The Influence of Management Innovation and Technological Innovation on Organization Performance. A Mediating Role of Sustainability

Unravelling the asymmetric effects of procurement practices on firm performance: A complexity theory approach to complementing fsQCA with NCA

Current economic upheavals and supply chain uncertainty have threatened the profitability and sustainability of business organisations. Procurement has proved to be one of the strategies for enhancing firm performance without necessarily increasing revenue with its attendant increase in costs. However, rather than investigating the complex asymmetric relationship between procurement practices and firm performance (which this study advocates), past research engaged in a symmetric evaluation of the relationship between the phenomena. Accordingly, this study, using complexity theory, employs fsQCA and NCA on a sample of 150 respondents from private universities in Ghana to (a) identify different combinations of procurement practices, namely procurement planning, supplier partnership, contract management, and compliance, that lead to firm performance and (b) explore the necessity of these procurement practices (in kind and degree) for firm performance. Whereas the findings from fsQCA reveal three distinct combinations of procurement practices for high firm performance and further suggest that none of the procurement practices was necessary for firm performance, the NCA results suggest that two out of the four procurement practices investigated are necessary for firm performance and hence must be present in the causal recipes produced by fsQCA to guarantee that they lead to firm performance. The study offers pathways to firm performance through procurement practices and demonstrates how to complement fsQCA with NCA to ensure that causal recipes produced by fsQCA can produce the outcome.

Study of innovation capacity of fisheries companies in the covid-19 pandemic crisis

Abstract Many countries have encountered coronavirus pandemic crisis around the world. Through the outbreak of this disease in Iran, preventive plans have been implemented to break the chain of the disease infection. These measures in the economic sector have affected supply, production and demand, and to some extent have led to the partial or complete closure of some businesses and occupations. In the context, it seems that innovative an “innovation capacity” infrastructure measures and turning to innovation in this crisis can be a strategy to moderate and optimize the situation. This study tries to design concepts of the fisheries firms’ innovation capacity model in the context of the COVID-19 pandemic crisis. After collecting data, they were analyzed using SPSS and PLS SMART software, which were performed in two parts: descriptive statistics and analytical or inferential statistics. A novel research model is presented to examine the impact of factors such as innovation management, social, cultural, human and organizational capital, crisis strategies, government actions in crisis situations, and marketing strategies in crisis situations, as well as, recognition and application of marketing advantages in crisis situations, which offers a re-analysis of innovation capacity. According to the results, among the variables played a significant role on the level of innovation capacity in epidemic conditions, innovation management (p> 0.000; β = 0.593), and recognition and application of marketing advantages (p> 0.049; β = 0.209) were the most significant, independent variables affecting the innovation capacity, which explained its variations.

The role of internal auditing on corporate governance: its effects of economic and environmental performance

Internal auditing has been an elementary and powerful component of corporate governance in business strategies. It is highly acknowledged as an important business control system in the realm of quality management. Business performance does not come by itself; it needs plenty of aids and capabilities. Existing studies have investigated the business performance with fewer outcomes in corporate sustainability, firm, and environmental performance. We present analysis and validated improvised hypothesis through structural equation modeling (SEM), using analysis of a moment structures (AMOS), on empirical evidence gathered from 304 Chief Executive Officer (CEOs) in Top Multinational Companies of Pakistan (TMCP). In this paper, we examine the role of internal audit functionality as an influencing factor via corporate governance in corporate sustainability, firm performance, and environmental performance. Moreover, business quality and performance are maintained using functions such as interests of shareholders, personnel and finance. Results suggest that internal audit functionality and corporate governance significantly influence corporate sustainability, firm performance, and environmental performance. Additionally, CEOs and top managers of TMCP are advised to concentrate on internal audit functionality with a mediating role of corporate governance that in turn encourages corporate sustainability, firm performance, and environmental performance.

The impact of environmental regulation, Environment, Social and Government Performance, and technological innovation on enterprise resilience under a green recovery

In recent years, the world has witnessed an alarming rise in extreme events, posing significant challenges to the survival and growth of enterprises. In response, adopting a green development strategy has emerged as an imperative for businesses to bolster their resilience. It is crucial to recognize that not all enterprises possess the same level of resilience, thereby highlighting the disparities in their ability to withstand adversity. Consequently, scholars have been fervently engaging in discussions and research to identify the most effective paths of green development, enabling enterprises to enhance their resilience and adeptly navigate through crises. This study employs questionnaires to scrutinize the influence of environmental regulation, environment social and government performance, and technological innovation on enterprise resilience by constructing structural equations that encompass both external constraints and internal corporate management. The findings demonstrate that environmental regulations can stimulate technological innovation for the purpose of promoting sustainable development, thereby bolstering enterprise resilience; By incorporating environment social and government principles into their operations, enterprises can instil a culture of environmental consciousness and proactively incentivize innovative solutions, ultimately enhancing their capacity to adapt swiftly and recover from crises; The practice of environmental regulation and the incorporation of environment social and government concepts serve as a catalyst for enterprises to engage in technological innovation, thereby promoting technological advancement and enhancing corporate resilience.

The link between green innovations, corporate performance, ESG activities, and sharing economy

In current years (environment, social, and governance), ESG activities in various countries have been focus more attention their stakeholders by enterprises. The world largest developing country China. The Chinese registered Enterprises ESG performance helps to apprehend the deficiencies of their sustainable ability and development for boost the organizations value. Furthermore, enterprises must balance the allocation of resources between green innovation investment and ESG activities in the future as a result of the interaction effect between these two factors. This research examines the effects of environmental, social, and governance issues on financial and non-financial performance at registered Chinese manufacturing firms since 2009 to 2019. Green innovation is also tested as a moderating factor. Results show that environment, common, and governance performance has negative influence on the firm financial performance. On the other hand, its negative effects on financial performance will be enhanced. The environmental activities have negatively affected financial performance but green innovation has positively regulated them. Non-financial performance is positively impacted by the ESG performance. The ESG general performance and the environmental performance have positive influence on corporate reputation with the improvement of green innovation levels increase. Corporate financial performance is influenced by green innovation and social activities in a substitutional manner.

The moderating role of leadership on the relationship between green supply chain management, technological advancement, and knowledge management in sustainable performance

The escalation of regulatory obligations in order to reshape and implement eco-friendly operations make it essential for firms to execute the related strategies and enhance their position in a competitive market. Scholars and practitioners, thereby, have aligned their search in the area of sustainability to get to know regarding activities that might improve the outcomes of business practices. To contribute in a particular area, the study attempts to explore the critical role of knowledge management, technological advancement, and green supply chain (SC) management on SBP in the presence of a moderator-leadership. China is used as a study sample, and the study model was evaluated through structural equation modelling. Statistical findings indicate that knowledge management, technological advancement, and green SC management have a positive influence on SBP in China. The findings reveal that leadership support significantly moderates knowledge management, technological advancement, green SC management, and SBP in China. These outcomes guide regulators in making regulations related to sustainable performance using the best practice of SC, technology advancement, and knowledge management.

Does environmental responsible effect human resources management practice on firm effectiveness and green technology innovation?

The research uses human resources management ability and practice, opportunity and motivation (AMO) concept and CSR, environmental responsibility and corporate social. How (ER-HRM) environmental responsible human resources management practices affect energy intensive manufacturing. Organizational effectiveness and green technology innovation and firms have several objectives, including competitiveness, long-term survival, and high profit. To test the hypotheses in this research model, a self-completed questionnaire was collected from 220 managers of energy-intensive manufacturing for analysis. The ability ER-HRM practice has the highest influence on green technology innovation and organizational effectiveness. It is worth noting firm effectiveness relationship between ER-HRM practice and green technology innovation. The finding indicates a strong straight positive impact of the motivation, environmental ability, and opportunity ER-HRM practice on green technology innovation and organizational effectiveness. Research also proves that green technology innovation plays a partial mediation link (ER-HRM) with organizational effectiveness. Our research supports the further development of ER-HRM for understanding the drivers of green technology innovation and organizational effectiveness. This research is expected to identify the influence of ER-HRM in energy-intensive manufacturing to achieve innovation and performance through reducing emissions. We recommend to the manager to give due attention.

Sustainable supply chain management and green technologies: a bibliometric review of literature

To attain ecological sustainability and transition to sustainable supply chain management (SSCM), effective technological innovation (TI) and solid waste management (SWM), as likely impending resources, are essential components. From 2000 through 2021, a detailed map of SSCMs in the context of TI and systematic history will be created, highlighting the most significant research themes and trends, primary features, development, and possibly relevant areas for future study. Due to utilizing bibliometric analysis, text mining, and content analytics methodologies, the following concerns were addressed: (1) How has SSCM research progressed over time in the TI domain? (2) Which SSCM research areas and trends receive the most attention in the TI domain? Additionally, (3) what are the research directions for SSCM in the context of TI? As a result, bibliometric networks were developed and examined using 983 journal articles from the Scopus database to highlight the substantial body of literature. As a result, SSCM has been divided into five crucial study themes: (i) transition to TI, (ii) SSCM in closed-loop supply chains, (iii) municipal solid waste management (MSWM), (iv) environmental consequences and life-cycle evaluation, and (v) policymakers and practitioners in SSCM can use the SSCM research landscape and its primary highlight patterns to guide and add in the TI. Considering SSCM research as a way to reduce waste, future study directions are also suggested.

COVID-19 Pandemic and SMEs Performance Decline: The Mediating Role of Management Innovation and Organizational Resilience

It is a major practical problem to find out a pathway for firms to quickly recover from the performance decline in the context of the COVID-19 pandemic and other sudden major crisis in the current academic circles. Based on event system theory and structural adjustment to regain fit model, this paper empirically explores the impact of the COVID-19 pandemic on SMEs performance decline and discusses the management innovation response and organizational resilience mechanism of firms by virtue of the questionnaire survey data of SMEs in Guangdong Science and Technology Park in China. The research results elucidate that the criticality and disruption of the COVID-19 pandemic will not only lead to the SMEs performance decline, but also enable SMEs to carry out management innovation. Moreover, management innovation does not directly curb the SMEs performance decline caused by the COVID-19 pandemic, but indirectly inhibit it by promoting organizational resilience. In other words, the COVID-19 pandemic will indirectly promote organizational resilience through firm management innovation, thereby curbing the SMEs performance decline. A path of management innovation response and organizational resilience to reverse the performance decline can be obtained in the study when SMEs confronting sudden major crisis. Furthermore, the study also expands the application scope of structural adjustment to regain fit model, which provides a useful reference for firm crisis response and sustainable development.

Assessing the Relationship Between Internet Banking and Investment Decision Through Sustainability and Competitive Advantage: Evidence From Congolese Banks

Competitive advantage and sustainability emerge as important factors for the success of an organization's overall differentiation. This research aims to identify the relationship between internet banking and bank investment decision, as well as gaging the mediating effects of sustainability and competitive advantage as attributes of investment decisions. To achieve that, a questionnaire was administrated to banks' employees and customers. To carry out the hypothesis testing, we have employed structural equation modeling through SPSS and SmartPLS. The findings suggest that internet banking, sustainability, and competitive advantage constructs are significant antecedents of banks because they highlight valuable attributes for banks to attain future benefits. This paper contributes to bank managers and scholars by providing a framework and supporting theories that help to identify relevant constructs and strategic resource characteristics. From the findings, we recommend conducting future studies in other countries or fields to generalize our results.

A Study of the Relationship between Corporate Culture and Corporate Sustainable Performance: Evidence from Chinese SMEs

Sustainable development is a significant issue facing small- and medium-sized enterprises (SMEs). Drawing on the literature of corporate sustainable development and the resource-based view, this study aims to examine how corporate flexibility and control culture influence sustainable performance by triggering innovation capabilities and investigate the moderating role of leadership style (i.e., transformational and transactional). The 186 matched questionnaire data from managers and employees in Chinese SMEs reveal that the flexibility and control culture are positively and negatively related to innovation capability, respectively, and that the latter mediates their influence on sustainable performance. Moreover, transformational leadership positively (negatively) moderates the relationship between flexibility (control) culture and innovation capability, while transactional leadership positively moderates the relationship between control culture and innovation capability. This study enriches the theoretical literature on corporate sustainable performance and provides management insights into how SMEs could survive and achieve sustained growth through corporate culture.

Demystifying the role of absorptive capacity in achieving innovation-based performance: model development and empirical validation

Purpose

The purpose of this study is to explicate the relationship between knowledge-based dynamic capacities (KBDC) and innovation-based performance (INPF) in information technology (IT) firms in India by examining the mediating impact of absorptive capacity (ABCP). The paper aims to determine whether and how the ABCP of the firms is recognized as the essential facilitator of INPF.

Design/methodology/approach

A survey of 511 respondents from Indian IT employees at the upper and middle management levels was undertaken. In this study, the partial least squares (PLS) technique explored the causal links between constructs with the use of the software application SMART-PLS 3.0.

Findings

The outcomes of this study proved the existence of a statistically significant relationship between the ABCP and INPF of information technology firms. Furthermore, ABCP's influence as a mediator between KBDC and INPF is significant. Therefore, findings imply that ABCP mediates the relationship between KBDC and INPF, however, only to some extent.

Research limitations/implications

With the dynamism of the global market, the research has made significant gains in illustrating the criticality of ABCP for strengthening its KBDC in a much-needed Indian context. Therefore, following the recommendations and findings of this study, practitioners should concentrate on strengthening both ABCP and KBDCs to improve their INPF. To do this, managers must proactively organize their resources, procedures, and structure to promote knowledge absorption and dissemination, fostering innovation.

Originality/value

It is a ground-breaking study that proposes that the ABCP plays a crucial role in enhancing the INPF of the firms. The software industry will likely benefit from this study by understanding ABCP's potential impact on its INPF and designing knowledge management methods accordingly.

Evaluating the Effect of Chinese Environmental Regulation on Corporate Sustainability Performance: The Mediating Role of Green Technology Innovation

The environmental pollution that accompanies economic growth has always been of widespread concern. The chemical industry is a highly energy-consuming industry in China, and the pollution this industry causes to the environment cannot be ignored. The paper is based on the Porter hypothesis and uses data from different regions of China. In this paper, we investigate the mediating role of different types of environmental regulation (divided into command-controlled, market-incentive, and voluntary environmental regulation) in positively affecting sustainability performance through green technology innovation (divided into green product innovation, green process innovation, and end-of-line management innovation). The results show that different versions of the Porter hypothesis can be accepted in Chinese chemical enterprises. This finding demonstrates that environmental regulation positively impacts both green technology innovation and sustainability performance. Green technology innovation plays a mediating role between environmental regulation and sustainability performance, especially in East China. However, the mediating effect of green product innovation is not significant. Further study shows that command-controlled environmental regulation has a more significant positive effect on sustainability performance. This suggests that the market-incentive and voluntary environmental regulation tools do not fully play their functional roles. Thus, the paper demonstrates the developmental shortcomings of environmental regulation, green technology innovation, and sustainability performance. This is more conducive to chemical enterprises improving green technology innovation and achieving long-term development and ecological environment protection.

Do entrepreneurial orientation and intellectual capital influence SMEs' growth? Evidence from Pakistan

This research analyzes the impacts of intellectual capital (IC) and the balancing power of entrepreneurial orientation (EO) on innovation growth (IG) in Pakistan's SME sector. A quantitative approach on smart PLS has been applied through the SEM model, backed by a survey to gather primary data from 256 participants of Pakistan's SME sector. A significant effect of human capital on Pakistani firms' IG was identified. In contrast, the effect of structural capital was determined to be insignificant over the IG of Pakistani firms. On the other hand, the customer capital's effect was also significant over Pakistani firms' innovation growth. Little moderation of EO between human capital and IG has been determined. The moderations of "EO between human capital and innovation growth" and "EO between structural capital and innovation growth" were insignificant. However, the moderation of EO between customer capital and IG was significant. The scope of this study is limited to firms in Pakistan and can be extended to firms in other regions, which can provide broad findings.

Role of Technological Innovation in Achieving Social and Environmental Sustainability: Mediating Roles of Organizational Innovation and Digital Entrepreneurship

Innovation has been a major growing driver of sustainability. The topic addressed in this study is a much-required transition to environmental and social sustainability considering the role of innovation in pacing up those changes. Digital evolution has greatly helped in dealing with climatic changes and promoting sustainability. This has helped the entrepreneurial organizations to adopt innovative approaches to tackle the inflexible challenges. Few developed and developing countries are at the forefront regarding technological innovation that encounter significant challenges in terms of innovation and adoption of new technologies and there is still a study vacuum as to whether the influence of technical innovation on achieving social and environmental sustainability differs depending on the stage of sustainability. This quantitative study has explored these effects collecting data from the SME's (small and medium enterprises). The findings of the study show that attitude toward technological innovation has a strong role to play in organizational innovation, digital entrepreneurship, environmental and social sustainability. Organizational innovation has been found a strong mediator between technological innovation and sustainability while digital entrepreneurship could not find significant results as mediator. This study will be useful for the countries and organizations involved in adopting new technologies considering their organization's role in achieving an overall eco-friendly and social sustainability.

Performance Implications of Organizational and Technological Innovation: An Integrative Perspective

Manufacturing firms engage in various innovation activities to achieve a sustainable competitive advantage. Although technological innovation is considered one of the key performance drivers, organizational innovation has become increasingly prominent. This study analyzes the relationship between organizational and technological innovation and examines their effect on firm performance in the manufacturing context. The empirical evidence is based on the European Manufacturing Survey (EMS)—Serbian data set gathered in 2018. Hypotheses on the relationship between organizational and technological innovations and firm performance are tested by structural equation modeling using data from 240 Serbian manufacturing firms. The results have shown that technological concepts strongly mediate the impact of organizational factors on firm performance (return on sales—ROS). Moreover, it could be said that, in contrast to the individual approach, to foster a ROS, a synergic effect of organizational and technological concepts is needed, implying the need for an integrative perspective in the process of innovation.

Towards Enterprise Sustainable Innovation Process: Through Boundary-Spanning Search and Capability Reconfiguration

In the open innovation environment, enterprise sustainable innovation is no longer the result of individual decision-making. Extensive contact with suppliers, customers, scientific research institutions, and other subjects for boundary-spanning knowledge search, absorption, and reconfiguration is considered a critical path to enterprise sustainable innovation. Studying the process of “how boundary-spanning search affects enterprise sustainable innovation” has become an urgent and valuable task. Therefore, based on an innovation search perspective, this study explored the path and mechanism of boundary-spanning search affecting enterprise sustainable innovation, revealed the intermediary effect of capability reconfiguration, and clarified the regulatory role of information technology (IT) governance. We also proposed an integrated model promoting enterprise sustainable innovation process. Using questionnaire data from manufacturing companies in China, this study empirically tested the proposed model hypothesis. The results demonstrated that all boundary-spanning searches (supply-side, demand-side, and cross-regional searches) positively and significantly impacted enterprise sustainable innovation. However, the effects of the search types varied. Capability reconfiguration played a partial intermediary role between boundary-spanning search and enterprise sustainable innovation. IT governance positively moderated the relationship between boundary-spanning search and enterprise capability reconfiguration, particularly between cross-regional search and enterprise capability reconfiguration. This study enriches our understanding of the sustainable innovation process and provides theoretical guidance for enterprises to improve their sustainable innovation performance by effectively using boundary-spanning search strategies.

Influence Mechanism of Organizational Flexibility on Enterprise Competitiveness: The Mediating Role of Organizational Innovation

Organizational success heavily relies on the competitiveness of products and services under rapidly changing market conditions. This enterprise competitiveness becomes more critical for project-based enterprises as modernization of the Chinese construction industry creates greater challenges and uncertainty in construction operations, which determines the sustainable advantages of enterprises to a certain degree. Traditional wisdom focuses on cost efficiency, asset differentiation, and service performance to gain competitive advantages. This paper explores the influence of organizational flexibility and organizational innovation on enterprise competitiveness for Chinese construction organizations. A designed structured questionnaire was developed and conducted targeting the project-based enterprises in China’s construction industry and is accompanied by a structural equation modeling analysis. Results indicate a positive impact of organizational flexibility on enterprise competitiveness along with a mediation role of organizational innovation. The study concludes that new organizational strategies are required for Chinese project-based enterprises to maintain enterprise competitiveness in order to realize the sustainable development of enterprises.

Governmental Intervention and Its Impact on Growth, Economic Development, and Technology in OECD Countries

The governments’ intervention in the economy impacts technological performance and sustainability. This role has become even more critical due to the COVID-19 situation and in the context of the continuous increase in resource consumption, which requires finding alternative solutions. We provide a comprehensive literature review about the state’s economic functions, redistribution of resources in society, and the role of state intervention in sustainability-related issues, giving a full description of the opinions and concepts primarily of economists. We propose to study governments’ interventions in their economy using budgetary resources on public expenditure, highlighting the leading factors in government policies using a suggested intervention index. The state’s intervention policy’s stability is measured via the intervention index’s partial autocorrelation function over the years. We collected data from OECD data sets and conducted a descriptive statistical analysis followed by panel data analysis. Subsequently, two questions are explored about the state’s intervention and its technical performance and technology-related sustainability issues. Results show that economic strength positively affects the intervention. Expenditures on education may lead to better technological outcomes, unlike expenses on health. The tax burden inhibits innovation and technological progress, but total governmental revenues positively affect technological performance.

Mediating Role of Knowledge Management in the Relationship between Organizational Learning and Sustainable Organizational Performance

Organizations operating in the intensive knowledge-based sector seek efficient management approaches and sustainable development practices to perform efficiently in the dynamic business environment. Knowledge management practice and organizational learning are significant factors in order to achieve sustainable organizational performance in a rapidly changing business environment. Based on the scientific literature analysis, there is still a lack of evidence related to the mediating role of the whole knowledge management cycle, including the five knowledge management processes (knowledge acquisition, creation, storage, sharing, and application) in the relationship between organizational learning and sustainable organizational performance for organizations operating in intensive knowledge-based sectors. This study aimed to examine the impact of the whole knowledge management cycle on the relationship between organizational learning and sustainable organizational performance in intensive knowledge-based sectors, specifically the audit and consulting companies in the Middle East region. Systematic scientific literature analysis, expert evaluation (structured questionnaire), and structural equation modeling (SEM) technique were used to develop and verify the research model. Data was collected through a structured questionnaire distributed among auditing experts working in a knowledge-based sector—audit and consulting companies in the Middle East region. The research results supported the hypotheses stating that organizational learning positively affects knowledge acquisition, storage, sharing, application processes, and sustainable organizational performance. However, the results verified that organizational learning has an insignificant impact on the Middle Eastern audit and consulting companies’ knowledge creation process.

Open Innovation 4.0 as an Enhancer of Sustainable Innovation Ecosystems

Innovation matters. Business success increasingly depends upon sustainable innovation. Observing recent innovation best practices, the emergence of a new paradigm is traceable. Creating an innovative ecosystem has a multilayer effect: It contributes to regional digitalization, technological start-up emergence, open innovation promotion, and new policy enhancement retro-feeding the system. Public policy must create open innovation environments accordingly with the quintuple helix harmonizing the ecosystem to internalize emerging spillovers. The public sector should enhance the process, providing accurate legal framework, procurement of innovation, and shared risks in R&D. Opening the locks that confine the trunks of community, academic, industry, and government innovation will harness each dimension exploiting collective and collaborative potential of individuals towards a brighter sustainable future. In this sense, the aim of this study is to present how open innovation can enhance sustainable innovation ecosystems and boost the digital transition. For that, firstly, a diachronic perspective of the sustainable innovation ecosystem is traced, its connection to open innovation, and identification of the university linkages. Secondly, database exploration and econometric estimations are performed. Then, we will ascertain how far open innovation frameworks and in particular the knowledge flows unveiled by the university promote smart and responsible innovation cycles. Lastly, we will propose a policy package towards green governance, empowering the university in governance distributed ecosystem, embedded in the community, self-sustained with shared gains, and a meaningful sense of identity.

Employee voice behavior as a critical factor for organizational sustainability in the telecommunications industry

Organizational effectiveness is contingent upon employees’ contributions; however, the role of employee voice behavior as a critical component of employees’ contribution to the organization has not been sufficiently acknowledged. Based on proactive behavior theory, we present a model to investigate employee voice behavior as an underlying mechanism in the relationship between supervisor delegation and perceived workplace inclusion. Using the SEM (structural equation modeling) method, we test our model’s hypotheses with data from 271 employee-supervisor questionnaires administered in state-owned enterprises in the telecommunications industry. The results show that supervisor delegation is positively related to employees’ promotive and prohibitive voice behavior. Promotive voice significantly influences perceived workplace inclusion, but prohibitive voice behavior was not found to have any impact on perceived workplace inclusion. Moreover, both dimensions of voice behavior, i.e., promotive and prohibitive voice behavior, significantly mediate the relationship between supervisor delegation and perceived workplace inclusion.

Factors Affecting the Use of Balanced Scorecard in Measuring Company Performance

The paper presents the results from the research on the factors influencing the use of the Balanced Scorecard methodology in measuring company performance in the engineering sector. The primary objective of the research was to verify the importance of using non-financial factors in managing businesses in connection to the use of the Balanced Scorecard methodology and to verify the dependence between the use of the given methodology and the lack of human and financial resources for its usage. The research focusing on the given issue was conducted over a period of six months. The research was based on the hypotheses that were verified with statistical methods using the methodology of a Chi-square test. To identify the factors that hinder the usage of the Balanced Scorecard methodology in the addressed enterprises, the method of standard deviation was used. The main result of the research is a finding that there is a statistically significant relationship between the enterprises considering the non-financial indicators and the use of the Balanced Scorecard methodology to be important. This relationship is confirmed also by the calculation using a test with p = 0.0422. The research verified one of the main research goals, i.e., the importance of non-financial indicators in connection to the Balanced Scorecard concept (BSC). Other hypotheses are related to the issue of the lack of human and financial resources. Using the Chi-square test in these cases once again, the study also found out the existence of the dependence between the lack of these resources and the use of the Balanced Scorecard methodology. The final value p = 0.0446 relating to human resources and the value p = 0.0377 relating to financial sources define the barriers as being important in implementing the BSC methodology into corporate practice. These values confirm other research results related to the barriers of using BSC. The presented paper assesses the research results that confirm the importance of using non-financial indicators and define the barriers that hinder this usage. The research contributed to the extension of the knowledge of the BSC concept that we consider being a modern managerial future-oriented tool and supported its implementation in companies so that they could operate within the framework of sustainable development.

An integrated Multi-Criteria Decision Making Model for Sustainability Performance Assessment for Insurance Companies

To stay competitive in a business environment, continuous performance evaluation based on the triple bottom line standard of sustainability is necessary. There is a gap in addressing the computational expense caused by increased decision units due to increasing the performance evaluation indices to more accuracy in the evaluation. We successfully addressed these two gaps through (1) using principal component analysis (PCA) to cut the number of evaluation indices, and (2) since PCA itself has the problem of merely using the data distribution without considering the domain-related knowledge, we utilized Analytic Hierarchy Process (AHP) to rank the indices through the expert’s domain-related knowledge. We propose an integrated approach for sustainability performance assessment in qualitative and quantitative perspectives. Fourteen insurance companies were evaluated using eight economic, three environmental, and four social indices. The indices were ranked by expert judgment though an analytical hierarchy process as subjective weighting, and then principal component analysis as objective weighting was used to reduce the number of indices. The obtained principal components were then used as variables in the data envelopment analysis model. So, subjective and objective evaluations were integrated. Finally, for validating the results, Spearman and Kendall’s Tau correlation tests were used. The results show that Dana, Razi, and Dey had the best sustainability performance.

The Effect of Innovation Capability on Business Performance: A Focus on IT and Business Service Companies

With the introduction of a wide variety of new technologies during the fourth industrial revolution, companies in Korea have attempted to enhance their innovation activities, which include investment in new technology adoption, technical and non-technical innovation factors, and Research & Development (R&D) activity, to ensure the development and growth of their business performance and sustainability. In particular, IT and business services, two important industries in Korea, have been impacted by the development of new technology and have sought to adopt new technologies as soon as possible to survive in a rapidly changing business environment. The aim of our study is to empirically explore the effect of innovation activities on the performance of Korean IT and business service companies. To achieve this aim, we examine the innovation activities and business performance of 160 companies (80 large companies and 80 small- and medium-sized enterprises (SMEs)) in the IT and business service industries in Korea from 2009 to 2017. This study empirically analyzes panel data using fixed effect and random effect models with Hausman tests. According to our results, an improvement in product innovation has a positive impact on business performance (i.e., revenue and labor productivity) in both large companies and SMEs, as does R&D investment, research resources, and company age. However, an improvement in process innovation only has a positive impact on the business performance of large companies, and R&D cooperation only has a positive impact on the business performance of SMEs. As a result, both large companies and SMEs should concentrate on technological innovations to improve their sustainability and thus ensure their success in the long term.

Family Management and Firm Performance in Family SMEs: The Mediating Roles of Management Control Systems and Technological Innovation

The aim of this research is to analyze the mediating role of the use of management control systems (MCS) and the achievement of technological innovation (TI) in the relationship between family management and firm performance in family small and medium-sized enterprises (SMEs). A questionnaire was conducted by 617 managers of family SMEs in Spain, and our model was tested using partial least squares. Our findings show that both MCS and TI play crucial mediating roles in the understanding of the relationship between family management and firm performance. As a result, family-managed firms that utilize MCS and produce TI are much more likely to generate better performance. These results encourage family managers to use formal MCS because in that way they will contribute to obtaining better firm performance, directly and indirectly through TI. We focus on private family SMEs, because these specific firms contribute significantly to the economies worldwide. This paper contributes to resolve the controversy regarding the relationship between family management and firm performance introducing MCS and TI as mediating factors.