

This research on the construction service industry in DKI Jakarta aims to: 1) analyze the influence of the external and internal business environment on corporate performance, 2) Analyze the influence of the external and internal business environment on business strategy, and 3) Analyze the influence of business strategy on the corporate performance. This research uses a quantitative research approach. The number of samples was 370 top management/heads of construction service companies in DKI Jakarta. Data were collected through questionnaire and interview instruments. Data analysis was performed by SEM With Partial Least Square (PLS). The analysis shows that the external and the internal environment have a significant influence on business strategy and performance. The business strategy also influences the performance of construction service companies in DKI Jakarta. These findings suggest that construction service companies are always on the lookout for turmoil that occur in the external environment, so that they can be major consideration for companies in setting their strategies both in the short and in the long term.

Factors Influencing on Entrepreneurial Behavior of Street Vendors (A Case in Pekanbaru City, Riau Province)

One of the informal sectors that happening in urban areas is ‘pedagang kaki lima' (PKL) known for its contribution to reduce unemployment despite their existence are often raise urban planning problems. However, PKL should be given the opportunities by the government to increase their economic empowerment and competitiveness. The purpose of this study is to analyze personal characteristics and business profiles; family environment, internal and external environment of the business; and its influence on PKL entrepreneurial behavior. The research was conducted in Pekanbaru from March to December 2019. Respondents of the study are PKL street food totaling 131 people. The data is analyzed by using the Partial Least Square (PLS) method. The results showed that the average personal characteristics of PKL aged 36.93 years, level of education equivalent to high school with 5.27 years of business experience and average net income per day is Rp. 442,404 which 52.7 percent do have any business license. The family environment and the internal business environment are considered and support PKL. The external business environment, especially government support / policies (capital support, technology and empowerment) are still considered not good by PKL. Factors that have a significant influence on entrepreneurial behavior are: formal education factors, parents education method, family support, business financial analysis skills and government support / policy (access to business capital and empowerment).

The Development of Organizational and Management Structures in Small-scale and Mid-scale Entrepreneurship in the Czech Republic

The business architecture, whose integral part is an organizational and management company structure, will be playing more important role in the future while pursuing its business goals. As a matter of fact, the organization and management of business processes that constitute its organizational and management structure demonstrate significant changes as a result of the changeable business environment. These issues are discussed in this article. The testing data set 381 SMEs (from which 114 were micro-enterprises, 141 small-scaled enterprises and 126 mid-scale enterprises, including without limitations enterprises from South Bohemian Region) analyzed applied organizational and management structures in separate scale categories of enterprises including degrees and stages of management. Pearson’s chi-squared test was used as a statistical method; p-value was employed to test zero and alternative hypotheses. SMEs manifested a transition from linear and line-staff structures to matrix and functional ones; mid-scale enterprises used strategic business units. Microenterprises and partly small-scale enterprises employed degree of management, mid-scale 3 and more degrees of management. The conclusion of the article specifies the estimated development of the organizational architecture in SMEs in the Czech Republic in relation to expected changes in the external business environment in particular.

A conceptual study: organisation culture as an antecedent to employee engagement

The concept of organisation culture and employee engagement has always been an area of interest for researchers. Employee engagement covers almost all parts of human resource management areas ever know. To have better outcomes commitment, organisational effectiveness and sustainable competitiveness, engaged employees act as drivers of organisation success. Intense pressure, cut-throat competition, changes in the external and internal business environment, competitors can emulate the performance of the service provided but they cannot replicate the dedication, sincerity and absorption of their employees at the place of work. A substantial literature survey shows that there is a relationship between organisational culture and employee engagement. In this paper, we have focused on this gap in the literature and have tried to establish a relationship between organisational culture and employee engagement. The emphasis of this research is to conjoint organisation culture and its components such as values, beliefs, ethics, communication with employee engagement.

МАРКЕТИНГОВІ ІНФОРМАЦІЙНІ СИСТЕМИ ПІДПРИЄМСТВ В УМОВАХ ЗРОСТАННЯ ПІДПРИЄМНИЦЬКИХ РИЗИКІВ

The article is devoted to the establishment of essential transformations of the concept of marketing information system. The instability of the external business environment, due to political and economic fluctuations in our country, provokes an increase in the level of business risks. The main goal of this article is to reveal the modern essence of marketing information systems and identify the impact on their structure of modern business risks. At the same time, the development of modern technologies and information systems creates the preconditions for the development of new forms of organization of the enterprise and sales. Thus, today, specialists in the field of SMM (Social Media Marketing) are among the most in demand in the labor market. The development of business communication systems creates both new prospects for sales and product promotion, and new risks for business activities and calculations. Accordingly, there is a need to study the transformations of existing and the formation of new marketing information systems in the face of growing business risks. The author analyzes its possible structural elements and offers their own vision. The list of structural elements of the marketing information system is supplemented by components to counteract possible business risks that will arise in the process of its operation. Thus, the main risk in the article is substantiated information risk, which is due to the imperfection of the direct functioning of the marketing information system of the enterprise. One of the tools to increase the efficiency of marketing information systems and, at the same time, counteract possible risks, is proposed to integrate it into the and systems in terms of collecting external information and analytical processing of all data during marketing research. Promising technologies for the organization of modern marketing information systems are characterized by significant efficiency limitations and risks, which are largely due to shortcomings at the level of special methodology using technologies of the format Data Mining and Big Data.

The Impact of External Business Environment on Corporate Social Responsibility: Theoretical Implications and Empirical Evidence

The literature evidently demonstrates the CEO-centric effect upon firms’ Corporate Social Responsibility (CSR) engagements. Given the CEO’s strong discretionary power over CSR decisions and self-serving motive divergent from shareholder value maximization, it would be interesting to investigate the strategic decisions made by the CEO on CSR policy facing varied dimensions of market conditions. From an agency theory perspective, the paper develops a theoretical framework to model and clarify the relationships between firm’s CSR provisions and the three dimensions of external market conditions: market complexity, munificence, and dynamism. Furthermore, I empirically measure the market dimensions and test the propositions implied by the theoretical work. Consistent with the model implications, I found CEOs tend to invest more in CSR in a competitive market, less in CSR when the market is munificent and more in CSR when the market is dynamic and unpredictable. The results are consistent with the extant literature and shed light on the value relevancy of CSR activities.

Internationalisation in entrepreneurial ecosystem and innovation system literatures: a systematic review

Entrepreneurial ecosystem (EE) has emerged an important new concept within the entrepreneurship and innovation research literatures. It emphasises the supporting role of the local and regional environment for the entrepreneur and has a specific focus on high growth firms (HGFs). EE research has similarities with other literature streams specifically the innovation systems (IS) literature but the relationship between them is ambiguous, which hampers the theory development. Furthermore, it is unclear how internationalisation is approached by the IS and the EE research. To fill this gap, the current paper offers a systematic literature review (SLR) of the similarities and differences between the IS and the EE concepts in the specific context of HGFs' internationalisation. We analyse 67 relevant peer-reviewed journal articles. The findings suggest that, on one hand, the EE has some similarities to IS due to their emphasis on the importance of the external business environment. On the other hand, EE is strongly centred on individual entrepreneurs and high growth ventures giving less importance to the government's role, which has been the case in IS literature. We also found that the internationalisation of HGFs to be an under-researched area of research in this domain, which requires further empirical analysis.

Safety Precuations and Tools Examination for Employees of Power Plant

Employee welfare and safety has been seen as one of an organization's key performance measures. Changes in employees ' working life and changes in both the internal and external business environment have brought tremendous transformation in organizational behaviour. Globalization, innovation and other aspects of work-design compelled companies to focus on the safety and welfare of workers.

Strategic Planning for IS/IT of XYZ Internet Service Provider Using Ward and Peppard Method

PT. XYZ is one of the leading Internet service providers in East Java, Bali and Lombok. As an IT company that has the motto Quality Internet Service Provider, of course the role of IT is a significant thing, because with the IT all processes that are initially manual can turn out to be well automated. However, in practice the demand for the development of IS / IT systems from various divisions tends to be only concerned with the interests of the division itself. So that in the end the system produced by the IT Apps division to help a division is not in line with the interests of other divisions. This happens because the IT division does not have a long-term work program plan for developing systems that are adapted to the PT. XYZ business goals and become a top priority in the development of the IS / IT system. In the preparation of the IS / IT strategi c planning framework using the Ward and Peppard Model approach and in evaluating the elaboration of information systems strategic planning and business strategies using Balanced Scorecard and Critical Success Factors. Several analytical methods such as Value Chain Analysis, SWOT Analysis, PEST Analysis and Five Force Model Analysis are used to analyze internal and external business environments. Strategic Grid McFarlan Analysis is used to map application portfolios The result of this research is a blueprint of strategic plan IS/IT in PT. XYZ. Wich included recommendation for improvements in the network structure. While at the SI system is recommended for development id advanced ERP which affect the portofolio application to support the achievement of the vision and mission of the company.

Strategic Planning of Information System/Infromation Technology (Case Study: Gresik Regency Government Environment)

Using IS (Information System)/IT (Information technology) has become the organization's need to carry out its operational activities and services. The government has also used IS/IT in carrying out its activities and services considering the benefits that are get, efficient, effective, and transparency to support good and clean governance. Gresik Regency does not yet have a master plan for implementing IS/IT so that what it needs cannot be managed. Gresik Regency needs a planned information technology-based system that can produce correct and prompt information. purpose of this study was to identify data and information needs in policy formulation and to develop an information system strategic plan in Gresik Regency. Basic concept used in compiling this research is the method proposed by John Ward and Joe Peppard. stages carried out start from analyzing the internal and external business environment of the organization, analyzing internal and external organization IS/IT, followed by identifying strategies and designing future portfolios. Method of analysis carried out uses several methods, among others, SWOT, Critical Success Factors, Value Chain, PEST, and Mc Farlan Strategic Grid. The results of this study is a blueprint of strategic planning that refers to the organization's business plan based on data obtained through the analytical methods used. It will integrate the information produced for administrative and public service needs. organization's strategic objectives in the form of superior prime service will be achieved by implementing an optimal improvement of data processing functions with the support of Information Technology. preparation of IS / IT strategic planning according to the resulting portfolio is expecting to be using in future strategic planning so it can give priority to the activities needed to get optimal results and based on its contribution to the objectives to be achieving

Understanding the antecedents of knowledge sharing behaviour and its relationship to team effectiveness and individual learning

Due to the competitive and rapidly changing nature of the external business environment, university students must acquire the ability to cooperate, share knowledge, and enhance team effectiveness and learning in the workplaces of the future. Consequently, the design of business courses in higher education merits further discussion. Based on the notions of team-based learning and flipped classrooms, we proposed a business course model that consisted of three main phases: before-class, in-class, and after-class online course activities. After implementing the course models in two business courses at two public universities in Taiwan, a survey based on social learning and social exchange theories was distributed. The data collected from 218 undergraduate business students were analysed. The findings reveal that value in team members’ contributions is positively associated with team trust and each has a significant impact on knowledge sharing and team effectiveness. Knowledge sharing played a key role in this learning context and was a significant mediator between perceptions of value in team members’ contributions and team effectiveness, as well as between team trust and team effectiveness. In addition, team effectiveness was a benefit to individual learning in these classes.

Competitive intelligence as a factor of warnings crime

In the article the subject of the research are the methods of competitive intelligence; the conditions of companies; the conditions of the competitive environment of companies. Actual is the theoretical analysis of the concept and objectives of competitive intelligence. This activity becomes a powerful tool for market research. Competitive intelligence is currently a rapidly developing discipline (profession), which arose at the intersection of economics, law and special disciplines. Competitiveness and efficiency of company is a key factor. This factor determines the level of living of citizens, the public good. Competition is a necessary condition and the most important way of effective business.
 The aim of the research is to develop terminology, formulation of features and essence of competitive intelligence, which is recognized as a special kind of activity in a competitive environment.
 Research methods critical analysis, content analysis, comparative law.
 Conclusions in the article: the concept and signs of competitive intelligence, purposes, principles, sphere and form of competitive intelligence. It is noted that competitive intelligence is the process of collecting, accumulating, handling and analyzing information on the internal and external environment of companies. Characteristics of competitive intelligence: focusing on the external business environment rather: accumulating information and transforming it into intelligence that can be used by the organization. Unlike illegal industrial espionage, competitive intelligence is a legal and ethical business practice.

The Role of Business External Environment as a Moderation of the Effect of Entrepreneurial Orientation on Business Performance that is Mediated in Flexibility of Strategy

This study aims to examine the entrepreneurial orientation associated with business performance by incorporating flexibility strategies as mediation and the external environment of the business as moderation by taking studies in the small handicraft industry sector in East Java Indonesia. Data collection techniques used questionnaires distributed to UKM owners or managers of the craft sector as many as 198 entrepreneurs. The results of testing structural equation modeling with W arpPLS show that entrepreneurial orientation does not have a significant positive effect on business performance while entrepreneurial orientation on flexibility strategies has a significant positive effect. The results of the verification of the flexibility strategy mediate the relationship between entrepreneurial orientation to performance while the external business environment is not able to moderate the relationship between entrepreneurial orientation and performance. Key words: Entrepreneurial orientation, flexibility performance, positive effect, WarpPLS

Information System Strategic Planning at PT EP-TEC Solutions Indonesia

This research aimed to analyze the internal and external environment of business and information system /information technology (IS/IT), to identify current and future application portfolios, and to develop an Information System Strategic Planning to achieve the vision, mission, and objectives of PT EP-TEC Solutions Indonesia. The data were obtained from the results of interviews, observations, literature study, questionnaires, and analysis of the company’s internal documents. Data were taken from interviewing and questionnaires that were ten managerial levels of 50 employees at PT EP-TEC Solutions Indonesia. The weight on the SWOT IFAS and EFAS matrix used a pairwise comparison method. The method applied descriptive method by using the Information System Strategic Planning framework from Ward and Peppard. The analytical tools used Porter’s Five Forces, PEST, SWOT, Value Chain, IT Balance Scorecard, and McFarlan Strategic Grid. The results of this research indicate that future application portfolio recommendation that supports SI business strategies, IS/IT management strategies, and IT strategies that can help PT EP-TEC Solutions Indonesia in achieving strategic goals. From these results, it can be concluded that there are several proposals for applications, security tools, profiles of knowledge and skills, and recommendations for IS/IT infrastructure that can be applied in the company.

The influence of absorptive capacity and networking capabilities on small and medium enterprises

Background: In response to the ever-growing complexity in the business environment that has resulted from the dramatic technological transformation, businesses have altered the way they conduct business. The influence of the external business environment is increasing in significance, rendering traditional methods of operating business outdated and forcing the adoption of new methods.Objective: The aim of this study is to investigate how organisational capabilities influence small and medium enterprises’ (SMEs) operational performance (OP), by specifically looking at absorptive capacity (ACAP), networking capabilities (NCs) and customer relational capabilities (CRCs).Setting: This study was conducted in Zimbabwe and was spread across the 10 provinces, focusing on 388 randomly selected SMEs.Methods: Data were collected through self-administering questionnaires to respondents, using the drop-off or pickup technique and making telephonic follow-ups to increase the response rate. Analysis of the data in this study was largely quantitative in nature and it was performed using a two-step structural equation modelling approach.Results: The results of the study indicate that CRCs lead both ACAP and NCs to improve OP.Conclusion: This study enlightens both SMEs’ managers and policymakers on the significance of capabilities, as opposed to resources, in the growth of the SMEs sector. In light of the results, it is imperative that firms orientate themselves to embrace networking and ACAP as central tenets of their day-to-day operations while attending to customers timely and innovatively.

СИСТЕМА ІНФОРМАЦІЙНОГО ЗАБЕЗПЕЧЕННЯ МЕНЕДЖМЕНТУ ХАРЧОВОГО ПІДПРИЄМСТВА

In this article technology of development of information support system of management of food enterprise is presented. In the article, the information support system for food business management is considered as a functional strategy, along with other functional strategies - personnel development, marketing, technological strategy. Attention is emphasized that the system of information support of management of food enterprise should overcome a kind of double helix of transformation: market transformation of internal and external business environment and transition to business processes in which the material component in the structure of production is inferior to the primacy of information. It is stated that all components of the enterprise strategy are determinants of the management information support system or act as a basis for forming the criteria of the strategy of development of information resources as a whole or its individual components. The main types of information resources as components of the information support system of food business management are highlighted in the work. Such resources are specific (technological) information resources that are used directly to perform functions, operations, and business processes. Also, these resources are non-specific (developing) information resources that are used to empower individual employees, units and the organization as a whole. The main information opportunities of an employee who performs the functions of a separate business process in a food enterprise are analyzed separately. The article states that the system of information support of food enterprise management can be of two types: the system of increasing the intensity of use of information resources and the system of increasing the role of information resources of the food enterprise.

PROPOSING STAKEHOLDER COMMUNICATION FRAMEWORK FOR BUSINESS POSITIONING AMONG MANUFACTURING-BASED SMALL AND MEDIUM ENTERPRISE: ADOPTING A PUBLIC RELATIONS APPROACH

Purpose: This study proposes the development of a stakeholder communication framework for manufacturing-based Small and Medium Enterprises (SMEs).
 Methodology: Employing in-depth interviews with fifteen representatives from manufacturing-SMEs who take-up communication roles at the managerial level, this explorative method interprets, extracts relevant themes to facilitate the development of a stakeholder communication framework for this business sector.
 Main Findings: This study among key representatives of manufacturing SMEs concluded with the following findings. Firstly, these organizations communicate within the closed-loop stakeholder network with less focus to stakeholders beyond the network. Secondly, SMEs reveal a lack of keenness and understanding of the external business environment or the zone beyond the common network. Finally, with reference to the findings, the study suggests a communication framework for manufacturing SMEs through the incorporation of selected public relation models, roles and levels which is regarded as one that conservatively biased owing to the nature of this sector.
 Implications: The outcome brings a different perspective to the application of PR, particularly in the area of strategic business communication, which expands the research, application, and the future direction of PR.
 Novelty: This study enables PR to contribute to organizational competitiveness in the context of communication, which is inevitably vital for the positioning and sustenance of this business sector, particularly with the need to expand the communication portfolio towards stakeholders in the present competitive and globalized setting.

Methodological Redirections for an Evolutionary Approach of the External Business Environment

The usual strategic analysis perceives the external business environment fragmentarily and without a coherent and unifying way. The three levels that a typical analysis of the external business environment involves are a) the macroenvironment and PEST analysis, b) mesoenvironment and “Porter’s diamond”, and c) industrial environment and “Porter’s five forces”. Contrary to the fragmentary analysis of the three levels, this article aims to counter-propose a restructured method of a unified and evolutionary analysis of the external business environment. After presenting the usual analytical handling of the external business environment in the three levels, we suggest that these are rather co-evolving than separate and autonomous spheres of analysis. Therefore, after introducing some elements of the evolutionary socioeconomic theory, we propose a systemic web that perceives the external environment of the socioeconomic organisations in dynamically unified and evolutionary terms. The systemic web conceptualises the approach of the external socioeconomic environment as an open and interactive system comprising three co-evolving spheres in the context of global dynamics: the institutional character of each spatially structured socioeconomic formation; the firm’s functions within the system; and the public-state intervention that contributes to the establishment and reproduction of the system. This conceptual redirection of the methodology of the external business environment can be useful for building an integrated strategic analysis that studies all “micro-meso-macro” components of the entire socioeconomic system.

The resource-based view: a tool of key competency for competitive advantage

The increasing turmoil in the external organizational setting or business environment has focused attention on capabilities and resources as the primary source of competitive advantage. Obviously, this statement points to the application of the resource-based view (RBV) of organizational management. Nevertheless, what constitutes RBV remains an illusion in many quarters of organizational management, as scholars have managed to put up their personal ideas, and managed to converge on phenomenon-driven theories, in addition to RBV. This paper reviews the concepts of RBV in light of knowledge management to highlight some critical pitfalls that might have eluded the research community on the subject matter of RBV. To this end, this paper’s educational value lies in the fact that it simplifies the concept of RBV to the new researcher in a fashion that is capable of appealing to his or her level. A cross-sectional qualitative research approach was employed in an effort aimed at understanding the role of RBV in creating a sustainable competitive advantage and key competencies. A total of 20 relevant articles were searched from different databases and search engines, including Scopus, EBSCO, ABI Inform, IEEE, PubMed, Science Direct, SABINET, IEEE, Bing, Science Direct, and Google Scholar. The findings indicate that RBV plays an important role and assists organizations not only create, nurture, and maintain competitive advantage, but also understand the collective resources needed to compete favorably in a globalized and highly competitive market. With expert knowledge workers at its core to provide support for knowledge creation, sharing, and utilization, the RBV principles discussed in this paper promise to guarantee a methodological step geared towards the achievement of competitive advantage. It, therefore, makes an incremental contribution to the RBV to attain modest improvement in organizational settings.

Undwarfing the Giant: A Shared Value Approach

This is a follow up paper on the dwarfed giant: impact of trade and related policies on SMEs in the Nigerian textile industry. This study uncovers how the dwarfed giant can be undwarfed through the creation of shared value. To achieve this, the study examines areas of SMEs collaborative partnership in the Nigerian textile industry. SMEs in the Nigerian textile industry are faced with challenges that limit their abilities to compete favourably due to growing pressures from the liberalisation of international trade. These challenges have been an issue of concern, especially for SMEs fabric manufacturers operating in the Nigerian textile industry who are faced with the fundamental task of attaining long-term sustainability while simultaneously creating value for their customers and the society. The study identified some elements of collaborative partnerships between SMEs, customers and the government. It also identified the absence of on-going collaboration between SMEs and educational institutions in the country. However, these collaborative efforts have yielded little or no result due to the lack of shared understanding and values among key stakeholders in the industry. In bridging this gap, the study suggests that the principles of shared value creation be embedded into SMEs business strategy in inter-organizational relationships with key stakeholders in and out of the textile value chain. This way, they can effectively co-create shared value in the internal environment and adequately tackle the challenges of the external business environment.