Performance Of Industrial Companies Research Articles

THE IMPACT OF DIGITAL PLATFORMS ON INDUSTRIAL ENTERPRISES: АN EMPIRICAL ANALYSIS IN THE CONTEXT OF EXTERNAL SANCTION PRESSURE

The rapid technological revolution, the shortening of the life cycle of many products, the spread of the principles of ‘universal connectivity’ in industry are forcing manufacturers to develop new business models that reduce the time to market products, increase productivity, and create new principles for delivering value to consumers and interacting with partners. Platform business models are the answer to these challenges. At the same time, industrial companies are increasingly not only platform participants but also platform registrants themselves. Based on the identified strategies for the implementation of different types of business models by industrial companies, the article discusses the potential impact of their implementation. The research presented provides a new perspective on the relationship between the chosen combined models of platform solutions and the performance of industrial companies in the context of sanctioned restrictions on access to financial capital. The empirical analysis allowed us to draw conclusions about the greatest impact on the financial results of the choice of the ‘leader’, ‘diversifier’ and ‘advanced e-commerce’ models when these companies operate on international platforms. To diversify and enter new markets — the ‘leader’ and ‘diversifier’ models and the choice of the ‘extended e-commerce’ model prevent the creation of new markets. The choice of a particular model for implementing platform solutions is influenced (with the highest degree of significance) by the availability and access to the financial capital of industrial companies.

Energy conservation culture and energy performance of industrial companies

Recent years have seen sparked interest to business models based on sustainable development, which seek harmonious co-development of human resources, organizational culture, and production systems. This paper analyzes how HR management practices, a culture of energy conservation, and staff’s knowledge regarding energy efficiency affect the ability of Russian industrial companies to reach their targets in energy management. Methods in use involve factor analysis, structural equation modeling (SEM), and the author-developed questionnaire that is designed to measure the effects of internal intellectual factors (human resources, culture, and knowledge) on industrial energy performance. For the first time, this paper presents an SEM-based estimation of HR practices and their effects on industrial energy performance. Empirically, this study is based on the results of surveys that involved managers and technical officers of 14 Russian industrial companies in 2016-2017. Analysis shows that employee training, development of energy efficiency skills, and sharing knowledge on energy conservation issues do contribute to reaching the energy policy targets.

The Impact of Financial Capital on Innovative behavior of Industrial Companies

The authors empirically assessed the impact of the availability of industrial companies to financial capital on their innovative behavior. The relevance of the study is due to the need to develop new analysis tools and stimulate the innovative development of industrial companies in an unfavorable external environment. The aim of the study is to assess the relationship between the availability of financial capital for industrial companies and the possibility of transforming their innovative behavior into a more advanced innovative regime. The authors applied the method of regression analysis of survey data in 648 Russian industrial companies for 2015-2019 to test the three following hypotheses: 1. The financial performance of industrial companies depends on the model of innovative behavior; 2. Financial capital has a significant positive effect on the choice of a more advanced innovative behavior and on the performance of industrial companies; 3. Different availability restrictions to financial capital have a different impact on the choice of innovative behavior and the performance of industrial companies. The authors analyzed two types of restrictions on financial capital: light, when the rate of return from the company’s activities is below the lending interest rate; and strict, when the company does not have access to the credit market. The authors proved that the choice of a particular model of innovative behavior depends on the availability of financial capital of industrial companies. The conclusion is that different types of financial capital constraints affect the choice of a model of innovative behavior in different ways. The authors suggest allocating resources for innovation, development and launch of new products on the market even in conditions of limited access to financial capital. Alternatively, in the context of extremely limited financial capital, it is to develop imitation innovations in new or existing markets.

Analyzing the Relationship Between Investment and Financial Performance of Industrial Companies Listed on the Amman Financial Market During the Period 2005–2018

The study aims to analyze the effect of long- and short-term investment on the financial performance (return on equity, return on assets, earning per share, and net profit after tax) for industrial companies listed on the Amman Financial Market during the period 2005–2018. The study relied on the combined financial data of industrial companies in the Amman Financial Market to test the hypotheses of the study and on the method of multiple regression analysis using the (E-views) program. The standard analysis showed a significant negative relationship between long-term investment and return on equity, return on assets, return per share, and net profit after tax for industrial companies in Jordan. The study also found a negative relationship between short-term investment and net profit and a weak negative relationship between short-term investment and return per share. However, no significant relationship is found between short-term investment and return on equity and return on assets.The study also analyzed the co-integration between the study variables using the Johansson test for co-integration, where the analysis showed the existence of a long-term equilibrium relationship between the study variables as these variables do not move away from each other so that they exhibit similar behavior in the long term. One of the most important recommendations of the study is that investment managers in industrial companies must consider feasibility studies for proposed investment projects. Keywords: financial performance, return on equity, return on assets, earnings per share and net profit after tax, long-term investment, short-term investment DOI: 10.7176/JEP/11-24-11 Publication date: December 31 st 2020

Sustainable innovation practices and their relationship with the performance of industrial companies

Purpose Conditioning factors of the globalized world have created new requirements and opportunities in developing management models for organizations that englobe sustainability aspects, which presume substantial investments in innovation. Therefore, the purpose of this paper is to analyze the relation between sustainable innovation practices and the performance of industrial companies. Design/methodology/approach This was a quantitative study and carried out by applying a research survey in Brazilian industrial companies. Findings The results showed that there are significantly positive associations between several variables related to sustainable innovation practices and company performance, being, therefore, possible to confirm the original proposed hypothesis. Research limitations/implications The main limiting factors were theoretical choices, comprehension of the phenomenon through the perception of the respondents, and the number of companies in the sample, as little representation was found in the researched population. In this manner, the results cannot be applied to the universe of considered research, being restricted solely to the group of companies in the sample. Practical implications From the main contributions, it is possible to highlight, at a theoretical level, the joint approach to issues of sustainable innovation and performance, since there are few studies covering the impact of adopting innovation practices on company performance. At a practical level, understanding of how the behavior of Brazilian industrial companies contributes to the wide distribution of practices that may contribute to better business performance and generate competitive advantages. Social implications At a social level, understanding of the benefits in adopting sustainable innovations practices favors the minimization of negative socio-environmental impacts. Originality/value By analyzing the themes of sustainable innovation and industrial performance, the present study may contribute to adopting business behavior that strategically and systemically integrates the objectives of sustainable innovation.

Learning-by-exporting effects on innovative performance: empiric study results

This work examines the effects of learning-by-exporting on the innovative performance of a company. Innovations are considered both in the context of organisational and technological innovations. The following hypotheses are tested: the hypothesis on the increase in the performance of innovation activities as a result of a firm’s entry into foreign markets; the hypothesis on the importance of sustainable and long-term exports to improve the productivity of industrial companies; and the hypothesis on the impact of operation in developed or emerging markets on the innovative performance of industrial companies in Russia. The panel data of companies from three sectors of the manufacturing industry are used: high-, medium-, and low-tech. The result of the work is the established dependence of the increase in the performance of companies in high- and medium-tech industries on the company’s investments in new technologies, and the dependence of the increase in the performance of companies in low-tech industries on the introduction of organisational and managerial innovations. In addition, it has been shown that the influence of learning-by-exporting on the innovative performance depends on the industry affiliation of firms rather than on the geographical direction of exports (developed or emerging markets).

Exploratory Study of Leadership Behavior Impact on Environmental Performance of Industrial Companies in Libya

This research purposed to investigate the impact of the leadership behaviour on environmental performance in Akakus Oil Operation Company in Libya. The case study conducted was specifically designed to investigate the connection between leadership behaviour style (supportive and directive leadership behaviour) and the implementation status based on international standard systems that is encompassed on total quality management (TQM) and environmental management system (EMS). TQM and EMS are crucial techniques to increase the environmental performance within industrial organizations. Survey was carried out to collect the primary data. Random sampling technique applied to get the data. 200 respondents who consisted of supervisor, managers and employees of Akakus Oil Operation Company, Libya were involved to participate on this study. The statistical result showed a strong relationship between the leadership behavior and environmental performance. Moreover, there are massive impacts of the leadership on environmental performance. In addition, the leadership behavior play important role in determining the overall implementation status of TQM key elements and EMS in the Libyan Organization. Further, this work contributes to the existed knowledge about empirical impact of the leadership behavior on environmental performance within the industrial and manufacturing companies in Libya. The variables were tested through different aspects to provide comprehensive views on the factors which affect the environmental performance in Akakus Oil Operation Company in Libya.

Studying the Accounting Information Role for the Industrial Companies' Attitudes towards the Implementation of Total Quality Management System (Syrian Case)

The ever-increasing importance of industrial companies in Syria coupled with global and domestic competitions, increasing cost and decreasing profitability was the impetus for this study. This study aimed to know the accounting information role towards the attitudes of the Syrian industrial companies towards the applying of total quality system. Through identifying of the response and support companies efforts towards this system; the availability of requirements that need to these companies to apply the system, identify the obstacles that might hinder the application process, and the impact of the application of this system in the performance of these companies. In order to achieve this primary objective, the researchers have studied the intellectual frame and scientific rooting for the total quality management system (TQM). The researchers designed a questionnaire aimed to execute field study of the study problem variables in order to test hypotheses; the study population consisted of a group of industrial companies working in the Syrian Arab Republic. The researchers suggested the following results: the application of total quality management system lead to many benefits for companies that are applied it have represented in improving the competitive position, increasing market share, increasing production efficiency, and reducing cost. The field study reversed many results. These are a statistically significant relationship to the role of accounting information towards the attitudes of the study sample towards the response and supporting of industrial companies to total quality system. In addition to the availability requirements of the application of total quality management system in industrial companies, obstacles of the application of total quality management system in industrial companies, and the impact of the application of total quality management system in the performance of industrial companies. Finally, the study recommended that necessity of the operating companies in Syria, whether in the public sector or the private sector to seek towards the implementation of total quality management system.

Methods and applications for IT capacity decisions: Bringing management frameworks into practice

This paper discusses some aspects of the decisional challenges implied by the management of modern information technology (IT) systems. These rapidly evolving complex systems are crucial to the overall performance of industrial companies. Two challenges are delineated: (1) the complexity of modern systems requires a system-thinking approach; (2) the critical role of IT in business performance implies taking into account these technological aspects within any business plan. Some IT management frameworks are designed to face these challenges but seem not to provide enough comprehensible decisional support to IT managers in real time. That is why this paper proposes innovative decision-aid methods, designed for some of the activities related to capacity management. Attention is paid to modelling and monitoring activities, through methods that combine qualitative and quantitative analyses. These approaches can provide operational support to IT managers. The added value of the methods developed is demonstrated by practical examples implemented in a semiconductor manufacturing firm. These results are an encouraging first step towards more comprehensive and more effective solutions.

Order Penetration Point: Just a Stock within Production?

Nowadays, for customers the logistical performance of industrial companies is as important as the price and quality when buying decisions have to be made. It can be observed that considering the KPIs of logistical performance as quality figures, similar to the product quality, becomes quite popular within national and international markets. Two logistical performance key figures that can be pointed out in that context are short lead times and high schedule reliability. The delivery times demanded by markets often are shorter than the realizable lead times of products or the replenishment time of raw materials or purchased parts. In order to deliver the products in time, companies have the opportunity to implement so called order penetration point (OPP) within their productions. The OPP specifies the point within a production which connects upstream processes linked with work orders and downstream processes link with costumer orders. The OPP is often built up as a stock of unfinished goods. Currently companies position their OPP only with the goal to satisfy the demand of short lead times set by the market. Other logistical targets such as a low work-in-process (WIP), high schedule reliability or a high utilization are usually not taken into account. Hence, due to the complexity of positioning the OPP companies underestimate the logistical potentials that can be achieved by positioning the OPP optimally. In this publication the fundamental determining factors which both influence the position of the OPP and are influenced by the selected position of the OPP are presented. In particular the dependencies between the four logistical targets, lead time, WIP, schedule reliability and the grade of utilization, and the position of the OPP are discussed. Exemplarily the correlation between the position of OPP and the schedule adherence at the end of the supply chain are presented. It can be assumed that the schedule adherence increases by moving the OPP towards the end of the supply chain. Possible reasons that explain this particular effect, like the reduction of lead time variation, will be discussed in detail.

Organizational departments and personnel structure positions model

To increase the performance of industrial companies in today’s competitive world with various threats, necessary actions are required. As a result, after determining the places for manufacturing organizations to operate, looking for alternatives for their performance is very important. The performance of each organization is a function of total performance of relative departments and performance of each department is a function of total performance of relative individuals and personnel of this organization. For this reason, the performance improvement of organization depends on personnel performance and one of the most alternatives in this thesis for increase of organizational performance is to determine suitable and relative structure place for personnel in organizations based on individual characteristics that were defined and determined after collection of top management and specialists’ opinions through questionnaire and conversations. The characteristics included creativity, group or individual oriented, self-confidence, crisis acceptance or crisis running, risk acceptance or risk running, exciting self and coworkers, membership in-group, giving freedom to group, interpersonal skills and planning ability. Finally, the complexity and sophistication of decision making requires active and dynamic management. Managing various and multifaceted internal activities is only part of the modern executive’s responsibilities. The organization’s immediate external environment posses a second set of challenging factors. Key words: Organizational performance, structure, organization, structure position, production structure, balancer, execution, supporter, personnel characteristics and evaluation.