Search results for: organizational profitability
Commenced in January 2007
Frequency: Monthly
Edition: International
Paper Count: 1615

Search results for: organizational profitability

1615 Effects of Employees’ Training Program on the Performance of Small Scale Enterprises in Oyo State

Authors: Itiola Kehinde Adeniran

Abstract:

The study examined the effect of employees’ training on the performance of small scale enterprises in Oyo State. A structured questionnaire was used to collect data from 150 respondents through purposive sampling method. Linear regression was used with the aid of statistical package for social science (SPSS) version 20 to analyze the data collected in order to examine the effect of independent variable, employees’ training on dependent variable, performance (profit) of small scale enterprises. The result revealed that employees’ training has a significant effect on the performance of small scale enterprises. It was concluded that predictor variable namely (training) is 55.5% variance of enterprises performance (profitability). Therefore, the paper recommended that all small scale enterprises in Nigeria should embrace manpower training and development in order to improve employees’ performance leading to organizational profitability.

Keywords: training, employee performance, small scale enterprise, organizational profitability

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1614 Working Capital Management and Profitability of Uk Firms: A Contingency Theory Approach

Authors: Ishmael Tingbani

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This paper adopts a contingency theory approach to investigate the relationship between working capital management and profitability using data of 225 listed British firms on the London Stock Exchange for the period 2001-2011. The paper employs a panel data analysis on a series of interactive models to estimate this relationship. The findings of the study confirm the relevance of the contingency theory. Evidence from the study suggests that the impact of working capital management on profitability varies and is constrained by organizational contingencies (environment, resources, and management factors) of the firm. These findings have implications for a more balanced and nuanced view of working capital management policy for policy-makers.

Keywords: working capital management, profitability, contingency theory approach, interactive models

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1613 Investigation of Relationship between Organizational Climate and Organizational Citizenship Behaviour: A Research in Health Sector

Authors: Serdar Öge, Pinar Ertürk

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The main objective of this research is to describe the relationship between organizational climate and organizational citizenship behavior. In order to examine this relationship, a research is intended to be carried out in relevant institutions and organizations operating in the health sector in Turkey. It will be found whether there is a statistically significant relationship between organizational climate and organizational citizenship behavior through elated scientific research methods and statistical analysis. In addition, elationships between the dimensions of organizational climate and organizational citizenship behavior subscales will be questioned statistically.

Keywords: organizational climate, organizational citizenship, organizational citizenship behavior, climate

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1612 Banks Profitability Indicators in CEE Countries

Authors: I. Erins, J. Erina

Abstract:

The aim of the present article is to determine the impact of the external and internal factors of bank performance on the profitability indicators of the CEE countries banks in the period from 2006 to 2012. On the basis of research conducted abroad on bank and macroeconomic profitability indicators, in order to obtain research results, the authors evaluated return on average assets (ROAA) and return on average equity (ROAE) indicators of the CEE countries banks. The authors analyzed profitability indicators of banks using descriptive methods, SPSS data analysis methods as well as data correlation and linear regression analysis. The authors concluded that most internal and external indicators of bank performance have no direct effect on the profitability of the banks in the CEE countries. The only exceptions are credit risk and bank size which affect one of the measures of bank profitability–return on average equity.

Keywords: banks, CEE countries, profitability ROAA, ROAE

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1611 Impact of Working Capital Management Strategies on Firm's Value and Profitability

Authors: Jonghae Park, Daesung Kim

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The impact of aggressive and conservative working capital‘s strategies on the value and profitability of the firms has been evaluated by applying the panel data regression analysis. The control variables used in the regression models are natural log of firm size, sales growth, and debt. We collected a panel of 13,988 companies listed on the Korea stock market covering the period 2000-2016. The major findings of this study are as follow: 1) We find a significant negative correlation between firm profitability and the number of days inventory (INV) and days accounts payable (AP). The firm’s profitability can also be improved by reducing the number of days of inventory and days accounts payable. 2) We also find a significant positive correlation between firm profitability and the number of days accounts receivable (AR) and cash ratios (CR). In other words, the cash is associated with high corporate profitability. 3) Tobin's analysis showed that only the number of days accounts receivable (AR) and cash ratios (CR) had a significant relationship. In conclusion, companies can increase profitability by reducing INV and increasing AP, but INV and AP did not affect corporate value. In particular, it is necessary to increase CA and decrease AR in order to increase Firm’s profitability and value.

Keywords: working capital, working capital management, firm value, profitability

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1610 The Liability of Renewal: The Impact of Changes in Organizational Capability, Performance, Legitimacy and Pressure for Change

Authors: Alshehri Sultan

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Organizational change has remained an important subject for many researchers in the field of organizations theory. We propose the importance of organizational liability of renewal through a model that examines how an organization can overcome potential rigidities in organizational capabilities from learning by changing capabilities. We examine whether an established organization can overcome liability of renewal by changes in organizational capabilities and how the organizational renewal process reflect on the balance between the dynamic aspect of organizational learning as demonstrated by changes in capabilities and the stabilizing aspects of organizational inertia. We found both positive relationship between organizational learning and performance, and between legitimacy and performance. Performance and legitimacy have, however, a negative relationship on the pressure for change.

Keywords: organizational capabilities, organizational liability, liability of renewal, pressure for change

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1609 How Information Sharing Can Improve Organizational Performance?

Authors: Syed Abdul Rehman Khan

Abstract:

In today’s world, information sharing plays a vital role in successful operations of supply chain; and boost to the profitability of the organizations (end-to-end supply chains). Many researches have been completed over the role of information sharing in supply chain. In this research article, we will investigate the ‘how information sharing can boost profitability & productivity of the organization; for this purpose, we have developed one conceptual model and check to that model through collected data from companies. We sent questionnaire to 369 companies; and will filled form received from 172 firms and the response rate was almost 47%. For the data analysis, we have used Regression in (SPSS software) In the research findings, our all hypothesis has been accepted significantly and due to the information sharing between suppliers and manufacturers ‘quality of material and timely delivery’ increase and also ‘collaboration & trust’ will become more stronger and these all factors will lead to the company’s profitability directly and in-directly. But unfortunately, companies could not avail the all fruitful benefits of information sharing due to the fear of ‘compromise confidentiality or leakage of information’.

Keywords: collaboration, information sharing, risk factor, timely delivery

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1608 The Effect of Organizational Commitment and Burn out on Organizational Cynicism: A Field Study in the Healthcare Industry

Authors: Aykut Bedük, Kemalettin Eryeşil, Osman Eşmen

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The aim of this study is to examine the relationship between organizational commitment which is defined as a strong belief in and acceptance of the organization’s goals and values, and burnout syndrome and organizational cynicism. Accordingly, a field research based on survey method was conducted on the employees of a health institution operating in the province of Konya. The findings of the research show that there is a positive statistically significant relationship between organizational cynicism and burnout while there is a negative statistically significant relationship between organizational commitment and burnout. Furthermore, it has been also realized that there is a negative and statistically significant relationship between organizational commitment and organizational cynicism.

Keywords: burnout, organizational commitment, organizational cynicism, healthcare management

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1607 Ingratiation as a Moderator of the Impact of the Perception of Organizational Politics on Job Satisfaction

Authors: Triana Fitriastuti, Pipiet Larasatie, Alex Vanderstraten

Abstract:

Many scholars have demonstrated the negative impacts of the perception of organizational politics on organizational outcomes. The model proposed in this study analyzes the impact of the perception of organizational politics on job satisfaction. In the same way, ingratiation as a moderator variable is tested. We applied regression analysis to test the hypothesis. The findings of the current research, which was conducted with 240 employees in the public sector in Indonesia, show that the perception of organizational politics has a negative effect on job satisfaction. In contrast, ingratiation plays a role that fully moderates the relationship between organizational politics and organizational outcomes and changes the correlation between the perception of organizational politics on job satisfaction. Employees who use ingratiation as a coping mechanism tend to do so when they perceive a high degree of organizational politics.

Keywords: ingratiation, impression management, job satisfaction, perception of organizational politics

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1606 The Effect of Change Communication towards Commitment to Change through the Role of Organizational Trust

Authors: Enno R. Farahzehan, Wustari L. Mangundjaya

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Organizational change is necessary to develop innovation and to compete with other competitors. Organizational changes were also made to defend the existence of the organization itself. Success in implementing organizational change consists of a variety of factors, one of which is individual (employee) who run changes. The employee must have the willingness and ability in carrying out the changes. Besides, employees must also have a commitment to change for creation of the successful organizational change. This study aims to execute the effect of change communication towards commitment to change through the role of organizational trust. The respondents of this study were employees who work in organizations, which have been or are currently running organizational changes. The data were collected using Change Communication, Commitment to Change, and Organizational Trust Inventory. The data were analyzed using regression. The result showed that there is an effect among change communication towards commitment to change which is higher when mediated by organizational trust. This paper will contribute to the knowledge and implications of organizational change, that shows change communication can affect commitment to change among employee if there is trust in the organization.

Keywords: change communication, commitment to change, organizational trust, organizational change

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1605 The Relationship between Inventory Management and Profitability: A Comparative Research on Turkish Firms Operated in Weaving Industry, Eatables Industry, Wholesale and Retail Industry

Authors: Gamze Sekeroglu, Mikail Altan

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Working capital is identified as firm’s all current assets. Inventories which are one of the working capital elements are very important among current assets for firms. Because, profitability is an indicator for firms’ financial success is provided with minimum cost and optimum inventory quantity. So in this study, it is investigated as comparatively that the effect of inventory management on the profitability of Turkish firms which operated in weaving industry, eatables industry, wholesale and retail industry in between 2003 – 2012 years. Research data consist of profitability ratios and inventory turnovers ratio calculated by using balance sheets and income statements of firms which operated in Borsa Istanbul (BIST). In this research, the relationship between inventories and profitability is investigated by using SPSS-20 software with regression and correlation analysis. The results achieved from three industry departments which exist in study interpreted as comparatively. Accordingly, it is determined that there is a positive relationship between inventory management and profitability in eatables industry. However, it was founded that there is no relationship between inventory management and profitability in weaving industry and wholesale and retail industry.

Keywords: profitability, regression analysis, inventory management, working capital

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1604 Organizational Learning Strategies for Building Organizational Resilience

Authors: Stephanie K. Douglas, Gordon R. Haley

Abstract:

Organizations face increasing disruptions, changes, and uncertainties through the rapid shifts in the economy and business environment. A capacity for resilience is necessary for organizations to survive and thrive in such adverse conditions. Learning is an essential component of an organization's capability for building resilience. Strategic human resource management is a principal component of learning and organizational resilience. To achieve organizational resilience, human resource management strategies must support individual knowledge, skills, and ability development through organizational learning. This study aimed to contribute to the comprehensive knowledge of the relationship between strategic human resource management and organizational learning to build organizational resilience. The organizational learning dimensions of knowledge acquisition, knowledge distribution, knowledge interpretation, and organizational memory can be fostered through human resource management strategies and then aggregated to the organizational level to build resilience.

Keywords: human resource development, human resource management, organizational learning, organizational resilience

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1603 Factors Influencing Bank Profitability of Czech Banks and Their International Parent Companies

Authors: Libena Cernohorska

Abstract:

The goal of this paper is to specify factors influencing the profitability of selected banks. Next, a model will be created to help establish variables that have a demonstrable influence on the development of the selected banks' profitability ratios. Czech banks and their international parent companies were selected for analyzing profitability. Banks categorized as large banks (according to the Czech National Bank's system, which ranks banks according to balance sheet total) were selected to represent the Czech banks. Two ratios, the return on assets ratio (ROA) and the return on equity ratio (ROE) are used to assess bank profitability. Six endogenous and four external indicators were selected from among other factors that influence bank profitability. The data analyzed were for the years 2001 – 2013. First, correlation analysis, which was supposed to eliminate correlated values, was conducted. A large number of correlated values were established on the basis of this analysis. The strongly correlated values were omitted. Despite this, the subsequent regression analysis of profitability for the individual banks that were selected did not confirm that the selected variables influenced their profitability. The studied factors' influence on bank profitability was demonstrated only for Československá Obchodní Banka and Société Générale using regression analysis. For Československá Obchodní Banka, it was demonstrated that inflation level and the amount of the central bank's interest rate influenced the return on assets ratio and that capital adequacy and market concentration influenced the return on equity ratio for Société Générale.

Keywords: banks, profitability, regression analysis, ROA, ROE

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1602 Working Capital Efficiency and Firm Profitability: Nigeria and Kenya

Authors: Lucian J. Pitt

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The primary purpose of this study is to understand the differences in the relationship between working capital management efficiency, working capital investment decisions and working capital finance decisions and the profitability of firms within the context of two African developing economies, Kenya and Nigeria. The study finds that there is a significant difference in the relationship between the firm’s profitability and the working capital variables which suggests different challenges for working capital management in each of these countries.

Keywords: working capital management, working capital investment, working capital finance, profitability, cash conversion cycle

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1601 The Effect of Sustainability Reporting on Company Profitability Using Literature Review Method (Asian Sphere)

Authors: Kesya Terinda Natalie, Marcellina Natasha, Rosinta Ria Panggabean

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Purpose: Over the last few years, the company has been implementing sustainability practices to ensure business continuity. However, there are pros and cons regarding the impact of financial reports if companies provide non-financial reports. So this paper aims to prove what the effect of Sustainability Reporting (SR) has on company profitability, as well as things that can be considered as the decision-making of SR disclosure. Methodology: This paper uses the literature review method to describe the results of published articles concerning Sustainability Reporting and Profitability. This study links and analyzes the essence of 50 previous studies related to SR on company profitability, most of which were conducted in Asia. Therefore this research is limited to only 23 studies in Asia. Findings: Sustainability Reporting does not have a significant impact on company profitability because the SR quality of each company varies based on Agency & Legitimacy Theory considerations. Stakeholders are required to focus not only on profitability but also on the long-term of the company. Thus, it is found that SR is used by companies as a sustainable investment, which can improve overall company performance by reducing capital costs and generating positive company value in increasing reputation capital. Value: This paper focuses on how sustainability reporting affects company profitability, as well as things that can be considered as the decision-making of SR disclosure.

Keywords: sustainability reporting, profitability, agency theory, legitimacy theory

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1600 Profitability of Milkfish Production from Three Mariculture Parks in the Philippines

Authors: Rosie S. Abalos, John Patrick M. Dizon

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The operation of fish cages in mariculture parks for milkfish production remains a lucrative business for aquaculture operators. Three areas in the Philippines where mariculture parks are still in active operation were identified as study sites for this research. Financial analysis was used to estimate profitability of mariculture operations in the selected study sites. Based on the result of this research, milkfish production in mariculture parks remains profitable both in terms of net profit generation and the return on investment. To improve the profitability of aquaculture operations in mariculture parks, the relatively high price of operational inputs should be managed. As a recommendation, further studies should be conducted on the profitability of aquaculture operations in mariculture parks in the country to include other factors which may cause losses on the part of the operator and factors that may affect price of produce upon harvest.

Keywords: mariculture parks, milkfish production, aquaculture, profitability

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1599 The Role of Organizational Trust in the Relationship Between Organizational Justice and Organizational Citizenship Behaviors: A Case Study of Sport Organizations of Tehran Municipality

Authors: Tayebeh Zargar

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The aim of the present research is to study the role of organizational trust in the relationship between organizational justice and organizational citizenship behaviors in sport organizations of Tehran Municipality. The method of this study is correlation and it is based on structural equation modeling. Among all staffs of sport organizations of Tehran Municipality, 150 staff members were selected through random sampling. The data gathering instrument of the study incorporated the Moorman’s (1999) Organizational Justice Questionnaire (OJQ), Ruder’s (2003) Trust Organizational Questionnaire (TOQ), and the Organizational Citizenship Behavior Scale (DiPaola, Tarter, & Hoy, 2005). SEM was utilized to analyze the data. Regarding the relationships between the variables presented in the model, the following results were obtained: organizational justice has significant direct positive effect on organizational trust (β=0.82), and organizational trust itself has significant direct positive effect on citizenship behavior (β=0.65). According to the results, making efforts in order to encourage staff members to participate more in organizational decision-making will influence their condition. Furthermore, paying more attention to organizational justice may cause the staff members to accept the organizational structure and respect the rules, volunteer in supporting the organizational resources, and have active participation in managing organization roles.

Keywords: organizational trust, organizational justice, organizational citizenship behaviors, sport organizations

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1598 Relationship of Organizational Culture, Teacher Psychological Empowerment, and Organizational Citizenship Behavior in Universities in Bangkalan District

Authors: Iqbal Abd. Muhbir Hadi Anam

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The purpose of the study is to discuss the relationship between organizational culture, teacher psychological empowerment, and organizational citizenship behavior at the University of Bangkalan District. The data was obtained using a survey of 100 respondents tested for validity and reliability. The analytical technique used is a hierarchical regression test. The results showed that the organizational culture of the university had a strong influence on the psychological empowerment of teachers and the psychological empowerment of teachers and that the organizational culture and psychological empowerment of teachers provided effective predictions of the psychological empowerment of the university. In addition, organizational culture directly or indirectly influences teachers' organizational citizenship behavior through psychological empowerment. Given these results, universities need to build an organizational culture that reflects the nature of the university.

Keywords: organizational behavior, teacher psychological empowerment, organizational citizenship behavior, universities

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1597 Investors' Ratio Analysis and the Profitability of Listed Firms: Evidence from Nigeria

Authors: Abisola Akinola, Akinsulere Femi

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The stock market has continually been a source of economic development in most developing countries. This study examined the relationship between investors’ ratio analysis and profitability of quoted companies in Nigeria using secondary data obtained from the annual reports of forty-two (42) companies. The study employed the multiple regression technique to analyze the relationship between investors’ ratio analysis (measured by dividend per share and earning per share) and profitability (measured by the return on equity). The results from the analysis show that investors’ ratio analysis, when measured by earnings per share, have a positive and significant impact on profitability. However, the study noted that investors’ ratio analysis, when measured by dividend per share, tend to have a positive impact on profitability but it is statistically insignificant. By implication, investors and other stakeholders that are interested in investing in stocks can predict the earning capacity of listed firms in the stock market.

Keywords: dividend per share, earnings per share, profitability, return on equity

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1596 The Impacts of Cost Stickiness on the Profitability of Indonesian Firms

Authors: Dezie L. Warganegara, Dewi Tamara

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The objectives of this study are to investigate the existence of the sticky cost behaviour of firms listed in the Indonesia Stock Exchange (IDX) and to find an evidence on the effects of sticky operating expenses (SG&A expenses) on profitability of firms. For the first objective, this study found that the sticky cost behaviour does exist. For the second objective, this study finds that the stickier the operating expenses the less future profitability of the firms. This study concludes that sticky cost affects negatively to the performance and, therefore, firms should include flexibility in designing the cost structure of their firms.

Keywords: sticky costs, Indonesia Stock Exchange (IDX), profitability, operating expenses, SG&A

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1595 Perceived Organizational Justice, Trust and Employee Engagement in Bank Managers

Authors: Seemal Mazhar Khan, Tahira Mubashar

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The present research aimed to investigate the relationship in perceived organizational justice, organizational trust and employee engagement in bank employees. It was hypothesized: there is likely to be a relationship in perceived organizational justices, organizational trust and employee engagement; perceived organizational justice and organizational trust are likely to predict employee engagement; there is likely to be effect of bank type and designation on perceived organizational justice, organizational trust and employee engagement. The sample consisted of 150 bank employees (50 from government, 50 from private and 50 from privatized banks) selected from different banks in Lahore, Pakistan. Correlational research design was used to conduct this study. Perceived Organizational Justices Questionnaire, Organizational Trust Questionnaire and Employee Engagement Scale were used for assessment. Pearson product moment correlation, hierarchical regression and multivariate analysis of covariance were applied. Results showed a positive significant relationship in perceived organizational justice and organizational engagement and there were also a positive significant relation between organizational trust and job and organizational engagement. Results showed that organizational trust predicts organizational engagement after controlling the effect of age, marital status and socio-economic status and there is a significant interaction effect of bank type and designation level on organizational trust in bank employees. The findings of the research can serve as a platform for the awareness of important antecedents of employee engagement and organizations can inculcate trust for better and improved engagement of its employees, thereby, enhancing the productivity of their employees.

Keywords: bank employees, organizational engagement, perceived organizational justice, trust

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1594 The Roles of Organizational Culture, Participative Leadership, Employee Satisfaction and Work Motivation Towards Organizational Capabilities

Authors: Inezia Aurelia, Soebowo Musa

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Many firms still fail to develop organizational agility. There are more than 40% of organizations think that they are low/not agile in facing market change. Organizational culture plays an important role in developing the organizations to be adaptive in order to manage the VUCA effectively. This study examines the relationships of organizational culture towards participative leadership, employee satisfaction, employee work motivation, organizational learning, and absorptive capacity in developing organizational agility in managing the VUCA environment. 263 employees located from international chemical-based company offices across the globe who have worked for more than three years were the respondents in this study. This study showed that organizational clan culture promotes the development of participative leadership, which it has an empowering effect on people in the organization resulting in employee satisfaction. The study also confirms the role of organizational culture in creating organizational behavior within the organization that fosters organizational learning, absorptive capacity, and organizational agility, while the study also found that the relationship between participative leadership and employee work motivation is not significant.

Keywords: absorptive capacity, employee satisfaction, employee work motivation, organizational agility, organizational culture, organizational learning, participative leadership

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1593 A Literature Review on Banks’ Profitability and Risk Adjustment Decisions

Authors: Libena Cernohorska, Barbora Sutorova, Petr Teply

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There are pending discussions over an impact of global regulatory efforts on banks. In this paper we present a literature review on the profitability-risk-capital relationship in banking. Research papers dealing with this topic can be divided into two groups: the first group focusing on a capital-risk relationship and the second group analyzing a capital-profitability relationship. The first group investigates whether the imposition of stricter capital requirements reduces risk-taking incentives of banks based on a simultaneous equations model. Their model pioneered the idea that the changes in both capital and risk have endogenous and exogenous components. The results obtained by the authors indicate that changes in the capital level are positively related to the changes in asset risk. The second group of the literature concentrating solely on the relationship between the level of held capital and bank profitability is limited. Nevertheless, there are a lot of studies dealing with the banks’ profitability as such, where bank capital is very often included as an explanatory variable. Based on the literature review of dozens of relevant papers in this study, an empirical research on banks’ profitability and risk adjustment decisions under new banking rules Basel III rules can be easily undertaken.

Keywords: bank, Basel III, capital, decision making, profitability, risk, simultaneous equations model

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1592 The Profitability Management Mechanism of Leather Industry-Based on the Activity-Based Benefit Approach

Authors: Mei-Fang Wu, Shu-Li Wang, Tsung-Yueh Lu, Feng-Tsung Cheng

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Strengthening core competitiveness is the main goal of enterprises in a fierce competitive environment. Accurate cost information is a great help for managers in dealing with operation strategies. This paper establishes a profitability management mechanism that applies the Activity-Based Benefit approach (ABBA) to solve the profitability for each customer from the market. ABBA provides financial and non-financial information for the operation, but also indicates what resources have expired in the operational process. The customer profit management model shows the level of profitability of each customer for the company. The empirical data were gathered from a case company operating in the leather industry in Taiwan. The research findings indicate that 30% of customers create little profit for the company as a result of asking for over 5% of sales discounts. Those customers ask for sales discount because of color differences of leather products. This paper provides a customer’s profitability evaluation mechanism to help enterprises to greatly improve operating effectiveness and promote operational activity efficiency and overall operation profitability.

Keywords: activity-based benefit approach, customer profit analysis, leather industry, profitability management mechanism

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1591 The Effect of Organizational Virtuousness on Nurses' Organizational Identification Level and Performance: The Mediating Role of Perceived Organizational Support

Authors: Feride Eskin Bacaksiz, Aytolan Yildirim

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Practices voluntarily performed by organizations for their employees well-being, create an emotional imperative for employees in accordance with reciprocity norm. Changes in desired course occur in organizational outputs and attitudes towards organization among employees perceiving their organizations as virtuous and supportive. The aim of this study was to examine the effect of organizational virtuousness on performance and organizational identification levels of employees and mediating role of perceived organizational support in this relationship. The data of this descriptive and methodological study were collected from 336 nurses working in a public university hospital in 2015. Participant information form, Organizational Virtuousness, Perceived Organizational Support, Organizational Identification, and Employee Performance scales were used to collect the data. Descriptive, correlative, psychometric analyses and Structural Equation Modeling were performed for the data analysis. Most of the participants were female, under 30 years of age, graduated degrees and staff nurse. Mean scores obtained by the participants from scales were calculated as 3.43(SD=.99) for organizational virtuousness, 2.99 (SD=1.16) for perceived organizational support, 3.18 (SD=1.03) for organizational identification and 3.84 (SD=0.66) for employee performance. It was found that correlation between organizational virtuousness and employee performance regressed from r=0.64 to r=-0.01 and correlation between organizational virtuousness and organizational identification regressed from r=0.55 to r=-0.16 and became statistically non-significant (p < 0.05) via mediating role of perceived organizational support. According to the results, perceived organizational support assumes full mediation on the impact of organizational virtues of employee performance and organizational identification levels. Therefore, organizations, which intend to positively affect employees attitudes towards organization and their performance, should both extend organizational virtuous activities and affect perceptions of employees; whereas, employees should perceive that they are supported by their organization.

Keywords: employee performance, organizational identification, organizational virtuousness, perceived organizational support

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1590 Comparative Analysis of Effect of Capital Structure to Profitability in Manufacturing Sector in Indonesia and Malaysia in 2009 - 2014

Authors: Hatane Semuel, Hartmann H. Ngono, Sautma R. Basana

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The effect of capital structure on profitability is often debated by many financial investigators. The application of the trade-off theory and pecking order theory to analyze this relationship may generate different views. Each company has its own strategies to achieve its objectives and the external environment, such as state policy has a broad impact on the relationship with the capital structure of the company's profitability. Malaysia is the country closest to Indonesia that had a similar growth rate of GDP and industrial production with Indonesia, but Malaysia has lower inflation rate than Indonesia. This study was conducted to compare the performance of manufacturing sector between two countries when entering the era of the ASEAN Economic Community (AEC). The samples for this study were 69 companies in Indonesia and 242 companies in Malaysia that engaged in manufacturing sector. The study uses panel data analysis. The study found that the capital structure have positive effect on profitability of manufacturing company in Indonesia, and it turns to negative effect on manufacturing companies in Malaysia. The results also showed that there are significant differences in short-term debt towards profitability of manufacturing companies in the two countries Indonesia and Malaysia.

Keywords: capital structure, Indonesia, Malaysia, manufacturing, profitability

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1589 Corporate Profitability through Effective Supply Chain Performance

Authors: Tareq N. Issa

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The main pressuring challenges of global competition and high returns have forced businesses to shift their strategic competitive advantage from physical distribution management to integrated logistics management, finally moving into supply chain management. Conventionally, corporate profitability is a function of cost, capital employed, revenue and customer service. This article gives an insight into the effect of supply chain management on each of the above variables. It investigates the impact of the changing levels/ effects of these variables on corporate profitability and the means of measuring supply chain financial effectiveness. Information technology tools form the basis for supply chain optimal performance through alignment of supply chain systems in this ever increasing complexity in business decisions.

Keywords: corporate profitability, sypply chain systems, business decisions, competitive advanage

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1588 Organizational Innovations of the 20th Century as High Tech of the 21st: Evidence from Patent Data

Authors: Valery Yakubovich, Shuping wu

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Organization theorists have long claimed that organizational innovations are nontechnological, in part because they are unpatentable. The claim rests on the assumption that organizational innovations are abstract ideas embodied in persons and contexts rather than in context-free practical tools. However, over the last three decades, organizational knowledge has been increasingly embodied in digital tools which, in principle, can be patented. To provide the first empirical evidence regarding the patentability of organizational innovations, we trained two machine learning algorithms to identify a population of 205,434 patent applications for organizational technologies (OrgTech) and, among them, 141,285 applications that use organizational innovations accumulated over the 20th century. Our event history analysis of the probability of patenting an OrgTech invention shows that ideas from organizational innovations decrease the probability of patent allowance unless they describe a practical tool. We conclude that the present-day digital transformation places organizational innovations in the realm of high tech and turns the debate about organizational technologies into the challenge of designing practical organizational tools that embody big ideas about organizing. We outline an agenda for patent-based research on OrgTech as an emerging phenomenon.

Keywords: organizational innovation, organizational technology, high tech, patents, machine learning

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1587 The Effect of Organizational Factors on Knowledge Sharing in the Jordanian Commercial Banks

Authors: Nadera Al Hourani

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The study aimed at testing the effect of the organizational factors on reinforcing the knowledge sharing competence in the Jordanian commercial banks. The study population consisted of all the commercial banks working in Jordan according to the statistics of the Jordanian Banks Association by the end of 2010 (n=12). The researchers took a sample of the branch managers (n=240), and constructed a questionnaire to achieve the objective of the study. 235 questionnaires were returned and 16 were discarded due to incompleteness of their data, thus accepting 219 questionnaires. The results of the study indicated statistically significant effect of the organizational factors with their elements: (organizational structure, organizational culture, and human resources policy) in knowledge sharing. The study recommended that the Jordanian commercial banks have to continue attention to the organizational factors through supporting the less important variables and lowest means within the independent variable (organizational factors). The organizational structure came lowest, which urges the management of the commercial banks to adopt a flexible organizational structure capable to reinforce the knowledge sharing competence.

Keywords: banks, Jordan, knowledge, organizational factors, sharing

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1586 Antecedents and Consequences of Organizational Intelligence in an R and D Organization

Authors: Akriti Srivastava, Soumi Awasthy

Abstract:

One of the disciplines that provoked increased interest in the importance of intelligence is the management and organization development literature. Organization intelligence is a key enabling force underlying many vital activities and processes dominating organizational life. Hence, the factors which lead to organizational intelligence and the result which comes out of the whole procedure is important to be understood with the understanding of OI. The focus of this research was to uncover potential antecedents and consequences of organizational intelligence, thus a non-experimental explanatory survey research design was used. A non-experimental research design is in which the manipulation of variables and randomization of samples are not present. The data was collected with the help of the questionnaire from 321 scientists from different laboratories of an R & D organization. Out of which 304 data were found suitable for the analysis. There were 194 males (age, M= 35.03, SD=7.63) and 110 females (age, M= 34.34, SD=8.44). This study tested a conceptual model linking antecedent variables (leadership and organizational culture) to organizational intelligence, followed by organizational innovational capability and organizational performance. Structural equation modeling techniques were used to analyze the hypothesized model. But, before that, confirmatory factor analysis of organizational intelligence scale was done which resulted in an insignificant model. Then, exploratory factor analysis was done which gave six factors for organizational intelligence scale. This structure was used throughout the study. Following this, the final analysis revealed relatively good fit of data to the hypothesized model with certain modifications. Leadership and organizational culture emerged out as the significant antecedents of organizational intelligence. Organizational innovational capability and organizational performance came out to be the consequent factors of organizational intelligence. But organizational intelligence did not predict organizational performance via organizational innovational capability. With this, additional significant pathway emerged out between leadership and organizational performance. The model offers a fresh and comprehensive view of the organizational intelligence. In this study, prior studies in related literature were reviewed to offer a basic framework of organizational intelligence. The study proved to be beneficial for organizational intelligence scholarship, seeing its importance in the competitive environment.

Keywords: leadership, organizational culture, organizational intelligence, organizational innovational capability

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