The Impact of Diversification Strategies and Operational Capabilities on Financial Performance in Thai Professional Service Firms

Thirathon, Usarat; Meeprom, Supawat

doi:10.20469/ijbas.6.10003-1

Cited by 4 publications

(4 citation statements)

References 61 publications

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“…The results highlighted that operational capabilities not only influence the SMEs’ performance but act as a mediator between MO and SMEs performance, and SC orientation and SMEs performance. Thirathon and Meeprom (2020) also found that operational capabilities can help firms in increasing their performance. Thus, H8, H10, and H12 are accepted.…”

Section: Discussionmentioning

confidence: 97%

Market and Supply Chain Orientation; Dynamic Capabilities Leading to Innovation and Operational Capabilities

Al Azzani,

Mat Jusoh,

Abbas

2024

Sage Open

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SMEs always need survival tools or strategies such as orientation and capabilities to survive in the competitive market, as they can help in improving performance. Therefore, this research has highlighted important capabilities and orientations influencing SMEs’ performance in Oman. It has examined the effect of supply chain orientation and market orientation on SMEs’ performance with mediating role of innovation capabilities and operational capabilities. Moreover, it investigated the role of strategic flexibility as a moderator between innovation capabilities and SMEs’ performance in Oman. The survey method was used to collect primary data from managers and supervisors of SMEs functional in Oman. Data analysis was done using AMOS, and structural equation modeling (SEM) was conducted. The moderation was examined by using the Hayes process macro on SPSS. The results revealed that market orientation and SC orientation positively influence SMEs’ innovation capabilities, operational capabilities, and performance. These capabilities also help in enhancing performance. Moreover, they mediate the relationship between “supply chain orientation and SMEs’ performance” and “market orientation and SMEs’ performance.” Furthermore, strategic flexibility does not moderate the effect of innovation capabilities on SMEs’ performance.

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Section: Discussionmentioning

confidence: 97%

Market and Supply Chain Orientation; Dynamic Capabilities Leading to Innovation and Operational Capabilities

Al Azzani,

Mat Jusoh,

Abbas

2024

Sage Open

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“…According to Thirathon and Meeprom (2020), operational capabilities comprise of processes, aptitudes and routines specific at each unit of business and have been developed with operation management system and regularly applied in solving problems through configuring more resources. Bleady and Bleady (2018) further views operational capability as an integration of composite set of tasks executed by a firm aiming at enhancing its output level through application of the most efficient and effective production capabilities, material flow and technology.…”

Section: Operational Adjustment Capabilitymentioning

confidence: 99%

Strategic Capabilities and Performance of Selected Media Firms in Kenya

2023

JIBM

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The current study sought to establish how strategic capabilities affects performance of selected media firms in Kenya. The study specifically sought to establish the effects of information technology, operational adjustment, knowledge management and market linking capabilities on performance. The target population was five selected media firms in Kenya. The unit of observation comprised of 490 employees occupying managerial positions in the selected media firms. Yamane sampling formula was employed in selecting a sample of 220 respondents. Primary data was collected through a questionnaire. Both inferential and descriptive statistics were employed and generated through SPSS software and MS Excel. The results revealed that strategic capabilities bear a positive and significant correlation with performance of selected media firms. Additionally, strategic capabilities bear a positive and significant effect on performance of selected media firms. This has implications that when one of the variables is increased with one unit, performance of the selected media firms increases with the respective beta values. The study recommended that the management of media firms enhance and promote their strategic capabilities since the practices bear a positive and significant effect on performance levels of the firms.

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“…Portfolio diversification is the process of combining various assets aiming at reducing the general risk related with the entire organizational portfolio referred to as unsystematic risk (Thirathon & Meeprom, 2020). A well-mixed portfolio attained on different types of investments bears the capabilities of yielding high returns with reduced risks compared to individual investment thus creating a positive financial impact, performance and stability.…”

Section: Background Of the Studymentioning

confidence: 99%

“…A portfolio return solely depends on the risk and in order to minimize the risks accompanying individual asset portfolio, micro finance institutions opts for diversification. In the diversification, portfolio assets are mixed with the portfolio aiming at maximizing returns while minimizing risks (Thirathon & Meeprom, 2020). The risk premium however varies from nation to nation and is particularly high in developing and emerging markets due to risk and volatility attached to such markets.…”

Section: Background Of the Studymentioning

confidence: 99%

Portfolio Diversification and Financial Performance of Microfinance Institutions in Nairobi County, Kenya

Nyabiba,

Kimani

2023

IJF

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Purpose: The current study sought to establish the effect of portfolio diversification on financial performance of microfinance institutions in Kenya. The study focused on establishing the effects of asset class diversification, risk profiling diversification, income diversification and locational diversification on performance of microfinance institutions in Kenya. The study was supported by Shiftability Theory, Capital Market Theory, Resource Based Theory and Balanced Score Card Theory. Methodology: A descriptive research design was used and targeted 57 micro finance institutions operating in Nairobi County and registered under Association of Micro Finance Institutions. The unit of observation comprised of employees in top level management including chief financial officer, operational manager, and chief manager making a total of 171 respondents. The study employed a census approach. Both primary and secondary data were utilized in the study. Primary data was gathered using a five point Likert scale questionnaire while a secondary data collection sheet was utilized to collect secondary data from financial reports of the respective institutions. Both descriptive and inferential statistics was used to analyze the collected data. The statistics were generated through Statistical Package for Social Scientists and MS Excel. Findings: The results were displayed in form of tables. The study established that portfolio diversification comprising of asset class, risk profiling, and income diversification positively and significantly affect financial performance of the MFIs operating in Nairobi County as shown by respective beta values of 0.318, 0.288 and 0.498 and significant values of 0.000, 0.005 and 0.000. This bears the implications that enhancing aspects of each of the portfolio diversification contributes to improved financial performance of the institutions. Locational diversification on the other had had a positive but insignificant effect on financial performance of the MFIs (beta=0.103, sig=0.000>0.05) which implies that enhancing aspects of locational diversification contributes insignificantly to financial performance of the MFIs. Unique contribution to theory, practice and policy: The study provided recommendations to the management of the MFIs to enhance the levels of asset class diversification, risk profiling diversification, and income diversification since the practices bears positive and significant effect on financial performances of the MFIs.

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The Impact of Diversification Strategies and Operational Capabilities on Financial Performance in Thai Professional Service Firms

Cited by 4 publications

References 61 publications

Market and Supply Chain Orientation; Dynamic Capabilities Leading to Innovation and Operational Capabilities

Market and Supply Chain Orientation; Dynamic Capabilities Leading to Innovation and Operational Capabilities

Strategic Capabilities and Performance of Selected Media Firms in Kenya

Portfolio Diversification and Financial Performance of Microfinance Institutions in Nairobi County, Kenya

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