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Article
Publication date: 5 May 2023

Pragati Priya and Chandan Sharma

The study examines how the liquid assets holdings among non-financial Indian firms vary due to tightening monetary policy and increasing macroeconomic uncertainty.

Abstract

Purpose

The study examines how the liquid assets holdings among non-financial Indian firms vary due to tightening monetary policy and increasing macroeconomic uncertainty.

Design/methodology/approach

The authors analyze 5,640 firms for the period 2011–2021. The authors first estimate India’s monetary policy shocks by decomposing the exogenous shocks from the systematic component of monetary policy changes. The authors then examine the effects of the estimated monetary policy shocks and a range of macroeconomic and policy uncertainty indicators on companies’ cash and bank balances to asset ratios using two-step system generalized method of moments (GMM) estimators.

Findings

The authors find that monetary policy shocks cause the cross-sectional variances for the firms’ liquidity holdings to increase. In anticipation of macroeconomic volatility, companies respond to these shocks after taking into account all the firm-level information to minimize the opportunity costs of holding extra cash or too few cash balances that can hamper firms’ operations. Furthermore, compared to other shocks, the contribution of inflation-induced shocks is predicted to be the largest in the cross-sectional deviation of the firm’s cash holdings. The authors also find that low-growth, older and financially constrained firms observe lesser heterogeneity in their cash holdings as they tend to hold cash as a precautionary buffer.

Originality/value

The authors’ approach to the analysis is unique in many ways. To address potential transmission bias, the authors use nowcasts and forecasts of real gross domestic product (GDP) growth and inflation to generate a series of exogenous monetary policy shocks for identifying unanticipated changes in short-term interest rates. Subsequently, the authors estimate how these shocks affect the cross-sectional deviation of liquid assets. For estimating the effects of macroeconomic uncertainty on corporate cash demand, the authors utilize a range of proxies for uncertainty. Unlike previous attempts, the authors offer evidence for a developing and fast-emerging economy.

Details

International Journal of Managerial Finance, vol. 20 no. 1
Type: Research Article
ISSN: 1743-9132

Keywords

Article
Publication date: 29 November 2022

Christiana Adeola Olawunmi and Andrew Paul Clarke

This study aims to explore marketing strategies that UK fish farming businesses can use to gain a competitive advantage. The marketing strategies examined include product branding…

Abstract

Purpose

This study aims to explore marketing strategies that UK fish farming businesses can use to gain a competitive advantage. The marketing strategies examined include product branding and core competencies, sales promotion, market positioning and segmentation.

Design/methodology/approach

A survey through an online questionnaire was mailed to five randomly selected trade associations of UK fish farming businesses and distributed to their registered members, of which 200 responded. Both male and female genders with different age groups and levels of experience in the UK fish farming business participated. In addition, ten articles were sampled for a systematic review.

Findings

Results show that UK fish farming businesses could increase sales by using ecolabels in product branding to attract premium prices, build consumer confidence and using high-quality packages for fish products will keep fish fresh for a longer period.

Research limitations/implications

The scope of this research is limited to the UK. The findings cannot be generalised and used for other jurisdictions because of variable economic and market conditions.

Originality/value

A significant recommendation from this case study is that fish farming businesses need to be creative and innovative in ways such as leveraging branding, sales promotions and core competencies to win the trust and confidence of consumers. Most importantly, each fish farming business should know the specific marketing strategy that works for them; this case study shows that not all branding and sales promotion techniques enhance competitiveness. The scope of this research is limited to the UK. The findings cannot be generalised and used for other jurisdictions because of variable economic and market conditions.

Details

Journal of Enterprising Communities: People and Places in the Global Economy, vol. 17 no. 6
Type: Research Article
ISSN: 1750-6204

Keywords

Article
Publication date: 5 July 2022

Xhavit Islami

The purpose of this paper is to examine the mediating role of strategic supplier partnership and moderating role of information sharing (IS), in the relationship between lean…

Abstract

Purpose

The purpose of this paper is to examine the mediating role of strategic supplier partnership and moderating role of information sharing (IS), in the relationship between lean manufacturing and firms’ financial performance (FP).

Design/methodology/approach

Utilizing the contingency approach, this study develops a research model to validate the proposition that a proper integration of supply chain (SC) practices enhances the financial performance of the firm. The study uses data from one hundred and fifty-seven manufacturing firms. The results are generated on structural equation modeling (SEM) using AMOS software.

Findings

The study finds that strategic supplier partnership partially mediates the relationship between lean manufacturing and FP, whereas, empirically, it could not demonstrate that IS significantly moderates the relationship between lean manufacturing and FP.

Practical implications

The paper theoretically develops logic for and empirically shows that strategic supplier partnership is an appropriate practice for mediating the impact of lean manufacturing on FP.

Originality/value

This strategic supply chain integration contributes to theory and demonstrates that SC practices’ correct synchronization and orchestration may realize superior FP. In addition, this research provides a sustainable strategic SC model that creates value and provides a competitive advantage for firms in the long term.

Details

Benchmarking: An International Journal, vol. 30 no. 9
Type: Research Article
ISSN: 1463-5771

Keywords

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