An important parameter to gauge the reasons behind success (failure) of a firm in the form of sustainable growth rate provides useful insights to managers and investors. This research analyzes the variations in calculations and suitability of method of calculating this growth rate using two different formulas. It also intends to examine the extent to which these variations in sustainable growth rate are explained by some of its important determinants. Using panel data regression by decomposing return on equity into net profit margin, asset turnover and financial leverage, results suggest that four key ratios are robust in capturing the variations in sustainable growth rate even after introducing industry-specific factors like industrial growth and inflation in the regression equations. Sustainable growth rate calculated only on the basis of percentage change in book value of equity provides an aggregate view depicting that any changes in sustainable growth rate across industries are random. Further analysis provides evidence that net profit margin drives the sustainable growth of firms in the Indian manufacturing sector.
Purpose Reverse logistics (RL) is a strategic instrument across industries. The rapid evolution of online marketplaces has led to frequent product returns with variations across diversified businesses. These marketplaces have caused potential losses due to fraudulent returns, hence requiring a commitment of resources to RL. With information systems (IS) playing a role in improved supply chain performance, the purpose of this paper is to analyse the impact of a conceptualized IS framework on achieving RL strategic outcomes, under the individual moderating influence of resource commitment (RC) and return frequency. Design/methodology/approach Data have been collected through a questionnaire from top to middle management executives managing the supply chain, logistics and IS. Moderated regression analysis was conducted on the collected sample using Hayes’ (2013) process modeling. Findings The study depicts that IS capability, IS for logistics, IS partnership quality and IS for value addition lead to RL strategic benefits. Also, return frequency and RC act as relatively strong moderators with a negative impact. When analyzed for the individual IS constructs, RC has a stronger moderating impact than return frequency. Practical implications The IS usage framework can be used effectively by practitioners for enhancing strategic RL performances depending on variations in committed resources and return frequency for individual industries. Originality/value The study proposes an IS usage framework for achieving enhanced RL strategic outcomes and emphasizes on the moderating role played by RC and return frequency for producing the results.
Purpose The purpose of this paper is to evaluate the suitability of cloud computing for small and medium-sized enterprises (SMEs) in India. Design/methodology/approach Literature review is used to identify benefits, challenges, and factors concerning usage and adoption of cloud computing by SMEs. A conceptual framework was developed based on the existing theoretical models and factors identified from the literature. A survey based on questionnaire method was followed to collect data from 121 manufacturing SMEs in India. The conceptual framework was refined by using factor analysis, and multiple regression analysis was used to test the hypotheses. Findings Major benefits of cloud computing for SMEs include cost advantage, easy deployment process, easier access to latest information and communication technologies, automatic updates and upgrades, scalability, flexibility, and improved disaster recovery and back-up capabilities. The concern area includes perceived loss of control, vendor lock-in, security issues, reliability and availability issues, and internet connectivity and speed. The factors that are found significant include perceived benefits, top management support, competitive pressure, and perceived concerns. The model explained 73 percent of cloud computing adoption. Research limitations/implications The study is expected to make significant contribution toward body of knowledge pertaining to information technology adoption in SMEs. Practical implications The study is expected to provide SMEs an insight into real benefits and challenges associated with adopting cloud computing. The model can help SMEs in evaluating their readiness for adopting cloud computing and can ensure successful outcome of cloud computing adoption in SMEs. Providers are also going to be benefited through their enhanced understanding of SMEs’ requirements. Originality/value The proposed framework incorporates all the relevant factors including perceived benefits, perceived concerns, and other organizational and environmental factors to improve model’s predictive power.
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