Emerald | Measuring Business Excellence

The Effects of Employee Competencies and IT Applications on Operations Strategy: An empirical study of retail firms in China

Wantao Yu, Ramakrishnan Ramanathan — 2012-03-16 00:00:00.0

Abstract

Purpose - The objective of this paper is to investigate the relationships between employee competencies, information technology (IT) applications, operations strategy and business performance.Design/methodology/approach - Drawing upon the resource-based theory, this study employs a path analytic framework to investigate how employee competencies and IT applications influence the development of competitive operations strategies and business performance for a sample of retail firms in China.Findings - The findings indicate significant and positive relationships between employee competencies and operations strategy (e.g. low cost, quality and flexibility). IT applications also play a vital role in helping retailers pursue a flexibility strategy. The operations strategies of low cost and flexibility in turn influence business performance.Originality/value - This study seems to be the first in investigating the impacts of employee competencies and IT applications on operations strategy and performance in the service sector, especially in the Chinese context.

MANAGERIAL LESSONS ON RELEVANCE AND MEASURABILITY IN R&D PROJECT VALUATION

Petri Suomala, Juho Kanniainen, Antti Lönnqvist — 2012-03-16 00:00:00.0

Abstract

Purpose - Comprehensive R&D project valuation calls for internal information on, for example, R&D investments as well as external information such as market projections that relate to the expectations on product’s life and revenue cash flows. Given the versatility of information needs, the valuation is generally expected to be challenging during R&D. This paper analyses the perceived feasibility of R&D project valuation in real-life organizations and discusses possibilities to increase the relevance of measurement for managing value creation.Design/methodology/approach - The study is based on empirical data gathered by a questionnaire targeted at companies representing different industries in Finland. The data are analyzed in terms of company size, R&D intensity and the nature of the development activity (product or service).Findings - The result describe how the managers responsible of R&D experience the importance and measurability of different elements potentially relevant for the success of a project. It was discovered that things that were considered important were generally perceived as challenging to apply in practice.Practical implications - The paper lists several managerial activities for improving R&D evaluation practices. As a managerial contribution, the paper develops a framework for identifying different types of measurement elements.Originality/value - Based on the empirical findings, a number of suggestions are made for improving the measurement of various elements of value. The paper elaborates the potential role of a number of indirect and less obvious aspects in association with R&D project value: the features of developed product’s life cycle, created intellectual capital, emerging real options and windows of opportunity.

Making Performance Measurement Systems More Effective in Public Sector Organizations

Swee Chua Goh — 2012-03-16 00:00:00.0

Abstract

Purpose - Performance management in public sector organizations is a growing phenomenon worldwide. Increasingly, questions are being raised as to its effectiveness in achieving the objective of improving the performance of public sector organizations. Research has shown that there seems to be questionable benefits and many barriers, challenges and problems with implementing performance management and measurement in the public sector environment. It is argued in this paper that this is due to the lack of focus on the process of managing the implementation of performance measurement. We review the relevant extant literature to suopport our assertions and to provide a conceptual framework that integrates these ideas. Design/methodology/approach - This paper reviews the extant literature on public sector performance management and measurement and develops a conceptual framework to explain how public sector perfomance measurement systems can be made more effective in light of the research evidence.Findings - This paper suggests that three important factors that need to be considered in the effective implementation of a performance measurement system in the public sector. They are managerial discretion, a learning and evaluative organizational culture and stakeholder involvement. These three factors are discussed and its impact on performance measurement is explored. Research limitations/implications - A proposed integrative framework is presented that supports the assertion of the importance of these three factors in influencing how performance measurement can lead to improved performance in public sector organizations. Some potential environmental and institutional constraints are also discussed in implementing some of the suggestions proposed. Practical implications - Provides a model that explains the three important facors that need to be considered in implementing an effective performance measurement system in public sector organizations and suggestions for how it can be implemented effectively.Originality/value - Integrates and synthesizes the literature on public sector performance measurement into a comprehensive conceptual framework that explains more explicitly the factors that can influence the effectiveness of a performance measurement system in the public sector.

A contingency approach to performance measurement in service operations

2012-03-16 00:00:00.0

Abstract

Purpose - This study investigates the contingency factors affecting performance measurement in service context. The paper reviews the literature on performance measurement and synthesizes it to a framework that creates a basis for analyzing measurement practices in various kinds of service contexts.Design/methodology/approach - In order to obtain a fresh update to the existing knowledge on the topic, a systematic literature review was carried out. Around 8000 articles published between 2005 and 2011 were reviewed and, as a result 80 papers were chosen for a more detailed examination.Findings - The paper applies a fresh approach to performance measurement in services increasing generalizability of case study findings. By analyzing a large set of studies, the study identifies contextual factors that affect performance measurement in service operations. The resulting framework acts as a foundation for further research on performance measurement in services.Research limitations/implications - Practical implications - The results of this research can be further refined into more practice-oriented framework. After further field research and testing the framework can be linked to practical recommendations in different settings of measurement development. Originality/value - The measurement of service operations is known to be challenging due to some service-specific features. Much of the existing research on the topic has been carried out in a specific service industry with a specific measurement need. In order to increase generalizability, there is also a need to carry out cross-case analysis identifying patterns among individual case studies. This supports the application of lessons learned from a certain specific setting into other fields. There is very limited knowledge on the contingency factors related to measurement system development caused by service context.

The Effect of Intellectual Capital on Firm Performance: An Investigation of Iran Insurance Companies

mohammad alipour — 2012-03-16 00:00:00.0

Abstract

Purpose - The purpose of this paper is to analyze the role of intellectual capital (IC) and its relationship with financial performance of Iran insurance companies during the period 2005-2007. Design/methodology/approach - 39 insurance companies were selected as the sample. Regression model (partial least squares) has been applied to examine the relationship between intellectual capital and companies’ return on assets ratio (ROA).Findings - The results of the research revealed that value added intellectual capital and its components have a significant positive relationship with companies’ profitability.Research limitations/implications - Practical implications - The VAIC™ method could be an important means for many decision-makers to integrate IC in their decision-making process, which allows, insurance companies to benchmark themselves according to the intellectual capital efficiencies and develop strategies to enhance their company’s performance.Originality/value - This is the first research which has used the data on VA recently calculated and published by Iran insurance firms in the "Value Added Scoreboard".

SUPPLY CHAIN PERFORMANCE ISSUES IN AN AUTOMOBILE COMPANY : A SAP-LAP ANALYSIS

Parikshit Charan — 2012-03-16 00:00:00.0

Abstract

Purpose - Supply chain performance is concerned with managing dependencies between various supply chain members and the joint efforts of all supply chain members to achieve mutually defined goals. There are various performance initiatives reported in the literature but these are often discussed in isolation. Information sharing, information technology, collaborative partnerships, and vendor management that help in improving the supply chain performance are some of the noteworthy initiatives. But there is a need to consider supply chain in a holistic sense. This paper sets out to analyze a case study of A1, a leading original equipment manufacturer in India, to throw light on the status of supply chain performance initiatives taken in its supply chain.Design/methodology/approach - A situation-actor-process (SAP)-learning-action-performance (LAP) model has been applied for the case study of A1. The situation represents the present scenario of the organization. Actors are the participants, influencing the situation to evolve different business processes. Based on SAP, various learning issues have been analyzed which lead to suitable action followed by impact on the performance of the supply chain of the organization. Resource-based view (RBV) of the firm has been suggested to understand the tangible and intangibles associated with the implementation of supply chain performance measurement system. Findings - Organization has taken various initiatives for improving supply chain performance like vendor managed inventory and dealer management system. However, the issues that need attention include measurement of the vendors performance on criteria which have supply chain orientation, as well as connecting dealers’ point of sale information to vendors; This way connecting the supply chain as a whole. Emphasis on second and third tier suppliers as most of the quality related problem is due to them. And in the 21st century only those organizations can gain competitive advantage which pay attention to agility, alignment and adaptability for responding to the challenges. SCPMS as a resource can provide a sustained competitive advantage for a firm.Research limitations/implications - The SAP-LAP analysis is used to explain soft and hard issues of supply chain performance in a managerial context as applied to the case of A1. The value of SCPMS can be augmented only when it is embedded in an organization through resource complementarity and co-specialization. Practical implications - The SAP-LAP model presents the situation of supply chain performance to participants who may initiate the processes needed to make supply chain effective and efficient. The synthesis of SAP leads to LAP, which bridges the gap by suggesting improvement actions based on the learning from the present situation, actors and processes. Originality/value - This is a novel approach to analyze quantitative and qualitative issues of supply chain performance initiatives in a single model and its impact on performance of the supply chain.