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1 – 10 of over 42000Dong Xiang and Andrew C. Worthington
This paper aims to examine the impact of government financial assistance provided to Australian small and medium-sized enterprises (SMEs).
Abstract
Purpose
This paper aims to examine the impact of government financial assistance provided to Australian small and medium-sized enterprises (SMEs).
Design/methodology/approach
This study uses firm-level panel data on more than 2,000 SMEs over a five-year period from the Business Longitudinal Database compiled by the Australian Bureau of Statistics. The authors measure the impact of government financial assistance in terms of subsequent SME performance (income from sales of goods and services and profitability) and changes in the availability of alternative nongovernment finance.
Findings
The authors find government financial assistance helps SMEs improve performance over and above the effects of conventional financing. They also find than the implicit guarantee effect signalled by a firm receiving government financial assistance suggests firms are more likely to obtain nongovernment finance in the future. Control factors that significantly affect SME performance and finance availability include business size, the level of innovation, business objectives and industry.
Research limitations/implications
Nearly all of the responses in the original survey data are qualitative, so we are unable to assess how the strength of these relationships varies by the levels of assistance, income and profitability. The measure of government financial assistance of the authors is also general in that it includes grants, subsidies and rebates from any Australian Government organisation, so we are unable to comment on the impact of individual federal, state or local government programmes.
Practical implications
Government financial assistance helps SMEs improve both immediate and future performance as measured by income and profitability. This could be because government financial assistance quickly overcomes the financial constraints endemic in SMEs. Government financial assistance also helps SMEs obtain nongovernment finance in the future. The authors conjecture that this is because it overcomes some of the information opaqueness of SMEs.
Originality/value
Few studies focus on the impact of direct government financial assistance compared with indirect assistance as typical in credit guarantee schemes. The authors use a very large and detailed data set on Australian SMEs to undertake the analysis.
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Dewi Darmastuti and Dyah Setyaningrum
This study aims to investigate the use of discretionary spending, especially by incumbents, to win the election and whether incumbents can take more advantage of such spending…
Abstract
This study aims to investigate the use of discretionary spending, especially by incumbents, to win the election and whether incumbents can take more advantage of such spending than the new local government heads. This study also examines the political monitoring effect in suppressing discretionary spending. By using panel regression on 225 local governments during 2013–2016, the results indicate that political motive positively affects discretionary spending proportion ahead of the election. Following the public choice theory that although local government heads act on the interests of voters, their primary motivation is personal interest. Incumbent’s victory does not affect total discretionary spending and the financial assistance expenditure/transfer but has a significant positive effect on grant and social assistance spending. It generally supports Corruption Eradication Commission’s allegations of “returning the favor” is carried out by elected heads in one year following the election. But, it shows that incumbents are more able to utilize grants and social assistance spending than the new local government heads. Political monitoring from the opposition party has proven to have a direct negative effect on discretionary spending proportion. Tracking of the one year after the election should be done to prevent misuse of discretionary spending for incumbent political interests. The results of this study are expected to provide input to regulators to develop more comprehensive regulation, for example, strict sanctions for violations related to accountability for the use of such funds to limit the opportunistic behavior of the local government heads.
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Anisur R. Faroque, Hafiza Sultana, Jashim Uddin Ahmed, Farhad Uddin Ahmed and Mahabubur Rahman
This study aims to analyze the individual and joint effects of institutional support by government and nongovernment institutions on early internationalizing firms’ (EIFs…
Abstract
Purpose
This study aims to analyze the individual and joint effects of institutional support by government and nongovernment institutions on early internationalizing firms’ (EIFs) performance. It also investigated the moderating impact of firm age and size on the institutional support-firms’ export performance relationships.
Design/methodology/approach
Data were collected from 705 EIFs in the apparel industry of Bangladesh and analyzed with hierarchical regression.
Findings
The positive influence of institutional support on exporting firms’ financial performance is stronger for the joint effect of government and nongovernment assistance than the individual impact. Firms’ size positively moderates the impact of individual government and nongovernment assistance, while age positively moderates their resource-bundling effect.
Research limitations/implications
The findings suggest the necessity of integrating resources from diverse but complementary sources of institutional support for superior export performance. The findings also show the presence of the liability of smallness and liability of newness in the standalone and joint influence of institutional support, respectively.
Practical implications
Firms need to bundle resources obtained from the government (unrequited) and nongovernment (reciprocal) institutional support to overcome the liability of smallness they might encounter while availing of support from only one source.
Originality/value
Distinguishing between government and nongovernment institutional support, this paper sheds light on exporting firms’ resource-bundling mechanism for these two sources of support in the backdrop of an emerging economy. It also offers fresh insights into the critical role of the liabilities of newness and smallness in early internationalization, especially with regard to the home-country institutional environment.
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Reflects on the past decade of change in Central and Eastern Europe and the former Soviet Union. Notes the varying degrees of successful reform and aid/technical assistance for…
Abstract
Reflects on the past decade of change in Central and Eastern Europe and the former Soviet Union. Notes the varying degrees of successful reform and aid/technical assistance for the region provided by international organizations. Examines efforts to provide technical assistance through the application of best practice to local governments. Develops a case study, using Hungary as a setting, of a local government deputy mayor and simulates a technical assistance best practice transfer. Describes also an alternative home‐grown best practice project at the local level. Lessons learned from these projects show that historical and contextual conditions have a very large impact on capacity building efforts in countries of transition; political values have to be developed and an organizational infrastructure to express them is essential. Ultimately, the knowledge and skills of senior managers must be cultivated, to assist them in nurturing the social capital needed for them to govern effectively.
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Anisur R. Faroque and Yoshi Takahashi
The purpose of this paper is to investigate the contingent relationship between government marketing assistance for export and the performance of early internationalizing firms in…
Abstract
Purpose
The purpose of this paper is to investigate the contingent relationship between government marketing assistance for export and the performance of early internationalizing firms in a developing country’s low-tech industry.
Design/methodology/approach
The authors employ hierarchical multiple regression based on the data obtained from Bangladesh, a south Asian developing country and a leading exporter of apparel products worldwide. The authors used a sample of 224 early internationalizing apparel firms to test the hypotheses.
Findings
Research describes the relationship between export assistance and performance as direct. Recently, some researchers have suggested moderators between them. The authors argue that the relationship between the two is contingent on the level of export commitment. The authors find that neither informational nor experiential marketing assistance is directly related to export performance. The relationship between informational assistance and export performance is significantly, but (unexpectedly) negatively, moderated by export commitment. The effect of experiential assistance is positively, but only marginally, moderated by export commitment.
Originality/value
Contrary to researchers’ overarching focus on a direct relationship, the authors investigate the moderation on the relationship between export informational and experiential marketing assistance, and early internationalizing firms’ performance in a developing country’s low-tech industry setting. The authors use export commitment as the moderator; it is one of the most important internal determinants of export performance and extremely relevant in early internationalizing firms. The differential impact of informational and experiential assistance provides additional insights.
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A.K. Shamsuddoha, M. Yunus Ali and Nelson Oly Ndubisi
The purpose of this paper is to examine the effects of government assistance programmes on internationalization of SMEs from an Asian developing nation.
Abstract
Purpose
The purpose of this paper is to examine the effects of government assistance programmes on internationalization of SMEs from an Asian developing nation.
Design/methodology/approach
Primary data from a sample of 203 SMEs in three export‐oriented industries in Bangladesh were analyzed using structural equations model to examine both direct and indirect causal effects of government assistance on their internationalization.
Findings
Results suggest that the usage of market development‐related government assistance significantly influence internationalization directly as well as indirectly via other determinants, whereas finance‐ and guarantee‐related assistance has only indirect effect.
Practical implications
Government export assistance programmes play an important role in the SMEs' internationalization process by contributing to a number of firm‐ and management‐related factors that determine international marketing performance of a firm. The study provides a guideline for SME managers as to how they can benefit from both categories of export assistance programmes in improving their positive attitudes towards the export market environment, building their knowledge and enhancing commitment to exporting for better success in their international operations.
Originality/value
The importance of export assistance programmes is well recognized in the literature but its causal effect on internationalization of small and medium‐sized enterprises (SMEs) is low. The paper tries to fill this gap by reporting the results of an empirical study examining effects of government assistance programmes on internationalization of SMEs from an Asian developing nation, where there is a gross dearth of research.
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Undertakes a gender‐comparative review and comparison of the Australian and international literature on the use, needs and awareness of government and independent sources of…
Abstract
Undertakes a gender‐comparative review and comparison of the Australian and international literature on the use, needs and awareness of government and independent sources of training and assistance for women in small business to identify whether women's needs differ from those of men and whether existing delivery mechanisms disadvantage them. Consolidates findings of research and sets an agenda for researchers, policy makers and assistance providers. The findings highlight: the potential for accountants, the most used source, to expand their role; the formulation of quality standards and accreditation for consultants engaged by government; electronic information technology systems to mitigate location and language barriers; and user‐friendly training content and delivery. Future research should clearly delineate between the various sources of training and assistance; their use and usefulness; the awareness, use and needs of women; and variations over business life‐cycle stages.
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Azrain Nasyrah Mustapa and Armanurah Mohamad
In Malaysia, small- and medium-sized enterprises (SMEs) are the significant contributor to economic growth. However, since the coronavirus outbreak, Malaysian SME business…
Abstract
In Malaysia, small- and medium-sized enterprises (SMEs) are the significant contributor to economic growth. However, since the coronavirus outbreak, Malaysian SME business activity has been severely slowed. Therefore, during this COVID-19 pandemic crisis, government business supports and assistances are indispensable because if SMEs go down, the country will be affected. This chapter will focus on supports and assistances provided by Malaysian government on SMEs impacted from the COVID-19 pandemic crisis. The chapter will be introduced with the background of SMEs in Malaysia, follow by scenarios of COVID-19, the Movement Control Order imposed by Malaysian government, and the impact of COVID-19 on SMEs. Next the chapter will discuss the government supports and assistances and follow by government monitoring on supports and assistances given. Lastly, the chapter ends with suggestions for SME recovery of COVID-19 pandemic crisis.
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Brian Dollery, Michael Fletcher and D.S. Prasada Rao
Australian fiscal federalism possesses a greater degree of vertical imbalance than comparable federations elsewhere due to a concentration of revenue-raising powers at the level…
Abstract
Australian fiscal federalism possesses a greater degree of vertical imbalance than comparable federations elsewhere due to a concentration of revenue-raising powers at the level of the Commonwealth government and a concentration of expenditure functions at the state and local government levels. Efforts to deal with this problem have focused on intergovernmental grants. While substantial literature exists on the financial nexus between the Commonwealth and state governments, little research effort has been expended on the local government grants process. The present paper seeks to remedy this by documenting the evolution and role of the local government grants process.
Zelealem T. Temtime, S.V. Chinyoka and J.P.W. Shunda
There is a general consensus among public policy makers, academics and researchers that entrepreneurship is a vital route to economic advancement for both developed and developing…
Abstract
There is a general consensus among public policy makers, academics and researchers that entrepreneurship is a vital route to economic advancement for both developed and developing economies. As a result, a host of small business assistance programs are conducted by public, private and nonprofit organizations. Although the need for integrating these programs has always been a high priority on the national agenda for public policy and research in entrepreneurship, their implementation particularly in developing economies is characterized by fragmentation and lack of coordination. Small business assistance will be meaningful if they are designed in a holistic and systematic way and implemented with a view to achieve long term sustainable development. This paper offers a conceptual framework for designing an integrated model of small business assistance. The paper identifies the major characteristics of small firms and potential small business assistance programs, and presents a decision tree model that matches the characteristics of firms with appropriate assistance program(s). A case study of small business assistance programs in the Republic of Botswana was conducted to provide an empirical evidence of the need for an integrated design or model. Finally, conclusions, discussions and the implications of the model for policy makers, practitioners and further research are presented.
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