Non-financial Performance Research Articles

Do entrepreneurs mistreat probationary employees? The mediating role of perceived ethical climate and moderating roles of core job characteristics

PurposeRecent high-profile ethical scandals in start-up organizations have made people wonder whether entrepreneurship may cultivate a work environment with less emphasis on ethics. This study examined a psychological process about how an organization’s entrepreneurial orientation (EO) can affect its treatment of probationary employees, a vulnerable yet understudied group of workers.Design/methodology/approachThe authors recruited 241 participants through Amazon Mechanical Turk. They answered an online survey about their experiences as probationary employees.FindingsThis study found that job feedback and meaning moderated the relationship between EO and ethical climate, such that this relationship was statistically significant and positive only among participants who reported high levels of feedback and job meaning. Ethical climate, in turn, was found to be related to a reduction in workplace incivility experienced by probationary employees. The indirect effect of EO on incivility via ethical climate was contingent on job feedback and meaning.Research limitations/implicationsThis study extends the discussion on the entrepreneurial context, adds to EO literature with findings on its indirect effect on nonfinancial performance and reinforces institutional theory through job characteristics’ moderating roles. However, a methodological limitation is conducting a cross-sectional single-source survey due to limited access to firms and probationary employees, considering the hidden population involved.Practical implicationsThis study found no evidence of probationary employee exploitation in high EO organizations. Job seekers should embrace probationary work at start-ups. Entrepreneurial leaders should balance being proactive, innovative and caring toward employees.Originality/valueIt is debatable whether entrepreneurship leads to unethical organizational conduct. By studying a vulnerable group of employees, the authors discovered that EO, when paired with favorable job design factors, can create a more ethical workplace where temporary talents are treated with dignity and respect.

Management Accounting Research Opportunities in Climate Change Reporting

ABSTRACT Climate risk is a critically important challenge for society. Current accounting-related efforts include initiatives by regulators to promulgate climate risk disclosure standards, focusing on disclosure of nonfinancial and forward-looking information. These proposals are certain to evolve over time. With management accounting research’s focus on decision-making and performance evaluation using nonfinancial performance measures and effective management control systems, management accounting researchers are in a strong position to provide unique input into the ongoing development of these reporting standards. In this commentary, we discuss topics where management accounting researchers can contribute to the standard-setting efforts. Contributing to these efforts requires a change in mindset for management accounting researchers from primarily focusing on internal and potentially idiosyncratic decision-makers to a broader audience that includes external providers of capital. However, the reward to doing so is participation in interesting and important research avenues that can have a real impact on society. JEL Classifications: M49; M48; M14.

Impact of Social Media Usage on Financial and Non-Financial Performance of Organization through Social CRM

Social media usage improves Social Customer Relationship Management (CRM) is highly important for modern firms to create value for business after the rapid growth of technology adoption by customers. Studies on social media and organizational performance are limited so the present study has to extend this topic for a brief analysis of this domain. Hence, the current study aims to investigate further how social media usage benefits both financial and non-financial aspects of organizational performance through social CRM. A quantitative cross-sectional research design was carried out to collect the primary information using a structured questionnaire using two separate surveys; one was filled out by the top management of the organizations while the other was filled out by the respective customer of the organizations from different sectors of Pakistan which were also active on Facebook and lastly each 209 participants in both surveys were selected for data analysis. AMOS and Smart PLS were employed to test this proposed model. All findings of this study are found significantly positive and the social CRM acts as a positive mediator between the direct association of social media usage and organizational performance. Furthermore, the present study offers marketers and businessmen to explain the linkage of CRM with advancing social media technologies to improve organizational performance either financial or non-financial performance.

스타트업의 ESG경영지표 개발 및 활용에 대한 연구

The expansion of start-up standards for corporate value from technology and idea business models to eco-friendly management has emerged as an important issue in recent research. Interest in abnormal climate phenomena and corporate social responsibility due to global warming is being studied as important issues in business administration, and ESG management strategies for sustainable management are being studied by developing policies and indicators around advanced countries as a solution. In particular, companies themselves are also releasing sustainable research reports by strengthening ESG indicators from existing management evaluation indicators as a countermeasure for sustainable management and risk management. However, there is still a lack of systematic and standardized research on ESG management indicators, and more than 600 domestic and foreign evaluations are being conducted by industry and company. Against this background, positive expectations and negative concerns for ESG evaluation indicators coexist. Indicators tailored to the need for ESG management, including strengthening the demand for non-financial performance of companies, establishing investment standards through ESG evaluation, and due diligence on supply chains, will have important implications. While no systematic standards have been established for domestic and international ESG management indicators, research on start-up perceptions of ESG management and ESG management evaluation indicators is still in its infancy. The purpose of this study is to develop ESG indicators suitable for start-up companies and SMEs based on domestic and international prior studies and ESG indicators. To this end, ESG indicators of start-up companies were derived for ESG experts, and detailed indicators were developed by dividing them into three stages: upper, middle, and lower indicators through AHP analysis.
 The results of the study are as follows. First, the environment was evaluated as the most important factor in the importance and priority of the startup ESG management indicators of the ESG expert group in order of environment, social, and governance. The overall importance of the median indicators was in the order of industry and product safety, second place environmentally friendly production, and third place waste pollutant emission, and the overall importance of the sub-indicators was first place for the CEO's willingness to practice, second place for product safety, third place for greenhouse gas emissions and verification, fourth place for the industrial safety and health promotion system/industrial accident rate, and top five for ESG management and information disclosure. These findings can present baseline indicators that should be recognized or performed first to start-up executives considering ESG management, and can be meaningful in contributing to start-up ESG management and ESG system construction.

The Integral Role of Accounting in Organizational Dynamics and Decision-Making

Purpose: The purpose of this research is to explore the integral role of accounting in organizational dynamics and decision-making processes. Research Design and Methodology: The study employs qualitative research methodology, conducting a systematic review of literature. The research design involves structured searches across academic databases and online repositories, utilizing predefined search terms and inclusion criteria. The primary data collection method is the systematic review of literature, supplemented by citation chaining and reference list scanning to enhance the breadth and depth of the literature review. Findings and Discussion: The findings reveal that accounting plays multifaceted roles in organizational dynamics, including financial management, governance, risk management, and strategic decision-making. Transparent and reliable financial reporting serves as a foundation for stakeholders to assess organizational performance and make informed decisions. Integration of non-financial performance measures alongside financial metrics enhances decision-making effectiveness and strategic alignment. Implications: The study underscores the importance of continuous adaptation and innovation in accounting practices to navigate evolving business environments successfully. Moreover, technological advancements, globalization, and regulatory reforms significantly impact accounting practices and organizational dynamics, presenting both opportunities and challenges.

SISTEM INFORMASI AKUNTANSI, KINERJA NON-KEUANGAN DAN KINERJA KEUANGAN DI PERUSAHAAN KECIL: PENELITIAN EMPIRIS BERDASARKAN GENDER

AIS is a mandatory tool for managers to have a competitive advantage amidst rapid technological advances. Business competition is conducted based on financial as well as non-financial performance indicators. The research objective was to examine gender differences in the use of AIS and non-financial and financial performance measures by SMEs for better performance. AIS requirement, AIS capacity, and non-financial and financial performance are measured using a questionnaire. AIS alignment is measured by multiplying the AIS requirement items by the AIS capacity. The hypothesis was tested using multiple linear regression to determine the effect of AIS requirement and AIS capacity on AIS alignment and the effect of AIS alignment on SME financial and non-financial performance. Different tests are used to examine differences in AIS alignment based on gender and differences in financial and non-financial performance based on gender. AIS requirement and AIS capacities have a significant influence on AIS alignment. AIS alignment does not have a significant impact on SME non-financial performance or financial performance. Women have a more positive perception of the non-financial and financial performance of SMEs than men. There is no significant difference in perception between men and women regarding AIS alignment. Research suggestions include getting a larger and more representative sample of small companies. The research is expected to provide guidance for SMEs in choosing an appropriate AIS to face a competitive business environment and serve as a basis for further research

Construction of Economic Management Performance Model of Mining Enterprises under the Background of Supply-side Reform

The proposal of supply-side structural reform measures has ushered in new development opportunities for mining enterprises in the bottleneck period. As a result, a model for evaluating the economic management performance of mining firms at the new performance level must be established. This paper suggests an assessment model for the economic management of mining firms against the backdrop of supply-side reform in light of this. This study reasonably incorporated financial and non-financial performance indicators, constructed the Economic Management Performance (EMP) evaluation index system of mining enterprises, and created an economic management performance evaluation model of mining enterprises based on the BP neural network and analytic hierarchy process. The study selected the relevant data of five mining companies A, B, C, D, and E from 2017 to 2022 as the research object, verified the effectiveness of the model, and analyzed the performance evaluation results of the companies. The research results show that the model constructed in this study can evaluate the economic management performance level of enterprises within a reasonable range (the mean relative error is 1.98%). Since 2017, the comprehensive performance level of these five mining companies has gradually declined. But thanks to the supply-side reform, the comprehensive performance has gradually recovered after 2022 and among the five mining companies, company A has always been at the performance level way ahead. Overall, the model developed in this research has strong operability and practicability and can be utilized more effectively to forecast the mining industry’s potential for future growth.

The Effects of Governance Practices on the Performance of the Sri Lankan Public Sector Development Projects

The use of Project Governance Practices (PGPs) is increasingly taking a substantial stage in developing economies, particularly in a newly industrializing nation like Sri Lanka where public sector development projects have been implemented to expedite the nation's growth and prosperity. As it is essential to lay a transparent and tangible foundation for an effective public sector that can be sustained, the paper focuses on the significance of PGPs in enhancing the performance of the Sri Lankan public sector development initiatives. Structuring, normalizing, facilitating, and post-conflict-sensitive variables were used to measure the PGPs, whereas financial and non-financial performance measures were employed to evaluate the project performance. The researcher conducted direct observations and administered a comprehensive Likert-scaled questionnaire to 518 project administrators involved in various Sri Lankan public sector development projects, specifically focusing on projects related to irrigation, roads and highways, water and sanitation, and other infrastructure developmental projects. The data was analyzed using the structural equation modeling through the AMOS software. The results showed that PGPs created a considerable improvement in project performance, which increased support for expanding economic prosperity through balanced development strategies and sustainability-based policy formation.
 Keywords: Performance, Project governance practices, Public sector development projects, Sri Lanka

Does Audit Committee Influence Integrate Reporting Quality? Empirical Evidence from Emerging Market

Integrated reporting is the latest novelty in the corporate reporting field. An integrated report represents and clarifies the financial and non-financial performance of the company, environment, society, and governance, and helps in compiling information that are appropriate with the performance and impact of the company to give a clear and comprehensive picture of the opportunities and risks that may face the company that leads to the creation of value (IIRC, 2021). IR involves merging non-financial and financial information in the corporate annual report which provides investors and stakeholders a holistic picture of management's view on sustainability initiatives, governance, social, and economic (Ahmed Haji & Anifowose, 2016; Churet & Eccles, 2014; Darus et al., 2019; Hamad et al., 2020). Furthermore, IR is often known to be a higher quality reporting that establishes ties between a company's societal, environmental, and economic aspects (Adhariani & de Villiers, 2019; Dilling & Caykoylu, 2019; Qaderi et al., 2021; Stubbs & Higgins, 2014; Vitolla et al., 2020). Previous studies have extensively investigated IR adoption (Darus et al., 2019; Ghani et al., 2018; Hamad et al., 2020; Masduki & Mohd Zaid, 2019; Qaderi et al., 2021; 2022). However, there are limited papers investigating the IR quality (IRQ) in Malaysia. Due to this considerable gap in the research, it is vital to investigate the main factors that can explain the quality of integrated reporting in Malaysia. Studies by Alzeban (2020) and Hassan et al (2019) show that audit committee contributes to corporate reporting quality due to its significant role in internal control mechanism of a company. Therefore, the objective of this research is to investigate the influence of audit committee characteristics on integrated reporting quality. Keywords: Integrated reporting quality, audit committee, Malaysia

Analysis of The Balanced Scorecard Approach For Assessing The Financial and Non-Financial Performance Measurement

Analysis of The Balanced Scorecard Approach For Assessing The Financial and Non-Financial Performance Measurement

Factors Affecting Financial and Non-Financial Performance of MSMEs Through The Use of Social Media

Factors Affecting Financial and Non-Financial Performance of MSMEs Through The Use of Social Media

Sustainable Assessment of the Environmental Activities of Major Cosmetics and Personal Care Companies

The cosmetics and personal care industry has, by its nature, contributed to global environmental issues such as climate change, waste, water scarcity, habitat destruction, and water and air pollution. Therefore, it is more important than ever for the cosmetics and personal care companies to be responsible and proactive in addressing environmental issues. Meanwhile, the complexity of the cosmetics and personal care industry has never been greater. The roles of not only brand companies but also OEM/ODM and retail companies are becoming increasingly important, and the boundaries are also collapsing. Despite the urgency of environmental issues, there has been a lack of research on specific and practical environmental activities of cosmetics and personal care companies, and the environmental responsibilities of OEM/ODM companies and retailers have been overlooked. Therefore, the need for this study was recognized. The purpose of this study was to expand the scope of assessment to include not only cosmetics brand companies but also OEM/ODM companies and retailers in general to identify the actual and concrete environmental activities being carried out. Therefore, in this study, the keywords cosmetics, environmental, eco-friendly, and sustainable, which have recently become the topics of discussion, were empirically analyzed. This study selected and analyzed 18 out of 28 annual reports, nonfinancial statements, and sustainability reports of 16 cosmetics- and personal-care-related companies. In addition, 456 articles were found through PubMed, Google Scholar, Google, and Scopus, and the final 108 articles were referenced using the PRISMA flow chart. The novelty of this study is, first, in the fact that it identified the actual and specific strategies and practices of cosmetics and personal care companies with respect to environmental issues. Second, it established common standards for environmental issues and compared corporate environmental activities. Third, this study included OEM/ODM companies and retailers, whose influence has been increasing in recent years, to understand the status of eco-friendly activities across the industry. This study makes a practical contribution by encouraging environmental activities in the cosmetics industry through comparing and evaluating the specific and practical environmental activities of not only brand companies but also OEM/ODM companies and retailers and laying the foundation for the development of a framework for environmental assessment. In addition, this study recognizes the need to study the environmental activity behavior of the cosmetics industry as a whole and contributes to the study of cosmetics companies’ environmental activities by suggesting how to use companies’ nonfinancial performance reports as materials to assess their actual environmental activities.

The Influence of Innovativeness on the Financial and Non-Financial Performance of Retail Smes in Tshwane Metropole

ABSTRACT: SMEs play a crucial role in the economy by creating jobs, alleviating poverty, innovating, and driving economic growth and development. However, they frequently fail due to business challenges such as poor performance. Grounded in the innovation literature and the Resource-Based View Theory (RBV), this study empirically investigates the influence of innovativeness as a dimension of entrepreneurial orientation (EO) on retail SMEs' performance indicators (financial and non-financial performance) in Tshwane Metropolitan Municipality. Saunders' research onion model was used to frame the methodology. The study adopted a quantitative research design while following a deductive approach. A survey method was used as a research strategy to collect data from 196 SMEs with the measuring instrument adapted from recent literature and from previously tested instruments. The questionnaire used a five-point Likert scale, ranging from 1 = strongly disagree, 2 = disagree, 3 = neutral, 4 = disagree, 5 = strongly agree. The "neutral" response was added to assure respondents that they need not feel compelled to answer every question. The Statistical Package for the Social Sciences (SPSS) was used for data analysis. The results revealed that innovativeness positively and significantly affects both financial and non-financial SMEs' performance directly and that representatives (managers/owners) of Tshwane Metropolitan Municipality retail SMEs believe that if their team is open to new ideas and changes, the implementation of innovation in practice within SMEs will rise. Furthermore, managers recognize and value fresh ideas to encourage staff to "think outside the box" and share their creativity, which facilitates and encourages the actual implementation of innovation. Lastly, the study found that the more open SME managers/owners are to innovation, accept new ideas, and support new resources for innovation, the higher the innovation will take place in the organization. Operationalization of the vague term innovativeness is also a contribution to the literature. This research is crucial for developing countries and regions such as the Tshwane Metropolitan Municipality, Gauteng province, South Africa, wherein such studies are lacking, despite the retail sector's significant role in this country's economy. SME managers/owners must regard innovation as an intrinsic aspect of their strategy in this line.

제약․바이오 기업의 경영전략 유형이 비재무적 성과에 미치는 영향：기술혁신 활동의 조절 효과를 고려하여

제약․바이오 기업의 경영전략 유형이 비재무적 성과에 미치는 영향：기술혁신 활동의 조절 효과를 고려하여

Research on the Motivation and Performance of Midea Group's Merger and Acquisition of KUKA

Merger and acquisition (M&A) is one of the most important investment methods for enterprises. In recent years, sales in the household appliance manufacturing industry have been slowing down gradually. Facing fierce market competition, many household appliance enterprises try to find a new profit growth point through M&A. This paper takes Midea Group's M&A of KUKA as an example to analyze the motivation of M&A through the dimensions of industry and enterprise. It also systematically evaluates the financial and non-financial performance of Midea Group before and after the M&A. It finds that this M&A effectively mitigated the impact of industry cyclicity on Midea Group's financial performance. However, overall, the performance indicators are not significantly improved after the M&A. Therefore, this paper suggests that Midea Group slow down the speed of M&A, pay attention to the existing resources integration, and strengthen the training of professional talents.

Pengaruh Penerapan Balanced Scorecard terhadap Kinerja Manajemen di BPRS PNM Mentari Garut

This research is motivated by the weakness of the company's performance measurement system that focuses on financial aspects and ignores non-financial performance, so a performance measurement model is made using the balanced scorecard. This study aims to determine how the effect of the balanced scorecard on management performance in BPRS PNM Mentari Garut. The object of this research is to measure management performance. This type of research is quantitative associative. Data collection techniques in the form of observation, interviews, literature study and questionnaires. While the population is all employees, amounting to 42 people. The results showed that there was no influence of the financial perspective on management performance with the results of the t-test value tcount < ttable (1,933 < 2,021), there was a significant influence between the customer perspective on management performance and the results of the t test value tcount > ttable (3.182 > 2.021), there is a significant effect between the internal business process perspective on management performance with the results of the t-test value tcount > ttable (3,800 > 2,021), there is a significant influence between the learning and growth perspective on management performance with the t test results tcount > ttable (4,474 > 2,021), Simultaneously the Balanced Scorecard has a significant effect on management performance, it can be seen in the F test that the value of Fcount > Ftable (5.835 > 2.63).

Analysis of Financial Structure on Profitability and Non-Financial Performance in Industrial Companies

Non-financial performance can be used to determine the success of the company and show the growth of a company. This study aims to examine and analyze the effect of Financial Structure (Working Capital, Asset Structure, and Operating Leverage) on Profitability and Non-Financial Performance in Industrial Companies. The sampling method used is the census method, which is a comprehensive sampling of 15 companies with a 3-year research period from 2019 to 2021. Method A the analysis is with method Partificial Least Square (PLS) using the Smart program PLS 2.0. The results of the analysis show that working capital and asset structure have an effect on profitability. Working capital, asset structure and operating leverage have no effect on non-financial performance. Profitability has an effect on Non-Financial Performance. Profitability mediates the effect of Working Capital and Asset Structure on Non-Financial Performance. Profitability does not mediate the effect of Operating Leverage on Non-Financial Performance. The result shows, that all proposed hypotheses are accepted except Hypothesis High Operating Leverage does not affect the Company's Non-Financial Performance. The company can grow and develop, and can increase the company's profitability by increasing its own capital and reducing some of the company's debt. Non-financial performance can be improved by providing fast, good, and satisfying service to consumers.
 Keywords —Working Capital; Asset Structure; Operating Leverage; Profitability; Non-Financial Performance

The Impact of Organizational Culture on Non-Financial Performance: A Mediation Effect of Sustainability Balanced Scorecard Measurements

Purpose—This research aims to illuminate the non-financial performance level in the hotel industry in East Java cities in Indonesia. That is, it aims to analyze the impact of organizational culture on non-financial performance by investigating the effectiveness of using Sustainability Balanced Scorecard (SBSC) measurements in assessing the relation between organizational culture and non-financial performance. Design/methodology/approach — This exploratory research examines a sample of 65 hotels operating in different targeted markets. In order to have a better understanding and provide a clear discussion related to these relationships in sufficient depth, the theoretical framework of this research has been designed and developed based on a wide review of relevant research, theories, and findings. The developed research framework adopts the mixed form of the contingency of fit (selection and mediating-based interaction approaches) to investigate the contingency relationship. The survey questionnaire is distributed using an offline approach. Therefore, the collected data is analyzed by using the Partial Least Square Path Modelling (PLS-PM) method along with taking advantage of SmartPLS 3.0 Software. Findings — The findings indicated that organizational culture (Clan, Adhocracy, Market, and Hierarchy) has a positive and significant influence on the effective implementations and usage of Sustainability Balanced Scorecard Measurements, namely, financial, internal business process, customer, learning and growth, environmental, and community. These five perspectives of SBSC have a mediation-interaction relationship between the impact of organizational culture and the organizational non-financial performance levels. Therefore, SBSC measurements significantly and positively influence non-financial performance (product/ quality service level, customer satisfaction level, employee loyalty level, and social sustainability level). Practical implications—This research contributes empirically to the existing literature related to management accounting practices, and more particularly, evaluation and performance practices, by providing findings from developing countries and focusing on the SBSC’ measurements’ usage at hotel businesses operating in three cities in East Java. Originality/value — The multiple evaluations and performance measurements of BSCS proved to be innovative business measurements to enhance the decision-making process and improve a business organization's overall value and performance. Thus, this research paper adopts the contingency model to determine the main internal contingency factor that explains the extent of SBSC measurements’ usage and the effective influence of SBSC measurements on non-financial performance levels. Keywords — Organizational Culture, Non-Financial Performance, Sustainability Balanced Scorecard’s Measurements, Hotel Industry, East Java, Indonesia. Paper type — Exploratory Research

The Importance of Green Management and its Implication in Creating Sustainability Performance on the Small-Scale Industries in India

Objective: This paper examines how stakeholder demand, organisational resources, knowledge, environmental uncertainty management, and product uniqueness affect green marketing and India's small-scale industry's sustainability. The study is important in green management because it examines concurrent relationships between stakeholders' demand, organisations' resources, knowledge, environmental uncertainty management, product uniqueness, and sustainability performance. Sustainability performance variables measure financial and non-financial performance in this study. Method: This study will quantitatively explain the phenomenon using numerical data and linear equation methods. Madhya Pradesh, with 7.54 percent of India's SSIs, hosted the study. Madhya Pradesh's forest-based industry and environmentally friendly development made these sites ideal. Researchers chose large cities since SSIs were more prevalent there in prior years. Bhopal, Jabalpur, and Gwalior will contribute data. Result: Green management affects SSIs' sustainability performance due to stakeholder demand, knowledge, environmental uncertainty management, and product uniqueness, but not organisational resources. Conclusion: Stakeholder demand, organisation resources, expertise, managing environmental uncertainty, and product uniqueness affect green management and SSI's sustainability performance. Green management boosts SSI's sustainability.

Women Entrepreneur’s Emotional Intelligence and Firm Performance: Mediating Role of Networking Competencies

Research on women entrepreneurship is increasingly gaining momentum across the globe, particularly emerging markets that are characterized by institutional voids. This study develops and tests a conceptual framework investigating the role of women entrepreneurs’ Emotional Intelligence (EI) in predicting the perceived performance of their ventures. EI influences the networking competencies, which is among the defining competencies of an entrepreneur. Thus, the study also examines whether network competences of women entrepreneurs mediate the impact of EI on firm performance. The data has been collected from 151 women entrepreneurs through a survey in Indian context using a structured questionnaire. Data analysis is done using the partial least square-structural equation modelling, the results of the study reveal that EI and networking competence have a positive significant impact on firm’s financial and non-financial performance. EI also has a positive significant impact on networking competence of women entrepreneurs. Moreover, networking competence partially mediates the relationship between EI and financial and non-financial firm performance showing both direct and indirect relationship of EI with firm performance. The study’s findings add to the body of knowledge on gender and entrepreneurship and have significant implications for women entrepreneurs who want to succeed in business by employing their networking and EI skills.