This paper is aimed at identifying the role of digital manufacturing in changes of marketing activities of industrial companies from the point of view of a business management system. Authors define and conceptualize the notion of “digital manufacturing”. Research design is based on the Deloitte Company methodology based on value creation approach. Customers, product, economics of production, and value chain are essential methodology parameters. Our analysis shows that implementation of digital manufacturing will necessarily significantly change entire business model and marketing activity of the company. The main drivers of this process are building and maintaining relationship with customers and new opportunities related to product design and production. Interaction with customers without intermediaries, customers’ involvement in the processes of new products development, new technical possibilities of creating personalized product-service solution are main changes in marketing activities caused by the implementation of digital manufacturing at the company.
The problem of earnings management is on of most topical issues in accounting practice worldwide. There are many reasons for this phenomenon. In this paper we will follow papers [Fischer, Rosenzweig, 1995; Geiger et al., 2006] to present the results of analysis of a survey of Russian respondents concerning their attitudes on the ethical acceptability of earnings management. It occurs that Russian respondents’ behavior is different from other countries and we find factors that are associated with these differences. On the other hand, it was found that Russia is not significantly different in earnings management perception from market oriented developed countries.
One of the most important factors determining a firm’s profitable growth is scientific and technological progress. In the age of high technology innovations are vitally necessary for companies to compete with one another. Global statistics show that a huge amount of investments are focused on research and development projects in different sectors of the economy such as software and programming, biotechnological products, capital goods, beverages, accessories, restaurants, retail, hotels and motels, and so on.
However, R&D expenses are characterized by high uncertainty and returns in the long run, so not every company can afford such risky investments, for example, most of small and medium enterprises (SMEs). Besides external uncontrollable factors such as crises, disasters, political instability, and armed conflicts, each firm has its own internal problems. Together this can lead to the financial distress or even failure of a firm, and each additional risky asset can increase the probability of insolvency.
Thus, the relevance of the present paper is that each company has to find the optimal tradeoff between investments in innovations and financial distress. The solution to this problem can improve a company’s efficiency and lead to its growth. And vice versa, an unsuccessful selection can result even in the default of a firm.
The purpose of the present paper is to evaluate financial distress costs at innovative companies. In order to achieve stated this aim, the following tasks will be completed in this paper:A detailed literature review on financial distress cost evaluation will be provided; The most appropriate models will be determined for both direct and indirect costs related to financial distress; Explanatory factors will be defined for both types of insolvency; The model for direct distress cost evaluation at innovative companies will be developed; The model for indirect distress cost evaluation in innovative companies will be designed; The results of the conducted analysis will be described; Recommendations for further research studies will be given.
The subject of the investigation is financial distress costs. Our study focuses on companies that spent at least $200 million on research and development in 2015. For the further development of the topic, data was collected from Bloomberg and the financial reports of companies. The novelty of the present paper is that the model for direct and indirect cost evaluation at innovative companies was developed.
This study is focused on gaps in the theory of capital structure research regarding the phenomenon of zero-debt behavior. On the sample of firms from 21 countries with emerging capital markets over the period of 2010–2015, we show that the zero-debt policy choice is firstly driven by financial flexibility motive, while financial constraints could be regarded as the second motive. We show that major determinants of the zero-leverage choice are growth opportunities, profitability, business risk and cash holdings. We find that all these firms are smaller, less profitable, riskier and possess high cash holdings. Moreover, we find that macroeconomic conditions have lower influence on the debt policy decision in comparison with corporate determinants.
Many researchers believe that knowledge is the most important resource in the contemporary economy, but empirical studies show that knowledge management is not among the most used managerial tools. This gap can be explained with the hypothesis that knowledge management produces the significant impact on the effectiveness of organization only with the accompanying development of change management. Herewith the critical element of change management is a change readiness that allows to assess the possibility and feasibility of changes, consolidate and focus efforts, assess the adequacy of resources. This hypothesis is empirically tested using the partial least squares structural equation modeling (PLS-SEM) method on data for 103 Russian organizations. The results show that the empirical sample includes two statistically different datasets. The separating variable is the type of owner, so separate models were built for state-owned and private-owned organizations. For privateowned organizations, the hypothesis that knowledge management and changes readiness jointly affect effectiveness is fully confirmed. For state-owned organizations, knowledge management is not a factor of effectiveness. These results have two practical implications. First, managers who rely on the organizational knowledge should focus on the joint and coordinated implementation of knowledge management and change management. Special attention should be paid to the organizational context that supports individual change readiness. Second, state-owned organizations in Russia are less effective rather private ones, it is due to the fact that knowledge management for them is not the factor of effectiveness, that is in its turn a consequence of suppression of initiatives at the individual level.
This paper analyses the impact of two reforms dealt with transparency improvement and adoption of more flexible regulation on effectiveness of procurement of a large state university (Higher School of Economics) in the period from 2008 to 2012. We evaluate the impact of two significant changes in the public procurement regulation: transfer to electronic auctions and adoption by this organization of its own Procurement Provision. We show that transfer to electronic auctions leads to higher competition and more significant price decreases, whereas the adoption of Procurement provision has an opposite effect. Regarding such indicator as delays in contracts execution, the first reform has no effect and the second regulation changes result in decreasing of delays.
This paper addresses the question of existence of relationships between usage of contemporary marketing practices and profitability for companies operating on the Russian market. To address this issue, we utilize an artificial intelligence method that so far was barely present in marketing and management science. The paper is not only promoting a novel research method, it also establishes the relationships between profitability and specific sets of marketing practices. We show that the companies having negative profitability make use of a wide spectrum of marketing practices (with an exception of interactive marketing) and they do not prioritize any specific types of practices. In contrary, profitable companies intensively use interactive marketing and also combine it with IT-marketing and network marketing. This shows that successful companies focus on relationship marketing in a variety of its forms.
The article presents analysis of the impact of human resource management systems (HRM) on the financial performance of banks operating in the Russian market. The sample includes 67 banks with different organizational characteristics (nationality of capital, ownership, lo-cation of the head office, number of years of operation in the Russian market). The research is based both on qualitative (a survey of heads of HR services of banks) and quantitative (analysis of financial statements of banks). Data were collected in the period from 2011 to 2015. Initially, the main indicators characterizing the effectiveness of the HRM system (labor productivity and return on investment in human capital), as well as indicators of the financial performance of banks (return on assets and return on capital), were calculated. Further, with the help of the system of econometric equations, the impact of performance indicators of HRM systems on financial results of banks was determined. The study revealed that, on one hand, implementation of the functions of the HRM system does not have a positive impact on financial performance of the bank. At the same time, the impact of effects of some particular variables characterizing the HRM system itself (orientation on the strategic goals of the bank, the composition of the functions performed, the automation of functions, the flexibility and innovation of the HRM system, the amount of personnel costs) on performance of banks was revealed. So, the positive effect of the HRM system arises from its orientation towards the strategic goals of the bank, as well as with the use of electronic systems that automate the functions of HRM and thus improving the timing and quality of their implementation. Together, these variables, characterizing the HRM system, increase the return on investment in human capital. If the bank also achieves the flexibility and innovation of the HRM system, then labor productivity also increases. This, in turn, has a positive impact on the financial performance of banks.
The paper is devoted to the analysis of CEO letters as an instrument for influencing the expectations of shareholders and potential investors. The aim of the research is to analyze empirically the influence of semantic characteristics of CEO letters on financial indicators of the company. The authors suggested that CEO letter’s tonality, its length and readability have a great impact on the company’s financial indicators, their prediction and mid-year stock value. To check the hypotheses stated, a sample group of 102 Russian companies was analyzed with the use of “bag of words” method (specialized dictionaries were applied). For this purpose, neural network models were also developed. The results obtained confirmed the influence of CEO letter’s semantic characteristics on the stock value of company.