Enterprise Life Cycle Research Articles

Systems engineering barriers to legacy system evolution: Legacy system assessment

AbstractThis study evaluates the effectiveness of common engineering processes in conducting system assessments, with a focus on legacy system assessments, which are currently a barrier to legacy system evolution. These processes include reverse systems engineering (RSE), which remains in its infancy, and more established processes such as software and hardware reverse engineering. The study assesses these methods to better understand their ability to define systems of interest and meet the criteria set by the four horsemen of traditional systems engineering, as defined by Rebovich and White, and the International Council of Systems Engineering. Additionally, RE techniques are reviewed to ensure that a formal, systems‐level process—with detailed steps and diagrams—is documented and accessible to systems or reverse engineers. Lastly, this investigation elucidates the ability of each reverse engineering process to discover, recover, or reproduce information pertaining to the systems of interest that is missing, incomplete, or outdated in documentation relevant to the development or operations of that system. This information can be used to better understand the areas of RSE that still need to be developed and aid in the maturation of a repeatable process that is applicable to legacy systems. The results of this study are expected to contribute to the further development of the Enterprise Lifecycle Model proposed by Terry and Chandrasekar.

The Effects of Government Subsidies and Tax Incentives on Technological Innovation: Based on the Enterprise Life Cycle Perspective

Government subsidies and tax relief are important means of national strategic regulation and control, which effectively promote the technological innovation and development of enterprises. With the effective implementation of the national innovation-driven development strategy in recent years, it is of great significance to fully stimulate the technological innovation activities of enterprises. To encourage technological innovation of enterprises, government departments have formulated a series of preferential policies and increased the support for enterprises, among which government subsidies and preferential tax policies have played an important role. Based on the perspective of the life cycle, this paper analyzes the impact of government subsidies and preferential tax policies on different stages of the enterprise life cycle based on theoretical analysis and practical investigation. This paper probes into the influence mechanism of government subsidies and tax incentives on promoting technological innovation of enterprises, and puts forward some suggestions to improve it, to provide ideas for the future development of enterprises.

Impact of voluntary environmental regulation on green innovation from the perspective of enterprise life cycle: evidence from China

From the perspective of enterprise life cycle, the impact of voluntary environmental regulation on enterprise green innovation was examined in this study based on the data of manufacturing enterprises listed on China’s A-share market from 2012 to 2021. The results indicate that: (1) voluntary environmental regulation has a significant positive impact on enterprise green innovation as a whole. (2) Among all stages of enterprise life cycle, voluntary environmental regulation has a significant impact on enterprise green innovation in the growth and maturity stages, but has a relatively small impact on enterprise green innovation in the formation and decline stages. (3) The results of a segmented sample study on this basis show that voluntary environmental regulation has heterogeneity in property rights and factor density in promoting enterprise green innovation. It significantly promotes green innovation by state-owned enterprises in the maturity stage, green innovation by non-state-owned enterprises in the maturity and decline stages, and green innovation by capital and technology intensive manufacturing enterprises, but have no significant impact on other types of enterprises. These research conclusions are expected to provide decision-making reference for improving the voluntary environmental regulation system and promoting the level of enterprise green innovation.

Impacts of digital transformation on enterprise innovation resilience: A study from China

Purpose: This study aims to investigate the impacts of digital transformation on enterprise innovation resilience, with a focus on understanding how digital transformation influences innovation resilience across different stages during the life cycle of an enterprise.Design/methodology/approach: Data were collected from Chinese A-share listed companies from 2012 to 2022. Industries with unique financial reporting characteristics, special treatment (ST) samples, and samples with missing data are excluded to obtain a final dataset of 18 304 observations. A regression model is employed to examine the dual effect of digital transformation on enterprise innovation resilience.Findings/results: The findings reveal a significant inverted U-shaped relationship between digital transformation and enterprise innovation resilience. For companies at different lifecycle stages, digital transformation significantly enhances innovation resilience during the growth phase. However, for mature and declining companies, digital transformation still exhibits an inverted U-shaped relationship with innovation resilience, albeit with a relatively lower empowerment effect during the decline phase.Practical implications: Enterprises are advised to leverage the positive effects of digital transformation on innovation resilience while avoiding the pitfalls of excessive digitisation. Flexibility in adapting digital transformation strategies according to the enterprise lifecycle stage is recommended. Furthermore, enterprises should prioritise the coordinated development of various factors contributing to innovation resilience.Originality/value: This study extends the examination of innovation resilience from macro-industry to micro-enterprise levels and provides insights into the dynamics of digital transformation effects on innovation resilience across different lifecycle stages. Additionally, it highlights the importance of considering multiple pathways through which digital transformation influences innovation resilience.

The impact of digital finance on technological innovation across enterprise life cycles in China

This study aims to fill a gap in our knowledge by analyzing how digital financing has affected technological innovation in China's firms across different growth phases. This article investigates the relationship between technological innovation efficiency and digital finance in China's A-share listed corporations between 2012 and 2022 using basic logistic modelling. Its main goal is to comprehend how digital finance affects these businesses' technological innovation efficiency from various angles. The study concludes that digital finance significantly improves the efficiency of technological innovation; more importantly, the Digital Finance Adoption Rate (DFAR) has a more significant influence than the Digital Finance Level (DFL). According to the Digital Transformation Maturity (DTM) scale, digital finance helps businesses transform digitally, increasing the effectiveness of technological innovation. State-owned businesses are more affected by the influence of digital finance on innovation efficiency than non-state-owned businesses. Other factors, including enterprise lifecycle, innovation investment, digital leadership, revenue strategies, and market rivalry, also shape the relationship between digital finance and technical innovation efficiency. To increase innovation efficiency, particularly in state-owned businesses, the study suggests expanding access to and adoption of digital finance. It also means leveraging elements such as enterprise lifecycle, innovation investment, digital leadership, revenue strategies, and market competition to spur more technological innovation. The impact of digital finance on technological innovation at different phases of organizational growth in China highlights the need for customized methods to harness its potential.

Digital finance, life cycle, and enterprise mergers and acquisitions

This study examine the relationship between digital finance and enterprise mergers and acquisitions. The study finds that: (1) Digital finance can significantly increase the probability of enterprise mergers and acquisitions; (2) The impact of digital finance on mergers and acquisitions varies across different enterprise life cycle stages, specifically in the growth and maturity stages, where the positive impact of digital finance on enterprise mergers and acquisitions is more significant; (3) The positive impact of digital finance on enterprise mergers and acquisitions ultimately significantly improves enterprise performance.

The Impact of Fintech on China's Corporate Financing Constraints - Analysis based on the perspective of enterprise life cycle

SMEs, as the cornerstone of the real economy, face greater financing difficulties in accessing traditional financial services, which constrains their further development. In recent years, with the rapid development of the digital economy and the continuous innovation of financial technology, new ideas and solutions have been provided to solve the financing difficulties of SMEs. This paper uses the financial and related data of A-share listed companies from 2010-2022 to construct a regression model and a moderating effect model, which are used to analyse the impact of fintech on financing constraints and the moderating role of life cycle in it. The findings of the study show that, on the whole, fintech significantly alleviates the financing constraints of Chinese enterprises, and the degree of financing constraints varies with the life cycle of the enterprises; further analysis of the moderating effect reveals that the life cycle of the enterprises in the growth and decline periods will play a positive moderating role in the financing constraints of the enterprises affected by fintech. After analysing the heterogeneity, it is found that the development of fintech in the eastern region has a stronger role in alleviating the financing constraints of SMEs, and the role of fintech in alleviating the financing constraints of enterprises with a low degree of science and technology is better than that of enterprises with high technology.

CEO’s Financial Background and Corporate Green Innovation

Innovation is the primary driving force for development, and enterprises, as the main drivers of innovation, are an important part of implementing the national innovation strategy. This paper, combining the perspective of the enterprise lifecycle, thoroughly examines the differential impact of the CEO’s financial background on green innovation in enterprises at different stages of the lifecycle. This study finds that the CEO’s financial background has a significant inhibitory effect on green innovation in enterprises, and this conclusion holds true after multiple robustness tests. From the perspective of the lifecycle, it is found that when enterprises are in the mature stage, the CEO’s financial background has a strong inhibitory effect on innovation output. The impact of the CEO’s financial background on green innovation output in the growth stage is relatively weak, while there is no significant impact on green innovation in the declining period. Furthermore, based on the enterprise lifecycle, it is found that the CEO’s financial background has a stronger inhibitory effect on green innovation in non-state-owned enterprises and high-tech industries. The research findings of this paper have important theoretical value and practical significance for promoting green innovation in enterprises and implementing the national innovation strategy.

Establishing a Big Data Driver for Digital Transformation, Supplier Concentration and Total Factor Productivity in Enterprises

<>Nowadays, various industries are increasingly investing in constructing big data platforms to achieve digitalisation. Digitalisation has become a critical factor in improving the efficiency and effectiveness of enterprises. This paper explores the influence of digital transformation (DIT) on corporate total factor productivity (TFP). Based on data from publicly listed enterprises in China from 2007 to 2022, this paper demonstrates that DIT significantly improves their TFP. Supplier concentration partially mediates the relationship between DIT and TFP. Furthermore, the enterprise life cycle moderates the impact of DIT on TFP. Specifically, during the growth stage, the influence of DIT on TFP is not significant. During the maturity and decline stages, DIT positively affects the TFP. The impact of DIT on TFP is particularly pronounced in enterprises in western China, as well as in large and high-tech enterprises. The paper examines whether, how and when DIT affect TFP. The findings contribute novel evidence that strategic DIT enable enterprise to improve TFP through decreased supplier concentration. For both scholars and practitioners, this research provides valuable insights into how digital transformation can pay dividends by improving overall productivity.<>

Leveraging Digital Twin in Automated High-Tech Production Management

The paper discusses industrial production management in an Industry 4.0 enterprise based on digital twins of manufacturing process and products. The principles of applying digital twins in the production cycle are defined. We present an example structure of an integrated automated production management system that includes the digital twins and a number of other systems. The functions of digital twins in such a system are indicated. The order of formation and development of digital twins in the course of the enterprise design and construction is considered. At the initial stage of collecting requirements and drawing up technical specifications for the enterprise design, we propose to create an approximate simulation model of the production cycle, which allows the feasibility assessment of key requirements. At the subsequent stages of the enterprise life cycle, the simulation model is enriched up to a full-fledged digital twin and augmented with other components of the management system. We show that the digital twin development can be performed at a high level of formal rigor and automation utilizing the mathematical device of category theory. For this purpose, the novel construction called flexible multicomma category is introduced, representing all possible enterprise architecture variants from a given viewpoint in the sense of the ISO/IEC/IEEE 42010 standard. A flexible multicomma is defined by a signature composed of functors that represent the architecture components from the selected viewpoint. We prove that a multicomma of any fixed shape derived from the signature is embedded into the flexible multicomma.

An Empirical Study of the Relationship Between Digital Transformation, Corporate Social Responsibility and Financial Performance

The article investigates the impact of corporate social responsibility (CSR) and digital transformation (DT) on corporate financial performance (CFP) indicators, as well as the moderating effect of DT on the relationship between CSR and CFP indicators. The study was conducted using Stata 17.0 software based on data (5709 observations) on 558 A-share listed manufacturing companies of the Shanghai and Shenzhen Stock for 2012-2021 (excluding financial and insurance companies, ST and ST* companies, as well as companies with incomplete data). The independent variable used in the modelling process is the CSR rating report of the Hexun website, indicators of which are reconstructed by dividing them into strategic CSR (shareholder responsibility, employee responsibility, customer responsibility) and altruistic CSR (environmental responsibility and social contribution). The dependent variable is 2 CFP indicators: return on equity (ROE) and TOBIN’s Q. The DT index is used as a moderating variable, for the calculation of which the texts of companies’ annual reports were segmented using the Python programming language and standardised data on the frequency of keywords in 4 dimensions: digital technology application, Internet business model, intelligent manufacturing and contemporary information system; the weights for each dimension index was determined using the entropy approach. The control variables are corporate assets (Size), financial leverage level (Lev), current ratio (Cur), firm growth (Gro), shareholding ratio of the largest shareholder (First) and technological innovation (RD) of companies. The study also considered the year and industry factors. To study the moderating effect of DT on the relationship between CSR and CFP indicators of companies in different situations, the grouping variables chosen were the ownership type (state-owned and non-state-owned companies), the enterprise lifecycle (cash flow portfolio method was used to identify its stages) and the degree of market competition (Herfindahl-Hirschman Index). The modelling is based on a fixed-effects regression model. The study found that both CSR and DT have a positive impact on CFP, and that DT moderates the relationship between CSR and CFP, indicating that integrating digital technologies with sustainable development strategies can enhance financial benefits. The study also highlights the importance of different dimensions of corporate social responsibility. A high level of digital transformation strengthens the promotion effect of strategic social responsibility on current and future financial success of companies. Meanwhile, the promotion effect of altruistic social responsibility on current financial performance is significant. Heterogeneity analysis shows that the positive moderating effect of digital transformation on the relationship between corporate social responsibility and financial performance mainly applies to private firms, firms in the mature stage, and firms with low market competition. The article offers practical advice for businesses seeking to use digital transformation to maximise economic and social value.

Analysis of occupational accidents for safety design.

Safety design covers proactive actions as it analyzes accident risks early in the enterprise life cycle, and considers the designer acting on accident prevention as a member of the construction team. This paper proposes an accident investigation to establish links between accident causes and design to support Prevention through Design (PtD) tools. This article analyzed more than a thousand severe and fatal accident cases in the construction sector. A systematic analysis method was structured based on descriptions of accident causes and measures that could be taken to avoid accidents. Analyzing the severe and fatal accidents, the safety measures implemented in the project design could avoid at least 23.6% of the events. As a result, the architectural and structural designs were more effective in accident prevention. The reference percentages and the design types that are more effective in preventing accidents are analyzed through a representative sample of the analysis of the accident. This research contributes to applying safety guidelines in design projects, directly assisting in project and construction management.

Green credit policy and enterprise carbon performance: evidence from China

ABSTRACT Exploring enterprise carbon performance (ECP) via green capital allocation is important for achieving the dual carbon goal. In this article, the impact of the green credit policy (GCP) on ECP is empirically examined using a difference-in-differences model. The results show that GCP significantly improves ECP, and this conclusion remains valid after a series of robustness tests. Low-carbon technology and carbon information disclosure are central transmission mechanisms that are positively adjusted by green consumption, environmental regulation, and marketisation degree. Furthermore, state-owned and declining enterprises are affected more strongly by GCP than non-state-owned, growing, and mature enterprises. The impact of GCP on ECP increases over the enterprise life cycle.

Interaction of Corporate Social Responsibility Reporting at the Crossroads of Green Innovation Performance and Firm Performance: The Moderating Role of the Enterprise Life Stage

This research delves into the intricate interplay between green innovation performance (GIP), firm performance (FP), and corporate social responsibility (CSR) reporting, leveraging enterprise life stage performance as a pivotal moderator. Analyzing a robust sample of 5450 firm-year observations spanning from 2015 to 2021, this study employs OLS regressions with panel data sourced from the CSMAR and HEXUN databases to validate prevailing research hypotheses. The findings underscore the pivotal role of CSR reporting in augmenting corporate value while concurrently mitigating inadequacies within the system. Moreover, this study uncovers a nuanced relationship between CSR reporting, GIP, and FP in the context of China, revealing a significant moderation effect attributed to the enterprise life cycle. These revelations carry profound implications for CSR reporting stakeholders, including academics, practitioners, and regulators. Notably, they provide valuable insights to authorities and boards of directors concerning the growth potential of enterprises and states. A distinctive facet of this study lies in its exploration of the moderating influence of an enterprise’s life stage on the relationship between CSR reporting and GIP or FP.

Uncovering the lifecycle carbon emissions and its reduction pathways: A case study of petroleum refining enterprise

The petroleum refining industry is considered energy-intensive and responsible for significant carbon emissions. This study applied both life cycle assessment and system dynamics to comprehensively analyze and simulate the factors that influence corporate carbon emissions. This analysis elucidates the complex interplay of mechanisms that can reduce corporate carbon emissions. This study also provides a deeper understanding of how these mechanisms can reduce emissions over time. The results show that the fuel combustion phase has the highest carbon intensity (0.25 tons CO2e/ton), followed by the industrial production phase (0.09 tons CO2e/ton) and the torch combustion phase (3.31E-04 tons CO2e/ton) throughout the life cycle of the sample enterprise. Notably, carbon emissions from the net purchased thermal energy are “negative,” meaning that steam thermal production from industrial processes may provide environmental benefits through the carbon cycle. Multi-scenario analysis shows that adjusting a single parameter will not achieve the “carbon neutrality” emissions reduction target for the sample enterprise. Instead, adjusting the energy structure and optimizing efficiency represents the first steps toward such a target. According to the comprehensive scenario, the sample enterprise will reach peak carbon emissions by 2025 and eventually achieve “carbon neutrality” by 2058.

Managing the efficiency and competitiveness of hotel, restaurant and tourism enterprises in Ukraine during the war

In each case, the tactics and strategy of management are complemented by other tools and mechanisms, depending on the conditions of accommodation, specialisation, and life cycle of a particular enterprise. However, the war has also led to the emergence of new circumstances for the functioning of hotel, restaurant and tourism enterprises. The purpose of the article is to substantiate and develop new and improve the existing directions, mechanisms and tools for managing the efficiency and competitiveness of hotel, restaurant and tourism enterprises in the context of war, taking into account military challenges and threats, possible reserves for relocation and spatial displacement of the tourism services market. In the process of writing the article, the following methods were used: historical and systemic approach; systemic and structural analysis and synthesis; statistical and economic, economic and mathematical, and ranking. As a result, new factors have been identified and the set of existing factors influencing the competitiveness of hotel, restaurant and tourism enterprises has been supplemented. It is found that these factors are both common and different. Thus, the growth of competitive advantages, efficiency and competitiveness is facilitated to a greater extent by: integration processes; quality of products and services; qualification of staff and management; use of digitalisation and marketing measures in the organisation and management of activities. Therefore, focusing on their support constitutes the strategic objectives and directions of efficiency and competitiveness management. At the same time, it is necessary to take into account the differences relating to the factors of location of hotels and restaurants (restaurants are preferable in very busy places, hotels – in quiet and peaceful places); hotel, restaurant and tourism enterprises – inclusive or exclusive services, authentic offers; seasonal demand, specially allocated time for rest, etc. The article emphasises that the continuation of Russia’s missile and bomb attacks on peaceful cities of Ukraine requires a corresponding intensification of security measures for the hotel, restaurant and tourism business. The results of the study can be used in managing the efficiency and competitiveness of hotel, restaurant and tourism enterprises, local governments, in the educational process of universities and colleges

Managing the efficiency and competitiveness of hotel, restaurant and tourism enterprises in Ukraine during the war

In each case, the tactics and strategy of management are complemented by other tools and mechanisms, depending on the conditions of accommodation, specialisation, and life cycle of a particular enterprise. However, the war has also led to the emergence of new circumstances for the functioning of hotel, restaurant and tourism enterprises. The purpose of the article is to substantiate and develop new and improve the existing directions, mechanisms and tools for managing the efficiency and competitiveness of hotel, restaurant and tourism enterprises in the context of war, taking into account military challenges and threats, possible reserves for relocation and spatial displacement of the tourism services market. In the process of writing the article, the following methods were used: historical and systemic approach; systemic and structural analysis and synthesis; statistical and economic, economic and mathematical, and ranking. As a result, new factors have been identified and the set of existing factors influencing the competitiveness of hotel, restaurant and tourism enterprises has been supplemented. It is found that these factors are both common and different. Thus, the growth of competitive advantages, efficiency and competitiveness is facilitated to a greater extent by: integration processes; quality of products and services; qualification of staff and management; use of digitalisation and marketing measures in the organisation and management of activities. Therefore, focusing on their support constitutes the strategic objectives and directions of efficiency and competitiveness management. At the same time, it is necessary to take into account the differences relating to the factors of location of hotels and restaurants (restaurants are preferable in very busy places, hotels – in quiet and peaceful places); hotel, restaurant and tourism enterprises – inclusive or exclusive services, authentic offers; seasonal demand, specially allocated time for rest, etc. The article emphasises that the continuation of Russia's missile and bomb attacks on peaceful cities of Ukraine requires a corresponding intensification of security measures for the hotel, restaurant and tourism business. The results of the study can be used in managing the efficiency and competitiveness of hotel, restaurant and tourism enterprises, local governments, in the educational process of universities and colleges

How Excess Goodwill Affects Firms' Green Innovation Capacity: A Firm Life Cycle-Based Perspective

Based on the 2016-2021 Chinese A-share listing data, this paper empirically explores the impact of corporate excess goodwill on the level of green innovation and its mechanism of action, taking into account the life cycle status of enterprises. It is found that excess goodwill has a significant negative impact on the level of corporate green innovation, and this conclusion still holds after the robustness test using multiple methods. The adjustment analysis shows that the enterprise life cycle delay weakens excess goodwill's inhibitory effect on green innovation. Heterogeneity analysis shows a more significant negative effect of excess goodwill on corporate green innovation among companies that are not heavy polluters, in the eastern region, and with high technology. The research in this paper is instructive for promoting corporate reform and governance to achieve peak carbon attainment and carbon neutrality.

Analysis of Management Entropy Based on the Law of Enterprise Lifecycle

According to Darwin's theory of evolution, life continuously evolves through natural selection and adaptation to the environment. Similarly, businesses evolve by continually adjusting and optimizing their structures and functions in the face of market competition and environmental changes. Therefore, businesses can be seen as organic entities with lifecycles similar to those of living organisms. In general, the lifecycle of a business can be divided into five stages: the founding stage, growth stage, maturity stage, decline stage, and extinction stage. Each stage has its specific internal and external environmental conditions, along with corresponding opportunities and risks. To survive and thrive in each of these stages, businesses need to formulate appropriate strategies and measures based on their specific circumstances.This article will analyze the issue of managerial entropy that businesses face at different stages from the perspective of the laws governing the business lifecycle. Managerial entropy refers to the disordered state that arises within a business due to factors such as information asymmetry, poor communication, and coordination challenges, leading to reduced efficiency, resource waste, and decreased innovation capacity. Managerial entropy is one of the critical factors influencing the survival and development of businesses and deserves close attention. The article will propose solutions tailored to the managerial entropy issues at each stage, aiming to help businesses reduce the impact of managerial entropy and extend their lifecycles.

Features and challenges of the modern labor market

In recent decades, there has been a dynamic transformation of the socio-economic eco-system, in general and its components in particular. Cardinal changes in the values and motives of economic decisions, the compression of the time continuum of the life cycle of products and enterprises are reflected in the financial and resource market derived from the commodity market. The employer-employee relationship is changing, there are more disagreements, since the requirements of the organization and the expectations of the applicant often differ significantly. Modern employers do not have enough professional competencies of employees, it is important to combine a range of knowledge, skills and personal qualities. The author of this article presents the features of the modern labor market, the results of employers’ research on the demand for specialists. The work methodology is based on scientific research methods of cognition, such as statistical and comparative analyzes, questionnaires and the method of expert assessments, a systematic approach. The study reveals the indispensability of such employees’ qualities as scale and critical thinking, a high level of stress tolerance, the ability to combine the roles of a leader and a team member depending on the task, skills for evaluating large information arrays and digital competencies. The conclusion is formulated about the need for applicants to strengthen not only hard skills, but also to constantly develop soft skills to compete against the challenges of the labor market.