Business Environment Factors Research Articles

The effects of industry dynamism, firm size, and ownership on HR strategic integration in China

HR strategic integration is a key factor reflecting the strategic use of human resources for competitive advantage. It has been argued that the changing business environmental factors such as industry conditions, institutional factors and organizational characteristics drive the emergence of HR strategic integration. However, empirical evidence about the environment factors and HR strategic integration relationship in China is inconsistent, which might be attributed to methodological and theoretical considerations. To address these issues, we draw on strategic tripod theory and employ a multi-source (combining HR managers’ subjective evaluations and Statistical Yearbook objective data), time-lagged (across three years), and multi-level research design to examine the environmental factors and the HR–strategic integration relationship. We explore the main and interactive effects of three key environmental variables (industry dynamism, firm size, and firm ownership) on HR strategic integration. We find that three-way interactions of environmental variables are more effective in explaining the relationship between context and HR strategic integration than are two-way interactions and main effects. Our study contributes to the HRM and strategy management literature.

Methods for assessing the enterprise economic security as a tool to diagnose threats to development

Subject. The article addresses issues of enterprise economic security, its assessment, and measures to prevent threats, taking into account the scale and nature of the latter. Objectives. The focus is on underpinning a unique approach to devising a new method intended to identify and diagnose external and internal threats that negatively affect the level of economic security and have a potential to jeopardize the development of economic entities. Methods. The study rests on methods of theoretical, systems, logical, and comparative analysis of academic literature, general scientific methods, like analysis, synthesis, induction, deduction, comparison, generalization, the analog approach, and graphics simulation. Results. The paper offers a concept for assessing the enterprise economic security, which is based on the diagnosis of threats and identification of opportunities for development. I explored the modern methodology for monitoring the economic security at the micro level, conducted a comparative analysis of existing methods and approaches, revealed their pros and cons, and presented a new approach to the evaluation of enterprise economic security. Conclusions. The level of enterprise economic security is assessed in conjunction with the current and projected state of enterprise’s potential and risk factors of business environment. If the cumulative effect of risks is significantly higher than the potential, the threats will arise, which may impede the enterprise operation and development.

BUSINESS COMPETENCES ESTIMATION AND DEVELOPMENT

Taking into consideration at the present business environment of the Russia, as well as its geographical position and the historical background, it is important to make use of these conditions for estimation and further development business competences at the universities of Russia. The object of the present research paper is business competences, the subject of the research paper is estimation of the business competences of Russia and the development them in the study process at the higher education organizations in Russia. The objective of the research paper is to study the integration process of students and academic staff representing Russian higher education organizations in formation of business competences in Russia, to elucidate the factors influencing the business competences, to develop proposals for estimation and improvement of business competences in Russia. Research methods: reported analysis of business competences, higher education organizations in Russia, study of correlation between business environment factors and business competences, economic and statistical analysis of the universities results, economic experiment, studying of public and non -governmental institutions data in Russia. The present paper includes further development of study on the contents of business competences, factors influencing it, higher education theory and policy.

Industrial development in Saudi Arabia: disparity in growth and development

Industrial development in any nation plays a vital role in the strengthening of the economy and employs human resources as per specifications and directly towards the mainstream of the nation. In Saudi Arabia, there was rapid industrialization for four decades. Some manufacturing industries performed well, while some internal and external business environment factors influenced the others’ performance. The study focuses on historical development, as well as recent trends of well-performing and poor-performing industries of Saudi Arabia. Small manufacturing industries in Saudi Arabia are underdeveloped and need more attention to attain sustainable and progressive growth rate in the form of the number of establishments to enjoy the potential. Manufacture of tobacco, computer, electronics and optics, pharmaceuticals and transport equipment are the deprived and underdeveloped industries of the manufacturing sector. There should be some easy credit schemes for the development of deprived or underdeveloped manufacturing industries. To attain sustainable growth and development of the manufacturing sector, a positive attitude of the government towards underdeveloped manufacturing industries, favorable labor laws, and entrepreneurial awareness, technical and financial assistance are necessary. The growth and development of the manufacturing sector of Saudi Arabia will be helpful in the attainment of goals of Vision 2030.

Preparing Fertile Ground: How Does the Business Environment Affect Outcomes From Microfinance?

We study the role of local business environments in explaining microfinance client outcomes using long-term nationwide administrative data and a natural experiment in a large microfinance market. Positive shocks to the business environment lead to significantly increased employment in exposed client enterprises compared to client enterprises in contextually similar districts but that are unexposed. Furthermore, business environment-level factors are overall more predictive for growth than individual- or business-level characteristics. To broaden the study’s implications and policy relevance, we pool data from prominent microcredit impact evaluations and demonstrate how related business environment factors help explain heterogeneity found in their results.

Ekološka dimenzija PESTEL analize sprovedene u malim preduzećima u Republici Srbiji

Strategic decision-making seeks to analyze the external environment in which business organizations operate. External environmental factors are analyzed and monitored using PESTEL analysis. PESTEL analysis provides insight into organization's business opportunities and threats, in order to rapidly adapt to new market conditions. The objective of this paper is to present the use and the importance of PESTEL model for the analysis of ecological factors in business environment. The most common challenges of environmental analysis, and examples of positive practice from the Republic of Serbia, are presented in this paper. The paper represents a professional contribution to the business community, specifically, it helps organizations to improve their ecological performances through more efficient use of opportunities and elimination of threats arising from ecological factors.

Innovations for Business Management: Motivation and Barriers

The business sector represents one of the most important parts of the modern economy. It creates and secures most products and services, contributing to most of the sales tax revenues. Business development is not possible without creating a favorable business environment and suitable conditions for creating and entering new business into the market. This paper focuses on the evaluation of some business environment factors in starting a business. Attention is attended to the business environment and funding activities management, including the managerial assessment of proactive, innovative, and business-supporting activities. Besides, this study encompasses the issues of obstacles and barriers to starting a business. The interest of the article is to point out the state and problems in the field of start-up entrepreneurs and the importance of supporting motivational factors and removing barriers by improving the business environment. Methodological tools of the research are classical methods of science analytics, synthesis, and data selection. The basic heuristic approach consists of professional literature on the subject matter, and secondary sources obtained from European Commission, Eurostat – Flash Barometer, and the World Bank to monitor selected indicators of the business environment and SMEs in Slovakia, EU-27 countries, and the world. The primary information was represented with the questionnaire-based survey conducted throughout the Slovak Republic, in which a total count of 426 respondents participated. For hypothesis testing, the Friedman Test, Kolmogorov – Smirnov test, and Kruskal – Wallis test was used. The empiric results confirmed the significant differences between motivational factors for starting doing business. At the same time, there are still significant barriers to enter the business in Slovakia, which considerably limit the further development of doing business in Slovakia. The article provides recommendations for improving the business environment’s current status and entering into business in the Slovak Republic. Keywords: small and medium entrepreneurship, innovations, business barriers and opportunities, business management.

Dual environments of home and host countries of diasporic transnational entrepreneurs: an empirical study in the Canadian context

This study determines the relative importance of business environment factors perceived by the Canadian diasporic transnational entrepreneurs (DTEs) as affecting the success of their foreign activities in the host and home countries. Findings indicate that in the home countries, government regulations and lack of human and financial resources were the most determinant impeding factors while welcoming attitude of local rulers was the most determinant facilitating factor. In the host country, tolerance, openness, recognition and validation of credentials from the home country, and government services for immigrants were found as the most significant factors that facilitate the start-up and development of diasporic transnational entrepreneurship. The lack of these factors impedes the start-up and development of diasporic transnational activities. Overall, depending on the indicator used for internationalisation, up to 30% of the variations in the international activities of DTEs are attributed to the dual business environments.

Home-country environment and firms’ outward foreign direct investment decision: Evidence from Chinese firms

This paper takes a holistic view and examines the environmental effect of the home country on firms’ outward foreign direct investment (OFDI) decisions. We construct an economic growth index to assess the overall economic environment of Chinese regions and find that the home country’s business environment is negatively associated with firms’ decisions to invest abroad, and that such a negative relationship can be intensified for firms with state ownership or without an export network. Moreover, unlike previous literature, we look at both the environmental effect on OFDI decisions and the consequential impact of OFDI on firm performance. We employ propensity score matching and difference-in-differences methods, as well as the Heckman two-step model, for our estimations. Our results show that OFDI does indeed improve Chinese firms’ productivity and sales. This paper, therefore, contributes to the literature by identifying a range of home country business environmental factors that have a combined effect on firms’ OFDI decisions, adding to a more comprehensive understanding of OFDI originating from emerging economies.

Enhancing Competitive Advantages for Small - And Medium - Scaled Enterprises in Viet Nam: Evidence in Tra Vinh Province

Researching to enhance competitive advantages for small and medium enterprises by collecting primary data of 315 small and medium enterprises in Tra Vinh, using multivariate regression, the research has showed 6 factors that affect to the competitive advantages for small and medium enterprises in Tra Vinh: principles changing, different costs, time controls, input activities controls, capacity controls, macro policies controls. Since then, the research implied the policies for future integration such as: improving management capacity, qualifications and awareness of small and medium enterprises' owners in Tra Vinh province on competitive advantages; Supporting businesses to develop marketing and sales activities; to support activities to provide information about markets, partners, customers for small and medium enterprises; Promote training of human resources and technology development of enterprises; Building a channel to receive feedback on institutional and business environment factors according to the provincial competitiveness index; There are preferential credit policies for small and medium enterprises.

Unpacking the determinants of cross-border private investment in renewable energy in developing countries

Private finance has emerged as a fundamental catalyst of the clean energy transition, an urgent and necessary step that must be taken in order to avert catastrophic climate change. Yet, private investment in renewable energy, although gaining momentum, remains limited in reaching some developing countries, where it is most needed. Previous research has provided some insights into the drivers and barriers faced by investors in this sector; however, these remain understudied in the context of developing country markets. This study contributes to this body of knowledge by systematically testing the effects that a variety of factors have on foreign investment in renewable power generation in developing countries, and by investigating how these effects may vary according to the source of finance. The determinants include the implementation of domestic renewable energy policies, the provision of international public finance and the wider business environment. Using panel data covering 62 countries over a 7-year period, this analysis relied on linear and logistic fixed effects models to determine what best explains the decision to invest and the volume of foreign private capital flows in the renewable energy sector. Results suggested that the provision of international public finance, regulatory support measures and feed-in tariffs, coupled with political stability, are strong drivers of cross-border investment in renewable energy in developing countries. Finally, evidence was presented that the effects of public interventions and business environment factors on investment may vary according to the source of finance, shedding light on the importance of breaking down investment flows to fully understand private financing decisions in renewable energy.

Critical Success Factors of Small and Medium-Sized Enterprises in Saudi Arabia: Insights from Sustainability Perspective

The aim of this study is to explore the critical success factors (CSFs) of small and medium-sized enterprises (SMEs) in Saudi Arabia. A questionnaire was developed using 28 factors/indicators identified from the previous researches. From 500 respondents, a total of 347 questionnaires were returned. By conducting exploratory factors analysis, these indicators were categorized into six factors, namely: Individual factors, business characteristics, management factors, business support, capital availability and business environment. Using IBM SPSS and AMOS, the results indicated that business support was the most critical factor that significantly affects the success of SMEs in Saudi Arabia, followed by individual factors, capital availability, and management factors. They also indicated that business characteristics and business environment factors had no significant impacts on the success of these enterprises.

Changing Dynamics of Talent Management: Analyzing the Impact of Business Environmental Factors

Talent management process makes sure that the organization has sufficient supply of talented employees to meet the organizational goals. However, this aspect is important for organizations especially in the wake of the ever-changing business environmental factors such as political, social and economic factors. To undertake a critical examination of the changing dynamics in the field of talent management, the following research focuses on an analysis of the impact of political, economic and socio-cultural changes on the talent management process in oil and gas companies in GCC. As such, the main objective of the research is to undertake an analysis of the practices of talent management adopted in the oil and gas sector in GCC region and analyze the changing dynamics of the Talent Management process to suggest strategies to manage talent to improve the industry performance. Despite the advanced in the human resource management field, the talent landscape in the GCC region faces challenges in the talent management process such as talent acquisition, talent retention, and talent development. The following research focuses on the use of an empirical quantitative approach towards data collection and interpretation of the obtained data. The research advanced three hypotheses, which are tested in the research. The findings of the research provide evidence that the economic, social and political factors have a significant influence on talent management practices in this region. And it is important to consider the business environmental factors in managing talent by aligning organizational strategy with talent management strategy of the company. The implantation of technology by means of Artificial intelligence, HR analytics and automation will reduce the dependency on more employees and improving the value of HR in the organization by enlightening organizational performance and productivity with few talented employees in line with dynamic business environmental factors.

Analysis of factors from the external environment in changing business processes

This paper presents and analyzes the factors in the external business environment that determine the need for redesign processes in enterprises or at the business level. At the same time, the influence of the most relevant factors in the external environment will be analyzed in this context based on a case study conducted at the level of the Jiu Valley enterprises. At the same time, the influence of the most relevant factors in the external environment will be analyzed in this context based on a case study conducted at the level of the Jiu Valley enterprises. The research methodology is the questionnaire. The study is broader, but only a part of the research findings, those related to the factors in the external business environment that determine the need for chance or redesign processes in enterprises, are presented this paper. The overall conclusion of the study is that: the need to undertake processes of change or redesign of business is determined in particular by certain factors such as those in the near environment (customers, competition, etc., with intensities close to influence), but also by the changes in the business environment in which the company operates. The results of the study can generally be argued that the company / business and business it is doing is in close connectivity and interdependence with its external environment.

Combined approach to forecasting of manufacturing system target indicators in a changing external environment

The paper presents a combined approach to forecasting of the manufacturing system target indicators, depending on the key factors determining the functioning of this system and business environmental factors. The approach includes: (i) identification of key factors and weak signals influencing the target indicators by analyzing the system functioning model in the external environment represented by a cognitive map of the situation; (ii) analysis of dynamics of the identified key factors and manufacturing system target indicators and the construction of a forecast model using time series analysis methods; (iii) monitoring of the heterogeneous information space in order to detect changes in trends and the composition of parameters of the forecast model; (iv) correction of the forecast model and cognitive map of the situation according to the results of the detected changes. The approach is focused on the formation of long-term forecasts of the target indicators and increasing the accuracy of these forecasts by identifying significant influencing events whose influence does not have time to reflect in time series.

Business Excellence Initiative Success Prediction Model based on Logistic Regression and Artificial Neural Network

Today the organisations are increasingly adopting business excellence (BE) initiatives for the breakthrough business results. However, such initiatives have given limited success. The practitioners are looking for early alerts for the initiative mid-course corrections. The present paper describes the development of a logistic regression and artificial neural network (ANN)-based BE initiative success prediction model. The deployment of the model in various organisations helped to predict BE initiative success probability and take corrective actions. The success rate of the organisations deploying BE model is statistically more than that are not deploying it. The exploratory research has shown that organisational culture has a greater impact on BE initiative success than the business environment and organisational structure related factors. The descriptive research indicates that Lean Six Sigma is deployed in 73% organisations as a successful BE initiative and the focus of the 63% respondents are in bottom-line improvements.

Business excellence initiative success prediction model based on logistic regression and artificial neural network

Today the organisations are increasingly adopting business excellence (BE) initiatives for the breakthrough business results. However, such initiatives have given limited success. The practitioners are looking for early alerts for the initiative mid-course corrections. The present paper describes the development of a logistic regression and artificial neural network (ANN)-based BE initiative success prediction model. The deployment of the model in various organisations helped to predict BE initiative success probability and take corrective actions. The success rate of the organisations deploying BE model is statistically more than that are not deploying it. The exploratory research has shown that organisational culture has a greater impact on BE initiative success than the business environment and organisational structure related factors. The descriptive research indicates that Lean Six Sigma is deployed in 73% organisations as a successful BE initiative and the focus of the 63% respondents are in bottom-line improvements.

Market Capturing and Business Expansion Strategy for Gluten-Free Foods in India and USA Using PESTEL Model

The ultimate goal for any business is to grow vertically and horizontally. Successful business is combination of careful analysis of external and internal factor of business environment and adoption of appropriate business strategy. In this study external factors of gluten-free market are studied in detail through PESTEL model (for external factors). The study would facilitate manufacturers to bring gluten-free foods from niche market to main stream market and to make it more affordable for all the sections of the society. The study focuses on markets of India and USA, since both of these nations have high potential for gluten-free foods and the demand further continues to increase every year.

Analyzing the importance and agglomeration of factors of the Russian business environment

Analyzing the importance and agglomeration of factors of the Russian business environment

The Effect of Global Investment Decisions and Financial Risk on Multinational Corporations: Walmart Corporation Case Study

In this present study, we introduce a definition of the globalization concept by referring many sources and identify it is affiliations concerning the firm's investment process. Critically evaluate the advantages of investment proves with globalization by considering examples from different organizations. We also enumerate and discuss Walmart’s global business environment factors including its operations and critically examine theirs on the firm’s on national Global level. Moreover, we examine Walmart value statement, strategic decision that enabled to achieve such values, its decision, and source of financing, and various risks the firm confronts on the two levels. Finally, we appraise Walmart’s financial sourcing and risk management strategies and its implication on the global market.