The purpose of this study is to empirically assess the relationship between the dimensions of creditworthiness and access to finance of small and medium-sized enterprises…
The purpose of this study is to empirically assess the relationship between the dimensions of creditworthiness and access to finance of small and medium-sized enterprises (SMEs) in Malaysia, with creditworthiness as the mediating variable. The lack of empirical research on the relationship between creditworthiness and access to finance forms the motivation of this study.
Questionnaires covering various characteristics of the firms, their access to finance and creditworthiness were distributed to a total of 456 SMEs in the Kuala Lumpur and Selangor region for this purpose. A total of 158 responses were returned, of which 145 were usable responses and the relationships are tested using SEM-PLS.
This study finds that an SME and its owner’s character have significant influences on access to finance. An SME’s condition and its ability to provide high quality collateral are found to be highly significant in influencing its access to finance. Capacity is significant but its significance is low, while capital is insignificant. Creditworthiness has a significant positive influence on access to finance.
This study contributes to the important yet under-researched issue of access to finance for SMEs. It highlights the issue of character of applicant as an important dimension of creditworthiness that can significantly influence access to finance for SMEs.
This study investigates the influence of inter-firm linkages between small and medium enterprises (SMEs) and large firms on the relationship between an SME's…
This study investigates the influence of inter-firm linkages between small and medium enterprises (SMEs) and large firms on the relationship between an SME's creditworthiness and its access to finance.
Survey questionnaire was distributed to 456 SMEs in the manufacturing sector in the Selangor and Federal Territory of Kuala Lumpur regions and a total of 145 useable responses were gathered. Investigation into the possible differences in the effect of creditworthiness – and its dimensions – on access to finance for SMEs with and without linkages are examined using Partial Least Squares-Multi Group Analysis (PLS-MGA).
It is found that the relationship between creditworthiness and access to finance is significant for both SMEs with and without links to large firms. However, no significant difference is found in the effect of creditworthiness on access to finance for both types of SME. Further analysis on the five different dimensions of creditworthiness shows statistically significant differences between SMEs with links and those without for the dimensions of collateral and condition. This implies that alliances formed between SMEs and large firms do not have much of an influence on the overall creditworthiness but do influence the collateral and condition of the SME.
This study contributes to the understanding of the effects of interfirm linkages on SME creditworthiness and access to finance. To the authors' knowledge no such study has been conducted on links between SMEs and large firms, especially in a developing country such as Malaysia.
The purpose of this paper is to provide insights into the conduct of recruitment process outsourcing (RPO), based on a real-life case study of one company in Malaysia. The…
The purpose of this paper is to provide insights into the conduct of recruitment process outsourcing (RPO), based on a real-life case study of one company in Malaysia. The paper analyses the company’s process of recruitment outsourcing from beginning to end, in three sections: RPO decision, RPO implementation and RPO outcome.
The case study was carried out through semi-structured interviews with relevant respondents, including the country HR manager, the HR staff and operation managers in the organisation, plus with the RPO provider.
The key findings, from a theoretical and academic viewpoint, are that RPO decisions and implementation cannot be fully or properly explained by one theory, but are better explained by integrating transaction cost economics, the resource-based view and the Agency Theory. The study also highlights the importance of involving end users in the RPO process.
While this single case study gives a clear, in-depth insight into the issues in this particular instance, future research extending to a wider range of organisations would serve to expand the findings and provide more generalisable results.
Practitioners and service providers should be able to draw valuable lessons from the experience of Tech-solution, particularly from the different perceptions and levels of satisfaction about the service provider’s performance between internal HR and the internal end users (operation managers).
This paper provides a specific and detailed analysis of RPO implementation in practice. It also addresses the call for more RPO outsourcing-specific research in the extant literature.