International Journal of Business Performance Management (17 papers in press)
Trends in Small Business Performance Measurement Research: A Review of 25 Years Literature
by T.R. Anandan, Kriti Priya Gupta
Abstract: This study is possibly the first of its kind laying out a detailed connotation on performance measurement in small business organisations in management research. To make this study centred on small business, we selected the journals that are primarily meant for small businesses and have a high impact measured through their cite score. We picked up the primary research articles carrying performance in their title and measurement of overall performance. We then applied the content analysis technique to analyse the performance data. The analysis brought several crucial findings concerning the trends in publications, usage of different measures, choices of financial and non-financial measures, and aptness of the subjective and objective approach. Besides these, the study also laid out their implications and future directions.
Keywords: Organisational performance; Performance measures; Financial and Non-financial performance; Subjective and Objective performance; Small business.
Modelling the barriers of Industry 4.0 in India using Fuzzy TISM
by Vineet Jain, Puneeta Ajmera
Abstract: Industry 4.0 is an advanced unconventional phenomenon which, if carried out carefully and vigilantly, can turn the future of Indian manufacturing sector. The present work is aimed at highlighting the obstacles of Industry 4.0 to help Indian manufacturing, as the available literature indicates that the manufacturing sector still has reservations about the implementation of Industry 4.0. A Fuzzy TISM model is established to recognize the significant barriers impacting Industry 4.0. The results depict that top management support, employee resistance, insufficient maintenance support systems and need for specialized training and skills are the key barriers because of high driving power.
Keywords: Industry 4.0 barriers; TISM; Fuzzy TISM; MICMAC analysis; Fuzzy MICMAC.
Analysis of Performance and Risk during a Period of Political Instability: Do political connections matter?
by Samar Riahi, Nadia Loukil
Abstract: This paper examines how the political connection affects corporate risk (measured by the standard deviation of return on assets and by the standard deviation of the stock return) and performance (measured by the return on equity and the stock return) during periods of adverse macroeconomic conditions in Tunisia. This study uses a sample of 55 Tunisian listed firms during the post-revolution period (2011-2018) and a generalized least square (GLS) approach is applied to test our hypotheses. First, findings show that political connection increases risk-taking behavior and reduces corporate performance. Secondly, findings confirm that only the relation between the political connection and market risk varies negatively with political instability. Hence, Tunisians investors are reluctant to invest in political connected firms, which lead to market undervaluation.
Keywords: Political connection; performance; risk; political instability; mediation mechanisms; Tunisian listed firms.
The Impact of Entrepreneurial Competencies on Firms Performance
by Faah Allosuh, Shafig Al-Haddad
Abstract: The main objective of this study is to examine the impact of entrepreneurial competencies (Opportunity, Organizing, Strategic, Relationship, Commitment, and Learning) on firm performance, in addition, to examining the effect of firm capabilities as a moderating variable on the impact of entrepreneurial competencies on firm performance. The population of the study consists of Jordanian entrepreneurs who are the owners of entrepreneurial firms; the Convenience sampling technique was used to collect the responses of the participants which was composed of 91 respondents. Further, simple, multiple, and hierarchical regression were applied to analyze the collected data. The findings of this study revealed that opportunity competency, strategic competency and commitment competency have an impact on the performance of the firm. Additionally, firm capabilities were found to have a moderating effect on the impact of entrepreneurial competencies on firm performance.
Keywords: Entrepreneurial competencies; firm capabilities; firm performance; Jordan; entrepreneurship.
Evaluation of Key Performance Indicators of Indian Airlines using Fuzzy AHP method
by Chandra Prakash Garg, Vageesha Agarwal
Abstract: Due to intense competition, decreasing profit margin and demanding customers in air transport business, airlines have to measure their performance in order to remain competitive as well as sustainable in the airline market. The performance of an airline depends on many factors those are known as key performance indicators (KPIs). This study makes an attempt to evaluate the key performance indicators of airlines. Evaluation of KPIs is done using a combined approach based on fuzzy theory and Analytic Hierarchy Process (AHP) method. A case example of Indian airlines is conducted to illustrate the proposed model applicability. The results of the study indicates that the priority order of the KPIs is SSR > OMR > CR > FBR, which show that safety and security related indicators are found most important in this priority list and financial and business related parameters ranked last. This study makes an important contribution to various airline companies by solving significant problems in order to enhance their performances in the competitive market with proposed methodology. This proposed method considered fuzzy framework that can handle impreciseness and uncertainty. Sensitivity analysis is also performed to test the robustness of the proposed model.
Keywords: Key Performance Indicators (KPIs); Airlines; Fuzzy Theory; Analytic Hierarchy Process (AHP); India.
Modeling of critical success factors of AMT implementation using TISM and SEM
by Sapna Taneja, Vineet Jain
Abstract: With the globalization, competition has become fierce for the manufacturing companies. Product life has become short and the customer is appreciating more variety at lower price. To keep pace with the global market, a manufacturing firm has to become more flexible while producing products at lower prices. The manufacturing managers are looking for Advanced Manufacturing Technologies (AMT) to achieve these capabilities, however, mere adoption of technology does not ensure return on investment. The success of AMT adoption should be critically analysed in view of other critical factors. Through extensive review of literature, this study identified nineteen critical success factors (CSFs) accountable for the implementation of AMT. Data was collected with the help of structured questionnaire, and structural model involving nineteen factors was developed using Total Interpretive Structural Modelling (TISM) which is an extension of ISM as it interprets every relation between factors. Using SPSS 20 software, Exploratory Factor Analysis (EFA) was applied to extract the latent constructs for AMT implementation which are Human Resource and Management Practices, Financial Resources, Operational Characteristics and Organisational Characteristics. To validate these constructs and establish relation with the identified nineteen critical success factors, Confirmatory Factor Analysis (CFA) technique of Structural Equation Modelling (SEM) was applied through AMOS 20 software.
Keywords: Modeling; AMT Implementation; Manufacturing; Critical Factors; TISM; SEM.
Work Engagement and Organization Performance: The mediating role of Innovative Work Behaviour and moderating role of Perceived Distributive Fairness in Manufacturing Industry of Pakistan
by Abdul Waheed, Salma Waheed, Naveed Ahmad, Jawad Karamat
Abstract: Work engagement (WE) plays an important role in enhancing organizational performance (OP). Despite the considerable attention paid by developed economies, work engagement has been ignored in emerging economies, especially in Pakistan. This study used a survey questionnaire to investigate the relationship between work engagement and organizational performance. Moreover, the mediating role of innovative work behavior (IWB) and the moderating role of perceived distributive fairness (PDF) is also examined. Data collected from 535 manufacturing industry employees found that work engagement has a significant positive effect on IWB and organizational performance. However, this effect becomes stronger after introducing PDF as moderator. Moreover, the mediating effect of IWB is also proved. Considering the results, manufacturing companies should more emphasize on work engagement level of employees. Work engagement should be promoted to enhance organizational performance through PDF and by pushing employees towards innovative work behavior.
Keywords: Work engagement; Innovative work behavior; Perceived distributive fairness; Organizational performance; Manufacturing industry; Pakistan.
The relationship between the recruitment Strategy and the Competitive Advantage
by Ayman Al Armoti, Nidhi Oswal, Adnan Jawabri
Abstract: The study aimed to identify the relationship between the recruitment strategy and competitive advantage at four-star hotels in Al Ain City, United Arab Emirates. The study population consisted of all workers in four-star hotels in Al Ain, UAE, totalling 404 employees. 198 questionnaires were distributed using simple random sampling. 169 of them were returned, 141 of these were valid for statistical analysis. Results showed there is a correlation between the two variables of recruitment and the competitive advantage. Pearson correlation coefficients reached 0.17, by sig. (0.45) where it is statistically significant at 0.05. Moreover, the most significant recommendations were to increase recruiting people through online advertisements and internal advertisements within hotels in addition to advertisements in newspapers, satellite stations and universities. Furthermore, continuing the procedures for selecting employees based on the submission of job applications and passing interviews, tests, and medical examination that will help toward achieving the competitive advantage.
Keywords: recruitment strategy; selection; competitive advantage; hotels; performance; online advertisements; interviews; tests; medical examination; internal advertisements.
The Effect of Organizational Culture on Interorganizational Relationship and Firm Performance
by Cid Gonçalves Filho, Plinio Rafael Reis Monteiro, Flavia Braga Chinelato
Abstract: Interorganisational relationships have often been associated as antecedents of financial and market performance. However, little is known about its impacts on operational performance, relevant to firms competitiveness and sustainability. On the other hand, studies relating to firms culture within interorganisational relationships are scarce. In this sense, this study is unique that it explores the influence of cultural dimensions on operational performance within interorganisational relationships. Therefore, a survey collected 154 questionnaires of suppliers from a large service organisation. A regression analysis was accomplished, demonstrating a significant moderating effect of cultural dimensions (governance formalism and strategic focus) on relationship commitment, investment, and operational performance. This research helps managers to reveal cultural characteristics of suppliers that improve operational performance, suggesting the significance of additional studies focusing on culture, performance, and interorganisation relationships. Besides, it demonstrates the importance and impact of cultural dimensions on interorganisational relationships and firms operational performance.
Keywords: relationship marketing; performance; organisational culture; interorganisational networks; supply chain management.
Impact of Corporate Social Performance on Shareholder value
by Ayman Al Armoti, Mariam Alsayari, Meera Fadi Alsalman
Abstract: This research includes an investigation of the influence of corporate social performance (CSP) on shareholder value creation in the context of At Majid Al Futtaim, a UAE-based company that sells homeware and technological goods, including smart phones. The organisation recognises that todays customer values experience, value, and memorable moments with those who matter most to them. It is also wary of it is social responsibilities. The CSP has a highly significant relationship with the empirical study for the components driving CSP, showing that the firm is consciously contributing to community benefits, enhanced employee relationships, and ecologically responsible operations. Only the firms growth and size were found to have a substantial positive relationship with CSP, demonstrating that hypotheses H3 and H4 are accurate. All alternative hypotheses H1, H2, H5, and H6 are rejected by Majid Al Futtaim.
Keywords: corporate social; shareholder value; social responsibilities; organisation performance; customer value; corporate governance; community relationships; corporate performance.
Factors affecting the organisational commitment of employees at social service organisations
by Danh Nam Nguyen, Thi Ngoc Lan Uong
Abstract: The study aims to analyse the factors affecting the organisational commitment of employees at social service organisations in Hanoi. The empirical data was collected through 237 questionnaires surveyed by employees working at five social service organisations in the Hanoi capital. By applying the exploratory factor analysis, confirmatory factor analysis, structural equation modelling, the study has determined that psychological capital has a positive effect on work engagement, and job satisfaction of employees. The results show a correlation between psychological capital, work engagement, job satisfaction, and organisational commitment. The study suggested significant managerial implications for social service organisations to increase organisational commitment of employees in the coming time.
Keywords: psychological capital; work engagement; job satisfaction; organisational commitment; Vietnam.
Exploring Duration Gap of Islamic banks during COVID19 Crisis: An Inter-Regional Online Focus Group Study
by Syed Alamdar Ali Shah, Bayu Arie Fianto, Sri Herianingrum, Raditya Sukmana
Abstract: This study explores duration gap risk management of Islamic banks during COVID-19 crisis using online focus group studies. There are 12 participants from Indonesia, Malaysia, Pakistan and UAE. Findings suggest that COVID-19 has increased the duration gaps of Islamic banks. The causes include, lack of business opportunities, relaxations in terms of policy rates, restructuring offered by central banks and attitudes of the customers of Islamic banks to avail relaxations offered, whether they need it or not. Finally, the crisis has exhibited that customers have managed their spending according to conventional theories of demands of money and Maslows hierarchy of needs.
Keywords: COVID-19 crisis; Islamic banks; duration gap risk management; online focus groups; economic growth.
Linking lean organisational culture and balanced scorecard: an improved way of measuring lean performance
by Shathees Baskaran, Kharthigesan Ganesan, Shima Devagaran
Abstract: The evolving business environment triggers the need for continuous improvement through lean management in the organisation. Many argue that measuring lean performance through financial indicators alone is insufficient and no longer valid. Hence, the surge of the balanced scorecard as an improved performance measure cannot be neglected. Therefore, it is the aim of this study to examine the relationship between lean organisational culture and balanced scorecard performance. Lean organisational culture dimensions such as situational awareness, employee engagement, managerial consistency, and accountability were used to investigate its relationship with balanced scorecard performance dimensions. 378 employees from lean manufacturing organisations in Malaysia participated in this study. The research result shows that lean organisational culture has a significant relationship with balanced scorecard performance. The results were discussed in the realm of integrating lean organisational culture with a balanced scorecard approach. The research envisages introducing a new approach to evaluate the performance of a lean organisation.
Keywords: lean culture; balanced scorecard; situational awareness; employee engagement; managerial consistency; accountability.
Conceptualising performative Instagram influencer and user relationships – through advertising and sponsored brand content
by Jonathan A.J. Wilson, Laura Arroyo
Abstract: With the rise of social media influencers as vehicles for marketing and with promotional activities maturing, a standardisation process has occurred concerning the metrics used to calculate performance. Following reports of a U-shaped curve between engagement and number of followers, our study focuses on micro-influencers, through a series of qualitative interviews with heavy Instagram users – investigating their consumer perceptions. We find five emerging themes within the Instagram user/influencer relationship, which also highlight certain acknowledged contradictions linked to portraying an unrealistic lifestyle. Finally, as a means of conceptualising this phenomenon, we present a new influencer dual process mediation model, as an adaptation and harmonisation of the elaboration likelihood model and the dual mediation hypothesis model of advertising processing.
Keywords: advertising; branding; social media; performance management; consumer behaviour.
Job delight: development and validation of a new construct
by Mahfuz Judeh, Suzan Abed, Nazha Gali
Abstract: The purpose of this study is to address the lack of an appropriate scale to measure job delight by proposing an initial scale to measure job delight using input from scholars and experts in the field pertaining to job delight. This study employed mixed methods and a two-stage design, in which in the first phase the Delphi method was employed, and in-depth interviews were conducted with researchers and faculty members at universities in the MENA region with expertise on job delight. The first stage generated the survey questionnaires to measure the construct of job delight. In stage two, we assessed the face validity of the derived items from the Delphi study by conducting the survey with 407 faculty members at universities in the MENA region. We offer empirical insights into how job delight can be measured by an 18-item scale with four dimensions.
Keywords: job delight; satisfaction; new construct; MENA region; questionnaire; empirical study; four dimensions; universities; development; performance.
Environmental social governance information and disclosure from a company perspective: a structured literature review
by Karoline Bax, Sandra Paterlini
Abstract: The availability of non-financial information including environmental, social, and governance (ESG) data has skyrocketed in the last two decades. The information on ESG scores is valuable for understanding whether companies are explicitly considering ESG targets, developing plans to incorporate these targets into their businesses, and assessing to what extent the companies successfully reach these targets. In fact, the higher the ESG score, the better the company's performance should be with respect to ESG targets. The explicit incorporation of ESG targets could lead towards transitioning to sustainable and socially responsible businesses capable of dealing with grand societal challenges. While ESG has been mostly explored from an investor's point of view, this structured review takes a company's perspective. By analysing the citation network using CitNetExplorer, two important managerial trends are identified: 1) the characteristics of CEOs and their boards affect ESG disclosure and performance; 2) ESG disclosure influences access to debt financing, cost of capital, and financial performance.
Keywords: environmental; social; and governance; ESG scores; ESG information; ESG disclosure; CEO and board characteristics; financing decisions.
An empirical research study to understand the relationship between buyers and digital store
by Rohit Kenge, Zafar Khan
Abstract: Natural disaster, political imbalances, and pandemic disease are resulting in the dynamic product demand over time. We studied the current sales order booking process in the literature survey and proposed a hypothesis model to check the digital store suitability for lower delivery lead times of the electric original equipment manufacturers by collecting the primary data with the set of the 26 questionnaires to the 500 buyers of the electric products on convenience sampling. We received 402 valid responses. We performed the confirmatory and bi-factor analysis to check our proposed hypothesis model and concluded that that the buyers are facing different price issues for similar products at the different store platforms which affects the buyer's loyalty. The buyer's loyalty also depends upon the customer care support on their issues while purchasing the product. Digital buyer's satisfaction and loyalty (DBSL) and digital buying profile-based socio-economic condition (DSEP) are deeply interrelated.
Keywords: sales management; customer loyalty; customer satisfaction; digital store.