High-performing Companies Research Articles

Customer experience management and business performance

Purpose – The purpose of this paper is to examine how essential dimensions of customer experience management (CEM) drive business performance in Danish companies. Design/methodology/approach – An empirical study is conducted to investigate the relationships between seven CEM dimensions, differentiation, market performance and financial performance. The conceptual model is operationalized by a structural equation model, and the model is estimated and tested by using the partial least squares method. A survey among 484 companies in Denmark forms the empirical basis for the study. Findings – The findings provide evidence that the seven CEM dimensions influence differentiation, market performance and financial performance. High-performing companies differ significantly from low-performing companies with regard to how they master the CEM, meaning that those companies which incorporate superior customer experience into their products and service enjoy measurable financial success. Research limitations/implications – This study is limited to the seven identified CEM dimensions in Danish companies. Practical implications – This study has clear implications in terms of identifying and measuring the importance of essential CEM dimensions which influence business performance. The results can help companies to understand CEM and develop CEM strategies. Originality/value – The paper provides a deeper insight into CEM and how CEM works.

Atraindo novos funcionários para empresas de alta performance: uma crítica às razões dos profissionais de recursos humanos

Os chamados sistemas de trabalho de alta performance refletem a necessidade de organizações fortalecerem o envolvimento do trabalhador para que este responda mais rapidamente às demandas por resultados. Apesar de as práticas de alta performance promoverem uma gradual intensificação no trabalho e o aumento do nível de stress dos trabalhadores, e, portanto, restringirem a qualidade de vida e o bem-estar no trabalho, empresas de alta performance exercem grande poder de atração nos profissionais qualificados, o que enseja a indagação sobre os mecanismos que promovem essa atratividade. Para investigar esta questão, este estudo se debruça sobre os discursos proferidos por profissionais que atuam na área de recursos humanos de empresas de alta performance atuantes no Brasil. A pesquisa foi realizada por meio de entrevistas em profundidade com esses profissionais, com perguntas amplas sobre as atividades de recrutamento e seleção de funcionários. Os argumentos e motivos que permeiam os discursos desses profissionais foram analisados à luz do repertório conceitual da Teoria Crítica, particularmente o debate sobre as racionalidades que orientam a ação social. O exame dos discursos aponta para uma comunicação instrumentalmente orientada e para a distorção sistemática do processo comunicativo no interior das organizações, em detrimento do equilíbrio entre vida e trabalho e do bem-estar individual e interpessoal.

Clustering Stock Market Companies via K-Means Algorithm

One of the main concepts in pattern recognition is clustering. This technique is used as important knowledge discovery tools in modern machine learning process. Clustering of high-performance companies is very important not only for investors, but also for the creditors, financial creditors, stockholders, etc. Hence, firms’ clustering is considered as one of the important issues in Tehran Stock Exchange (TSE). To this end, we have used financial statement data of three industries in TSE for the year 2012. After selecting profit criteria (attributes) and prioritizing them using AHP, k means clustering algorithm is used to classify these companies. Also, to obtain the optimal number of clusters, different validity measures are presented. The identification of clusters of companies of TSE can be exploited to improve planning and get to more comprehensive decision making about companies.

Why Do Japanese Non-Local Regional Banks Enter Other Prefectures Under the Region-Based Relationship Banking Policy?

In this study, we investigate the market characteristics of prefectures in which non-local regional banks of other prefectures choose to enter and their motivations for doing so, considering the Japanese government’s requirements for regional financial institutions to actively stimulate their local economies. In particular, by pooling prefecture-level data, the market characteristics of prefectures that experience more entrances by non-local regional banks compared with other prefectures are examined. It was found that entrance by non-local regional banks is more common in prefectures containing active high-performing companies. Hence, it can be considered that non-local regional banks that are not satisfied with lending opportunities in their home prefectures enter other prefectures to increase their lending opportunities to high-performing companies. This study contributes to the clarification of why many regional banks do not concentrate on businesses within their local regions and intentionally enter other prefectures, which is in contrast with the intent of the region-based relationship banking policy.

Supplier management in a manufacturing environment

Purpose – Managing a supplier base can be both challenging and rewarding. Instances abound where the lack of attention to supplier management has caused once successful businesses great losses or even failures. Assessing a supply base using the combined approach of discrete choice analysis (DCA) and total cost of ownership (TCO) can help a company determine the necessary features required to alleviate the strain caused by doing business with poorly managed companies. The paper aims to discuss these issues. Design/methodology/approach – By combining a company's DCA with their TCO, manufacturing companies can create a strategically focussed scorecard that aligns their supplier requirements with high-performing companies. During the analysis, the paper chose to analyze an appliance manufacturer. Findings – As a result of the analysis, it was determined that a specific supplier that was labeled as strategic, should actually be considered for elimination. While this analysis can be extremely effective, three main limitations within the research do exist. First, the lack of alignment of DCA with the strategic business initiatives within each unit of a company can adversely affect its financial success. Second, implications for management which include all data used in the analysis through all three stages – identify and classify, consolidate, and maintain supplier base – must be up-to-date. Finally, trade-offs must be accepted as a means of doing business with a supplier. Originality/value – After reading this study, sourcing managers should realize the potential for aligning and managing their supplier base with the strategy of the company to assure a profitable future.

What Explains the Environmental Performance of Fortune 500 Companies?

We examine differences in environmental performance among Fortune 500 companies by asking: what factors might explain differences between poor and strong performance? Does industry matter? And what can explain discrepancies in firms’ accounts of their performance when compared to the actual performance? In this exploratory, theory generating study we apply an embedded mixed method approach to address these questions by using four data sets: (a) firm’s environmental performance as reported by Newsweek statistics, (b) firm’s safety performance as reported to OSHA, (c) a survey conducted among top executives of the Fortune 500 companies, and (d) interviews with one of the top 5 executives in Fortune 500 companies. We find that high-performing manufacturing companies have higher ability to transfer knowledge across functional boundaries and source and exploit new knowledge. They also seek to challenge the status quo to show elevated concerns for employee safety. Poorly performing manufacturing companies share...

The Impact of the Organizing Vision on Mobile BI Adoption

Mobile Business Intelligence (m-BI) enhances the capabilities of organizations to take decisions 'on-the-move'. M-BI emerged as an extension of BI and many companies have or are considering implementing it. Being an innovation, m-BI reflects an organizing vision, created by a broad community, which is prominent during the comprehension process of this innovation. Little is known how the organizing vision affects the decision to adopt a certain innovation, and moreover these studies are completely lacking within the m-BI area. A qualitative approach has been embraced and interviews with different organizations that have already decided to adopt m-BI have been conducted. This study revealed that industrial research reports, vendors marketing campaigns and success stories produced by the collaboration among vendors, analysts, journalist and early adopters have a strong influence on the early phases of the organizational decision-making process to adopt m-BI. Increasing internal and external legitimacy, reducing the risk to be left behind, gaining competitive advantage, following the footsteps of high-performing companies, increasing their prestige and reputation, are the main reasons for why organizations may start the decision-making process to adopt m-BI; all this under the umbrella of the organizing vision. (Less)

Understanding the Board of Directors after the Financial Crisis

There are numerous studies on the effectiveness of boards that primarily focus on legal formalities, including gender diversity, board size, remuneration, board evaluation and the role of the chairman of the board. While attempting to design a one-size-fits-all framework, scholars approaching board independence from an agency cost perspective have been less concerned with analyzing board structures that contribute to strategic decision-making and corporate performance. We examine the factors and board strategies that are associated with value creation and innovation by analyzing the composition of high-performance and high-growth companies. The paper shows that venture capitalists, with their specific expertise and experience, continue to play an important role as independent board members in the post-IPO period. We specifically investigate the importance of diversity, showing that there are significant differences between the companies in terms of age, gender diversity and business expertise (which is dependent on the stage in the company life-cycle).

Foreign acquisition and the performance of New Zealand firms

This paper examines the firm-level determinants of foreign acquisitions of New Zealand companies, and the consequences for both purchased firms and the workers within those firms. We follow a combined propensity score matching and difference-in-difference approach to identify and address endogenous selection of acquisition targets. The results suggest that foreign firms tend to target high-performing New Zealand companies. Acquired firms then exhibit higher growth in average wages and output, relative to similar domestic firms, but do not appear in general to increase their productivity or capital intensity. We find no evidence of differential survival rates for recently acquired foreign firms.

Performance Evaluation Index of TRM: A Korean Case for SMEs

There is the need for performance evaluation and the identification of key success factors for utilizing technology roadmaps (TRM), but relevant research does not yet exists in this field. In Korea, the Small and Medium Business Administration has implemented the "Support Program for the Individual Company Technology Roadmaps" to promote the establishment of technology development strategies by SMEs. This study developed the framework and indices for performance analysis, designed and implemented survey for TRM performance analysis, and analyzed TRM performance of the companies that have participated in the above program from 2008 to 2011. This study compared the supported 97 companies and 102 companies not supported and analyzed quantitative and qualitative performance and satisfaction levels among the supported companies to compare low-performance companies and high-performance companies. This study aims to examine the KSF of TRM in terms of input and process. Also we suggested significant insights into the performance of TRM in terms of output.

The Operating Performance of High Performance Companies during a Period of Financial Crisis: Risks and Opportunities

The global financial crisis of 2007-2009 presented a challenge to all companies around the globe. This study investigates whether companies that exhibit high performance characteristics in the pre-financial crisis period can maintain their high performance in the post-financial crisis period and, if so, what operating characteristics are most important in managing a company through such a period. This study empirically investigates 1,480 companies in the United States and twenty-two other countries (MSCI index) over the periods 1998-2007 (benchmark) and 2008-2009 to identify HPC from the former period that exited, sustained, exited, or entered HPC status in the latter period, (1) to identify the operating characteristics of companies that were able to sustain high performance from 1998-2007 into 2008-2009. (2) to identify the operating characteristics (performance drivers and performance measures) and associated risk factors which were most critical for companies that exited HPC status in the 2008-2009 period, and (3) to identify the operating characteristics which provided opportunities for companies that emerged to HPC status in the post-financial crisis period. The results provide direction for management of companies that aspire to HPC status and to maintain HPC status particularly in times of global financial stress.

Employee quality: A requisite for becoming a high‐performance organization

© 2012 Wiley Periodicals, Inc. Published online in Wiley Online Library (wileyonlinelibrary.com). DOI 10.1002/ert.21375 Great companies know that it is a precondition to hire and retain employees who have an incurable curiosity, want to be challenged, need to have responsibility and at the same time ask to be held accountable, and want to perform better . . . everywhere and anytime. These employees perform better than the average employee, and, because of that, they contribute more to the effectiveness of the organization. With this type of employee, any business can transform itself into a true high-performance organization (HPO). A high-performance organization is one that achieves financial and nonfinancial results that are exceedingly better than those of its peer group over a period of five years or more, by focusing in a disciplined way on what really matters to the organization. Over a period of five years, we conducted research into what makes an HPO. This has included a review of 290 studies into business high performance and excellence, a personal survey of close to 1,470 organizations throughout the world, and the collection of numerous in-depth case studies of highperforming companies representing nearly every continent. Through this research, we’ve determined the HPO Framework—a conceptual, scientifically validated structure that practitioners can use for deciding how to improve organizational performance and make it sustainable. The HPO Framework includes five factors of high performance: (1) management quality, (2) openness and action orientation, (3) long-term commitment, (4) continuous improvement and renewal, and (5) employee quality. This article focuses on the fifth factor: employee quality. An HPO makes sure it assembles a diverse and complementary workforce and recruits people with maximum flexibility to help detect problems in business processes and to incite creativity in solving them. An HPO continuously works on the development of its workforce to train staff, letting them learn from others through partnerships, inspiring them to improve their skills so they can accomplish extraordinary results, and holding them responsible for their performances. This factor can be broken down into four important characteristics: (1) inspiration, (2) resiliency and flexibility, (3) diverse and complementary, and (4) partnership.

Man versus math: Behaviorist exploration of post-crisis non-banking asset management

Rationalists may argue that the best way to manage an investment portfolio is to use risk-balancing strategies such as asset class diversification. Positivists would likely insist on probabilistic concepts – perhaps a mean-variance statistical technique. A third less-studied approach in the financial literature is to apply a behaviorist philosophy such as heuristics or rating the quality of the management team. An interesting variation is to study the behavior of effective asset managers, particularly their methodologies, and then imitate those best-practices. This is a fundamental principle underlying case studies, ethnography, grounded theory and other interpretative research philosophies, so it was useful to apply it to study the investment discipline. Furthermore, extant financial studies predated, or tested data before, the global financial crisis, which may invalidate older models. Therefore, the researcher interviewed 39 non-banking asset managers from high-performing NYSE-listed companies to explore their perception that current portfolio management techniques would be effective in volatile financial markets. A statistically significant asymmetric plot was produced, which revealed gender and market outlook were key factors.

Configurações estratégicas de firmas brasileiras de alto desempenho listadas na BM&FBOVESPA

Este estudo parte da premissa teórica de que firmas obtêm lucros extraordinários quando exploram imperfeições de mercado. Imperfeições são tratadas como variáveis causais para identificar configurações de empresas de alto desempenho listadas na BM&FBovespa entre 2005 e 2009. O estudo, qualitativo comparativo, adota uma metodologia replicável, a saber: (a) análise categorial de conteúdo semântico de relatórios emitidos por Corretoras de Valores sobre as empresas selecionadas; e (b) análise dos dados através da abordagem MDSO (Most Different Similar Outcome) da Qualitative Comparative Analysis (QCA). A metodologia permite tratar causalidade complexa com pouco número de casos. Neste estudo, possibilitou reduzir dezenove variáveis a poucas causas comuns e conjuntamente necessárias ao desempenho de quinze empresas. Os resultados mostram três configurações alternativas ao alto desempenho. A primeira é formada por poucas imperfeições exploradas por concessões de serviços públicos. A segunda, por sua vez, é formada por empresas exclusivas, que fabricam bens com demanda crescente, heterogêneos e diferenciáveis. A terceira configuração faz-se por empresas gigantes, que fabricam e comercializam produtos com demanda inelástica e generalizada. Acumulam ativos que raramente se tornam obsoletos, formando poderosos monopólios ou oligopólios mundiais.

Benchmarking sustainable high performance companies.

This article examines various approaches to benchmarking and measuring sustainable performance in order to identify long-term high performance companies in South Africa. We set guidelines and select the criteria for benchmarking high performance. This benchmarking approach (based on the accessibility and reliability of standardized financial data) addresses the critical issues in the measurement of sustainable performance: benchmarking approaches, measuring strategic performance, finding the right guidelines for peer performance benchmarks, calibrating sustainability and long-term performance, and comparing individual high performers with the established benchmark. This study sheds light on the practical guidelines for and the benefit of benchmarking high performance. Forty-four peer performance benchmarks and clusters based on 166 Johannesburg Securities Exchange (JSE) listed companies were established. Furthermore, fourteen high and superior performers were identified on the basis of this benchmark process.

Who Gets Headhunted—and Who Gets Ahead?

Executive OverviewEmploying 44 in-depth interviews and examining a large multinational search firm's detailed records for 2,000 executives working for more than 800 corporations, this research finds that the executive search firm targets large, reputable, high-performing companies to recruit from, and identifies individual target executives on the basis of their job title rather than their accomplishments. Moreover, executives who agree to be considered for a search tend to come from less successful firms and have shorter tenures than those who are targeted but decline to be considered for a search. The search firm studied tends to help individuals move between industries but not across job functions or to new roles. This evidence-based research guides attention to a type of labor market intermediary that plays an increasingly important role in labor markets today, but has remained underexplored by academics.

A professional director's view – Interview with Kerry McDonald, President of the New Zealand Institute of Directors (2009-2010)

Clive had the privilege of speaking with Kerry in late March 2010. They covered a number of governance issues, and here are Kerry's thoughts.From a New Zealand perspective, but also with an eye on the US and UK, and to a lesser extent Australia, for me the overriding issue is that boards and Directors are not providing consistently strong leadership that adds value to businesses.Underneath that I think that there are three specific issues. Firstly, there is a real shortage of directors with a strong business background. These are the sort of people who have been senior executives or chief executives. They understand strategy and leadership in the broadest sense of the word, and they can lead people and organizations. They have been well trained to make decisions and understand how business decisions are made. Critically, they know about sustained business improvement and creating high performance companies – how to lead people and to use systems to increase productivity. So, if you are trying to recruit directors now in New Zealand, there is a very limited pool of people who have that real depth of business background. There are a lot of people who want to be directors and who are trained in accounting, law and other professions, but there is an increasing shortage of people with the real depth of business experience that is required.

A professional director's view – Interview with Kerry McDonald, President of the New Zealand Institute of Directors (2009-2010)

Clive had the privilege of speaking with Kerry in late March 2010. They covered a number of governance issues, and here are Kerry's thoughts.From a New Zealand perspective, but also with an eye on the US and UK, and to a lesser extent Australia, for me the overriding issue is that boards and Directors are not providing consistently strong leadership that adds value to businesses.Underneath that I think that there are three specific issues. Firstly, there is a real shortage of directors with a strong business background. These are the sort of people who have been senior executives or chief executives. They understand strategy and leadership in the broadest sense of the word, and they can lead people and organizations. They have been well trained to make decisions and understand how business decisions are made. Critically, they know about sustained business improvement and creating high performance companies – how to lead people and to use systems to increase productivity. So, if you are trying to recruit directors now in New Zealand, there is a very limited pool of people who have that real depth of business background. There are a lot of people who want to be directors and who are trained in accounting, law and other professions, but there is an increasing shortage of people with the real depth of business experience that is required.

Entry Mode Strategies and Performance of Japanese MNCs in Australia and New Zealand: the Role of Japanese Employees

This study investigates different entry modes and staffing practices, and their influence on performance in Japanese subsidiaries in Australia and New Zealand. Data from 275 Japanese subsidiaries were derived from the Toyo Keizai data bank of Japanese overseas investments (Kaigai Shinshutsu Kigyou Souran) for the period from 2003 to 2008. The major assumption of this paper is that Japanese multinational corporations (MNCs) use their staffing policies as a means of exerting more influence on performance combined with other factors such as experience, industry, and the type of ownership. The study reveals that within the sample Japanese subsidiaries in Australia have a higher percentage of high performance companies than in New Zealand. The existence of Japanese employees, ownership and industry are shown as predictors of performance.

Environmental disclosure and financial performance: An empirical study of Malaysia, Thailand and Singapore

This study was carried out to examine the relationship between environmental disclosure and financial performance among the companies in Malaysia, Singapore and Thailand that voluntarily disclose environmental information in their financial reports. Two hundred and fifty (250) companies listed in Bursa Malaysia, Singapore Stock Exchange and Thailand Stock Exchange were studied in the current study. From the 250 companies analyzed, 56 companies from Malaysia, 37 companies from Thailand and 15 companies from Singapore were identified as environmental reporting companies and included in the study's sample. The study hypothesizes that high performance companies are more likely to have detailed (that is, one paragraph or more) environmental disclosure. The results however suggest that the performance of the company has no relationship to the production of detailed or superficial (that is, a few sentences) environmental disclosure.