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Book part
Publication date: 4 April 2024

Phan Anh Tu

This chapter investigates whether, and if so, how particular firms in a transition economy are involved in bribery. Built on pressure theories, we explain how the direct effects…

Abstract

This chapter investigates whether, and if so, how particular firms in a transition economy are involved in bribery. Built on pressure theories, we explain how the direct effects of firm characteristics and contextual characteristics determine firm bribery behavior. Entrepreneurs make choices based on perceptions of a specific pressure due to organizational characteristics (internal pressures) or due to context (external pressures). The relationship between firm characteristics, context, and bribery was estimated using unique data from a survey of 606 Vietnamese entrepreneurs. We controlled for various entrepreneurial, organizational, and industrial characteristics. The exploratory findings support firm attributes hypotheses, which is a negative relationship between firm size and bribery and a nonmonotonic U-shaped relationship between firm age and bribery. Besides, the effects of context on bribery are also found. Specifically, the result supports a positive relationship between competition and bribery and a negative relationship between the quality of the government and bribery.

Details

Advances in Pacific Basin Business, Economics and Finance
Type: Book
ISBN: 978-1-83753-865-2

Keywords

Article
Publication date: 27 October 2022

Dimos Chatzinikolaou and Charis Vlados

This paper aims to explore how the owners of less competitive micro-firms (MFs) perceive the “crisis–innovation–change management” triangle. It examines whether their…

Abstract

Purpose

This paper aims to explore how the owners of less competitive micro-firms (MFs) perceive the “crisis–innovation–change management” triangle. It examines whether their understanding of these overarching entrepreneurship theory principles is inadequate compared to the relevant scientific literature.

Design/methodology/approach

This qualitative analysis follows principles based on the inductive method and grounded theory, thickly describing the results from research conducted in a sample of 38 tertiary-sector MFs in the Eastern Macedonia and Thrace region – one of the least developed and competitive areas across Europe. It triangulates the data with 11 respective small firms.

Findings

MF owners perceive the crisis as an ostensibly exogenous phenomenon, innovation as something quasi-unattainable – although vaguely significant – and change management as a relatively unknown process. This understanding lies somewhat distant from the extant literature that examines the structural nature of crises, the innovational power to exit profound restructurings and the rebalancing requisite for building new overall organizational methods to survive this internal–external transformation. In essence, the triangle crisis–innovation–change management is a blind spot for the examined MF owners as they ignore its significance as an adaptation mechanism – contrary to several direct competitors.

Social implications

Based on the reluctance of these individuals to cultivate their systematic business knowledge, it seems unrealistic that they would seek to pay the necessary high price for business consulting in the future. An ideal solution would be to build public entrepreneurship clinics to provide these less dynamic and adaptable organizations with free preliminary or in-depth counseling. The Institute of Local Development-Innovation could aim to provide free consulting services to reinforce organizational physiology by coordinating different socioeconomic actors.

Originality/value

To the best of our knowledge, this empirical research is one of the first to test the comprehension of weaker MFs – less competitive and developed in organizational terms – to the triangle crisis–innovation–change management.

Details

Journal of Entrepreneurship in Emerging Economies, vol. 16 no. 3
Type: Research Article
ISSN: 2053-4604

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Article
Publication date: 5 September 2023

Anjum Razzaque, In Lee and George Mangalaraj

This study aims to empirically assess entrepreneurial leadership skills’ role in Corporate Sustainable Development (CSD) and firm performance (FP). This study considers five…

Abstract

Purpose

This study aims to empirically assess entrepreneurial leadership skills’ role in Corporate Sustainable Development (CSD) and firm performance (FP). This study considers five specific entrepreneurial traits: innovativeness, creativity, analytical thinking, emotional intelligence and passion and motivation. The motivation for this investigation stems from concerns over micro-firms vulnerabilities and small and medium enterprises (SMEs) lacking proper leadership skills. This study is guided by the resource-based view theory and conducted during the pandemic, offering insights into firms operating under constrained conditions.

Design/methodology/approach

Confirmatory factor analysis and structural equation modeling (SEM), were used on survey responses from 321 Bahraini firms. This study’s data collection occurred under environmental uncertainties due to the pandemic and provides a unique context for understanding CSD and entrepreneurial leadership skills under high business/environmental uncertainty.

Findings

The findings reveal that entrepreneurial leadership skills positively impact CSD and firm performance through creativity, passion and motivation. However, innovativeness negatively affects CSD and FP. Furthermore, CSD positively influences firm performance.

Research limitations/implications

Theoretical and practical implications, plus limitations, are also discussed in this study.

Practical implications

Understanding entrepreneurial leadership skills effect on CSD and firm performance in SMEs is important as SEMs are prone to fail in the early years. This study’s findings and its implications help guide SME leaders in furthering their entrepreneurial leadership skills to foster CSD and firm performance.

Originality/value

This study contributes to comprehending the crucial role of entrepreneurial skills, during uncertain times of the pandemic, for SMEs’ survival. It provides valuable insights for firms operating in competitive environments, offering a unique perspective on the required entrepreneurial skills and their effect on CSD and firm performance.

Article
Publication date: 18 October 2023

Lokesh Posti, Vaibhav Bhamoriya, Rahul Kumar and Rajan Khare

Waste management is a crucial aspect of sustainable development, but is it economically sustainable for marginalized informal firms? The study tries to answer this question by…

Abstract

Purpose

Waste management is a crucial aspect of sustainable development, but is it economically sustainable for marginalized informal firms? The study tries to answer this question by revisiting the Porter–Wagner dilemma about the association between environmental management (EM) and firm performance (FP). The study looks into the various liquid waste management practices (LWMPs) adopted by them and the overall impact of LWMPs on firms' economic performance.

Design/methodology/approach

The study uses the latest available cross-sectional data source on Indian informal firms by the National Sample Survey Office (NSSO), 73rd survey round 2015–16. First, ordered logistic regression was used to analyse the factors that impact a firm's adoption of a particular LWMP. Subsequently, to capture the heterogeneity among the firms based on productivity and size, a quantile regression (QR) was employed to analyse the impact of LWMPs on firm productivity. Additionally, the propensity score matching technique was used to address endogeneity concerns.

Findings

The authors find that bigger, urban-located and female-owned firms adopt cleaner LWMPs that positively impact their economic performance. Furthermore, the QR analysis observed that the most productive firms could extract higher returns from adopting cleaner LWMPs, indicating the relevance of the Porter–Wagner dilemma, i.e. environmental and economic sustainability are possibly symbiotic, thus having a feedback mechanism.

Originality/value

To the authors’ limited knowledge, this is the first study analysing the relationship between EM and FP among the informal sector firms, which are away from any regulations or obligations. Since sustainability is a two-way process, policies should be devised that incentivise sustainable business practices.

Details

Management of Environmental Quality: An International Journal, vol. 35 no. 2
Type: Research Article
ISSN: 1477-7835

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Article
Publication date: 2 January 2024

José Osvaldo De Sordi, Wanderlei Lima de Paulo, Andre Rodrigues dos Rodrigues Santos, Reed Elliot Nelson, Marcia Carvalho de Azevedo, Marcos Hashimoto and Roberto Cavallari Filho

In this paper, the authors review the literature on the nature of the small and medium-sized enterprise concept. The review examines the broad diversity of terms and definitions…

Abstract

Purpose

In this paper, the authors review the literature on the nature of the small and medium-sized enterprise concept. The review examines the broad diversity of terms and definitions used to describe these kinds of firms in scholarly and practical settings. They relate this examination to the concept of small business for the purpose of comparison, in order to highlight differences and similarities between the concepts.

Design/methodology/approach

Relevant literature including articles from academia and defining documents from practical settings was identified through a scope literature review. Field data were subsequently collected via questionnaires sent to editors and authors of articles related to the theme. The data were content analyzed and the resulting codes consolidated into dimensions in accordance with the Gioia method. Chi-squared tests were applied to categorical data.

Findings

The use of the composite category “small and medium” was found to be predominant in the labeling of small businesses in scientific articles, including those in journals that specialize in small businesses, with no justifications presented for this, characterizing a widespread and consensual practice between authors and editors. In the defining documents of practical settings, however, the authors observed greater consistency and precision both in the terms used and in the delimiting values for a small business (self-employed, micro business, small business). In the sample of 27 defining documents mentioned in the articles, 25 specifically defined “small business” and 20 defined “micro business,” using indicators such as number of employees and annual turnover. The indicators delimiting values regarding the category of micro business were the same in all the documents analyzed and, regarding the category of small business, many documents used the same delimiting values.

Practical implications

Recognizing the “non-large enterprise” myth will provide a more effective posture for editors and authors to avoid using the term “small and medium,” resulting in greater precision, understanding and knowledge regarding small businesses. A better definition of a small business by academia can help public policymakers and managers of organizations that support small businesses to tailor their actions better according to the different sizes of companies. This will also lead to social gains, given the importance of small businesses in terms of job creation and countries' economies.

Originality/value

The authors identified and described the myth of the “non-large enterprise” among academics, characterized by the dichotomous view of the business universe, composed of “large enterprises” and “non-large enterprises,” the latter group being characterized by the widespread use of the term “small and medium.”

Details

Journal of Small Business and Enterprise Development, vol. 31 no. 1
Type: Research Article
ISSN: 1462-6004

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Article
Publication date: 27 February 2024

Aman Kumar Joshi, Rajesh Matai and Nagesh N. Murthy

This study aims to investigate the impact of information and communication technology (ICT) investment on the micro, small and medium enterprises (MSME) profitability in the…

Abstract

Purpose

This study aims to investigate the impact of information and communication technology (ICT) investment on the micro, small and medium enterprises (MSME) profitability in the Indian context.

Design/methodology/approach

This study used a framework based on the ICT investment and firm size, measuring the impact on profit before depreciation, interest, tax and amortisation of MSME by taking a random sampling of 300 Indian MSME manufacturing firm’s secondary data from the Prowess database. This framework was analysed using the design of experiment (DoE) technique.

Findings

The study showed that ICT investment has a significant positive relationship with profitability. This study examines the different ICT investment levels to predict investment strategies and fine-tune profit targets. The critical finding is that ICT investment maximises profit at one million rupees. This discovery aids MSME leaders’ sustainable business decision-making.

Research limitations/implications

This study has an explicit limit to the Indian context, where the firm requirements of countries are different, and these findings need to be validated with many operating variables and applied to more firms with more data. Even so, as a theoretical implication, this study took a novel approach to ICT adoption (through ICT investment) in the Indian MSME sector with guiding levels of ICT investment for each type of firm (i.e. micro, small and medium). This study opens new avenues for investigating researchers and stakeholders by exploring other factors responsible for ICT adoption.

Practical implications

This study uniquely provides practitioners with the functional level of ICT investment for MSMEs in the Indian context. These finding guides top management to make strategic ICT adoption decisions with information symmetry. At the same time, these findings suggest financial institutions astern their credit programme to provide credit for ICT investment in MSMEs.

Social implications

This study highlights the value of ICT as a practical resource for business owners that significantly makes MSMEs more informed and profitable, thus creating more jobs and incrementing the country’s gross domestic product (GDP).

Originality/value

This study offers unique empirical findings on how decision makers in MSMEs maximise profits through optimal ICT investment levels depending upon the firm size in an emerging economy like India. There is evidence in the study to conclude that ICT is a need of MSME and has implications for firm performance.

Details

The Bottom Line, vol. 37 no. 1
Type: Research Article
ISSN: 0888-045X

Keywords

Article
Publication date: 15 February 2024

Zhongwei Sun, Xuchuang Zhang and Xiaofang Wu

This study investigates the mediating role of wage and workforce adjustments, along with the moderating influence of collective bargaining system and employees’ localization, in…

Abstract

Purpose

This study investigates the mediating role of wage and workforce adjustments, along with the moderating influence of collective bargaining system and employees’ localization, in elucidating the relationship between the COVID-19 shock and workplace employee relations (ER) tension.

Design/methodology/approach

Survey data from 1,483 enterprises across 21 prefectural cities in China’s Guangdong Province are collected. The hypotheses are tested by logistic regression.

Findings

The study reveals a positive correlation between the COVID-19 shock and workplace ER tension across crisis-hit enterprises, irrespective of their size or industrial sector. Wage reduction and mass layoffs emerge as significant mediators, while the collective bargaining system (CBS) and employees’ localization act as moderators.

Research limitations/implications

The measurement of ER is limited in a single-item scale. Representation of China is also limited since the study exclusively focuses on Guangdong province. The study offers some contributions that firm-level data reveal the pathway through which COVID-19 creates ER tension.

Practical implications

On the one hand, the authors recommend the establishment of an effective communication system between employers and employees. On the other hand, managers should consider the role of informal institutions. Furthermore, the authors suggest implementing tailored strategies at the enterprise level.

Social implications

Intense external shocks result in widespread layoffs and increased wage reductions within workplaces, and under such circumstances, formal or informal institutions may be insufficient to alleviate ER tension. In this case, the state authorities – including governments and other public agencies or bodies – are necessary to intervene in to organize tripartite dialogue.

Originality/value

While numerous emerging studies on COVID-19 explore how different countries manage industrial relations tension at the national level, few focus on ER at workplace level, particularly in developing countries. Understanding how workplace ER evolve during external shocks and identifying institutional measures to mitigate their negative impact is crucial for future crisis management.

Details

Employee Relations: The International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0142-5455

Keywords

Open Access
Article
Publication date: 19 April 2024

Thi Bich Tran and Duy Khoi Nguyen

This study investigates the optimum size for manufacturing firms and the impact of subcontracting on firms' likelihood of achieving their optimal scale in Vietnam.

Abstract

Purpose

This study investigates the optimum size for manufacturing firms and the impact of subcontracting on firms' likelihood of achieving their optimal scale in Vietnam.

Design/methodology/approach

Using data from the enterprise census in 2017 and 2021, the paper first estimates the production function to identify the optimum firm size for manufacturing firms and then, applies the logit model to investigate factors associated with the optimal firm size.

Findings

The study reveals that medium-sized firms exhibit the highest level of productivity. Nevertheless, a consistent trend emerges, indicating that nearly 90% of manufacturing firms in Vietnam operated below their optimal scale in both 2017 and 2021. An analysis of the impact of subcontracting on firms' likelihood to achieve their optimal scale emphasizes its crucial role, especially for foreign firms, exerting an influence nearly five times greater than that of the judiciary system.

Practical implications

The paper's findings offer crucial policy implications, suggesting that initiatives aimed at enhancing the overall productivity of the manufacturing sector should prioritise facilitating contract arrangements to encourage firms to reach their optimal size. These insights are also valuable for other countries with comparable firm size distributions.

Originality/value

This paper provides the first empirical evidence on the relationship between firm size and productivity as well as the role of subcontracting in firms' ability to reach their optimal scale in a country with a right-skewed distribution of firm sizes.

Details

Journal of Economics and Development, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1859-0020

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Article
Publication date: 27 April 2023

Beatriz Pinheiro, Inês Henriques, Lara Almeida and Mário Franco

This study aims to understand whether entrepreneurial alertness is a relevant determinant in creating opportunities in the context of small- and medium-sized enterprises (SME).

Abstract

Purpose

This study aims to understand whether entrepreneurial alertness is a relevant determinant in creating opportunities in the context of small- and medium-sized enterprises (SME).

Design/methodology/approach

To this end, qualitative research was undertaken, specifically the case study method. The study context was formed of four SMEs (cases) located in an inland region of Portugal. The data-collecting instrument was an individual interview held with the owners managers of the chosen firms, and the data treatment technique was content and thematic analyses.

Findings

The results obtained reveal that entrepreneurial alertness is always present in the SME entrepreneurs/business people’s daily lives and clearly creates good business opportunities not yet observed by the competition.

Practical implications

This study seeks to help SME owners managers to understand the phenomenon of entrepreneurial alertness and understand the importance of this determinant for their firms’ success.

Originality/value

This study is innovative as it helps to characterise and understand entrepreneurial alertness by showing its importance for SMEs in creating valuable opportunities and achieving success.

Details

International Journal of Organizational Analysis, vol. 32 no. 3
Type: Research Article
ISSN: 1934-8835

Keywords

Open Access
Article
Publication date: 27 June 2023

Antti Norkio

Intangible capital (IC) is an important factor for economic growth and firm performance. The role IC has played has become even more crucial in recent decades, possibly…

Abstract

Purpose

Intangible capital (IC) is an important factor for economic growth and firm performance. The role IC has played has become even more crucial in recent decades, possibly influencing debt capacity and default risk assessment. This paper studies how entrepreneurial and employee-based IC affects financial leverage.

Design/methodology/approach

Employer–employee unbalanced panel data provided by Statistics Finland that refer to Finnish small and medium-sized enterprises (SMEs) are used. Intangibles are measured with an expenditure-based method. Employee-based IC and entrepreneurial knowledge are used to explain debt financing in SMEs.

Findings

The findings imply that IC-intensive firms have less debt capacity due to weak pledgeability and asymmetric information between borrower and lender. Entrepreneurs with managerial or financial knowledge increase the firm's debt capacity compared to other entrepreneurs, especially in knowledge-intensive services (KIS). One explanation is that the entrepreneurs are more competent in negotiating with lenders as the entrepreneurs possess better financial skills. Entrepreneurs with technical knowledge decrease the firm's debt capacity in all industries.

Originality/value

While some earlier research focused on the IC–financial leverage relationship, hardly any study has looked at entrepreneurial IC. This paper provides new insights by including entrepreneurial IC alongside employee-based IC.

Details

Managerial Finance, vol. 50 no. 2
Type: Research Article
ISSN: 0307-4358

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