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Article
Publication date: 18 April 2023

Sanjeet Singh, Mitra Amini, Mohammed Jamshed, Hari Prapan Sharma and Waseem Khan

The purpose of the study is to examine the obstacle in doing business and determinants of credit adoption by the textile enterprises in India.

Abstract

Purpose

The purpose of the study is to examine the obstacle in doing business and determinants of credit adoption by the textile enterprises in India.

Design/methodology/approach

The study is based on World Bank’s Enterprises Survey, there are 571 enterprises involved in textile business. The enterprises survey has response on wide range of business obstacles which are categorized under three broad categories, namely, access to resource, business regulations and market externalities. Chi-square test and analysis of variance (ANOVA) have been used to examine the significant difference among firm’s profile and perceived business obstacles across the firm size. Furthermore, binary logistic regression model has been applied to explore the determinants of credit adoption by textile enterprises.

Findings

A statistically significant difference has been found in size of firms and legal status nature of establishment, gender of top manager, main product market and credit adoption from financial institutions. Majority of small- and medium-sized enterprises (SMEs) are sole proprietorship firm while large enterprises are limited partnership firms. Similarly, large enterprises have relatively more female as a top manager and international market for their product. ANOVA reveals equal degree of obstacles in doing textile business across the firm size. The logistic regression coefficient and marginal effects reveal that firm size, main market,gender of owner, number of establishment in the firms positive and significantly affects the credit adoption by 3 textile enterprises.

Practical implications

The study has some policy implications for various stakeholders such as textile business managers and promoters, government, investors and bankers for entrepreneurship development in textile sector. The study suggests that the government should incentivize small- and medium-sized businesses to increase their exports. The results show that despite government efforts to finance SMEs, fewer SMEs are receiving both short- and long-term credit. To help SMEs in the textile industry overcome financial difficulties and expand their main product market to both domestic and international levels, a soft loan should be provided based on the characteristics of textile enterprises.

Originality/value

The present study suggests the evidence-based understanding of textile business environment. The value and uniqueness of this study is to explore an ease of business textile sector using comprehensive enterprises survey data of World Bank.

Details

Research Journal of Textile and Apparel, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1560-6074

Keywords

Article
Publication date: 1 September 2022

Pham Thi Bich Ngoc, Huynh Quoc Vu and Pham Dinh Long

This paper aims to examine spillover effects of heterogenous foreign direct investment (FDI) enterprises (domestic vs. export-oriented) through horizontal and vertical linkages…

Abstract

Purpose

This paper aims to examine spillover effects of heterogenous foreign direct investment (FDI) enterprises (domestic vs. export-oriented) through horizontal and vertical linkages and absorptive capacity effect on domestic firms' total factor productivity (TFP). It clarifies the spillover effect on domestic firms in accordance with industrial zones, business size, technology sector and geographical agglomeration, respectively.

Design/methodology/approach

The dataset used is based on Vietnamese manufacturing firms during 2011–2014, input–output (I–O) Table 2012. This paper is conducted in two steps: (1) TFP is estimated by using a semi-parametric approach developed by Levinsohn and Petrin (2003); (2) Regression with panel data for domestic firms, applying the fixed effect method.

Findings

In terms of domestic-oriented FDI (DFDI) enterprise group: TFP spillover through horizontal linkages is found negative for domestic firms but positive for those participating in export. Additionally, backward linkages have a negative impact on TFP for most domestic enterprises, except for those operating in the high-tech sector. In terms of export-oriented FDI (EFDI) enterprise group, horizontal linkages have a negative impact on domestic firms' TFP including domestic ones participating in export whereas backward linkage is an important channel with positive effects. Absorptive capacity enables firms to improve productivity through linkages with EFDI and DFDI enterprises. Exporters located in industrial zones or regions with numerous exporters can receive better impacts through backward linkages EFDI.

Originality/value

Comprehensively, this is the first paper to detect FDI heterogeneity in their behavior when entering a developing country like Vietnam. The added value in this study comes from the export ability of local firms which is in line with Melitz (2003) theory that they can excel in absorping the TFP spillover from competing with DFDI competitors or from supplying to EFDI enterprises. Moreover, the role of small and medium-sized enterprises (SMEs), low technology, high technology and learning by regions affecting the impact through both horizontal and vertical linkages are included for analysis.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 26 September 2023

Khaula Alkaabi

The purpose of this study is to examine the benefits and challenges of using logistics service providers (LSPs) for small and medium-sized enterprises (SMEs) and large…

Abstract

Purpose

The purpose of this study is to examine the benefits and challenges of using logistics service providers (LSPs) for small and medium-sized enterprises (SMEs) and large corporations.

Design/methodology/approach

This study uses the focus group interview method with eight LSP companies of varying sizes in the UAE. The aim is to obtain detailed insights into the advantages and obstacles associated with using LSPs.

Findings

The interview results reveal differences in the services and payment options offered by large and small-medium-sized LSPs, leading to varying impacts on SMEs. Additionally, both large and small-medium-sized LSPs encounter challenges in delivering services to SMEs, including sustaining logistic excellence in a competitive market, meeting the high customer expectations from SMEs and large enterprises, difficulty in recruiting skilled and competent employees and high costs of business technology.

Research limitations/implications

This study is limited to the UAE context and the perspectives of eight LSP companies. The findings may not be generalizable to other regions or industries.

Practical implications

The findings of this research provide valuable insights for SMEs and large corporations considering the use of LSPs. Understanding the benefits and challenges associated with outsourcing logistics services can assist in making informed decisions and developing effective collaborations with LSPs.

Originality/value

This research contributes to the existing literature by specifically examining the benefits and challenges of using LSPs for SMEs and large corporations. This study provides a comprehensive analysis of the factors that influence logistics outsourcing decisions and highlights the unique challenges faced by LSPs and SMEs in the context of the UAE.

Details

European Business Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0955-534X

Keywords

Article
Publication date: 26 December 2023

Bochra Idris, George Saridakis, Yannis Georgellis, Yanqing Lai and Stewart Johnstone

This paper examines how soft skills training for owner-managers affects the financial performance of exporting small and medium-sized enterprises (SMEs). Furthermore, the authors…

Abstract

Purpose

This paper examines how soft skills training for owner-managers affects the financial performance of exporting small and medium-sized enterprises (SMEs). Furthermore, the authors examine the differential influence of specific owner-manager skills, such as “team working skills”, “technical skills” and “leadership skills”, on performance.

Design/methodology/approach

The paper utilises the Longitudinal Small Business Survey, which is a nationally representative employer dataset of UK SMEs with up to 249 employees, including those with no employees. The dataset contains information on firms' turnover, export status of goods or services and training provision for employees or owner-managers.

Findings

The results suggest that owner-manager's training has a positive effect on turnover in non-exporting firms. Moreover, a combination of soft and hard skills is associated with higher turnover in exporting firms. Amongst the specific skills of owner-managers, training on “team working” has the most significant impact on exporting SMEs' performance.

Practical implications

The authors' findings imply that managerial training to develop soft skills such as leadership, decision-making and communication is a worthwhile investment. The knowledge that owner-managers acquire through soft and hard skills training enables them to develop essential internationalisation competencies. Moreover, the authors demonstrate that teamwork is a significant predictor of performance.

Originality/value

The authors contribute to the literature by examining the role of owner-managers' training in shaping internal systems, structure, processes and internationalisation strategies, thus affecting SMEs performance. The authors' also provide a nuanced analysis of how various types of soft and hard skills underpin the successful implementation of internationalisation initiatives.

Details

International Journal of Manpower, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 30 January 2024

Tien Dung Luu

This study aims to investigate the relationship between geographic diversification (GD) and export performance (EP) by analysing a sample of small exporters in an emerging market.

Abstract

Purpose

This study aims to investigate the relationship between geographic diversification (GD) and export performance (EP) by analysing a sample of small exporters in an emerging market.

Design/methodology/approach

The study sample comprised 96 small and medium-sized exporting enterprises (SMEs) in Vietnam. The data is analysed using multiple regression analysis (MRA), Hayes' process model and fuzzy-set qualitative comparative analysis (fsQCA).

Findings

The results indicate that GD significantly negatively affects EP. In this dilemma, the export market orientation (EMO) and digital transformation positively moderated the relationship between GD and EP, such that the negative effect of GD on EP was weaker when EMO and digital were stronger.

Originality/value

This initial study contributes significantly to international business theories and practices, which reveal the role of GD via firm digital capacity and EMO in thriving SMEs’ EP. This study might grant new insight into international business and a critical approach to addressing the new insights small firms may face in a fragile but technologically advanced world.

Details

Marketing Intelligence & Planning, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0263-4503

Keywords

Article
Publication date: 21 December 2023

Panagiotis Mitropoulos, Alexandros Mitropoulos and Aimilia Vlami

The purpose of this paper is to measure the high-quality entrepreneurial efficiency of family-owned small- and medium-sized enterprises (SMEs) while exploring the potential…

Abstract

Purpose

The purpose of this paper is to measure the high-quality entrepreneurial efficiency of family-owned small- and medium-sized enterprises (SMEs) while exploring the potential determinants of their performance. This study places particular emphasis on the firms' technological competencies and internationalization efforts. The authors aim to shed light on the internal and external characteristics that impact the efficiency of family SMEs.

Design/methodology/approach

This study adopts a two-stage approach. In the first stage, a data envelopment analysis model is utilized to measure the high-quality entrepreneurial efficiency of family SMEs. To achieve this, this study considered as outputs three key quality aspects of entrepreneurship, namely innovativeness, export orientation and turnover rate, while the inputs were the number of employees and the business environment. Then, in the second stage, the efficiency scores are regressed against a set of environmental factors that may affect the efficiency. The proposed efficiency measurement models are utilized with a particularly rich dataset of 1,910 family SMEs from 35 developed countries.

Findings

The results demonstrated that the efficiency of family SMEs primarily engaged in the production of goods was significantly higher than those providing services. Importantly, the presence of barriers related to innovation and digitalization had a pronounced negative impact on efficiency. Additionally, scale-up firms exhibited higher levels of efficiency. When examining family SMEs within their national context, it was observed that non-EU countries and countries with a higher gross domestic product displayed significantly higher efficiencies.

Originality/value

The findings of this research provide guidance for the development of entrepreneurship-oriented policies that consider both the internal characteristics of family SMEs and the diverse socioeconomic contexts in which they operate.

Details

Journal of Family Business Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2043-6238

Keywords

Article
Publication date: 26 September 2023

Kamal Hossain, Mohammad Nurul Alam, Mohd Rizal Muwazir, Ali Alsiehemy and Noor Azlinna Azizan

The aim of this study is to examine the effects of innovativeness (INN), proactiveness, (PRC) and risk-taking (RIT) on the export performance of apparel small and medium-sized…

Abstract

Purpose

The aim of this study is to examine the effects of innovativeness (INN), proactiveness, (PRC) and risk-taking (RIT) on the export performance of apparel small and medium-sized enterprises (SMEs) and the role of differentiation and low-cost leadership (LCL) strategies as mediating effects between entrepreneurial orientation (EO) dimensions and the performance of exporting firms. INN, RIT and PRC are considered EO dimensions.

Design/methodology/approach

A cross-sectional survey was carried out by providing a questionnaire to the owners, directors and senior managers of the apparel SMEs – the primary data of 550 treated by structural equation modeling (SEM) technique for final data analysis.

Findings

The study has revealed the positive dimensional effect of EO on export performance. For the mediation effects of differentiation and LCL, differentiation strategy (DS) positively mediates between INN, PRC and export performance. However, no mediation has been found between RIT and export performance. On the other hand, LCL has found positive effects between INN, RIT and export performance. However, the mediation effect was absent between PRC and export performance.

Research limitations/implications

Limitations/implications- This study has been conducted on only Muslim owners, senior export managers and directors of apparel SMEs in Bangladesh. It has examined the two main competitive strategies as a mediator between EO dimensions and export performance. The findings of this study are based on one country data analysis.

Practical implications

EO, differentiation and low-cost leadership (LCL) strategy are resources and capabilities of an organization to create a competitive advantage to enhance performance. The factors of this research are helpful for SME practitioners.

Originality/value

The direct and indirect effects (differentiation and LCL strategy) of EO dimensions on export performance in an emerging country, i.e. the South-Asia region, is a pioneer study. Therefore, current research has theoretical and managerial implications for the international business and strategic management literature.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 9 April 2024

Aaron van Klyton, Mary-Paz Arrieta-Paredes, Vedaste Byombi Kamasa and Said Rutabayiro-Ngoga

The study explores how the intention to export affects financing and non-financing variables for small and medium-sized enterprises (SMEs) in a low-income country (LIC). The…

Abstract

Purpose

The study explores how the intention to export affects financing and non-financing variables for small and medium-sized enterprises (SMEs) in a low-income country (LIC). The objectives of this study are (1) to discern between regional and global exporting and (2) to evaluate its policymaking implications.

Design/methodology/approach

Primary survey data were collected from 330 Rwandan SMEs and were analysed using ordered logistic models as an application of the expectation-maximisation iterating algorithm, which was tested for robustness using a sampling model variation.

Findings

The results show that alternative sources of finance are the predominant choice to finance the intention to export within and outside Africa. As the scope of export intentions broadened from regional to global, there was a shift in preferences from less formal to more formal lending technologies, moving from methods like factoring to lines of credit. Moreover, reliance on bank officers became more significant, with increasing marginal effects. Finally, the study determined that government financing schemes were not relevant for SMEs pursuing either regional or global exporting.

Practical implications

Whilst alternative sources of finance predominate the export intentions of Rwandan SMEs, establishing a robust banking relationship becomes crucial for global exporting. Despite this implication, the intention to export should prompt more transparent communication regarding government financial support programmes. There is an opportunity for increased usage of relationship lending to customise support for SMEs involved in exporting, benefiting both the private and public sectors.

Originality/value

This study accentuates how export distance alters SME financing priorities. The results also contribute to understanding how the value of relationship lending changes when less familiar markets (i.e. global exporting) are the objective. Moreover, the study offers a new perspective on how institutional voids affect entrepreneurial financing decisions in LICs.

Details

International Journal of Entrepreneurial Behavior & Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1355-2554

Keywords

Article
Publication date: 15 December 2023

Khadijeh Hassanzadeh, Kiumars Shahbazi, Mohammad Movahedi and Olivier Gaussens

This paper aims to investigate the difference between the impacts of indicators of trade barriers (TBs) on bankrupt enterprises (BEs), new enterprises (NEs) and other enterprises…

Abstract

Purpose

This paper aims to investigate the difference between the impacts of indicators of trade barriers (TBs) on bankrupt enterprises (BEs), new enterprises (NEs) and other enterprises (OEs).

Design/methodology/approach

The paper has used a multiple-step approach. At the first stage, the initial data has been collected from interviews with 164 top managers of SMEs in West Azerbaijan in Iran during two periods of 2013–2015 and 2017–2019. At the second step, multiple correspondence analysis has been used to summarize the relationships between variables and construct indices for different groups of TBs. Finally, the generalized structural equation model method was used to examine the impact of export barriers.

Findings

The results showed that the political legal index is the main TBs for BEs and NEs, but it had a more significant impact on BEs; the financial index was the second major TBs factor for BEs, while OEs did not have a problem in performance index, and the financial index was classified as a minor obstacle for them. All indicators of marketing barriers (except production index) had a negative and significant effect on all enterprises; the most important TBs for NEs was the information index.

Originality/value

The results indicated that if enterprises have a strong financial system and function, they can lessen the impact of sanctions and keep themselves in the market.

Details

European Business Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0955-534X

Keywords

Article
Publication date: 15 August 2023

A. John William, M. Suresh and Nagamani Subramanian

Small and medium-sized enterprises (SMEs) are a major source of employment and revenue growth in developing nations like India, but they also face challenges from resource…

Abstract

Purpose

Small and medium-sized enterprises (SMEs) are a major source of employment and revenue growth in developing nations like India, but they also face challenges from resource shortages, shifting consumer demand and heightened competition. This research aims to discover the aspects that enhance SMEs' competitiveness and performance.

Design/methodology/approach

By analyzing literature and consulting experts, 10 factors that boost a firm's competitiveness were identified. The total interpretive structural modeling (TISM) method was then used to determine their interaction and structural hierarchy. Neutrosophic-MICMAC analysis was employed to assess the driving-dependence power of each factor.

Findings

The study discovered that the factor, namely “entrepreneurial orientation,” was found to be a significant one. “Manufacturing strategy” was found to be extremely dependent on the remaining competitive advantage factors.

Research limitations/implications

This SME-focused framework can be adopted by large businesses to enhance organizational performance by focusing on critical factors. The study depends on experts' judgment, which might be biased. Findings will assist SMEs in identifying significant factors influencing competitive advantage and relationships, increasing awareness of factors contributing to competitive edge.

Practical implications

The results of the research may encourage SME sector managers and practitioners to prioritize the factors that contribute to a firm's competitive advantage.

Originality/value

The majority of research on SME competitive advantage focuses on individual aspects. To add to the body of knowledge on the subject, this study applies the TISM technique to Indian SMEs to identify the contextual interactions among factors that increase long-term competitiveness.

Details

Benchmarking: An International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1463-5771

Keywords

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