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1 – 10 of over 14000This paper explores how two understudied characteristics of a firm's product portfolio, namely, aging of products and (non)innovativeness of products, affect firm survival. The…
Abstract
This paper explores how two understudied characteristics of a firm's product portfolio, namely, aging of products and (non)innovativeness of products, affect firm survival. The influence of these product portfolio characteristics on organizational mortality can be observed both at the firm and at the industry levels. Paradoxically, the portfolio's influence at the firm and at the industry levels may go in opposite directions. Specifically, I predict that portfolios with aging products make their firms weaker competitors and survivors. However by weakening these firms, “aging” portfolios reduce competitive pressures at the industry level and, therefore, improve firm survival indirectly by changing industry vital rates. In contrast, firms with innovative product portfolios should be stronger survivors. At the same time, they are likely to intensify competition in the industry and, as a result, diminish survival chances of all firms, including those with innovative products. The analyses of all firms’ product portfolios in the worldwide optical disk drive industry, 1983–1999, support these predictions.
Dorcas Moyanga, Lekan Damilola Ojo, Oluseyi Alabi Awodele and Deji Rufus Ogunsemi
Micro, small and medium-sized enterprises are the live wire of construction industry in developing countries. These classes of establishments are most affected by economic…
Abstract
Purpose
Micro, small and medium-sized enterprises are the live wire of construction industry in developing countries. These classes of establishments are most affected by economic contraction and turmoil, thus affecting their performance and survivability. Hence, the purpose of this study is to investigate and prioritize the survival determinants of construction consulting organization during economic contraction in Nigeria using quantity surveying firms as a focal point.
Design/methodology/approach
The study adopted the descriptive-survey design and quantitative data were collected through questionnaire purposely administered to quantity surveying firms in the Southwestern part of Nigeria. The data obtained from 99 quantity surveying firms on survival determinants were analysed using various statistical analysis such as mean score, standard deviation, Mann–Whitney U test, Kruskal–Wallis H test, and so on. Principal component analysis was used to identify the principal components of survival determinants, while the factors were prioritized using fuzzy synthetic evaluation (FSE).
Findings
The result of the analysis reveals eight factors that significantly determines the survival of firms during the period of economic contraction. Furthermore, the eight grouped factors were prioritized accordingly namely firm's innovation and diversification, ownership structure and networking, education level and management skills, and so on.
Practical implications
This study investigated the survival determinants of quantity surveying firms and prioritized it with the opinions of principal partners in quantity surveying establishments. As against obtaining large survey responses from all quantity surveyors in the study area that may not have practical experience of managing firms, the limited responses received provide valid basis to broaden the horizon of professionals and other stakeholders on the key determinants for firms to survive economic turmoil.
Originality/value
This study contributes to the body of knowledge by providing information on prioritized factors that must be considered in an appropriate order by quantity surveying firms to survive economic contraction.
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Shabir Ahmad, Kamran Ahmed Siddiqui and Hoda Mahmoud AboAlsamh
The purpose of this paper is to examine the impact of owner family involvement in business on sustainable survival of family small-to-medium enterprises (SMEs) and to empirically…
Abstract
Purpose
The purpose of this paper is to examine the impact of owner family involvement in business on sustainable survival of family small-to-medium enterprises (SMEs) and to empirically validate the intervening role of corporate social responsibility (CSR).
Design/methodology/approach
The authors analyze data from 489 owner and nonowner executives of 150 family SMEs using PLS-SEM (Partial Least Square–Structural Equation Modeling).
Findings
The authors found evidence that family involvement in business positively impacts the sustainable survival of family SMEs while corporate social responsibility partially mediates this relationship. Apart from effective family involvement in business, active involvement in social causes enhances a firm's ability to survive longer.
Research limitations/implications
This study was conducted in a geographic context and data were collected from family-managed and controlled firms. Further research is needed to generalize the findings to all types of family firms in the global context. In an Islamic society, family firms need to invest in social causes, human development, and environmental sustainability through zakat, sadaqat, and donations.
Practical implications
The findings imply that family firms require stakeholder-centric competitive strategies and socially responsible behavior along with effective family control, commitment, enrichment, and successful succession since the path to sustainable survival goes through CSR.
Originality/value
Survival is the biggest challenge facing family SMEs forcing them to achieve the ability to sustain longer. Rooted in transaction cost economics (TCE) theory of the family firm and stakeholder theory, this paper validates an integrative model for family SMEs' sustainable survival.
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Fariss‐Terry Mousa and William Wales
This paper aims to explore the effects of entrepreneurial orientation (EO) on firm survival and examine whether founder chief executive officers (CEOs) are more effective than…
Abstract
Purpose
This paper aims to explore the effects of entrepreneurial orientation (EO) on firm survival and examine whether founder chief executive officers (CEOs) are more effective than other types of managers at utilizing entrepreneurial orientation at initial public offerings (IPOs).
Design/methodology/approach
Using survival analysis the authors investigate the effects of EO on firm survival as well as the moderating role of founder CEOs.
Findings
The results suggest that EO increases post‐IPO survival. Further, founder‐CEOs moderate the EO‐survival relationship.
Originality/value
The paper shows that entrepreneurial orientation enhances long‐term survival in IPO firms. Survival is an important, though generally overlooked consideration in EO research. The paper also concludes that firms with founder CEOs are more likely to value and implement EO. Finally, the paper addresses calls for greater use of secondary measures of EO.
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Abdullah Mohammed Al Shukaili, Kawther Al Kindi, Norizan Mohd Kassim, Zunaith Ahmed and Khdija Al Hosni
Promoting and supporting entrepreneurship is a critical pillar of Oman’s vision 2040. The need to understand to what extent the effectiveness of public funds given to micro and…
Abstract
Purpose
Promoting and supporting entrepreneurship is a critical pillar of Oman’s vision 2040. The need to understand to what extent the effectiveness of public funds given to micro and small enterprises in Oman as well as to understand the characteristics of the funds that can drive the impact of such government financial support programs on those enterprises motivated us to conduct this study. Therefore, the purpose of this study is to investigate the impact of the government loan support programs on job creation in micro and small enterprises in Oman.
Design/methodology/approach
Hypotheses were tested using data collected from 1,127 micro and small enterprises that received loan supports from the Government of Oman. The authors explored the impact of a set of predictors on a dependent variable (job creation) to understand to what extent do the supported micro and small enterprise characteristics significantly influence job creations in the enterprises. Multiple regression and General Linear Model Multivariate Analysis statistical techniques were used to test the hypotheses.
Findings
There is a positive relationship between government supported firms’ characteristics and job creation for both nationals and expatriates’ employment. The empirical results suggest that, when compared with the micro enterprises, the small enterprises were able to create more jobs for nationals than for expatriates, although the effect of the support program on job creation was significant for both groups.
Originality/value
This paper contributes to the literature debate on the effectiveness of Oman’s entrepreneurship policy. Using multivariate analysis, the study analyzes the public support program for enterprises in Oman and how it can be improved to support the Oman 2040 Vision.
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Thanh Tiep Le, Huan Quang Ngo and Leonardo Aureliano-Silva
The purpose of this paper is to evaluate the role of corporate social responsibility (CSR) on small and medium-size enterprises’ (SMEs') performance by exploring the role of…
Abstract
Purpose
The purpose of this paper is to evaluate the role of corporate social responsibility (CSR) on small and medium-size enterprises’ (SMEs') performance by exploring the role of mediating variables such as brand trust (BT) and brand loyalty (BL) in the context of an emerging market.
Design/methodology/approach
Based on a extend literature review on CSR, BT and BL studies, the authors evaluate the impact of those construct on SMEs’ performance in an emerging market. The paper follows a quantitative approach. In total, 247 responses were collected from 300 samples. The Smart Partial Least Squares SEM (version) was used to analyze the data of the SMEs of Vietnam in the year 2020.
Findings
The findings revealed significant and positive relationships among the variables in the model, such as CSR and firm performance (FP), CSR and BT, CSR and BL, as well as the mediating effect of BT and BL between CSR and firm performance.
Research limitations/implications
First, the sample was composed of small business from different segments, thus the respondents' perspective about CSR can differ according the impact of the business on society. Therefore, future studies could address businesses from a single segment to get a deeper understanding of their knowledge and involvement with CSR. Second, a cross-cultural study in emerging countries can be a rich venue for future research. Third, this study was developed through a quantitative approach; thus, the future research can apply qualitative approach or mixed methods to extend the study findings.
Practical implications
Managerial level of firm should prioritize noneconomic-related CSR; however, those will ultimately drive financial indicators of FP. The result is reasonable because firm simultaneously keeps committed with its stakeholders by delivering the committed qualification, transparency in operation and consistency in communication, environment respect, employee development and social welfare integrated directly into business activities. Those will result in creating love, trust and admiration from stakeholder, customers for brand and firms will get their engagement and support in many ways. This implication suggests that firm should incorporate CSR strategy into their core business activities and practice properly toward its stakeholders.
Social implications
This study contributes to the CSR literature in emerging context by shedding light on the roles of CSR in FP with the mediation roles of BT and BL. Most CSR studies focused on Western context as developed economy, thus less attention has been paid for emerging economy. While there is increasing interest CSR in Vietnam, traditional culture and its distinctive economic and political structure has had a great influence on CSR in Vietnam. Thus, this study is important and meaningful for business practitioners, investors, shareholders and policymakers toward sustainable development for firms and Vietnam as a whole.
Originality/value
To the best of the authors’ knowledge, this is the first study that explores the mediating role of BT and BL between CSR and FP for SMEs. The findings of this study may be of great implications to entrepreneurs, top management with respect to strategic perspectives to drive their businesses and to improve their FP in a sustainable direction in contexts of emerging markets. In addition, this finding may be of great interest to motive SMEs' managers to engage with CSR actions where those businesses are situated during and after the COVID-19 pandemic. By that understanding, Government may consider for policy reforms/innovation/groundbreaking to leverage businesses to promote their strengths toward sustainable development in the new economic settings. The findings of this study may be of significant contribution to SMEs in Vietnam and in others in emerging economies.
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Yin Yu-Thompson, Ran Lu-Andrews and Liang Fu
This paper aims to perform empirical analysis to test whether less severe agency conflict between managers and controlling shareholders may improve family firms’ corporate and…
Abstract
Purpose
This paper aims to perform empirical analysis to test whether less severe agency conflict between managers and controlling shareholders may improve family firms’ corporate and stock liquidity, compared to non-family firms.
Design/methodology/approach
The authors use the ordinary least square and two-stage generalized method of moments regression analyses. They also use match-paired design for robustness check.
Findings
Focusing on Standard & Poor’s 500 firms, the authors find that family firms are more conservative by hoarding more corporate liquid assets (as measured by accounting balance sheet liquidity ratios) than their peer non-family firms to prevent underinvestment from external costly finance. These family firms also exhibit higher level of stock liquidity and lower liquidity risk as measured by effective bid–ask spread than non-family firms. The results are consistent with the motivation that organizations (i.e. family firms in this study) whose shareholders can efficiently monitor that their managers are associated with higher level of corporate liquidity and stock liquidity, and lower level of liquidity risk.
Originality/value
This study contributes to the literature on liquidity (both corporate liquidity and stock liquidity) and ownership structure, more broadly corporate governance. It provides insights into corporate and stock liquidity within a unique ownership context: family firms versus non-family firms. Family firms in the USA are subject to both Type I (agency problems arising from the separation of ownership and control) and Type II agency problems (agency conflict arising between majority and minority shareholders). It is an ongoing debate whether family firms suffer more or less agency problems from one type versus the other than non-family firms. The finding that family firms have higher corporate and stock liquidity is consistent with that family firms being subject to less severe agency conflict due to separation of ownership from control.
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Niklas P.E. Karlsson, Hélène Laurell, John Lindgren, Tobias Pehrsson, Svante Andersson and Göran Svensson
The purpose of this study is to compare and validate firms’ internal and external stakeholder considerations in sustainable business practices across business settings. It aims to…
Abstract
Purpose
The purpose of this study is to compare and validate firms’ internal and external stakeholder considerations in sustainable business practices across business settings. It aims to assess the validity and reliability of a stakeholder framework appearing in previous studies.
Design/methodology/approach
The study uses a questionnaire survey and a cross-industry sample consisting of the largest firms in corporate Sweden. Multivariate analysis tests the stakeholder framework. Each of the 294 key informants was initially identified and contacted by telephone, generating a response rate of 36.5 per cent.
Findings
The tested stakeholder framework appears valid and reliable across countries to assess the internal stakeholders of focal firms, as well as their up- and downstream, market and societal stakeholders. This study provides additional empirical support to categorize firms’ stakeholder considerations in sustainable business practices.
Research limitations/implications
This study validates previous findings in terms of Swedish firms’ considerations of internal and external stakeholders in sustainable business practices in relation to one similar country (Norway) and one different country (Spain). The study also shows how the three countries perceive the focal company and societal stakeholders differently.
Practical implications
The tested framework sheds light on focal firms’ stakeholder considerations in sustainable business practices and elucidates the extent to which firms’ account for their internal and external stakeholders in sustainable business practices.
Originality/value
This study contributes to the development of valid and reliable stakeholder theory across contexts and through time. In particular, it contributes to the development of a valid and reliable framework to categorize firms’ stakeholder considerations in sustainable business practices.
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Moza Rashed AlShehhi, Jacob Poopada Cherian, Sherine Farouk and Moza Al Nahyan
This study aims to analyze how international entrepreneurial orientation mediates the relationship between influential dynamic capabilities and the internationalization success of…
Abstract
Purpose
This study aims to analyze how international entrepreneurial orientation mediates the relationship between influential dynamic capabilities and the internationalization success of small and medium-sized enterprises (SMEs) in the context of the United Arab Emirates (UAE).
Design/methodology/approach
Adopting a quantitative approach, the researchers designed a questionnaire based on an extensive literature review and used structural equation modeling to ascertain the mediating role of international entrepreneurial orientation in the relationship between influential dynamic capabilities and SMEs' internationalization success.
Findings
The findings of this study indicate that international entrepreneurship orientation mediates the relationship between dynamic capabilities and internationalization success, as the indirect impact value is greater than the direct effect value for the relationship. Because the existence of the mediator in the model has no significant impact on the model's direct effects, full mediation is the most appropriate mediation type.
Research limitations/implications
This study has some limitations. One of the major limitations of this study relates to the limited finances of the incumbent, as the questionnaires were delivered to the respondents via email, but the incumbent had to follow up with phone calls and reminders. Second, this study mainly relied upon primary data and analysis based on the use of qualitative techniques; in future, researchers can incorporate qualitative aspects using interviews and other qualitative analysis tools and techniques. Third, limitation relates to sample size, as the sample size of research was above 500 but was limited to just UAE. Future researchers can conduct a cross-sectional analysis to determine the mediating role of different factors for the promotion of internationalization.
Practical implications
This study highlights the fundamental factors affecting the internationalization of SMEs in the UAE context, which has rarely been discussed. This study broadens the scope of internationalization by discussing its impact on SMEs' financial and non-financial performance.
Social implications
This study will contribute to the advancement of current information about the elements that impact the internationalization of SMEs and develop a new framework for analyzing SMEs' internationalization in the UAE.
Originality/value
This study contributes to the literature by developing and testing a framework based on a comprehensive literature review to include different factors and their constructs that impact the potential internationalization of SMEs in developing economies. This study identifies and addresses a research gap regarding the relationship between internationalization and company performance among UAE SMEs.
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David Allen‐Rogers, Leslie Chadwick and David Bromley
The mushrooming microcomputer industry is producing a vast array of ever cheaper, more sophisticated offerings. If correctly chosen the micro is an indispensable tool which can…
Abstract
The mushrooming microcomputer industry is producing a vast array of ever cheaper, more sophisticated offerings. If correctly chosen the micro is an indispensable tool which can certainly help the small firm to prosper.
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