Volatile Business Environment Research Articles

Pathway towards SME competitiveness: Digital capability and digital business model innovation

Digital transformation has irrevocably redefined the landscape of contemporary business operations, heralding a new era in which DBMI has emerged as a critical strategic lever for competitive survival. Anchored on the dynamic capabilities theory, present study aims to meticulously investigates the influence of digital capability (antecedent) on DBMI and a keen focus on how DBMI, in turn, influences SME competitiveness (outcome). By adopting purposive sampling approach, data were collected from 132 SMEs representatives holding management positions in Malaysia using Google Form. The PLS-SEM analysis was rigorously carried out to verify the proposed hypotheses. The empirical findings illustrate that digital capability positively affects all components of DBMI. Of these, value creation, value proposition, and value capture innovation significantly bolster SME competitiveness, whereas value delivery innovation does not exhibit a similar effect. Considering the scarcity of empirical research on the antecedents and outcomes of DBMI, this study contributes to the theory of dynamic capabilities and improves the current literature on DBMI by providing empirical insights from Malaysian SMEs context. By affirming the role of digital capability and elucidating how DBMI can enhance competitiveness, the findings offer actionable guidance for SMEs navigating the complexities of a volatile business environment. Since this study focuses specifically on Malaysian SMEs within emerging economies, it paves the way for future investigations in developed economies and diverse regional contexts to further validate and expand upon the relationships identified between DBMI antecedents and outcomes.

Https://www.innovativehumancapital.com/article/the-modern-manager-navigating-a-complex-role-in-today-s-organizations

The role of the manager has become increasingly complex due to forces such as globalization, technology disruption, and changing worker expectations, requiring proficiency across strategic planning, leading others, communicating, developing talent, and other diverse hard and soft skills to navigate today's volatile business environment successfully. While leading organizations recognize high-quality managers as a strategic asset, attracting and developing top management talent presents ongoing challenges, as younger professionals are less interested in management careers due to workload demands, a skills gap exists between required competencies and what new or promoted managers possess, and traditional training methods often provide inadequate preparation, resulting in few managers being truly ready for senior roles. To address these issues, experts recommend a strategic, multifaceted approach including updating manager job profiles and career paths, establishing formal mentoring and coaching, deploying strategic stretch assignments, implementing blended leadership training programs, and utilizing 360-degree performance evaluations to gain competitive advantages in hiring, retention, and leadership development.

Crisis Management Research (2014-2023) in the MICE Industry: A Review and Research Agenda

The 21st century is seen as a volatile business environment and requires a proper crisis management standard for most organizations including the MICE sector. Nowadays, managers seek to deal with a potential crisis effectively, with minimum losses or to avert the potential crisis in the best case. The goal is obvious: minimize the impact of the crisis or avoid a potential crisis. This study aims to investigate relevant research domains in the MICE/business events industry context. This paper found that there was very limited study on the topic. The topic of crisis management in the MICE/business events industry only started to gain much attention after COVID-19. To understand how crisis management practices have been adopted in the industry, the authors reviewed 32 articles including 29 papers on COVID-19, spanning 10 years, between 2014 and 2023. The findings showed that the research focuses on crisis management, crisis impact, response, resilience, communication, and recovery. Looking back, health-related crises (including COVID-19), political disturbances and terrorism themes are the biggest trends. This study addressed the need for more study on the topic for advancing knowledge, addressing emerging challenges, and applying findings to improve practice and decision-making as well as to develop a newly conceptual framework that places operational resilience on an equal footing with financial resilience, with indicators adapted to the risk profile of the operating model.

Building smart product-service systems capabilities for circular supply chains in the Industry 4.0 era

A smart product-service system is an integrated digital infrastructure that brings together products and services to provide clients with a full range of options. A smart product-service system is a crucial capability that enhances collaboration among several parties in a supply chain and gives businesses valuable insights into performance. This study investigates (a) the zero-level capabilities (also known as organizational capabilities) that influence dynamic capabilities (i.e., smart circular product-service systems capabilities) building in the Industry 4.0 era while environmental dynamism acts as a moderator, and (b) how the smart circular product-service systems capabilities can support firms’ (financial and environmental) performance. Based on the data collected from the manufacturers who have been actively involved in smart circular product-service system based projects, our findings reveal that three zero-level capabilities (i.e., product lifetime database creation capabilities, analytics and business intelligence capabilities and actuating capabilities) are crucial for building dynamic capabilities (i.e., smart circular product-service systems capabilities) in a volatile business environment. Besides, we also highlight how these capabilities can positively affect firms’ financial and environmental performance.

The Use of Innovation: A Source of Competitive Advantage for Companies: Bearing Point Case Study

Abstract This thesis explored the topic of “innovation as a competitive advantage” and how this factor contributed to the success of BearingPoint. It seems that innovation will be a matter of concern for all market participants who intend to maintain effective competition over a long period in the complex and volatile business environments. Initially the “innovation as a competitive advantage” was generally introduced and then an overview of existing studies on this topic was presented. It became evident that innovation was a factor that distinguished if companies remained successful for a long time on the market or not. Finally, an example from BearingPoint was described and discussed: a purely typology of innovation carried out from them with the help of qualitative research. For this purpose, an interview with the company’s executives was conducted in semi-structured format for flexibility and more likelihood of new input. Moreover, it was more beneficial to see various viewpoints and receive the maximum amount of data, so instead of one respondent, five BearingPoint executive managers from different departments were interviewed. The main topics that were addressed were: the flow of innovation from idea to implementation, obstacles and success factors. This case study provided an in-depth analysis on how innovation can create a competitive edge. One objective was to examine thoroughly how these innovations impact company success and demonstrate that they indeed enhance their competitiveness. In the final section there is concluded that innovation is indeed one of the key success factors that help companies achieve a better competitiveness and maintain a powerful market position for a long time. This study reveals relevant findings for companies that work in highly competitive market environments.

Analysis of the “Global Niche Top” Strategy of Regional Companies in Japan – RHEON Automatic Machinery Co., Ltd.

Abstract This paper illustrates how Rheon Automatic Machinery Co., Ltd., the largest manufacturer of food molds in the world, uses operational and manufacturing complexity to create sustainable competitive advantage in a highly volatile business environment. In these days of increased digitalization, high-tech and intelligent business solutions, it is still of interest to review some rather analogue, but highly successful manufacturing companies which do not rely on high-tech to charm their customers, create employee engagement, global advantage and social impact, while nourishing sustainably business opportunities. This research further explores core elements of talent attraction, retention, workforce planning and development, as well as organizational development techniques unique to Rheon Automatic Machinery Co., Ltd.

Innovation Strategy in Building an Organisational Culture that Supports Business Change: A Review from a Corporate Strategy Perspective

The era of globalization, technological advancement, and rapid market dynamics has created a highly volatile business environment. Companies are pressured to adapt to these changes or risk becoming obsolete and irrelevant. Innovation has become the key to addressing the challenges of business change. This research aims to investigate the relationship between innovation strategy, organizational culture, and corporate strategy in the context of business change, with the goal of providing better insights into how companies can build a culture that supports innovation as an integral part of their strategy. The research method employed in this study is a literature review using a qualitative approach and descriptive analysis. Descriptive analysis will be used to present and interpret findings from articles obtained from Google Scholar between 2011 and 2023. The study results indicate that in facing rapidly changing business dynamics, innovation is crucial to maintaining organizational relevance and competitiveness in a competitive market. Innovation strategy must be integrated into the organizational culture to create an environment where new ideas can flourish and be effectively implemented. Design-based approaches, supportive leadership, flexible organizational structures, and appropriate incentives are essential elements in building a strong culture of innovation.

Relevance of classical management concepts in the contemporary era – a case study of Fayol’s principles

Purpose This hypothetical case study aims to revisit the classical model given by Henri Fayol whereby he put forward a set of 14 principles to guide managers in decision-making across organizations. The case study showcases the dilemma in which the top manager of an automobile company finds himself when some of the very basic principles – on which the whole discipline of management is founded – are ignored. It will also serve as an aid for faculty members in B-Schools to teach students the significance of basic management principles postulated many years back which stand relevant even in contemporary times.Design/methodology/approach This case study is based on a hypothetical scenario in the corporate world. Different incidents in a fictitious automobile manufacturing firm are presented and the corresponding principles given by Henri Fayol are inferred.FindingsThis case study highlights that decision-making gets complicated if fundamental principles of management are not complied with. The decision taken during each and every situation which has been discussed in this case study is contrary to the correct course of action as propounded by Fayol. Modern-day managers must acknowledge the relevance and importance of these principles for achieving success in business.Originality/value This case study underscores that even in this volatile business environment where most of the management practices are technology-driven, we cannot disregard the most elementary rules of management. The managers working at different levels in the organizational hierarchy may be guided to make the right decisions in situations similar to the ones described.

INTEGRATING ENTERPRISE RISK MANAGEMENT (ERM): STRATEGIES, CHALLENGES, AND ORGANIZATIONAL SUCCESS

Implementing Enterprise Risk Management (ERM) is pivotal for organizations striving to navigate and excel within increasingly complex and volatile business environments. This paper explores the core principles of ERM and underscores its crucial role in achieving organizational objectives by enhancing decision-making, risk awareness, and resilience. It highlights the benefits and challenges of ERM implementation, with a strong emphasis on the empowering role of leadership in this process. It also emphasizes the necessity for strategic resource allocation, and effective integration into organizational processes. Additionally, the paper examines key factors that contribute to the success of an ERM program, such as adaptability and continuous improvement. Through real-world case studies, the paper illustrates how successful ERM implementation can significantly benefit organizations, demonstrating quantifiable improvements in operational performance and strategic outcomes. These discussions aim to provide a comprehensive understanding of the importance of ERM in modern business practices, advocating for its widespread adoption and continuous evolution to meet emerging business challenges.

Формирование системы оценки эффективности бизнес-процессов на базе SMART-подхода

Aggressive and volatile business environment determines the need to study and use innovative and progressive management paradigms that are able to ensure the competitiveness of enterprises in target markets. The subject of the study is a set of theoretical and applied principles for evaluating the effectiveness of economic entity’s business processes based on a system of certain indicators. The purpose of the study is to develop a methodology for evaluating the effectiveness of enterprise’s business processes based on the SMART approach. The authors present their vision of the groups of indicators that can be used to determine the effectiveness of business processes. The study uses a SMART approach to setting goals, which helps to correctly formulate the desired result and provides an understanding of the direction. The authors propose an approach to evaluating the business processes’ effectiveness based on six criteria: process efficiency, efficiency of providing the necessary resources, product cost, resource productivity, length of one technological cycle, adaptability of the process. Based on the synthesis of concepts such as the balanced scorecard, functional and cost analysis, and key success factors the authors create an original model for evaluating the effectiveness of business processes.

The Importance of Continuous Organizational Project Risk Management and the Value of Project Management Certificates in the Customers’ Eyes

In an increasingly complex and volatile business environment, organizational project risk management plays a critical role in determining the chances of project success. Project management has become a common tool in the hands of large organizations for executing development and improving their production cycles in a more carefully planned way. However, the future is often hard to predict, and unexpected events may occur which could have been avoided with the use of the right tools and mindset. This comprehensive research study aims to showcase the importance of continuous risk management in organizations and highlight how risk management contributes to successful project outcomes. By synthesizing information from 59 high-quality publications from Scopus and Web of Science, the research describes various risk mitigation methodologies used across diverse fields, and explores potential obstacles faced by project managers when executing risk management strategies. The primary research of the study builds upon a survey conducted with 181 experienced project managers across various industries to gain deeper insights into their risk management approaches and the constraints they may encounter. Additionally, the study seeks to analyse the value of obtaining project management certificates in relationship with led projects’ length and budget. Employing SPSS, the research presents descriptive statistics, regression, and correlation calculations to further analyse the data gathered. The aim of the research is to draw attention to the significance of continuous risk management, propose effective methodologies, identify and mitigate potential challenges, and shed light on the potential benefits of having certifications in the field of project management. This study aims to present valuable knowledge for both researchers and organizations striving to better understand the field of project risk management strategies through the systematic literature review and quantitative research results presented.

The Influence of Operational and Financial Risk Mitigation Strate-gies in Enhancing The Survival of Small and Medium-Sized Entities in Zimbabwe’s Volatile Business Environment

The Influence of Operational and Financial Risk Mitigation Strate-gies in Enhancing The Survival of Small and Medium-Sized Entities in Zimbabwe’s Volatile Business Environment

Planning Assistant for Medium-term Capacity Management using Deep Reinforcement Learning

Industrial companies face challenges caused by volatile business environments. In particular, changing customer demands can have large impacts on their performance. Medium-term capacity management addresses this challenge by adapting the production capacity to the customer’s demand. This is usually done by experts or, in the best cases, supported by production planning software using linear programming or genetic algorithms.There is a growing trend for using production simulations or digital twins. These simulations can be coupled with demand forecasts and machine learning to create a planning assistant tool. This tool can support the operations manager to fnd the right set of measures to adapt the production capacity based on changing customer demand.In our work, we design such a planning assistant tool by using different algorithms, including deep reinforcement learning. We apply it in a learning factory for performance comparisons and can show promising results of deep reinforcement learning. Furthermore, we can show that this simple decision support system outperforms humans in the test setting.

A risk-averse sustainable perishable food supply chain considering production and delivery times with real-world application.

In recent years, a relatively novel paradigm known as sustainable development has been introduced in response to concerns regarding the adverse impact of industrial activities on the environment and society. Managers in the food sector have been attempting to incorporate the principle of sustainable development in their supply chains owing to the paramount importance of social and environmental considerations in creating a competitive advantage for food products. To this end, we propose a multi-objective linear mathematical model considering the three dimensions of sustainability, i.e. economic, environmental, and social, to design a sustainable food supply chain. Given today's volatile business environment, we employ a robust optimization model by incorporating Conditional Value-at-Risk into the configuration of two-stage stochastic programming to tackle uncertainty and take up a risk-averse strategy in supply chain design. The model aims to identify the optimal production and delivery times of the products, investigate the effects of their perishability characteristic on inventory decisions, and assess the financial and environmental advantages of transportation decisions to improve the sustainability of logistics operations. A novel version of fuzzy goal programming approach is applied to solve the proposed model. Next, the applicability of the proposed model and its solution method is verified based on computational experiments on a real-world case study of a processed food company. Lastly, conflicts between the sustainability aspects are examined, and several sensitivity analyses on risk-aversion parameters are performed to provide managerial insights for industry executives seeking to optimize their network concerning sustainability issues and well-performance under worst-case scenarios.

THE ROLE OF SOFT SKILLS IN BOOSTING FINANCIAL METRICS FOR LEBANESE SMES

Small and medium-sized enterprises (SMEs) are critical to Lebanon's economic structure, contributing significantly to employment and economic growth. However, one of the key challenges SMEs face is maintaining robust financial performance in an increasingly competitive and volatile business environment (Mekdessi et al., 2023). While much attention has been placed on technical skills development, the role of soft skills training in enhancing financial performance has been relatively underexplored. This research examines how soft skills, such as communication, leadership, emotional intelligence, and problem-solving, directly influence the financial metrics of Lebanese SMEs. Through a quantitative analysis of SMEs that have integrated soft skills training into their development programs, this study demonstrates that such training significantly improves financial outcomes, including profitability, operational efficiency, and customer satisfaction. These findings highlight the critical importance of a balanced skillset—one that incorporates both technical competencies and soft skills—to ensure the long-term success and competitiveness of SMEs in Lebanon. Practical recommendations are provided for SME leaders to incorporate soft skills training as part of their strategic development to drive financial growth.

ФАКТОРИ ЕФЕКТИВНОСТІ ТАРГЕТОВАНОЇ РЕКЛАМИ В РІЗНИХ ГАЛУЗЯХ ЕКОНОМІКИ

In the current volatile business environment, competing for customers is a critical task for companies. A pivotal tool in this regard is targeted advertising. The purpose of this article is to examine the effectiveness of targeted advertising across various business sectors and to analyze the factors influencing the success of advertising campaigns, considering the specific characteristics of different industries. The paper explores the strategic value and effectiveness of targeted advertising within the digital marketing framework, with a particular focus on the precision of communication with the target audience through an extensive toolkit that includes behavioral analysis, geotargeting, and demographic targeting. It is noted that targeted advertising directs messages to consumers with a high level of engagement, thereby effectively reducing costs and enhancing conversion rates. An industry-specific analysis of the effectiveness of targeted advertising in the retail, financial services, healthcare, and automotive industries is presented. The effectiveness of targeted advertising is highly dependent on understanding consumer behavior patterns unique to each sector. Moreover, the integration of advanced data analytics and machine learning algorithms can significantly enhance targeting precision. Companies must also navigate the ethical considerations of data usage to maintain consumer trust. The adaptability to rapidly evolving technological landscapes is crucial for sustaining the effectiveness of targeted advertising. Emphasizing a data-driven approach can lead to more personalized and impactful marketing strategies. The importance of balancing the personalization of targeted advertising with data privacy protection is emphasized, highlighting the necessity of continuous monitoring and adaptation to legislative changes, technological innovations, and shifts in consumer preferences to ensure a successful and ethical targeted advertising strategy. The presented research may be beneficial for professional researchers, marketing analysts, businesses, and industry associations. Future studies will focus on exploring the peculiarities of applying targeted advertising in various industries, taking into account the factor of artificial intelligence.

Investment project management paradigm: budgeting challenges

Introduction. The paper discusses methods of investment capital budget management, which adapts budget management practices and increases synergy with project management, adjusting the allocation of resources in accordance with the constraints and operational risks of business processes. Businesses regularly use project management to achieve unique results with limited resources under critical time constraints. In the service sector of the economy (in particular, trade), the use of project management to achieve organizational goals is even more common. The purpose of the paper is the application of the budgeting system in the management of the investment project. Results. As a result, it encourages flexibility in dealing with contingencies, focus on a strategic perspective, speed of budget management, cost-effective budgeting, added value to the enterprise and encouragement of collaboration. Thus, constraints can be operational or managerial, related to organizational politics and culture. To identify constraints in an organization, you must understand how the organization works as a system. In the business sphere, the functioning of the company is a vision of business processes. Business processes are sets of activities that create results (products and services) whose value is perceived by interest groups (stakeholders). The impact of deterministic decisions in the short term on the overall result of the organization decreases. However, budget management methods do not represent a probabilistic approach, as seen in the proposal of the critical path method as a means of improving project management in a volatile business environment. Conclusion. It is recommended that each capital investment of the organization be structured in the form of projects, and the method of rewarding managers should also reward those who achieve goals with minimal use of investment resources. If possible, the manager should strive to evenly return resources to investment capital. Finally, it is suggested for future research to identify other business practices that can benefit from this paradigm shift.

Human capital in knowledge-based firms: Re-creating value post-pandemic

BACKGROUND/OBJECTIVE: In today’s volatile business environment, the competitive advantages of firms are temporary. The top management does not, and cannot, have all the answers to increasingly complex and rapidly changing problem situations facing their firms. Since the COVID-19 crisis, organizations have been under pressure to improve their knowledge management practices to continue creating value. Knowledge management capabilities are essential for business performance and competitive advantage. In order to ensure continuous value creation, we conducted research to identify various drivers and dimensions that were revitalized in the ongoing KM practices post-pandemic. METHODOLOGY: In this study, 81 research papers published between January 2010 and March 2022, have been examined from a knowledge management, human capital, and value creation perspective, aiming to understand how a firm can continue to create value before, during, and after the pandemic. RESULTS/CONCLUSION: Our review identifies critical factors in knowledge management and value creation and how companies generate value by leveraging KM during the COVID-19 pandemic. As a result of the research, the authors describe their findings in the form of a conceptual framework which deals with the various drivers and the factors within the KM architecture.

Sustaining management quality through stress management

PurposeThis exploratory research aims to identify the effect of perceived stress level and self-efficacy on management quality and what practices and theories need to be enhanced to improve management quality under volatility business environments.Design/methodology/approachThe study surveyed 291 working women, using the Perceived Stress Scale and the General Self-Efficacy Scale. Latent class analysis (LCA) for classifications of respondents, using categorical observed variables and MANCOVA, are applied to determine the relationship between stress and self-efficacy on the assigned classes.FindingsThe study suggests that in a highly volatile business environment, where stress is high, affecting management quality, managers as individuals fall into one of four classes that describe their techniques of coping with the stress, namely Uncommitted Experimenters, Try Anything, Intrinsically Motivated and Externally Motivated. Techniques of stress management classification are significantly related to the combined perceived stress and self-efficacy measures, with Externally Motivated respondents as the classification with a significant mean difference.Research limitations/implicationsThe main limitation of the study at hand refers to the sample size versus the number of potential factors of stress. This limitation highlights the need for further data gathering and research in this area, as stress is a critical factor of performance and often ignored in traditional management theories. Another limitation of this study is the lack of in-depth analysis of the use of meditation; its benefits and how to best use this practice in traditional work settings.Practical implicationsThe outcome of the study could have significant implications for quality of management in business, private and social sectors by providing meditation as a tool for employees and stakeholders to handle stress in conflict zones.Social implicationsUsing stress management techniques might prove to be a low-cost tool for better quality management of human assets.Originality/valueThe authors study focuses on women in volatile economic turmoil, natural devastations, conflict areas and politically insecure environments. This socioeconomic segment was rarely scrutinized despite its direct effect on a large number of economies hosting a sizeable portion of the world’s population. Interesting potential results highlight the relationship between the respondents in the Intrinsically Motivated class and stress reduction for the benefit of management quality.

Evaluating the Impact of COVID-19 on Multimodal Cargo Transport Performance: A Mixed-Method Study in the UAE Context

This research is a case study on the United Arab Emirates (UAE), exploring multimodal logistics, which involves transporting cargo using multiple modes of transportation, and investigating its challenges and opportunities during the COVID-19 pandemic from 2020 to 2022. Through a mixed-method approach of qualitative interviews and quantitative surveys, this study examines factors influencing multimodal cargo transport and its performance. Five senior executives from the logistics industry were interviewed to identify key variables, and a questionnaire was administered to 120 participants to assess the impact on shipping costs and utilization. This study reveals a significant relationship between geographical and geopolitical risks and increased shipping costs in certain regions, highlighting the need for secure and cost-effective multimodal solutions in these areas. However, shipping costs did not mediate the performance of intermodal transportation at transit hubs during the pandemic. The findings offer valuable insights for transit hubs to enhance the utilization of multimodal cargo transport during uncertain times, ultimately leading to improved logistics performance in similar hub countries. This study’s originality lies in its investigation of the resilience and sustainability dimensions in multimodal logistics during the pandemic, proposing mitigation strategies and enhancing strategic decision making in the logistics industry under volatile business environments. Future research is recommended to expand the model’s results by including data from other logistics corridors and hubs.