International Journal of Business Performance Management (10 papers in press)
DO SOCIOECONOMIC CONTEXTUAL FACTORS INFLUENCE SMEs SERVICE QUALITY? A cross-sector and cross-city SERVPERF analysis
by Pedro Nascimento De Lima, Aline Dresch, Daniel Pacheco Lacerda
Abstract: There is an increasing body of knowledge on service quality relationship with many contextual factors, including culture, firm size, and public vs. private settings. However, local socioeconomic factors influence towards SMEs Service Quality is still unknown. We conducted statistical analyzes to observe the relationship between contextual socioeconomic factors of an SMEs city and its services quality performance using a SERVPERF survey database of more than 3,000 Brazilian SMEs. While Service Performance did not linearly correlate with the analyzed socioeconomic factors, a closer look at the data shows significant differences in Service Performance among groups of SMEs on highly developed and underdeveloped cities from the other cities. The paper discusses theoretical and managerial implications derived from these findings and proposes new research questions to generate data-backed knowledge to support SMEs service quality improvement. SERVPERF survey and socioeconomic data showed a weak linear relation of socioeconomic development towards service quality performance.
Keywords: SERVPERF; Service Quality; SMEs; Socioeconomic Factors; Brazil.
MARKETING AUTOMATION INNOVATION PRACTICES AND CUSTOMER RETENTION PERFORMANCE: EVIDENCE FROM THE NIGERIAN MANUFACTURING SMEs
by Michael Oluwaseun Olomu
Abstract: The emergence and dramatic changes in the today's digital consumer markets and industrial competitiveness have metamorphosed into a tremendous technological innovation boom with diverse innovative products and services been deployed as a competitive tool in the market place. The Nigerian manufacturing SMEs have in recent times placed much importance on innovative marketing practices to manage customer relationships, customer asset and customer equity.
The study examined the relationship between customer's retention performance and marketing automation innovation among the Nigerian manufacturing SMEs. Results from Least Squares multiple regressions show that sales force automation has more influence on the firm's customer retention performance.
The study recommends that the choice of marketing automation technologies, investment level and firm size are crucial in determining the customer retention performance of the industry and thereby suggest improved investment and management of SMEs' customer relationship for profitability, thus contributing largely to sustainability of industrial development and competitiveness.
Keywords: Innovation; Marketing Automation; Manufacturing SMEs; Industrial; Customer Retention; Customer Relationships.
An empirical study on financial performance evaluation of Chinese A and H cross-listed companies
by Yanli Zhu, Binrang Zhu, Jingyi Lang
Abstract: With the improvement of China's economic openness and the perfection of capital market, an increasing number of mainland Chinese companies have been listed on both the mainland stock exchanges (A-share) and the Hong Kong Stock Exchange (H-share). Facing intense international competition，it is urgent for the cross-listed companies to improve their financial performance and further achieve sustainable development. This paper evaluates the financial performance of Chinese A and H cross-listed companies based on a list of financial indicators in 2016 using the factor analytic approach. In this paper, we construct a new financial performance evaluation system based on the financial data of these companies. A comparison of different industries, ownerships and economic zones is also conducted. Our empirical findings include: First, we extract four aspects of ability, including profitability, operation ability, debt-paying ability and development ability, to comprehensively reflect the financial performance of Chinese A and H cross-listed companies. Second, we confirm that there are significant variations in the financial performance of Chinese A and H cross-listed companies among industries, ownerships and economic zones. Lastly, some suggestions are further provided in accordance with the evaluation results to improve the financial performance of Chinese A and H cross-listed companies.
Keywords: cross-listed companies; financial performance; factor analysis.
Interaction of the Social Media and Big Data in Reaching Marketing Success in the Era of the Fourth Industrial Revolution
by Goran Pranjić, Gabor Rekettye
Abstract: The contemporary economic environment is characterized by the economic megatrends that are (re)shaping economic practice in the 21st century. The most important megatrend is the digitalization, which triggers a whole new economic revolution, the so-called fourth industrial revolution. In the situation with the new data source, new technological means for harvesting and processing of data, digitalization and fourth economic revolution is very relevant not only for the operation but the marketing function as well. Social media represent an excellent source of data and channel of communication with the customer. Marketing spending on digital media platform soon will be No1., and it will overtake TV as the dominant marketing channel. Introducing the Big data analytical capabilities, adjustment of overall organization scheme and hiring competent personnel, the company will be in a position to save money for marketing spending, but in same time overall marketing performances will increase. Introducing Big data analytical capabilities and efficient use of available social media platform is a challenging task that lay ahead of senior executives. Support from the highest management instances is the critical preconditions in reaching desired outcomes in the possible synergy between Big data (BD) and Social media marketing (SMM).
Keywords: Big data analytics; social media marketing; decision makers; customer service improvements; analytics; business intelligence; market intelligence.
Investors Concern for Value Addition in Their Economic Decisions: Empirical investigation of the banking sector of Pakistan.
by Shahid Ali, Junrui Zhang, Aamir Azeem
Abstract: Shareholders are mostly concerned about value addition in every aspect of their investment. The empirical investigation evaluates value-addition-measures and accounting-measures; its supremacy in the banking sector investment by setting up the procedure of Heeren & D'Agostino (1987). This study uses data from seventeen commercial banks of Pakistan, and the findings reveal that accounting measures have a positive and significant relation, whereas value-added measures do not exhibit a strong relationship with share prices. Value addition proxies are not better while explaining variation in share prices in superiority settings. Shareholders focus on accounting measures that are less immune to window dressing instead of value addition measures. It reflects the irrational behavior of investors in their economic decisions in PSX. Bank Age is statistically significant, while Bank Holding has no significant relationship with share prices. The study proposes that investors should pay due attention to value addition concept in their economic decisions and invest in old banks, and the government should force banks to show value-added measures in their public disclosures.
Keywords: Value Addition Measures; Accounting Measures; Share Prices; Banks Holding; Bank Age; Economic decisions.
Organisational Growth through Operational Change
by Justin Bateh, Stella Sofianopoulou
Abstract: How do different dimensions of corporate strategies (management, human resources, sustainability, finances, organisational resilience, operations resources) affect organisational growth and profit enhancement? To address this question, we examine eight contemporary cases of recent change by multinational corporations: Amneal Pharmaceuticals, Avinger, CSX Corporation, GE Transportation, The Hershey Company, Laureate Education, Sears Holdings Corporation, and Toyota Motor Corporation. As these cases share a common goal of improving quality and promoting organisational growth, we use them to demonstrate the impact of corporate strategies on organisational growth. In doing so, we strategically highlight these cases to discuss practical and academic understandings of the multifaceted manners in which contemporary businesses manipulate and adjust operational systems to affect organisational growth and profit enhancement. We provide a discussion of these cases through 10 recommendations for business process improvement.
Keywords: operations strategies; business process improvements; sustainability; organisational growth; quality management; performance improvement; efficiency; business optimization.
Airports as platforms: towards a new business model
by Nuno M. Brilha, Helena Nobre
Abstract: Traditionally, airports were seen as air transport infrastructures for airline operations, passenger, and cargo processing. This traditional view has evolved beyond the aeronautical function, to offering non-aeronautical equipment and services. As air transport becomes a pillar for globalization, and airports intermodal platforms for transport and business, the airport city concept emerges from a strategic vision in which airport development is now integrated with urban planning and regional land use. Yet, the airport city concept does not address one of the main stakeholders the consumer especially when the consumer is at the epicentre of the current technological revolution. Therefore, this paper proposes the Airport 3.0 concept as the new business model for the airport as a two-sided platform. The concept is founded on three strategic business vectors that must be managed as concentric, complementary, and synergic for superior business performance. The paper addresses some managerial remarks, limitations, and future directions for study.
Keywords: airport operator; airport business model; Airport 3.0; two-sided platforms; entrepreneurial management; brand value co-creation; business performance.
Special Issue on: TBM 2019 Transformative Business Models – Disruptive Innovation in Finance, Logistics and Tourism
Knowledge of Islamic Banking and Bank Customer Satisfaction in Afghanistan: An Exploratory Analysis
by Lina Safi, Boris Abbey, Nadia Ben Sedrine Goucha, Omar Al Serhan, Kimberley Gleason
Abstract: Through the lens of the Theory of Reasoned Action, we focus on Afghanistan banks customers knowledge of Islamic banking and their attitudes towards Islamic banking products and factors that motivate their selection of Islamic banking versus conventional banking products in Kabul, Afghanistan. We examine the products used by bank customers as well as the motivations for using Islamic banking products as an alternative to the available conventional banking products. Of those who use Islamic banking products, most do so because of their religious beliefs, as well as greater perceived efficiency of Islamic banking services. Using a path regression, we find that higher levels of customer satisfaction of Kabul banks customers are achieved when the use of Islamic banking products occurs by customers with greater knowledge of Islamic banking products. These results are consistent with the TRA explanation of rational choice as applied to banking products operationalized through the obtainment of knowledge related to Islamic banking.
Keywords: Afghanistan; Kabul; Islamic banking; Theory of reasoned action; Customer satisfaction.
Do Corporate Characteristics Improve Sustainability Disclosure? Evidences from UAE
by Kennedy Prince Modugu
Abstract: The study examines the relationship between corporate attributes and ESG disclosure among selected companies in United Arab Emirates. The corporate attributes are company size, profitability, liquidity, industry sensitivity and leverage. The study adopts a cross-sectional approach to data collection. The population consists of 67 companies whose equities are publicly listed in Dubai Financial Market as at 31st December, 2017. We use the purposive sampling technique to select 32 companies. The descriptive statistics reveals a maximum disclosure score of 78 and a minimum score of 32 out of a total score of 100. The study employs the multiple regression analysis technique in data analysis. The results of the regression analysis show that only company size, industry sensitivity and liquidity are significant determinants of ESG disclosure in UAE. Our findings show that firms with larger asset base and good degree of liquidity disclose more ESG information. However, contrary to prior studies, firms in the service sector are more inclined to ESG disclosure than manufacturing firms. We recommend that the board of directors should make sustainability reporting a front burner in its corporate strategy. In addition, the regulatory authorities should legalize ESG disclosure among UAE firms. Finally, lenders of corporate funds should make certified ESG report as a major condition precedent to obtaining funds.
Keywords: corporate characteristics; sustainability; disclosure; determinants; ESG; UAE.
Can Crypto Currencies Overtake the Fiat Money?
by Avaneesh Jumde, Boo Yun Cho
Abstract: Since the awakening of Bitcoin, the terms Block chain, Crypto currencies have become the buzz words. Crypto currencies were thought to be very promising and boomed feverously in the hope that it might be capable of replacing the traditional currency. On this background, the paper has following objectives 1. To compare the fiat money with crypto currency. 2. To study the potential of crypto currency of being capable of replacing the Fiat moneyrn3. To propose the framework to evaluate the sustainability of the possible candidates to be the dominating currency The researchers have applied the Analytic Hierarchy Process (AHP) method to derive ratio scales from paired comparisons and rated the expected performances for two alternatives. 9 factors were selected with the hierarchical structure to measure the relative performance of proposed candidates. The results found that fiat money is still preferred to crypto currency due to many reasons.
Keywords: Crypto- currency; Fiat Money; Digital currency; Block chain; traditional money; medium of exchange; store of value; unit of accounting; functions of money; Analytic Hierarchy process (AHP).