Search results for: small and medium sized firms

Authors: Dezie L. Warganegara, Dewi Tamara

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The objectives of this study are to investigate the existence of the sticky cost behaviour of firms listed in the Indonesia Stock Exchange (IDX) and to find an evidence on the effects of sticky operating expenses (SG&A expenses) on profitability of firms. For the first objective, this study found that the sticky cost behaviour does exist. For the second objective, this study finds that the stickier the operating expenses the less future profitability of the firms. This study concludes that sticky cost affects negatively to the performance and, therefore, firms should include flexibility in designing the cost structure of their firms.

Keywords: sticky costs, Indonesia Stock Exchange (IDX), profitability, operating expenses, SG&A

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Authors: Hsing-Hua Stella Chang, Mong-Ching Lin, Cher-Min Fong

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There has recently been a notable rise in the number of emerging-market industrial small and medium-sized enterprises (SMEs) that have managed to upgrade their operations. Evolving from original equipment manufacturing (OEM) into value-added original or own brand manufacturing (OBM) in such firms represents a specific process of internationalization. The OEM-OBM upgrade requires development of a firm’s own brand. In this respect, the extant literature points out that emerging-market industrial marketers (latecomers) have developed some marketing capabilities, of which branding has been identified as one of the most important. In specific, an industrial non-brand marketer (OEM) marks the division of labor between manufacturing and branding (as part of marketing). In light of this discussion, this research argues that branding capability plays a critical role in supporting the evolution of manufacture upgrade. This is because a smooth transformation from OEM to OBM entails the establishment of strong brands through which branding capability is developed. Accordingly, branding capability can be exemplified as a series of processes and practices in relation to mobilizing branding resources and orchestrating branding activities, which will result in the establishment of business relationships, greater acceptance of business partners (channels, suppliers), and increased industrial brand equity in the firm as key resource advantages). For the study purpose, Taiwan was chosen as the research context, representing a typical case that exemplifies the industrial development path of more-established emerging markets, namely, transformation from OEM to OBM. This research adopted a two-phase research design comprising exploratory (a qualitative study) and confirmatory approaches (a survey study) The findings show that: Country-specific advantage is positively related to branding capability for internationalizing SMEs. Firm-specific advantage is positively related to branding capability for internationalizing SMEs. Hsing-Hua Stella Chang is Assistant Professor with National Taichung University of Education, International Master of Business Administration, (Yingcai Campus) No.227, Minsheng Rd., West Dist., Taichung City 40359, Taiwan, R.O.C. (phone: 886-22183612; e-mail: [email protected]). Mong-Ching Lin is PhD candidate with National Sun Yat-Sen University, Department of Business Management, 70 Lien-hai Rd., Kaohsiung 804, Taiwan, R.O.C. (e-mail: [email protected]). Cher-Min Fong is Full Professor with National Sun Yat-Sen University, Department of Business Management, 70 Lien-hai Rd., Kaohsiung 804, Taiwan, R.O.C. (e-mail: [email protected]). Branding capability is positively related to international performance for internationalizing SMEs. This study presents a pioneering effort to distinguish industrial brand marketers from non-brand marketers in exploring the role of branding capability in the internationalizing small and medium-sized industrial brand marketers from emerging markets. Specifically, when industrial non-brand marketers (OEMs) enter into a more advanced stage of internationalization (i.e., OBM), they must overcome disadvantages (liabilities of smallness, foreignness, outsidership) that do not apply in the case of incumbent developed-country MNEs with leading brands. Such critical differences mark the urgency and significance of distinguishing industrial brand marketers from non-brand marketers on issues relating to their value-adding branding and marketing practices in international markets. This research thus makes important contributions to the international marketing, industrial branding, and SME internationalization literature.

Keywords: brand marketers, branding capability, emerging markets, SME internationalization

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Authors: Andrei Contan, Richard Torkar

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Aim: The process of test automation and its practices in industry have to be better understood, both for the industry itself and for the research community. Method: We conducted a quantitative industry survey by asking IT professionals to answer questions related to the area of test automation. Results: Test automation needs and practices vary greatly between organizations at different stages of the software development life cycle. Conclusions: Most of the findings are general test automation challenges and are specific to small- to medium-sized companies, developing software applications in the web, desktop or mobile domain.

Keywords: survey, testing, test automation, status of test automation

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Authors: Shanorfizah Mohd Safar, Shaizatulaqma Kamalul Ariffin

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Internationalization of halal small and medium-sized enterprises (SMEs) is necessary for SMEs to become more involved in regional trade and business cooperation. By internationalization, SMEs' profit can increase, and market expansion of SMEs is basic for rising economies of countries to contend all around in the halal industry globally. There are several modes of internationalization; exporting is one of the first steps for internationalization with less capital needed. The study examines the influential factors of export performance amongst halal SMEs in Malaysia. Specifically, this study examines the positive and significant relationships amongst human capital, managerial capability, Halal Assurance Management System (HAMS), digital transformation, government support, and networking capability on halal SMEs' export performance toward SMEs' competitive advantage. In addition, this study will examine innovation capabilities as a moderator in the relationship between independence variables and competitive advantage. Competitive advantage is the most compelling perspective that drives the export performance of halal SMEs in Malaysia. A quantitative method will be used: an online questionnaire survey distributed through emails and face-to-face toward selected halal-certificated SMEs registered in JAKIM, MATRADE website and SME Corp Malaysia website. Nevertheless, whether the halal SMEs practice global business, they will still be the potential respondents. The data were examined and obtained using the statistical software Smart PLS. The analysis used is reliability, correlation, and regression analysis to meet the research objectives. This study contributes significantly to the theory by integrating Resource Based View (RBV) theory, Technology–Organization–Environment (TOE) framework and Networking theory. In addition, this research extends the RBV by extending a variable, the Halal Assurance Management System. This study also examines a moderating role of innovation capabilities in the framework and competitive advantage as a mediator. This research aims to analyze the factors that will impact the internationalization of halal SMEs.

Keywords: internationalization, halal SMEs, competitive advantage, export performance

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Authors: Pornpimol Chaiwuttisak

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The study aims to compare the performance of the logistics for Thailand’s wholesale and retail trade industries (except motor vehicles, motorcycle, and stalls) by using data (data envelopment analysis). Thailand Standard Industrial Classification in 2009 (TSIC - 2009) categories that industries into sub-group no. 45: wholesale and retail trade (except for the repair of motor vehicles and motorcycles), sub-group no. 46: wholesale trade (except motor vehicles and motorcycles), and sub-group no. 47: retail trade (except motor vehicles and motorcycles. Data used in the study is collected by the National Statistical Office, Thailand. The study consisted of four input factors include the number of companies, the number of personnel in logistics, the training cost in logistics, and outsourcing logistics management. Output factor includes the percentage of enterprises having inventory management. The results showed that the average relative efficiency of small-sized enterprises equals to 27.87 percent and 49.68 percent for the medium-sized enterprises.

Keywords: DEA, wholesales and retails, logistics, Thailand

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Authors: K. V. Venugopalan

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Micro, Small and Medium Enterprises (MSMEs) have been accepted as the engine of economic growth and for promoting equitable development. The major advantage of the sector is its employment potential at low capital cost. The labour intensity of the MSME sector is much higher than that of the large enterprises. The MSMEs constitute over 90% of total enterprises in most of the economies and are credited with generating the highest rates of employment growth and account for a major share of industrial production and exports. Kerala is a small state in India with the limited land area with high potential in educated human resources need micro, small and medium enterprises for development. Kerala has the highest Physical Quality of Life Index (PQLI) in India and the highest Human Development Index (HDI) at par with the developed countries SME play an important role in alleviating poverty and contribute significantly towards the growth of developing economies. Financial institutions can play a vital role for the promotion of micro, small and medium enterprises in Kerala. The study entitled “Financial Institutions and its role in the promotion of Small and Medium Enterprises in Kerala “examine the progress of MSME in Kerala and India and also the role of financial institutions and the problems faced by entrepreneurs for getting advances with reference to ‘Kerala Financial Corporation’-an agency set up by the government for promoting small and medium enterprises in the state. This study is based on both secondary and primary data. Primary data for the study was collected from those entrepreneurs who availed advances from financial institutions. The secondary data include the investment made, goods and services provided, the employment generated and the number of units registered in MSME sector for the last 10 years in Kerala. The study concluded that financial institutions providing finance with simple procedures and charging smaller interest rates will increase the number of MSME's and also contribute gross state domestic product and reduce the unemployment problem and poverty in the economy.

Keywords: gross state domestic product, human development index, micro, small and medium enterprises

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Authors: Joanna K. Konstantinou

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The aim of this study is to explore the need of small and medium-sized businesses in tourism and hospitality industry to adopt technology and enhance their degree of digitalization, along with the main benefits enjoyed by technology and the main challenges that hinder its adoption. Within a hermeneutic phenomenological perspective, semi-structured interviews were conducted with three hotel owners and the focus was to identify the main reasons of adoption of technology, enablers and barriers. The findings were grouped with the goal of identifying typology of business practices in using and adopting technology.

Keywords: digitization, SMEs, tourism and hospitality, challenges, benefits

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Authors: Mujeeb Saif Mohsen Al-Absy, Ku Nor Izah Ku Ismail, Sitraselvi Chandren

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This study examines whether corporate governance (CG) mechanisms in firms that have a whistle-blowing policy (WHBLP) are more effective in constraining earnings management (EM), than those without. A sample of 288 Malaysian firms for the years 2013 to 2015, amounting to 864 firm-years were grouped into firms with and without WHBLP. Results show that for firms without WHBLP, the board chairman tenure would minimize EM activities. Meanwhile, for firms with WHBLP, board chairman independence, board chairman tenure, audit committee size, audit committee meeting and women in the audit committees are found to be associated with less EM activities. Further, it is found that ownership concentration and Big 4 auditing firms help to reduce EM activities in firms with WHBLP, while not in firms without WHBLP. Hence, functional and effective governance can be achieved by having a WHBLP, which is in line with agency and resource dependent theories. Therefore, this study suggests that firms should have a WHBLP in place, and policymakers should come up with enhanced criteria to strengthen the mechanisms of WHBLP.

Keywords: corporate governance, earnings management, whistle-blowing policy, audit committee, board of directors

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Authors: Hailemariam Gebremichael Gebretsadik, Abrham Hagos Tesfaslasea

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To satisfy the high need for ICT entrepreneurship and rectify the weak entrepreneurial culture in Ethiopia, the country has established ICT Business incubation centers with the intention of preventing business failures, promoting innovation, and accelerating the growth and success of firms. This study investigates the role of business incubators and social capital on the innovation and growth of firms in Ethiopia. In this research, innovation and growth of firms were considered as dependent variables, whereas business incubation and social capital were treated as independent variables. The researcher employed an e-mail survey among 137 tenant Firms (Firms that joined and/or graduated to/from the Business incubation centers available in Ethiopia) to collect the data and obtained 113 responses that were appropriate for this research. The result of this study reveals that the dimensions of business incubation (physical resource, business support, and networking) have a significant effect on the innovation of Firms, but these dimensions of business incubation do not show a significant effect on the growth of firms. On the other hand, the dimensions of social capital (structural, cognitive, and relational) show a significant positive impact on the likelihood of Firms' growth but not on the innovation of firms. Moreover, the result of this study indicates that the dimensions of business incubation and social capital together have a significant effect on the likelihood of tenant firms innovating and growing.

Keywords: business incubation, innovation, social capital, tenant firms

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Authors: Muhammad Bilal Mustafa, Javed Hussain, Simeon Babatunde

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The Covid-19 pandemic has exposed the vulnerabilities of countless organisations beyond their size, type, and location. However, some groups and sectors are disproportionally get impacted by the pandemic. In the context of the UK, ethnic Small and Medium Enterprises (SMEs) turn out to be the most precarious group among all private sectors. Many ethnic SMEs shut down their business operations during a pandemic. A large portion of Black, Asian and minority ethnic (BAME) owners have huge concerns regarding their business’ survival and resilience. The current UK-centric studies have focused on the large business population, and there is a gap in ethnic SMEs and how they get affected by the Covid-19 pandemic. Moreover, there is a need to further knowledge and academic research to investigate the fundamental factors that could strengthen the resilience of ethnic SMEs as well as contribute to long-term sustainability. Therefore, this study aims to capture the effect of the Covid-19 pandemic on ethnic SMEs in the UK and assess the survival measures taken by ethnic SMEs during Covid-19. Besides, this study adopts a dynamic capabilities perspective that how firms' specific capabilities enable ethnic SMEs to exploit entrepreneurial opportunities during the Covid-19 pandemic. Finally, this research will help ethnic SMEs to develop vigorous resilience to address future external shocks and market uncertainties.

Keywords: COVID-19 pandemic, ethnic minority SMEs, entrepreneurial resilience, dynamic capabilities, sustainability

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Authors: Saheed Olakunle Sanusi, Israel Ajibade Adedeji

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The study analysed the effect of microfinance on the profit level of small and medium scale enterprises in Lagos. The data for the study were obtained by simple random sampling, and total of one hundred and fifty (150) small and medium scale enterprises (SMEs) were sampled for the study. Seventy-five (75) each are microfinance users and non-users. Data were analysed using descriptive statistics, logit model, t-test and ordinary least square (OLS) regression. The mean profit of the enterprises using microfinance is ₦16.8m, while for the non-users of microfinance is ₦5.9m. The mean profit of microfinance users is statistically different from the non-users. The result of the logit model specified for the determinant of access to microfinance showed that three of specified variables- educational status of the enterprise head, credit utilisation and volume of business investment are significant at P < 0.01. Enterprises with many years of experience, highly educated enterprise heads and high volume of business investment have more potential access to microfinance. The OLS regression model indicated that three parameters namely number of school years, the volume of business investment and (dummy) participation in microfinance were found to be significant at P < 0.05. These variables are therefore significant determinants of impacts of microfinance on profit level in the study area. The study, therefore, concludes and recommends that to improve the status of small and medium scale enterprises for an increase in profit, the full benefit of access to microfinance can be enhanced through investment in social infrastructure and human capital development. Also, concerted efforts should be made to encouraged non-users of microfinance among SMEs to use it in order to boost their profit.

Keywords: credit utilisation, logit model, microfinance, small and medium enterprises

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Authors: Chante Van Tonder, Bart Bossink, Chris Schachtebeck, Cecile Nieuwenhuizen

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Small and Medium-Sized Enterprises (SMEs) play a key role in national economies around the world, being contributors to economic and social well-being. Due to this, the success, growth and competitiveness of SMEs are critical. However, there are many factors that undermine this, such as resource constraints, poor information communication infrastructure (ICT), skills shortages and poor management. The Fourth Industrial Revolution offers new tools and opportunities such as digital transformation and business model innovation (BMI) to the SME sector to enhance its competitiveness. Adopting and leveraging digital technologies such as cloud, mobile technologies, big data and analytics can significantly improve business efficiencies, value proposition and customer experiences. Digital transformation can contribute to the growth and competitiveness of SMEs. However, SMEs are lagging behind in the participation of digital transformation. Extant research lacks conceptual and empirical research on how digital transformation drives BMI and the impact it has on the growth and competitiveness of SMEs. The purpose of the study is, therefore, to close this gap by developing and empirically validating a conceptual model to determine if SMEs are achieving BMI through digital transformation and how this is impacting the growth, competitiveness and overall business performance. An empirical study is being conducted on 300 SMEs, consisting of 150 South-African and 150 Dutch SMEs, to achieve this purpose. Structural equation modeling is used, since it is a multivariate statistical analysis technique that is used to analyse structural relationships and is a suitable research method to test the hypotheses in the model. Empirical research is needed to gather more insight into how and if SMEs are digitally transformed and how BMI can be driven through digital transformation. The findings of this study can be used by SME business owners, managers and employees at all levels. The findings will indicate if digital transformation can indeed impact the growth, competitiveness and overall performance of an SME, reiterating the importance and potential benefits of adopting digital technologies. In addition, the findings will also exhibit how BMI can be achieved in light of digital transformation. This study contributes to the body of knowledge in a highly relevant and important topic in management studies by analysing the impact of digital transformation on BMI on a large number of SMEs that are distinctly different in economic and cultural factors

Keywords: business models, business model innovation, digital transformation, SMEs

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Authors: Jesus Argueta

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This study aims to explore the Business Demography Phenomena along the Central American context, through the examination of its theoretical background, and the revision of Central American corporations success stories, that will eventually guide this research towards the business Demography Key Performance Indicators, across the Central American Business Ambiance. Considering that this analysis will support the development of a Small and Medium Business Observatory over the Honduran commercial landscapes, as platform for the reinforcement of this global topic.

Keywords: business demography, economic dynamism, small, medium and large enterprises, corporate demography

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Authors: Ogunwole Cecilia Oluwakemi, Wahid Damilola Olanipekun, Omoyele Olufemi Samuel, Timothy Ayomitunde Aderemi

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The issues relating to corporate governance in both locally and internationally managed firms cannot be overemphasized because the lack of efficient corporate governance could orchestrate serious problems in any organization. Against this backdrop, this study examines the nexus between corporate governance and performance of firms from 2012 to 2020, using the case study of the Nigerian stock exchange. Consequently, data was collected from forty (40) listed firms on the Nigerian Stock Exchange. The study employed a fixed effect technique of estimation to address the objective of the study. It was discovered from the study that the influence of corporate governance components such as gender diversity, board independence and managerial ownership led to a significant positive impact on the performance of the firms under the investigation. In view of the above finding, this study makes the following recommendations for the policymakers in Nigeria that anytime the goal of the policymakers is the improvement of performance of the listed firms in the Nigerian stock exchange, board independence and a balance in the inclusion of male and female among the board of directors should be encouraged in these firms.

Keywords: corporate, governance, firms, performance, Nigeria, stock, exchange

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Authors: P. Thepnarintra

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Frozen shrimp industry plays an important role in the development of production industry of the country. There has been a continuing development to response the increasing demand; however, there have been some problems in running the enterprises. The purposes of this study are to: 1) investigate problems related to basic factors in operating frozen shrimp industry based on the entrepreneurs’ points of view. The enterprises involved in this study were small and medium industry receiving Thai Frozen Foods Association. 2) Compare the problems of the frozen shrimp industry according to their sizes of operation in 3 provinces of the central region Thailand. Population in this study consisted of 148 managers from 148 frozen shrimp enterprises Thai Frozen Foods Association, of which 77 were small size and 71 were medium size. The data were analyzed to find percentage, arithmetic mean, standard deviation, and independent sample T-test with the significant hypothesis at .05. The results revealed that the problems of the frozen shrimp industries of both size were in high level. The needs for government supporting were in high level. The comparison of the problems and the basic factors between the small and medium size enterprises showed no statistically significant level. The problems that they mentioned included raw materials, labors, production, marketing, and the need for academic supporting from the government sector.

Keywords: frozen shrimp industry, problems, related to the enterprise, operation

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Authors: Indu Saini, Ashu Khanna, S. K. Peddoju

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Cloud computing is the new buzz word today attracting high interest among various domains like business enterprises, Particularly in Small and Medium Enterprises. As it is a pay-per-use model, SMEs have high expectations that adapting this model will not only make them flexible, hassle-free but also economic. In view of such expectations, this paper analyses the possibility of adapting cloud computing technologies in SMEs in light of economic concerns. In this paper, two hypotheses are developed to compare the average annual per-user costs of using Enterprise Resource Planning systems in two ways, The traditional approach and the cloud approach. A web based survey is conducted apart from the Interviews with the peers to collect the data across the selected SMEs and t-test is performed to compare both the technologies on the proposed hypothesis. Results achieved are produced and discussed.

Keywords: cloud computing, small and medium enterprises, enterprise resource solutions, interviews

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Authors: Somdech Rungsrisawas

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The objectives of this study are to examine the relationship between the competitive advantage of small and medium enterprises (SMEs) and their overall performance. A mixed method has been applied to identify the effect of determinants toward competitive advantage. The sample is composed of SMEs in product and service businesses. The study has been tested at an organizational level with samples of SME entrepreneurs, business successors, and board of directors or management team. Quantitative analysis has been conducted through multiple regression analysis with 400 samples. The findings illustrate that each aspect of competitive advantage needs a different set of driving factors to explain either the direct or the indirect effect on firm performance. Interestingly, technological capability is a perfect mediator and interorganizational cooperation toward competitive advantage. In addition, differentiation is difficult to be perceived by customers, as well as difficult to manage; however, it is considered important to develop an SMEs product or service for firm sustainably.

Keywords: competitive advantage, firm performance, technological capability, Small and Medium Enterprise (SMEs)

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Authors: Emilio Galdeano-Gómez, Juan C. Pérez-Mesa, Laura Piedra-Muñoz, María C. García-Barranco, Jesús Hernández-Rubio

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The situation in which firms engage in simultaneous cooperation and competition with each other is a phenomenon known as co-opetition. This scenario has received increasing attention in business economics and management analyses. In the domain of supply chain networks and for small and medium-sized enterprises, SMEs, these strategies are of greater relevance given the complex environment of globalization and competition in open markets. These firms face greater challenges regarding technology and access to specific resources due to their limited capabilities and limited market presence. Consequently, alliances and collaborations with both buyers and suppliers prove to be key elements in overcoming these constraints. However, rivalry and competition are also regarded as major factors in successful internationalization processes, as they are drivers for firms to attain a greater degree of specialization and to improve efficiency, for example enabling them to allocate scarce resources optimally and providing incentives for innovation and entrepreneurship. The present work aims to contribute to the literature on SMEs’ internationalization strategies. The sample is constituted by a panel data of marketing firms from the Andalusian food sector and a multivariate regression analysis is developed, measuring variables of co-opetition and international activity. The hierarchical regression equations method has been followed, thus resulting in three estimated models: the first one excluding the variables indicative of channel type, while the latter two include the international retailer chain and wholesaler variable. The findings show that the combination of several factors leads to a complex scenario of inter-organizational relationships of cooperation and competition. In supply chain management analyses, these relationships tend to be classified as either buyer-supplier (vertical level) or supplier-supplier relationships (horizontal level). Several buyers and suppliers tend to participate in supply chain networks, and in which the form of governance (hierarchical and non-hierarchical) influences cooperation and competition strategies. For instance, due to their market power and/or their closeness to the end consumer, some buyers (e.g. large retailers in food markets) can exert an influence on the selection and interaction of several of their intermediate suppliers, thus endowing certain networks in the supply chain with greater stability. This hierarchical influence may in turn allow these suppliers to develop their capabilities (e.g. specialization) to a greater extent. On the other hand, for those suppliers that are outside these networks, this environment of hierarchy, characterized by a “hub firm” or “channel master”, may provide an incentive for developing their co-opetition relationships. These results prove that the analyzed firms have experienced considerable growth in sales to new foreign markets, mainly in Europe, dealing with large retail chains and wholesalers as main buyers. This supply industry is predominantly made up of numerous SMEs, which has implied a certain disadvantage when dealing with the buyers, as negotiations have traditionally been held on an individual basis and in the face of high competition among suppliers. Over recent years, however, cooperation among these marketing firms has become more common, for example regarding R&D, promotion, scheduling of production and sales.

Keywords: co-petition networks, international supply chain, maketing agrifood firms, SMEs strategies

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Authors: Asma Dill

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The aim of this study is to explore the role of HRM practices in SMEs success. The role of HRM practices in large enterprises is relatively known, on the other hand, small and medium enterprises (SMEs) companies have not been greatly studied in relation to the HRM practices in the past. Although, there is a lack of literature and empirical research in this area, several studies in the recent years emphasized on the importance of the HRM practices for the success of the SMEs. This study finds out relationship of HRM practices and SMESs performances. The objective is to analyze significant impacts of HRM practices (training, performance appraisal, compensation and employee development) on SMEs success, to determine whether SMEs recognize the importance of HRM practices in their businesses. To carry out this research a survey research strategy was followed. The sample frame for this study consisted of firms that belong to the services and commerce sector, employing at least 50 employees. The final research sample consisted of questionnaires. Descriptive statistical methods have been used during quantitative analysis to explore the relations. The findings of the study revealed that HRM practices have a significant influence on the performance of SMEs, and the better the HRM practice, the higher the performance of the SMEs. HRM practices, including, training, compensation, performance appraisal and employee development, have been found to be significantly and positively related to business success. Outcome of the study will provide useful guidelines to the business organizations. This study contributes to knowledge by providing insights on the impact of HRM practices on SMEs performance.

Keywords: compensation, employee performance, HRM practices, training

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Authors: Ugbor Raphael Oluchukwu

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The survey research design was adopted to examine whether liquidity and cash management practices of owner-managed firms in South East Nigeria influence their profitability, growth and survival. Four independent variables (accounting systems, working capital management, budgetary control, and managerial planning) were used in the evaluation which was restricted to eight small firms. Results indicate that one variable, working capital management alone dominate the liquidity perception of owner managers. As a result, owner managers find it difficult to meet maturing business obligations as growth sets in. The study also reveals that the four independent variables have significant impact on the profitability, growth and survival of owner managed firms. Owner managers are therefore advised to undertake regular entrepreneurship training in order to upgrade their liquidity and cash management knowledge and practices to enhance their overall performance.

Keywords: liquidity management, owner-managed firm, profitability, survival

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Authors: Rehan Ullah

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The primary purpose of the study is to observe the relationship that exists between the organizational information technology (IT) capabilities and the organizational performance in China and Pakistan. Nations like China and Pakistan utilize modern techno-how to enhance their production endeavors. Therefore, making a wide-ranging comparison of the manufacturing services between China and Pakistan was chosen due to numerous reasons. One reason for carrying out this comparison is to determine how IT of the two countries enhances organizational competency on small and medium-sized manufacturing enterprises (SMEs). The study hypothesized that organizational IT capabilities (IT infrastructure, IT competence) have a positive influence on organizational performance and the strategic benefits of IT have a mediating effect on the relationship between IT capability and organizational performance. To investigate the relationship between IT capabilities and organizational performance, surveys were sent to managers of small, medium-sized manufacturing organizations located in the southwestern region, Sichuan province of China, and Pakistani companies, which are located in Islamabad, Lahore, and Karachi. These cities were selected as typical representatives of each country. Organizational performance has been measured in terms of profitability, organizational success, growth, market share, and innovativeness. Out of 400 surveys distributed to different manufacturing organizations, 303 usable and valid responses were received that are analyzed in this research. The data were examined using SPSS and Smart PLS computer software. The results of the study, including the descriptive statistics of each variable, are used. The outer model has been measured with considerations to content validity, discriminant validity, and convergent validity. The path coefficients among the constructs were also computed when analyzing the structural model using the bootstrapping technique. The analysis of data from both China and Pakistan yields an identical but unique result. The results show that IT infrastructure, IT competence, strategic benefits of IT are all correlated to the performance of the organizations. Moreover, strategic benefits of IT have been proved to mediate the relationship between IT capabilities and organization performance. The author, concerning the role of IT on the performance of an organization, highlights the different aspects as well as its benefits in an organization. The overall study concludes several implications for both managers and academicians. It also provides the limitations of the study and offers recommendations for future studies and practice.

Keywords: organizational performance, IT capabilities, IT infrastructure, IT competence, strategic benefits of IT, China, Pakistan

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Authors: Noman Shabbir, Roheel Nawaz, Muhammad N. Iqbal, Junaid Zafar

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This paper focuses on the performance evaluation of routing protocols in WLAN based Wireless Sensor Networks (WSNs). A comparative analysis of routing protocols such as Ad-hoc On-demand Distance Vector Routing System (AODV), Dynamic Source Routing (DSR) and Optimized Link State Routing (OLSR) is been made against different network parameters like network load, end to end delay and throughput in small, medium and large-scale sensor network scenarios to identify the best performing protocol. Simulation results indicate that OLSR gives minimum network load in all three scenarios while AODV gives the best throughput in small scale network but in medium and large scale networks, DSR is better. In terms of delay, OLSR is more efficient in small and medium scale network while AODV is slightly better in large networks.

Keywords: WLAN, WSN, AODV, DSR, OLSR

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Authors: L.Vaz, L. Ferreira, R. Aparício, J. Pedro, M. Franco

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This article concerns a qualitative analysis, through an interview, regarding “Sustainability Adoption Barriers in SMEs.” To begin with, the article provides a state-of-the-art overview through fifty-seven articles initially extracted from the Scopus database. The articles were analyzed, and four main clusters emerged in the literature: 1) sustainability and small and medium-sized companies; 2) sustainable business models; 3) sustainability practices adoption procedures, and 4) adoption difficulties on sustainability practices. Utilizing interviews as a methodology, the article seeks to strengthen knowledge regarding sustainability practices, their barriers and the sustainable procedures adopted by SMEs in a Portuguese context. The results demonstrate that the literature agrees with this case study, where there are numerous sustainable practices, yet, due to financial, political, cultural, and technological factors, barriers emerge in the adoption process. By comparing the literature findings with the conducted interviews of interior Portuguese SMEs, this article develops a contribution to the scientific community through a captivating, intuitive and motivating way.

Keywords: barriers, practices, business model, green

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Authors: A. A. Akharayi, B. E. Anjola

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The economic development of a country depends greatly on internally built revenue. Small and Medium-scale Enterprise (SMEs) contributes to the economic buoyancy as it provides employment for the teeming population, encourages job creation by youths who believes in themselves and also by others who have gathered finance enough to invest in growable investment. SMEs is faced with several challenges. The study investigates the role and challenges of SMEs Somolu Local Government Area. Simple random sampling techniques were used to select entrepreneurs (SMEs owners and managers). One hundred and fifty (150) registered SMEs were selected across the LGA data collection with the use of well-structured questionnaire. The data collected were analysed using Statistical Package for Social Science (SPSS) version 21. The result of the analysis indicated that marketing, finance, social facilities and indiscriminate taxes among other high level of fund available significantly (p <0 .05) increase firm capacity while marketing showed a significant (p < 0.05) relationship with profit level.

Keywords: challenge, development, economic, small and medium scale enterprise

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Authors: Pulkeria Pascoe, Hawa P. Tundui, Marcia Dutra de Barcellos, Hans de Steur, Xavier Gellynck

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A majority of Micro and Small Enterprises (MSEs) experience low or no growth. Understanding their performance remains unfinished and disjointed as there is no consensus on the factors influencing it, especially in developing countries. Using a Resource-Based View (RBV) as the theoretical background, this cross-sectional study employed four regression models to examine the influence of firm-level factors (firm-specific characteristics, firm resources, manager socio-demographic characteristics, and selected management practices) on the overall performance variations among 442 Tanzanian micro and small agri-food processing firms. Study results confirmed the RBV argument that intangible resources make a larger contribution to overall performance variations among firms than that tangible resources. Firms' tangible and intangible resources explained 34.5% of overall performance variations (intangible resources explained the overall performance variability by 19.4% compared to tangible resources, which accounted for 15.1%), ranking first in explaining the overall performance variance. Firm-specific characteristics ranked second by influencing variations in overall performance by 29.0%. Selected management practices ranked third (6.3%), while the manager's socio-demographic factors were last on the list, as they influenced the overall performance variability among firms by only 5.1%. The study also found that firms that focus on proper utilization of tangible resources (financial and physical), set targets, and undertake better working capital management practices performed higher than their counterparts (low and average performers). Furthermore, accumulation and proper utilization of intangible resources (relational, organizational, and reputational), undertaking performance monitoring practices, age of the manager, and the choice of the firm location and activity were the dominant significant factors influencing the variations among average and high performers, relative to low performers. The entrepreneurial background was a significant factor influencing variations in average and low-performing firms, indicating that entrepreneurial skills are crucial to achieving average levels of performance. Firm age, size, legal status, source of start-up capital, gender, education level, and total business experience of the manager were not statistically significant variables influencing the overall performance variations among the agri-food processors under the study. The study has identified both significant and non-significant factors influencing performance variations among low, average, and high-performing micro and small agri-food processing firms in Tanzania. Therefore, results from this study will help managers, policymakers and researchers to identify areas where more attention should be placed in order to improve overall performance of MSEs in agri-food industry.

Keywords: firm-level factors, micro and small enterprises, performance, regression analysis, resource-based-view

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Authors: Priyanshu Sharma

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Urban development mechanism has evolved over the years in India, and various planning models and tools have been adopted by different states. Large cities have been able to make and implement plans with the varied degree. However, it has been observed these mechanisms face challenges to gain the momentum in small and medium towns. Gujarat has a very robust legislation that empowers planning authorities to prepare development plans (DP) and town planning scheme (TPS). The DP- TPS planning methods are quite popular for large cities in Gujarat. However, it has been observed that in the smaller towns these methods of plan preparation are facing severe agitations. Recently, development authorities of many small towns like Himmatnagar, Nadiad, and Junagadh, etc. have faced serious protest from local residents. This is because of the large amount of land deduction under the provisions of DP and TPS. And this number of opposition has been increasing since 2012 in Gujarat. This study aims to understand in detail the reasons for agitation against the plans prepared by smaller towns. It will further try to see whether the current framework of urban planning (DP and TPS) are really suitable for these towns. After understanding the development concerns and background, the aim and objectives of the study were outlined: Aim: To evaluate the suitability and acceptability of the current urban development mechanism for the small and medium towns. Objectives: (i) To review the GTPUD Act and identify the provision related to small and medium towns (ii) To understand preparation process of development plan and town planning scheme and issues related to it (iii) To understand the issues raised by the different stakeholder w.r.t plan because of which the plan and authority was agitated (iv) To find out the possible option through which these plans can be made suitable and acceptable to the stakeholder. The approach of this study is more qualitative based with the intention to understand the time frame process of preparation of development plan and town planning scheme and issues related to it. On the basis of literature study, the three towns were selected, and the detailed questionnaire was prepared for the stakeholders (development authorities and local residents) which include the time process taken in the preparation of DP and TPS and what were issues faced during the process and who all were involved. Lastly, the study looks into aspects of the land value of original plots and readjusted plots by concluding the argument whether this TP scheme model really worked in small and medium towns. Because the land deduction under TP scheme is allowed up to 50% as per the act and there is no distinct provision for small and medium towns under the act, so how this could be justified to smaller towns where the market value have not changed over the years. After analyzing the issues and reason behind the agitation against the DP and TPS in these small and medium towns. The broader recommendation has been given which can make these plans acceptable and suitable for the stakeholder.

Keywords: development plans, medium towns, small towns, town planning schemes

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Authors: Mohammed Benlemlih

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Using a sample of 22,839 US firm-year observations over the 1991-2012 period, we find that high CSR firms pay more dividends than low CSR firms. The analysis of individual components of CSR provides strong support for this main finding: five of the six individual dimensions are also associated with high dividend payout. When analyzing the stability of dividend payout, our results show that socially irresponsible firms adjust dividends more rapidly than socially responsible firms do: dividend payout is more stable in high CSR firms. Additional results suggest that firms involved in two controversial activities -the military and alcohol - are associated with low dividend payouts. These findings are robust to alternative assumptions and model specifications, alternative measures of dividend, additional control, and several approaches to address endogeneity. Overall, our results are consistent with the expectation that high CSR firms may use dividend policy to manage the agency problems related to overinvestment in CSR.

Keywords: corporate social responsibility, dividend policy, Lintner model, agency theory, signaling theory, dividend stability

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Authors: E. Al-Essa, R. Bello-Mendoza, D. G. Wareham

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Anaerobic batch experiments were conducted to investigate the effect of magnetite-supplementation (7 mM) on methane production from digested sludge undergoing two different microbial growth phases, namely fresh sludge (exponential growth phase) and degassed sludge (endogenous decay phase). Three different particle sizes were assessed: small (50 - 150 nm), medium (168 – 490 nm) and large (800 nm - 4.5 µm) particles. Results show that, in the case of the fresh sludge, magnetite significantly enhanced the methane production rate (up to 32%) and reduced the lag phase (by 15% - 41%) as compared to the control, regardless of the particle size used. However, the cumulative methane produced at the end of the incubation was comparable in all treatment and control bottles. In the case of the degassed sludge, only the medium-sized magnetite particles increased significantly the methane production rate (12% higher) as compared to the control. Small and large particles had little effect on the methane production rate but did result in an extended lag phase which led to significantly lower cumulative methane production at the end of the incubation period. These results suggest that magnetite produces a clear and positive effect on methane production only when an active and balanced microbial community is present in the anaerobic digester. It is concluded that, (i) the effect of magnetite particle size on increasing the methane production rate and reducing lag phase duration is strongly influenced by the initial metabolic state of the microbial consortium, and (ii) the particle size would positively affect the methane production if it is provided within the nanometer size range.

Keywords: anaerobic digestion, iron oxide, methanogenesis, nanoparticle

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Authors: Liqiang Chen

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This study investigates the effects of political connections on the association between firms’ business strategy and their tax aggressiveness in an emerging economy such as China. By studying all public Chinese firms in the period from 2011 to 2017, we find that firms adopting innovative business strategy are more tax aggressive overall, but innovative firms with political connections are less tax aggressive compared to those without political connections. Moreover, we document several channels through which political connections affect the association between innovative business strategy and tax aggressiveness. In particular, we show that the mitigation effect of political connections on tax aggressiveness is stronger for innovative firms located in areas with a lower marketization index and for innovative firms with a lower leverage level or with less earnings management. Our results are robust to an instrumental variable approach to account for possible endogenous bias. Our study contributes to the understanding of firms’ tax behaviors in an emerging economy setting and suggests that there are costs associated with political connections, such as foregone tax saving opportunities, which are understudied in the prior literature.

Keywords: tax aggressiveness, business strategy, political connections, emerging economy

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Authors: Amber Zahid, Fatima Naseer, Maham Atta, Fareeha Zafar

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Corporate social authority (CSR) talk, scholarly scrutinize, open arrangement and media editorials, which have thrived in the previous not many decades according to the craving to characterize the nexus between business and social order had a tendency to center primarily on expansive corporate associations which are required to act mindfully. The enormous organizations have for a long time pulled in huge volume of expositive expression on CSR. Almost no expositive expression is presently accessible to upgrade our comprehension about the engagement of little and medium-measured endeavors (SMEs) in CSR. The SMEs, regularly characterized differently regarding turnover terrible stake quality, proprietorship structure and the amount of workers, is a noteworthy part worldwide as far as monetary ecological and the social effect they make. This paper endeavoured to extend this obvious research bay, characterized the way of SMEs the total commitments of the area to economies of both advanced and advancing countries and their part engagement in CSR. The study embraced qualitative literary works review strategy. An audit of the negligible expositive expression furnished knowledge and characterized the course of examination in this significant and underexplored region of study. SMEs were discovered to perform parts connected with group improvement, representative activities, consumerism, natural movements, and production network necessities. To defeat the imperatives going up against SMEs engagement in CSR activities the paper prescribed expanded assets, preparing programs advancement of SMEs arranged instruments and guidelines to guide appropriation and execution and government mediation systems to make the fundamental motivating forces and underpin administrations for adequate engagement.

Keywords: corporate social responsibility, small and medium-sized enterprises, responsible practices, corporate citizenship

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