Strategic Business Research Articles

The Role of Service Quality and Location in Increasing Customer Loyalty with Customer Satisfaction as an Intervening Variable

This research aims to determine the effect of service quality and location on customer loyalty with customer satisfaction as an intervening variable for customers of the "Warung Pojok" restaurant. This research uses a purposive sampling technique through a questionnaire as data collection material with 100 respondents. In this research, service quality and location act as independent variables, while customer loyalty is the dependent variable with customer satisfaction as the mediating variable. This research uses quantitative methods and data analysis is carried out using statistical tests with the help of SPSS 21. The results of the research show that service quality and location have a positive effect on customer satisfaction. Furthermore, the variables of service quality and location also have a positive effect on customer loyalty. Apart from that, customer satisfaction has been proven to influence customer loyalty at the "WARUNG POJOK" restaurant. This indicates that good service quality and strategic business locations play an important role in providing consumer satisfaction so that they can form loyal customers.

THE EFFECT OF ENTREPRENEURIAL COMPETENCE ON THE GROWTH OF SME: THE MEDIATING ROLE OF NETWORK COMPETENCE

This study aims to investigate the influence of entrepreneurial competencies, with a focus on strategic and ethical competencies, on business growth. It also explores the mediating role of network competencies in this context. The sample consisted of 134 respondents from Tanjung Duren, West Jakarta, selected through purposive sampling. The findings indicate a positive and significant relationship between strategic competencies and business growth, while ethical competencies had no significant impact on business growth. Additionally, both strategic and ethical competencies were found to positively and significantly influence network competencies, which, in turn, had a positive and significant effect on business growth.

Contract farming in transitional economies: A stakeholder theory perspective

Abstract In transitional economies, contract farming is widely recognized as a means for addressing numerous market failures affecting small farmers. Reviewing the scholarship on contract farming, we show that its traditional understandings have been framed by the narratives of transaction cost economics and power dynamics. We critically evaluate these narratives and demonstrate how stakeholder theory, with its relational understanding of business, offers a more comprehensive understanding of contract farming. We argue that a stakeholder theory perspective underscores the trust-based and collaborative nature of successful contract farming arrangements. It highlights the importance of informal and moral stakeholder relationships that compensate for the limitations of weak enforcement mechanisms and inadequate legal frameworks in transitional economies. This way, a stakeholder theory perspective on contract farming highlights its strategic management and business ethics dimensions, offering valuable guidance for cultivating successful stakeholder relationships.

Human management control systems on construction firms amidst COVID-19

BACKGROUND: The COVID-19 pandemic continues to endure in the construction industry. While many businesses worldwide have adapted to working from home or home-based offices, this is impractical in this sector as building activity is conducted on-site, which creates difficulties for employees in adapting to the post-pandemic setting. OBJECTIVE: This article analyzes how the pandemic has changed and affected construction firms’ human management control systems dimensions. We addressed, amidst the pandemic, how work is being performed and its effects on employees and businesses. METHODS: In this analytical research, we used chain referral sampling to perform an in-depth interview study with top administrators of different construction firms in Colombia, and we used inferential statistics for our data analysis. RESULTS: Results showed potential sources of low efficiency and minimal control of resources, including lack of communication with employees, lack of recognition systems, centralized decision-making, and disconnection between business objectives and financial requirements. CONCLUSIONS: Construction firms must ensure workers understand the project goals adequately and be empowered to make on-site decisions provided a training program is offered. Organizations ought to connect their strategic business goals with financial requirements; these must be regularly updated and modified as the economic and labor force scenario evolves.

Effects of operators’ strategic approach to local content and in-country spending requirements on financial performance of upstream petroleum sector firms, Ghana

Local content requirements and in-country spending mandates have emerged as crucial tools in the upstream petroleum sector, aiming to distribute socio-economic benefits derived from resource production to the general citizenry within the host economies. However, understanding how operators' strategic responses to these requirements affect firm financial performance remains limited due to data constraints. Consequently, drawing on resource dependence, social exchange, and linkage and spill-over effect theories, this paper develops a conceptual framework to elucidate the relationships among local content requirements, in-country spending, local linkage factors, operators' strategic approaches & business practices, and financial performance, including their implications. To address data limitations, a mixed-methods approach was adopted, combining content analysis of financial reports from 11 global upstream petroleum operators in Ghana and key informant interviews, with survey primary data collected via online questionnaires. This methodological triangulation enabled a comprehensive examination of how operators' strategic responses affect financial performance in the Ghanaian upstream petroleum sector. Analytical techniques used included factor analysis and Partial Least Squares Structural Equation Modeling (PLS-SEM) from SPSS and SmartPLS3, respectively. The study found that while local content requirements and in-country spending mandates do not significantly influence operator strategic approaches or financial performance, local linkage factors have a strong positive effect on strategic approaches, which in turn positively affect financial performance. Furthermore, local linkage factors partially mediate the relationship between local content requirements and strategic approaches, as well as financial performance. These findings underscored the importance of prioritizing investments in local linkage factors to stimulate industrialization and foster cross-sectorial outsourcing opportunities. The study contributes to resource dependence, social exchange, and linkage and spill-over effect theories by highlighting the role of strategic approaches and local linkages in promoting financial performance. It also offers insights for policymakers and industry practitioners, emphasizing the need to enhance competitiveness and capacity within the host economy. Additionally, the study confirms the predictive relevance of the model, indicating its robustness in explaining the dynamics of local content requirements and in-country spending mandates in the petroleum sector.

Quit the Politicking? How Factors Within Strategic Business Unit Teams Shape Returns from Entrepreneurial Orientation

In this study, we examine the entrepreneurial orientation (EO), political behavior, and discretion of leaders within an organization’s strategic business unit (SBU) customer portfolio teams to determine whether and how an SBU team’s political environment affects its performance. Building upon EO as theory of new value creation, we argue that politically charged SBU teams are less capable of translating EO into improved performance. However, we observe the harmful influence of SBU team politics on the EO-performance relationship is partially alleviated when SBU team leaders have greater discretion over their units’ actions. We examine our theoretical model using robust data collected from 320 SBU team leaders and 1181 reporting SBU project managers within a large multi-national information technology firm headquartered in India. Implications for theory and practice are discussed.

Digital marketing business models: Key stages, types and trends of development

The main goal of the article is to formalize the key business models of marketing of modern companies and substantiate the key stages, types and trends of development. The relevance and need to pay significant attention to the marketing digital business model when organizing a business is substantiated. Using structural and logical analysis and criticism of scientific research, the essence, advantages and disadvantages are determined, the main blocks, stages and key elements of the structure of business models of modern companies are argued. It has been proven that marketing digital business models serve as a logical and visual plan for organizing all business processes of companies from production, marketing, sales and logistics to building a hierarchy of profitability. The key development trends are substantiated and the most popular business models of business organization in modern conditions are structured on the basis of scientific generalization, structural and logical analysis and mathematical modeling. Practical significance is characterized by the fact that the marketing business models of world-class companies are generalized and structured, taking into account their specifics and characteristics. Practical recommendations and key stages of building a company’s business model and its implementation into reality have been formed to achieve strategic business goals.

How the Metaverse can add new layers of hospitality services: a perspective of senior industry practitioners

How the Metaverse can add new layers of hospitality services: a perspective of senior industry practitioners

Artificial Intelligence as a Strategic Decision-Maker in Modern Business

The advent of artificial intelligence (AI) has ushered in a new era for strategic decision-making in business, presenting unprecedented opportunities and challenges. This paper explores the evolving role of AI, not merely as a support tool but as an autonomous decision-maker in strategic business contexts. By examining AI's capabilities in data compilation, outcome forecasting, and strategic evaluation, this study highlights how AI can transform business model decision-making. Through a detailed analysis of AI's potential and current applications in various industries, this paper provides insights into the profound implications of AI-driven strategic decisions. Ethical considerations and future trends in the integration of AI in strategic management are also discussed. Keywords: Artificial Intelligence, Strategic Decision-Making, Business Strategy, Machine Learning, Data Analysis, Business Model, Ethical Considerations, Future Trends

Redefining Boundaries: The Case for Enterprise-Structured Waqf Over Corporate Waqf

Purpose — This paper highlights the overextension in the definition of the term corporate waqf in the current literature, proposing a return to its original meaning. It also advocates for the use of a new term, enterprise-structured waqf, to capture the broader and more inclusive contexts of waqf. This paper further elaborates on and categorises the facets of the newly advocated term, clearly delineating its scope. Design/Methodology/Approach — This paper utilises a qualitative content analysis (QCA) methodology to recognise specified characteristics within the corporate waqf literature. It prudently dissects the prevailing narratives, revealing areas of conceptual ambiguity and inconsistency. It further proposes new narratives. Findings — It is shown that the extended definition of the term corporate waqf has left it ambiguous, with two meanings. The first is waqf that is established by corporate entities. The second is waqf whose assets are dedicated to entities with strategic business frameworks, regardless of the founder’s corporate or non-corporate status. The second meaning, while innovative, is misleading. It is therefore proposed that the term corporate waqf be returned to its original meaning and the term enterprise-structured waqf be used instead to capture the broader and more inclusive contexts of waqf. Originality/Value — This paper is the first to highlight the overextension in the definition of the term corporate waqf, propose a return to its original meaning, and advocate for the use of an alternative term, namely enterprise-structured waqf. Practical Implications — Returning to corporate waqf’s original meaning while distinguishing it from the broader concept of enterprise-structured waqf will potentially help expand waqf engagement and resource mobilisation.

IT Strategic Alignment Maturity and Business Performance for the Banking Industry in Kenya

This study explored the connection between IT Strategic Alignment Maturity and the financial performance of Kenyan commercial banks. Using the SAMM framework, six alignment maturity criteria (governance, communications, value, partnership, technology scope, and skills) were evaluated. Quantitative correlation analysis was conducted with data from CIOs representing 70% of the Kenyan banking market (all Tier One banks). Findings revealed a significant positive link between IT-business alignment and profitability. The study suggests that banks seeking increased return on assets (ROA) should prioritize the development of robust strategic alignment maturity. Business-IT alignment (BITA) is a dynamic, ongoing process essential for organizational success (Luftman, 1996). Successful alignment requires strong management support, clear prioritization, and effective communication across all levels of the organization (Luftman, 1997). To navigate the complexities of a rapidly changing business environment, companies must consistently evaluate their IT investments and strategies (Luftman, Papp and Brier, 1999). A well-aligned IT function acts as a catalyst, driving innovation, competitiveness, and improved decision-making across the enterprise (Luftman, Papp, and Brier, 1995). However, alignment is challenging and requires collaboration between IT and other business units (Luftman, Lewis, and Oldach, 1993). When IT strategy and governance effectively support overarching business goals, organizations can transform their operations and unlock new levels of success (Haes and Grembergen, 2016).

The Triangulated Influence Of Electronic Word Of Mouth (eWOM) Information On Consumer Purchase Intention: A Conceptual Paper

In the contemporary digital era, consumer decision-making processes have evolved significantly in response to the proliferation of information sources. This conceptual paper explores the intricate nexus between information credibility, valence information, information quality, and resultant consumer purchase intention across diverse industry domains. Recognizing the pivotal role of consumer perceptions in shaping buying decisions, this paper aims to elucidate the conceptual framework governing these variables. Through a comprehensive literature synthesis and theoretical analysis, this paper endeavours to delineate the interconnections among information credibility, valence content, and information quality, elucidating their collective influence on consumer decision-making. By proposing a conceptual framework that integrates these variables, this paper aims to offer a conceptual roadmap for understanding how consumers perceive and evaluate information credibility, react to valence content, and assess information quality, culminating in their purchasing behaviours across industry sectors. This conceptual exploration aims to lay the foundation for future empirical investigations and strategic business approaches, facilitating a deeper comprehension of the intricate dynamics guiding consumer behaviour in the digital age.

Strategic Business Insights: Unleashing Growth through Predictive Modeling and Optimization

This research paper explores the transformative power of predictive modeling and optimization in driving business growth and strategic decision-making. By leveraging advanced analytical tools and data-driven insights, organizations can gain a competitive edge by anticipating market trends, optimizing resources, and identifying new opportunities for innovation and growth. Through a combination of data analysis, machine learning algorithms, and scenario planning, businesses can develop proactive strategies that align with their long-term objectives and adapt to changing market dynamics. The paper highlights the importance of harnessing predictive modeling techniques to forecast future outcomes, optimize performance, and enhance operational efficiency. By integrating predictive modeling into their decision-making processes, companies can unlock untapped potential, mitigate risks, and achieve sustainable growth in today's fast-paced and complex business environment. Keywords: predictive modeling, optimization, data analysis, machine learning, strategic decision-making, growth, innovation, competitive edge, market trends, scenario planning, operational efficiency, risk mitigation, sustainable growth.

Mendorong Motivasi Wirausaha UMKM untuk Memajukan Ekonomi Masyarakat di Kelurahan Joglo Kota Jakarta Barat

Micro, Small, and Medium Enterprises (MSMEs) are business entities managed by individuals, families, or small-scale business units, classified based on annual turnover, asset volume, and workforce. Effective human resource management is essential for MSMEs in systematically organizing finances, enabling business owners to understand their financial conditions and business developments. Easy access to information on assets, liabilities, equity, cash flow, and profit fluctuations provides crucial support for MSME entrepreneurs in making strategic business decisions. This activity not only motivates entrepreneurs to maintain business continuity but also guides them towards achieving desired business and economic goals. The drive to engage in entrepreneurship stems from a strong individual desire to realize self-potential through creative and innovative thinking, creating new products that have a social and economic impact on the local community. The courage to explore and implement new ideas is reinforced by strong entrepreneurial motivation, creating a positive cycle between motivation and action that strengthens the character of resilient and high-quality entrepreneurs.

THE ROLE OF DIGITIZATION IN MANAGEMENT AND STRATEGIC DECISION-MAKING IN MODERN MANAGEMENT

This research aims to assess the impact of digitization on management efficiency and strategic decision-making, a pivotal aspect in the contemporary business world. By integrating digital technologies with traditional mathematical models and analyzing survey data from 250 management professionals, the study provides a comprehensive understanding of the multifaceted effects of digitization.The principal outcomes from the mathematical analyses, including Marginal Cost Analysis, Break-Even Analysis, and Linear Programming, indicate substantial improvements in operational efficiency following digitization. Specifically, Marginal Cost Analysis shows a significant decrease in the cost of production, and Break-Even Analysis reveals a reduction in the break-even point by approximately 15%, underscoring enhanced cost-effectiveness. Linear Programming results demonstrate a 20% improvement in resource allocation efficiency. The survey analysis complements these findings, revealing a positive perception of digitization in enhancing managerial adaptability, efficiency, and decision-making effectiveness, with average rating improvements of 0.3, 0.4, and 0.5 points, respectively, on a 5-point scale. Regression analysis further highlights the positive influence of technological affinity on decision-making effectiveness. However, ANOVA results suggest variability in the impact of digitization across different industry sectors, necessitating sector-specific digital strategies.Digitization significantly elevates management efficiency and strategic decision-making capabilities. The integration of digital tools with traditional management techniques results in more informed, efficient, and strategic business decisions. However, the varied impact across sectors and the rapid pace of technological advancement calls for continuous adaptation and sector-specific strategies. These findings provide vital insights for businesses navigating the digital era, emphasizing the strategic integration of digital tools in management practices for sustained success and competitiveness.

Carbon-negative Goals: Innovative Business Model for Sustainability at ‘Eat Raja’

This case study highlights the significance of transitioning towards a zero-waste business model to achieve sustainability goals, focusing on the pioneering efforts of EAT RAJA, India’s first Zero Waste Juice Bar. Founded by Mr Anand Raj B. S. N in 2018, EAT RAJA emerged as a beacon of innovation, redefining waste management strategies and promoting environmental stewardship. Mr Anand Raj’s journey from being a software engineer and radio jockey to the proprietor of EAT RAJA is characterised by a profound personal experience following his father’s passing. In March 2018, he transformed his father’s juice shop into EAT RAJA, commemorating his legacy while embracing a new vision centred on sustainability. EAT RAJA’s business model innovation revolves around zero waste principles, demonstrated through the elimination of plastic usage and the utilisation of fruit shells as containers. The company’s commitment to environmental responsibility extends to waste management practices, with fruit shells repurposed as cattle feed or transformed into bio-enzymes. Moreover, the incorporation of vegan options further aligns with EAT RAJA’s ethos of promoting eco-friendly practices. The case study underscores the integration of environmental considerations into strategic management and business models, emphasising sustainability as a driver of competitive advantage and societal value creation. By embracing innovation and sustainability as core principles, EAT RAJA exemplifies the transformative potential of businesses in driving positive environmental change. The case study offers insights into the challenges and opportunities associated with adopting a zero-waste business model, illustrating the broader implications for corporate sustainability practices and societal well-being.

Aeronautical Infrastructure Optimization to Enhance the Strategic and Operational Business Performance of Small Airports

Airport business management literature commonly evaluates the performance of these organizations based on the number of passengers and cargo processed, aircraft movements, number of runways, number of employees, and passengers’ terminal dimension, among other factors concerning commercial aviation, commonly applied to large structures, with gaps being identified in the literature of small airports. The identification and analysis of the main factors that interfere with the performance of airport business, and the strategic and operational management of small public airports have been analyzed from 24 small Brazilian airports. The study employed the Data Envelopment Analysis method based on the Charnes, Cooper, and Rhodes model, as well as the Banker, Charnes, and Cooper model, adapted for Visual Basic Analysis. The main results demonstrate that infrastructural characteristics, such as runway width, pavement classification number, runway length, buldings' age, maximum take-off weight of the critical aircraft, passenger terminal size, and air cargo and passengers processed, show significant relevance to the operational performance of small airports. The main theoretical implications of the study are the definition of strategic and operational parameters that impact the performance of small airports, which can be used as a reference by air transport decision-makers.

How Could Digital Transformation Help Medium-Sized Enterprises Access Thailand’s New Capital Market Financing (LiVEx) to Support Sustainable Growth in the Digital Economy Era?

In today’s modern era, digital transformation serves as a crucial element for organizations to gain a competitive edge and optimize their operating systems. However, medium-sized enterprises in Thailand face difficulties in accessing capital market financing, despite its significance in promoting the development of small- and medium-sized enterprises according to the 13th National Economic and Social Development Plan. One potential solution to this issue is digital transformation, which can help these enterprises achieve their strategic business objectives and find a reliable source of funding while enhancing their reputation and credibility, thereby contributing to the growth of the economy as a whole. This study utilized a mixed-methods approach to explore how digital transformation can assist medium-sized enterprises in accessing LiVEx, a new capital market for Thai SMEs. We conducted extensive research and interviewed 12 senior executives across three groups, government agencies, LiVEx-listed companies, and social associations, to develop a questionnaire and conceptual model. Data collected from 360 individuals working in medium-sized enterprises in Thailand collected using an online questionnaire were then analyzed, using CFA and SEM techniques to validate the model. Our study emphasizes the importance of digital literacy, digital usage, and digital advocacy in the success of digital transformation in accessing Thai capital market financing. These findings serve as a valuable knowledge repository for future research.

Implementation of Data Mining to Determine Sales Patterns Using the Apriori Method

Research on the Implementation of Data Mining to Determine Sales Patterns Using the Apriori Method is an effort to understand and utilize sales data in making more informed and strategic business decisions. The main goal of this research is to extract hidden patterns from large sales data sets, which cannot be discovered by manual analysis alone. This research process is divided into several key stages, namely Data Selection, Preprocessing, Transformation, and Data Mining. The research results show that the Apriori method is effective in finding purchasing patterns. In terms of the frequency of 2 itemsets, the highest support value was found to be 1, which indicates that the combination of the two products is always purchased together in all transactions. For 3 itemsets and 4 itemsets, the high support value of 0.9 also indicates the existence of product combinations that are often purchased together. In terms of confidence, 2 itemsets show the highest value of 1.25, indicating that purchasing one product has a high tendency to be followed by purchasing other products. For 3 itemsets and 4 itemsets, the confidence values show a slightly lower trend but are still significant. Furthermore, lift analysis provides additional insight into the strength of association between itemsets, with 4 itemsets showing the highest lift value of 1.30, indicating the product combination has a very strong association compared to random expectations. This research confirms the potential of the Apriori method in finding valuable sales patterns, which can help companies make strategic decisions for increasing sales and customer satisfaction.

Chatbot Design and Implementation: Towards an Operational Model for Chatbots

The recent past has witnessed a growing interest in technologies for creating chatbots. Advances in Large Language Models for natural language processing are underpinning rapid progress in chatbot development, and experts predict revolutionary changes in the labour market as many manual tasks are replaced by virtual assistants in a range of business functions. As the new technology becomes more accessible and advanced, more companies are exploring the possibilities of implementing virtual assistants to automate routine tasks and improve service. This article reports on qualitative inductive research undertaken within a chatbot development team operating in a major international enterprise. The findings identify critical success factors for chatbot projects, and a model is developed and validated to support the planning and implementation of chatbot projects. The presented model can serve as an exemplary guide for researchers and practitioners working in this field. It is flexible and applicable in a wide range of business contexts, linking strategic business goals with execution steps. It is particularly applicable for teams with no experience in chatbot implementation, reducing uncertainty and managing decisions and risks throughout the project lifecycle, thereby increasing the likelihood of project success.