Search results for: manufacturing companies

Authors: Ibrahim Bashir, Yahaya Y. Yusuf

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The ongoing shift towards Industry 4.0 represents a critical growth factor in the industrial enterprise, where the digital transformation of industries is increasingly seen as a crucial element for competitiveness. This transformation holds substantial potential, yet its full benefits have yet to be realized due to the fragmented approach to introducing Industry 4.0 technologies. Therefore, this pilot study aims to explore the individual and collective impact of Industry 4.0 technologies and digital transformation on organizational performance. Data were collected through a questionnaire-based survey across 51 companies in the manufacturing industry in the United Kingdom. The correlations and multiple linear regression analyses were conducted to assess the relationship and impact between the variables in the study. The results show that Industry 4.0 and digital transformation positively influence organizational performance and that Industry 4.0 technologies positively influence digital transformation. The results of this pilot study indicate that the implementation of Industry 4.0 technology is vital for increasing organizational performance; however, their roles differ largely. The differences are manifest in how the types of Industry 4.0 technologies correlate with how organizations integrate digital technologies into their operations. Hence, there is a clear indication of a strong correlation between Industry 4.0 technology, digital transformation, and organizational performance. Consequently, our study presents numerous pertinent implications that propel the theory of I4.0, digital business transformation (DBT), and organizational performance forward, as well as guide managers in the manufacturing sector.

Keywords: industry 4.0 technologies, digital transformation, digital integration, organizational performance

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Authors: Rudi Kurniawan Arief

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Manufacturing cost and setup time are the hot topics to improve in Metal Stamping industry because material and components price are always rising up while costumer requires to cut down the component price year by year. The Single Minute Exchange of Die (SMED) is one of many methods to reduce waste in stamping industry. The Japanese Quick Die Change (QDC) dies system is one of SMED systems that could reduce both of setup time and manufacturing cost. However, this system is rarely used in stamping industries. This paper will analyze how deep the QDC dies system could reduce setup time and the manufacturing cost. The research is conducted by direct observation, simulating and comparing of QDC dies system with conventional dies system. In this research, we found that the QDC dies system could save up to 35% of manufacturing cost and reduce 70% of setup times. This simulation proved that the QDC die system is effective for cost reduction but must be applied in several parallel production processes.

Keywords: press die, metal stamping, QDC system, single minute exchange die, manufacturing cost saving, SMED

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Authors: Parth Prajapati, A. R. Srinivas

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The purpose of this paper is to validate the concept of the Lotus Mechanism using Computer Aided Engineering (CAE) tools considering the statics and dynamics through actual time dependence involving inertial forces acting on the mechanism joints. For a 1.2 m mirror made of hexagonal segments, with simple harnesses and three-point supports, the maximum diameter is 400 mm, minimum segment base thickness is 1.5 mm, and maximum rib height is considered as 12 mm. Manufacturing challenges are explored for the segments using manufacturing research and development approaches to enable use of large lightweight mirrors required for the future space system.

Keywords: dynamics, manufacturing, reflectors, segmentation, statics

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Authors: Kadrefi Athanasia, Fronimaki Evgenia, Mavri Maria

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3D Printing (3DP) is a distinct, disruptive technology that belongs to a wider group of manufacturing technologies, Additive Manufacturing (AM). In 3DP, a custom digital file turns into a solid object using a single computer and a 3D printer. Among multiple advantages, 3DP offers production with fewer steps compared to conventional manufacturing, lower production costs, and customizable designs. 3DP can be performed by several techniques, while the most common is Fused Deposition Modeling (FDM). FDM belongs to a wider group of AM techniques, material extrusion, where a digital file converts into a solid object using raw material (called filament) melted in high temperatures. As in most manufacturing procedures, environmental issues have been raised here, too. This study aims to review the literature on issues that determine technical and mechanical factors that affect the sustainability and resilience of a final 3D-printed object. The research focuses on the collection of papers that deal with 3D printing techniques and use keywords or phrases like ‘3D printed objects’, ‘factors of 3DP sustainability’, ‘waste materials,’ ‘infill patterns,’ and ‘support structures.’ After determining factors, a pilot survey will be conducted at the 3D Printing Lab in order to define the significance of each factor in the final 3D printed object.

Keywords: additive manufacturing, 3D printing, sustainable manufacturing, sustainable production

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Authors: Natalia Feruleva

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The goal of this paper is to develop the fraud risk assessment model basing on both relational and financial data and test the impact of the relationships between Russian non-public companies on the likelihood of financial fraud commitment. Relationships mean various linkages between companies such as parent-subsidiary relationship and person-related relationships. These linkages may provide additional opportunities for committing fraud. Person-related relationships appear when firms share a director, or the director owns another firm. The number of companies belongs to CEO and managed by CEO, the number of subsidiaries was calculated to measure the relationships. Moreover, the dummy variable describing the existence of parent company was also included in model. Control variables such as financial leverage and return on assets were also implemented because they describe the motivating factors of fraud. To check the hypotheses about the influence of the chosen parameters on the likelihood of financial fraud, information about person-related relationships between companies, existence of parent company and subsidiaries, profitability and the level of debt was collected. The resulting sample consists of 160 Russian non-public firms. The sample includes 80 fraudsters and 80 non-fraudsters operating in 2006-2017. The dependent variable is dichotomous, and it takes the value 1 if the firm is engaged in financial crime, otherwise 0. Employing probit model, it was revealed that the number of companies which belong to CEO of the firm or managed by CEO has significant impact on the likelihood of financial fraud. The results obtained indicate that the more companies are affiliated with the CEO, the higher the likelihood that the company will be involved in financial crime. The forecast accuracy of the model is about is 80%. Thus, the model basing on both relational and financial data gives high level of forecast accuracy.

Keywords: financial fraud, fraud prediction, non-public companies, regression analysis, relational data

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Authors: Pankaj Prashar, Bimlesh Kumar, Ankita Sood, Anamika Gautam

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Pharmacovigilance (PV) is a rapidly growing discipline in pharmaceutical industries as an integral part of clinical research and drug development over the past few decades. PV carries a breadth of scope from drug manufacturing to its regulation with safer utilization. The fundamental steps of PV not only includes data collection and verification, coding of drugs with adverse drug reactions, causality assessment and timely reporting to the authorities but also monitoring drug manufacturing, safety issues, product quality and conduction of due diligence. Standardization of adverse event information, collaboration of multiple departments in different companies, preparation of documents in accordance to both governmental as well as non-governmental organizations (FDA, EMA, GVP, ICH) are the advancements in discipline of PV. De-harmonization, lack of predictive drug safety models, improper funding by government, non-reporting, and non-acceptability of ADRs by developing countries and reports directly from patients to the monitoring centres respectively are the major road backs of PV. Mandatory pharmacovigilance reporting, frequent inspections, funding by government, educating and training medical students, pharmacists and nurses in this segment can bring about empowerment in PV. This area needs to be addressed with a sense of urgency for the safe utilization of pharmaceuticals.

Keywords: pharmacovigilance, regulatory, adverse event, drug safety

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Authors: Mahdi Mottahedi, Peter Zahn, Armin Lechler, Alexander Verl

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Optimal topology of components leads to the maximum stiffness with the minimum material use. For the generation of these topologies, normally algorithms are employed, which tackle manufacturing limitations, at the cost of the optimal result. The global optimum result with penalty factor one, however, cannot be fabricated with conventional methods. In this article, an additive manufacturing method is introduced, in order to enable the production of global topology optimization results. For a benchmark, topology optimization with higher and lower penalty factors are performed. Different algorithms are employed in order to interpret the results of topology optimization with lower factors in many microstructure layers. These layers are then joined to form the final geometry. The algorithms’ benefits are then compared experimentally and numerically for the best interpretation. The findings demonstrate that by implementation of the selected algorithm, the stiffness of the components produced with this method is higher than what could have been produced by conventional techniques.

Keywords: topology optimization, additive manufacturing, 3D-printer, laminated object manufacturing

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Authors: Mehrnoosh Askarizadeh

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People, process and IT are the most important assets of any organization. Optimal utilization of these resources has been the question of research in business for many decades. The business world have responded by inventing various methodologies that can be used for addressing problems of quality improvement, efficiency of processes, continuous improvement, reduction of waste, automation, strategy alignments etc. Some of these methodologies can be commonly called as Business Process Quality Management methodologies (BPQM). In essence, the first references to the process management can be traced back to Frederick Taylor and scientific management. Time and motion study was addressed to improvement of manufacturing process efficiency. The ideas of scientific management were in use for quite a long period until more advanced quality management techniques were developed in Japan and USA. One of the first prominent methods had been Total Quality Management (TQM) which evolved during 1980’s. About the same time, Six Sigma (SS) originated at Motorola as a separate method. SS spread and evolved; and later joined with ideas of Lean manufacturing to form Lean Six Sigma. In 1990’s due to emerging IT technologies, beginning of globalization, and strengthening of competition, companies recognized the need for better process and quality management. Business Process Management (BPM) emerged as a novel methodology that has taken all this into account and helped to align IT technologies with business processes and quality management. In this article we will study various aspects of above mentioned methods and identified their relations.

Keywords: e-process, quality, TQM, BPM, lean, six sigma, CPI, information technology, management

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Authors: Sahar S. Tabrizi, Dogan Ibrahim

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Cloud Computing is a convenient model for on-demand networks that uses shared pools of virtual configurable computing resources, such as servers, networks, storage devices, applications, etc. The cloud serves as an environment for companies and organizations to use infrastructure resources without making any purchases and they can access such resources wherever and whenever they need. Cloud computing is useful to overcome a number of problems in various Information Technology (IT) domains such as Geographical Information Systems (GIS), Scientific Research, e-Governance Systems, Decision Support Systems, ERP, Web Application Development, Mobile Technology, etc. Companies can use Cloud Computing services to store large amounts of data that can be accessed from anywhere on Earth and also at any time. Such services are rented by the client companies where the actual rent depends upon the amount of data stored on the cloud and also the amount of processing power used in a given time period. The resources offered by the cloud service companies are flexible in the sense that the user companies can increase or decrease their storage requirements or the processing power requirements at any time, thus minimizing the overall rental cost of the service they receive. In addition, the Cloud Computing service providers offer fast processors and applications software that can be shared by their clients. This is especially important for small companies with limited budgets which cannot afford to purchase their own expensive hardware and software. This paper is an overview of the Cloud Computing, giving its types, principles, advantages, and disadvantages. In addition, the paper gives some example engineering applications of Cloud Computing and makes suggestions for possible future applications in the field of engineering.

Keywords: cloud computing, cloud systems, cloud services, IaaS, PaaS, SaaS

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Authors: Hanna Faron, Wojciech Marcinkowski, Daniel Prusak, Władysław Hamiga

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Interest in composite materials comes out of two basic premises: their supreme mechanical and strength properties,combined with a small specific weight. Origin and evolution of modern composite materials bonds with development of manufacturing of synthetic fibers, which have begun during Second World War. Main condition to achieve intended properties of composite materials is proper bonding of reinforcing layer with appropriate adhesive in manufacturing process. It is one of the fundamental quality evaluation criterion of fabrication processes.

Keywords: SAE, formula student, composite materials, carbon fiber, Aramid fiber, hot wire cutter

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Authors: Javad Karimi

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The grain morphology and size of the additively manufactured (AM) aluminium alloys play a vital role in the performance and mechanical properties. AM-fabricated aluminium parts exhibit a relatively coarse microstructure with a columnar morphology. Ceramic nanoparticles, such as Titanium carbide (TiC), have shown great potential to reduce grain size and consequently influence the mechanical properties. In this study, the microstructural and mechanical properties of aluminium parts with TiC nanoparticles will be investigated. AM aluminium components will be fabricated using wire arc additive manufacturing (WAAM). The effect of the addition of TiC nanoparticles with different wt% on the melt pool geometry will be examined, and the obtained results will be compared to those obtained from pure ER5183. The impact of TiC nanoparticles addition in the AM parts will be analyzed comprehensively, and the results will be discussed in detail.

Keywords: additive manufacturing, wire arc additive manufacturing, nanoparticles, grain refinement

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Authors: Andrew Fox, Tao Zhang, Yuanhong Zhao, Qingping Yang

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The furniture manufacturing industry has been slow in general to adopt the latest manufacturing technologies, historically relying heavily upon specialised conventional machinery. This approach not only requires high levels of specialist process knowledge, training, and capital investment but also suffers from significant subtractive manufacturing waste and high logistics costs due to the requirement for centralised manufacturing, with high levels of furniture product not re-cycled or re-used. This paper aims to address the problems by introducing suitable digital manufacturing technologies to create step changes in furniture manufacturing design, as the traditional design practices have been reported as building in 80% of environmental impact. In this paper, a 3D printing robot for furniture manufacturing is reported. The 3D printing robot mainly comprises a KUKA industrial robot, an Arduino microprocessor, and a self-assembled screw fed extruder. Compared to traditional 3D printer, the 3D printing robot has larger motion range and can be easily upgraded to enlarge the maximum size of the printed object. Generative design is also investigated in this paper, aiming to establish a combined design methodology that allows assessment of goals, constraints, materials, and manufacturing processes simultaneously. ‘Matrixing’ for part amalgamation and product performance optimisation is enabled. The generative design goals of integrated waste reduction increased manufacturing efficiency, optimised product performance, and reduced environmental impact institute a truly lean and innovative future design methodology. In addition, there is massive future potential to leverage Single Minute Exchange of Die (SMED) theory through generative design post-processing of geometry for robot manufacture, resulting in ‘mass customised’ furniture with virtually no setup requirements. These generatively designed products can be manufactured using the robot based additive manufacturing. Essentially, the 3D printing robot is already functional; some initial goals have been achieved and are also presented in this paper.

Keywords: additive manufacturing, generative design, robot, sustainability

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Authors: Olivia Borgue, Massimo Panarotto, Ola Isaksson

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This article presents a neural networks-based strategy for reducing the need for support structures when designing for additive manufacturing (AM). Additive manufacturing is a relatively new and immature industrial technology, and the information to make confident decisions when designing for AM is limited. This lack of information impacts especially the early stages of engineering design, for instance, it is difficult to actively consider the support structures needed for manufacturing a part. This difficulty is related to the challenge of designing a product geometry accounting for customer requirements, manufacturing constraints and minimization of support structure. The approach presented in this article proposes an automatized geometry modification technique for reducing the use of the support structures while designing for AM. This strategy starts with a neural network-based strategy for shape recognition to achieve product classification, using an STL file of the product as input. Based on the classification, an automatic part geometry modification based on MATLAB© is implemented. At the end of the process, the strategy presents different geometry modification alternatives depending on the type of product to be designed. The geometry alternatives are then evaluated adopting a QFD-like decision support tool.

Keywords: additive manufacturing, engineering design, geometry modification optimization, neural networks

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Authors: Muktar Haruna

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This research work examines the International Financial Reporting Standard (IFRS) adoption and value relevance of earnings of listed consumer goods companies in the Nigerian. The population of the study comprises 22 listed consumer goods companies, out of which 15 were selected as sample size of the study. The scope of the study is a 12-year period covering from 2006 to 2018. Secondary data from the annual report of sampled companies were used, which consists of earnings per share (EPS), the book value of equity per share (BVE) as independent variables; firm size (FSZ) as a control variable, and market share price of sampled companies from Nigerian stock exchange as dependent variable. Multiple regressions were used to analyze the data. The results of the study showed that IFRS did not improve the value relevance of earnings after the adoption, which translates to a decrease in value relevance of accounting numbers in the post-adoption period. The major recommendation is that the Nigerian Reporting Council should ensure full compliance to all provisions of IFRS and provide uniformity in the presentation of non-current assets in the statement of financial position, where some present only net current assets leaving individual figures for current assets and liabilities invisible.

Keywords: IFRS, adoption, value relevance, earning per share, book value of equity per share

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Authors: Rabiaal Adawiyah Shazali, Corina Joseph

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The disclosure of Intellectual Capital (IC) information is getting more vital in today’s era of a knowledge-based economy. Companies are advised by accounting bodies to enhance IC disclosure which complements the conventional financial disclosures. There are no accounting standards for Intellectual Capital Disclosure (ICD), therefore the disclosure is entirely voluntary. Hence, this study aims to investigate the extent of ICD and to examine the relationship between corporate governance and ICD in Malaysia. This study employed content analysis of 100 annual reports by the top 100 public listed companies in Malaysia during 2012. The uniqueness of this study lies on its underpinning theory used where it applies the institutional isomorphism theory to support the effect of the attributes of corporate governance towards ICD. In order to achieve the stated objective, multiple regression analysis were employed to conduct this study. From the descriptive statistics, it was concluded that public listed companies in Malaysia have increased their awareness towards the importance of ICD. Furthermore, results from the multiple regression analysis confirmed that corporate governance affects the company’s ICD where the frequency of audit committee meetings and the board size has positively influenced the level of ICD in companies. Findings from this study would provide an incentive for companies in Malaysia to enhance the disclosure of IC. In addition, this study would assist Bursa Malaysia and other regulatory bodies to come up with a proper guideline for the disclosure of IC.

Keywords: annual report, content analysis, corporate governance, intellectual capital disclosure

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Authors: L. Feleagă, M. Dumitrașcu, N. Feleagă

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This article is a research on corporate governance. The aim of the study is to focus a special attention on the importance of corporate social responsibility and corporate governance, which are relevant, indeed necessary, for organizations. In this regard, we analyzed the corporate social responsibility in the context of corporate governance for companies listed on Bucharest and Bombay Stock Exchange. Therefore, we bring into the spotlight some differences between India and Romania linked with the importance ascribed to corporate social responsibility of a company. We presented the results of the demarche and we concluded suggestions regarding further research in this area. The study increases the awareness, identifies and articulates desirable behaviors, which are not intended to be exhaustive.

Keywords: corporate governance, corporate social responsibility, disclosure, listed companies

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Authors: Juniarti, Agus Arianto Toly

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This study aims to examine the effect of capital expenditure on the investors’ responses. The respondents were companies with the best stock performance in each sector in 2017. The observation period is 2017 to 2019. Top 10 companies in each sector with the best stock performance in companies listed on the Indonesia Stock Exchange were selected. The main variables are a growth signal which is proxied by growth in capital spending and capital expenditure, and risk and investor response, which is proxied by CAR. Financial performance as measured by ROA is a control variable in this study. The results showed that the signal of growth as measured by capital expenditures responded positively by the market, the risk moderates this influence, companies with high risk will be responded negatively by investors and vice versa. This finding corrects previous findings that only looked at the signal aspect of growth, without linking it to risk. In addition, these findings reinforce the argument that investors buy the future of the company, not a momentary financial performance. This can be seen from the absence of ROA influence on investor response. This study found that companies need to manage risk appropriately, because the risk aspect of the company is a crucial factor for investors. High risks will eliminate the benefits of strategic decisions in this case in the form of capital expenditures.

Keywords: capital expenditure, growth signals, investor response, risk

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Authors: Tareq Issa

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Lean manufacturing is concerned with the implementation of several tools and methodologies that aim for the continuous elimination of wastes throughout manufacturing process flow in the production system. This research addresses the implementation of lean principles and tools in a small-medium industry focusing on 'fused' plastic bags production company in Amman, Jordan. In this production operation, the major type of waste to eliminate include material, waiting-transportation, and setup wastes. The primary goal is to identify and implement selected lean strategies to eliminate waste in the manufacturing process flow. A systematic approach was used for the implementation of lean principles and techniques, through the application of Value Stream Mapping analysis. The current state value stream map was constructed to improve the plastic bags manufacturing process through identifying opportunities to eliminate waste and its sources. Also, the future-state value stream map was developed describing improvements in the overall manufacturing process resulting from eliminating wastes. The implementation of VSM, 5S, Kanban, Kaizen, and Reduced lot size methods have provided significant benefits and results. Productivity has increased to 95.4%, delivery schedule attained at 99-100%, reduction in total inventory to 1.4 days and the setup time for the melting process was reduced to about 30 minutes.

Keywords: lean implementation, plastic bags industry, value stream map, process flow

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Authors: M. El Mousadik, F. Elkandoussi

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The concern for increased rigor in social management has led more and more Moroccan business leaders to question the value of applying social audit as an essential tool in the management of human resources. Hotel companies are not excluded; in fact, they are expected to implement such an audit to develop sound and credible human resources management (HRM) policies. The main objective of this paper is to establish the relationship between the practice of social audit as a tool, and its impact on the tourism sector, especially on hotels at one of the Morocco’s first and most popular city for tourism, Agadir. This exploratory study of properties in Agadir has revealed that hotel executives are aware of the importance of social auditing to hone their decisions in the field of HRM.

Keywords: social audit, hotel companies, human resources management, social piloting

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Authors: Badrane Nohayla, Bamousse Zineb

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Financial crises, exchange rate volatility, fluctuations in commodity prices, increased competitive pressures, and environmental issues are all threats that businesses face. In light of these diverse challenges, proactive, agile, and innovative cash management becomes an indispensable financial shield, allowing companies to thrive despite the adverse conditions of the global environment. In the same spirit, uncertainty, turbulence, volatility, and competitiveness continue to disrupt economic environments, compelling companies to swiftly master innovative breakthroughs that provide added value. In such a context, innovation emerges as a catalytic vector for performance, aiming to reduce costs, strengthen growth, and ultimately ensure the sustainability of Moroccan companies in the national arena. Moreover, innovation in treasury management promises to be one of the key pillars of financial stability, enabling companies to navigate the tumultuous waters of a globalized environment. Therefore, the objective of this study is to better understand the impact of innovative treasury management on cost optimization and, by extension, performance improvement. To elucidate this relationship, we conducted an exploratory qualitative study with 20 large Moroccan companies operating in the Casablanca-Settat region. The results highlight that innovation at the heart of treasury management is a guarantee of sustainability against the risks of failure and stands as a true pivot of the performance of Moroccan companies, an important parameter of their financial balance and a catalytic vector of their growth in the national economic landscape. In this regard, the present study aims to explore the extent to which innovation at the core of the treasury function serves as an indispensable tool for boosting performance while optimising costs in large Moroccan companies.

Keywords: innovative cash management, artificial intelligence, financial performance, risk management, cost savings

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Authors: T. H. Bitebe, T. M. Lima, F. Charrua-Santos, C. J. Matias Oliveira

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This study aims to present a proposal for an economic integration model for the development of the manufacturing industry in Cabinda, Angola. It seeks to analyze the degree of economic integration of Cabinda and the dynamics of the manufacturing industry. Therefore, in the same way, to gather information to support the decision-making for public financing programs that will aim at the disengagement of the manufacturing industry in Angola and Cabinda in particular. The Cabinda Province is the 18^th of Angola, the enclave is located in a privileged area of the African and arable land.

Keywords: economic integration, industrial development, Cabinda industry, Angola

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Authors: Amit Kumar Dwivedi, Priyanko Ghosh

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Data Envelopment analysis (DEA) has been used to calculate the technical and scale efficiency measures of the public and private sugar manufacturing firms of the Indian Sugar Industry (2006 to 2010). Within DEA framework, the input & Output oriented Variable Returns to Scale (VRS) & Constant Return to Scale (CRS) model is employed for the study of Decision making units (DMUs). A representative sample of 43 firms which account for major portion of the total market share is studied. The selection criterion for the inclusion of a firm in the analysis was the total sales of INR 5,000 million or more in the year 2010. After reviewing the literature it is found that no study has been conducted in the context of Indian sugar manufacturing firms in the Post-liberalization era which motivates us to initiate the study.

Keywords: technical efficiency, Indian sugar manufacturing units, DEA, input output oriented

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Authors: Sahar Jami, Iman Valizadeh

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The purpose of the study: The aim of this study was to evaluate the influence of culture on the choice of capital structure management companies are listed in the Tehran Stock Exchange. Methods: This study was a cross-document using data after the event (Retrospective) in 1394 was performed. To select a sample of elimination sampling (screening) is used to determine the sample size was 123 companies. Results: The results showed that the variables of culture, return on equity, a significant positive impact on the capital structure (ROA, QTobins) and financial leverage and firm size variables and a significant negative impact on the capital structure (ROA, QTobins).

Keywords: culture management, capital structure, ROA, QTobins, variables of culture

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Authors: Zeynep Şahin, Züleyha Yılmaz, Fikret Çankaya

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In today's business world, in which it is difficult to survive, the economic life of products, services or knowledge is considerably reduced. Competitors produce similar products or extra-featured ones instantly. In this environment, the contribution of companies to the social and economic environment is a preferred criterion by consumers alongside products or services. Therefore, consumers need to obtain more detailed information about companies. Besides, this drastic change in the market encourages companies to become sustainable. Sustainable business means the company puts consumed products back. Corporate sustainability, corresponds to sustainability at the level of the company, and gives equal importance to company growth and profitability together with environmental and social issues. The BIST Sustainability Index started to be calculated by the Istanbul Stock Exchange (BIST) in 2014 to evaluate the sustainability performance of companies in Turkey. The main objective of this study is to present the importance of sustainability reports in Turkey. To this aim, the performances of 15 companies in the BIST Sustainability Index were compared the periods before and after entering the index. On the other hand, sustainability reporting practices should be encouraged to increase studies on this issue. In this context, to remain on the agenda of the issue is a further objective of this study. To achieve these objectives, the financial data of the companies in the period before and after entering to the BIST Sustainability Index were analyzed using t-test in Statistical Package for the Social Sciences (SPSS) package. The results of the study showed that no significant difference between the performances of the companies in terms of the net profit margin, the return on assets and equity capital in these periods could be found. Therefore, it can be said that insufficient importance is given to sustainability issues in Turkey. The reasons for this situation might be considered as a lack of awareness due to the recent introduction and calculation of the index. It is expected that the awareness of firms and investors about sustainability will increase, and that they will demonstrate the necessary importance to this issue over time.

Keywords: sustainability reporting, sustainability index, firm performance, BIST sustainability index

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Authors: Edward C. W. Chan, Benny C. F. Cheung

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In the knowledge economy, the financial indicator is not the unique instrument to gauge the performance of a company. The role of intellectual capital contributing to the company performance is increasing. To measure the company performance due to intellectual capital, the value-added intellectual capital (VAIC) model is adopted to measure the intellectual capital utilisation efficiency of the subject companies. The purpose of this study is to review the readiness of measuring intellectual capital for the Hong Kong listed companies in the property development and property investment industry by using VAIC model. This study covers the financial reports from the representative Hong Kong listed property development companies and property investment companies in the period 2014-2019. The findings from this study indicated the industry is ready for IC measurement employing VAIC framework but not yet ready for using the extended VAIC model.

Keywords: intellectual capital, intellectual capital measurement, property development, property investment, Skandia navigator, VAIC

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Authors: Hideaki Endo, Mika Goto

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The global outbreak of the COVID-19 pandemic has seriously affected railway businesses. The number of railway passengers decreased due to the decline in the number of commuters and business travelers to avoid crowded trains and a sharp drop in inbound tourists visiting Japan. This has affected not only railway businesses but also related businesses, including hotels, leisure businesses, and retail businesses at station buildings. In 2021, the companies were divided into profitable and loss-making companies. This division suggests that railway companies, particularly loss-making companies, needed to decrease operational inefficiency. To measure the impact of COVID-19 and discuss the sustainable management strategies of railway companies, we examine the cost inefficiency of Japanese listed railway companies by applying stochastic frontier analysis (SFA) to their operational and financial data. First, we employ the stochastic frontier cost function approach to measure inefficiency. The cost frontier function is formulated as a Cobb–Douglas type, and we estimated parameters and variables for inefficiency. This study uses panel data comprising 26 Japanese-listed railway companies from 2005 to 2020. This period includes several events deteriorating the business environment, such as the financial crisis from 2007 to 2008 and the Great East Japan Earthquake of 2011, and we compare those impacts with those of the COVID-19 pandemic after 2020. Second, we identify the characteristics of the best-practice railway companies and examine the drivers of cost inefficiencies. Third, we analyze the factors influencing cost inefficiency by comparing the profiles of the top 10 railway companies and others before and during the pandemic. Finally, we examine the relationship between cost inefficiency and the implementation of efficiency measures for each railway company. We obtained the following four findings. First, most Japanese railway companies showed the lowest cost inefficiency (most efficient) in 2014 and the highest in 2020 (least efficient) during the COVID-19 pandemic. The second worst occurred in 2009 when it was affected by the financial crisis. However, we did not observe a significant impact of the 2011 Great East Japan Earthquake. This is because no railway company was influenced by the earthquake in this operating area, except for JR-EAST. Second, the best-practice railway companies are KEIO and TOKYU. The main reason for their good performance is that both operate in and near the Tokyo metropolitan area, which is densely populated. Third, we found that non-best-practice companies had a larger decrease in passenger kilometers than best-practice companies. This indicates that passengers made fewer long-distance trips because they refrained from inter-prefectural travel during the pandemic. Finally, we found that companies that implement more efficiency improvement measures had higher cost efficiency and they effectively used their customer databases through proactive DX investments in marketing and asset management.

Keywords: COVID-19 pandemic, stochastic frontier analysis, railway sector, cost efficiency

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Authors: Jing-Ma

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Digital transformation (DT) is an important way for manufacturing enterprises to shape new competitive advantages, and how to choose an effective DT strategy is crucial for enterprise growth and sustainable development. Rooted in strategic change theory, this paper incorporates the dimensions of managers' digital cognition, organizational conditions, and external environment into the same strategic analysis framework and integrates the dynamic QCA method and PSM method to study the antecedent grouping of the DT strategy mode of manufacturing enterprises and its impact on corporate profitability based on the data of listed manufacturing companies in China from 2015 to 2019. We find that the synergistic linkage of different dimensional elements can form six equivalent paths of high-level DT, which can be summarized as the proactive change mode of resource-capability dominated as well as adaptive response mode such as industry-guided resource replenishment. Capacity building under complex environments, market-industry synergy-driven, forced adaptation under peer pressure, and the managers' digital cognition play a non-essential but crucial role in this process. Except for individual differences in the market industry collaborative driving mode, other modes are more stable in terms of individual and temporal changes. However, it is worth noting that not all paths that result in high levels of DT can contribute to enterprise profitability, but only high levels of DT that result from matching the optimization of internal conditions with the external environment, such as industry technology and macro policies, can have a significant positive impact on corporate profitability.

Keywords: digital transformation, strategy mode, enterprise profitability, dynamic QCA, PSM approach

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Authors: Enrique Claver Cortés, Bartolomé Marco Lajara, Eduardo Sánchez García, Pedro Seva Larrosa, Encarnación Manresa Marhuenda, Lorena Ruiz Fernández, Esther Poveda Pareja

Abstract:

In recent decades, the analysis of the effects of clustering as an essential factor for the development of innovations and the competitiveness of enterprises has raised great interest in different areas. Nowadays, companies have access to almost all tangible and intangible resources located and/or developed in any country in the world. However, despite the obvious advantages that this situation entails for companies, their geographical location has shown itself, increasingly clearly, to be a fundamental factor that positively influences their innovative performance and competitiveness. Industrial clusters could represent a unique level of analysis, positioned between the individual company and the industry, which makes them an ideal unit of analysis to determine the effects derived from company membership of a cluster. Also, the absorptive capacity (hereinafter 'AC') can mediate the process of innovation development by companies located in a cluster. The transformation and exploitation of knowledge could have a mediating effect between knowledge acquisition and innovative performance. The main objective of this work is to determine the key factors that affect the degree of generation and use of knowledge from the environment by companies and, consequently, their innovative performance and competitiveness. The elements analyzed are the companies' membership of a cluster and the AC. To this end, 30 most relevant papers published on this subject in the "Web of Science" database have been reviewed. Our findings show that, within a cluster, the knowledge coming from the companies' environment can significantly influence their innovative performance and competitiveness, although in this relationship, the degree of access and exploitation of the companies to this knowledge plays a fundamental role, which depends on a series of elements both internal and external to the company.

Keywords: absorptive capacity, clusters, innovation, knowledge

Procedia PDF Downloads 130

Authors: Hadi Mousavi, Majid Davoudi Nasr

Abstract:

Executives can maximize profits by recognizing the factors that affect investment and using them to obtain the optimal level of investment. Inefficient markets have shortcomings that can impact the optimal level of investment, leading to the process of over-investment or under-investment. In the present study, the relationship between the overconfidence of senior managers and abnormal cash fluctuations with respect to financial flexibility in companies listed in the Tehran stock exchange from 2009 to 2013 were evaluated. In this study, the sample consists of 84 companies selected by a systematic elimination method and 420 year-companies in total. In this research, EVIEWS software was used to test the research hypotheses by linear regression and correlation coefficient and after designing and testing the research hypothesis. After designing and testing research hypotheses that have been used to each hypothesis, it was concluded that there was a significant relationship between the overconfidence of senior managers and abnormal cash fluctuations, and this relationship was not significant at any level of financial flexibility. Moreover, the findings of the research showed that there was a significant relationship between senior manager’s overconfidence and positive abnormal cash flow fluctuations in firms, and this relationship is significant only at the level of companies with high financial flexibility. Finally, the results indicate that there is no significant relationship between senior managers 'overconfidence and negative cash flow abnormalities, and the relationship between senior managers' overconfidence and negative cash flow fluctuations at the level of companies with high financial flexibility was confirmed.

Keywords: abnormal cash fluctuations, overconfidence of senior managers, financial flexibility, accounting

Procedia PDF Downloads 130

Authors: M. Ramadan, B. Salah

Abstract:

This paper introduces a framework to digitalize lean manufacturing tools to enhance smart lean-based manufacturing environments or Lean 4.0 manufacturing systems. The paper discusses the integration between lean tools and the powerful features of recent real-time data capturing systems with the help of Information and Communication Technologies (ICT) to develop an intelligent real-time monitoring and controlling system of production operations concerning lean targets. This integration is represented in the Lean 4.0 system called Dynamic Value Stream Mapping (DVSM). Moreover, the paper introduces the practice of Radio Frequency Identification (RFID) and ICT to smartly support lean tools and practices during daily production runs to keep the lean system alive and effective. This work introduces a practical description of how the lean method tools 5S, standardized work, and poka-yoke can be digitalized and smartly monitored and controlled through DVSM. A framework of the three tools has been discussed and put into practice in a German switchgear manufacturer.

Keywords: lean manufacturing, Industry 4.0, radio frequency identification, value stream mapping

Procedia PDF Downloads 225