0000000000893016
AUTHOR
Mihaela Herciu
Business Sustainable Competitiveness a Synergistic, Long-Run Approach of a Company's Resources and Results
Abstract Business sustainable competitiveness is a very complex concept. This complexity generates a variety of possibilities to define, to measure and to test it. The purpose of the paper is to develop the concept of businessness (for business sustainable competitiveness) by leveraging productivity, profitability, effectiveness and sustainability, at firm level. The interrelations between them, in terms of revenues per employee, return on assets, total assets turnover and Dow Jones Sustainability Index, were integrated into models/functions in order to develop, test and apply businessness. The article is about proposing functions (by using multiple discriminant analysis) in order to measur…
CLUSTER OF COUNTRIES ANALYSIS BY RESPONSIBLE COMPETITIVENESS, NATIONAL COMPETITIVENESS AND CORRUPTION
The Global Competitiveness Report, the State of Responsible Competitiveness and the Global Corruption Barometer elaborate annually a countries ranking that emphasize the progress or regress of each country. Using this reports the paper try to make a clusters analysis of world country by responsible competitiveness, national competitiveness and corruption. The main idea of this paper is to split the countries in three categories of clusters - innovators, asserters and beginners - in relation between responsible competitiveness and national competitiveness - and - stars, asserters and beginners - in relation between corruption and national competitiveness. Within the three clusters, countries…
Measuring International Competitiveness of Romania by Using Porter's Diamond and Revealed Comparative Advantage
Abstract International competitiveness generate a number of challenges because creates profitability for companies, welfare for citizens, sustainable prosperity for the economy as long as it is perceived as a constructive concept. The aim of present paper is to identify the international competitiveness of Romania by analyze the competitive advantage and disadvantage according to Porter‘s Diamond, on one hand, and by calculate revealed comparative advantage according to Balasa, on the other hand. The results show that Romanian has more competitive disadvantage than competitive advantage, even if by comparison with European Union, Romania has some revealed comparative advantage.
Interrelations between competitiveness and responsibility at macro and micro level
PurposeThe purpose of this paper is to emphasize that the growing of competitiveness at any level may be possible through more responsibility (business ethics) on the one hand and less corruption (as lack of business ethics) on the other.Design/methodology/approachThe objective of the paper is to identify the double‐way relationships between competitiveness and the responsible (beyond ethics) behaviour. In order to do this, the authors used correlation indexes CORREL and R2 and the graphic representation able to illustrate the above‐mentioned interrelations.FindingsThe authors observed that there is a strong and direct correlation between GCI, RCI and CPI – at national level, and six possib…
Competitiveness, Economic Freedom and Real Exchange Rate. Evidence from Romania
In the new context of European Integration, Romania has to improve some important macroeconomic indicators, such as: competitiveness, economic freedom and real exchange rate for a sustainable economic growth. Many authors emphasize that competitiveness and economic freedom affects economic growth through stimulating investment and business environment. The equilibrium exchange rate is crucial as it directly influences external competitiveness, especially through export prices. For Romania, the competitiveness can be improved through the economic freedom growth and the real exchange rate appreciation. But this appreciation must be accompanied by a rise in productivity and in the quality of t…
Integrating Holistic Marketing into the Stakeholder Management Approach
The context of globalization and the growing pressures toward sustainable development are nowadays forcing firms to deal with a paradoxical situation: while undeniable engines and major beneficiaries of globalization, businesses are also sources for significant negative externalities that impact on the dynamics of the global system. In these circumstances, the sustainable business should not only represent a major strategic challenge but must also become an effective strategic solution. This is the transformational shift we are advocating for in this chapter, by the instrumentality of a strategic model that integrates holistic marketing into the stakeholder management approach. Based on an …
Leveraging tangible and intangible assets by using a possible firm competitiveness index
More and more, in order to achieve global competitiveness, firms need to develop and apply unique and dynamic competitiveness models. With this paper, we propose an index that measures firm competitiveness by taking into consideration some tangible and intangible assets. This index demonstrates the fact that a firm is highly competitive as long as its managers are able to mix the tangible and intangible assets in the most effective and efficient manner; therefore, a firm can get the same score of competitiveness by using different combinations of assets and by giving different importance coefficients to the tangible and intangible assets.
An Overview on European Union Sustainable Competitiveness
Abstract The last few years have emphasized a continuing concern of many institutions, nations, companies for sustainable development. The recent literature brings into attention the concept of sustainable competitiveness beyond sustainable development. The main idea of sustainable competitiveness is reflected by the searching of a model that could balance economic prosperity, environmental issues and social sustainability. In this context, is shaping the sustainability-adjusted global competitiveness index that take into consideration two new dimensions – environmental and social. Practically, the triple bottom line concept will be extrapolated from the microeconomic level to the macroecon…
Does Capital Structure Influence Company Profitability?
Abstract Every company has a different structure of balance sheet. Some of the companies have more liabilities than equity. Considering the industry or debt-to-equity ratio, the balance sheet structure affects the company profitability measured by DuPont system. The main objective of the paper is to analyze the structure of balance sheet and to identify some optimal levels in order to increase company profitability. The DuPont returns like ROA (return on assets) and ROE (return on equity) will be used to measure the company profitability, while the debt-to-equity ratio will be used as a measure (reflection) of capital structure. The samples consist on the most profitable non-financial compa…
Searching for new paradigms in a globalized world: Business ethics as a management strategy
The process of globalization is an undeniable reality of today's world. Yet, paradoxically, the cornerstone of this phenomenon, economic performance, varies widely across the world whatever indicator (for example, GDP/habitant, competitiveness) we choose to use to compare countries. Increasingly, studies tend to explain this apparently paradoxical situation with reference to the issue of corruption and ethics. In essence, corruption is perceived to be an important impediment to the economic development of a country (or area). Many studies of corruption are focused at the national level. The aim of this conceptual paper is to explore the role of the firm (as opposed to national states or int…
Measuring Firm Performance: Testing a Proposed Model
Abstract Firm performance is a very complex and exhaustive concept. It can be related to many factors: starting with variables from balance sheet, income statement or cash-flow statement, continuing with research and development expenses or IT competences, and last but not least with intangible assets like human capital, goodwill, or brand value. The purpose of the present paper is to develop and test a model in order to measure firm performance by considering US companies that are ranked into the Global Fortune 500. In this study we used control variables (assets growth rate, net income growth rate and revenue growth rate) and depended variables – return on assets (ROA), debt to equity, re…
CSR Strategies in Emerging Markets
The purpose of the chapter is to emphasize on the roles of businesses – as an effective (sustainable) development agent in emerging markets, on one hand, and of their CSR strategies – as an efficient sustainable development tool, on the other hand, in order to identify valuable business practices able to lead the emerging markets towards sustainability – through socially responsible decision making processes at business level. Having in the fore-ground the ideas of sustainability (which basically is a macro-economic concern) and responsibility (and especially its micro-economic correspondent that usually embraces the form of CSR), it will try to discover the general and specific features of…
Valorificarea capitalului intelectual - criteriu pentru performanta manageriala in societatea bazata pe cunoastere
If we can see the knowledge society as an essential part of the “external environment” of the firm management, that brings with it some specific opportunities and threats, we have to consider the intellectual capital – that integrates the two basic resources: knowledge and human – a key ingredient for the “internal environment” of the firm management, which determines some strengths and/or weaknesses that lead to the success or the failure of the managerial effort of the firm operating under the circumstances given by the emergency of three processes with global spread: the economic globalization, the managerial revolution and the knowledge-based society. Having as starting point the premis…
Business Models Addressing Sustainability Challenges—Towards A New Research Agenda
From just another buzzword a few decades ago, sustainability has become a hot topic on strategists&rsquo
Creating Value – From Corporate Governance to Total Shareholders Return. An Overview
Abstract The term “value” can be interpreted in a subjective way, depending about what we refer at. Usually the firm's value is related to the financial performance: profitability, cash flow, liquidity, solvability, etc. A corporation can create and in some cases reduce value for its stakeholders. Also, a corporation can create value for the stakeholders by simply creating jobs, paying taxes and help the population to improve their financial situation. The aim of the paper is to describe the process of value creation starting with corporate governance, continuing with stakeholders’ expectations and finishing with shareholders requests.
The dynamics of the financial capital – intellectual capital binomial relationship regarding the value creation process of a firm in the knowledge-based society
The idea that the value of the firm is given by its financial capital and its intellectual capital is generally accepted. But, what is changing nowadays is the importance/weight that each one of these two components claims to have regarding the value of the firm – based on the dynamics of the changes and the intensity of the competition within an industry, on one hand, and on the measure of connection/networking to the knowledge-based economy of the given industry, on the other hand. So, we are the witnesses of: (1) a repositioning into the dynamics of the financial capital – intellectual capital binomial relationship regarding the value creation process of a firm and (2) the need to reform…
Wealth, Competitiveness, and Intellectual Capital – Sources for Economic Development
Abstract National wealth, national competitiveness and national intellectual capital were major objectives of a nation in the last century. By this paper we identify strong interrelations between national wealth, national competitiveness and national intellectual capital according to Pearson, R and R 2 results. These interrelations demonstrate that national wealth, national competitiveness and intellectual capital are important sources for increasing the economic development based on data from 40 developed, emerging and developing countries.
Some Insights on the Changing Architecture of the World’s Top 100 Multinationals
Abstract Premise: globalization represents both the fertile background and the accountable foreground that accompanies the evolution of TNCs/MNEs, within a self-enforcing spiral of co-evolution which gratifies the winners and discards the losers. Argument: UNCTAD’s Top 100 non-financial TNCs/MNEs gathers together, since 1993, some of the most prominent winners of the above mentioned processes, making this instrument one of the best indicators and benchmarks in terms of both globalization and transnationalization – when analyzed at a given moment in time (for a particular year), and even more relevant when analyzed dynamically and by comparison. Context: two major global shifts have occurred…
Drivers of Firm Performance: Exploring Quantitative and Qualitative Approaches
Abstract The main purpose of this paper is to identify the drivers of firm performance by exploring both quantitative indicators - based on accounting profitability, shareholder value and economic value – and qualitative approach – based on balanced scorecard and triple bottom line. A literature review will be provided in order to obtain an optimum mix of quantitative and qualitative drivers for firm performance, on one hand, and a case study will be conducted for emphasizing the importance of both approaches, on the other hand.
Corporate Sustainability – From a Fuzzy Concept to a Coherent Reality
Abstract During the last few decades, the search for sustainability has experienced a tremendous momentum, encompassing all the levels of the global system. Fuelled by complex (both proactive and reactive) motivators, the process has surpassed the characteristics of an intellectual endeavor – more preoccupied by idealist goals, and less focused on the actual means to achieve them – and has proved that it can successfully be transposed into the corporate real world – of decision making, objective assessment, and relentless scrutiny. The paper aims to (broadly) explore the world of the most sustainable corporations – based on a descriptive (factual and dynamic) analysis of Corporate Knight’s …
Performance Management Systems – Proposing and Testing a Conceptual Model
Abstract The utility of performance measurement and management system can be said to have been proven, but the problem faced by both the theoreticians and practitioners is to set the right performance indicators. Developed models are tools that managers can use to measure and manage performance, but they need to be tailored to the context. Also, the trend towards using non-financial performance indicators makes it very difficult for managers to design a performance measurement and management system because it involves the integration of qualitative and non-quantitative variables and a profound understanding of the internal and external environment of the company.
Romania’s SMEs on the Way to EU’s Twin Transition to Digitalization and Sustainability
Abstract European Commission’s six priorities for 2019-2024 are all in line with and leverage each other to support Europe’s twin transition to digitalization and sustainability; aiming to address the challenges posed by the COVID-19 pandemic, The Recovery Plan for Europe adds resilience as key dimension of EU’s progress, while reinforcing its commitment to the green and digital transformation. Counting for more than 99% of the enterprises, employing about two of three people, and generating more than a half of the value added - with similar weights as concerns Romania - EU’s SMEs are the engine of Europe's economy, therefore essential contributors to these transformative processes - as emp…
The influence of culture on the economic freedom and the international business
The firms who decide to expand their business in an international environment must modify their management style through international management. Certainly, international management must adapt their on functions to the different framework of the business development. The culture is a cardinally factor, being an essential component in the success equation of multinational companies. The culture, the habits and the attitudes became points of major interests on the global market. Their importance is obvious through numerous "blunders" which find out in international trade and international. For the success of international business the economies must bees free, but the economic freedom is inf…
Integrated Administration of the Organizations Informational Resources
Organizations grow and develop continuosly and information volume grows in the same rythm, which makes from improvement or changing the old counting systems an imperative. More and more companies, instead of continuing to invest in small applications choose integrated informational solutions, which are adapted to the user’s daily needsfrom, all decisional levels. Although apparently profitable from the costs point of view, small applications assure only the simple economical solutions between clients, partners, furnisors, and employees. For high business volume companies, this kind of applications become useless in a short time, fact that involves extra sustained investitions
The Investment on Capital Market: From Target Price Valuation Models to Investor Final Decision
The investments on capital market are more attractive nowadays considering the short-term potential earnings that this particular market can offer but also the opportunities generated by the new entry companies. The aim of the paper is to present different valuation models of share in order to identify/calculate a target price, on one hand, and to emphasize the impact of both internal and external information on price per share, on the other hand. The target price is an important instrument that drives, alongside with industry, financial, and risk analysis, the investment decision to buy, to hold, and to sell. The key issues in determining target price are equity analysis, cash flow forecas…
Financing Small Businesses: From Venture Capital to Crowdfunding
Abstract Startups and small businesses are facing many challenges in terms of financing their activities. These types of companies do not have the possibility to access capital market or to make IPO or to borrow money from banks like big, mature or well-known companies (who were at their beginnings startups or small businesses). They have to find different sources for financing their ideas/products/services that are in many cases very risky, hazardous or to ambitious. But, fortunately, the financing alternative for these companies have evolved during the last post crisis years. They have possibility to find some investors that are willing to invest in a non-name company by accessing crowdfu…