This document examines whether trust or business policy is a better determinant of business success. It discusses literature on factors that influence business success, noting that trust and business policy have not been fully considered. The paper defines business trust and business policy. It argues that while trust is important, it is difficult to measure and carries risks of being abused. Business policy provides clear guidelines to make decisions and reduce risks, helping to ensure business success and continuity. Overall, the document suggests that adhering to business policy may be a more effective determinant of business success than relying on trust alone.
In March 2019, the Korea of Minister of Strategy and Finance announced a strategy to spread the
second venture boom in cooperation with relevant ministries. You can start high-tech innovation start-ups by
strengthening your business
The document discusses entrepreneurship and human resources for small industrial businesses. It identifies the decisive role of the entrepreneur in a business's success. Different types of entrepreneurs are described, and their qualifications and abilities are assessed based on values, attitudes, skills, and staff relations. The importance of assessing human resource needs is emphasized, as qualified staff are small businesses' main resource unlike large businesses. Sociocultural differences in entrepreneur characteristics between Europe and the US are also compared.
This document summarizes a research article that examines factors affecting going concern audit opinions. The study analyzed 141 companies listed on the Indonesia Stock Exchange from 2012-2014. The results of the logistic regression analysis found that audit quality, company size, and managerial ownership affected the likelihood of a going concern audit opinion. However, the previous year's audit opinion, institutional ownership, growth, debt default, opinion shopping, bankruptcy prediction, audit committee activity, and audit committee membership did not affect the likelihood of a going concern audit opinion. The purpose of the study was to determine what factors influence the issuance of a going concern audit opinion for manufacturing companies listed on the Indonesia Stock Exchange.
Performance Persistence by Harvard Business Schoolchaganomics
Performance Persistence Harvard Business School on why serial entrepreneurs are often more successful in their pursuits. for an article at chaganomics.com
Tesco is a large British multinational grocery and general merchandise retailer founded in 1919. It has over 6,800 stores across several countries. Porter's Five Forces model was applied to analyze Tesco's competitive environment. Rivalry is high in the grocery industry. Tesco differentiates itself through various store formats and supply chain integration. Supplier bargaining power is mitigated through IT systems and own brand products. Significant capital requirements and brand recognition make entry difficult for new competitors. Loyalty programs and wide product ranges help counter customer bargaining power. Threat of substitutes is addressed by product differentiation and availability.
This document outlines several qualitative research studies that utilized interviews to study economic topics. It discusses Alan Blinder's study from 1990-1992 that expanded from 20 planned interviews to 200 interviews of companies on topics like corporate governance and technology. It also summarizes Thomas Bewley's study from 1995-1998 that involved 336 interviews with business and union leaders to understand wage rigidity without revealing confidential information. Finally, it provides details on studies by Alan Gregory and other researchers that interviewed over 100 manufacturing firms in multiple countries to understand decision making processes and how heuristics are used rather than careful calculation.
This document summarizes a research study that analyzed the impact of employee engagement factors on employee performance at an Indonesian palm oil research center (PPKS). The study found that leadership, achievement, and equity factors simultaneously and partially influenced employee performance, but camaraderie did not have a significant partial effect. The document provides background on PPKS and issues with employee performance. It reviews literature on employee engagement factors (leadership, achievement, camaraderie, equity) and performance. The study used a survey to collect data from 78 PPKS employees and analyzed it using multiple linear regression to test hypotheses about the influence of engagement factors on performance.
This document summarizes the findings of a survey of 279 New Zealand business owners regarding the challenges they face. Key findings include:
1) The top challenges reported were financial issues like lack of capital and cash flow, as well as a lack of time to both run the business and engage in strategic planning.
2) Most business owners wanted to grow their sales but not necessarily their staff, and defined business success primarily as having a good lifestyle and fulfilling work rather than maximum profits or growth.
3) Tall Poppy Syndrome, a cultural phenomenon where successful individuals are criticized, was reported to negatively impact about 40% of business owners emotionally, financially, and in their reputation.
4) Over a third of
In March 2019, the Korea of Minister of Strategy and Finance announced a strategy to spread the
second venture boom in cooperation with relevant ministries. You can start high-tech innovation start-ups by
strengthening your business
The document discusses entrepreneurship and human resources for small industrial businesses. It identifies the decisive role of the entrepreneur in a business's success. Different types of entrepreneurs are described, and their qualifications and abilities are assessed based on values, attitudes, skills, and staff relations. The importance of assessing human resource needs is emphasized, as qualified staff are small businesses' main resource unlike large businesses. Sociocultural differences in entrepreneur characteristics between Europe and the US are also compared.
This document summarizes a research article that examines factors affecting going concern audit opinions. The study analyzed 141 companies listed on the Indonesia Stock Exchange from 2012-2014. The results of the logistic regression analysis found that audit quality, company size, and managerial ownership affected the likelihood of a going concern audit opinion. However, the previous year's audit opinion, institutional ownership, growth, debt default, opinion shopping, bankruptcy prediction, audit committee activity, and audit committee membership did not affect the likelihood of a going concern audit opinion. The purpose of the study was to determine what factors influence the issuance of a going concern audit opinion for manufacturing companies listed on the Indonesia Stock Exchange.
Performance Persistence by Harvard Business Schoolchaganomics
Performance Persistence Harvard Business School on why serial entrepreneurs are often more successful in their pursuits. for an article at chaganomics.com
Tesco is a large British multinational grocery and general merchandise retailer founded in 1919. It has over 6,800 stores across several countries. Porter's Five Forces model was applied to analyze Tesco's competitive environment. Rivalry is high in the grocery industry. Tesco differentiates itself through various store formats and supply chain integration. Supplier bargaining power is mitigated through IT systems and own brand products. Significant capital requirements and brand recognition make entry difficult for new competitors. Loyalty programs and wide product ranges help counter customer bargaining power. Threat of substitutes is addressed by product differentiation and availability.
This document outlines several qualitative research studies that utilized interviews to study economic topics. It discusses Alan Blinder's study from 1990-1992 that expanded from 20 planned interviews to 200 interviews of companies on topics like corporate governance and technology. It also summarizes Thomas Bewley's study from 1995-1998 that involved 336 interviews with business and union leaders to understand wage rigidity without revealing confidential information. Finally, it provides details on studies by Alan Gregory and other researchers that interviewed over 100 manufacturing firms in multiple countries to understand decision making processes and how heuristics are used rather than careful calculation.
This document summarizes a research study that analyzed the impact of employee engagement factors on employee performance at an Indonesian palm oil research center (PPKS). The study found that leadership, achievement, and equity factors simultaneously and partially influenced employee performance, but camaraderie did not have a significant partial effect. The document provides background on PPKS and issues with employee performance. It reviews literature on employee engagement factors (leadership, achievement, camaraderie, equity) and performance. The study used a survey to collect data from 78 PPKS employees and analyzed it using multiple linear regression to test hypotheses about the influence of engagement factors on performance.
This document summarizes the findings of a survey of 279 New Zealand business owners regarding the challenges they face. Key findings include:
1) The top challenges reported were financial issues like lack of capital and cash flow, as well as a lack of time to both run the business and engage in strategic planning.
2) Most business owners wanted to grow their sales but not necessarily their staff, and defined business success primarily as having a good lifestyle and fulfilling work rather than maximum profits or growth.
3) Tall Poppy Syndrome, a cultural phenomenon where successful individuals are criticized, was reported to negatively impact about 40% of business owners emotionally, financially, and in their reputation.
4) Over a third of
roadmap-successful-succession-plan - 2014 Fall SRR JournalAlex W. Howard
This document provides an overview of key steps for business owners to develop a successful succession plan. It recommends starting the planning process 5 years before anticipated exit and assembling an advisory team that includes a family business advisor, CPA, investment banker, wealth advisor, attorney, and insurance professional. The succession planning process involves 4 steps: 1) assembling an advisory team, 2) determining the current value of the business, 3) establishing the desired future value, and 4) developing strategies to increase the business value over time to meet retirement goals. Understanding value drivers like profit margins, growth potential, and proprietary assets is important for setting accurate business valuations and exit prices.
The document summarizes research on how managerial overconfidence can influence corporate investment decisions. Specifically, it discusses two studies conducted by the authors.
The first study examines whether the investment of overconfident CEOs is more sensitive to the availability of internal cash flow compared to less overconfident CEOs. The authors predict this will be the case and that the effect will be more pronounced for equity-dependent firms. The study uses regression analysis of financial data from Compustat and CRSP databases to test this prediction.
The second study aims to address criticisms of endogeneity in the first study by examining how overconfident CEOs' investment responds to an exogenous shock that impacts debt financing availability. The prediction is
An analysis of the determinants of business growth in ghanaAlexander Decker
This document summarizes a study that analyzed the determinants of business growth in Wa Municipal, Ghana. The study used questionnaires and interviews of 100 business owners to examine the relationship between business size and factors like gender, record keeping, age of business owner, education level, and age of the business. The results found that business age and record keeping had statistically significant impacts on business size, with older businesses and better record keeping correlated with larger size. However, gender, education level, and age of owner did not significantly influence business size. The study aims to help inform policies to encourage business startups and support their long-term survival.
Succession Plan Presentation - 11.18.14 Society of Financial Service Professi...Alex W. Howard
This document discusses executing an effective succession plan for a business. It begins by emphasizing the importance of having a vision and plan for succession. The document then outlines various facets of planning that must be considered, including succession, estate, retirement, and exit planning. It stresses that having a succession plan avoids inertia and provides a roadmap for a successful exit. The document provides an overview of options for succession, such as selling the business to outsiders, employees, or family members. It emphasizes the importance of preparing the business to maximize its value and control the transition process.
This document provides a summary of the 2011 OPS Employee Survey results. Key findings include:
- The OPS Employee Engagement Index score declined from 2009 but remains higher than 2007.
- Four new Corporate Indices were introduced to provide more actionable insight: Productive Capacity, Workplace Culture, Talent Capacity, and Leadership.
- Recognition and leadership practices were identified as priority themes for improvement based on the Corporate Indices scores and analysis.
- The proportion of highly engaged employees declined significantly since 2009, with more employees now in the medium and low engagement categories.
Hygiene factors the foundations for heightening the marketing executives moti...Alexander Decker
This document discusses Frederick Herzberg's two-factor theory of motivation, which identifies hygiene factors and motivators. It examines how hygiene factors can serve as a foundation for heightening motivation among marketing executives in the Nigerian banking industry. The study analyzed responses from 180 marketing executives across eight major banks regarding hygiene factors like salary/benefits, working conditions, and company policy. Results showed that marketing executives strongly agree these hygiene factors can reduce dissatisfaction and potentially increase motivation if adequately addressed. However, only intrinsic motivators can truly motivate according to Herzberg's theory. The document thus concludes that while hygiene factors are important, managers must also appeal to motivators to achieve high motivation and performance among marketing executives
The document discusses the impact of additional regulations on corporate collapses. It analyzes the advantages and disadvantages of introducing new regulations in response to corporate scandals. While additional regulations may increase accountability and prevent misconduct initially, they also motivate people to find ways around the laws, potentially resulting in more corporate failures. The best solution is a balanced approach combining necessary rules and guiding principles, focusing on ethics over just regulations. Introducing regulations without considering context or consequences is not an effective response.
This document summarizes an investigation into the relationship between employee retention policies and employee loyalty within the pharmaceutical sector, using GlaxoSmithKline as a case study. It provides background on the importance of employee retention and factors that influence retention such as career growth, compensation, work environment and satisfaction. The research aims to explore GSK's retention policies and their impact on employee loyalty, and identify factors affecting loyalty. It will propose recommendations to improve retention and loyalty within the organization.
- The document analyzes the relationship between capital structure and firm value for metal, metal products and mining sector firms in India over a nine-year period.
- It finds a negative relationship between return on assets and financial leverage, and a positive relationship between debt-to-assets ratio and financial leverage for these firms.
- Operating profit margin is positively related to financial leverage, while financial leverage and firm size are negatively related. Overall, the study shows capital structure influences firm value in the metal, metal products and mining sectors in India.
This document summarizes a research study that examined the influence of product quality, brand image, and brand trust on customer satisfaction and loyalty for Samsung smartphones in Denpasar, Bali, Indonesia. The study surveyed 185 Samsung smartphone users and analyzed the data using structural equation modeling. The results showed that product quality positively and significantly influences brand image, brand trust, and customer satisfaction. Brand image and brand trust also positively and significantly influence customer satisfaction. Additionally, customer satisfaction positively and significantly influences customer loyalty. Thus, the study concludes that improving product quality is key to increasing customer satisfaction and loyalty for Samsung smartphones.
The document provides an introduction and overview of business research concepts, resources, and processes for staff training at the LI KA SHING library. It outlines the objectives of business research, roles of research professionals, and common question types. It also details various information resources for business research, including journals, books, reports, databases, directories, and news/media sources. Key points of emphasis are evaluating business questions and matching them to appropriate information resources and sources.
This document discusses a study analyzing the role of competitive advantage in relationships between talent management, knowledge management, and organizational performance at Sharia banks in Indonesia. The study used a quantitative survey of 105 bank employees. The results showed that talent management and knowledge management significantly influence competitive advantage and organizational performance, and competitive advantage also influences organizational performance. The document provides background on talent management, knowledge management, competitive advantage, and organizational performance based on prior literature.
Improvement of Business Performance through Entrepreneurial Orientationijtsrd
Entrepreneurial orientation is important factors needed by small and medium enterprises SMEs to face environmental challenges in a dynamic and competitive business world achieve business performance. This study aims to examine the effect of entrepreneurial orientation on business performance. The research sample of 117 culinary SMEs. Data was collected through a survey by distributing questionnaires and documentation. Data analysis techniques using structural equation modeling with the Partial Least Square PLS approach. The results showed that of entrepreneurial orientation had a significant positive effect on business. Asmawiyah | Afiah Mukhtar | Andi Rifqah Purnama Alam "Improvement of Business Performance through Entrepreneurial Orientation" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-4 | Issue-6 , October 2020, URL: https://www.ijtsrd.com/papers/ijtsrd35740.pdf Paper Url: https://www.ijtsrd.com/management/randd-management/35740/improvement-of-business-performance-through-entrepreneurial-orientation/asmawiyah
Determinants of firms’ profitability in pakistanAlexander Decker
This document summarizes a research study that analyzed the determinants of profitability of Pakistani firms. The study examined the relationship between capital structure, financial leverage, firm size and corporate profitability. Data was collected from 50 Pakistani companies over 7 years. Regression analysis found a positive correlation between financial leverage and profitability, and between firm size and profitability. It found a negative correlation between capital structure and profitability. The study concluded additional variables could improve the model for determining corporate profitability.
This document summarizes a study that investigates the influence of working capital management on the performance of small and medium enterprises (SMEs) in Pakistan from 2006 to 2012. The study uses data from various sources on SMEs to examine the relationship between return on assets (used as a proxy for profitability) and variables like accounts receivable, inventory, cash conversion cycle, and accounts payable. The results suggest that days of accounts payable has a positive association with profitability, while average collection period, inventory turnover, and cash conversion cycle have an inverse relationship with performance. Firm size and sales growth also positively influence profitability, while debt ratio negatively impacts profitability.
This document is a thesis that examines how specific management decisions relate to a startup's entrepreneurial orientation (EO) and economic growth. It conducted surveys of 36 startups and collected financial data. Statistical analysis found that decisions around delegation were positively related to strategic orientation and celebration of achievements was positively related to reward philosophy. Viewing decisions collectively, the model was able to predict 37% of balance growth, with factors like initial structure, current structure, external investors, budgets, and education relating to growth. The thesis aims to identify which management decisions influence a startup's EO and performance.
A framework for the analysis of interview data from multiple field research s...Afzaal Ali
Anne Lillis is a Professor of Management Accounting and Head Department of Accounting and Finance, University of Melbourne, Melbourne, Victoria, Australia.
Demographic Factors Impacting Employee Turnover In The Private Banking Secto...inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
The survey summarizes opinions from CEOs in Serbia on their experiences during the economic crisis. It found that while industries like government institutions were less impacted, sectors like marketing suffered the most. CEOs indicated that experience with change management and flexibility were the most important skills during this turbulent time. Most CEOs believe they took appropriate actions to address the crisis, such as reducing costs, though some felt external factors limited stronger responses. Optimism remains low, as most expect further issues, but CEOs view the situation as a challenge. The survey provides insight into the perspectives of leadership in Serbia amidst economic hardship.
Measuring entrepreneurial orientation & business performance relationshipIAEME Publication
This document summarizes a study on the relationship between entrepreneurial orientation and business performance among Indian seafood exporting firms. The study found that entrepreneurial orientation, measured by factors like innovativeness, risk-taking, and proactiveness, was positively correlated with various measures of business performance. Firms with higher entrepreneurial orientation tended to have better overall performance, return on investment, and sales compared to competitors. The study concludes that Indian seafood firms should focus on developing their entrepreneurial orientation in order to improve competitive capabilities and deal with the risks inherent in the industry. Some limitations of the study are noted, and further research is suggested.
The document summarizes a study on the impact of feasibility analysis on business growth in Computer Village, Lagos, Nigeria. The study found that conducting feasibility analysis was significantly related to business growth for businesses with more years of experience. Specifically:
1) A survey of 300 business owners found that 95% felt feasibility analysis contributed to business growth, with more experienced owners conducting better analyses.
2) Statistical analysis showed a significant relationship between years of experience and business growth, but not for gender or marital status.
3) The study concludes feasibility analysis is important for identifying strengths, weaknesses, opportunities, and threats, and recommends all businesses regularly conduct analyses to remain competitive.
roadmap-successful-succession-plan - 2014 Fall SRR JournalAlex W. Howard
This document provides an overview of key steps for business owners to develop a successful succession plan. It recommends starting the planning process 5 years before anticipated exit and assembling an advisory team that includes a family business advisor, CPA, investment banker, wealth advisor, attorney, and insurance professional. The succession planning process involves 4 steps: 1) assembling an advisory team, 2) determining the current value of the business, 3) establishing the desired future value, and 4) developing strategies to increase the business value over time to meet retirement goals. Understanding value drivers like profit margins, growth potential, and proprietary assets is important for setting accurate business valuations and exit prices.
The document summarizes research on how managerial overconfidence can influence corporate investment decisions. Specifically, it discusses two studies conducted by the authors.
The first study examines whether the investment of overconfident CEOs is more sensitive to the availability of internal cash flow compared to less overconfident CEOs. The authors predict this will be the case and that the effect will be more pronounced for equity-dependent firms. The study uses regression analysis of financial data from Compustat and CRSP databases to test this prediction.
The second study aims to address criticisms of endogeneity in the first study by examining how overconfident CEOs' investment responds to an exogenous shock that impacts debt financing availability. The prediction is
An analysis of the determinants of business growth in ghanaAlexander Decker
This document summarizes a study that analyzed the determinants of business growth in Wa Municipal, Ghana. The study used questionnaires and interviews of 100 business owners to examine the relationship between business size and factors like gender, record keeping, age of business owner, education level, and age of the business. The results found that business age and record keeping had statistically significant impacts on business size, with older businesses and better record keeping correlated with larger size. However, gender, education level, and age of owner did not significantly influence business size. The study aims to help inform policies to encourage business startups and support their long-term survival.
Succession Plan Presentation - 11.18.14 Society of Financial Service Professi...Alex W. Howard
This document discusses executing an effective succession plan for a business. It begins by emphasizing the importance of having a vision and plan for succession. The document then outlines various facets of planning that must be considered, including succession, estate, retirement, and exit planning. It stresses that having a succession plan avoids inertia and provides a roadmap for a successful exit. The document provides an overview of options for succession, such as selling the business to outsiders, employees, or family members. It emphasizes the importance of preparing the business to maximize its value and control the transition process.
This document provides a summary of the 2011 OPS Employee Survey results. Key findings include:
- The OPS Employee Engagement Index score declined from 2009 but remains higher than 2007.
- Four new Corporate Indices were introduced to provide more actionable insight: Productive Capacity, Workplace Culture, Talent Capacity, and Leadership.
- Recognition and leadership practices were identified as priority themes for improvement based on the Corporate Indices scores and analysis.
- The proportion of highly engaged employees declined significantly since 2009, with more employees now in the medium and low engagement categories.
Hygiene factors the foundations for heightening the marketing executives moti...Alexander Decker
This document discusses Frederick Herzberg's two-factor theory of motivation, which identifies hygiene factors and motivators. It examines how hygiene factors can serve as a foundation for heightening motivation among marketing executives in the Nigerian banking industry. The study analyzed responses from 180 marketing executives across eight major banks regarding hygiene factors like salary/benefits, working conditions, and company policy. Results showed that marketing executives strongly agree these hygiene factors can reduce dissatisfaction and potentially increase motivation if adequately addressed. However, only intrinsic motivators can truly motivate according to Herzberg's theory. The document thus concludes that while hygiene factors are important, managers must also appeal to motivators to achieve high motivation and performance among marketing executives
The document discusses the impact of additional regulations on corporate collapses. It analyzes the advantages and disadvantages of introducing new regulations in response to corporate scandals. While additional regulations may increase accountability and prevent misconduct initially, they also motivate people to find ways around the laws, potentially resulting in more corporate failures. The best solution is a balanced approach combining necessary rules and guiding principles, focusing on ethics over just regulations. Introducing regulations without considering context or consequences is not an effective response.
This document summarizes an investigation into the relationship between employee retention policies and employee loyalty within the pharmaceutical sector, using GlaxoSmithKline as a case study. It provides background on the importance of employee retention and factors that influence retention such as career growth, compensation, work environment and satisfaction. The research aims to explore GSK's retention policies and their impact on employee loyalty, and identify factors affecting loyalty. It will propose recommendations to improve retention and loyalty within the organization.
- The document analyzes the relationship between capital structure and firm value for metal, metal products and mining sector firms in India over a nine-year period.
- It finds a negative relationship between return on assets and financial leverage, and a positive relationship between debt-to-assets ratio and financial leverage for these firms.
- Operating profit margin is positively related to financial leverage, while financial leverage and firm size are negatively related. Overall, the study shows capital structure influences firm value in the metal, metal products and mining sectors in India.
This document summarizes a research study that examined the influence of product quality, brand image, and brand trust on customer satisfaction and loyalty for Samsung smartphones in Denpasar, Bali, Indonesia. The study surveyed 185 Samsung smartphone users and analyzed the data using structural equation modeling. The results showed that product quality positively and significantly influences brand image, brand trust, and customer satisfaction. Brand image and brand trust also positively and significantly influence customer satisfaction. Additionally, customer satisfaction positively and significantly influences customer loyalty. Thus, the study concludes that improving product quality is key to increasing customer satisfaction and loyalty for Samsung smartphones.
The document provides an introduction and overview of business research concepts, resources, and processes for staff training at the LI KA SHING library. It outlines the objectives of business research, roles of research professionals, and common question types. It also details various information resources for business research, including journals, books, reports, databases, directories, and news/media sources. Key points of emphasis are evaluating business questions and matching them to appropriate information resources and sources.
This document discusses a study analyzing the role of competitive advantage in relationships between talent management, knowledge management, and organizational performance at Sharia banks in Indonesia. The study used a quantitative survey of 105 bank employees. The results showed that talent management and knowledge management significantly influence competitive advantage and organizational performance, and competitive advantage also influences organizational performance. The document provides background on talent management, knowledge management, competitive advantage, and organizational performance based on prior literature.
Improvement of Business Performance through Entrepreneurial Orientationijtsrd
Entrepreneurial orientation is important factors needed by small and medium enterprises SMEs to face environmental challenges in a dynamic and competitive business world achieve business performance. This study aims to examine the effect of entrepreneurial orientation on business performance. The research sample of 117 culinary SMEs. Data was collected through a survey by distributing questionnaires and documentation. Data analysis techniques using structural equation modeling with the Partial Least Square PLS approach. The results showed that of entrepreneurial orientation had a significant positive effect on business. Asmawiyah | Afiah Mukhtar | Andi Rifqah Purnama Alam "Improvement of Business Performance through Entrepreneurial Orientation" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-4 | Issue-6 , October 2020, URL: https://www.ijtsrd.com/papers/ijtsrd35740.pdf Paper Url: https://www.ijtsrd.com/management/randd-management/35740/improvement-of-business-performance-through-entrepreneurial-orientation/asmawiyah
Determinants of firms’ profitability in pakistanAlexander Decker
This document summarizes a research study that analyzed the determinants of profitability of Pakistani firms. The study examined the relationship between capital structure, financial leverage, firm size and corporate profitability. Data was collected from 50 Pakistani companies over 7 years. Regression analysis found a positive correlation between financial leverage and profitability, and between firm size and profitability. It found a negative correlation between capital structure and profitability. The study concluded additional variables could improve the model for determining corporate profitability.
This document summarizes a study that investigates the influence of working capital management on the performance of small and medium enterprises (SMEs) in Pakistan from 2006 to 2012. The study uses data from various sources on SMEs to examine the relationship between return on assets (used as a proxy for profitability) and variables like accounts receivable, inventory, cash conversion cycle, and accounts payable. The results suggest that days of accounts payable has a positive association with profitability, while average collection period, inventory turnover, and cash conversion cycle have an inverse relationship with performance. Firm size and sales growth also positively influence profitability, while debt ratio negatively impacts profitability.
This document is a thesis that examines how specific management decisions relate to a startup's entrepreneurial orientation (EO) and economic growth. It conducted surveys of 36 startups and collected financial data. Statistical analysis found that decisions around delegation were positively related to strategic orientation and celebration of achievements was positively related to reward philosophy. Viewing decisions collectively, the model was able to predict 37% of balance growth, with factors like initial structure, current structure, external investors, budgets, and education relating to growth. The thesis aims to identify which management decisions influence a startup's EO and performance.
A framework for the analysis of interview data from multiple field research s...Afzaal Ali
Anne Lillis is a Professor of Management Accounting and Head Department of Accounting and Finance, University of Melbourne, Melbourne, Victoria, Australia.
Demographic Factors Impacting Employee Turnover In The Private Banking Secto...inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
The survey summarizes opinions from CEOs in Serbia on their experiences during the economic crisis. It found that while industries like government institutions were less impacted, sectors like marketing suffered the most. CEOs indicated that experience with change management and flexibility were the most important skills during this turbulent time. Most CEOs believe they took appropriate actions to address the crisis, such as reducing costs, though some felt external factors limited stronger responses. Optimism remains low, as most expect further issues, but CEOs view the situation as a challenge. The survey provides insight into the perspectives of leadership in Serbia amidst economic hardship.
Measuring entrepreneurial orientation & business performance relationshipIAEME Publication
This document summarizes a study on the relationship between entrepreneurial orientation and business performance among Indian seafood exporting firms. The study found that entrepreneurial orientation, measured by factors like innovativeness, risk-taking, and proactiveness, was positively correlated with various measures of business performance. Firms with higher entrepreneurial orientation tended to have better overall performance, return on investment, and sales compared to competitors. The study concludes that Indian seafood firms should focus on developing their entrepreneurial orientation in order to improve competitive capabilities and deal with the risks inherent in the industry. Some limitations of the study are noted, and further research is suggested.
The document summarizes a study on the impact of feasibility analysis on business growth in Computer Village, Lagos, Nigeria. The study found that conducting feasibility analysis was significantly related to business growth for businesses with more years of experience. Specifically:
1) A survey of 300 business owners found that 95% felt feasibility analysis contributed to business growth, with more experienced owners conducting better analyses.
2) Statistical analysis showed a significant relationship between years of experience and business growth, but not for gender or marital status.
3) The study concludes feasibility analysis is important for identifying strengths, weaknesses, opportunities, and threats, and recommends all businesses regularly conduct analyses to remain competitive.
On entrepreneurial success of small and medium enterprises (sm es) a conceptu...Alexander Decker
This document provides a conceptual and theoretical framework for studying entrepreneurial success of small and medium enterprises (SMEs) in Nigeria. It begins by reviewing literature on how entrepreneurial success has been defined, including both financial measures like profits, sales, growth, and non-financial measures like customer satisfaction and personal achievement. The document then examines different dimensions and indicators that have been used to measure entrepreneurial success, such as firm size and age, export sales, market share, and introduction of new products. Both internal factors like entrepreneur and firm characteristics, and external factors like economic conditions and government regulations are discussed as influencing entrepreneurial success. The goal of the document is to inform empirical research on factors influencing entrepreneurial success and appropriate measures of
This document summarizes a research study that examined how characteristics of entrepreneurs and firms affect the business success of small and medium enterprises (SMEs) in Bangladesh. The study found that entrepreneur characteristics, such as age, gender, education level and experience, significantly impacted business success, while firm characteristics did not. Specifically, SMEs operated longer by entrepreneurs were more successful, and male-owned SMEs performed better than female-owned ones. The document provides background on SMEs' important contributions to the Bangladeshi economy and reviews prior literature on factors influencing business success.
This document discusses business plan strategy (BPS) and its importance for organizational success. It defines BPS as providing an overview of a business, including its history, products/services, goals, competitors, and growth plan. An effective BPS is considered one of the most important factors for business success. It can help guide a business strategically and serve as a monitoring tool. The document also notes that while BPS is crucial, long-term strategic planning is often lacking in many organizations.
11.business plan strategy as social responsibilityAlexander Decker
This document discusses business plan strategy (BPS) and its importance for organizational success. It provides details on key elements of an effective BPS, including outlining an organization's history, products/services, goals, competitive advantages, and growth timeline. It also discusses factors important for effective BPS, such as obtaining support from leadership, assessing costs of poor quality, and benchmarking performance against competitors. Overall, the document emphasizes that a well-developed BPS can provide guidance for an organization and help ensure its long-term viability.
360 degree ei implementation business model – tool to achieve competitiveIAEME Publication
The document summarizes a research paper that developed a 360 Degree Emotional Intelligence (EI) Implementation Business Model. The paper conducted a comparative analysis of the EI-based stakeholder practices of 5 large, successful companies - Tata Steel, Walmart, British Petroleum, Toyota Motors, and Samsung Electronics. Across practices related to human resources, consumers, society, government/environment, investors, and third parties, the analysis found these companies commonly prioritize satisfying stakeholders through EI initiatives. Based on this, the research proposes a business model for small/medium enterprises to implement EI strategies to achieve competitive advantages like large corporations.
360 degree ei implementation business model – tool to achieve competitiveIAEME Publication
The document summarizes a research paper that developed a 360 Degree Emotional Intelligence (EI) Implementation Business Model. The paper conducted a comparative analysis of the EI-based stakeholder practices of 5 large, successful companies - Tata Steel, Walmart, British Petroleum, Toyota Motors, and Samsung Electronics. Across practices related to human resources, consumers, society, government/environment, investors, and third parties, the analysis found many similarities in how the companies prioritize satisfying stakeholders through EI initiatives, contradicting the hypothesis that EI is not a common factor in their success. Based on these findings, the research proposes a business model for new and small enterprises to implement EI strategies to achieve competitive advantages and sustainable growth
This document contains a conceptual study of business management and organizational systems conducted by Partha Pratim Gautam for their MBA/PGPM program. It includes a student declaration, certificate by the guide Prof. Ravi Shankar, acknowledgements, table of contents, and executive summary. The study was conducted on Apollo Munich Health Insurance Company Ltd under the guidance of Prof. Ravi Shankar at Excel Business Academy in Bangalore.
Nine in 10 people (90%) working in employee-owned companies describe its leadership style as ‘high performing, visionary, democratic and coaching’, compared to just six in 10 (58%) working in non-employee-owned businesses.
That’s according to CMI and MoralDNA™ who explore the performance and productivity benefits to organisations of employee ownership in The MoralDNA of Employee-Owned Companies: Ownership Ethics and Performance.
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Determinants of business succes: Trust of business policy?
1. -Journal of Arts, Science & Commerce ■ E-ISSN 2229-4686 ■ ISSN 2231-4172
DETERMINANTS OF BUSINESS SUCCESS:
TRUST OR BUSINESS POLICY?
Esuh Ossai-Igwe Lucky, Adebayo Isiah Olusegun,
College of Business, Universiti Utara School of Business & Mgt., Lagos State
Malaysia, Malaysia Polytechnic, Nigeria
Muhammad Shukri Bakar
College of Business, Universiti Utara Malaysia, Malaysia
ABSTRACT
Most times businesses prefer to trust their business partners and customers in achieving success
than keeping to the rules and regulations guiding the business activities. Experience has also
shown that many businesses claimed to rely on trust to achieve business success, however,
business policy seems to play more significant and effective role in achieving business success
and keeping the business going. Therefore, the issue of whether trust determines business success
better than business policy called for an urgent attention as many businesses relied on trust rather
than business policy. In view of this, the paper examines which among one of these factors better
determine business success. It examined trust and business policy based on credit and loans
perspective. Based on the literature and previous business experience, it was argued that
businesses could make better success and prevent the business from death by sticking on their
business policy rather than mere business trust which could be injured.
Keywords: Determinants, business, success, trust, business policy, bankruptcy
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INTRODUCTION:
There is no doubt that the major purpose of setting up a business is to make profit, achieve success and ensure
the continuous existence. Therefore, a successful business is one that produces a very acceptable return on the
assets employed. It is that which is positioned to keep on running well without depending on the owner to be in
daily attendance (Changing Minds, 2012). In this regard, the success of any business is therefore, very
paramount to the owner (s) and on the other hand, the owners’ joy is as a result of the success of the business.
However, a business does not just achieve success; certain factors would have played very significant function.
Therefore, businesses must identify which factors best influence their business success in order to capitalise on
such factors especially in this present global competitive environment where businesses are struggling to
achieve success at all cost. More often than not, most businesses around the globe relied highly on trust as their
determinant success factor. However, relying on trust could be very devastating as many businesses have gone
down the drain as a result of their trust on the customers as well as the business partners (Changing Minds,
2012). On the other hand, keeping to the rule of the game (business policy) could be better in achieving success
than trust as business policy would guide the business to the right path and prevent the business from taking
wrong decisions that could cause its death.
With respect to above, this paper raises an argument on which of these two determinants (trust and business
policy) best determines business success. Therefore, the question of which of these determinants poses to be a
better business success determinant is of great concern to this study. For example, experience has also shown
that many businesses claimed to rely on trust to achieve business success, however, business policy seems to
play more significant and effective role in achieving business success. Therefore, the issue of whether trust
determines business success better than business policy called for an urgent attention as many businesses have
misconstrued this by preferring trust to business policy.
Although extensive studies have been conducted on business success determinants (e.g Lucky and Minai, 2012;
Lucky, 2011; Lucky, 2012; Man et al., 2002), however, certain determinants have not been considered (Jasra,
Khan, Hunjra, Rehman, and Azam, 2011). For instance, factors such as trust and business policy which authors
have noted to play significant roles in business success are yet to be considered in determining the business
success. Apart from this, Lucky and Minai (2011); Man, Lau and Chan (2002) have argued that investigation on
success factors still deserve further attention particularly in the study of business management. Secondly, the
arguments on the most influential factors that determine business success as well as performance is still ongoing
as authors are yet to draw a conclusion (Lucky et al. 2011; Man et al., 2002). This situation highlighted above
suggests that further examination on the determinants of business success is needed in order to address this
argument. In this view, this paper examines which among one of these factors (trust and business policy) better
determine business success. It argues that businesses could make better success by sticking on to their business
policy rather than mere business trust which could be injured.
LITERATURE REVIEW:
DETERMINANTS OF BUSINESS SUCCESS:
A critical view of business success would reveal that there is no right or wrong when it comes to how
businesses define their overall business success. However, their measures should try to focus on what they can
control. In this one cannot rule out success when talking about business since the business is often evaluated or
measured by the amount of success achieved (Lucky & Minai, 2011). Business success is defined as the ability
of the business to achieve its stated objective. It is the achievement of the business with regards to its business
goals. It is having set goals and achieving them. According to Lucky (2011), business success tends to provide
information on efficiency, growth, profit, size, liquidity, success/failure, market share and leverage. It supplies
information about the business’ growth, success/failure and most predominantly, the profitability of the business.
Therefore, business success indicates that the business is profitable, effective, efficient, successful, etc.
A business does not just achieve success; certain factors have to play significant functions. In this regard,
studies on business success have listed several factors which tend to determine business success (Jasra, Khan,
Hunjra, Rehman, and Azam, 2011; Ugwushi, 2009; Alarape, 2007). The studies by Ugwushi (2009); William,
(2009); Okpara and Wynn (2007); Ogundele (2007); Ogundele (2007) and Alarape (2007) found that factors
such as inadequate infrastructure, poor management, corruption, inadequate capital, poor record keeping,
financial resources, management experience, corruption, strategic, operating, administrative and managerial
skills determine business success. Similarly, Ogundele (2007); Aderemi, (2007); Okpara et al. (2007); Kolawole
and Torimiro (2005) affirmed that social status, personal experience, infrastructural functionality, educational
advantage, economic prowess, institutional influence and, information and project type, social-cultural,
ecological, managerial, educational, developmental, experiential, technological, structural and ethics contribute
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3. -Journal of Arts, Science & Commerce ■ E-ISSN 2229-4686 ■ ISSN 2231-4172
to business success. Accordingly, the study by Lucky and Minai (2011); Rebecca et al.
(2009) and Arowomole (2000) asserted that individual characteristics, culture, location, external factors,
innovative, training and development and competence determine business success. Most recently, the study
conducted by Jasra et al. (2011) found that factors such as environment, financial resources, technology
resources, equipment, government support, market strategy, information access and entrepreneurial skill
determine business success. They asserted that these factors play a vital role in determining the success of the
business.
From all indications, authors have found all the above mentioned factors to have connection with business
success. However, despite this abundant list, it is surprising that some factors are not supported by these studies,
even the most recent empirical study conducted by Jasra et al., (2011). Factors such as trust and business policy
seem to be missing in these studies highlighted above. Hence, they are not being mentioned by authors. This is
the more reason why this study takes this direction in order to consider these determinants. Therefore, this paper
examines the determinant of business success from the perspective of two key determinants; trust and business
policy.
BUSINESS TRUST:
Generally, trust can be defined in different context depending on what the author wants to achieve. Therefore, in
this context, the authors examine trust in the business perspective. There is no doubt that almost all businesses
and commercial transactions involve an element of trust (Huang and Wilkinson, 2006). This trust is often built
over a period of time between the business and its customers including its business partners. According to
Huang et al., (2006) trust is what is needed when there is a situation of uncertainty where parties are
interdependent. It involves a situation whereby one party relies on another party to act in an expected way. The
study by Rotter (1967) on classical view of trust defined trust as a general expectancy an individual holds that
the word of another individual can be relied upon. Morgan and Hunt (1994) regard trust as existing in a
situation when one party is confident of its exchange partner's reliability and integrity. The definition by Huang
et al., (2006) noted that trust is a party belief in the reliability of an exchange partner and its readiness to behave
in the same manner.
According to one expert on trust, Dr. Duane C. Tway, Jr., trust is defined as, "the state of readiness for
unguarded interaction with someone or something" (Changing Minds, 2012). He developed a model of trust that
includes three components. He called trust a construct because it is "constructed" of these three components:
"the capacity for trusting, the perception of competence, and the perception of intentions." In an attempt to
define trust, The Great Place to Work Institute found that trust is in three characteristics, "first, trust grows out
of the ability to perceive others as credible that what they say is true, that their actions are consistent with their
words, and that they will be ethical in their business practices" (Lyman, 2003, p. 4). Trust has also been defined
in four dimensions of predictability, value exchange, delayed reciprocity and exposed vulnerabilities (Changing
Minds, 2012). As predictability, trust means being able to predict what other people will do and what situations
will occur. According to this statement, it implies that when one encircles himself with trusted people, then he
can create a safe present and an even better future. As a value exchange, it means making an exchange with
someone when you do not have full knowledge about them, their intent and the things they are offering to you
while as delayed reciprocity, it means giving something now with an expectation that it will be repaid, possibly
in some unspecified way at some unspecified time in the future. Finally, as exposed vulnerabilities, trust means
enabling other people to take advantage of your vulnerabilities—but expecting that they will not do this. In
organizations, trust can be best defined as the ability to believe your employees as well as your business
partners without doubting them. It is the ability to perceive others (employees and business partners) as being
credible. However, due to the authors' previous experiences in business and other areas of our lives, we came to
a conclusion that trust is best defined as a "risk". Hence, trust is a risk. It is a 50:50 thing.
The importance of trust cannot be quantified in every aspect of human endeavour. In human relationship, trust is
needed to sustain it. In organizations and workplaces, experts have noted that trust is very important in getting
the employees to work and contribute significantly to the organizational performance (Changing Minds, 2012).
In business, trust plays a key role in sustaining and keeping the business going, not only that but also
contributes to the success of the business. Because trust is a risk, there is tendency that people may one time or
the other abuse trust in the course of business transactions, therefore, making trust 100% unreliable. A business
based on trust is at risk and the business might not realize that until the trust is abused. For example, even in
business organization in which trust is a priority, things happen daily that can injure trust. A communication is
misunderstood; a customer order is misdirected and no one questions an obvious mistake. After all, businesses
that went bankrupt trusted the intentions of other partners, and thus was severely injured in the eyes of the
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4. -Journal of Arts, Science & Commerce ■ E-ISSN 2229-4686 ■ ISSN 2231-4172
people as explained by Tway’s trust model (Changing Minds, 2012).
Spekman (1988) noted that trust is very important and crucial in business. That is the much reason the author
called it "the cornerstone of strategic partnership". He noted that trust will reduce both customers and partner's
commitment which then affects business success. The study by Morgan et al. (1994) found that trust is a major
determinant in relationship commitment that leads to success. Dyer (1996) argued that trust is a prerequisite to
the successful involvement of customers and mutual levels that leads to success. Kwon and Suh (2004) argued
that unless trust is actionable, business success or gain will be very difficult to achieve. They noted that a
successful business performance is based on a high level of trust among business partners. The research
framework offered by Huang and Wilkinson (2006) showed that trust affect business relations as well as
business success. Similarly, the most recent study conducted by Fracaro (2008) on employee trust found that
employees’ trust in their managers is vital to the success of every business. Therefore, trust is an indispensable
determinant of business success.
BUSINESS POLICY:
Generally, policy is a guideline that provides a direction to the business. Business policy therefore, tends to
define the scope within which decisions can be taken by anybody in the business. Lucky (2011) describes
business policy as that which assigns boundary to decision making. It provides power to anybody in the
business to take a decision without consulting the top management. Business policies are the guidelines
developed by an organization to govern its actions. They define the limits within which decisions must be made.
It also deals with acquisition of resources with which organizational goals can be achieved. It is equally, the
study of the roles and responsibilities of top level management, the significant issues affecting organizational
success and the decisions affecting organizations in the long-run. It can equally be defined as the blueprint of
the business activities of the organization which are repetitive/routine in nature. It deals with what needs to be
done and what is not to be done. Policy is concerned with both thought and actions. It involves all the
routine/daily activities essential for effective and efficient running of the business. Business policy also includes
essential business rules, such as credit allowance, business ethics, practices etc.
Because business policy is concerned with the daily operations of the business, therefore, any unnecessary shift
or mistake will affect the success of the business. In the study conducted by Laning (1983) on the effect of
business policies on the methods of obtaining new business found that business policy is a key success factor
that determines the success or failure of a contract proposal. A critical observation and experience have shown
that business that conform their business activities to their policy is likely to achieve butter success than those
which do not do so.
TRUST VERSUS BUSINESS POLICY:
Abuse of trust: Although trust has been found to determine the success of any business, however, trust being
seen as a risk could be abused by any of the parties involved. The abuse of trust could cause the death of any
business involved. According to Dr. Tway, things happen daily that can injure trust. Trust which is ever
changing concept is noted to be constantly affecting business and being affected by most activities in business
transactions. Because trust does not guide decisions and neither is it based on policy, there is bound to be a
serious mistake which could plunge the business to death. Therefore, to ensure business success and continuous
existence, business decisions should be based on business polices and not trust, basing decisions on the later
will be disastrous as it could lead to the death of the business. For example, credit extensions to customers
should be based on the business policy rather than trust. Experience has shown that many business owners
sometimes prefer to grant credit to customers based on the trust they have on them yet we must agree that trust
being a risk is uncertain and therefore, the other party might decide not to behave as expected (Huang et al.,
2006).
Immeasurability of trust: the question is how does a business measure trust of their customers? How can one
party measure the trust of another party? Honestly, there are no parameters or indicators to measure trust. This is
the more reason we defined trust as a risk. A 50:50 thing. If this is the situation, why then would a business
prefer to take huge risks that could drive it into business failure. In the course of business transaction, the seller
asked the buyer for his full payment which the buyer declined. The seller then asked don't you trust me and the
buyer quickly replied him trust is a risk. He was perplexed and then said, that is interesting. The buyer then told
him, I am sorry but this is my policy. I can only complete the payment when all papers concerning this business
are properly signed in the appropriate authorities. The buyer said this because he was unable to measure the
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sellers' trust, although, a friend to the seller to an extent but the buyer was not sure of getting the seller with him
to sign the papers if he succeeded in getting his full payment yet he did not want to offend the seller. Therefore,
the issue of business policy comes in and that solves the problem at once.
In the case of business policy, it helps the business to limit their decision to those areas they are not sure of. In
an uncertain situation, and situations involving friends, relatives and others, policy will balance it and prevent
you from taking such a dangerous risk that could set your business on fire. Consider a thing like this, although
in as much as we would like to do business with you, we are sorry our policy does not allow us to extend credit
to you. This is business policy. However, given the same credit situation, trust will say, because you are my
friend or relative, we will grant you credit but please make sure you pay as expected. For instance, if after the
expected time, he does not pay; what next? Experience has shown situations where the business-owner paid
from his pocket money in order to avoid given credit to his friends or relatives and keep the business policy
effective. After all, they say "business succeeds when friends and relatives pay". Tway contended that many
businesses went to bankrupt even though trust was their top priority. He noted that things happen daily that can
injure trust and as such policy would be in better position to guild the business in profitability path.
CONCLUSION:
The paper examined the determinants of business success. It presents an argument on which factor best
determines business success: Trust or business policy? The paper examined this issue purely on credit and loans
perspective of the trust and business policy. In this regard, trust was defined as a risk, a 50:50 thing, while
business policy was defined as guidelines developed by the business to govern its actions. The paper noted that
although, all business transactions involve a certain level of trust or the other yet trust could be abused, thus
making trust a risk which could affect businesses in a negative way. It acknowledged that trust plays huge roles
in business success; however, the risk seems to be very high as many businesses have been affected as a result
of their trust on their customers as well as their business partners. Therefore, trust may not guarantee business
success to a large extent. On business policy, the paper argued that it determines business success to a greater
extent since it provides guidelines upon which day-to-day running and operations of the business are being
conducted. It prevents owners and the business from going beyond their boundary with regards to business
decisions. Therefore, it is argued that business policy will sustain the success of the business more than trust; as
trust could be abused by any of the parties involved which could result to business failure. Thus, business
owners should always allow policy to prevail over trust. However, they can also try to blend trust with policy in
order to appease the long time customers of the business who have built a strong relationship with the business.
This paper contributes to the existing literature in this domain by examining these determinants which other
studies may have neglected. Finally, based on the arguments presented in this paper, it is suggested that an
empirical study should be conducted to provide empirical evidence on the argument between trust and business
policy. Again, the issue of trust and business policy was examined strictly on credit and loans perspective,
therefore, further studies in this domain can replicate this study by looking at other perspectives.
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