IDEAS home Printed from https://ideas.repec.org/h/mgt/micp15/21-33.html
   My bibliography  Save this book chapter

Managing Sustainable Profit

Author

Listed:
  • Aleksander Janeš

    (University of Primorska, Slovenia)

  • Armand Faganel

    (University of Primorska, Slovenia)

Abstract

Represented research was performed as a single case study on the performance measurement system (PMS) of the Ydria Motors LL Company (YM), which is engaged in manufacturing. The company is a competence centre of the ebmpapst group and focuses on the prototypes of new products and manufacturing machines. Its vision is to become the leading manufacturing and development location within the group in the field of Alternating Current (AC) motors and Electronically Commutated (EC) motors, pumps, fans and components for home appliances. In the Slovenian region, the company is an important manufacturer of electric motors and fans, which exports as much as 95% of its production for large and important manufacturers of upmarket white goods and household appliances such as Miele, Bosch-Siemens, Gorenje, Electrolux and AEG. In their endeavour to increase profits, companies usually become aware that this is predominantly the result of employee competence and satisfaction, processes excellence and customer’s satisfaction. Based on that assertion, companies integrate different managerial tools in the PMS and therefore in their management system. One of the most dominant managerial tools is the Kaplan and Norton’s balanced scorecard (BSC). Within our survey we have closely examined the development of a performance measurement model which supports the decision making process in real time. Our main finding relates to the fact that we empirically confirmed the error correction models (ECMs) which are supporting the cause and effect relations between the strategic goals (e.g. stake holder’s long term value-monthly profit). In this context the company has identified opportunities for improvement in the field of performance measurement.

Suggested Citation

  • Aleksander Janeš & Armand Faganel, 2015. "Managing Sustainable Profit," MIC 2015: Managing Sustainable Growth; Proceedings of the Joint International Conference, Portorož, Slovenia, 28–30 May 2015,, University of Primorska, Faculty of Management Koper.
    • Handle: RePEc:mgt:micp15:21-33
    as

    Download full text from publisher

    File URL: http://www.fm-kp.si/zalozba/ISBN/978-961-266-181-6/20.pdf
    File Function: full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Yulia Kasperskaya & Michael Tayles, 2013. "The role of causal links in performance measurement models," Managerial Auditing Journal, Emerald Group Publishing, vol. 28(5), pages 426-443, May.
    2. Jitesh Thakkar & S.G. Deshmukh & A.D. Gupta & Ravi Shankar, 2007. "Development of a balanced scorecard," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 56(1), pages 25-59, January.
    3. Stock, James H & Watson, Mark W, 1988. "Variable Trends in Economic Time Series," Journal of Economic Perspectives, American Economic Association, vol. 2(3), pages 147-174, Summer.
    4. Granger, Clive W.J., 2004. "Time Series Analysis, Cointegration, and Applications," University of California at San Diego, Economics Working Paper Series qt2nb9f668, Department of Economics, UC San Diego.
    5. Miller, Stephen M, 1991. "Monetary Dynamics: An Application of Cointegration and Error-Correction Modeling," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 23(2), pages 139-154, May.
    6. Clive W.J. Granger, 2004. "Time Series Analysis, Cointegration, and Applications," American Economic Review, American Economic Association, vol. 94(3), pages 421-425, June.
    7. Robert Engle & Clive Granger, 2015. "Co-integration and error correction: Representation, estimation, and testing," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 39(3), pages 106-135.
    8. Hylleberg, Svend & Mizon, Grayham E, 1989. "Cointegration and Error Correction Mechanisms," Economic Journal, Royal Economic Society, vol. 99(395), pages 113-125, Supplemen.
    9. Bernard Morard & Alexandru Stancu & Christophe Jeannette, 2013. "Time Evolution Analysis And Forecast Of Key Performance Indicators In A Balanced Scorecard," Global Journal of Business Research, The Institute for Business and Finance Research, vol. 7(2), pages 9-27.
    10. Zahirul Hoque & Maybelle Chia, 2012. "Competitive forces and the levers of control framework in a manufacturing setting," Qualitative Research in Accounting & Management, Emerald Group Publishing Limited, vol. 9(2), pages 123-145, June.
    11. Aleksander Janeš, 2013. "Managing sustainability with the error correction model," International Journal of Sustainable Economy, Inderscience Enterprises Ltd, vol. 5(2), pages 125-139.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Edmore Mahembe & Nicholas Mbaya Odhiambo, 2019. "Foreign aid, poverty and economic growth in developing countries: A dynamic panel data causality analysis," Cogent Economics & Finance, Taylor & Francis Journals, vol. 7(1), pages 1626321-162, January.
    2. Jinkyu Kim & Gunn Kim & Sungbae An & Young-Kyun Kwon & Sungroh Yoon, 2013. "Entropy-Based Analysis and Bioinformatics-Inspired Integration of Global Economic Information Transfer," PLOS ONE, Public Library of Science, vol. 8(1), pages 1-10, January.
    3. Berta, P. & Lovaglio, P.G. & Paruolo, P. & Verzillo, S., 2020. "Real Time Forecasting of Covid-19 Intensive Care Units demand," Health, Econometrics and Data Group (HEDG) Working Papers 20/16, HEDG, c/o Department of Economics, University of York.
    4. Masih, A. Mansur M. & De Mello, Lurion, 2011. "Does the ‘Environmental Kuznets Curve’ Exist? An Application of Long-run Structural Modelling to Saudi Arabia - La Curva di Kuznets esiste? Un’applicazione LRSM al caso dell’Arabia Saudita," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 64(2), pages 211-235.
    5. Masih, Mansur & Algahtani, Ibrahim & De Mello, Lurion, 2010. "Price dynamics of crude oil and the regional ethylene markets," Energy Economics, Elsevier, vol. 32(6), pages 1435-1444, November.
    6. John D. Levendis, 2018. "Time Series Econometrics," Springer Texts in Business and Economics, Springer, number 978-3-319-98282-3, January.
    7. Bennett T. McCallum, 1993. "Unit roots in macroeconomic time series: some critical issues," Economic Quarterly, Federal Reserve Bank of Richmond, issue Spr, pages 13-44.
    8. Bevilacqua, Franco, 2006. "Random walks and cointegration relationships in international parity conditions between Germany and USA for the post Bretton-Woods period," MERIT Working Papers 2006-012, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    9. Swaroop R. Chary & Alok K. Bohara, 2010. "Carbon Emissions, Energy Consumption and Income in SAARC Countries," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 11(1), pages 21-30, March.
    10. Rockie U Kei Kuok & Tay T.R. Koo & Christine Lim, 2024. "Air transport capacity and tourism demand: A panel cointegration approach with cross-sectionally augmented autoregressive distributed lag (CS-ARDL) model," Tourism Economics, , vol. 30(3), pages 702-727, May.
    11. Carter, Colin A. & Smith, Aaron D., 2004. "The Market Effect of a Food Scare: The Case of Genetically Modified StarLink Corn," Working Papers 11997, University of California, Davis, Department of Agricultural and Resource Economics.
    12. Bevilacqua, Franco, 2006. "Random walks and cointegration relationships in international parity conditions between Germany and USA for the Bretton-Woods period," MERIT Working Papers 2006-016, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    13. Muyambiri, Brian & Chiwira, Oscar & Enowbi Batuo, Michael & Chiranga, Ngonidzashe, 2010. "The Causal Relationship between Private and Public Investment in Zimbabwe," MPRA Paper 26671, University Library of Munich, Germany.
    14. Sollis, Robert, 2011. "Spurious regression: A higher-order problem," Economics Letters, Elsevier, vol. 111(2), pages 141-143, May.
    15. John T. Cuddington & Leila Dagher, 2015. "Estimating Short and Long-Run Demand Elasticities: A Primer with Energy-Sector Applications," The Energy Journal, , vol. 36(1), pages 185-210, January.
    16. Jan Tin, 2010. "Bequest motives and household money demand," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 34(3), pages 269-283, July.
    17. Bardsen, Gunnar & Klovland, Jan Tore, "undated". "Finding The Right Nominal Anchor: The Cointegration Of Money, Credit And Nominal Income In Norway," Economic Research Papers 268385, University of Warwick - Department of Economics.
    18. Lee, Chingnun & Shie, Fu Shuen & Chang, Chiao Yi, 2012. "How close a relationship does a capital market have with other such markets? The case of Taiwan from the Asian financial crisis," Pacific-Basin Finance Journal, Elsevier, vol. 20(3), pages 349-362.
    19. Martin Schmidt, 2003. "Monetary dynamics: a market approach," Applied Economics, Taylor & Francis Journals, vol. 35(2), pages 139-152.
    20. Delis, Manthos D. & Karavias, Yiannis, 2015. "Optimal versus realized bank credit risk and monetary policy," Journal of Financial Stability, Elsevier, vol. 16(C), pages 13-30.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mgt:micp15:21-33. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Alen Jezovnik (email available below). General contact details of provider: https://edirc.repec.org/data/fmkupsi.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.