Mohammad Hanif Akhtar and Muhammad Asif
The purpose of this paper is to examine managerial efficiency of the whole population of petrochemical firms in the Kingdom of Saudi Arabia (KSA). It also identifies the root…
Abstract
Purpose
The purpose of this paper is to examine managerial efficiency of the whole population of petrochemical firms in the Kingdom of Saudi Arabia (KSA). It also identifies the root causes of inefficiencies and proposes measures to overcome these.
Design/methodology/approach
The paper uses the data envelopment analysis approach to measure the managerial efficiency in context of various returns-to-scales. To glean further insights into the sources of inefficiency, the study investigates the extent of utilization of resources by comparing target inputs vis-à-vis the actual inputs used. This provides the authors information about the degree of underutilization of resources as well as an insight into the sources of inefficiency, e.g., those stemming from the managerial or scale of operations.
Findings
The findings reveal a great amount of inefficiencies in Saudi petrochemical sector. These inefficiencies arise from both the underutilization of resources as well as the inability of petrochemical firms to run their operations at optimal scales.
Practical implications
The findings of the study allude toward measures that managers might adopt to overcome the issues of inefficiency. They ought to ensure better utilization of resources by running operations of the firms at optimal scales of production. The firms operating under the sub-optimum scales of operations need to revisit their marketing and production strategies. These might take up the form of boosting marketing efforts to win more orders from customers and increasing production volumes that could allow these firms to take advantage of economies of scale.
Originality/value
This paper is a first attempt to measure efficiency of petrochemical sector in KSA which stands as the key contributor to the national exchequer. Since the study consists of the whole population of petrochemical firms in KSA, it measures the “true” managerial efficiency of petrochemical firms in the sector. Further, being a pioneer study on managerial efficiency of petrochemical sector, it extends original contribution to the literature on efficiency of firms, combined with rich insights into sources of inefficiencies.
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– This paper aims to estimate the cost efficiency scores of banks in KSA before and during financial crisis by using a data envelopment analysis (DEA) approach.
Abstract
Purpose
This paper aims to estimate the cost efficiency scores of banks in KSA before and during financial crisis by using a data envelopment analysis (DEA) approach.
Design/methodology/approach
The study uses the intermediation approach of banking services where banks are considered as manufacturing units. The research methodology consists of cost efficiency DEA and a second stage Tobit regression model.
Findings
The results reveal that banks in KSA are least affected by the crisis as the efficiency scores remain the same during all the periods. However, the average levels of inefficiency remain higher suggesting that KSA banks are lagging behind in exploiting the resources fully. The major source of cost inefficiency stems from allocative inefficiency rather than the technical one. Results of the Tobit regression also disclose that the impact of financial crisis across bank efficiency remains weak and inconclusive.
Research limitations/implications
The study bears some useful managerial implications for various stakeholders. Although banks do not seem to be affected by the crisis, yet they need to improve their efficiency since the levels are far below the frontier. For successful existence and growth of banking, it remains vital that these banks control their costs regardless of the fact are operating in a concentrated market.
Practical implications
The paper suggests that the banks in KSA need to bring down their operating expenses to reach the efficiency frontier. The average level of inefficiency (82 per cent) reflects a greater amount of input waste which needs to be controlled by these banks.
Originality/value
The study is novel in a way that it evaluates the cost efficiency performance of KSA banks before and during the financial crisis, followed by a second stage regression on the determinants of cost efficiency. It provides valuable insights to both the bank managers and public policy makers who can look for the optimal levels of efficiency and competitiveness of Saudi banking sector.
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The purpose of this paper is to estimate the data envelopment analysis (DEA) efficiency scores and Malmquist productivity indices of banks in Saudi Arabia, an economy that is…
Abstract
Purpose
The purpose of this paper is to estimate the data envelopment analysis (DEA) efficiency scores and Malmquist productivity indices of banks in Saudi Arabia, an economy that is heavily dependant on the hydrocarbon sector.
Design/methodology/approach
The paper adopts the intermediation approach of banking services where financial institutions like banks are perceived to be manufacturing units, employing inputs such as interest and non‐interest expenses to produce outputs such as net interest and non‐interest incomes. The research methodology is comprised of the DEA and Malmquist productivity index (MPI) as a measure of change in total factor productivity, reflecting industry's performance over time.
Findings
The results on MPI reflect an improvement in average productivity of banks. However, the major increase in productivity gains emerged through technological change relative to the efficiency change. The banks across the Kingdom appear to have succeeded in catching up with the best practices, even though the average scores on technical efficiency (TE) stood beyond optimal levels.
Research limitations/implications
The question, whether small banks are more productive and efficient vis‐à‐vis large banks, remains unanswered. Likewise, to what extent the changes in oil prices and revenues affect the efficiency and productivity of banks, a second‐stage regression of efficiency on oil prices and revenues along with other variables would help in calculating the degree of impact. However, these are the agenda for subsequent research.
Practical implications
The banks in Saudi Arabia need to rationalize their costs to line up across the efficiency frontiers.
Originality/value
The paper manages to explore the critical issues of TE and productivity changes across the banking sector in Saudi Arabia. It provides valuable insights to both the bank executives and public policy makers, who are seeking for improvements in efficiency, productivity, and competitiveness across the banking sector in the Kingdom.
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Nawazish Mirza, Cristiana Doina Tudor, Alexandra Horobet and Lucian Belascu
This study aims to explore the strategic integration of Sharia-compliant and environmental, social and governance (ESG)-focused investments within global equity portfolio…
Abstract
Purpose
This study aims to explore the strategic integration of Sharia-compliant and environmental, social and governance (ESG)-focused investments within global equity portfolio optimization frameworks, with a particular emphasis on variance minimization and dynamic rebalancing techniques.
Design/methodology/approach
The research uses historical data from Sharia-compliant, ESG-focused and conventional equity exchange-traded funds (ETFs). Advanced mean-variance optimization methodologies via quadratic programming are employed, encompassing static optimization with and without a 50% cap on individual asset weights, dynamic optimization with monthly rebalancing and rolling window optimization.
Findings
Portfolios integrating Sharia-compliant investments frequently outperform those composed solely of conventional equity ETFs. Dynamic optimization with monthly rebalancing achieved the highest Sharpe ratio (1.3708) and demonstrated enhanced portfolio resilience during market turbulence, such as the COVID-19 pandemic. Sharia-compliant investments showed substantial allocations during key periods, with weights reaching up to 100% in the first half of 2020. In contrast, ESG-focused investments exhibited more limited and sporadic allocations, reflecting a more opportunistic role in the portfolio.
Practical implications
The findings reaffirm the critical role of Sharia-compliant investments in well-diversified, risk-conscious portfolios while also providing nuanced insights into the more selective integration of ESG-focused assets. The results offer practical guidance for portfolio managers seeking to integrate ethical and sustainable investment principles within advanced portfolio optimization frameworks, particularly when focusing on minimizing variance and dynamically responding to evolving market conditions.
Social implications
The study contributes to the growing body of literature on ethical and sustainable investments, demonstrating that it is possible to balance ethical considerations with robust financial performance. The research underscores the potential for Sharia-compliant investments to play a significant role in global portfolios, potentially fostering greater financial inclusion and cross-cultural understanding in the investment community.
Originality/value
This research provides novel insights by focusing on Sharia-compliant investments within non-Muslim countries, an area that has been relatively underexplored. It also compares the outcomes of static, dynamic and rolling optimizations, highlighting the dynamic interplay between ethical investment principles and financial performance.
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The purpose of this paper is to emphasize that interest-rate benchmark cannot be used for pricing of Islamic financial products. This paper will help in pricing basis for Islamic…
Abstract
Purpose
The purpose of this paper is to emphasize that interest-rate benchmark cannot be used for pricing of Islamic financial products. This paper will help in pricing basis for Islamic financial products, which are currently based on interest-rate benchmarks. Shariyah perspective and ground realities are considered as evident to the viewpoint.
Design/methodology/approach
Viewpoint has been evident through comparison of conventional and Islamic financial product pricing, and through comparison of interest rate with macroeconomic indicators to analyze whether interest really represent economy, since Islamic finance based on real economic activities.
Findings
It has been analyzed that interest based benchmarks do not represent real economic activities.
Originality/value
This paper brings new light to the product development in Islamic financial instruments and institutions. Islamic finance should have its own footings in terms of product development.
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Edwina Pio, Rob Kilpatrick and Mark Le Fevre
The purpose of this paper is to illuminate enablers, barriers and vignettes of South Asian women leaders and possible paths to increase the influence and leadership of women in…
Abstract
Purpose
The purpose of this paper is to illuminate enablers, barriers and vignettes of South Asian women leaders and possible paths to increase the influence and leadership of women in South Asia.
Design/methodology/approach
Navratna, the nine precious gems of ancient Indian literature are used to frame reflections on South Asian women leaders, and the Global Gender Gap Report of 2015 is used to give context to five barriers and five enablers to women’s leadership in the region. Illustrative vignettes of South Asian women in leadership roles are presented. These vignettes have been selected based on a case study approach of South Asian women leaders.
Findings
Five enablers that may help empower women towards greater leadership and influence are proposed: involving men in what should change, greater economic participation by women, supportive family, country- and context-specific leadership training, and finally grassroots advocacy, mentoring and role models.
Originality/value
The paper shines new light on women leaders whose sparking excellence in their specific field illuminate paths for others to follow and thus contributes to promoting research on multifaceted women leaders in South-Asia.
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Describes the library and information science education through the distance teaching system offered by Allama Iqbal Open University in Pakistan. The only open university in the…
Abstract
Describes the library and information science education through the distance teaching system offered by Allama Iqbal Open University in Pakistan. The only open university in the country has offered Certificate and Bachelor’s programmes in the subject since 1988 and is planning to offer Master’s and some other advanced programmes in the future. The paper presents a brief history of the University and the establishment of the Department of Library and Information Sciences. Syllabi and objectives of various LIS courses are provided. The system of education, including admissions, study materials, regional services, tutors, study centres, assignments and examination is also described. Enrolment data up to spring 1996 are analyzed (by area and gender). Opinions of senior library professionals in the country about these LIS courses are also cited.
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The purpose of this study is to investigate the effect of implementing corporate social responsibility (CSR) initiatives (social responsibility, economic responsibility and…
Abstract
Purpose
The purpose of this study is to investigate the effect of implementing corporate social responsibility (CSR) initiatives (social responsibility, economic responsibility and environmental responsibility) on Jordanian Pharmaceutical Manufacturing (JPM) industry’s business performance.
Design/methodology/approach
This study follows a quantitative descriptive design. The data were collected from 116 managers working at seven JPM organizations by questionnaire. After confirming validity and reliability of the tool, the statistical analysis means, standard deviations and t-values were used to test implementation and finally multiple regressions were used to test the hypothesis.
Findings
Results show that there are relationships between CSR variables, and all the three variables are strongly related to business performance. The results also indicate that the three sub-variables together affect JPM industry’s business performance. The environmental responsibility has the highest effect on JPM industry’s business performance, followed by the economic responsibility, and then the social responsibility.
Research limitations/implications
This study was directed toward pharmaceutical industry in Jordan. Generalizing the results to other industries and countries is questionable. Therefore, further research on other industries and countries will help mitigate the issue of generalizing conclusions.
Practical implications
CSR should be formulated clearly within JPM corporate strategy. The elements of CSR need to be integrated with the present performance management criteria, leadership development programs and organizational development programs, and a champion for CSR needs to be assigned.
Social implications
The CSR initiatives should be derived from local culture and match with international initiatives because CSR is the responsibility of every person.
Originality/value
Still the topic of CSR is not well implemented and does not have priority by Jordanian companies; therefore, this study may be considered as one of the few studies dedicated to study this topic and create awareness about it in Jordan.
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Mohammad Osman Gani, Takahashi Yoshi and Muhammad Sabbir Rahman
This study aims to investigate the impact of a firm’s supply chain capabilities on supply chain resilience, and the impact of supply chain resilience on sustainable supply chain…
Abstract
Purpose
This study aims to investigate the impact of a firm’s supply chain capabilities on supply chain resilience, and the impact of supply chain resilience on sustainable supply chain performance in a data-driven business environment. The study also aims to explore the function of supply chain resilience in mediating the relationship between a firm’s supply chain capability and sustainable supply chain performance.
Design/methodology/approach
Primary data were acquired through a survey of 310 managers of small- and medium-sized businesses in a variety of industries across Bangladesh. The data were analyzed using partial least squares structural equation modeling.
Findings
A firm’s supply chain capabilities include information technology, leadership and collaboration. Supply chain capability is positively associated with supply chain resilience. The resilience of a firm’s supply chain is also positively correlated with its sustainable supply chain performance. Supply chain resilience plays a mediating role in the relationship between a firm’s supply chain capabilities and its sustainable supply chain performance.
Research limitations/implications
This study provides a theoretical contribution by corroborating practical knowledge focusing on firms’ supply chain capability, supply chain resilience and sustainable supply chain performance by using a resource-based view and dynamic capability theory – a relevant and unexplored subject in the supply chain literature – and proposes several opportunities for future research.
Practical implications
The results highlight the study’s managerial and social relevance from the perspective of firms in developing countries. As firms shift toward an online environment, managers and decision-makers need to make strategic decisions, as they did to overcome the challenges presented by COVID-19.
Originality/value
The study’s findings demonstrate that firms’ supply chain capabilities can be leveraged to increase supply chain resilience. Firms’ resilience during COVID-19 allowed them to avoid losses and to improve their supply chain’s sustainable performance. To the best of the authors’ knowledge, their complex higher order model is a unique contribution to the literature on firms’ supply chain capability and extends previous research on this topic.
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Ji Eun Song, Su Mi Kim and Hye Rim Kim
The purpose of this paper is to improve the dye affinity of natural dye of Terminalia chebula retzius (T. chebula) using the dye substrate of leather.
Abstract
Purpose
The purpose of this paper is to improve the dye affinity of natural dye of Terminalia chebula retzius (T. chebula) using the dye substrate of leather.
Design/methodology/approach
The dyeing conditions such as temperature, concentration of dye, and time are controlled by measuring the dye affinity. The effect of enzymatic post-tanning process on dye affinity is evaluated by using different type of proteases such as flavourzyme, alcalase, and bromelain. The optimum conditions for enzymatic post-tanning process are evaluated depending on different pH, temperature, and concentration of enzyme.
Findings
The highest dye affinity was obtained at 50°C using a dye concentration of 200 percent (owf) for 30 min treatment by measuring of K/S values of dyed leather. Distilled water was proved as a better extraction liquid to improve the dye affinity of T. chebula. The K/S values of dyed leather were enhanced after the enzymatic post-tanning process by flavourzyme. Moreover, the fastness properties against the rubbing and dry cleaning of the dyed leather were improved by the enzymatic post-tanning process.
Originality/value
In this paper, the enzymatic post-tanning process is introduced as the method to improve the dye affinity in natural dyeing using Terminalia chebula retzius (T. chebula) applied to leather. The results of the study could be applied for further natural dyeing of leather using various natural dyes.