An examination of strategies under the financial tsunami

G. T.S. Ho, King Lun Tommy Choy, Sai Ho Chung, C. H.Y. Lam

Research output: Journal article publicationJournal articleAcademic researchpeer-review

10 Citations (Scopus)

Abstract

Purpose - The purpose of this paper is to identify the factors, such as the different strategies adopted and the size of the company, that have a significant determining impact on the financial performance of companies in extreme circumstances. Design/methodology/approach - The research target of this paper is the small and medium enterprises (SMEs) in Hong Kong. This is quantitative research and it is done on a survey basis, which includes hypothesis setting and statistical analysis. In addition, constructive suggestions are given to companies after analyzing the current situation. Findings - In total, ten factors from four dimensions are determined as the critical strategies for the company to adopt in an uncertain financial situation. The result shows the influence of different factors on return on investment for the companies with different backgrounds. Practical implications - The business environment today is full of turbulence and uncertainties; this, along with the fierce global competition, means that manufacturers are all struggling to survive. The financial tsunami that has swept across the global economy is believed to be the most catastrophic in living memory. Therefore, this research will be especially valuable and useful to companies which wish to achieve excellence in business performance in spite of such a global disaster. Originality/value - Manufacturers worldwide have suffered badly from the impact of the financial tsunami. The SMEs in Hong Kong are certainly not an exception. However, under the same adverse conditions, some have been able to maintain their stability or even thrive. The findings suggest some specific corporate strategies which will enable companies to survive and remain competitive.
Original languageEnglish
Pages (from-to)1319-1336
Number of pages18
JournalIndustrial Management and Data Systems
Volume110
Issue number9
DOIs
Publication statusPublished - 11 Nov 2010

Keywords

  • Business performance
  • China
  • Financial risk
  • Research
  • Small to medium-sized enterprises

ASJC Scopus subject areas

  • Management Information Systems
  • Industrial relations
  • Computer Science Applications
  • Strategy and Management
  • Industrial and Manufacturing Engineering

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