The mediating effect of productivity on profitability in Indian construction firms

Cyril, Edison Jolly; Singla, Harish Kumar

doi:10.1108/jamr-05-2020-0092

Cited by 16 publications

(20 citation statements)

References 76 publications

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Section: Discussionsupporting

confidence: 91%

“…The results of the study confirmed that there is a relationship between size and market share growth and profitability, which supports the results of previous studies (Cyril and Singla, 2021;Kotey et al, 2021;Akhtar et al, 2022), as well as between age and market share growth. However, it should be noted that the relationship between age and market share growth is negative, meaning that as the age increases, the chances of an increase in market share decreases.…”

Section: Discussionsupporting

confidence: 90%

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A new angle on SMEs' competitiveness. How do agility capabilities affect a firm's competitive position?

Zastempowski

Cyfert

2023

JOCM

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PurposeThe paper aims to explain how agility capabilities (competence, flexibility, responsiveness and speed) influence the chance of improving a small and medium-sized enterprise's (SME's) competitive position, measured by market share and profit.Design/methodology/approachCombining organisational agility with competitiveness, the authors analysed how an SME's activities in the field of agility capabilities – competence, flexibility, responsiveness and speed – influence the chance of improving their competitive position. Data were collected from 1,286 SMEs from Poland using the computer-assisted personal interviews method (CAPI). To analyse the data, the authors used logistic regression and odds ratios.FindingsThe study provides empirical evidence of the relationship between agility capabilities and an SME's competitive position. First, the results suggest that all the studied agility capabilities positively impact SMEs' competitive position. Second, the study shows that seeking to increase market share requires particular attention to flexibility, the impact of which is slightly higher than that of the other variables. Third, the findings suggest that the drive to increase profitability requires an appreciation of responsiveness and competence.Originality/valueThe literature contains much discussion about the relationship between agility capabilities and a company's competitive position. However, these studies refer to large companies, whilst the question of the relationship between agility capabilities and competitive position amongst SMEs remains mainly unanswered, which given SMEs' contribution to the creation of economic growth, seems difficult to understand. Although small companies are by nature highly flexible, due to the size of the companies' operations and flattened and decentralised structure, companies' competitive potential is limited as a result of the limited resources that can be devoted to developing procedures for change.

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Section: Discussionsupporting

confidence: 91%

Section: Discussionsupporting

confidence: 90%

A new angle on SMEs' competitiveness. How do agility capabilities affect a firm's competitive position?

Zastempowski

Cyfert

2023

JOCM

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“…Construction productivity is the efficiency with which a firm converts inputs (resources like workforce, material, machinery, and money) to saleable outputs (work done or revenue earned). When productivity, which represents the execution efficiency of a construction contracting organization, is high, then the balance sheet tends to be healthy [ 47 ]. Three out of the four companies highlighted as lean-focussed are the top three companies in market capitalization.…”

Section: Discussionmentioning

confidence: 99%

Application of NLP-based topic modeling to analyse unstructured text data in annual reports of construction contracting companies

Jagannathan

Roy

Delhi

2022

CSIT

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The construction industry is the backbone of a nation’s economy. It is a matter of great concern that such an industry suffers from time and cost overruns, especially in these challenging times. Coupled with the overrun issues, the sector is often criticized for lacking adequate quality and quantity of structured secondary data. The emerging technologies in data science and machine intelligence present a unique opportunity to understand the sector better and aid in effective decision-making. To better understand the utility of such technologies, the Management Discussion and Analysis ssections of the annual reports of publicly listed top Indian construction contracting firms are analyzed to identify the presence of ‘strategy themes’ and further map them to the organizations considered. Natural Language Processing (NLP)-based topic modeling algorithms, namely Latent Dirichlet Allocation (LDA) and Non-negative Matrix Factorization (NMF), are used in this study to perform a qualitative content analysis to identify the latent themes. From a methodological standpoint, considering the context of this study, the NMF results are better in accuracy, precision, and recall compared with the LDA. The results show that while most construction contracting firms prioritized a ‘revenue-focused’ strategy to expand their order books, a smaller set of large-sized firms seem to prioritize process improvement to improve their execution productivity and therefore are ‘profit margin improvement focused’ or ‘lean-focussed’ in their approach. Although a proof-of-concept, this study unlocks the immense potential of unsupervised NLP-based topic-modeling tools to understand and infer from unstructured and freely available text data in the public domain to aid sectoral analysis and policymaking.

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“…Thus, companies can take more precise and careful steps to increase sales and profit. Besides that, Cyril and Singla (2021) maintain that firms that are older are more profitable. On the contrary, Rahman & Yilun (2021) found that older firms are less profitable than younger firms.…”

Section: Leverage and Profitabilitymentioning

confidence: 99%

“…The population of this study is manufacturing companies listed on the Indonesia Stock Exchange (IDX) from 2014 to 2020, with a total of 79 companies. The purposive sampling method was used to draw a sample of companies that have been established for at least 26 years in 2020, as we answered call from Cyril and Singla (2021) for study on age and profitability. It also includes only firms that have data available for all years studied (2014 -2020) since sales growth is one of control variable that requires complete data across different years.…”

Section: Population and Samplementioning

confidence: 99%

Working Capital Management and Leverage to Profitability: Case of Manufacturing Firms in Indonesia

Sany

Winata²,

Yasin³

2023

IJOBP

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This study aims to investigate whether Working Capital Management (WCM) and leverage affect firm profitability. Data concern was gathered from Bloomberg database terminal. Sample is manufacturing companies listed in Indonesian Stock Exchange (IDX) over the period of 2014 – 2020, which already established for some time. WCM is measured by using Cash Conversion Cycle (CCC), profitability is proxied with ROA while leverage is proxied by Debt-to-Equity. We find that the length of CCC days does not affect profitability, while the higher proportion of debt to equity will reduce profitability, on the other hand, the higher sales growth will enhance better firms’ profitability performance. Our findings contribute to understanding of the relationship of CCC and leverage on profitability in emerging markets.

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The mediating effect of productivity on profitability in Indian construction firms

Cited by 16 publications

References 76 publications

A new angle on SMEs' competitiveness. How do agility capabilities affect a firm's competitive position?

A new angle on SMEs' competitiveness. How do agility capabilities affect a firm's competitive position?

Application of NLP-based topic modeling to analyse unstructured text data in annual reports of construction contracting companies

Working Capital Management and Leverage to Profitability: Case of Manufacturing Firms in Indonesia

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