scholarly journals Bank switching of US small businesses: new methods and evidence

2022 ◽  
Author(s):  
Song Zhang ◽  
Liang Han ◽  
Konstantinos Kallias ◽  
Antonios Kallias
Keyword(s):  
Small Businesses ◽  
Small Firms ◽  
Financial Institution ◽  
New Methods ◽  
Ex Post ◽  
Loan Approval ◽  
Primary Relationship ◽  
Borrowing Cost ◽  
First Time ◽  
The Relationship

AbstractDespite being informationally opaque, small firms often switch from their primary financial institution to transactional lenders, with the relationship banking theory invoking the holdup problem as a culprit explanation. Using US evidence and an estimation strategy that overcomes traditional shortcomings in small business research, our study captures the determinants and, for the first time, the ex post effects of the switching decision. We find that switching is less likely when the primary financial institution is a nearby bank associated with quality services and connected to the firm via other business or social relationships. Small firms become more loyal as they grow in size and pursue nonmortgage credit. Outside the primary relationship, both loan approval and borrowing cost are adversely impacted, however loan maturities are longer. Moreover, the likelihood of pledging collateral remains unaffected, provided that the type of collateral is least sensitive to the borrower’s information environment. Jointly, our findings describe a trade-off inconsistent with the holdup problem, and an opportunity for banks to enhance customer loyalty by improving aspects of the relationship unrelated to the terms of credit.

Value generation in B2B contexts: the SMEs’ perspective

2015 ◽  
Vol 27 (3) ◽  
pp. 297-317 ◽  
Author(s):  
Lourdes Pérez ◽  
Jesús Cambra-Fierro
Keyword(s):  
Small Businesses ◽  
Small Firms ◽  
Value Appropriation ◽  
Content Type ◽  
A Value ◽  
Novel Concept ◽  
To Receive ◽  
The Relationship ◽  
Asymmetric Relationships

Purpose – The aim of this paper is to understand the process of value creation in business-to-business (B2B) contexts from the perspective of small- and medium-sized firms (SMEs). Small businesses are challenged to compete and collaborate with larger firms. While the “sharks” dilemma (often the most dangerous sharks also have the most valuable resources) focuses on specific defences, the authors emphasize a value generation perspective. Design/methodology/approach – The concept of asymmetric relationships is taken as a reference and examined using a longitudinal multi-case study. Findings – The authors results demonstrate how small firms not always assume an inferior, defensive position. Ambitious and growth-oriented SMEs learn to collaborate with larger partners and exhibit a proactive attitude towards relationship management. They understand the importance of developing social ties. They foster frequent and informal communication with their customers, favouring personal visits as a means to receive advice for directing their research efforts and exchange information and views. Such ties help them to develop shared plans and goals. Research limitations/implications – In asymmetric relationships, partner selection models should help firms to concentrate their efforts in a reduced group of key partners. These models should include not only economic performance indicators – variables such as flexibility and autonomy – but also innovation and improvement in processes, image, prestige and positioning, access to markets and stability. Originality/value – The authors found insight into a novel concept: dual-value appropriation, where partners do not split the pie of the total value generated, as frequently proposed in the literature, but fully appropriate a different and unique value from the relationship. The authors further highlight the important role played by the committed champions in developing communication and trust.

Human Resource Compensation and Maintenance Practices

1985 ◽  
Vol 10 (2) ◽  
pp. 19-29 ◽  
Author(s):  
Sita C. Amba-Rao ◽  
Dilip Pendse
Keyword(s):  
Human Resource ◽  
Small Businesses ◽  
Small Firms ◽  
Management Practices ◽  
Rational Approach ◽  
Work Place ◽  
Long Run ◽  
Human Resource Management Practices ◽  
Short Run ◽  
The Relationship

A survey of small business firms In North-Central Indiana Indicated that, while these firms provided a work place and an Income to employees, most of their practices on compensation and maintenance of human resources lacked a systematic and rational approach. Their emphasis appeared to be more on the short run rather than on the long run. Further, small businesses seemed to lack an understanding of the relationship between productivity and generally accepted human resource management practices. In the absence of clear, written policies on human resource maintenance and compensation, small firms will continue to have personnel-related problems. Further research needs In this area are suggested.

scholarly journals The Role of Enterprise Education and Training in the Performance of Small Manufacturing Firms: Evidence from West Midlands (United Kingdom)

2020 ◽  
Vol V (I) ◽  
pp. 260-268
Author(s):  
Fahad Sultan ◽  
Syed Haider Khalil ◽  
Syed Mohsin Ali Shah
Keyword(s):  
Mixed Method ◽  
Small Businesses ◽  
Small Firms ◽  
Education And Training ◽  
Mixed Method Approach ◽  
Enterprise Education ◽  
The Relationship ◽  
And Training ◽  
Method Approach

Enterprise education and training play a pivotal role in bridging workforce skills and improving the performance of small businesses. Considering the significant role of small businesses, this study attempts to investigate how small manufacturing units improve their performance using training methods. Therefore, for this study mixed-method approach was adopted to find the relationship between both variables. In the first part of the methodology, face to face, and semi-structured interviews were conducted with business owners and managers. Furthermore, survey questionnaires were carried out to find the relationship between both variables. For a mixed-method approach, 26 owners/managers were interviewed, and 136 respondents were identified from food and furniture manufacturing units with several employees who comes on the definition of small firms. The results of the study confirm in small firms positively impacted the individual performance and overall non-financial turnover of employees. The study concludes with future recommendations for academicians and policymakers.

A Recipe for What? UK Universities, Enterprise and Knowledge Transfer

2010 ◽  
Vol 11 (4) ◽  
pp. 265-272 ◽  
Author(s):  
David Pickernell ◽  
Gary Packham ◽  
David Brooksbank ◽  
Paul Jones
Keyword(s):  
Knowledge Transfer ◽  
Small Businesses ◽  
Small Firms ◽  
Relative Importance ◽  
The Uk ◽  
The Relationship

Universities play multiple knowledge-related roles in economies, creating (or co-creating), absorbing, disseminating and utilizing knowledge. These roles, however, are not without difficulty, for reasons related to universities themselves and the small firms that need to use such knowledge. This paper uses the UK Federation of Small Businesses 2008 survey to examine (a) the mechanisms in place to facilitate the dissemination to small and medium-sized enterprises (SMEs) of university knowledge and assistance; (b) the relative importance of the contribution of university-derived assistance to SMEs; (c) the relationship between the assistance obtained from universities and the requirements and capabilities of SMEs; and (d) the relationships between university-derived assistance and measures of growth.

scholarly journals Corporate Social Responsibility and Brand Equity in Mexican Small Firms

2019 ◽  
Vol 13 (1) ◽  
pp. 18
Author(s):  
Gonzalo Maldonado-Guzman ◽  
Sandra Yesenia Pinzón-Castro ◽  
Lucero Jazmín Cuevas-Pichardo
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Brand Equity ◽  
Small Businesses ◽  
Small Firms ◽  
Structural Equations ◽  
Transnational Companies ◽  
Corporate Social ◽  
Structural Equations Model ◽  
The Relationship

Corporate social responsibility is a topic that has generally been analyzed and discussed in large national and transnational companies, and relatively few studies have been oriented in small and medium-sized enterprises, even though theoretical and empirical evidence has been provided that small businesses also carry out social responsibility activities. Likewise, brand equity has been scarcely related to corporate social responsibility, and there are few studies published in the current marketing literature that relate these two important constructs. Therefore, using a sample of 300 small firms and applying a structural equations model of second order, which allows to know in greater depth the relationship between corporate social responsibility and brand equity, the essential objective of this empirical study is the analysis and discussion of the effects of corporate social responsibility on the level of brand equity of small firms. The results obtained show that corporate social responsibility has a significant positive effect on the level of brand equity of small firms.

scholarly journals Gender and the use of external business advice: a Swedish study

2015 ◽  
Vol 7 (1) ◽  
pp. 105-124 ◽  
Author(s):  
Darush Yazdanfar ◽  
Saeid Abbasian
Keyword(s):  
Small Businesses ◽  
Small Firms ◽  
Important Variable ◽  
Small Business Owners ◽  
Firm Level ◽  
Content Type ◽  
Start Up ◽  
Gender Based ◽  
Start Ups ◽  
The Relationship

Purpose – The aim of this study is to examine whether there are significant differences between female and male entrepreneurs’ use of consultation during business start-ups. Design/methodology/approach – Using several statistical tools, including ANOVA and seemingly unrelated regressions, empirical analyses are conducted on a unique and firm-level panel database of 837 female- and 1926 male-owned active small firms. Findings – The results indicate that gender may be an important variable in the use of advice among small business owners in Sweden. Female owners in this study are shown to be more eager than male owners to use external business advice, and do so to a higher extent. Practical implications – One implication of this study is that firms may not be able to use all business advice types simultaneously during their start-up stage, so an ordered list of consultancy services would help them prioritize and adjust their needs accordingly. Because the use of business advice is context-based, the findings of this study may not be generalized to firms in other countries. This paper shows some gender-based attributes/features relating to the use of business advice, which need to be better integrated into policymaking for the future assistance of small businesses. Originality/value – This article focuses on an important issue and is unique partly because few studies have examined the relationship between gender and external business advice. By explicitly and empirically examining this issue, this article makes a contribution to the small- and medium-sized enterprises’ literature.

The Relationship between Training and Small Business Performance: An Analysis of the Barclays Bank Small Firms Training Loans Scheme

10.1068/c0111 ◽  
2002 ◽  
Vol 20 (2) ◽  
pp. 211-233 ◽  
Author(s):  
Stuart Fraser ◽  
David Storey ◽  
Julian Frankish ◽  
Richard Roberts
Keyword(s):  
Firm Performance ◽  
Panel Data ◽  
Small Businesses ◽  
Business Performance ◽  
Small Firms ◽  
Firm Growth ◽  
Control Sample ◽  
Small Business Performance ◽  
The Impact ◽  
The Relationship

The authors assess empirically the impact on firm performance of a state-subsidised training-loan scheme for small businesses (the Small Firms Training Loan Scheme). To achieve this assessment, a longitudinal sample of firms that received loans from the leading lender under the scheme, Barclays Bank, and a control sample of otherwise similar nonparticipants with Barclays accounts were studied. The authors present and apply a panel-data methodology for estimating the impact of the scheme on firm growth, which is able to take into account nonrandom selection onto the scheme. The main empirical findings are that participants are both more likely to survive and to grow faster than nonparticipants.

scholarly journals Relationship of Tax Burden and Firm Size in the Timber Industry in Russia

2020 ◽  
Vol 19 (4) ◽  
pp. 458-488
Author(s):  
Yu. E. Labunets ◽  
◽  
I. A. Mayburov ◽  
Keyword(s):  
Small Businesses ◽  
Small Firms ◽  
Paper Industry ◽  
Pulp And Paper Industry ◽  
Tax Burden ◽  
Business Activity ◽  
Timber Industry ◽  
Tax Audit ◽  
Relationship Of ◽  
The Relationship

The tax burden indicator is one of the criteria for tax risk assessment used by tax authorities for making the decision to conduct an on-site tax audit. The dynamics of the tax burden indicator is considered to be a catalyst for the development of positive or negative tax relations between the taxpayer and the tax authority. It is very important to understand the relationship between the tax burden indicator and the firm's size in order to form an objective approach to tax control of micro, small and medium-sized businesses in different industries. The purpose of the research is to define a relationship between the level of tax burden and the firm's size in the Russian timber industry. The hypothesis of the research is that the tax burden increases as the size of the firm grows in the timber industry in Russia. Firms belonging to the categories of micro and small businesses were selected randomly, taking into account the priority characteristics of the firm's size by the average number of employees. The tax burden was calculated using the official methodology of the Federal Tax Service of Russia. The calculation of the tax burden level was performed for each respondent. The average values of tax burden indicators were also calculated by industry and for each category of business activity. We found that the average level of the tax burden increases when the size of businesses increases generally for all branches of the timber industry. At the same time, the researched characteristics of the firm's size (revenue and average number of employees) have a significant impact on changes in the level of the tax burden both in general and individually in such branches of the timber industry as logging, woodworking and furniture production. The tax burden level in the above-mentioned industries increases as the firm's size increases. In the pulp and paper industry, the tax burden level increases as from micro firms to small firms, but the tax burden level decreases as firms continue to grow from small to medium-sized ones.

Affirmative Action and Leadership Attitudes in Brazilian Women Managers

2011 ◽  
Vol 10 (3) ◽  
pp. 139-143 ◽  
Author(s):  
Gazi Islam ◽  
Sarah E. S. Zilenovsky
Keyword(s):  
Affirmative Action ◽  
Latin American ◽  
Women Managers ◽  
Psychological Effects ◽  
Preferential Selection ◽  
Justice Perceptions ◽  
First Time ◽  
The Relationship

This note examines the relationship between affirmative action (AA) program perceptions and women’s self-ascribed capacity and desire to become leaders. We propose that women who believe that their organization implements a program of preferential selection toward women will experience negative psychological effects leading to lowered self-expectations for leadership, but that this effect will be moderated by their justice perceptions of AA programs. We test this proposition empirically for the first time with a Latin American female sample. Among Brazilian women managers, desire but not self-ascribed capacity to lead was reduced when they believed an AA policy was in place. Both desire’s and capacity’s relationships with belief in an AA policy were moderated by justice perceptions.

Relationship Between Level of Income and Method of Contribution and Appointment of Islamic Waqf Bank as an Agent in Collecting Waqf Fund

2014 ◽  
Vol 2 (2) ◽  
pp. 15
Author(s):  
Muhammad Ridhwan Ab. Aziz ◽  
Mohd Asyraf Yusof ◽  
Fuadah Johari ◽  
Hisham Sabri
Keyword(s):  
Support Services ◽  
Quantitative Research ◽  
Financial Institution ◽  
The Other ◽  
Strong Tendency ◽  
Trust Fund ◽  
Cost Of Living ◽  
Good Education ◽  
Unique Structure ◽  
The Relationship

Receiving a good education helps empower people knowledge, thus making them strong enough to look after themselves in any given situation. It keeps oneself aware of given surrounding as well as the rules and regulations of the society they living in. Moreover, the technology that we use today is a result from the advancement and improvement of education. On the other hand Islamic waqf bank is a special designed financial institution in Islam. This bank will benefit the student and also their parents, due to its unique structure that could finance students‟ education in term of fees and cost of living. Islamic waqf bank uses the concept of cash waqf in terms of funding the education. While cash waqf is a trust fund established with money to support services for mankind‟s benefits in the name of Allah. The objective of this article is to examine the relationship between level of income and contribution method of cash waqf fund in Islamic waqf bank as well as the appointment of an agent in collecting waqf fund in Islamic waqf bank. The methodology of this research is a quantitative research towards 287 respondents among Muslim public in this country. The general finding of this article shows that, with proper contribution method and the appointment of Islamic waqf bank as an agent in collecting the cash waqf fund, there is a strong tendency that the Islamic waqf bank‟s operation will be run effectively.

Sign in / Sign up

Export Citation Format

Share Document