Non-financial Business Performance Research Articles

The Relationship between Cross-sectoral Partnership and Business Performance: Case of Bosnia and Herzegovina

The relationship between the civil and business sectors has intensified in the last few years, including cross-sectoral partnerships as part of corporate social responsibility. The authors examine the impact of these partnerships on the performance of 100 of the largest businesses in Bosnia and Herzegovina. Large companies were chosen because they are most likely to be involved with corporate social responsibility activities and cooperation with civil society organizations. Methodologically, the authors analyzed the effect of these partnerships on business performance using four Balanced Scorecard components - three non-financial and one financial performance. The research results show specific influences on non-financial business performance but not financial performance.

The Influence of the Qris Payment System on Business Performance Denpasar City MSMEs

This research was conducted in the context of technological developments and the important role of Financial Technology (Fintech) in encouraging financial inclusion and business growth in the Micro, Small and Medium Enterprises (MSME) sector. The background of this research is the era of industrial revolution 4.0 which has changed the global economic landscape with rapid changes in the fields of technology and information. The aim of this research is to investigate the effect of using the QRIS (Quick Response Code Indonesia Standard) payment system on the financial and non-financial business performance of MSME players. The research method used involved 75 respondents who were MSME actors. Data on respondent characteristics, use of QRIS, and business performance were evaluated. The research results show that the use of QRIS has a significant influence on the financial and non-financial business performance of MSME players. More than 80% of respondents who use QRIS well have good financial and non-financial business performance. The positive effects of using QRIS indicate that this technology can increase transaction efficiency, consumer convenience and MSME business growth.

The Impact of the Sustainable Entrepreneurship on Non-Financial Business Performance: A Study of Start-Up Business Owner's Perception in an Indonesian University

The purpose of this research was to examine the impact of Sustainable Entrepreneurship on Non-Financial Business Performance for Start-up Business Owners in an Indonesian University. In this study, three dimensions of Sustainable Entrepreneurship- including People, Profit, and Planet- were measured subjectively by applying an eight-item dimensional scale from Soto Acosta. For Non-financial business performance, three dimensions were explored; Relationships with suppliers, Net fluctuation of employees, Customer complaints were measured by a nineteen-item scale from Škerlavaj. All the constructs in the study were modified to adhere within the five-point Likert type scale. The research used an explanatory approach with quantitative statistical techniques such as Mean, Standard Deviation, and Multiple Regression analysis. The total sample was 105 business owners incorporated into a business incubator in a University. Based on the calculation of the descriptive statistical analysis, the average of each variable calculation on People, Profit, Planet and Non-financial Business Performance show that most respondents tend to agree about the implementation of sustainable business practices within their businesses. This is indicated by the results of the overall grand mean, in the interval >3-4. The effect of each independent variable on the dependent variable of Non-financial Business Performance which includes its sub-dimensions (Relationship with suppliers, Net fluctuation of employees and Customer complaints) was done by utilizing the F-test. From the results of multiple linear regression analysis, it concludes that all of the dependent variables can be significantly influenced by independent variables People, Profit, and Planet.

ANALYSIS OF NON-FINANCIAL BUSINESS PERFORMANCE FACTORS IN DRINKING WATER COMPANIES IN ACEH, INDONESIA

This study aims to analyze factors of non-financial business performance in drinking water companies in Aceh province, Indonesia. The subjects of this study were the regional drinking water companies in Aceh, totaling 210 people, aimed at the directors of the regional drinking water companies and heads of sections. The technique used was convenience sampling, while the data were analyzed using Pearson's correlation and multiple regression, and bootstrapping. This study also aimed to determine the significant positive direct effect and the indirect influence of human capital factors, environmental uncertainty, wealth, and organizational innovation on the performance of the Regional Drinking Water Company in Aceh Province. The results of the analysis obtained Composite Reliability values for all constructs are excellent, namely > 0.70, meaning that all construct indicators are reliable or meet the reliability test: (1) human resources with Composite Reliability is 0.862; (2) Environmental Uncertainty with Composite Reliability is 0.801; (3) Ambidexterity with Composite Reliability is 0.803; (4) Coping House Indicated Wealth Resources with Composite Reliability is 0.864; (5) Organizational Innovation with Composite Reliability of 0.876; and (6) performance with Composite Reliability of 0.879. The implication is that there is a positive and significant direct effect among the following variables: Human Capital, Environmental Uncertainty, Ambidexterity, Resource–Induced Coping Heuristics (RICH), and Organizational Innovation on the Performance of Employees of the Regional Drinking Water Company in Aceh Province. Keywords: Human Capital, Environmental Uncertainty, Ambidexterity, Resource–Induced Coping Heuristics, Organizational Innovation DOI： https://doi.org/10.35741/issn.0258-2724.58.1.18

Firm Performance and the Impact of Entrepreneurial Education and Entrepreneurial Competencies

Small and medium-sized enterprises (SMEs) are considered to be the world’s largest. They play a vital role as they create jobs and improve the living conditions of their local communities as they contribute to the country’s GDP growth. Due to their contributions to the nation’s economy, they have been given much attention in entrepreneurship. This paper aims to study the impact of entrepreneurial education and entrepreneurial competencies on small and medium enterprises’ performance. Entrepreneurship is a vital component of any successful business strategy. It can be used to overcome the uncertainties of today’s business environment. The roles of these two independent factors in the business environment are also more relevant to small businesses. The goal of this paper is to develop a framework that explores the performance of firms from the perspective of their entrepreneurial education and entrepreneurial competencies. The proposed framework aims to provide a comprehensive view of the factors that influence the performance of businesses. It shows that entrepreneurial education is the antecedent of competencies that can affect firm performance, where entrepreneurial competencies is treated as a mediating variable. In addition, this study explores the role of entrepreneurial education and entrepreneurial competencies in developing financial and non-financial business performance. The framework is based on the resource-based view, a constantly applied approach to the small business context to utilize strengths and weaknesses to achieve sustainable competitive advantage. The paper provides valuable insights into the entrepreneurial factors that businesses can consider when enhancing their performance. It also helps entrepreneurs in developing their entrepreneurial education and competencies to increase their chances of achieving better results in their businesses which in return can help to reduce the number of business failures and thus, boost the country’s economy.

Approaches of selected organisations in the Czech Republic to promoting the concept of sustainable development and corporate social responsibility

Sustainable development is a concept that is constantly evolving, being discussed at the global, national, and local levels, not only among individuals but also within organisations. However, the importance of this concept lies in its complexity. The article's main goal is to identify the approaches of selected Czech companies to promote the concept of sustainable development and evaluate the basic factors that impact competitiveness. The data were obtained based on quantitative research (questionnaire survey of data collection) in selected organisations (n = 179) and additional qualitative research in the form of individual interviews with representatives of agricultural enterprises (n = 8). Data were processed using chi-square tests and factor analysis to identify latent variables. Key approaches to promoting the concept of sustainable development include an emphasis on process approach, non-financial business performance, and sector stability. The basic factors for competitiveness are quality relationships with stakeholders and the implementation of an integrated management system.

Kompetensi Kewirausahaan para Knitting Entrepreneur terhadap Kinerja Usaha (Kasus pada Sentra Industri Rajut Binong Jati Bandung)

Abstract Micro, Small, and Medium Enterprises (MSMEs) as a business group that is proven to be able to survive in a situation of economic crisis. The existence of the ASEAN-China Free Trade Area agreement opens opportunities for MSME entrepreneurs to be able to develop but can also result in domestic products competing with products originating from China which is famous for its lower prices. This is also felt by knitting entrepreneurs at the Binong Jati Knitting Industry Center which can have an impact on the performance of their business. This study aims to see and analyze the relationship between financial competence and entrepreneurial competence on the business performance of non-knitting entrepreneurs at the Binong Jati Industrial Center, Bandung. This research uses quantitative methods and descriptive analysis methods. Sampling in this study is probability sampling with the type of simple random sampling with a number of respondents 78 knitting entrepreneurs in Binong Jati Rajut Industry Center. The data analysis method used in this study is Structural Equation Modeling (SEM) with data processing using SmartPLS. The results of this study indicate that entrepreneurial competence has a significant effect on the performance of financial ventures with a significant contribution of 59.4% and entrepreneurial competence also has a significant effect on non-financial business performance with a contribution of 45.8%.

An Empirical Study of Leadership and Non-Financial Business Performance of Brewery Industry in Nigeria

This study examined leadership and non-financial performance at the brewery industry in Nigeria. The study used cross-sectional survey research design to survey 736 senior and junior employees of the company. The Multifactor Leadership Questionnaire, job satisfaction scale, three-component commitment scale, and turnover intention scale was adopted to collect data. The participants were recruited through Survey Monkey. Stratified sampling was adopted to ensure representative sample. Three hypotheses were tested using Pearson’s correlation and hierarchical regression analysis. Findings of the study revealed that the three leadership styles are positively correlated with job satisfaction, and employee commitment. Also the three leadership style are negatively and statistical correlated with turnover intention. Cadre of employee (senior or junior employee) is a significant predictor of employee job satisfaction and commitment. Both age and years of experience on the job are significant predictor of employee turnover intention. On the basis of the aforementioned findings, this study concluded that the adoption of effective leadership style is critical to job satisfaction, employee commitment and turnover intention. It is recommended that leaders should adopt effective leadership style to foster employee job satisfaction and commitment with a view of lessen turnover intention.

ADAPTATION OF A COMPANY TO THE ENVIRONMENT AS A DETERMINANT OF BUSINESS PERFORMANCE

For many years, a sustainable competitive advantage has been an imperative in the business of a modern company. One of the most important factors in gaining a competitive advantage is the adaptation of the company to its external environment. The environment in which modern companies operate is dynamic, uncertain and complex, and it is to be expected that the ability to adapt will become the most important competitive advantage of the 21st century companies that will enable them to achieve better and improved performance. However, there is still a rather small number of scientific research that link the adaptation of a company to its environment with achieved financial and non-financial performance of a company. This paper aims at examining the implied relationship between so-called flexible companies, and financial and non-financial business performance measures. The results of the research indicate the existence of a positive relationship between companies with more dominant characteristics of adaptive companies and non-financial measures of business performance.

Redefining IT departments as strategic catalysts of competitive advantage

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings This research paper concentrates on the increasingly strategic nature of an IT department's decisions in our digitized economy. Surveying IT experts from multiple industries reveals that influential IT teams significantly drive both financial and non-financial business performance and competitive capacity; for example by applying new technology to increase customer service levels. Originality/value The briefing saves busy executives, strategists and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Transactional leadership, supply chain quality and business performance in the fast-moving consumer goods industry

Background: Literature provides evidence of how the fast-moving consumer goods (FMCG) industry has become a strategically important contributor to economic growth and competitiveness globally. However, this industry in South Africa faces consistent challenges that demand immediate attention and solutions. A potential area of intervention relates to how leadership practices can be applied to improve the quality and performance of FMCG supply chains in South Africa. Objectives: This study examined the link between transactional leadership, supply chain quality (SCQ) and business performance in the FMCG industry within Gauteng province, South Africa. Method: The research followed a quantitative approach in which data were collected through a survey targeting managers and professional employees of the FMCG industry in the Gauteng province. The collected data were analysed through descriptive statistics, exploratory factor analysis, Pearson correlations and regression analysis. Results: Two transactional leadership styles, namely contingent reward and management by expectation (active), were statistically significant in influencing SCQ. Passive-avoidant leadership did not predict SCQ. Supply chain quality was statistically significant in influencing both financial and non-financial business performance. Conclusion: The transactional leadership style is an important driver of SCQ within the FMCG industry. Supply chain quality is essential in stimulating optimum business performance within the FMCG industry.

Entrepreneurial orientation, entrepreneurial education and performance

PurposeKorean economy is demanding to change from an industrial society to an entrepreneurial society. It is asking for a generational change from the preexisting paradigms of such as labor consciousness, the concept of work and company management. Entrepreneurship is one of the key elements that will lead to a successful business performance under highly uncertain business conditions. The purpose of this paper is to examine the relationship between entrepreneurial orientation and business performance. Also, the authors look for the role of entrepreneurship education in the influence of entrepreneurial orientation on financial and nonfinancial business performance.Design/methodology/approachTo accomplish the purpose of this study, the authors carried out a survey targeting nascent entrepreneurs and total early-stage entrepreneurs with less than seven years of experience. Based on the Miller’s (1983) definition, a group of questions for entrepreneurial orientation, similar to Covin and Slevin (1989), were developed.FindingsFirst, among the subfactors of entrepreneurial orientation, it was clear that innovative progressiveness affected nonfinancial business performance. Second, risk-taking propensity did not influence both financial business performance and nonfinancial business performance. Third, entrepreneurship education had no connection with entrepreneurial orientation or business performance.Practical implicationsNonfinancial business performances are related with long-term goals and growth potential. Innovative proactiveness affects nonfinancial business performance. Thus, entrepreneurs should look for ways to promote their innovative proactiveness. Entrepreneurship education for experienced entrepreneurs is not as effective as that for students.Originality/valueIn the authors’ study, survey questionnaires were sent to 200 nascent and total early-stage entrepreneurs searching for business angel investments or entrepreneurship consultants in Korea. A total of 180 entrepreneurs answered the survey questions online. There are not so many valid studies examining the effect of entrepreneurship education for nascent and total early-stage entrepreneurs in Korea.

The usage and social capital of mobile phones and their effect on the performance of microenterprise: An empirical study

This study aims to uncover the impact of the information and communication capabilities of mobile phone use on the performance of microenterprises in Bangladesh. Data were collected from microenterprise owners through face-to-face interviews and a series of statistical analyses were used to assess the effects of mobile phone use. The results of the study show a significant direct relationship between mobile phone use, social capital, and the performance of microenterprises. Further investigation revealed that social capital and non-financial business performance variables are involved in the mediation process between the financial performance of microenterprises and the use of mobile phones. The novelty of this research lies in being the first to establish a high-level statistical relationship between the use of the mobile phone, its mediating factors, and the financial performance of microenterprises.

Qualitative Characteristics of Financial Reporting and Non-Financial Business Performance

The purpose of this article is to examine empirically, validate, and predict the reliability of the proposed relationship between the qualitative characteristics of financial reporting and non-financial business performance via the moderating role of the organizational demographic characteristics (type, size and experience). The article is based on primary data collected through a structured questionnaire from 239 out 328 of shareholdings companies in Jordan, and the single key respondents approach was employed. The quality of financial reporting was conceptualized by the IASB's framework fundamental qualitative characteristics (2008). The data were analyzed using structural equation modelling. The results showed that the magnitude and significance of the loading estimate indicate that the qualitative characteristics of financial reporting (i.e., relevance, understandability, faithful representation, comparability and timeliness) are significantly influence the non-financial business performance and the variation of relationship could be due to the demographic characteristics of the organizations (type, size, and experience). The article has important implications for accounting managers, auditors and financial practitioners and top managers in the surveyed companies and in similar organizations. The authors believe that the decision-makers of business organizations could benefit from this study's findings with a better understanding of the importance of the qualitative characteristics of financial reporting as well as their relationship with non-financial business performance.

Impact of Commitment to Business Ethics to Nonfinancial Business Performance

The article investigates the relationship between commitment to business ethics and nonfinancial business performance. Data of commitment to business ethics and nonfinancial business performance were collected from 100 participants through a questionnaire survey. The survey was conducted in 2015 in Croatian large and medium sized companies. The questionnaire for assessing commitment to business ethics contained nine different dimensions while the nonfinancial business performance contained three dimensions: client satisfaction, human resource management plus innovativeness and efficiency of business processes. Multiple regression methods were applied in the analysis. The empirical results of three multiple linear regression models show that certain dimension of commitment to business ethics had a positive influence on the nonfinancial performance of the companies. Motivation and rewarding policy for ethical behavior and responding to unethical behavior, as a dimension of commitment to business ethics, has distinctive effects on all three nonfinancial performance dimensions. It was also found that selecting suppliers based on the standards of ethics and compliance has a positive and strong influence on client satisfaction while using ethical criteria in the performance and efficiency evaluation of employees has a positive and significant influence on innovativeness and efficiency of business processes. This research leads to the conclusion that some dimensions of commitment to business ethics can be important predictors of nonfinancial business performance. Therefore, results of the research could be considered as valid motivation for further improvement of commitment to ethics in the business environment.

The influence of radical innovation culture on business performance in the Croatian manufacturing industry

The aim of this paper is to define the main subcomponents of radical innovation culture (RIC) and investigate their impact on non-financial business performance in the Croatian manufacturing industry. The influence of autonomy, cannibalisation, proactiveness and risk-taking on firm effectiveness, customer satisfaction and time-to-market was examined by PLS-SEM of quantitative data from a survey of 203 Croatian manufacturing firms. Results suggest that RIC subcomponents may be divided into two groups, according to their influence on business performance. The first group, consisting of autonomy and proactiveness, positively influenced business performance. However, the second group, consisting of risk-taking and cannibalisation, had no influence on business performance. Implications of the research contribute to understanding of radical innovation culture in transitional economies.

Business leaders’ views on the importance of strategic and dynamic capabilities for successful financial and non-financial business performance

Purpose – The purpose of this paper is to report on research that identifies the relationships that senior managers believe exist between capabilities and business success. In doing so, it addresses the need for more empirical research about the role of strategic and dynamic capabilities in organisational performance. It also highlights the critical strategic and dynamic capabilities that are most valuable for practising managers. Design/methodology/approach – A multi-method study was conducted. Eight types of strategic capability and ten types of dynamic capability commonly found in organisations were identified through consecutive literature review, web site content analysis and interviews with senior executives. A questionnaire survey was then used to ask senior officers of publicly listed Australian firms about the importance of each capability and financial and non-financial performance indicators. The relationship between capabilities and performance was measured by regression modelling. Findings – Good leadership with an innovative vision and selection and retention of good staff and developing their skills and capabilities were the stand out strategic capabilities. Strategic thinking about the big picture and the long-term and flexible leaders who can lead and manage adaptation to change were considered to be the most important dynamic capabilities. Strategic capabilities were more often associated with indicators of financial success, and dynamic capabilities were more often associated with non-financial measures of organisational performance. Originality/value – This is the first study to make a distinction between strategic and dynamic capabilities in examining the relationship between capabilities and business success. The results demonstrate that the distinction has both theoretical and practical value.

The effects of innovation-oriented mission statements on innovation performance and non-financial business performance

The innovation literature has given a great deal of attention to the antecedents of innovation performance within the firm. Although many multinational companies include innovation-related words in their mission statements, little effort has been devoted to the relationship between a mission statement and innovation performance. This study investigates how mission statements influence innovation performance and then tests the relationship between innovation performance and non-financial business performance. An empirical analysis was conducted on a sample of the Chinese high-tech industry. Those companies with innovation-orientated mission have better innovation performance than companies without. The results also show strong evidence that mission statements have a positive influence on innovation performance, especially when innovation-related words are present in the statements. The results also indicate that both the newness of a technology and its newness to market can significantly enhance corporate image and customer satisfaction and that is critical for firms to understand the appropriate time to launch new products. This study discusses the practical implications of this work for managers.

Market orientation and business performance: Evidence from franchising industry

This paper examines the relationships between top management factors, franchisor market orientation, competitive strategy, and business performance within the context of Korean franchisor companies. 156 food-service franchise firms provide the basis for this empirical investigation. Findings show that top management factors such as management emphasis and risk aversion can lead to market orientation. Franchisor market orientation was found to lead differentiation and cost strategies, which, in turn, increase financial and non-financial business performance. Also, market orientation directly increases financial and non-financial business performance. The context of the franchise industry differs from other industries, and this paper discusses the implications of these findings for researchers and managers in the franchise industry.

프로스포츠구단의 고객관계관리가 비재무적 경영성과에 미치는 영향

The purpose of this study is to suggest a strategic plan for maximizing business performance of professional sports teams through verifying the influence of such CRM success factors of professional sports teams on business performance. The subject group of this study consisted of thirty-three domestic mainstream professional sports teams across three types of group sports. The study was conducted using a questionnaire format survey and collected data was analyzed through the statistical and analysis programs SPSS(version 18.0). The results of this study were as following; First, among CRM success factors, customer orientation, and organizational culture and staff of professional sports teams significantly influence customer performance of non-financial business performance factors. However, CEO support and interdepartmental collaboration did not significantly influence customer performance. Second, Organizational culture and staff of professional sports teams significantly influence the education and training of non-financial business performance matters. Moreover, CEO support, customer orientation, and interdepartmental collaboration do significantly influence education and training. Third, culture and staffs, interdepartmental collaboration, and customer orientation of professional sports teams significantly influence growth of non-financial business performance. However, CEO support negatively influence on growth. Fourth, organizational culture and staffs, interdepartmental collaboration, and customer orientation of professional sports teams significantly influence internal operational processes relating to non-financial business performance, however, CEO support does not significantly influence internal operational processes. It can be concluded that the role of chief executive officer in professional spots team should be increased to maximize the business performance of professional sports team introducing and utilizing CRM.