Company Management Research Articles

Way to achieve sustainable benefits of ISO 9001 practices

PurposeThe primary aim of the current study is to validate the theoretical model presented by Demir (2021a, b, c) via empirical evidence. In this respect, the study intends to offer a holistic pathway for obtaining both external and internal advantages from the implementation of ISO 9001, with a particular emphasis on developing countries.Design/methodology/approachThe research utilized an empirical methodology to investigate the research objective. Data were collected from various sources, including employees and managers of the various companies. In this context, a model was developed, and 170 data points were collected from businesses in the Kurdistan region of Iraq in order to test the hypotheses in this model.FindingsAfter the collected data passed the reliability and validity test, the hypotheses designed were tested by applying the partial least squares method. When the results were examined, it was observed that organizational culture and organizational learning variables were the two key antecedents that these factors would emerge after applying ISO 9001 practices with discipline for a certain period of time and that organizational benefits could be obtained only as a result of them. Detailed results and suggestions were given to managers and theorists as a result of the analysis.Originality/valueThis study contributes to the literature as an empirical application of the theoretical work written by Demir in 2021. Demir's work, which produced a theoretical concept based on many empirical and theoretical studies done before, still needs much more empirical work in developing countries.

Measuring business impacts on the sustainability of European-listed firms

The Environmental, Social, and Governance (ESG) themes assume a central position in the foundation of business strategies and risk management for both private managers and financial institutions. Measuring the sustainability commitment of listed companies is required by regulators and Monetary Authorities and plays a pivotal role in the selection process for asset management companies. ESG ratings are used to assess the company’s commitment to sustainability. This paper explores how a firm business, measured by balance sheet data, influences the ESG rating. In particular, we focus on Europe, which countries first paved the way for the sustainable transformation of the economy through various policies and initiatives. We employ a Machine Learning approach to discern the non-linear relationships between ESG ratings and corporate data aiming to identify the prime factors influencing the ESG ratings. We can assess potential country or business sector-based discrepancies by selecting a sample containing firms listed on the major European indices (AEX, BEL, CAC, DAX, FTSE, FTSE-MIB, IBEX, OMX). We find that the firm size, measured by total assets, and the carbon intensity are the variables that most influence the ESG rating in countries where the economic sectors rely mainly on the business cycle and economic conditions. For companies operating in the technology, financials, and industrial sectors, the main ESG driver is the asset turnover ratio, which is a measure of the efficiency with which a company generates revenues, and the EBIT to revenue, which is a measure of the operating margin asset turnover and the Earnings Before Interest and Taxes (EBIT) to revenue ratio. We discover diverse factors affecting ESG ratings across various European countries, highlighting the impact of each nation’s policy on ESG commitment.

Taking ESG strategies for achieving profits: a dynamic panel data analysis

PurposeThe goal is to investigate the relationship between financial performance and environmental, social and governance (ESG) indicators and disclosures for a sample of Latin American firms.Design/methodology/approachDynamic panel data regressions are used to analyze a sample of 114 companies listed on the Latin American Integrated Market, MILA (Chile, Colombia, Mexico and Peru) for the period 2011–2020. The Altman Z-score and Piotroski F-score are used as indicators of the probability of default and comprehensive financial strength. Models are developed in which the relationship between economic value added (EVA) and Jensen’s alpha are evaluated against firms’ ESG practices.FindingsA direct relationship between ESG strategies and financial performance was found. Better practices and transparency in ESG are related to lower probability of bankruptcy, greater financial strength, greater EVA and superior risk-adjusted returns.Research limitations/implicationsESG data were obtained from the Bloomberg system based on a methodology that may differ from other sources. The sample covers four Latin American countries and large corporations. Independent variables were selected for their perceived validity, given their frequent use in previous studies.Practical implicationsEvidence for company management regarding the importance of strengthening ESG practices and reporting should be part of their balanced scorecards. For investors, the results support the importance of evaluating ESG practices in asset selection.Originality/valueThe present study is the first research to present empirical evidence on the relationship between ESG scores and disclosures for MILA countries, using a comprehensive set of financial performance indicators (Altman Z-scores, Piotroski F-scores, EVA and Jensen’s alpha).

GESTÃO DA MICRO E PEQUENA EMPRESA: DESAFIOS EMPRESARIAIS EM CENÁRIO DE CRISE DECORRENTE DA PANDEMIA DO COVID-19.

The main approach of this paper is to analyze the challenges imposed by the management of micro and small companies, considering the crisis scenario in a municipality in Minas Gerais. So it was approached as a research problem what are the challenges imposed on MSEs in a crisis scenario, resulting from the COVID-19 pandemic in a city in the interior of the state of Minas Gerais? Using the method of a bibliographic review to support the field research, which in turn was carried out through the application of face-to-face questionnaires to sixtyeight micro and small entrepreneurs in the municipality of Piumhi / MG, with non-probability sampling for accessibility and later analysis of the data collected in the questionnaires. The results showed the business profile and the issues that most impact the ventures in relation to issues related to restrictions and general changes due to the pandemic, and it was verified that online sales have been one of the resources most used by Micro and Small companies in the sector. business. Finally, the work with regard to the practical implications, had the possibility to identify the main effects on MSEs in a crisis scenario, indicating appropriate practices to be implemented by microentrepreneurs. Key words: MSE management; Crisis scenario; Business challenges

Research on Random Forest Model and Support Vector Machine Model in Financial Risk Early Warning of Listed Companies

On October 30, 2023, the Central Financial Work Conference was held in Beijing. One of the important contents of the meeting was to prevent and control financial market risks. Because the sustainable development of a company is closely related to the financial market , the company faces increasing financial risk challenges , and it is particularly urgent to establish and optimize an effective financial risk early warning mechanism. The establishment of a financial crisis early warning model can not only enable company managers to adjust the company's development strategy and direction in a timely manner, improve the company's performance, and reduce the company's financial risks, but also predict corporate financial crises, which can help investors evaluate the company's potential value and change the direction of investment. This paper takes the establishment of random forest model as the starting point . First, we understand the theoretical framework of financial risk of listed companies; second, we explain the theoretical basis and advantages of establishing random forest model; then, we deeply explore the theory and empirical analysis of risk indicators; then, we use support vector machine in the specific application of financial risk warning; finally , we get the theoretical analysis and empirical significance of its feature importance, as well as the limitations and future research directions of the method under the fusion of random forest model and support vector machine.

STRATEGIC MANAGEMENT OF HUMAN RESOURCES IN THE SPHERE OF ENTREPRENEURIAL ACTIVITY

The purpose of the article is to study the concepts of strategic management of human resources in the field of entrepreneurial activity. Strategic HRM builds the bridge between an organization’s business goals and the people who achieve them. In this tactical role, HR has a broader scope and must refocus its responsibilities. The focus becomes on equipping people to best support the direction in which the company is moving. These practices include hiring, promoting, and rewarding employees, creating and maintaining a high-performance business culture, and organizational design to add value and achieve competitive advantage. Strategic HRM focuses on creating a talent management system that manages behavior and culture to support the organization’s long-term business goals. HR has traditionally been considered an administrative function focused on specific tasks. It was distant from the activities of company management and was largely reactive. It met employee needs as they arose. However, it was not aware of where the company was going or anticipating what might happen. Traditional HRM answered employee questions about HR policies, but did not create policies based on the company's long-term goals or find ways to engage employees in them. With a strategic HRM plan, HR teams are more proactive because they are integrated into business strategies. They understand and are aligned with the company's goals. This involves planning and taking action to ensure the organization has the people it needs to achieve its goals. Gaining a competitive advantage - Knowing exactly where management wants to take the organization allows HR to focus on the skills and abilities employees need to do the work required to achieve the goal. Through effective talent management, training, and development, SHRM can result in a more competent and skilled workforce that will provide a competitive advantage over competitors. Adapting to change - A strategic approach to HRM means constantly looking to the future, allowing organizations to anticipate changes in the business environment and quickly adapt to them. Plans can be adjusted to take into account technological advances, changes in the market, or changing demographics within the company. In doing so, HR supports, motivates, and communicates with employees throughout the adjustments. Thus, the use of digital technologies in a company with young employees is a method of motivating and increasing the interest of young employees (especially Generation Z) in work. In addition, it is possible to note the positive impact of digitization of the personnel management process on the improvement of the company's HR brand.

A Review on Elizabeth Holmes and her Sinking Ship’s Backstory

The scandalous fraud of the Theranos company and every step taken by its founder, Elizabeth Holmes, is well known in the media. In order to learn more about this topic and identify areas in which the company's management has fallen short, a variety of articles, newsletters, and papers were examined. The whole story of this enterprise was told by carefully putting in context what happened to Holmes in the workplace and in her personal life. In college, when she met Balwani, a romantic partner and important member of Theranos' management, the Stanford dropout began working on her company idea. Both were convicted of offenses connected to this type of business management. Five essential questions, as outlined by Lafley & Martin (2023), encapsulate the decision cascade that should be incorporated into any business plan. This essay attempts to explain Theranos' decision-making process in light of these considerations, complementing it with the strategic view defined by Porter’s five forces. The facade of success that made it possible for investment to keep coming in while the technology did not make any progress was analysed too, divided into two parts: red flags and Elizabeth’s crafted discourse about the company. Through this article, it is easy to conclude that Theranos’ mismanagement was responsible for its collapse. With all that said, the following questions remain: Is there a bright future after a huge mistake? Perhaps a second attempt to help people with no ulterior motives? What will happen next? What can be expected?

The Connection of Archival Science with Graphology and Criminology Studies

Graphology is a branch of science used to try to determine a person’s individual characteristics and details about that person based on a person’s handwriting. It was first started by the French clergyman-archaeologist Jean-Hippolyte Michon in 1871 and its use area has expanded in Europe over time. The science of graphology is a useful method that can also be used to evaluate people’s emotional development, give people career advice for the future, and even provide psychological analysis. For example, it is known that many international company managers today use the science of graphology to evaluate the personal characteristics of job applicants during or after the interview stage. However, there are also criticisms that the science of graphology cannot always produce clear results. To put it more clearly, in the science of evidence (criminology), a broad consensus on the validity of graphology studies has not been reached. Based on this point, the benefits and shortcomings of graphology were analyzed in the study and evaluations were made about the place and importance of graphology in archival science. In addition, the impact of graphology science on archiving science has also been evaluated by focusing on the connection between criminology science. The study, which focuses on the contribution of graphology science to archiving and information and document management sciences in particular, was completed by making various suggestions to support future academic studies.

Regulating in-between (in)formality: institutionalising the private rental market in China’s urban villages

The governance of informal settlements in China – primarily urban villages – remains a persistent challenge. Recently, some urban village houses have been transformed into long-term rental apartments (LRAs). This highlights a potentially novel approach to addressing the longstanding informality issue, but how the rental market in urban villages has thus been reshaped remains unknown. Examining the case of Shenzhen’s Yuanfen Village through the lens of regulating informality, this paper reveals that (1) new renovations are facilitated by the intermediary management of LRA companies with government consent; (2) the renovation into LRAs involves a balancing process among stakeholders but leaves the illegal aspects untouched; and (3) while the renovation improves the living environment, low-income households are inevitably displaced. This study contributes to a theoretical and practical understanding of regulating informality by challenging the monolithic formal-informal dichotomy and connecting the conceptualization and materialization of continuous and dynamic property rights that enable new possibilities for effective and inclusive management of urban growth.

THE INFLUENCE OF AUDIT DELAY, SIZE OF PUBLIC ACCOUNTING FIRM, AUDIT OPINION, AND MANAGEMENT CHANGE ON AUDITOR SWITCHING

This study explores the impact of audit delay, the size of public accounting firms, audit opinions, and management changes on auditor switching among companies listed on the Indonesia Stock Exchange. The research aims to identify the key factors that influence a company's decision to switch auditors. Using logistic regression analysis and secondary data from financial reports, the study introduces a unique approach by simultaneously analyzing four independent variables, which is rarely done in prior studies. The results reveal that audit delay and management changes significantly affect auditor switching, while the size of public accounting firms and audit opinions do not have a significant impact. The findings suggest that operational and managerial factors play a more critical role in auditor switching decisions compared to financial factors. Theoretically, the study supports the relevance of agency theory in explaining auditor switching, particularly in addressing conflicts of interest between management and shareholders. Practically, these results provide valuable insights for company management when deciding to switch auditors and highlight the importance for regulators to implement policies that enhance transparency and audit quality, strengthening corporate governance practices in Indonesia.

Personality Traits and Employee Turnover in the Insurance Industry in Kenya

Aim: The aim of this study was to examine the relationship between personality traits and employee turnover in the Insurance Industry in Kenya. The study also aimed to evaluate the moderating effect of firm characteristics on the relationship between personality traits and employee turnover in the Insurance Industry in Kenya. Methods: This study adopted a combination of descriptive and correlational research designs. The insurance companies from which data was collected were the top 5 insurance companies based on market share in general insurance. The employees of those companies were drawn from the following cadres: middle-level managers, heads of departments, supervisors, and operational staff. This study utilized multi-stage sampling technique involving deliberate sampling and stratified random sampling. A sample size of 338 employees was used in the study and data was collected using a semi structured questionnaire. Descriptive analysis entailed means and standard deviations while inferential analysis entailed regression analysis. Results: Results showed that there was a positive and significant relationship between personality traits and employee turnover in the Insurance Industry in Kenya. It was also found that firm characteristics have no significant moderating effect on the relationship between personality traits and employee turnover in the Insurance Industry in Kenya Conclusion: The personality traits utilized in the management of employees by the organizational management in insurance firms determines the retention and turnover of employees in those companies. Recommendations: The management of insurance companies should increase the use of aptitude tests during recruitment to determine the personality traits of employees so that when they engage them in various jobs. Their personality traits would enhance the performance of their jobs and cause them to be retained in their jobs for a long period before thinking of going elsewhere and hence leading to insurance companies using lots of money on the high frequency of recruiting of employees.

The impact of cost leadership strategy and differentiation strategy on supply chain management efficiency

The present study aimed to investigate the impact of two of the most commonly used strategies (i.e., cost leadership strategy and differentiation strategy) on the supply chain management efficiency (SCME) of companies listed in Tehran Stock Exchange (TSE). The data about 215 companies were analyzed during 2014–2021. The sale per inventory ratio was used to calculate SCME. The study focused on cost leadership strategy and differentiation strategy. The results showed that cost leadership strategy and differentiation strategy have a significant and positive effect on SCME. Hypothesis testing based on the robustness checks confirmed these findings. In spite of the growing interest in supply chain management, there is little research on emerging economies compared to developed economies. There is also a significant gap of research on how business strategy could influence the performance of supply chains. The present findings will not only help company managers in developing countries, but due to the lack of similar research, they are of great help to managers in developed countries and the global community.

Multi-criteria group decision analytics for sustainable supplier relationship management in a focal manufacturing company

In the context of sustainable development, while the benefits of incorporating environmental, social, and governance (ESG) considerations into supplier management have been widely discussed in recent years, a significant gap in the literature remains. Specifically, there is a lack of a standardized decision analytics framework for ESG-oriented supplier relationship management (SRM) processes in the manufacturing sector. To address this gap, this study introduces a multi-criteria supplier analytics framework (MCSAF) towards sustainable SRM. Through referring traditional supplier evaluation criteria as well as emerging ESG criteria, a novel decision hierarchy for supplier segmentation is developed. The proposed system utilizes the Bayesian best-worst method and the Canopy-k-means clustering algorithm to formulate different supplier segments for strategic development. The proposed MCSAF has been successfully implemented in a German solar water pump manufacturer. The results show that the five highest-ranked criteria are ‘Quality’, ‘Impact and importance on product quality and business growth’, ‘Environmental policy/management’, ‘Customer and product responsibility’, and ‘Risk and crisis management’. 52 suppliers are categorized into five segments, leading to the formulation of ESG-enabled supplier development strategies are subsequently formulated. The successful implementation of the MCSAF showcases its effectiveness in advancing ESG practices in sustainable supplier management.

Visitor’s Perception towards Event Management in Kathmandu Valley

Background: Events are significant drivers of tourism and play a key role in the development and marketing of destinations. In Kathmandu Valley, the increasing trend of event organization has raised questions about visitor perceptions toward event management. However, no previous study has explored this topic in Nepal. Objective: The study aims to analyze visitor perceptions of event management in Kathmandu Valley, focusing on how affective engagement influences these perceptions and identifying areas for improvement. Method: An exploratory research design was adopted to uncover the realities of visitor perceptions. Quantitative data was collected from 343 respondents and analyzed using both descriptive and inferential statistics. Structural Equation Modeling (SEM) was employed to examine the relationships between variables. Result: The study found that affective engagement significantly impacts visitor perceptions. Attendees expect high-quality service from event companies and are likely to share their experiences on social media platforms like Facebook. Most respondents were between the ages of 21-30, indicating a strong youth interest in event attendance. The analysis revealed that one independent variable, affective engagement, had a significant effect on one hypothesis related to contingent factors, while another hypothesis was rejected. Conclusion: Event management companies in Kathmandu Valley should prioritize affective engagement, addressing attendees' emotions and feelings. Enhancing internal management practices can lead to better service delivery, addressing common issues such as overcrowding, location, and security. Additionally, adopting modern technologies could further attract and satisfy attendees, improving overall event experiences. Paper Types: Research Paper Key words: Event management, Planned behavior, Affective engagement, SEM, Quality of the event JEL Classification: C38, D9, N95, N3

Affective states and a firm’s performance: the mediating role of dynamic managerial capabilities

PurposeExtant research supports the importance of dynamic managerial capabilities in capturing managers’ individual roles in organisations’ adjustments to change. This paper develops a multidimensional scale for measuring dynamic managerial capabilities consisting of sensing, seizing and reconfiguration capacities that mediate between managers’ affective states and their firms’ performance.Design/methodology/approachThe scale is validated in a survey-based study among 204 managers in companies in the United States of America (USA). We applied a multiple regression model (a triple mediation) using each of DMCs’ three dimensions to test the effects of managers’ affective states on their firms’ performance.FindingsThe multidimensional construct of DMCs adds about 15 % of variance explained to a firm’s performance, as perceived by its managers. So managers’ affective states do have an impact on DMCs and, later, on their firms’ performance.Research limitations/implicationsWe show the impact of negative and positive affect on DMCs. We also show that DMCs’ three dimensions should be treated in a formative manner that advances discussion on DMCs and their role in a firm’s performance.Practical implicationsUnderstanding managers’ affective states helps incorporate “hot cognition” into firms’ strategising processes. Although both positive and negative emotions can be helpful, depending on the situation, positive affect is generally more valuable than negative affect as it relates to a firm’s performance.Originality/valueOur work proposes measuring DMCs based on Teece’s (2007) disaggregation of DMCs into sensing, seizing and reconfiguration capacities. We approach each of these dimensions separately and show that managers’ affective states influence each dimension differently.

A mixed-methods examination of fixed-object crashes among electric utility company fleet vehicles

IntroductionOne of the most common and serious types of crashes among all motor-vehicle users involves collisions with fixed objects. This type of crash occurs frequently among utility vehicle workers while driving for work. The overarching objective of this research was to improve the safety of electric utility company vehicle operators by determining the circumstances under which utility vehicles are involved in crashes with fixed objects and to provide recommendations to help drivers and utility fleet company management prevent these types of crashes. MethodsThe study incorporated a mixed methods approach and gathered information from structured interviews with safety managers at electric power companies and an analysis of utility vehicle crashes using data supplied by electric power companies and a statewide database in Michigan. ResultsMany factors were found to contribute to fixed-object crashes including engagement in secondary tasks and job productivity pressure. Information was organized and evaluated to develop 11 recommendations for countermeasure strategies that are directed at various levels within the system in which the drivers operate. DiscussionThis study was the first to explore fixed-object crashes among electric utility fleet vehicles. The findings are unique in that they provide insight into the safety practices in an industry that has received limited academic attention and highlight the need to place greater emphasis on road safety practices in the workplace. Practical applicationCountermeasures generated for this study are applicable to companies in which fleet driver safety is a primary concern.

Analysis of the Implementation of Standard Operating Procedures in Archives Management at PT Pelabuhan Indonesia (Persero)

This research was motivated by the application of Standard Operating Procedures (SOP) for archive management which was not yet effective when the researcher carried out practical field work activities carried out by employees. The aim of the research is to find out how the records management system works, how the records management SOP is implemented and how the effects of the records management SOP are implemented. This research uses a qualitative approach using observation, interviews and documentation methods. The data used in this research is primary data, namely data collected directly by researchers. Phenomenally, based on field observations, we see that space infrastructure is increasingly lacking in space, this is due to the increasing volume of archives. Meanwhile, during observations of archive sorting activities, several other practitioners felt confused about categorizing letters/documents that would be archived by different work units. With the Standard Operating Procedure indicators for archives, the application of SOPs to archive management and the influence of the application of SOPs to archive management. The results of this research conclude that the records management system is running well and in accordance with the applicable SOPs as its implementation is running well and even has a good impact on employee performance. Not only that, in terms of perceived obstacles, we also have good solutions to continually improve employee performance. This is one of the best steps in implementing records management in companies.

Cost Management in an Agro-Industrial Company in a District of Lambayeque

Cost management has positively impacted the accounting and tax processes of companies in Peru. The present research aimed to determine the factors in cost management in an agro-industrial company in a district of Lambayeque. The methodology was based on a quantitative approach and non-experimental design. The survey technique was used, and a Likert-type questionnaire related to the study variable was used as an instrument. These data collection means were answered by 30 workers of said company through a questionnaire of 15 questions corresponding to the study variable, which was validated by three experts on the subject. Obtaining as results, with respect to the variable, that there is a high level of factors in cost management with a percentage of 86.67%; following the dimensions such as the budget with a percentage of 86.67% at a high level; consequently, we have planning with 86.67% at a high level; finally, cost calculation with a percentage of 86.67% at a high level. Therefore, we infer that the budget, planning, and cost calculation are factors that affect cost management in an agro-industrial company in a district of Lambayeque.

Current compliance challenges and how to address them from an expert perspective

Compliance departments face a variety of challenges in these days. Constantly new legal requirements and new regulations give an idea of the problems compliance managers in companies are confronted with. The aim of this paper is not only to analyze the various challenges in the area of compliance, but also how these can be met in practice. The author uses the qualitative research approach of expert interviews and underpins the research with the theoretical derivation using the resource-based view (RBV) and dynamic capabilities approach. The results show that the experts' opinions on the challenges are largely in agreement, while the different ways in which the experts approach the problems suggest that there does not seem to be one right solution for tackling the issues in the future. It is particularly interesting that possible approaches such as "creativity”, “flexibility “and “agility" also correspond with the theoretical derivation of the topic, according to which dynamic capabilities seem to be decisive for companies' competitive advantage in an ever-changing environment. The paper contributes to a better understanding of the current compliance situation in practice and at the same time points out very interesting new research needs, e.g. how possible solutions to overcome compliance challenges could be implemented.

Changing Consumer Preferences in the Prefabricated Housing Sector in Hungary: Construction Companies' Experiences and Statistical Data on Consumer Behaviour

The study aims to explore the consumer behaviour of prefabricated house owners, by analysing the insights of 12 managers of domestic construction companies in Hungary. These interviews reveal consumer behaviour and value considerations in purchasing decisions. The study’s strength lies in the relevance of the interviewed firms, representing 20.45% of production value in domestic single-family housing construction in 2022, according to the Central Statistical Office. Data from three housing-related censuses further complements the interview findings. Despite the ecological advantages of technology, the surveyed consumers are characterised as self-conscious, prioritising self-interest factors such as price, speed, predictability, reliability, and low maintenance costs in their choices. The research also indicates that consumer resistance to the concept of prefabricated housing is diminishing, something that is most likely to be due to generational shifts.