Nopadol Rompho

Measuring the success of a performance measurement system in Thai firms

Purpose - This study aims to identify what managers involved in the design of a performance measurement system (PMS) perceive are the attributes of a successful PMS. Design/methodology/approach - A total of 85 managers from Thai firms were interviewed to develop the proposed model to measure the success of a PMS. Results from 269 returned questionnaires from Thai managers were analysed by second order confirmatory factor analysis (CFA). Findings - Based on the studys findings, success of PMS was categorised into two aspects: design success and implementation success. Using CFA the empirical data demonstrate a good fit with the proposed measurement model. Research limitations/implications - The results of this study are based on the opinions of managers and therefore their accuracy is open to question. Adding non-managerial perspectives might demonstrate another picture. Practical implications - The findings could well be useful for managers in any organisation. They can assist the manager in judging whether or not the companys PMS is successful according to the discovered criteria. Use of these criteria could lead to better decision-making in the design and implementation of a PMS framework in any organisation. Originality/value - This study enhances the body of knowledge by defining what a successful PMS means to managers in Thai firms. The results of this study can be applied to any country, but perceptions of what is important could vary from country to country.

Application of the Economic Value Added (EVA) Protocol in a University Setting as a Capital Budgeting Tool

This paper attempts to propose the uses of a capital budgeting tool, the Economic Value Added (EVA)for a university. Although there are reports of widespread use of the EVA in many for‐profit organisations, there is no evidence in literature that it has been adopted as a capital budgeting tool for a university. In this paper the application of the EVA for a university is proposed. It shows how the EVA can increase the awareness of the importance of asset utilisation in universities and guide universities to better resource management. EVA is proposed for use in a university setting in two different segments: for‐profit and non‐profit. The EVA has been adjusted with a new measure, Academic Value Added Ratio (AVAR) to reflect the university’s objective. The perception of academic staff in the case study university in Thailand with regards to the concept of applying the EVA to a university is further investigated. The results indicate that most members of management staff do not oppose this concept if it is implemented in a proper way.

Comparison of Group Decision Making in Japan, Thailand, Vietnam, and Russia Using a Business Game:

Background. Numerous preceding research studies have analyzed the relationship between strategy and culture through questionnaires and case studies. However, very few regard the input results of a business game’s decision making variables as strategy. Moreover, few conduct an analysis using the same scenario, under a controlled environment from the perspective of experimental business management studies, while using adult subjects with similar characteristics. Aim. This study compared the group decision making of Japan, Thailand, Vietnam, and Russia, particularly analyzing each culture’s influence on strategy. We verified the relationship between the cultural dimensions used in the GLOBE project and strategies within the business game. Method. This was a mixed methods study on the relation between cultural dimensions and business game entry strategies, based upon data collected by observation using a quasi-experimental approach that includes questionnaires and business games, and utterance analysis by counting the frequency of words. Findings. Countries differ in their tendencies to engage in sharing, with an emphasis on strategies such as, product differentiation differentiation, being marketing emphasized, or cost saving. Further, we could confirm relationships between several cultural dimensions and strategy.

Operational performance measures for startups

Purpose The purpose of this study is to investigate the uses of performance measures in startup firms, including perceived importance and performance of those measures. Design/methodology/approach The survey method is used in this study. Data are collected from founders/chief executive officers/managers of 110 startups in Thailand. The correlation analysis and analysis of variance techniques are used as the analysis tool in this study. Findings The results show that there is a positive relationship between the perceived importance and the performance of each metric. However, no significant differences are found in the importance and performance of each metric among the various stages of startups. Research limitations/implications Because there are so few startups compared to large corporations, the sample size of this study is relatively small, which is a limitation for some statistical tests. Practical implications Startup should measure and monitor the correct metrics in a particular stage, instead of trying to perform well in all areas, which will lead them to lose focus, and possibly even fail. Results obtained from this study will aid startups in properly monitoring and managing their performance. Originality/value Unlike large corporations, the performance measures used by startups vary, and depend on a startup’s stage and type. Because of the fact that there are much fewer startups than large corporations, there are a limited number of studies in this area. This research is among the first studies that try to investigate the uses of performance measure for this new type of organizations.

HC and financial performance with two HRM strategies

Purpose The purpose of this paper is to examine the relationship between levels of human capital and financial performance of firms that use two distinct human resource management (HRM) strategies. Design/methodology/approach A survey of 128 HRM managers was conducted to assess differences in human capital between firms using different HRM strategies. A multiple regression analysis was used to investigate the relationship between firms’ human capital and financial performance. Findings The results show that companies employing a make-organic strategy have a higher level of human capital than companies employing a buy-bureaucratic strategy. There was no relationship between the level of human capital and long term financial performance of firms with both make-organic and buy-bureaucratic strategies. Research limitations/implications This research contributes toward understanding the effect of HRM strategy and facilitates an optimal strategy choice depending on the organization. However, this study did not consider the lead time between changes in human capital and the effect on financial performance. Practical implications The research encourages firm managers to understand the value of human capital, preparing them for changes in the future. Originality/value This study is among the first to investigate the relationship between human capital and financial performance considering different HRM strategies.