Consistency of strategic and tactical benchmarking performance measures

The mediating role of human capital and management accounting information system in the relationship between innovation strategy and internal process performance and the impact on corporate financial performance

Purpose

Analyze the importance of sustainable innovation strategy applied in manufacturing companies in Indonesia which affects the company's financial performance through several mediating variables.

Design/methodology/approach

The population in this research was medium and large manufacturing company business units in East Java. Business units are part of a company considered as the profit center. The business unit as the unit of analysis in this research is part of the organization that: (1) is responsible for the production and marketing of a product or set of products; (2) is formed by product type; (3) has its own competitors which are different from competitors of other business units or divisions within a parent company; (4) has a manager who is responsible and has authority over the planning and implementation of strategies to achieve the specified profit target.

Findings

Innovation strategy has a significant effect on financial performance. Human capital does not significantly mediate the relationship between innovation strategy and financial performance. Capital performance and internal performance do not mediate the relationship between innovation strategy and financial performance. Management accounting information system does not mediate the relationship between innovation strategy and financial performance. Internal process performance mediates the relationship between innovation strategy and financial performance. Management accounting information system and internal process performance mediate the relationship between innovation strategy and financial performance.

Originality/value

The difference in findings confirms that this research needs to be conducted. On the other hand, there is no research that has comprehensively tested the mediating effects of Human Capital and Management Accounting Information System in the relationship between Innovation Strategy and Internal Process Performance and the Impact on Corporate Financial Performance. The originality of this research can be seen in the use of contingency theory which narrows the gap between the industrial organization (I/O) paradigm and the resource-based view (RBV) regarding competitive advantage and performance. Specifically, this research introduces innovation strategy, human capital, management accounting information system, and internal business process performance as the contingency factors that affect financial performance. Second, empirically, this research tries to reduce the gap in empirical research by offering new research model and new research establishment at the level of strategic business units (SBU) in manufacturing companies in East Java. This research is expected to be useful for policy decision making, especially for managers who want to improve strategic business unit's financial performance.

An analysis of a structured benchmarking project

Purpose

The purpose of this paper is to investigate a benchmarking project carried out by the Dubai Electricity and Water Authority (DEWA) as part of a structured benchmarking initiative. The project was based on the TRADE benchmarking methodology and this paper examines the tools, activities and outcomes that relate to each stage of the adopted methodology.

Design/methodology/approach

This study is based on case study methodology. Data were collected from various sources including analysis of project reports written by DEWA’s benchmarking team reporting on their activities during the project. Data were also collected from four project presentations given at different stages of the project. In addition, the research team held three meetings with the DEWA benchmarking team at different stages of the benchmarking project.

Findings

The results show the key challenges and successes faced during each stage of the benchmarking project. It indicates the actions taken to overcome the challenges and the role played by internal and external stakeholders in facilitating the success of the benchmarking project.

Practical implications

The study presents information that would guide organisations that wish to carry out a benchmarking project – and particularly those implementing benchmarking for the first time. The study provides a summary of the key lessons learnt by DEWA’s benchmarking team as a guide for other organisations.

Originality/value

Academic research has not adequately examined and analysed the stage-by-stage elements of a benchmarking project from the perspective of the implementing organisation. This study addresses this gap by detailing and analysing the experiences of a benchmarking project by tracking the stage-by-stage activities of the benchmarking team.

The benchmarking of the use of toolkit for mass customization in the automobile industry

Purpose

The purpose of this paper is to examine the relation between the utilization of the customization strategy and the availability of the online toolkit and its features with the commercial variables of businesses.

Design/methodology/approach

The sample used in this paper consists of 134 cases of corporate brands in the automobile industry; their sales correspond to 49.12 percent of vehicles produced in 2012. The logistic regression analysis was then applied to the sample.

Findings

This paper confirmed the relationship between the use of toolkits for customization and business variables, like vehicle sales.

Originality/value

The generated model allows the prediction of market conditions which recommended to provide the toolkit for customization, and if implemented, what combination of features it must have.