Volatile Business Environment Research Articles

Affective Engagement, Gender Diversity and Employee Performance in the Tanzanian Textile Industry

Employee performance is increasingly recognized as one of the key variables in human resources management, and has been the subject of increasing interest and research by many scholars. Given the dynamic and volatile business environment, the survival of any business depends on the ability of its work force to perform well in order to achieve its goals. However, in some businesses the reality is not the same, where employees are not performing well due to several factors such as low levels of affective engagement and a lack of gender diversity, which are considered to be crucial factors that influence employee performance. The low employee performance observed in the textile industry in Tanzania can partly be explained by low levels of affective engagement, and yet this sector is key to the economic welfare of the country. Most of the reviewed studies have examined employee performance based on a single dimension. This study investigated the influence of affective engagement on employee performance considering the mediating effect of gender diversity. The study sample consisted of 618 employees from textile firms in four Tanzanian regions: Dar es Salaam, Mwanza, Shinyanga, and Simuyu. Multistage sampling technique was employed, and descriptive and structural equation model were used for data analysis. This study established that affective engagement had a statistically significant, positive influence on employees’ adaptive, contextual and task performance, while gender diversity had a partial mediating effect on the influence of affective engagement on contextual and task performance. The study provided several recommendations, including the suggestion that managers should promote an environment that fosters employees’ positive emotions, energy, and enthusiasm towards their roles.

Migration planning and control in the context of manufacturing network reconfiguration

In order to remain competitive many companies are forced to exploit the existing potential for improvement across their entire manufacturing network in terms of efficiency, cost reduction, robustness and agility. In particular, the lack of a systematic decision-making process and the fact that decisions are often based on individual experience and imitative behavior lead to unfavorably structured manufacturing networks. Additionally, in increasingly volatile business environments, companies are forced to constantly rethink and thus continuously reconfigure their existing manufacturing network. Today, there are several planning approaches on factory and network level that build on modern decision support tools to enable targeted and transparent reconfiguration of manufacturing networks despite high complexity. However, the subsequent migration process (transformation of the existing network to a new target state) is mostly neglected in literature. This contribution presents an original framework for a systematic reconfiguration process of manufacturing networks. The framework combines existing approaches in literature with identified challenges in the context of three conducted manufacturing network reconfiguration use cases. To close identified gaps in literature the focus is put on the migration process. The elaborated framework is based on a rolling planning and control approach, with decision support tools (i.e. simulation & optimization) taking the leading role due to the operational, complex and dynamic nature of migration processes.

Medium-term Capacity Management through Reinforcement Learning – Literature review and concept for an industrial pilot-application

Empty storage shelves and long customer lead times due to a sharp rise in market demand from industries on the one hand (e.g., pharmaceutical products). On the other hand, increasing short-term working or unemployment due to a rapid decline in demand (e.g., automotive). Current supply and demand gaps caused by the COVID-19 pandemic remind us that successful competition in volatile business environments requires rapid adjustments of production capacities.Capacity management (CM) addresses these adjustments by adapting production capacity to market demand. Operations managers of flexible manufacturing systems can adjust the capacity by using various levers (e.g., overtime, used machines, …). To guide these managers, decision support systems (DSS) exist for short-term CM (e.g., shop floor scheduling). However, due to complexity and runtime problems, the decision-making process for medium-term CM is usually carried out with low technical support.Increases in computing power and advances in algorithm performance over the past decades have enabled Machine Learning to solve ever more complex problems such as the aforementioned issues. Reinforcement Learning (RL) in particular has shown good performance in solving short-term CM problems when compared to humans or other established heuristics.In this work we review the current literature for CM using RL in flexible manufacturing systems. We identify an existing lack of knowledge within the overlap of medium-term CM and RL. However, good performance of RL in short-term CM indicates that an application in medium-term CM should be evaluated. In addition, we propose a concept of a method for medium-term CM based on RL to support operations managers in the decision-making process. The resulting DSS could have a significant impact on production performance, especially in terms of capacity adjustment speed.

Urban employment in post-transition economies: skill mismatch in the local labor market

The paper explores the mismatch between the skills and qualifications required by the labour market and those acquired through education and on-the-job learning. The skill mismatch in transition economies tends to be even more pronounced as the labour markets in these countries are characterized by structural unemployment, affecting both older workers with obsolete skills and the young ones. Employers face poor incentives for investing in workforce skill development, due to the inadequate investment climate and volatile business environment. Transition countries face increasing outward mobility of an educated workforce, loss of human capital, and shortage of workforce in the fields such as ICT, medicine, science and research. The research is based on empirical data generated in a survey on ICT and manufacturing enterprises in the City of Niš, Serbia. The research methodology combines workers' self-assessment method for the skill gap measurement and the competence approach combined with the statistical methods. The findings indicate the presence of a qualification mismatch, in the form of the over-qualification as a dominant irregularity in the analysed labour market. The results of the study are expected to contribute to creating a network of policy instrumentaria that tend to be effective on a sub-national level in addressing the mismatch.

Information Technology Integration to Promote SMEs Productivities and Sustainability

Abstract As the Small and Medium-size Enterprises (SMEs) are essential to any nations’ economy, so is the alignment of Information Technologies in improving business agility, sustainability and productivity. The aim of this article is to critically assess the level of business and IT infrastructure alignment with the SMEs. Data were collected from 230 SMEs in Nigeria and South Africa, and statistical software was used to analyse and present results. The findings indicated a lack of partnerships between IT and business units/department (r = -.265), and this negatively affected the SMEs ability to maximise the potential of their employees due to lack or inability of the IT and business department to collaborate (r = -.167) in order to increase operational agility. Furthermore, the SMEs ability to integrate their IT infrastructure with the scope of their IT architecture is very low, but barely above average (µ = 2.98). However, the SMEs compliance with the IT standards were robust (µ = 4.07), with the level of IT alignment with their business processes (µ = 3.08) reaching level three. Furthermore, these firms have developed an established strategy to handle IT disruption to business operations (µ = 3.42), due to a flexible scope of IT infrastructure (µ = 3.47) with their business and IT environment. Nevertheless, the study concluded that the SMEs must achieve between level 4 and 5 of business-IT alignment, to be able to withstand rapid disruption from more sophisticated technologies and volatile business environment.

Risk Management Maturity, its Determinants and Impact on Firm Value: Empirical Evidence from Joint-Stock Companies in Bosnia and Herzegovina

Abstract The current extremely volatile business environment requires companies to manage a wide range of risks. Poor management of the company’s main risks can lead to significant value losses for key stakeholders. Companies strive to preserve and protect their value by developing risk management models based on organisational culture, processes and structure. The main objective of this paper is to assess the maturity of risk management, explore its determinants and examine its impact on firm value. In order to quantify the maturity of the risk management model, we have created an index based on 31 reference components whose weighting values have been determined by a group of experts using the Delphi technique. In addition, this paper aims to identify the determinants of the risk management model maturity in companies in Bosnia and Herzegovina (B&H). Based on the estimated ordinary least squares (OLS) model, the results confirm that companies from the financial sector have more mature risk management models compared to the real sector. Moreover, the size of the firm and the type of auditor were identified as additional determinants of risk management maturity. The OLS model confirms the positive and statistically significant impact of risk management model maturity on Tobin’s Q value.

Coping with uncertainty: Exploring the foresight actions’ role in supporting growth-orientation among Finnish dairy farmers

The two objectives of this study are to investigate how Finnish dairy farmers cope with uncertainties of their external business environment and how they apply foresight methods in their strategic management, e.g., in planning for expansion. The research data consist of 135 survey responses from larger than average dairy farmers across Finland. To reveal the role of future thinking and long-term management in farmers’ goal setting, we first carried out an explorative factor analysis (EFA) for the management related claims. The identified latent factors were managerial, planning, and cautious approach. Significant differences in managerial approach were found with respect to turnover and age of farmers. Planning approach correlated with farmer’s time horizon. In the binary logistic regression for predicting the growth orientation farmer’s planning approach, age and length of time horizon were the only significant predictors. Many farmers are particularly cautious when it comes to planning the future of milk production. Strengthening farmers’ foresight skills with training may help farmers to cope with volatile business environments.

Determinants of Liquidity Management: Evidence from Nigerian Banking Sector

The study examined the determinants of liquidity management in twelve Nigerian banks during 2009–2018. Liquidity ratio (LQR) and deposit to asset ratio (DAR) were used as surrogates for liquidity management. As the potential liquidity management determinant indicators, five bank-specific variables (capital adequacy, size, asset quality, profitability and deposit growth) and three macroeconomic variables (GDP growth rate, inflation rate and interest rate) were used as proxies. Results from balanced fixed effects least square regression analytical technique show that size, profitability, GDP growth rate and inflation rate are important liquidity determinants in Nigerian banks. Specifically, bank size has a positive and significant influence on LQR, while GDP growth rate and inflation rate exhibit a negative and significant relationship with LQR. It further reveals a positive and significant relationship between profitability (ROA) and DAR. It is recommended that banks’ management should focus attention on both bank-specific (size and profitability) and macroeconomic (GDP growth and inflation rate) factors when deciding appropriate liquidity management strategy to be adopted. These four variables have the capacity to influence the profitability, sustainable growth and survival of banks operating in a volatile business environment such as Nigeria.

Awareness of Sustainability and its Impact on Gaining Sustainable Competitive Advantage in the Sri Lankan Food Industry

Awareness of sustainability and compliance with the sustainability requirements in volatile business environments are important with the increasing concern of customers and legislations when considered about the current business arena. Being one of the most competitive yet the most pollutant contributing industries in Sri Lanka, gaining a sustainable competitive advantage with an accountable awareness of sustainability in the food industry remains questionable. This study aims to identify the impact of awareness of economic, environmental, and social sustainability on gaining sustainable competitive advantage for an organization. The study focuses on the top management of hotels, restaurants and fast - food chains in Western Province. The research sample includes 150 respondents which were extracted through stratified and convenience sampling techniques while mixed - method technique was adopted for data analysis. The first study follows the quantitative method in which data were collected by using a self-administered questionnaire, while qualitative data were collected via interviewing participants in the second study to validate the findings of the first study. The results revealed that awareness of environmental, economic and social sustainability create a significant impact in gaining sustainable competitive advantage. Particularly awareness of social sustainability highly impacts on gaining competitive advantage compared to the other two variables (R2 = 0.85). These findings were validated via qualitative analysis and findings revealed that having awareness about the three pillars of sustainability will have a significant impact on gaining sustainable competitive advantage. The researcher was able to contribute to the existing literature of relevant constructs and the study contributes as a strategic tool for policy makers in the sustainable strategy formulation process in order to gain sustainable competitive advantage by adopting the latest market trends within the industry. This exposed to number of future research areas on different influential factors relevant to gaining sustainable competitive advantage in addition to the elements discussed within the study.
 Keywords: Environmental sustainability, Social sustainability, Economic sustainability, Sustainable competitive advantage

Rebranding Strategies and Performance of Savings and Credit Cooperative Organization in Kirinyaga County, Kenya

Many SACCOs operating in Kirinyaga County are facing fierce international and local competition forcing relocation to other counties and shop closure to others. Different branding strategies are being employed by SACCOS in order remain competitive in the increasing volatile business environment. Hence this research will investigate how Kirinyaga County Savings and Credit Cooperative Organization’ performance is influenced by rebranding strategies. The specific objectives were to examine how corporate culture revision, product differentiation and business process reengineering influence performance. Dynamic capability and RBV theories will form the study’s anchor. Descriptive survey research design was adopted. Three SACCOs that have rebranded in Kirinyaga County will be the population of interest. The target population was the 172,222 ordinary members and 33 managers. In respondents’ selection simple random sampling method was utilized and in respondents’ sampling stratified sampling method will be utilized. For data collection, questionnaires were used. The pilot study findings assisted the researcher in improving the instrument and ensure that the questionnaires items are valid and reliable. Descriptive as well as inferential statistics were used to analyze data. Standard deviation, mean and distribution frequency were utilized in data presentation. Further, the study conducted inferential statistical involving regression and correlation and analysis. It found a positive and significant association between corporate culture revision, product differentiation, business process reengineering and performance. The study concluded that employees’ ability is supported by well-defined corporate values vision and mission. The study concluded that introducing distinctive, unique features or characteristics to a product with the aim of ensuring a unique product selling proposition is product differentiation. The study concluded that business process enable the organization to analyze its workflows to discover processes that are not efficient and then optimize those processes to eliminate tasks that do not offer any value. The study recommends that the organization should demonstrate to employees that their involvement is critical. The study recommended that the organization should understand the market type which it is competing with, give consideration to what their target clients want from their product which the competing products are not offering, differences in product attributes, and have direct online access of the product by customers. The study recommends that the organization should first define its requirements based on a benchmark, current state, and an ideal future state. Understand what the current performance level is based on the objective and key performance indicators or break the overall process into component parts and set up benchmarks within each one.

EFFECT OF STRATEGIC LEADERSHIP ON ORGANIZATION PERFORMANCE OF STATE-OWNED SUGAR MANUFACTURING FIRMS IN WESTERN KENYA

Properly applied strategic leadership is precursory for effective strategy formulation, implementation and control especially in the current highly volatile business environment. Due to limited empirical findings locally on how strategic leadership affects performance of organizations, this study increased this knowledge by answering the question: what is the effect of strategic leadership on organization performance of state-owned sugar manufacturing firms in Western Kenya. The main objective of the study was to assess the influence of strategic leadership on organization performance of state-owned sugar manufacturing firms in Western Kenya. Specifically, the study aimed to; assess the influence of strategic direction setting on organization performance of state-owned sugar manufacturing firms in Western Kenya, determine the influence of core competence exploitation on organization performance of state-owned sugar manufacturing firms in Western Kenya, establish the influence of organization culture building on organization performance of state-owned sugar manufacturing firms in Western Kenya and assess the influence of organization controls on organization performance of state-owned sugar manufacturing firms in Western Kenya. The study was guided by upper echelon theory, environment dependency theory, contingency theory and trait theory. Target population was 917 employees from Chemelil, South Nyanza, Muhoroni, and Nzoia. Survey design was adopted for the study. Simple random sampling technique was used to arrive at the population sample; total sample size of 269 respondents was used. Data collection instruments were both primary and secondary. Primary data was collected by way of semi structured questionnaire. Secondary data collection involved documentary analysis to capture information on organization performance of state-owned sugar manufacturing firms in Western Kenya. Pilot study was carried out on a group of employees from Nzoia Sugar Company to ensure the research instruments capture the required information before carrying out the research. Descriptive and inferential statistics which included mean, frequency and regression was used in this study. The test criteria was to reject the first null hypothesis if the value of beta was not equal to zero (β1 ≠0). From the results, the beta value for strategic direction setting 0.346 at p< 0.05. This result implied 34.6% of change in Organization performance is attributed to Strategic direction setting. Therefore the first hypothesis was rejected. The test criteria was to reject the second null hypothesis if the value of beta was not equal to zero (β2 ≠0). From the results, the beta value for core competencies exploitation from the regression model was 0.503 at p< 0.05. This result implied that 50.3% of change in Organization performance is explained by Core Competencies exploitation. Therefore the second null hypothesis was rejected. The test criteria was to reject the third null hypothesis if the value of beta was not equal to zero (β3 ≠0). From the results, the beta value for organization culture building from the regression model was 0.399 at p< 0.05. This results implied that 39.9% of change in Organization performance is attributed to Organization Culture building. Therefore the third null hypothesis was rejected. The test criteria was to reject the fourth null hypothesis if the value of beta was not equal zero (β4 ≠0). From the results, the beta value for organization controls from the regression model was 0.315 at p< 0.05. This result implied that 31.5% of change in Organization performance was explained by Organization controls, hence the fourth null hypothesis was rejected. In conclusion, the study established a statistically significant correlation between strategic leadership and organization performance of state-owned sugar manufacturing firms in Western Kenya. The findings of the current study form a basis for reference in future by interested parties. Further research should be carried out on the Influence of strategic leadership on organization performance of privately owned sugar manufacturing firms in order to make generalizations as relates to effect of strategic leadership on organization performance of sugar manufacturing firms in Western Kenya.

A cooperative coevolution algorithm for complex hybrid seru-system scheduling optimization

Under the current volatile business environment, the requirement of flexible production is becoming increasingly urgent. As an innovative production mode, seru-system with reconfigurability can overcome the lack of flexibility in traditional flow lines. Compared with pure seru-system, the hybrid seru-system composed of both serus and production lines is more practical for adapting to many production processes. This paper addresses a specific hybrid seru-system scheduling optimization problem (HSSOP), which includes three strongly coupled sub-problems, i.e., hybrid seru formation, seru scheduling and flow line scheduling. To minimize the makespan of the whole hybrid seru-system, we propose an efficient cooperative coevolution algorithm (CCA). To tackle three sub-problems, specific sub-algorithms are designed based on the characteristic of each sub-problem, i.e., a sub-space exploitation algorithm for hybrid seru formation, an estimation of distribution algorithm for seru scheduling, and a first-arrive-first-process heuristic for flow line scheduling. Since three sub-problems are coupled, a cooperation coevolution mechanism is proposed for the integrated algorithm by information sharing. Moreover, a batch reassign rule is designed to overcome the mismatch of partial solutions during cooperative coevolution. To enhance the exploitation ability, problem-specific local search methods are designed and embedded in the CCA. In addition to the investigation about the effect of parameter setting, extensive computational tests and comparisons are carried out which demonstrate the effectiveness and efficiency of the CCA in solving the HSSOP.

A Review of Robust Operations Management under Model Uncertainty

Over the past two decades, there has been explosive growth in the application of robust optimization in operations management (robust OM), fueled by both significant advances in optimization theory and a volatile business environment that has led to rising concerns about model uncertainty. We review some common modeling frameworks in robust OM, including the representation of uncertainty and the decision‐making criteria, and sources of model uncertainty that have arisen in the literature, such as demand, supply, and preference. We discuss the successes of robust OM in addressing model uncertainty, enriching decision criteria, generating structural results, and facilitating computation. We also discuss several future research opportunities and challenges.

Relationship between manager credibility, strategic alignment and employee motivation

Orientation: In today’s volatile and dynamic business environment, organisations need to continuously seek opportunities to increase their competitiveness through the human capital they employ. A sound understanding of factors that influence manager credibility, strategic alignment and employee motivation could enable organisations to proactively implement interventions that improve their competitive stance. Research purpose: This study sought to examine the relationship between manager credibility, strategic alignment and motivation. The role of strategic alignment as a mediator between manager credibility and motivation was also explored. Motivation for the study: Organisations need to have employees that are motivated and have a strategic fit. Managers play a significant role in fostering such. More so, it is essential to highlight the vital role that managers play in strategic alignment and employee motivation. Research approach/design and method: A quantitative and cross-sectional research design was used. Non-probability sampling was employed, and data were collected by using established questionnaires from a sample of N = 3112. Participants of the study are employed within various industries based in South Africa, Southern Africa and the United States of America. The data were analysed by using descriptive and inferential statistics. Main findings: A positive relationship between all the variables were established. The three variables (manager credibility, strategic alignment and motivation) were found to be significantly positively correlated. Manager credibility influences motivation and strategic alignment. Manager credibility and strategic alignment were both found to have a statistically significant influence on employee motivation. The mediation analysis shows that strategic alignment plays a positive mediating role between manager credibility and motivation. Practical/managerial implications: Recommendations are schematically presented in the form of a model, which, when implemented, have the potential to enhance employee motivation. Contribution/value-add: The study provided insight into the influence of manager credibility and strategic alignment on employee motivation.

Shared burdens: The General Average adjustment of the Jan Maria

The Jan Maria was a Dutch schooner that, in 1883, en route from the Baltic to its home port, was forced to jettison cargo during a fierce storm, which resulted in a General Average (GA) procedure. GA refers to a method that redistributes damages that were deliberately inflicted by the master, in order to save the ship and its cargo, among all those parties that benefited from the action. The report of this procedure of the Jan Maria has been preserved and is exceptional in its completeness. It offers a unique view on a complex procedure and also on the coping mechanisms of small-scale entrepreneurs in a volatile business environment. In this article, I will explain the principle and functioning of GA, and I will argue that, in spite of financial innovations like marine insurance, GA remained an important part of risk management.

ACTUAL PROBLEMS OF ENTERPRISES’ MARKETING MANAGEMENT

The purpose of this paper is to provide an overview of the most current problems and issues in marketing management. As all enterprises deal with various difficulties in their business planning, implementation and control, these issues and problems have to be recognized, dealt with, and solved. Most of the business strains will have a lot to do with diverse marketing aspects, as marketing is the main link between enterprises and their markets and customers; strategically mappedand implemented marketing helps to create competitive advantage and pave the way for success, but different problems can endanger firms’ marketing process, thus in today’s volatile business environment marketing executives have to bear in mind and deal with various facets of the marketing in rapidly changing world.

ADOPTION OF MOOCS AND ONLINE TEACHING AMIDST THE COVID-19 PANDEMIC, A STUDY FROM THE PERSPECTIVE OF STUDENTS AND FACULTIES IN INDIA

COVID-19 Pandemic has presented a slew of challenges to almost every industry bringing opportunities for few and challenges for others. The key to survival in this volatile, uncertain, complex and ambiguous business environment is adapting and changing business processes to suit the new normal. Education industry has not been immune to this pandemic; it has brought a myriad of challenges and opportunities for the students and teachers community. Institutions around the world have adopted E-teaching methods to serve the students from an arm’s length; faculties have also taken lockdown period as an opportunity to sharpen their knowledge domain by pursuing various MOOC/Online courses. This study is an effort to understand consumer behavior in the adoption of E-learning/teaching among students and faculties. The objective of this paper was to create and test two regression models on the adoption of e-courses by students and adoption of online teaching/online learning among faculties. Additional objectives included assessing the difference in adoption of elearning/teaching between different groups of students/faculties on the basis of demographic factors.

Law and Technology: Company Law

In this chapter, we discuss areas of company law where technology has already played a part and also predict where it may soon transform legal practice. We focus on shareholder rights, share capital, informational costs, fundraising and artificial intelligence. The central theme, though, is that to prevent statutory obsolescence, laws should be drafted with enough flexibility to accommodate changes in technology. This will allow practitioners the leeway to push on the edge of the envelope and let market forces help in determining the most efficient ways of doing things in a volatile business environment.

The Effect of Incentives and Leadership Styles on Creative Performance

Introduction/Main Objectives: This study investigates whether the type of incentives offered and leadership styles interact to affect creative performance. Background Problems: Creativity is highly needed by companies to survive in a volatile business environment. Prior research found that management control systems and the leadership style were able to stimulate creativity. It is still unclear which type of incentives and leadership styles are able to stimulate creativity. Therefore, this research proposes a research question, what kind of management control systems and leadership style can improve creative performance? Novelty: This research focuses on comparing monetary and non-monetary incentives, based on competition, to produce the most creative ideas, but empirical studies into the context of creativity are still limited. Furthermore, this study investigates two different leadership styles and it sheds light on the fact that the leadership styles needed in a creative environment differ from those styles used in a non-creative environment. Research Methods: This study was conducted using a 2x2 between subject experimental design with two incentive treatments (tournament and recognition) and two leadership style treatments (directive and empowering). Finding/Results: Consistent with Lourenco (2016), monetary incentives (including tournaments) and non-monetary incentives (recognition) are substitutive. Furthermore, the empowering leadership style leads to a greater creative performance than the directive style does. The results indicate that, in the condition of a tournament incentive, empowering leadership is able to produce a higher creative performance than directive leadership can. Conclusion: There is no significantly difference between the effect of monetary incentives and non-monetary incentives on creative performance. This study’s result is consistent with the situational leadership theory, certain types of leadership are appropriate for certain environmental conditions. For improved creative performance, employees need to be empowered because they need the authority and freedom to develop ideas. This study provides knowledge about the impact of incentives and leadership styles on creative performance. Furthermore, this study provides practical knowledge for companies on how to improve creativity in the work environment by using certain incentives and leadership styles.

Using the analytic hierarchy process to design supply chains based on demand uncertainty and implied resource requirements

In today's volatile business environment, a single supply chain (SC) for a firm can be quite risky. The loss resulting from any disruptive operations, in a case with a single SC, can be much higher than costs of having a few resilient supply chains. For a firm to provide its customers with the desired responsiveness, a few supply chains should be developed. However, due to scarcity of resources, it would be impossible to indiscriminately provide top quality service to all customers. This study uses the Delphi method and analytic hierarchy process (AHP) to rank a firm's customers and to determine the implied resource requirements to fulfil customer orders. Using this information, a customer priority index (CPI) matrix is constructed. The CPI matrix is subsequently divided into four quadrants and for each quadrant, a unique SC strategy is formulated, considering the customer's importance and degree of scarcity of resources.