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Book part
Publication date: 23 May 2022

Arcelia Toledo López and Dora Lilia Guzmán Cruz

The purpose of this study was to explore the innovative and proactive practices adopted by subsistence businesses under the COVID-19 health contingency. Evidence of the current…

Abstract

The purpose of this study was to explore the innovative and proactive practices adopted by subsistence businesses under the COVID-19 health contingency. Evidence of the current situation and the contingency practices that businesses have implemented in dealing with the economic crisis caused by the COVID-19 pandemic was collected through a literature review of secondary information sources: bibliographic and hemerographic, as well as in-depth interviews with five owners of artisanal and agricultural subsistence businesses.

Faced with uncertainty, artisanal and agricultural subsistence businesses have adopted innovative and proactive survival practices. The closure of markets, the absence of tourism, the suspension of non-essential activities, the lack of mobility and transportation, and the closure of access in rural communities are some of the realities these businesses are experiencing. Subsistence businesses in marginalised areas are a long way from accessing information technologies for online sales and home deliveries, which are implemented by most businesses in urban areas. In contrast, they revert to ancestral marketing practices such as bartering and low prices to earn an income for family food. Despite the loss of over 50% of subsistence businesses in urban and semi-urban areas, online sales through social media and websites, socially responsible initiatives, along with government support programmes, have helped others stay in business.

Details

Research in Administrative Sciences Under COVID-19
Type: Book
ISBN: 978-1-80262-298-0

Keywords

Article
Publication date: 31 January 2018

Carlos M. Jardón

Subsistence small businesses (SSBs) do not seek the maximum benefit; they only seek a benefit that enough satisfies their basic needs. In consequence, a dual behaviour of…

Abstract

Purpose

Subsistence small businesses (SSBs) do not seek the maximum benefit; they only seek a benefit that enough satisfies their basic needs. In consequence, a dual behaviour of companies is expected and possibly the competitiveness of these companies is different. The purpose of this paper is to study the dual behaviour of SSBs and the differences about their competitive advantages.

Design/methodology/approach

Data were obtained by conducting surveys with owners and managers of wood processing companies located in a region of Misiones (Argentina). The results were checked by interviews in 2012 and 2015. The research uses principal component analysis and K-means to classify the different behaviour and MANOVA analysis to study the relationships.

Findings

The findings suggest two types of SSBs and show that competitive advantages are different into two groups of companies.

Research limitations/implications

The data used refer to a certain period of time, with interviews in next periods. Sample is in a particular region and sector and generalisations should be done carefully. The variables are measured with subjective questions.

Practical implications

The findings suggest instruments to change the strategy of unsatisfied SSBs to grow.

Social implications

The growth of SSBs is very important in poorest areas. The paper suggest governments’ politics that facilitate a stable environment for improving competitiveness of SSBs.

Originality/value

SSBs are very important in developing countries, but they are not sufficiently studied. The research shows the importance of satisfying principle in the competitiveness of subsistence entrepreneurs.

Details

Management Decision, vol. 56 no. 5
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 19 March 2018

Carlos M. Jardon

This paper aims to analyse the location as root of the specificity of the sources of competitiveness in subsistence small businesses (SSBs) of wood industry to improve the…

Abstract

Purpose

This paper aims to analyse the location as root of the specificity of the sources of competitiveness in subsistence small businesses (SSBs) of wood industry to improve the situation of poverty and the different behaviour of subsistence entrepreneurs.

Design/methodology/approach

The research uses an exploratory analysis based on principal components in two phases and confirmatory analysis based on partial least square techniques applied to a sample of 113 small and medium enterprises of wood industry in Oberá, a region of Argentina.

Findings

The analysis evidences the use of competitiveness sources of SSBs and a double behaviour in SSBs according to subsistence threshold. Satisfactory SSBs use competitiveness sources to improve organizational and economic performance. Unsatisfactory SSBs find economic performance without relation to organizational performance.

Research limitations/implications

Data are cross-sectional, and in a conjuncture of economy expansion, future research should monitor the sample of firms using panel data to assess the development of relations. Sample is in a particular region and sector, and generalizations should be done carefully.

Practical implications

SSBs should raise the strategy integrating short and long term, which requires a strengthening of intellectual capital, especially in cooperation, professionalism and training. They could integrate and share a business community to develop competitive advantages of collective systemic.

Originality/value

The research shows the importance of the location for the competitiveness of SSBs and provides a classification of SSBs according to their performance.

Details

Competitiveness Review: An International Business Journal, vol. 28 no. 2
Type: Research Article
ISSN: 1059-5422

Keywords

Article
Publication date: 13 March 2017

Carlos Maria Jardon and Amandio Dasilva

Small businesses created as a subsistence activity (subsistence small businesses (SSBs)), often are oriented towards the short term. The environmental performance, by contrast, is…

Abstract

Purpose

Small businesses created as a subsistence activity (subsistence small businesses (SSBs)), often are oriented towards the short term. The environmental performance, by contrast, is an indicator of long-term strategies. The purpsoe of this paper is to analyse how intellectual capital (IC) dimensions affect environmental concern, preparing SSBs to have a proper environmental behaviour in the future.

Design/methodology/approach

A method based on the partial least square technique is suggested to select the model and estimate the parameters. A sample of 113 small businesses in the timber industry in a region of Argentina was selected for this study.

Findings

The results indicate that IC promotes environmental concern. Relational capital directly affects environmental concern, human capital and structural capital and these, in turn, indirectly affect the environmental concern through relational capital in SSBs.

Research limitations/implications

The sample used is a cross-section. IC is subjectively measured. This paper only studies small businesses in the timber sector in a region of Latin America.

Practical implications

This paper enables practitioners and scholars to understand and make legitimate decisions and conclusions that can foster SSB growth in environmental concern. The paper suggests a combination of strategies in order to achieve a sustained development.

Originality/value

The authors tested the impact of dimensions of IC on environmental concern in SSB of developing countries, showing the importance of IC in sustained strategies in these companies.

Details

Management of Environmental Quality: An International Journal, vol. 28 no. 2
Type: Research Article
ISSN: 1477-7835

Keywords

Article
Publication date: 5 March 2018

Carlos M. Jardón and Nilda C. Tañski

This paper aims to study the competitiveness of subsistence small businesses (SSBs) and the use of the place to get competitive advantages. Complementarily the paper analyzes the…

Abstract

Purpose

This paper aims to study the competitiveness of subsistence small businesses (SSBs) and the use of the place to get competitive advantages. Complementarily the paper analyzes the intellectual capital as a possible mediator for the competitiveness of SSBs.

Design/methodology/approach

Data were obtained by conducting surveys with owners and managers of wood-processing companies located in Misiones (Argentina), during 2015. The research uses principal component analysis and path analysis to study the relationships. The study introduces tangible resources and size as control variables.

Findings

The results show the importance of place as source of competitive advantages in SSBs. The SSBs present competitive advantages that generate better results. The place affects competitive advantages directly and indirectly through intellectual capital.

Research limitations/implications

The data used refer to a certain period, so the use of the panel data enables generalizing findings over time. Sample is in a particular region and sector, and generalizations should be done carefully.

Practical implications

SSBs should raise the strategy integrating short and long term, which requires a strengthening of intellectual capital, especially in cooperation, professionalism and training.

Social implications

The findings suggest specific support local policies to these businesses to improve their performance in developing countries.

Originality/value

SSBs are very important in developing countries, but they are not sufficiently studied. This paper examines place-based competitiveness of SSBs and the moderation effect of dimensions of intellectual capital.

Details

Journal of Entrepreneurship in Emerging Economies, vol. 10 no. 1
Type: Research Article
ISSN: 2053-4604

Keywords

Article
Publication date: 17 September 2020

Miriam Borchardt, Giancarlo Pereira, Alexandre Rodrigues Ferreira, Marcela Soares, Josiano Sousa and Daniel Battaglia

This paper aims to analyse the factors that influence frugal innovation (FI) in micro- and small enterprises (MSEs) at the base of the pyramid (BOP) through the theoretical lens…

Abstract

Purpose

This paper aims to analyse the factors that influence frugal innovation (FI) in micro- and small enterprises (MSEs) at the base of the pyramid (BOP) through the theoretical lens of dynamic capabilities. The input–process–output (I-P-O) framework was used as a tool to support the analysis of FI as a process.

Design/methodology/approach

A multiple case study was performed with 25 MSEs at the BOP in Brazil, all of which were in the food industry.

Findings

This study indicates that dynamic capabilities are present in enterprises that are migrating to low income and middle-class consumers, which influences their FI practices. To analyse FI in the context of MSEs at the BOP, the I-P-O framework was adapted. Enterprises that have focussed on extremely poor and subsistence markets develop more disruptive innovation, aiming to reduce the final prices they charge consumers. The primary focus of these enterprises is on maintaining ordinary capabilities. Enterprises that have focussed on low income and middle-class customers have implemented incremental innovation, adding value based on colonial tastes and close relationships with their consumers. Such a strategy demands changes in the physical facilities, use of social media and investment in quality control of these enterprises. Considerations for policymakers and institutions are also presented.

Originality/value

The use of a dynamic capabilities lens in such a context is a new approach and provides a relevant basis for further studies. The study has identified different approaches to FI and different sets of barriers and successful practices, both related to the target market segment, that could leverage FI. This study contributes to case studies from Brazil, spreading the research context beyond Asia.

Details

Journal of Entrepreneurship in Emerging Economies, vol. 13 no. 5
Type: Research Article
ISSN: 2053-4604

Keywords

Article
Publication date: 10 June 2020

Carlos M. Jardon and Xavier Martinez–Cobas

Small-scale forestry-based enterprising communities are particularly associated with their territory and, therefore, are very conditioned by the local culture. This paper aims to…

Abstract

Purpose

Small-scale forestry-based enterprising communities are particularly associated with their territory and, therefore, are very conditioned by the local culture. This paper aims to explore the relationship between culture and competitiveness in small-scale Latin-American forestry-based enterprising communities.

Design/methodology/approach

This study used 212 surveys in companies linked to the production, industrialisation and commercialisation sector of the forestry industry in the province of Misiones (Argentina), using partial least squares to analyse the relationships thereof.

Findings

Culture and competitive advantages improve the growth of small-scale timber businesses and growth, in turn, increases financial performance. However, culture does not have an impact on competitive advantage and no interaction effect of culture on competitive advantage was detected. The results can indicate that there might be a need to incorporate other concepts and operationalisation that are better suited to the geographical and industrial contexts in developing countries.

Research limitations/implications

The literature and measures used to operationalise variables in the survey did not necessarily succeed in capturing the culture in the studied small- and medium-sized enterprises. In addition, the design of the sample and subjective measures may partially condition the results.

Practical implications

For business managers and consultants, this study indicates that they must take into account the local culture to improve performance. Entrepreneurs must reorient the company strategy towards the long term, integrating local culture into their strategy to generate competitive advantages.

Social implications

Political authorities and social agents should also take into consideration the cultural aspects of the territory when implementing regulations and specific actions to improve the industry and strengthen the sense of community. The results highlight the vitality of animators and development agencies and of any factor that fosters social cohesion.

Originality/value

The paper shows a new approach to the relationship between culture and competitiveness in small-scale forestry-based enterprising communities, combining performance in a formal sector with the bazaar model.

Details

Journal of Enterprising Communities: People and Places in the Global Economy, vol. 14 no. 2
Type: Research Article
ISSN: 1750-6204

Keywords

Article
Publication date: 8 February 2022

Isahaque Ali, Md Aslam Mia, Azlinda Azman and Tajul Ariffin Masron

Although microfinance had experienced rapid growth in most developing economies, multiple borrowing remains a growing concern for practitioners and researchers in recent years…

Abstract

Purpose

Although microfinance had experienced rapid growth in most developing economies, multiple borrowing remains a growing concern for practitioners and researchers in recent years. Hence, the main purpose of the study is to evaluate the factors affecting multiple borrowing among microfinance clients.

Design/methodology/approach

The primary survey data of 400 microfinance clients from Bangladesh was collected to execute the research objective. Considering the types of dependent variable, this study employed logistics, probit, ordinary least squares (OLS) and Poisson regression techniques to analyze the data.

Findings

Among others, it was discovered that the expected (requested) loan amount is positively associated with multiple borrowing, while the level of training, small cattle farming business and marital status (widow/separated) exhibited negative effects under logistic regression. These results are robust with respect to the regression method, the specification and the definition of the outcome variable. Also, supply-side incentives (e.g. training) were found to partly influence the multiple-borrowing behavior of microfinance clients. These findings reiterate the contribution of both demand and supply-side factors to the multiple-borrowing behavior of clients. Consequently, policy implications and future research direction are advanced.

Originality/value

The authors have examined some individual-level characteristics as well as some supply-side incentives to better understand the underexplored issue of multiple-borrowing behavior among microfinance clients.

Details

Asia-Pacific Journal of Business Administration, vol. 15 no. 1
Type: Research Article
ISSN: 1757-4323

Keywords

Article
Publication date: 16 October 2018

Donath Olomi, Goodluck Charles and Norma Juma

This study aims to examine the experiences and lessons from formalisation initiatives in four sub-Saharan African countries. Drawing upon the three main theories that explain the…

Abstract

Purpose

This study aims to examine the experiences and lessons from formalisation initiatives in four sub-Saharan African countries. Drawing upon the three main theories that explain the existence of business informality – the exclusion model, rational exit model and dual economy model – the study offers an alternative path to business formalisation.

Design/methodology/approach

The researchers adopted a descriptive-qualitative method, and through the triangulation of data, identified emerging themes and patterns.

Findings

The findings suggest that the informal sector has a small layer that responds to the simplification of regulations and a larger one that requires a different formalisation framework. This shift in paradigm, indirect or group formalisation, where business associations facilitate traceability (registration), self-regulation, access to resources and services for members was observed in all four of the economies studied: Kenya, Ghana, Rwanda and Tanzania.

Research limitations/implications

As with every qualitative study, subjectivity and interpretation inevitably affect the replicability and generalisability of the findings. However, the rich meanings emerging from the qualitative analysis of the text are critically insightful.

Practical implications

Developing countries should explore indirect formalisation. Provision of workspace and construction of business premises for informal operators should be given high priority. The model for building structures for micro enterprises should change in favour of ownership by the operators through their own associations or other private sector investors.

Originality/value

A pioneering study on cross-country analysis based on sub-Saharan African nations to unearth a new paradigm, a shift towards indirect or group formalisation.

Details

Journal of Entrepreneurship in Emerging Economies, vol. 10 no. 3
Type: Research Article
ISSN: 2053-4604

Keywords

Book part
Publication date: 23 May 2022

Vanessa Ratten

The time is right for a theory on strategic entrepreneurial ecosystems and business model innovation. Both topics have increased substantially during the past couple of years due…

Abstract

The time is right for a theory on strategic entrepreneurial ecosystems and business model innovation. Both topics have increased substantially during the past couple of years due to their strategic nature. This means they are uniquely placed to provide practical advice but also theoretical development. This chapter discusses the theory in terms of how it bridges strategic planning, innovation management, and entrepreneurship literature. Thereby propelling the field of entrepreneurial ecosystems further by suggesting it has both a strategic and business model perspective. This chapter argues the reasons for a new theory to be developed in order to maintain the relevance and practicality of the entrepreneurial ecosystem literature.

Details

Strategic Entrepreneurial Ecosystems and Business Model Innovation
Type: Book
ISBN: 978-1-80382-138-2

Keywords

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