Performance In Terms Of Sales Research Articles

A comparative analysis on the nexus between corruption and firm performance for a selection of Western Balkan countries

Purpose This paper aims to focus on analyzing the level of corruption of small- and medium-sized enterprises and their economic performance impact in Western Balkan countries. This study uses survey data from Enterprise Surveys (ES) from 2019, a shared project of the European Bank for Reconstruction and Development, the European Investment Bank and the World Bank Group. The selected countries are Albania, Bosnia and Herzegovina, North Macedonia, Kosovo, Montenegro and Serbia. The questions included in the data set contribute to understanding what firms experience in the private sector. Collected data are based on firms’ experiences and enterprises’ perceptions of the environment in which they operate. Design/methodology/approach This paper measures enterprise performance in terms of sales, employees and fixed assets growth. The vector of independent variables comprises enterprise characteristics such as enterprise age, size, ownership structure, legal status, access to formal banking services, gender ownership and other composed variables. Moreover, to capture the level of perceived corruption by firms, we will focus on the following ES questions: “Is it common to have to pay some irregular additional payment or gifts to get things done with regard to customs, taxes, licenses, regulations, services,” and the “corruption payment” is defined in the form of a dummy equal to one if the enterprise replies “frequently,” “usually” or “always.” Findings Preliminary empirical research results shed light on the level and effects of corruption on enterprises’ performance. However, the magnitude and statistical significance are different among the countries included in the sample. Originality/value Instead of firm-level characteristics, research on corruption frequently focuses on effects dependent on national and institutional characteristics. To better identify the kinds of businesses that are most at risk of corruption, we have selected to focus on differences among firm characteristics in this research. Understanding factors at the firm level is preferred from a policy perspective because these findings assist policymakers to make recommendations.

Effects of Resilience Building on Performance of Pharmaceutical Firms in Kenya

The purpose of the study was to evaluate the effects of resilience building on performance of pharmaceutical firms in Kenya. The research adopted a descriptive research design. The target population included 171 (22 local pharmaceutical manufacturing and 149 importing firms). The study adopted a census sampling technique. The data was analyzed using SPSS 22 version. The study made use of multiple regressions analysis which helped to generate a weighted estimation equation (OLS) that was used to predict values for dependent variable from the values of the independent variable. The regression results revealed that resilience building had a positive and significant relationship with the performance of pharmaceutical firms. It was found that resilience building is satisfactory in explaining the performance of pharmaceutical firms which was supported by a coefficient of determination also known as the R2 of 57.5%. The null hypothesis was rejected which indicated there is no significant relationship between resilience building and performance of pharmaceutical firms in Kenya. Thus, there is a significant relationship between resilience building and performance of pharmaceutical firms in Kenya. The study recommended that pharmaceutical firms should develop and implement the resilience building practices to increase reliability, visibility, adaptability and build reputable brands. Among the practices which are of great significance are those to do with timely and effective response on new customer customers preferences, stable and assured supply, innovativeness to new preferences and preparedness to deal with supply disruptions. The study also recommended that management in pharmaceutical firms should implement the aforementioned practices since they lead to an improved firm performance in terms of sales, customer service and efficiency Keywords: Resilience building, performance, pharmaceutical firms, Kenya

Effect of audit client importance on earnings management of nigerian listed consumer goods firms

The primary focus of this study was to examine the influence of audit client importance on earnings management of Nigerian listed consumer goods firms. The study adopted a descriptive research design. From 2012 to 2019, data were collected from 13 consumer goods firms listed on the Nigerian Exchange Group. Discretionary accrual was used to estimate earnings management.Descriptive statistics and random effects regression were used to analyse the data. The findings indicated that audit client importance (β=-0.1872) has a significant effect on the earnings management of Nigerian listed consumer goods firms. The study concluded that earnings management practices of Nigerian listed consumer goods firms are curtailed when the firms are of important clients to their auditors. The recommendation was that management of firms should enhance approaches that will improve their performance in terms of sales to remain important clients to their auditors.

Service Imports, Workforce Composition, and Firm Performance: Evidence from Finnish Microdata

This paper uses unique Finnish firm-level micro data on service imports, work- force composition, and firm characteristics to examine changes in employment composition and performance of Finnish service importers during a period of a significant increase in services imports (2002-2012). We use world service export supply shocks, which we allocate to firms based on their highly specialized service input structure, as an instrument to identify the impact of service offshoring. We find that firms that increase imports of service inputs reduce employment of low-skill service workers, increase employment of (high-skilled) managers and improve their performance in terms of sales (turnover), assets, service exports, and firm survival. The employment composition and performance responses to service imports differ across firms in the manufacturing sector and those in the service sector.

Impact of Management Practices on Micro and Small Enterprise (MSEs) Performance in Marinduque, Philippines

In the Philippines, micro and small enterprises (MSEs) comprise the largest part of the business economic undertakings and are among the most important development agents in rural communities like Marinduque. MSEs offer opportunities to poor people the possibility of earning income, training, work experience and employment. However, most of the micro and small enterprises in the country perform behind the neighboring ASEAN countries. Thus, assessing the impact of their management practices on operational functions (marketing, production, financial, human resources) and the significant relationship to MSEs performance (sales, production, and income) as the basis for government interventions. The study disclosed that management practices of 35 selected manufacturing MSEs on operational function is doing well with an overall mean of 3.70 interpreted as "Mostly Practiced". Of all the variables, marketing emerged to have the highest mean of 3.95, interpreted as "Mostly Practiced". What is alarming is the findings on human resources, which got the lowest mean of 3.40, interpreted as "Practiced". Overall performance in terms of sales, production, and income is 3.64, interpreted as "very satisfactory". Using Pearson, the operational business function has a positive correlation to performance. Based on the operational management practices, the following have a vital role for the success of MSEs such as type of business organization, decision-making process, creation of policy, rules, and regulations, planning and implementation, and management directions of the enterprise. As to these findings, programs of government will need to give emphasis on the weak areas and highlight the good practices as a basis for crafting tailored interventions for each MSEs.

A systematic literature review regarding the influence of lean manufacturing on firms' financial performance

PurposeThe lean philosophy has demonstrated its effectiveness to improve firms' operational performance. However, the impact of lean practices on financial performance is still unclear due to the poor understanding of the link between operational and financial measures and the conflictive results obtained by previous research. The purpose of this paper is to conduct a systematic literature review to understand whether lean companies have improved their financial performance. Moreover, this article aims to uncover research gaps in the literature and examine which time spans of research have been considered to analyse both the degree of lean implementation and the measurement of financial outcomes.Design/methodology/approachA systematic literature review has been conducted to identify peer-reviewed articles that analyse the effect of the lean production paradigm on the financial performance measures of manufacturing companies. Then, the identified articles were processed using a combination of descriptive and content analyses methods to draw new conclusions, uncover gaps and find novel paths for research.FindingsVarious authors indicate that lean initiatives lead to an enhancement of financial performance measures. JIT and TQM lean practice bundles are suggested as the best enablers of financial performance in terms of sales and profit. In contrast, according to some scholars, lean does not necessarily improve companies' financial results if it is not properly implemented.Originality/valueSeveral studies have focused on analysing the effects of lean on performance. However, only a small part of the literature has addressed the study of the effects of lean practices on financial performance metrics. The originality of this study lies in the investigation of the connections between lean practices and financial performance measures found in the literature. The outcome is the identification of various possible positive impacts of some lean practices on financial metrics.

The interplay between socioemotional wealth and family firm psychological capital in influencing firm performance in hospitality and tourism

The purpose of this study is to examine the impact of family firm specific non-financial dynamics [socioemotional wealth (SEW) and family firm psychological capital (FFPsyCap)] on firm performance. We develop a model of how family firms' SEW preservation goal negatively affects firm performance in terms of sales and the mitigating influence of FFPsyCap on this association. We test the model on a sample of 192 family firms in the Hospitality and Tourism (H&T) industry. Using a cross-sectional research design, surveys were solicited from small-and-medium size hotels in Turkey. Ordinary Least Squares technique is used to test our hypotheses. The results reveal that family firms' SEW preservation goal negatively affects firm performance in terms of sales, and the FFPsyCap mitigates this influence. Accordingly, if small-and-medium size firms in H&T can capitalize on non-financial strengths and minimize the impact of family-centric goals on firm outcomes, they can attain transgenerational sustainability and success.

Port-related conflict at port of Gothenburg \u2013 consequences from a fashion retailer\u2019s perspective

Previous research have distinguished the risks of supply chain disruptions and the negative effect of supply chain disruption on operational performance in terms of sales, costs and inventory. However, few researchers have studied supply chain risk management and strategies in relation to port conflicts. The 2016 port conflict at a major logistics port in Scandinavia, the Port of Gothenburg, posed an opportunity to study risk management and strategies in the context of major port disruptions, in this case, a labour conflict. The fashion retail industry was affected especially hard due to the short product life cycles and this paper, by means of case study method and analysis, investigates five cases in order to understand how they were affected and what mitigation strategies was used. Results illustrates that during the port conflict, the percentage of increase in logistics cost ranged between 15% and 70%, greatly affected by what mitigation strategy was used by the case company.

Enterprising Women in Southern Africa: WhenDoes Land Ownership Matter?

Limited access to finance remains one of the major barriers for womenentrepreneurs in Africa. This paper presents a model of start-ups in which firms’ salesand profits depend on their productivity and access to credit. However, due to the lackof collateral assets such as land, female entrepreneurs have more constrained access tocredit than do men. Testing the model on data from the World Bank Enterprise Surveys inEswatini, Lesotho, and Zimbabwe, we find land ownership to be important for femaleentrepreneurial performance in terms of sales levels. These results suggest that thesmall Southern African economies would benefit from removing obstacles to female landtenure and enabling financial institutions to lend against movable collateral. Althoughland ownership is linked with higher sales levels, it is less critical for sales growthand innovation where access to short term loans for working capital seems to bekey.

Customer-focused supply chain strategy: developing 4Rs framework for enhancing competitive advantages

Customer-focused supply chain strategy helps firms to respond consumer demand in real-time; provides a superior customer experience; trims overall costs and optimises productivity. Firms that effectively implement customer-focused supply chain strategy are much more likely to achieve better corporate performance in terms of sales, profitability, market share and even customer satisfaction. Customer-focused supply chain also enhances capabilities of the firm to adapt to the rapidly changing business environment. In customer-focused supply chain strategy, supply chains are much more customer focused - they deliver great service at lower cost and a key ingredient of their success is strong emphasis on responsiveness, resiliency, reliability and realignment (4Rs) among supply chain partners, where all are focusing on customer value proposition. This research has developed various frameworks and presented various case studies to emphasise 4Rs as important drivers of customer-focused supply chain strategy.

CSR, From Perception to Role in Performance: A Case Study of SMEs in Industrial Estate Peshawar, Pakistan

This paper explores the perception and role of corporate social responsibility (CSR) in the performance of small and medium enterprises (SMEs) of Industrial Estate Peshawar, Pakistan. Philosophically the study had a subjective ontology; and therefore, a subjective epistemological stance leading to interpretivism as its core theoretical position. To inquire into the perception and role of CSR in SME’s, the study utilized Yin’s case study model thus collecting data through qualitative semi-structured interviews and observations. Further, the study used Miles and Huberman (1994) approach of thematic modelling for the analysis of the data. The findings reveal that SMEs are somehow practising CSR in an informal manner. Surprisingly, CSR at strategic Level is missing. CSR practices towards employees are missing except health and safety measures. Most of the firms contribute in an irregular manner to the local community - training the locals, hiring them as internees, giving charity and donations, and purchasing of local supplies when available and feasible. While, except for one firm, the production or manufacturing firms have no environmental implications. The firms are ethical in dealing with customers and suppliers, they offer customers a quality product which is the reason behind their performance in terms of sales or reputation. The only ethical factor of CSR has a role in SMEs performance.

Porter’s Competitive Strategies Influence on Performance of Mobile Telecommunication Companies in Kenya

Abstract:
 The purpose of the study was to establish the relationship between Porter’s competitive strategies and performance of mobile telecommunication companies in Kenya. More specifically the study sought to determine the influence of cost leadership, differentiation and market focus strategies on performance of mobile telecommunication companies in Kenya. The target population of the study comprised of 241 management staff drawn from; Safaricom PLC, Airtel, Telkom and Equitel mobile telecommunication companies in Kenya. A sample of 117 respondents was selected purposively for the study. The study adopted a mixed method of explanatory and cross sectional survey research design approach. The research utilized both primary and secondary data. The data obtained was summarized using descriptive and inferential statistics. Pearson’s correlation was used to determine the relationship between the variables, and multiple regression to determine the influence of Porter’s competitive strategies on performance of mobile telecommunication companies. The study concluded that Porter’s competitive strategies; cost leadership, differentiation and market focus strategies adopted by the telecommunication companies had a positive significant influence on their performance in terms of sales and market share in customer’s subscription. The study recommended that mobile telecommunication companies in Kenya should embrace Porter’s competitive strategies more to continue achieving competitive advantage and enhance their performance.

Service Imports, Workforce Composition, and Firm Performance: Evidence from Finnish Microdata

This paper uses unique Finnish firm-level micro data on service imports, work- force composition, and firm characteristics to examine changes in employment composition and performance of Finnish service importers during a period of a significant increase in services imports (2002-2012). We use world service export supply shocks, which we allocate to firms based on their highly specialized service input structure, as an instrument to identify the impact of service offshoring. We find that firms that increase imports of service inputs reduce employment of low-skill service workers, increase employment of (high-skilled) managers and improve their performance in terms of sales (turnover), assets, service exports, and firm survival. The employment composition and performance responses to service imports differ across firms in the manufacturing sector and those in the service sector. Institutional subscribers to the NBER working paper series, and residents of developing countries may download this paper without additional charge at www.nber.org.

Sales promotion as a leverage strategy for improving sales and profit ability in alcohol beverage industry

This paper considered the huge amount of money being expended on sales promotion in recent times and sought to know whether organizations that use such strategy have justification for such investment. It sought to know whether the increase in sales promotion expenses resulted to increase in the organizations’ sales volume as well as profitability. Nigerian Breweries Plc was used for the study because of its high-level involvement in sales promotion. Personal interview was used to collect relevant information from the key staff of the organization while the published annual report was to collect relevant information from the key staff of the organization while the published annual report was used to source information on the organization’s performance in terms of sales of sales turnover, marketing expenditure, and profitability. Findings showed that sales promotion was used because the strategy was very effective in developing and sustaining patronage and loyalty among channel members. It was further found that there was a strong positive correlation between sales promotion expenses and sales volume and between sales promotion expenses and profit. It was therefore recommended that organizations should use sales promotion as a strategy for leveraging sales and profit, provided that such organizations manage the sales promotion programmed effectively to generate desired results.

Firm performance and innovation in the developing countries: Evidence from firm-level survey

This paper investigates the relationship between firm performance and innovation in developing countries using micro data from enterprise surveys. The purpose is to empirically test the importance of firm performance in terms of sales, for a firm’s proneness to innovate specifically in developing countries. A two-stage least squares (2SLS) model is applied to a sample of 2356 firms from the manufacturing and service sectors. Results show that firm performance, defined as sales, is found to be a significant factor contributing to innovation among firms. This relationship holds in manufacturing firms even when distinguished from the services sector. The findings underline the importance of firms’ performance through increased sales. The paper adds to the existing limited research literature on performance and innovation studies in developing countries especially Africa. The paper results differ from previous research studies where focus has been on innovation impact towards performance. As a policy option, developing countries need to improve and promote an increase in firms’ sales that would spur them to introduce a new or substantially improved product or process.

Exploratory Research on Relationship between Entrepreneurial Orientation Dimensions and Business Performance and Growth of Fast and Slow Growing Small and Medium Enterprises in Bosnia and Herzegovina

This paper analyses environment in fast (gazelles) and slow growing companies (mices) using Entrepreneurialorientation (EO) dimensions and business performance in terms of sales and employee growth. The research isdone using information on 178 small and medium enterprises (SMEs) in Bosnia and Herzegovina. We find thatEO dimensions are more present in gazelles than in mices. We show a small to moderate significant correlationbetween EO dimensions and business performance of gazelles and mices. Also, any change in sales growth andemployee growth might be associated with variability in innovation, risk taking and firm’s age.

International joint venture strategies and performance in the Baltic States

Purpose– The purpose of this paper is to analyse investment strategies and performance of Finnish firms in their international joint ventures (IJVs) established in Baltic States.Design/methodology/approach– The paper analyse performance of IJVs in Baltic States based on the IJV theory, international business literature, and foreign direct investments in Central and Eastern Europe (CEE) literature. The analysed factors include firm, investment, and inter-partner relationship-specific factors. To examine the propositions the paper used ten IJVs established by Finnish firms in various Baltic States between the period 1991 and 2005.Findings– The results show that the level of uncertainties in the countries and the differences between partners are not related to firms’ commitments and the entry mode choice. Several Finnish firms preferred cost leadership to compete with other firms in the local markets. In most cases there was a positive relationship between the level of partners’ equity share, commitment to the IJV, and the level of trust between partners. The results indicated differences in the IJV performance depending on parent firms’ objectives, their competitive strategies, mode of entry, age of IJVs, control strategies, level of trust, and commitment between partners, as well as depending on the performance measures used.Practical implications– This study suggests four observations that managers may need to take into consideration to improve IJV performance in the Baltic States. First, cost leadership strategy help to increase IJV performance in terms of sales. Second, social control mechanisms and narrow control leaded to better performance than formal and wide control. Third, minority ownership by Finnish firms in IJVs leaded to better performance based on sales, productivity and total performance whereas majority ownership had leaded to better performance in terms of total costs. Finally, the results confirmed that commitment to the IJV operation and trust on the other partner are very essential factors to IJV performance.Originality/value– The study is the first one to analyse in more detail based on several cases the IJV strategies and performance of Finnish firms in the Baltic States. The analysed factors include several such factors which have not been analysed related to IJV operations in Baltic States (some also limitedly in the CEE context).

Disclosure strategies regarding ethically questionable business practices

PurposeThe author's objective is to reveal the consumer responses to information disclosure strategies regarding controversial ethical issues.Design/methodology/approachThe author is interested in how voluntary disclosure of questionable business practices by chocolate manufacturers regarding child labor exploitation at cocoa plantations influences consumer behavior. A total of 120 students participated in an experimental study in which the author manipulated awareness of ethical issues in the chocolate industry and corporate disclosure strategy. The author measured willingness to pay (WTP) and consumer perceptions about the firm's commitment to corporate social responsibility.FindingsThe study found that voluntary disclosure of unethical business practices by a firm was not damaging in terms of consumer perceptions. When public awareness was limited, disclosing participation in unethical behavior did not influence WTP for the firm's products. When public awareness was high, disclosing this negative information is even more beneficial than no disclosure and generates similar responses to including only positive elements in the firm's communication, provided that the firm commits to eliminate its unethical practices.Research limitations/implicationsVoluntary negative social disclosure will not hurt a firm's performance in terms of sales, given the disclosure is transparent and this suggests a credible commitment to improve its practices regarding the issue.Originality/valueThe author investigates the optimal strategy for a firm to disclose ethical infractions. She demonstrates that being open about them does not necessarily damage a firm's reputation and suggests under which conditions this is the case.

Marketing Capabilities Development in Small and Medium Enterprises: Implications for Performance

The purpose of the research is to analyze the organizational antecedents of marketing capabilities and their impact on business performance using a sample of small and medium enterprises (SMEs). More specifically, the research analyzes the effect of the organizations’ internal marketing (IM) practices on the employees’ implementation of a coordinated set of commercial abilities crucial to firms’ competitiveness. Results of the research indicate that IM, or the management of human resources as internal organizational clients, is a key determinant in motivating employees effectively to develop both strategic and operational marketing capabilities. Marketing capabilities exert a significant and positive effect on clients’ satisfaction and loyalty, which ultimately lead to better organizational performance in terms of sales, profit, and market share. The research also contributes to the scarce amount of empirical evidence on the positive and direct effect of IM strategies on business performance.

Entrepreneurship Initiatives in the Control of Sleeping Sickness: Experiences of the Stamp Out Sleeping Sickness (SOS) Initiative in Uganda

Since January 2008, five young veterinarians have been engaged in promoting drugs and chemicals that can help control sleeping sickness, a disease that affects the rural poor in Uganda. The framework involves veterinary service provision at a small fee and has evolved into young graduates setting up veterinary drug shops and practices in the villages, resulting in the promotion of use of products known to help reduce the spread of sleeping sickness. This manuscript describes how fresh graduates who participated in the Stamp Out Sleeping Sickness campaign a public good implemented by the Faculty of Veterinary Medicine at Makerere University led to the establishment of small businesses in a community that was just recovering from armed rebellion. The article explains through the use of tables and figures the performance in terms of sales of the small businesses and benefits of the owners in a community that was short of the vital services. The young veterinary graduates have established veterinary drug shops, including the promotion of key people in these small villages trading in chemicals helpful in the control of sleeping sickness by training them to serve as spray persons. The paper discusses the successes and challenges of strengthening the small business model as a sustainability measure in the control of neglected zoonotic diseases like sleeping sickness. The experiences gained have showed that sustainability of disease control in rural communities can be achieved through helping professionals establish a network of small businesses that increase the accessibility of the innovative technologies developed.