Identification of linkage between strategic group and performance of Indian commercial banks : a combined approach using DEA and Co-Plot

This paper explores the linkage between strategic grouping and performance of the Indian banking sector. Strategic grouping and performance were identified using published financial information for all public sector banks. Grouping of Indian public sector banks following comparable financial strategy – with similar asset quality, operational efficiency and profitability – was operationalized using the graphical display method of Co-plot. From their position in the two dimensional conceptual map, banks with identical financial performance formed strategic groups with significant positive linkage between better groups and their superior financial performance, which showed their inherent homogeneity in business policy decisions. Relative performance of the banks in terms of their efficiency in converting the resources to financial outputs was obtained using data envelopment analysis technique. The measures for potential financial improvements were obtained from the output slacks calculated. Efficient banks were found to be more profitable and their grouping as observed in the efficiency-profitability matrix was found to be identical to the strategic groups obtained using financial ratios. This paper offers a framework to commercial banks to make informed policy decisions about their competitive positioning in the target market, develop long-term strategic focus and identify a benchmark for improving their performance.Este artículo explora el vínculo entre el agrupamiento estratégico y el rendimiento del sector bancario indio. El agrupamiento estratégico y el rendimiento fueron identificados mediante el uso de información financiera publicada perteneciente a todos los bancos de los sectores públicos. El agrupamiento de los bancos del sector público indio siguió una estrategia financiera comparable (con una calidad de activos similar, eficiencia operativa y rentabilidad) se puso en funcionamiento utilizando el método de visualización gráfica de Co-plot. Desde su posición en el mapa conceptual bidimensional, los bancos con rendimiento financiero idéntico formaron grupos estratégicos con una relación significativamente positiva entre los mejores grupos y su rendimiento financiero superior, que mostraron su homogeneidad inherente en las decisiones de política de negocios. El rendimiento relativo de los bancos en términos de su eficiencia en la conversión de los recursos a productos financieros se obtuvo utilizando la técnica de análisis envolvente de datos. Las medidas para las potenciales mejoras financieras se obtuvieron del cálculo de producciones no utilizadas. Los bancos eficientes en este aspecto resultaron ser más rentables, y en su agrupamiento se observó cómo la matriz eficiencia-rentabilidad era idéntica a la de los grupos estratégicos obtenidos utilizando ratios financieros. Este artículo ofrece un contexto de trabajo para que los bancos comerciales realicen decisiones informadas sobre su posicionamiento competitivo en el mercado objetivo, desarrollando técnicas de concentración a largo plazo e identificando un punto de referencia para mejorar su rendimiento

Identification of Linkage Between Strategic Group and Performance of Indian Commercial Banks: A Combined Approach using DEA and Co-Plot

This paper explores the linkage between strategic grouping and performance of the Indian banking sector. Strategic grouping and performance were identified using published financial information for all public sector banks. Grouping of Indian public sector banks following comparable financial strategy – with similar asset quality, operational efficiency and profitability was operationalized using the graphical display method of Co-plot. From their position in the two dimensional conceptual map, banks with identical financial performance formed strategic groups with significant positive linkage between better groups and their superior financial performance, which showed their inherent homogeneity in business policy decisions. Relative performance of the banks in terms of their efficiency in converting the resources to financial outputs was obtained using data envelopment analysis technique. The measures for potential financial improvements were obtained from the output slacks calculated. Efficient banks were found to be more profitable and their grouping as observed in the efficiency-profitability matrix was found to be identical to the strategic groups obtained using financial ratios. This paper offers a framework to commercial banks to make informed policy decisions about their competitive positioning in the target market, develop long-term strategic focus and identify a benchmark for improving their performance

Expectation Formation in Case of Newer Hotels: The Role of Advertising, Price, and Culture

Advertisement and price cues are important sources of information that influence tourists? service expectations, particularly in the case of newer, less-established hotels. However, it is not clear if such hotels benefit from promising more or less through their advertisements; or price high or low through their price cues. Extant research is also uncertain about the role of culture in moderating the impact of advertisement and price cues on expectations. Using an experimental setup with 218 tourists from three different countries, this study finds that a newer hotel is likely to be better off by offering more service promises through its advertising and high price cues to its prospective visitors. The results suggest that culture influences how tourists process advertising cues but has no influence on price cue influence. The study provides insights for managers on how to develop a segmentation strategy using the cultural profiles of tourists

The impacts of marketing and operations capabilities on financial performance in the UK retail sector: A resource-based perspective

Drawing upon the resource-based view (RBV) of the firm, this study investigates the relationships among marketing capability, operations capability, and financial performance. Using archival data of 186 retail firms in the UK, we find that that marketing capability has a significant impact on operations capability, and that operations capability is significantly and positively related to retail efficiency. The results also suggest that operations capability fully mediates the relationship between marketing capability and financial performance. The findings of this study provide practical insights for practicing managers to consider when developing functional capabilities in order to achieve superior financial performance. © 2013 Elsevier Inc

Green competence framework: Evidence from China

© 2015 Taylor & Francis Recently human resources management functions such as recruitment, selection, training and performance evaluation are expected in considering environmental management issues. Environmental protective acts with adequate ecological knowledge and socio-economic behavior and skills are referred to in this paper as green competencies (GCs). However, a systematic approach for developing and understanding key factors that enhance individuals' GCs is lacking. This study contributes to green human resource literature by integrating environmental consumer behavior literature with traditional skills and competencies literature to help firms to select the right individuals to achieve their environmental goals. Using Robert's competencies framework and structural equation modeling, this paper empirically examines the influence of individual GCs on organizations' green practices and performance objectives. Our model is tested using a sample of 1230 employees working in key industries in the Chinese coastal city of Ningbo. The results indicate that acquired GCs are more positively associated with individuals' GCs and green behavior. The study empirically demonstrates that verifying acquired GC attributes such as environmental knowledge, green purchase attitude and intention during employee selection would certainly be helpful for firms to identify individual green performance potential