The impact of external market factors on operational practices and performance of companies

Demeter, Krisztina, Matyusz, Zsolt and Szigetvári, Csenge (2012) The impact of external market factors on operational practices and performance of companies. Society and Economy, 34 (1). pp. 73-93.

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The links between operational practices and performance are well studied in the literature, both theoretically and empirically. However, mostly internal factors are inspected more closely as the basis of operational performance, even if the impact of external, environmental factors is often emphasized. Our research fills a part of this existing gap in the literature. We examine how two environmental factors, market dynamism and competition impact the use of some operational practices (such as quality improvement, product development, automation, etc.) and the resulting operations and business performance. The method of path analysis is used. Data were acquired through an international survey (IMSS – International Manufacturing Strategy Survey), which was executed in 2005, in 23 participating countries in so called "innovative" industries (ISIC 28-35) with a sample of 711 firms. Results show that both market dynamism and competition have large impact on business performance, but the indirect effects, through operations practices are rather weak compared to direct ones. The most influential practices are from the area of process and control, and quality management.

Item Type:Article
Uncontrolled Keywords:operational practice, operational performance, business performance, market dynamism, competition, path analysis
Divisions:Faculty of Business Administration > Institute of Business Economics > Department of Logistics and Supply Chain Management
Subjects:Logistics, production management
Management, business policy, business strategy
Funders:János Bolyai Research Fellowship Program
Projects:TÁMOP-4.2.1/B-09/1/KMR-2010-0005, OTKA T 76233
ID Code:936
Deposited By: Ádám Hoffmann
Deposited On:12 Oct 2012 10:08
Last Modified:13 Dec 2021 09:37

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