External Business Research Articles

Business Strategy for Clothing Brand in Indonesia

The growth of the fashion industry was able to contribute about 18.01%, or IDR 116 trillion. The fashion industry’s revenue is anticipated to reach $9.30 billion in 2022, according to recent data. By taking advantage of this chance, Good News is a Christian and Catholic spiritual clothing company. In Indonesia, Good News aims a market of 28.88 million Christians and Catholics. with 1,401,771 potential customers in Jakarta, where Good News is based. Three products were eventually released by Good News, but sales haven’t yet surpassed expectations. Additionally, based on the market potential previously mentioned, Good News sales are unable to reach the 1,401,771-person potential market in Jakarta as a whole. Qualitative research techniques are used in this study. Owners of Good News businesses are interviewed for internal data sources. External sources can be found by reviewing published sources of information for pertinent political, governmental, legal, technological, and competitive trends and events. Before analyzing Good News’s strengths, weaknesses, opportunities, and threats, the author first collects external business factors. The data is then converted into an IFE and EFE matrix, which can be used to determine rankings and weights. A matching IE matrix is created after the data analysis. Good News The total weighted scores for the IFE matrix and EFE matrix are 2.54 and 2.86, respectively. The Hold and Maintain strategy fits the Good News based on the IE Matrix. Good News can change its strategy by working on product development and market penetration. Additionally, starting in January 2023, the author developed an implementation plan, timeline, and budget plan to track strategies to keep the business on course.

Proposed Business Strategy to Increase Profitability in Food & Beverage Industry (Case Study: Pt Ganesha Abaditama)

Indonesia’s retail industry is one of the most promising due to its large population and rising purchasing power from middle-class individuals and millennials with increased spending habits. Food and beverages are part of Indonesia’s retail industry. Ganesha, a manufacturer, and supplier of packaged spices has seen sales decline in the last two years. Outperforming supermarket competitors to increase sales requires a new business strategy to gain competitive advantages. This study uses the AFI framework to design a new business strategy. Porter’s Five Forces, customer, and consumer analysis are used for external business analysis. Resource-based view analysis, core competencies gap analysis, and VRIO analysis are used to analyze the internal business environment. Interviews, questionnaires, and observation provided primary data. Websites, books, articles, and journals provided secondary data. The two data sets are combined for the SWOT analysis, and the TWOS matrix is used to develop strategies. Results show that underpricing rivals and increasing product value will increase market share. Innovating the supply chain, production, and technology helps lower selling prices. Innovating existing products, packaging, and variations helps add product value. However, product innovation requires more market research to determine consumer interest.

Proposed Marketing Strategy for Fashion and Accessories Brand to Increase Brand Awareness and Sales Performance (Case Study: Carbon is Lyfe)

The world of fashion and accessories is now growing quickly. The presence of digital platforms for conducting marketing and promotion of products also supports this development. The growth of this industry presents Carbon is Lyfe, a local men’s fashion and accessory brand, with a chance to keep growing. However, Carbon is Lyfe encounters several challenges when growing its business, including low brand awareness and incompletely met sales goals. This study aims to analyze the internal and external environment of the Carbon is Lyfe company, identify the variables influencing customer’s brand awareness and purchase intentions for fashion and accessories, and recommend suitable marketing strategies for Carbon is Lyfe. The research method used is qualitative and quantitative methods. Qualitative methods are used to determine the internal condition of the company and are conducted by interviewing the CEO of Carbon is Lyfe. Meanwhile, quantitative methods are used to determine external business conditions, namely customer analysis, by distributing online questionnaires to the target market of Carbon is Lyfe. The questionnaire results were then processed using the PLS-SEM method using the SMART PLS software. After knowing the internal and external conditions of the Carbon is Lyfe business, the author uses a SWOT and TOWS analysis to formulate appropriate strategies to solve existing problems. As a result of this study, the authors propose five marketing strategies that are suitable for internal and external conditions to increase brand awareness and sales performance of Carbon is Lyfe.

An assessment of business environments and their effects on small and medium enterprises in Kaduna State-Nigeria

This paper assessed the impact of some external business environment on Small and Medium Enterprises of Kaduna state of Nigeria. The study population embraced SMEs registered with Small and Medium Enterprise Development Agency of Nigeria in Kaduna State with the total of 904. Taro Yamane formula was used to obtain a sample size of 400. The study takes on survey design. Findings revealed that infrastructural facilities have a significant and positive effect on SME’s service quality (0.142: p= 0.067<0.05).The government taxation policy have a significant and positive effect on sales revenue (0.146: p= 0.314<0.05). On the government/institutional support variable, result shows that it have a positive but no significant influence on job creation (0.544: p= 0.000>0.05). The analysis of insecurity and market growth shows a negative and significant effect of insecurity on SMEs market growth potentials (0.038: p= 0.769<0.05). At tail end, infrastructural facilities, taxation policy, and insecurity had a significant effect on service quality, sales revenue, and market growth respectively, government/institutional support have no significant effect on job creation. It was recommended that in order to supplement on the whole performance, SMEs should always make sure adequate scan of the external business environment to identify possible threats and opportunities surrounded by their working environment, In addition the government should charge a lower tax to augment increase in revenue base of SMEs. Also, infrastructural facilities in Kaduna state, should be given appropriate concentration, in the same vein, there is a need for the government to endorse extra attempt in conditions of policy arrangement and accomplishment.

The effect of entrepreneurial culture on innovation in a negative business environment: the case of Greece

PurposeThe aim of the paper is to study and propose a model of the effect of entrepreneurial culture on innovation, with the country's relevant institutional framework as a mediator. The model applies to the field of wine industry within the Greek institutional framework.Design/methodology/approachThe research population consists of wineries in Greece. A questionnaire was used to collect the data. Due to the fact that the model includes latent variables and indirect effects, the partial least squares (PLS) algorithm and the SMART-PLS software were chosen to analyze the data. The effect of entrepreneurial culture and institutional framework on innovation was examined as well as the role of institutional framework as a mediator.FindingsIt was found that entrepreneurial culture affects innovation positively and statistically significantly. What is more, it was found that the Greek institutional framework affects innovation negatively and statistically significantly. Finally, institutional framework negatively mediates between entrepreneurial culture and innovation, highlighted as a partial mediator.Practical implicationsIt is highlighted that it is up to entrepreneurs themselves to succeed. Furthermore, policymakers have to take the necessary measures to improve the external business environment of Greece. Indeed, entrepreneurship can succeed even further if the external environment is favorable.Originality/valueIt is interesting that despite the negative effect of institutional framework on innovation, the indirect positive effect of entrepreneurial culture on innovation is still statistically significant. This means that entrepreneurs who have the right mindset can overcome external barriers.

FORMATION OF THE INNOVATIVE COMPONENT OF THE INTERNATIONAL COMPETITIVENESS OF THE WORKFORCE OF UKRAINE IN THE CONDITIONS OF GLOBAL DIGITALIZATION

The article is devoted to the consideration of the basic characteristics, the economic focus of the process of formation of the innovative component of the international competitiveness of the workforce of Ukraine in the conditions of global digitalization of the world economy. The innovative component of the international competitiveness of the workforce is defined as the potential professional abilities of employees who are able to optimally use the latest achievements of scientific and technological progress in social production. The main components of the innovative component of the formation of the international competitiveness of the domestic workforce are studied, namely: a) the level of mastery of modern information and communication tools; b) targeting the constant mastery of new digital technologies; c) acquisition of professional competences oriented to the parameters of world standards; d) modernization of the national system of higher education in the direction of training highly qualified specialists in demand on the domestic and global labour markets; e) using the advantages of cooperation with international partners in the field of involvement in training and borrowing new forms and methods of ensuring the professional growth of young specialists. Factors affecting the development of the innovative component of the international competitiveness of national labour resources are analyzed. They include: 1) the consequences of the russian military aggression against Ukraine, which led to a decrease in the national scientific and technical potential; 2) forced migration of specialists within our country and abroad; 3) insufficient development of the IT sector of the domestic labour market; 4) regional disparities in the use of highly qualified labour force; 5) inadequate financing of the system of training of highly qualified personnel. The directions for strengthening the innovative component of the international competitiveness of the domestic workforce are proved, including: a) development of balanced state programs for national and regional development of highly qualified labour resources; b) modernization of higher education standards in the training of specialists of various professions; c) implementation of measures to stimulate the development of the national IT industry, digitization of industries and spheres of domestic production; d) formation of analytical centers for the study of features and trends in the development of world labour markets; e) adoption of an innovative national system of qualifications, oriented to the needs of internal and external business.

ORGANIZATIONAL AND ECONOMIC ASPECTS OF THE FUNCTIONING OF SUBJECTS OF THE AGRARIAN SECTOR OF UKRAINE IN THE CONDITIONS OF THE INTRODUCTION OF MARTIAL LAW

Purpose. The purpose of the article is to offer proposals of a theoretical and practical nature regarding their effective functioning in the conditions of the post-war revival of the country's economy on the basis of the assessment of the activities of agricultural enterprises and households in the conditions of the introduction of martial law in the country, Methodology of research. To achieve the set goal, the following scientific methods were used in the research process: scientific abstraction, deduction and induction – to formulate a scientific hypothesis of the work, laws and principles; abstract and logical – for making theoretical generalizations, substantiating research methodology, formulating conclusions; monographic – for a detailed study of the functioning of agricultural enterprises and households in the conditions of Russia's military aggression against Ukraine. Findings. An assessment of the state of production and economic activity of the main producers of agricultural products in Ukraine was carried out. The main factors that affect the formation of their economic stability, in the conditions of the manifestation of destructive phenomena in the social and political life of the country, which are a consequence of Russia's military aggression against Ukraine, are determined. Taking into account the experience of business entities under martial law, theoretical and practical proposals regarding the post-war revival of the agrarian sector are proposed. Originality. An assessment of the stability of agricultural enterprises and households in the conditions of changes in the external business environment caused by Russia's military aggression against Ukraine was carried out. Practical approaches regarding the diversification of the production activities of farms of the corporate sector of the agrarian economy have gained further development in the conditions of the post-war revival of agriculture, which involves the development of the main branches of animal husbandry: pig breeding and cattle breeding. Practical value. The proposed proposals of a theoretical and practical nature regarding the post-war reconstruction of the agricultural sector of Ukraine can be used by farms of the corporate sector of the agrarian economy in the formation of perspective plans for the production of agricultural products and by local self-government bodies in the development of comprehensive programs for the social and economic development of rural areas. Key words: agriculture, martial law, agricultural enterprise, household, state support.

Economic and Mathematical Modeling in Budgeting

The article is devoted to an overview of modern modeling approaches for effective management of enterprise budgets. The article examines the toolkit of economic and mathematical modeling that can be used in the budgeting system. It is proposed to increase the efficiency of the budgeting process by applying the tools of economic and mathematical modeling at the stages of budget development and resource allocation, as well as in the process of budget control and monitoring. To increase the clarity of the simulation procedure and results, a visualization of the TO BE model is presented in IDF0 notation (simulation language) on the Ramus platform. It is noted that the effectiveness of the budgeting system based on the use of economic-mathematical modeling tools will allow to improve resource expenditure planning taking into account the opportunities, priorities, needs and limitations of a specific enterprise and its external business environment. The need to implement digitalization tools and economic-mathematical modeling in the budgeting system is substantiated. The purpose of the article is to analyze the possibilities of forming an effective enterprise budgeting system based on the successful implementation of economic and mathematical modeling tools. The authors focus on the potential of using business analytics as a result of using economic and mathematical modeling tools to form an effective budgeting system. The article argues for the possibility of effectively using modeling tools in the budgeting process, which allows enterprises to make high-quality management decisions based on forecasts, scenarios, optimization recommendations, visualization of current problem situations, etc. The scientific novelty of this article lies in the fact that the recommendations and conclusions provided by the authors can be useful for domestic enterprises in the current conditions of severe restrictions on available resources, lack of free funds, existing and potential risks. In general, this article is useful for those who want to learn more about the possibilities of using economic-mathematical modeling tools in the budgeting system.

ЦИФРОВИЗАЦИЯ БИЗНЕС-ПРОЦЕССОВ МЕТАЛЛУРГИЧЕСКОГО ПРЕДПРИЯТИЯ КАК НАПРАВЛЕНИЕ ОБЕСПЕЧЕНИЯ УСТОЙЧИВОГО РАЗВИТИЯ

The article discusses the results of the analysis covering the current state of the external business environment of metallurgical enterprises and the level of digitalization of significant metallurgical leaders in Russia. Based on them, the authors examined the possibilities and risks that are associated with the digitalization of the metallurgical industry, as well as their effects on the competitive ability of such industry in Russia in general. The general analysis of the metallurgical industry portrays the economic and political instability caused by supply chain disruption, anti-Russian sanctions, the downturn driven by the coronavirus pandemic and general geopolitical tension that has been dictating the performance of metallurgical enterprises for a long period and thus affects their sustainable development. The authors analyzed findings of the SWOT analysis of metallurgical enterprises, using Severstal PJSC as an example, and developed strategic reactions that serve as the foundation for the development of the digitalization strategy of the metallurgical industry. In addition, the evaluation of the connection between the level of digitalization of metallurgical enterprises’ performance and their profitability demonstrates that there is a direct connection. The level of digitalization of business processes of a metallurgical enterprise has a direct impact on its competitive ability, implying the necessity to establish a set of strategic reactions that make it possible to develop a strategy for digitalization of metallurgical enterprises’ business processes. This strategy helps increase their performance and minimize risks, resulting in an increase in the efficiency and competitive ability of the Russian metallurgical industry on the global market. The evaluation of the efficiency of the digitalization strategy proposed reveals that its successful implementation contributes to a significant increase in the metallurgical enterprises’ profitability.

Основи побудови процесу розвитку міжнародної компанії

The article is aimed at determining the general basics for the implementation of the company’s development process, studying the influence of the international business environment, and highlighting key trends and opportunities for its development. Analyzing the scientific works of scholars and taking into account the dynamism of world processes, the potential goals from which companies usually begin the process of change and development are considered: continuous improvement; improving or enhancing communication; employee development; improvement of products and services; increase in profits. The stages of development of an international company in the article are as follows: determining the scope of improvement; research on the problem; creating an action plan; creating motivation and vision; implementation; evaluation of initial results; adaptation or continuation. Since changes and development of the company can be associated with certain obstacles to achieving the goal, the common challenges that arise in the process of development of the company include: fear of the unknown; conflicting goals; burnout; lack of leadership; misunderstanding of the planned changes; difficulty in regard with changing either mission or values. Analyzing the external business environment, which consists of numerous factors, the present publication groupes the latter into six key subenvironments. External factors that have an impact on the development of the consulting company’s business are both new trends (customer trends, dynamic mega-trends, technological trends) and destructive factors (macroeconomic, market-based, industry-based). Each of these factors creates a unique set of challenges and opportunities for business development. They emphasize the need for adaptability both at the individual level and at the business (or industry) level. As a result of the study, key trends (artificial intelligence and digitalization, expansion of cloud services, global recruitment for consultant positions, updated staff retention strategies, compliance with environmental, social and management (ESG) measures) are identified and opportunities for the development of a consulting company are substantiated. Prospects for further work in this direction are the formation of a mechanism for managing the development of an international company to strengthen the company’s competitive strategy; improving management and decision support processes at all levels; management of decisive data flows; implementation of changes to create a culture of flexibility and develop the company’s competitiveness.

МАРКЕТИНГОВЫЕ АСПЕКТЫ ФОРМИРОВАНИЯ МНОГОФАКТОРНОЙ МОДЕЛИ ГАРМОНИЗАЦИИ ПРОЦЕССОВ УСТОЙЧИВОГО РАЗВИТИЯ БИЗНЕСА

In the article provide the main marketing aspects of building multifactor models in the process of improving the organization’s activities. Practice shows that the idea of developing an adaptive universal algorithm for constructing multifactor models can be justified and quite feasible. In fact, a base of patterns is being developed, which should be based as much as possible on market conditions, trends and trends in changes in the external business environment and economic activity using the example of a specific economic entity.

Modelling casino hospitality business cycles

This study decomposes the casino hospitality business cycles of Las Vegas and Macao into highgrowth states (HGS) and low-growth states (LGS) using a Markov switching model. The casino gaming sector in Macao experiences greater fluctuations than the sector in Las Vegas due to more volatility in tourism flows; that is, Macao has a slightly higher HGS and a considerably lower LGS than Las Vegas. Las Vegas’s hospitality cycle appears to be more robust than Macao’s, although both hospitality cycles are desirably asymmetric. Various factors, including external business cycles and supply-side factors, affect local hospitality cycles. In terms of policy suggestions, the study’s results suggest that promotional marketing must be strengthened in Las Vegas, and Macao must diversify its industrial base.

Assessing sustainability reporting of Indian infrastructure firms

This paper summarizes the arguments and counterarguments within the scientific discussion on the issue of Business sustainability. The main purpose of the research is to look at the quality of sustainability reports of Indian infrastructure firms and use scoring method from literary sources for solving the problem and the issue of Business sustainability. The relevance of this scientific problem decision is that it adds to the literature of sustainability of firms. Investigation of the topic in this paper is carried out by using the Global Reporting Index (GRI) framework viz., economic, environment and social factors Methodological tools of the research methods were scoring methods which has been used for decade by the researchers in this field of study. The object of research is the analysis of sustainability reports of Indian Infrastructure firm because this sector faces namely external business environment negativities in Indian context. The paper presents the results of an empirical analysis by comparing large, medium and small firms, which showed that difference inside the large, medium, small group of companies. We find support to the earlier researches that have shown, large companies report better sustainability scores more than smaller ones on sustainability reporting. The research empirically confirms and theoretically proves the resources based view of strategic management. The results of the research can be useful for policy makers who can promulgate better incentive and provide technical expertise to medium and small firms to enhance their sustainability reporting.

КОНЦЕПЦІЯ ВІДКРИТИХ ІННОВАЦІЙ: ЗМІСТ ТА ПРАКТИКА ВИКОРИСТАННЯ

Today, the acceleration of globalization processes, the development of the IT sector, the use of artificial intelligence, and the creation of the digital single market change the external environment for innovation, affect the peculiarities of running the business in all sectors of the economy, encourage companies to implement the open innovation strategies and create more effective forms to engage partners in cooperation. The purpose of the paper is to consider the essence of the open innovation concept, the main features of its implementation for the formation of effective channels for interaction with partners, and the selection of effective models of financing for open innovation activity in the era of digital transformation and turbulence. The prerequisites for the emergence, directions of development, and spread of the open innovation concept have been determined. A feature of open innovation activity is the use of a joint approach and the involvement of the collective intelligence of a wide range of participants (partners, clients, representatives of the scientific community, and citizens) to solve a certain problem. The exchange of ideas, information, and knowledge is at the core of the open innovation concept, its core is transparent cooperation between individual participants of the innovation process at various stages of its development. The key aspects of building effective channels of interaction with partners for the implementation of open innovations have been characterized. It has been found that an important role in implementing the open innovation model is played by targeted knowledge flows, which are used both for accelerating innovation processes within the company and for more effective use of innovations in the external environment. It has been determined, that there are appropriate financing models to attract investments for the implementation of open innovations. Venture funds, external accelerators, and spin-offs can be used by large businesses; external business incubators, business angels, startup scouting, crowdfunding, and hackathons – for medium and small businesses.

STRATEGIC PLANNING OF HOSPITALITY INFORMATION SYSTEMS USING THE WARD AND PEPPARD APPROACH CASE STUDY AT BULEUD VILLA, GARUT DISTRICT

Hospitality is one area that has the potential to implement information systems because hospitality is a business that prioritizes satisfaction, in this case, namely service. A good business strategy is needed to support the business. Talking about business strategy will not be separated from the so-called strategy of information systems and information technology. Therefore, a mature information system strategic planning can be used as a reference to gain a competitive advantage for Villa Buleud Garut. The purpose of this study is to analyze environmental factors to determine the strengths, weaknesses, opportunities and threats that are owned and to identify the critical success factors so that a proposed information system strategy plan can be developed in the form of an application development portfolio at the future Villa Buleud. In this study the authors made direct observations at Villa Buleud, conducted interviews, and gave questionnaires to related parties and read literature. In compiling the framework in this study the authors used the Ward and Peppard approach. Which of these approaches is to carry out an analysis of the Internal Business Environment, External Business Environment, Internal IS/IT Environment, and External IS/IT Environment using several analytical methods, namely Value Chain analysis, PEST Analysis, Five Force Porter, McFarlan Strategic Grid, SWOT Analysis, Critical Success Factor, and Balanced Scorecard. The final result of this research is the proposed formulation of the future IS/IT strategy for Villa Buleud Garut which includes changes to the vision and mission of Villa Buleud, changes to organizational structure, information system application requirements, network architecture, future business processes, and future Villa Buleud application portfolio. Keywords: Information Systems and Information Technology Strategy, Ward and Peppard, Value Chain analysis, PEST Analysis, Porter's Five Forces, McFarlan Strategic Grid, SWOT Analysis, Critical Success Factor, Balanced Scorecard, and application portfolio.

State and Dynamics of the Innovative Performance of Medium and Large Firms in the Manufacturing Sector in Emerging Economies: The Cases of Peru and Ecuador

The purpose of this study was to analyze the current state and dynamics of the innovative behavior of medium and large manufacturing firms in Peru and Ecuador. It has been shown that the factors that enhance or enable the possibilities of innovation in organizations can be internal or external. This study took a quantitative approach, and regression models were applied to samples composed of firms. The relationships between external factors and business resources following the implementation of innovation were analyzed, as was the impact that these factors had on sales performance, considering the effect of the size and age of the firms. The innovations most implemented in firms in Ecuador were processes, and in Peru, organizational innovations were predominant. There were no external factors or business resources statistically related to these types of innovation for each country. For Peruvian firms, the age of the firm presented an inverse relationship to its performance. The study confirms the results of other studies conducted in Peru, and for Ecuador, these findings represent one of the first contributions on this topic. This study contributes to the discussion of the effects, in emerging Latin American countries, of a firm’s age on its ability to innovate.

Репутаційна складова системи управління організаційним розвитком підприємств соціально орієнтованого бізнесу

The purpose of the article isanalysis of the results of the study of the compliance of elements of reputation as a component of the management system of organizational development of enterprises of socially oriented business in the context of their connection with certain stages of development and crises. It has been established that a positive reputation creates favorable conditions for organizational development and effective functioning of enterprises in the market environment. The system of reputation management as a whole and each individual element of reputation depends on and directly affects management decisions regarding further response to changes in the external environment and the introduction of appropriate changes in the organizational structure of the enterprise. Among the elements of the reputation of socially oriented business enterprises, the following have the greatest influence: the external business reputation of the enterprise, the quality of products (services), social and environmental responsibility. At each stage of development, there is an evolutionary transition to a qualitatively new level, provided that crisis periods are successfully passed and a certain element of reputation is formed.

PENGARUH FAKTOR LINGKUNGAN BISNIS EKSTERNAL DAN PERENCANAAN STRATEGIK TERHADAP KINERJA PERUSAHAAN

This study aims to determine the influence of external business environmental factors and strategic planning on company performance. This study was conducted with a sample of 30 respondents with this sampling technique is probability sampling from multiple linear regression calculations, obtained Y = 3.302 + 0.564X1 + 0.661X2 The results of this study obtained t test, for variables: External Business Environment Factors (X1) t count (2.505) > t table (2.051831) with a significant value of 0.000 <0.05, meaning that there is a significant influence of External Business Environmental Factors on Company Performance. Meanwhile, for the results of the t-test of Strategic Planning (X2), namely t count (2.690) > t table (2.051831) with a significant level of 0.000 <0.05, meaning that there is a significant effect of Strategic Planning on Company Performance. Based on the calculated F test of 36,489 > Ftable 3.35, which means that simultaneously or together External Business Environmental Factors (X1) and Strategic Planning (X2) have a significant effect on Company Performance.

External business knowledge transmission: a conceptual framework

PurposeThis study aims to develop an original conceptual framework to guide research into knowledge transmission between professional external knowledge providers and their business clientele. As such, the framework aims to bridge a gap between theory and practice by explicating the processes which affect knowledge transmission and the conversion of knowledge for business application (i.e. knowledge transference).Design/methodology/approachKey concepts from disciplines of knowledge management, information management, communications, services marketing and business advice are reviewed and integrated into the development of this framework. Underpinned by a critical realist philosophical lens, it provides a robust research guide for examining business advisor knowledge actions in a changing open environment.FindingsThis study identifies that the process of knowledge transmission from a source external to a business is more complex than internal knowledge sharing. It addresses this complexity through a knowledge transmission framework, in a research design that is applicable to any methodological paradigm. Real-world application is identified in its applicability for evaluating mechanisms to facilitate knowledge transmission practices of external advisors to small business in regionally isolated communities.Research limitations/implicationsThe critical realist research methodology allows for causality in knowledge transmission to emerge; however, no assertion is made that the conceptual framework developed needs any particular philosophical paradigm for its application. Instead, what is asserted is that the research framework developed in this paper is specifically suited to the characteristics of external knowledge providers, their tacit knowledge and the businesses they service.Originality/valueThis study reconceptualises various theoretical perspectives and develops a sequential process for addressing a research lacuna by specifically examining the processes (or connections) between external business advisor’s knowledge and their advisory actions. With these processes clearly established, the role of external knowledge providers, as knowledge transmitters, deepens the understanding of knowledge transference that up until now has focused typically on internal organisation aspects.

The Mediation Effect of Business Strategy on the Relations between External Factors, Internal Factors and Business Performance

This study aims to test the influence of external, internal factors and business strategy on business performance, in addition to the mediation effect of business strategy on external, internal and business performance. This research was carried out in 150 restaurants in Dili, Timor-Leste, and questionnaires were used to collect data. SMART-PLS 3.0 was used to test the hypothesis. The finding reveals that external factors had no significant impact on business performance, and internal factors positively influenced business performance. The mediation effect of external and internal factors had no significant impact on business performance. This research extends the empirical works of Huang & Lee (2012), Metts, (2007) and Barney (1991) on the relationship among external factors, internal factors, and business strategy and performance. This study practically contributes to the restaurant manager and regulators being aware of threats and opportunities from the external environment and improving internal construct to enhance business performance.