Pub Date : 2024-06-03DOI: 10.24018/ejbmr.2024.9.3.2286
George Ndiritu, Cyrus Iraya, Kennedy O. Okiro, Samuel Nyandemo
The interest rate spread has, over a long time, generated a lot of attentiveness in the banking sector in Kenya. This has been due to the huge gap that prevailed between the deposit rate and the lending rate and its impact on the performance of the banking sector. Thus, the objective of the study is to determine the effect of interest rate spread on the performance of commercial banks in Kenya. A descriptive research design was employed, utilizing secondary data from 42 commercial banks in Kenya spanning from 2008 to 2018. A random effects model was used to assess the existence of the causal effect between the two variables. The findings revealed a positive and significant relationship between interest rate spread and the performance of the banks.
{"title":"Effect of Interest Rate Spread on Performance of Commercial Banks in Kenya","authors":"George Ndiritu, Cyrus Iraya, Kennedy O. Okiro, Samuel Nyandemo","doi":"10.24018/ejbmr.2024.9.3.2286","DOIUrl":"https://doi.org/10.24018/ejbmr.2024.9.3.2286","url":null,"abstract":"\u0000\u0000\u0000\u0000The interest rate spread has, over a long time, generated a lot of attentiveness in the banking sector in Kenya. This has been due to the huge gap that prevailed between the deposit rate and the lending rate and its impact on the performance of the banking sector. Thus, the objective of the study is to determine the effect of interest rate spread on the performance of commercial banks in Kenya. A descriptive research design was employed, utilizing secondary data from 42 commercial banks in Kenya spanning from 2008 to 2018. A random effects model was used to assess the existence of the causal effect between the two variables. The findings revealed a positive and significant relationship between interest rate spread and the performance of the banks.\u0000\u0000\u0000\u0000","PeriodicalId":503831,"journal":{"name":"European Journal of Business and Management Research","volume":"55 2","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-06-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141388995","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-03-22DOI: 10.24018/ejbmr.2024.9.2.2164
G. Amos, Seth Boahen
This paper aims to explore the social and environmental issues that are of priority/importance to the mining host communities in a developing country-Ghana. To explore the social and environmental issues that are of priority/importance to the mining host communities in a developing country, this study used Ghana as a test case and conducted 18 in-depth, semi-structured interviews with respondents drawn from the mining host communities of Prestea and Bogosu. The findings show that members of the host communities–the group deemed to be the most powerful and legitimacy-conferring stakeholder placed pressure (i.e., expectations and/or concerns) on the mining firms that operate in the host communities in terms of their social and environmental performance. Five themes, i.e., general categories, emerged from the data of this study in terms of the social and environmental issues that are of priority/importance to the host communities: a prioritisation of community development projects, environmental/sustainability-related issues, employment of indigenes/local enterprise development, communication of social responsibility information and preservation of local culture and tradition. This study is an exploratory study based on only 18 in-depth, semi-structured interviews, i.e., using purposive sampling. The implication of this study is that because developing countries have similar socioeconomic, cultural, and geopolitical features, the finding of this study may be relevant to researchers and policymakers in developing countries where multinational mining companies (MMCs) operate. Although mining communities’ awareness regarding corporate social responsibility has increased in recent decades, to date, we know little about the social and environmental issues that are of priority/importance to the host communities of mining firms in developing countries.
{"title":"Corporate Social Responsibility in the Mining Industry: Exploring Perspectives of Host Communities in a Developing Country","authors":"G. Amos, Seth Boahen","doi":"10.24018/ejbmr.2024.9.2.2164","DOIUrl":"https://doi.org/10.24018/ejbmr.2024.9.2.2164","url":null,"abstract":"This paper aims to explore the social and environmental issues that are of priority/importance to the mining host communities in a developing country-Ghana. To explore the social and environmental issues that are of priority/importance to the mining host communities in a developing country, this study used Ghana as a test case and conducted 18 in-depth, semi-structured interviews with respondents drawn from the mining host communities of Prestea and Bogosu. The findings show that members of the host communities–the group deemed to be the most powerful and legitimacy-conferring stakeholder placed pressure (i.e., expectations and/or concerns) on the mining firms that operate in the host communities in terms of their social and environmental performance. Five themes, i.e., general categories, emerged from the data of this study in terms of the social and environmental issues that are of priority/importance to the host communities: a prioritisation of community development projects, environmental/sustainability-related issues, employment of indigenes/local enterprise development, communication of social responsibility information and preservation of local culture and tradition. This study is an exploratory study based on only 18 in-depth, semi-structured interviews, i.e., using purposive sampling. The implication of this study is that because developing countries have similar socioeconomic, cultural, and geopolitical features, the finding of this study may be relevant to researchers and policymakers in developing countries where multinational mining companies (MMCs) operate. Although mining communities’ awareness regarding corporate social responsibility has increased in recent decades, to date, we know little about the social and environmental issues that are of priority/importance to the host communities of mining firms in developing countries.","PeriodicalId":503831,"journal":{"name":"European Journal of Business and Management Research","volume":" 3","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-03-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140387438","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-03-15DOI: 10.24018/ejbmr.2024.9.2.2131
Adel R. M. Rayan, Ahmed Sayed Mohamed Sbaie, Yasser S. A. Hussien, Hadeer Murad Mabrouk
The purpose of this study was to determine the role of customer relationship quality in mediating the relationship between customer value co-creation behavior and customer loyalty in Egyptian private hospitals and medical centers in Assiut Governorate. The descriptive analytical method was used in the study. 445 of the 500 patients in the sample were collected by a questionnaire, which was valid for statistical analysis. The study’s findings supported the mediating role of customer relationship quality in the relationship between customer value co-creation behavior and customer loyalty. Implications, recommendations, and potential future studies in the subject of study were discussed.
{"title":"Mediating Role of Customer Relationship Quality between the Customer Value Co-creation Behavior and Customer Loyalty","authors":"Adel R. M. Rayan, Ahmed Sayed Mohamed Sbaie, Yasser S. A. Hussien, Hadeer Murad Mabrouk","doi":"10.24018/ejbmr.2024.9.2.2131","DOIUrl":"https://doi.org/10.24018/ejbmr.2024.9.2.2131","url":null,"abstract":"The purpose of this study was to determine the role of customer relationship quality in mediating the relationship between customer value co-creation behavior and customer loyalty in Egyptian private hospitals and medical centers in Assiut Governorate. The descriptive analytical method was used in the study. 445 of the 500 patients in the sample were collected by a questionnaire, which was valid for statistical analysis. The study’s findings supported the mediating role of customer relationship quality in the relationship between customer value co-creation behavior and customer loyalty. Implications, recommendations, and potential future studies in the subject of study were discussed.","PeriodicalId":503831,"journal":{"name":"European Journal of Business and Management Research","volume":" 67","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-03-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140392074","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-03-08DOI: 10.24018/ejbmr.2024.9.2.2206
Alvine W. Tammala, O. Y. Sudrajad
In the context of the high-risk, high-investment oil and gas industry, operational efficiency plays a pivotal role in profitability, making Key Performance Indicators (KPIs) a crucial focal point. In 2021, the oil production downturn in PEP TSS, particularly in the drilling sector, raised concerns about the financial outlook. The condition became tamed after merging with PHSS, which created an opportunity to transfer knowledge from one another. This actually prompts a critical examination of the potential for implementing monobore well architecture, notably in Structure-X. Monobore design, renowned for its cost-effective approach to wellbore design, production, and completion, emerges as a promising avenue for financial recovery for PEP TSS. The research stages encompass a thorough literature review, analysis of primary and secondary data, and quantitative assessments. Assumptions revolve around the cost-effectiveness and performance improvements achievable through monobore, supported by the hypothesis that it can outperform conventional well architecture with a high chance of success findings indicating a mere 14% probability of NPV < 0 and an estimated $0.54 million USD increase in profitability compared to conventional well architecture, suggesting significant potential for financial gains in the industry.
{"title":"Leveraging up Profitability in the Oil and Gas Industry: Economic Evaluation of the Continuity of Monobore Drilling Well Architecture in PT Pertamina Hulu Indonesia Zone 9 in Structure-X","authors":"Alvine W. Tammala, O. Y. Sudrajad","doi":"10.24018/ejbmr.2024.9.2.2206","DOIUrl":"https://doi.org/10.24018/ejbmr.2024.9.2.2206","url":null,"abstract":"In the context of the high-risk, high-investment oil and gas industry, operational efficiency plays a pivotal role in profitability, making Key Performance Indicators (KPIs) a crucial focal point. In 2021, the oil production downturn in PEP TSS, particularly in the drilling sector, raised concerns about the financial outlook. The condition became tamed after merging with PHSS, which created an opportunity to transfer knowledge from one another. This actually prompts a critical examination of the potential for implementing monobore well architecture, notably in Structure-X. Monobore design, renowned for its cost-effective approach to wellbore design, production, and completion, emerges as a promising avenue for financial recovery for PEP TSS. The research stages encompass a thorough literature review, analysis of primary and secondary data, and quantitative assessments. Assumptions revolve around the cost-effectiveness and performance improvements achievable through monobore, supported by the hypothesis that it can outperform conventional well architecture with a high chance of success findings indicating a mere 14% probability of NPV < 0 and an estimated $0.54 million USD increase in profitability compared to conventional well architecture, suggesting significant potential for financial gains in the industry.","PeriodicalId":503831,"journal":{"name":"European Journal of Business and Management Research","volume":"23 2","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-03-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140257925","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-02-27DOI: 10.24018/ejbmr.2024.9.1.2096
Dannys Setyadi Wibawa, Subiakto Sukarno
PKT, as a petrochemical company with high potential hazards, prioritizes emergency preparedness and response by complying with regulations and standards. In addition to serving its own needs, PKT’s fire and rescue department also provides emergency services to four neighboring companies through an annual fee cooperation scheme. To enhance the emergency response services, PKT conducted an evaluation and identified the need for an additional fire truck unit with up-to-date technology. To determine the most suitable option, PKT is considering purchasing or renting the new fire truck units. A financial modeling analysis was conducted using income from health and safety services. The financial feasibility analysis, considering parameters such as NPV, IRR, and discounted payback period, resulted in a feasible outcome. The Purchase option exhibited better economic value, with a predicted NPV of Rp. 569,276,495, an IRR of 11.56% (higher than the discount rate of 10.5%), and a discounted payback period of 9.35 years. Sensitivity analysis, using tornado and spider charts, revealed that the annual fee from clients or joint venture companies had the most significant impact on the project’s financial performance, followed by manpower costs. A 20% increase in annual fees led to a significant increase in NPV Rp. 6,639,013,466, while a 20% decrease resulted in a significant decrease in NPV (−Rp. 5,500,460,477). Similarly, a 20% increase in manpower costs resulted in a decreased NPV of Rp. −3,500,609,667. Based on the sensitivity analysis, the two significant factors influencing the purchase option were identified as the annual fee and manpower cost. Recommendations that are also put forward for this study are identification to anticipate increases in labor costs and to keep manpower costs under control. The increase in manpower costs must be accompanied by an increase in income. Exploring opportunities to attract additional clients, particularly companies in the industrial complex that do not yet have an agreement with PKT, is also advised. By implementing these recommendations and ensuring cost control, PKT can optimize its emergency response services and maintain a financially viable operation.
{"title":"Investment Analysis of New Fire Truck: A Case Study of Purchase or Rent Option","authors":"Dannys Setyadi Wibawa, Subiakto Sukarno","doi":"10.24018/ejbmr.2024.9.1.2096","DOIUrl":"https://doi.org/10.24018/ejbmr.2024.9.1.2096","url":null,"abstract":"PKT, as a petrochemical company with high potential hazards, prioritizes emergency preparedness and response by complying with regulations and standards. In addition to serving its own needs, PKT’s fire and rescue department also provides emergency services to four neighboring companies through an annual fee cooperation scheme. To enhance the emergency response services, PKT conducted an evaluation and identified the need for an additional fire truck unit with up-to-date technology. To determine the most suitable option, PKT is considering purchasing or renting the new fire truck units. A financial modeling analysis was conducted using income from health and safety services. The financial feasibility analysis, considering parameters such as NPV, IRR, and discounted payback period, resulted in a feasible outcome. The Purchase option exhibited better economic value, with a predicted NPV of Rp. 569,276,495, an IRR of 11.56% (higher than the discount rate of 10.5%), and a discounted payback period of 9.35 years. Sensitivity analysis, using tornado and spider charts, revealed that the annual fee from clients or joint venture companies had the most significant impact on the project’s financial performance, followed by manpower costs. A 20% increase in annual fees led to a significant increase in NPV Rp. 6,639,013,466, while a 20% decrease resulted in a significant decrease in NPV (−Rp. 5,500,460,477). Similarly, a 20% increase in manpower costs resulted in a decreased NPV of Rp. −3,500,609,667. Based on the sensitivity analysis, the two significant factors influencing the purchase option were identified as the annual fee and manpower cost. Recommendations that are also put forward for this study are identification to anticipate increases in labor costs and to keep manpower costs under control. The increase in manpower costs must be accompanied by an increase in income. Exploring opportunities to attract additional clients, particularly companies in the industrial complex that do not yet have an agreement with PKT, is also advised. By implementing these recommendations and ensuring cost control, PKT can optimize its emergency response services and maintain a financially viable operation.","PeriodicalId":503831,"journal":{"name":"European Journal of Business and Management Research","volume":"47 9","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-02-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140424355","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-02-27DOI: 10.24018/ejbmr.2024.9.1.2165
G. Amos, Jonathan Banahene
There is a general lack of research which directly seeks the views of MNC subsidiary managers about what internal and external pressures they perceive are imposed on them, and how such pressures, in turn, impact their CSR reporting in developing countries. To fill this gap and improve our understanding of CSR reporting practices of MNC subsidiaries, this study aims to investigate how MNC subsidiaries operationalise CSR reporting practices in an African context–Ghana. This study comprises analysis of CSR reports, websites and other publicly-available reports using qualitative data analysis and 15 in-depth, semi-structured interviews with respondents drawn from 8 MNC subsidiaries using legitimacy theory and institutional theory as lenses. The analysis identifies reporting relationships between MNC subsidiary and parent-company (as internal factors), and the supervisory relationships between MNC subsidiaries and local regulatory institutions (as external factors), as factors that induce/sensitise MNC subsidiaries managers to voluntarily disclose social responsibility information. The adoption of voluntary global standards for CSR such as GRI appeared to influence MNC subsidiaries’ CSR reporting practices. Additionally, locally espoused (or ingrained) values/expectations and norms that frown on actions and/or inactions that are deemed not to be socially acceptable corporate behaviours appeared to inform the CSR initiatives that MNC subsidiaries voluntarily disclose in order to acquire a sense of legitimacy. The results of this study have implications for research and practice. Generally speaking, MNC subsidiaries operating in an African context may require more local knowledge and support in relation to social and environmental responsibility. Limitations of this study include limited data available, particularly interviews, which provides opportunity for future research.
{"title":"Corporate Social Responsibility Reporting: A Study of the Views of MNC Subsidiary Managers in an African Context","authors":"G. Amos, Jonathan Banahene","doi":"10.24018/ejbmr.2024.9.1.2165","DOIUrl":"https://doi.org/10.24018/ejbmr.2024.9.1.2165","url":null,"abstract":"There is a general lack of research which directly seeks the views of MNC subsidiary managers about what internal and external pressures they perceive are imposed on them, and how such pressures, in turn, impact their CSR reporting in developing countries. To fill this gap and improve our understanding of CSR reporting practices of MNC subsidiaries, this study aims to investigate how MNC subsidiaries operationalise CSR reporting practices in an African context–Ghana. This study comprises analysis of CSR reports, websites and other publicly-available reports using qualitative data analysis and 15 in-depth, semi-structured interviews with respondents drawn from 8 MNC subsidiaries using legitimacy theory and institutional theory as lenses. The analysis identifies reporting relationships between MNC subsidiary and parent-company (as internal factors), and the supervisory relationships between MNC subsidiaries and local regulatory institutions (as external factors), as factors that induce/sensitise MNC subsidiaries managers to voluntarily disclose social responsibility information. The adoption of voluntary global standards for CSR such as GRI appeared to influence MNC subsidiaries’ CSR reporting practices. Additionally, locally espoused (or ingrained) values/expectations and norms that frown on actions and/or inactions that are deemed not to be socially acceptable corporate behaviours appeared to inform the CSR initiatives that MNC subsidiaries voluntarily disclose in order to acquire a sense of legitimacy. The results of this study have implications for research and practice. Generally speaking, MNC subsidiaries operating in an African context may require more local knowledge and support in relation to social and environmental responsibility. Limitations of this study include limited data available, particularly interviews, which provides opportunity for future research.","PeriodicalId":503831,"journal":{"name":"European Journal of Business and Management Research","volume":"37 5","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-02-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140424579","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-02-24DOI: 10.24018/ejbmr.2024.9.1.2270
C. K. Masila, W. Nyamute, Kennedy O. Okiro, Moris Irungu
Corporate sustainability reporting is currently a prominent issue in the global business world, with companies worldwide actively publishing sustainability reports to meet the demands of different stakeholders regarding social, environmental, economic, and governance concerns. The existing literature has proved that companies that participate aggressively in corporate sustainability reporting tend to have higher firm value, experience tremendous growth rates in terms of size and profitability, have a high capital and asset base, are lowly geared, and gain a competitive edge in the industry in which they operate. The study examines the link between corporate sustainability reporting and the financial performance of firms listed at the Nairobi Securities Exchange. Corporate governance, social, environmental, and economic pillars were used as indicators of corporate sustainability reporting. The Global Reporting Initiative framework will be employed to establish the corporate sustainability reporting scores and construct the sustainability reporting index. Financial performance was measured by return on assets. The study is anchored on the stakeholder theory supported by legitimacy and the tripled bottom-line theories. The target population comprises sixty-seven companies listed in Kenya. Secondary data was collected from the company integrated reports, published accounts, and the accounts filed with the Nairobi Securities Exchange for the period 2011 to 2020. The study adopted a cross-sectional correlational research design. Descriptive statistical tests carried out include mean, standard deviation, kurtosis and skewness. Correlation analysis was done to test and establish the direction of the relationship between the study variables. Regression analysis was employed to test the hypotheses of the study. Generally, the study findings are that corporate sustainability reporting had a significant positive effect on financial performance. The empirical results of this study showed that corporate sustainability reporting led to improved financial performance among listed companies, although sustainability reporting in Kenya was purely voluntary. Therefore, Kenya’s Capital Markets Authority should consider making corporate sustainability reporting compulsory for all listed companies. Further research can be extended to include non-listed companies and the application of other sustainability reporting frameworks. Keywords: Corporate Sustainability Reporting, Financial Performance, Global Reporting Initiative, Nairobi Securities Exchange.
{"title":"Does Corporate Sustainability Reporting Influence Financial Performance? Evidence from Kenyan Listed Companies","authors":"C. K. Masila, W. Nyamute, Kennedy O. Okiro, Moris Irungu","doi":"10.24018/ejbmr.2024.9.1.2270","DOIUrl":"https://doi.org/10.24018/ejbmr.2024.9.1.2270","url":null,"abstract":"Corporate sustainability reporting is currently a prominent issue in the global business world, with companies worldwide actively publishing sustainability reports to meet the demands of different stakeholders regarding social, environmental, economic, and governance concerns. The existing literature has proved that companies that participate aggressively in corporate sustainability reporting tend to have higher firm value, experience tremendous growth rates in terms of size and profitability, have a high capital and asset base, are lowly geared, and gain a competitive edge in the industry in which they operate. The study examines the link between corporate sustainability reporting and the financial performance of firms listed at the Nairobi Securities Exchange. Corporate governance, social, environmental, and economic pillars were used as indicators of corporate sustainability reporting. The Global Reporting Initiative framework will be employed to establish the corporate sustainability reporting scores and construct the sustainability reporting index. Financial performance was measured by return on assets. The study is anchored on the stakeholder theory supported by legitimacy and the tripled bottom-line theories. The target population comprises sixty-seven companies listed in Kenya. Secondary data was collected from the company integrated reports, published accounts, and the accounts filed with the Nairobi Securities Exchange for the period 2011 to 2020. The study adopted a cross-sectional correlational research design. Descriptive statistical tests carried out include mean, standard deviation, kurtosis and skewness. Correlation analysis was done to test and establish the direction of the relationship between the study variables. Regression analysis was employed to test the hypotheses of the study. Generally, the study findings are that corporate sustainability reporting had a significant positive effect on financial performance. The empirical results of this study showed that corporate sustainability reporting led to improved financial performance among listed companies, although sustainability reporting in Kenya was purely voluntary. Therefore, Kenya’s Capital Markets Authority should consider making corporate sustainability reporting compulsory for all listed companies. Further research can be extended to include non-listed companies and the application of other sustainability reporting frameworks.\u0000Keywords: Corporate Sustainability Reporting, Financial Performance, Global Reporting Initiative, Nairobi Securities Exchange.","PeriodicalId":503831,"journal":{"name":"European Journal of Business and Management Research","volume":"21 3","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-02-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140434663","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-02-21DOI: 10.24018/ejbmr.2024.9.1.2271
Desalegne Assefa Yegzaw, Getie Andualem Imiru
Extensive research in strategic management has shown that more than half of the business strategies fail to accomplish their intended objectives due to problems with strategy implementation. However, in comparison to strategy formulation, strategy implementation has received insufficient attention both at the theoretical and empirical levels. The objective of the study was to develop a comprehensive model that augments the effectiveness of strategy implementation in the context of a developing economy. A sample of 229 top and middle-level managers of commercial banks was chosen to collect quantitative data, and around 187 (82%) questionnaires were returned. The quantitative data analysis was carried out using structural equation modelling. By operationalizing strategy implementation capability as a second-order reflective-formative construct, the study established an empirically informed strategy implementation model that entails three components, namely, critical strategy implementation-related resources, key elements of strategy implementation capability and strategy implementation performance. The study contributes to the existing knowledge on strategy implementation by expanding the extant strategy implementation frameworks/models to a broad-based and integrative model.
{"title":"Strategy Implementation Model for Commercial Banks in a Developing Economy: A Resource-Capability Approach","authors":"Desalegne Assefa Yegzaw, Getie Andualem Imiru","doi":"10.24018/ejbmr.2024.9.1.2271","DOIUrl":"https://doi.org/10.24018/ejbmr.2024.9.1.2271","url":null,"abstract":"Extensive research in strategic management has shown that more than half of the business strategies fail to accomplish their intended objectives due to problems with strategy implementation. However, in comparison to strategy formulation, strategy implementation has received insufficient attention both at the theoretical and empirical levels. The objective of the study was to develop a comprehensive model that augments the effectiveness of strategy implementation in the context of a developing economy. A sample of 229 top and middle-level managers of commercial banks was chosen to collect quantitative data, and around 187 (82%) questionnaires were returned. The quantitative data analysis was carried out using structural equation modelling. By operationalizing strategy implementation capability as a second-order reflective-formative construct, the study established an empirically informed strategy implementation model that entails three components, namely, critical strategy implementation-related resources, key elements of strategy implementation capability and strategy implementation performance. The study contributes to the existing knowledge on strategy implementation by expanding the extant strategy implementation frameworks/models to a broad-based and integrative model.","PeriodicalId":503831,"journal":{"name":"European Journal of Business and Management Research","volume":"14 4","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-02-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140442636","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-02-09DOI: 10.24018/ejbmr.2024.9.1.2258
Wawan Sulistyo Dwi Istanto, Sonny Rustiadi
PT Pertamina Patra Niaga is facing an era of energy transition, and one of the biggest phenomena is the adoption of electric vehicles (EVs). Massive EV adoption will impact Patra Niaga’s future business, and they must prepare a strategy to deal with these changes. This research aims to determine the factors that influence EV adoption in Indonesia and propose strategies that need to be carried out by Patra Niaga. The literature review shows that internal and external factors are very influential in determining Patra Niaga’s strategy. The research design is qualitative, with data obtained from primary sources from interviews and secondary data sources, including industry documents, reports, and journals. Using the scenario planning method with the PESTEL approach, the paper identifies four possible scenarios for the future of EV adoption in Indonesia. The possible scenarios are green tech frontier, policy-driven change, market-led innovation, and stagnant development. Environment analysis conducted both external analysis and internal analysis. The research uses Porter’s Five Forces to identify rivalry among the industry players for external analysis. Meanwhile, the internal analysis uses the use VRIO Framework to identify the competitive advantage of the company and the strength and weakness analysis to determine the opportunities and threats for the company. Finally, the research uses the BCG Matrix to develop a strategy for each scenario. Based on the BCG Matrix, the proposed strategies are to invest more in the EV infrastructure where the scenario is green tech frontier, to invest or divest where the scenario is policy-driven, to keep the EV infrastructure business running where the scenario is market-led innovation, and to s liquidated where the scenario is stagnant development. The chosen strategy is suggested to be implemented based on the probability of occurrence for each of the scenarios within a timeframe from the year 2024 to 2035 by involving various divisions in the company, including marketing, business development, and project leader of the EV division.
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Pub Date : 2024-02-09DOI: 10.24018/ejbmr.2024.9.1.2258
Wawan Sulistyo Dwi Istanto, Sonny Rustiadi
PT Pertamina Patra Niaga is facing an era of energy transition, and one of the biggest phenomena is the adoption of electric vehicles (EVs). Massive EV adoption will impact Patra Niaga’s future business, and they must prepare a strategy to deal with these changes. This research aims to determine the factors that influence EV adoption in Indonesia and propose strategies that need to be carried out by Patra Niaga. The literature review shows that internal and external factors are very influential in determining Patra Niaga’s strategy. The research design is qualitative, with data obtained from primary sources from interviews and secondary data sources, including industry documents, reports, and journals. Using the scenario planning method with the PESTEL approach, the paper identifies four possible scenarios for the future of EV adoption in Indonesia. The possible scenarios are green tech frontier, policy-driven change, market-led innovation, and stagnant development. Environment analysis conducted both external analysis and internal analysis. The research uses Porter’s Five Forces to identify rivalry among the industry players for external analysis. Meanwhile, the internal analysis uses the use VRIO Framework to identify the competitive advantage of the company and the strength and weakness analysis to determine the opportunities and threats for the company. Finally, the research uses the BCG Matrix to develop a strategy for each scenario. Based on the BCG Matrix, the proposed strategies are to invest more in the EV infrastructure where the scenario is green tech frontier, to invest or divest where the scenario is policy-driven, to keep the EV infrastructure business running where the scenario is market-led innovation, and to s liquidated where the scenario is stagnant development. The chosen strategy is suggested to be implemented based on the probability of occurrence for each of the scenarios within a timeframe from the year 2024 to 2035 by involving various divisions in the company, including marketing, business development, and project leader of the EV division.
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