In this paper, we propose a national competitiveness index using raw Institute of Management Development (IMD) data and try to overcome a shortcoming in the IMD's own ranking system. The IMD world ...competitiveness ranking considers 20 factors to define an index, but it does not consider the structural relationships among various factors. We utilise a structural equation model to derive a national competitiveness index that reflects such structural relationships. We then reveal new rankings of world competitiveness. In addition, we conducted a comparison analysis by economy level and identified improvement points in terms of measurement variables as well as latent variables. Our work is expected to promote a new era of national competitiveness rankings and indices.
Purpose
This study aims to determine the factors that encourage Indonesian banks to collaborate in the banking networks ATM Prima and ATM Bersama to achieve business efficiencies.
...Design/methodology/approach
A combination of methods is used to collect both qualitative and quantitative data. Factor analysis and different testing technics are used. The data were obtained through interviews with managers of the banks involved in the two banking networks included in this study.
Findings
This research addresses ATM banking from three perspectives: banks that collaborate in ATM networks, banks that are joint ATM providers and banking customers that use ATMs. The results show that the banks in the study are more concerned about cost-effectiveness and cost-efficiencies in both the operational and investment aspects of supporting their ATM infrastructures. ATM providers place more importance on creating the most user-friendly, stable, wide-ranging and continuous system of services by collaborating with other banks in networks that provide ATM services. Customers put more importance on paying the minimum possible administration fees and the availability of specific banking services across a wide area.
Research limitations/implications
This research took place over a period of only one year. This limited the depth of the data collected. A longer study using data that cover more than one fiscal year would have generated more detailed information.
Practical implications
This study places importance on maximizing cost-efficiencies to keep bank fees low for customers. There are significant investment and operational costs associated with setting up and operating ATMs and of adding and managing additional ATMs. This is particularly so in an era when their use is on the decline owing to the increasing use of electronic banking.
Social implications
The social implications of ATM banking refer to the reduced administration fees customers pay as banks incur cost savings from collaborating on infrastructure and services. The availability of ATMs from specific banks could be replaced by one joint ATM machine that is situated in a specific area where electronic banking is not available. Banks’ customers tend to move to other banking services, and this means banks could lose a lot of their existing customers unless they can come up with unique services that are both accessible and user-friendly.
Originality/value
The originality of this research is that it recommends that some strategies Indonesian banks could use to become more efficient and effective, including forming ATM alliances to maximize efficiency and to achieve a competitive advantage.
This paper analyzes the latest trends in business reporting systems, with particular reference to the system of business reporting in the public sector. Bearing in mind the long-term, habitual mode ...of functioning of public enterprises, the introduction of business reporting is a major challenge. This will involve a change in mindset of all employees, especially managers, the new concept of operation of these enterprises. It is necessary to address the improvement of company performance and achievement of customer requirements, rather than focus on internal processes and procedures. This represents a great challenge and potential resistance to the introduction of business intelligence systems. The measurement results will become transparent and the decision will be made solely on the basis of the results. Analysis of the situation in the Serbian Tax Administration found that the current system of business reporting is not adequately addressed. This situation greatly complicates tax administration aimed to become a modern, client-oriented organization. Establishing a business reporting system will provide the basis for improving business efficiency and decision making in this institution.
Credit guarantees and SME efficiency Garcia-Tabuenca, Antonio; Crespo-Espert, Jose Luis
Small business economics,
07/2010, Volume:
35, Issue:
1
Journal Article
Peer reviewed
The aim of this article is to analyse one of the most traditional SME-support measures, the allocation of guarantees by the Spanish guarantee system. A counterfactual approach is adopted to evaluate ...the result of a public policy. Three groups of companies that constitute the casuistry of long-term financial supports to companies (guarantees, guarantees and preferential funding, or just preferential funding), as well as another two control groups are studied. The results suggest that public support is relevant at economic, financial and business efficiency levels. The advantages can be observed mainly in the weakest companies, where the capacity to tackle projects is facilitated, although they do not manage to reduce their financial costs until they reach relative levels similar to those reached by companies not accessing the guarantee system.
Understanding the current and future needs of the market, and knowing how to fulfil them, is the task of any successful economy. Companies wanting to be in step with the development of modern economy ...are trying to reorient their business regarding its organization, technology and information processes in order to increase their business efficiency. Thus, an adequately established and organized system of internal control, as well as a properly designed and highly efficient organizational structure also represents one of the challenges of a modern enterprise. Therefore, the combination of the internal control system and profit centres is the system which reduces the probability of errors and possible fraud to a minimum and is a prerequisite of efficient business.
ENGLISH ABSTRACT: Many South African companies are adopting the shared services methodology because this structure has led to lower operating costs, greater business efficiency, and improved internal ...service quality in international companies. Part of a doctoral study on shared services in South African companies shows that their business unit managers have not yet experienced positive rewards from their shared services. This article reports on this study, and suggests a larger-scale research project to validate these findings and to investigate the reasons for the poor performance.
AFRIKAANSE OPSOMMING: Baie Suid-Afrikaanse maatskappye maak toenemend gebruik van die ‘shared services’- metodologie omdat die struktuur daarvan kan lei tot ʼn afname in operasionele koste, verbeterde besigheidseffektiwiteit, en verhoogde diensgehalte in internasionale maatskappye. ʼn Doktorale studie oor ‘shared services’ in Suid-Afrikaanse maatskappye wys daarop dat individuele besigheidseenheidsbestuurders nie ʼn positiewe belewenis het met ‘shared services’ nie. Hierdie artikel verwys na dié studie, en stel voor dat ʼn meer omvangryke navorsingsprojek onderneem word om die bevindinge te staaf, sowel as om die redes vir swak prestasie te ondersoek.
In an era where business efficiency and financial optimization are paramount, Artificial Intelligence (AI) emerges as a transformative force in cost management strategies. This survey paper explores ...the multifaceted role of AI technologies in enhancing business operations, with a focus on reducing expenses and improving profit margins. Through a systematic review of current literature and an examination of various AI applications-ranging from Machine Learning (ML), Natural Language Processing (NLP), to Robotics Process Automation (RPA)-we delve into the mechanisms through which AI facilitates predictive analytics, operational efficiency, and decision-making processes. We present a comprehensive analysis of mathematical models and algorithms that underpin AI's cost management capabilities, including regression analysis, time series forecasting, and optimization algorithms for resource allocation. Comparative results highlight the effectiveness of these technologies in real-world scenarios, underscored by graphical analyses of cost savings and return on investment (ROI). Despite the promising advancements, we discuss the challenges faced by businesses, such as ethical considerations and potential job displacement. The paper concludes with future directions for AI in cost management, offering insights and recommendations for businesses aiming to leverage AI for financial optimization. This study not only bridges the gap in literature but also serves as a guide for integrating AI into cost management strategies.
Taking as a basis for discussion the Schumpeter’s innovation theory, this paper analyses the relationship between enterprises activity in the field of research and development, and their efficiency ...at the core business level. This analysis was performed in two ways – with the assumption shift in time between research and development activities and companies business efficiency, and without it – using the Spearman’s rank correlation coefficient. The sample was accounted for 252 companies from the technology sector, whose shares are traded on NYSE or NASDAQ, and the analysis time period consisted of three years (2011–2013). The results obtained in the course of analysis generally indicate lack of strong relationship between distinguished categories. A noticeable, but only at moderate level, positive correlation was found in both considered approaches only in respect of the relationship between the intensity of expenditures on research and development or y/y change of these expenditures and gross margin on sales. Therefore, it seems to be relevant to extend this research at least in such directions as: identification and characterization of factors determining efficiency of companies research and development activities, as well as examination considered relationship taking into account business diversity within the sector and wider time shift between realized research and development activities and various measures of core business efficiency.
SMEs sector plays a vital role in modern economies. Therefore, the interest in its functioning
among economists is in fact quite natural. This article is a part of a current research on
regional ...factors contributing to the development of enterprises in this category.
The first section examines earlier studies in this field conducted globally and in Poland.
According to them, many elements enable the SME’s development. It is not surprisingly that
the specified set of pro-growth factors does not exists.
Next section describes the results of the author’s own studies in the fields. These studies
relate to regional factors contributing to the efficiency growth of micro, small and
medium-sized enterprises in Poland. Data used in the study was collected from GUS1 and
EUROSTAT and encompassed 16 provinces for the years 2003-2008. The model prepared
included 11 independent variables on labor force, social mobility, living standard and R&D
policy. The authors would have gladly considered more than 11 explanatory variable, but
the inaccessibility of such data made it impossible. In the next step, using GRETL software,
equations of regression were defined. On this basis it was concluded that the most important
factors contributing to efficiency growth of SMEs are the amount of spending on R&D and
the level of wages.
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