A study of an integrated approach for strategy formulation and performance measurement in manufacturing enterprises.

Performance measurement quantifies the efficiency and effectiveness of action that helps organisations translate their strategies into results and fixes accountability to improve performance. This research identifies two problem statements: First, can integrating strategy formulation with measurement initiatives safeguard the performance goals in manufacturing enterprises? And second, how can manufacturing enterprises derive an integrated approach that meet their requirements and needs for strategy formulation (SF) and performance measurement (PM) system implementation? This work proposes an integrated paradigm that aligns the strategy-related performance measures to attain performance improvement in manufacturing enterprises. A two-stage empirical study was conducted, with 232 Hong Kong firms and 85 Shanghai firms participating in the study. The first stage surveys identified the common success factors, problem areas and strategy choices, and examined the relationship amongst corporate, marketing, technology and operational strengths and the `reactive/proactive' strategy choices. The subsequent personal interviews in Hong Kong complemented the survey findings by examining the impact of SF/PM efforts in manufacturing enterprises. There were two series of interviews. The first series acquired the managerial views on the decision criteria on the integration of strategy formulation and performance measures, with the aid of Analytical Hierarchy Process (AHP) methodology. The second interview series derived several design elements and process considerations for aligning strategy formulation with performance measures. The empirical study used in this research provided important inputs and served as a foundation for development of a SF/PM Integration (SPI) model. In an attempt to integrate strategy formulation and performance measurement, the SPI model adopts the guiding principles embodied with the Business Excellence Models and stresses the results-oriented assessments on five categories of SF/PM criteria, namely leadership and constancy of purpose, management by process, people development, continuous improvement, and results orientation. Unlike that of the MBNQA and EQA, the point values for criteria and sub-elements of SPI model were generated collectively from the perspectives of industry practitioners in the manufacturing sectors. These were determined using the normalised weights obtained from the AHP analysis of empirical interview findings. They are taken together to calculate the overall performance index for an organisation. The process framework comprises five stages starting from strategy formulation to implementation and evaluation of an integrated performance measurement system. It encapsulates the requirements, critical processes and activities of strategy formulation and performance measures into the way they are being managed in organisations. The SPI model helps manufacturing enterprises to build a self-assessment platform for amalgamating strategies, plans and actions which can enable performance improvement. It can supplement any Business Excellence Models, and serves three important purposes. Firstly, it is a working tool for integrating SF and PM initiatives and guiding the implementation of performance measurement system in manufacturing enterprises. Secondly, using the model can help improve the effectiveness of management practices in relation to performance measures and self-assessment; and thirdly, using the model can facilitate information sharing of best practices within an organisation and benchmark performance against competitors and other organisations. Results of a post-evaluation survey affirmed that the model and processes could encourage organisational learning and provide a practical means for manufacturing enterprises to devise effective self-assessment and performance improvement. The novel contributions of the research are to identify the key SF/PM attributes, develop the self-assessment scoring method and the process framework accompanying the SPI model. Manufacturing enterprises must evolve a holistic performance measurement system matching their corporate mission, objectives and strategies. The SPI model provides them with a systems approach for building and integrating the capabilities of SF and PM to attain performance improvement goals, irrespective of their business nature and sizes

Management control in the transfer pricing tax compliant multinational enterprise

This paper studies the impact of transfer pricing tax compliance on management control system (MCS) design and use within one multinational enterprise (MNE) which employed the same transfer prices for tax compliance and internal management purposes. Our analysis shows immediate effects of tax compliance on the design of organising controls with subsequent effects on planning, evaluating and rewarding controls which reveal a more coercive use of the MCS overall. We argue that modifications to the MCS cannot be understood without an appreciation of the MNEs’ fiscal transfer pricing compliance process

Is an Environmental Management System able to influence environmental and competitive performance? The case of the Eco-Management and Audit Scheme (EMAS) in the European Union

The EMAS Regulation (Reg 761/01 EC) is an EU scheme for the implementation of an Environmental Management System (EMS) by any organization, implemented by the European Commission since the year 1993. The EMS has been originally proposed both by the European Commission and by ISO as the frontrunner of a series of policy tools that were conceived to enable companies to simultaneously pursue environmental objectives and competitive targets (in a synergetic way). Based on the unique dataset of the EVER project, this paper investigates whether or not an EMS implemented within the EMAS Regulation has an effect on firm performance both from an environmental and a competitive point of view. The econometric analysis shows a positive impact of well-designed environmental management system on environmental performance and, as a consequence, on technical and organizational innovations. Effects on other competitive variable as market performance, resource productivity and intangible asset are not strongly supported

Solutions for Impact Investors: From Strategy to Implementation

In writing this monograph, our main goal is to provide impact investors with tools to tighten the link between their investment decisions and impact creation. Our intent is threefold: to attract more capital to impact investing; to assist impact investors as they move from organizational change to executing and refining their impact investment decision-making process; and to narrow the gap within foundations between program professionals and investment professionals thereby contributing to a mutual understanding and implementation of a portfolio approach to impact investing.Additionally, we intend to help break down the barriers making it difficult to identify opportunities in impact investing. To this end, we provide examples throughout the monograph and at www.rockpa.org/impactinvesting of impact investment opportunities in most major asset classes.While we understand the important role that impact investors can play in providing financial capital, we also want to acknowledge the wide range of non-financial resources needed to address the world's problems. Our intent with this monograph is not to provide a comprehensive list of investments across asset classes nor any type of investment advice with regard to the selected profiles. We strongly encourage the reader to conduct their own assessment and evaluation for risk and suitability before considering any investment

Towards Sustainable Production and Consumption: Preparedness for Product Service System Concept

Eco-efficiency strategies and policies, which have resulted in environmental gains that translate into increased resource efficiency and lower levels of emissions, in particular CO2 emissions along the life cycle of products and services, might be offset by rising levels of consumption on the demand side. Hence, both sides of the coin i.e. the system of production and consumption systems need to be assessed if more sustainable patterns are to be achieved. Establishing sustainable production and consumption systems can be possible via functional thinking practices. Functional thinking takes the focus from provision of resource intensive product to satisfaction of needs and wants through service systems, where material products are treated as capital assets rather than consumables. An application of functional thinking is the Product Service System (PSS) concept. Providers of PSS applications aim to generate profit not from selling as many material products as possible, but from providing a function of the product or service. Potential environmental benefits of PSS applications stemming from decreased use of virgin materials in production and lessened resource consumption at the use phase are being recognized. Applications of PSS can be seen in many sectors such as Information and Communication Technology (ICT), energy, transportation, food and in many forms such as remanufacturing, demand side management, chemical management services, car sharing schemes, functional designs, etc. However, supply and use of such applications might need considerable assessment of business practices and consumer behaviour. For business, designing and implementing PSS applications might require a new set of internal conditions such as shifting the business vision and adjusting the corporate culture to provision of functions. On the other hand, understanding of individual and social factors guiding the consumers' acceptance of PSS applications is required.This paper is an extract from a study, which is conducted with the aim of provision of a direction enhancing business ability to offer new or improved PSS applications with increased consumer acceptance and in turn enhanced resource efficiency. Applications in the Information and Communications Technology (ICT) sector are chosen as the focus of the paper. Although it is debated that this fast developing sector can potentially contribute to dematerialisation of systems, limitations within the sector still remain unclear. Here, it is aimed to suggest an overview of the aspects for business preparedness and consumer acceptance of PSS applications providing particular functions in the ICT sector. The focus is on the company level dynamics, despite it is recognized that factors of macro level preparedness such as infrastructure availability, economic and social conditions, public support, etc. are essential to consider for system preparedness

Absorptive capacity and relationship learning mechanisms as complementary drivers of green innovation performance

This paper aims to explore in depth how internal and external knowledge-based drivers actually affect the firms\u2019 green innovation performance. Subsequently, this study analyzes the relationships between absorptive capacity (internal knowledge-based driver), relationship learning (external knowledge-based driver) and green innovation performance. This study relies on a sample of 112 firms belonging to the Spanish automotive components manufacturing sector (ACMS) and uses partial least squares path modeling to test the hypotheses proposed. The empirical results show that both absorptive capacity and relationship learning exert a significant positive effect on the dependent variable and that relationship learning moderates the link between absorptive capacity and green innovation performance. This paper presents some limitations with respect to the particular sector (i.e. the ACMS) and geographical context (Spain). For this reason, researchers must be thoughtful while generalizing these results to distinct scenarios. Managers should devote more time and resources to reinforce their absorptive capacity as an important strategic tool to generate new knowledge and hence foster green innovation performance in manufacturing industries. The paper shows the importance of encouraging decision-makers to cultivate and rely on relationship learning mechanisms with their main stakeholders and to acquire the necessary information and knowledge that might be valuable in the maturity of green innovations. This study proposes that relationship learning plays a moderating role in the relationship between absorptive capacity and green innovation performance

Effectiveness of HRD for developing SMEs in South Asia

Today South Asia is host to a large youth bulge which is entering the labor market every year posing challenging questions for the national governments in the context of employable skills, space for entrepreneurship, innovation and economic freedom. SME sector provides an opportunity for the young to exercise their ideas and ideals. However a prerequisite for the young to be innovate is the how countries produce and retain a high end human capital. This study provides a review of national socio-economic policies in South Asian region - which answer such challenges.human resource development, small and medium enterprises, economic growth, competitiveness

LSS, a problem solving skill for graduates and SMEs: Case Study of investigation in a UK Business School curriculum

Purpose - This research aims to investigate the feasibility of a systematic Lean Six Sigma (LSS) education through the curriculum of business schools to respond to the existing gap between the graduate’s expectation of employability and skill requirements by the Small and Medium Sized Enterprises (SMEs). Design/approach/methodology - One UK business school has been used as a case study to conduct an extensive module and programme review followed by a semi-structured interview with the potentially suitable core and programme-specific module leaders and also the comparative Analysis between content of these modules and the existing LSS high-street training themes. Findings – The result revealed a high potential of the existing modules in the business schools equivalent to the private sector training providers to increase the level of LSS problem solving knowledge and skill for all graduates and improve their employability and productivity for the SMEs. Practical implications/limitations – This research has been carried out in a single UK–based Business School through a qualitative approach. A further in-depth analysis in a broader scale is required to investigate the practical implications in a better way. Originality/Value – The result of this study highlights the role of LSS to reduce the knowledge and skill gap between the business schools as the source of the explicit knowledge, graduates as the knowledge and skill bearer, and SMEs as the knowledge and skill users

Educating managers for business and government : a review of international experience

Managers, in both the private and public sectors, are increasingly recognized as critical in the use of scarce resources for national development. There is no unanimity of opinion, however, regarding the models or approaches to management education that are most appropriate in different environmental settings. This report encompasses management education for each of the following groups: the managers and future managers of large scale enterprises; entrepreneurs and small businessmen; and public administrators. It reviews worldwide trends and developments in management education for lessons in such areas as curriculum design, research and teaching methodology, and institutional policies and administration. Experience is drawn from recognized universities, educational organizations, civil service institutes, and corporations in several major countries and regions of the world.ICT Policy and Strategies,Health Monitoring&Evaluation,Teaching and Learning,Curriculum&Instruction,Primary Education