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1 – 6 of 6Rizal Yaya, Rudy Suryanto, Yazid Abdullahi Abubakar, Nawal Kasim, Lukman Raimi and Siti Syifa Irfana
The global recession caused by the COVID-19 pandemic has led to the closure of thousands of village-owned enterprises (VOEs), which are community-managed enterprises that operate…
Abstract
Purpose
The global recession caused by the COVID-19 pandemic has led to the closure of thousands of village-owned enterprises (VOEs), which are community-managed enterprises that operate in the hostile rural areas in emerging economies. Thus, considering that a Schumpeterian view of economic downturn sees recessions as times where old products/services decline while new products/services emerge, this paper aims to explore the specific innovation-based diversification strategies that matter for the survival of emerging economy VOEs in recession periods to develop new theoretical insights.
Design/methodology/approach
The study is based on multiple-case studies of 13 leading VOEs operating in the rural areas of Java Island in Indonesia, an emerging economy. The data was analysed using within-case and cross-case analyses.
Findings
Overall, a number of major novel findings have emerged from the analysis, based on which the authors developed several new propositions. First, from the perspectives of both new product and new service diversification, “unrelated diversification” is the primary resilience strategy that seems to be associated with the survival of VOEs in the COVID-19 recession, over and above “related diversification”. Second, from an industrial sector diversification perspective, the most dominant resilient strategy for surviving the recession is “unrelated diversification into tertiary sectors (service sector)”, over and above diversification into the primary sector (agriculture, fisheries and mining) and secondary sector (manufacturing and construction).
Originality/value
The authors contribute to the literature on entrepreneurship in emerging economies by identifying the resilience diversification strategies that matter for the survival of VOEs in recession.
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Ibrahim Kabir and Yazid Abdullahi Abubakar
The global economic crisis triggered by the coronavirus disease 2019 (COVID-19) has caused the closure of countless ethnic minority businesses (EMBs) worldwide, partly due to the…
Abstract
Purpose
The global economic crisis triggered by the coronavirus disease 2019 (COVID-19) has caused the closure of countless ethnic minority businesses (EMBs) worldwide, partly due to the public policy responses. This paper investigates whether EMBs’ entrepreneurial orientation (EO) mediates the impact of public policy responses to COVID-19 on their survival.
Design/methodology/approach
Utilizing institutional theory, the authors developed a novel conceptual framework that divides policy responses to COVID-19 into aggressive (imposing restrictions on movement, e.g. lockdowns) and less aggressive policy responses (not imposing restrictions on movement, e.g. social distancing). The authors then surveyed intra-regional EMBs, specifically businesses owned by ethnic minorities in the Kano and Katsina provinces of Nigeria, and analysed the data using structural equation modelling and analysis of variance (ANOVA).
Findings
The authors found that intra-regional EMBs in developing countries are very vulnerable to the public policy responses imposed by governments to curb COVID-19. Aggressive policy responses have a more significant negative effect on the survival of intra-regional EMBs than their less aggressive counterparts. Furthermore, the authors found that EO as a crisis response strategy significantly supports intra-regional EMBs in managing their vulnerability to the hostile institutional environment, reduces the adverse effect of public policy responses and stimulates their survival during the COVID-19 pandemic.
Originality/value
This paper contributes to the institutional theory of small and medium-sized enterprises (SMEs)/entrepreneurship and the literature on EMBs by showing the role of EO in mediating the effects of COVID-19 institutional policies on the survival of intra-regional EMBs.
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Ibrahim Kabir, M. Muzamil Naqshbandi, Yazid Abdullahi Abubakar and Thuraya Farhana Said
The purpose of this paper is to investigate the relationship between culture and entrepreneurial orientation (EO) in informal enterprises and the moderating role of their survival…
Abstract
Purpose
The purpose of this paper is to investigate the relationship between culture and entrepreneurial orientation (EO) in informal enterprises and the moderating role of their survival intent.
Design/methodology/approach
This paper used Hofstede's national culture framework and theory of EO to develop a novel conceptual framework. The data were collected using a survey from a sample of 385 informal enterprises and analyzed using partial least square structural equation modelling.
Findings
The findings of this paper confirmed that power distance, uncertainty avoidance and normative orientation negatively affect EO in contrast with the positive effect of individualism and masculinity. Although power distance and uncertainty avoidance negatively affect an EO, the findings showed that survival intent weakens the negative nexus between these variables and strengthens the positive effect of individualism and masculinity on EO.
Research limitations/implications
Although this study examined how survival intent moderates the nexus between national culture and EO across informal enterprises in emerging economies, the data were collected in Nigeria only. This study also examined EO in aggregate and considered only one sector.
Practical implications
This study recommends that policymakers and practitioners understand the important links between firms' characteristics, culture and EO while designing training programs, policies and procedures. Doing so will support the successful implementation of entrepreneurship programs, address the prevailing entrepreneurial needs and cultural deficits across enterprises and promote the efficient allocation of resources.
Originality/value
This paper extends Hofstede's framework of national culture and EO in the context of informal enterprises in emerging economies by examining the nexus between national culture and EO, moderated by survival intent.
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Hazwan Haini, Yazid Abdullahi Abubakar and Pang Wei Loon
This study examines whether institutional quality affects the relationship between income inequality and entrepreneurial activity. The authors specifically examine whether the…
Abstract
Purpose
This study examines whether institutional quality affects the relationship between income inequality and entrepreneurial activity. The authors specifically examine whether the greasing or sanding effect holds for the relationship between income inequality and entrepreneurship, while moderating for institutional quality. The greasing effects suggest that income inequality can promote entrepreneurial activity, while the sanding effects disincentivise it.
Design/methodology/approach
The authors examine this relationship using a sample of 100 advanced and developing countries from 2006 to 2018 using a dynamic panel estimator to control endogeneity and simultaneity. Additionally, the authors include an interaction term to estimate the marginal effects of income inequality, while moderating for institutional quality. Furthermore, the authors differentiate between six measures of institutional quality.
Findings
Overall, the authors find that institutional quality and income inequality have a positive and significant impact on entrepreneurial activity. However, when moderating for institutional quality, the findings show that the marginal impact of income inequality is negative for countries with low levels of institutional quality. The authors show that the rule of law and government effectiveness are effective moderators in terms of magnitude. Furthermore, the authors find that the sanding effect of income inequality is observed in developing economies, even when moderating for institutional quality.
Research limitations/implications
The major limitation lies in the estimation of entrepreneurial activity, which is measured using new business formation. While this is commonly used, it focuses on formal entrepreneurial activities and overlooks the informal economy.
Originality/value
This study provides new empirical evidence on whether institutional quality can moderate and explain the puzzling link between entrepreneurial activity and income inequality.
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While it has been speculated for some time that technology market development at the bottom of the pyramid (BOP) will create millions of new entrepreneurs in developing countries…
Abstract
Purpose
While it has been speculated for some time that technology market development at the bottom of the pyramid (BOP) will create millions of new entrepreneurs in developing countries, as the BOP is the largest untapped market, to date, there is hardly any macro‐level cross‐country study investigating the extent to which such market development at the BOP influences new business formation “rates” in developing countries. The purpose of this paper is to examine the role of technology market development at the BOP in the information and communications technology (ICT) sector in influencing new business formation rates in developing countries.
Design/methodology/approach
The study draws on cross‐country data from developing countries from World Resources Institute and the World Bank. Several steps were taken to ensure robustness.
Findings
First, a connection is established between a developing country's level BOP market for ICT and the county's “rate” of new business formation. Second, it is suggested that the level of industry specialization in a developing country enhances the relationship between BOP markets for ICT and new business formation in a developing country. Third, the empirical analysis is based upon a rigorously‐collected authoritative multi‐country data from World Bank that answers the concern voiced by researchers. Fourth, the results suggest that the established link between ICT and economic growth in developing countries may be occurring through “new business formation” acting as a mediator between the two.
Research limitations/implications
Implications are drawn for policy and further research.
Originality/value
The study establishes a macro‐level connection between a developing country's level of BOP market for ICT and its “rate” of new business formation.
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Mohammed Sani Abdullahi, Kavitha Raman and Sakiru Adebola Solarin
The purpose of this study is to examine the effect of succession planning practice (SPP) on employee engagement (EE) and employee performance (EP) in Malaysian private…
Abstract
Purpose
The purpose of this study is to examine the effect of succession planning practice (SPP) on employee engagement (EE) and employee performance (EP) in Malaysian private universities (MPU).
Design/methodology/approach
This paper used a survey research design, and the study unit of the analysis consists of the academic staff of MPU. In the selection of the sample from the focused respondents (10,473) of the study, a stratified and simple random sampling method was used, and the study sample consists of 314 MPU academic staff. A questionnaire was used to collect data from the focused respondents while partial least square–structural equation modeling (PLS-SEM) was used to test the study hypotheses.
Findings
The findings revealed that SPP has a significant effect on EP, and the relationship between SPP and EP is partially mediated by EE.
Practical implications
Sound succession systems for achieving academic staff performance should be put in place by the university management. Furthermore, the outcome of this research urges the policymaker to come up with a sound policy that can allow internal talents of the university to hold key leadership positions of any nature when the need arises before considering external talents, with that the talents will be satisfied and put decisive effort to achieve a positive result.
Originality/value
This paper has made a significant contribution to the knowledge and operationalization of the EE, EP and SPP literature. The research also assists the university management to mobilize qualified and talented staff for an unexpected and sudden resignation of staff which saves the university the cost of hiring and development, and at the same time, it encourages internal hiring.
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