scholarly journals STI-DUI innovation modes and firm performance in the Indian capital goods industry: Do small firms differ from large ones?

2021 ◽  
Author(s):  
Nanditha Mathew ◽  
George Paily
Keyword(s):  
Firm Performance ◽  
Small Firms ◽  
Capital Goods ◽  
Innovation Modes

scholarly journals Strategy-making process and firm performance in small firms

2006 ◽  
Vol 12 (3) ◽  
pp. 209-222 ◽  
Author(s):  
Martie-Louise Verreynne
Keyword(s):  
Firm Performance ◽  
Empirical Study ◽  
Structural Equation ◽  
Small Firms ◽  
Large Firms ◽  
Structural Equation Analysis ◽  
Equation Analysis ◽  
Strategy Making

ABSTRACTThis paper argues that individual small firms just like large firms, place differing emphasis on strategy-making and may employ different modes of strategy-making. It offers a typology of the different modes of strategy-making that seem most likely to exist in small firms, and hypothesises how this typology relates to performance. It then describes the results of an empirical study of the strategy-making processes of small firms. The structural equation analysis of the data from 477 small firms with less than 100 employees indicates among other results that the simplistic, adaptive, intrapreneurial and participative modes of strategy-making exist in these small firms. Of these modes, the simplistic mode exhibits the strongest relationship with firm performance.

Small firm performance: an empirical analysis in Malaysian housing construction industry

2017 ◽  
Vol 10 (1) ◽  
pp. 50-65 ◽  
Author(s):  
Rosman Mahmood ◽  
Ahmad Suffian Mohd Zahari ◽  
Najihah Marha Yaacob ◽  
Sakinah Mat Zin
Keyword(s):  
Firm Performance ◽  
Small Firm ◽  
Business Strategy ◽  
Small Firms ◽  
Growth Potential ◽  
Construction Sector ◽  
Internal Factors ◽  
Content Type ◽  
Entrepreneurial Capital ◽  
And Training

Purpose The purpose of this paper is to evaluate the importance of innovation for the performance of small firms in the construction sector. Furthermore, this paper also examines the influence of several factors related to entrepreneurial capital (entrepreneurial value, business strategy, experience and training) on small firm performance in the sector. Design/methodology/approach This study uses primary data of 255 small firms in the construction sector under the category of small contractors (G1). Stratified sampling method was utilized for data collection, which is then analyzed using the descriptive and multiple regression analysis to achieve the objectives of the study. Findings The findings showed that the factor of innovation and several factors related to entrepreneurial capital (entrepreneurial value, business strategy and business experience) have a significant positive relationship with the performance of small firms in the construction sector. However, factor of training indicated a significant negative correlation with small firm performance. Research limitations/implications Although this study found a significant impact in explaining the factors that affect performance, particularly in the construction sector, it only takes into account only some internal factors (entrepreneurial capital and innovation). Proposed future research should consider a variety of other factors mainly related to external factors, such as economic development, growth potential, industry structure, internal social capital and government policy. Practical implications This study provides clear implications related to the theory and contributions to the literature related to research in the construction sector. The study also provides invaluable insightfulness to various stakeholders including policy makers, institutional support and small contractors about the importance of innovation and entrepreneurial capital in determining the performance of small firms in the sector. Originality/value The results provide supportive evidence that entrepreneurial values and business strategy are important internal factors in determining the performance of a firm, which is consistent with the theory of resource-based view. Experience and training factors, as indicators of firm performance, are articulated in the theory of human capital. Hence, the findings not only can strengthen both the theories but also make a significant contribution to the literature of the study, particularly in the construction sector.

Organizational Characteristics and Small Firms’ Performance Revisited

1989 ◽  
Vol 13 (2) ◽  
pp. 49-64 ◽  
Author(s):  
Paul B. Cragg ◽  
Malcolm King
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Small Firm ◽  
Small Firms ◽  
Causal Model ◽  
Organizational Characteristics ◽  
Future Research ◽  
Firm Financial Performance ◽  
Mixed Support ◽  
Research Studies

Numerous studies have attempted to gain a greater understanding of small firm performance with the intent of isolating factors which are important for success. The studies, some with serious limitations, suggest that many different variables are Important to success. A further study of 179 small, metal goods manufacturers enabled some of the specific relationships to be re-examined, but with mixed support for previous findings. Various suggestions are made for future research studies. A causal model of small firm financial performance is proposed.

scholarly journals The South African code of corporate governance. The relationship between compliance and financial performance: Evidence from South African publicly listed firms

2015 ◽  
Vol 12 (2) ◽  
pp. 149-169 ◽  
Author(s):  
Jonty Tshipa ◽  
Thabang Mokoaleli-Mokoteli
Keyword(s):  
South Africa ◽  
Corporate Governance ◽  
Firm Performance ◽  
Financial Performance ◽  
South African ◽  
Small Firms ◽  
Large Firms ◽  
Board Size ◽  
Tobin's Q ◽  
Listed Firms

Using both Return On Assets (ROA) and Tobin’s Q as proxies for performance, the study seeks to explore if better governed firms exhibit greater financial performance than poorly governed firms. The paper employs a panel study methodology for a sample of 137 Johannesburg Stock Exchange (JSE) listed firms between 2002 and 2011. The results show that the compliance levels to corporate governance in South Africa (SA) has been improving since 2002 when King II came into force. However, the compliance level in large firms appears to be higher than in small firms. Further, the findings show that the market value of large firms is higher than that of small firms. These results largely support the notion that better governed firms outperforms poorly governed firms in terms of financial performance. Notably, the empirical results indicate that board size, CEO duality and the presence of independent non-executive directors positively impact the performance of a firm, whereas board gender diversity, director share-ownership and frequency of board meetings have no impact on firm performance. This suggests that greater representation of independent non-executive director, a larger board size and the separation of CEO and Chairman should be encouraged to enhance firm performance. Unexpectedly, the presence of internal key board committees, such as remuneration, audit and nomination, negatively impact firm performance. Similar to UK, South Africa has a flexible approach to corporate governance, in which listed firms are required to apply or explain non-conformance to King recommendations. This study has policy implications as it determines whether the flexible corporate governance approach employed by SA improves corporate governance compliance than the mandatory corporate governance approach as employed by countries such as Sri Lanka and US, and whether compliance translates into firm performance. The significant finding of this study is that compliant firms enjoy a higher firm performance as measured by ROA and Tobin’s Q. This implies that compliance to corporate governance code of practice matters, not just as box ticking exercise but as a real step change in the governance of South African listed firms. This paper fulfils an identified need of how compliance to corporate governance influences firm performance in South Africa. The findings have implications to JSE listing rules, policy, investor confidence and academia.

scholarly journals Determinants of Vietnamese Listed Firm Performance: Competition, Wage, CEO, Firm Size, Age, and International Trade

2019 ◽  
Vol 12 (2) ◽  
pp. 62 ◽  
Author(s):  
Vu ◽  
Nguyen ◽  
Ho ◽  
Vuong
Keyword(s):  
Firm Performance ◽  
Quantile Regression ◽  
Firm Size ◽  
Small Firms ◽  
Capital Intensity ◽  
Labor Cost ◽  
Least Square ◽  
High Tech ◽  
Net Income ◽  
Quantile Regression Method

This study investigates the relationship between firms’ competition, wage, CEOs’ characteristics, and firm performance (measured by net income per employee, return on assets (ROA) and return on equity (ROE)) of Vietnam’s 693 listed firms in 2015 using both the ordinary-least-square (OLS) and quantile regression methods. Triangulating the results coming from the analysis of three different measures of firm performance, this study consistently confirms that the sex of CEOs and chairman turns out to be insignificant in explaining firm performance and there is a negative association between capital intensity and firm performance. For financial firms, the age of a firm and average wage per employee are negatively associated with all types of firm performance. The quantile regression method shows that the age of a firm is negatively correlated with its net income per employee for small firms, while it is insignificant for medium-sized firms. Meanwhile, firm size is positively associated with firm performance. These results indicate Vietnam’s business activities are still concentrating on low labor cost, labor intensive, and low-tech production, thus, policies that promote innovation and high-tech applications should be encouraged.

Employee Turnover and Firm Performance: Large-Sample Archival Evidence

2021 ◽  
Author(s):  
Qin Li ◽  
Ben Lourie ◽  
Alexander Nekrasov ◽  
Terry Shevlin
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Stock Returns ◽  
Employee Turnover ◽  
Small Firms ◽  
Positive Association ◽  
Securities And Exchange Commission ◽  
Negative Association ◽  
Return On Assets ◽  
Future Performance

Employee turnover is a significant cost for businesses and a key human capital metric, but firms do not disclose this measure. We examine whether turnover is informative about future firm performance using a large panel of turnover data extracted from employees’ online profiles. We find that turnover is negatively associated with future financial performance (one-quarter ahead return on assets and sales growth). The negative association between turnover and future performance is stronger for small firms, for young firms, for firms with low labor intensity, when the local labor market is tight, and when the firm is trying to replace departing employees. The negative association disappears when turnover is very low, suggesting that a certain amount of turnover can be beneficial. Consistent with the concern that turnover increases operational uncertainty, we find a positive association between turnover and the uncertainty of future financial performance. Finally, we find a significant association between turnover and future stock returns, suggesting that investors do not fully incorporate turnover information. Our findings answer the call from the Securities and Exchange Commission to determine the importance of turnover disclosure. This paper was accepted by Brian Bushee, accounting.

Firm Size and the Relationship Between Wage Dispersion and Firm Performance

2010 ◽  
Author(s):  
Homero Zambrano
Keyword(s):  
Theoretical Model ◽  
Firm Performance ◽  
Firm Size ◽  
Small Firms ◽  
Wage Structure ◽  
Wage Dispersion ◽  
Large Firms ◽  
Empirical Results ◽  
Simple Theoretical Model ◽  
The Relationship

A simple theoretical model explains the divergent empirical results concerning the effect of wage dispersion on firm performance. First, causality in the relationship is clarified. Then, through the model, it is shown that firm performance is non-monotonic with respect to wage dispersion. Likewise, it is shown that large firms are more likely to benefit from a dispersed wage structure than small firms.

Harnessing Supply Chain Knowledge for Mitigating the Negative Effects of Bricolage

2020 ◽  
Vol 17 (04) ◽  
pp. 2050023
Author(s):  
Gurjeet Kaur Sahi ◽  
Nivedita Agarwal
Keyword(s):  
Supply Chain ◽  
Firm Performance ◽  
Small Firms ◽  
Large Scale ◽  
Manufacturing Firms ◽  
Negative Effects ◽  
North West ◽  
Final Sample ◽  
Quadratic Effects ◽  
Positive Effect

Bricolage is a term used to illustrate the practice in which small firms tap scant available resources to exploit business opportunities and to facilitate innovation. We focus on decreasing returns from excessive bricolage and, more importantly, highlight an important role played by supply chain knowledge in mitigating decreasing returns from bricolage. The role played by supply chain knowledge in reducing the negative effects of excessive bricolage is not explored yet. This study, in the context of an emerging economy, seeks to isolate the linear and quadratic effects of bricolage on firm performance and examines the moderating influence of supply chain knowledge on the bricolage-to-firm performance relationship. To test the proposed relationships, data from large-scale manufacturing firms in north-west India were used. The final sample size of 106 firms was used for testing the relationships using stepwise OLS analysis. The results revealed that at lower levels of supply chain knowledge, bricolage had an inverted-U relationship with firm performance. In other words, supply chain knowledge mitigates the negative effects of bricolage on performance. However, it did not strengthen the positive effect of bricolage on performance.

Culture and social capital network effects on the survival and performance of high-tech micro and small firms

2018 ◽  
Vol 25 (1) ◽  
pp. 81-106 ◽  
Author(s):  
Cory Hallam ◽  
Carlos Alberto Dorantes Dosamantes ◽  
Gianluca Zanella
Keyword(s):  
Social Capital ◽  
Firm Performance ◽  
Empirical Research ◽  
Cultural Context ◽  
Small Firms ◽  
Mediating Effect ◽  
High Tech ◽  
Regional Culture ◽  
Content Type ◽  
The Impact

Purpose The purpose of this paper is to propose an integrated theory to explain the effect of regional culture on high-technology micro and small (HTMS) firm outcomes. The integrated culture-social capital outcomes (CSCO) model examines the impact of culture on performance and evolution of HTMS firms through the mediating effect of intra-firm and inter-firm social capital. Design/methodology/approach Theoretical insights from social capital and culture are combined with the results of previous empirical observations to explain cross-cultural differences in the performance of HTMS firms. The authors then propose the CSCO model as a means to integrate and advance theory building. Findings The CSCO model explains the impact of culture on performance and evolution of HTMS firms through intra-firm and inter-firm social capital networks. Cultural context affects the performance of high-tech micro and small firms through the nature and structure of the networks involved in building and exploiting inter-firm and intra-firm social capital. Moreover, regional culture indirectly influences the balance between positive and negative effects of social capital on firm performance. These observations explain inconsistent findings from past empirical research and contribute to understanding the “embeddedness paradox” of social capital. Research limitations/implications The present model is not comprehensive. It does not account for many contextual factors identified in organizational network and cluster literature that contribute to the development of HTMS firms. Future research should consider the relationships between the three dimensions of social capital and seek to test the model with rigorous data collection and analysis. Originality/value While past studies focus on the direct relationship between regional culture and firm performance, this paper proposes the mediating effect of internal and external social capital between cultural context and firm performance. This proposal contributes to social capital and entrepreneurship literature and provides a potential explanation for inconsistent findings in past empirical research.

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