scholarly journals How Important Are Management Practices for the Productivity of Small and Medium Enterprises?

2020 ◽  
pp. 88-112
Author(s):  
Axel Demenet ◽  
Quynh Hoang
Keyword(s):  
Developing Countries ◽  
Firm Size ◽  
Small Firms ◽  
Management Practices ◽  
Small And Medium Enterprises ◽  
Financial Capital ◽  
Firm Level ◽  
Business Skills ◽  
Entrepreneurial Attitudes ◽  
Medium Enterprises

Is the lack of ‘managerial capital’, alongside human and financial capital, a constraint on the growth of firms in developing countries? The evidence on this is still mixed, especially among small and medium enterprises. This chapter uses a panel of Vietnamese enterprises to investigate this question. We build a multidimensional measure of managerial capital, combining both practices and attitudes, and link it with consistent estimates of firm-level productivity and mark-up. We show that there is a positive and significant association between managerial capital and productivity: changes in management practices allow firms to be more efficient. Furthermore, we compare this association by firm size, and show that managerial capital is arguably as important for micro and small firms as it is for medium ones. Finally, it appears that the indicators related to ‘entrepreneurial attitudes’ play a more important role than elementary business skills.

Analysis of Major Problems Faced by Small Firms in North India

2015 ◽  
Vol 15 ◽  
pp. 150-160
Author(s):  
Davinder Singh ◽  
Jaimal Singh Khamba ◽  
Tarun Nanda
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Economic Development ◽  
Small Firms ◽  
Small And Medium Enterprises ◽  
Developed Countries ◽  
North India ◽  
Small Enterprises ◽  
Employment Generation ◽  
Medium Enterprises

Micro, Small and Medium Enterprises (MSMEs) have been noted to play a significant role in promoting economic growth in less developed countries, developing and also in developed countries. Worldwide, the micro and small enterprises have been accepted as the engine of economic growth of any nation. Small and Medium Enterprises are the backbone of the economies, because it trigger employment, output, export, poverty alleviation, economic empowerment, economic development etc. in developed as well as in developing countries. It is more important to developing countries as the poverty and unemployment are burning problems. MSMEs have been playing a momentous role in overall economic development of a country like India where millions of people are unemployed or underemployed. Therefore, the growth of small sectors is essential for the growth in the GDP, employment generation, total manufacturing production and export. India, being one of the fastest growing economies of the world, needs to pay an honest attention for the utmost growth of MSMEs for its increased contribution in above areas.

scholarly journals Corporate parents, initial legitimacy, and resource acquisition in small and medium firms: An empirical examination

2011 ◽  
Vol 14 (1) ◽  
pp. 23-34 ◽  
Author(s):  
Gregory Murphy ◽  
Neil Tocher
Keyword(s):  
Firm Size ◽  
Small Firms ◽  
Small And Medium Enterprises ◽  
Empirical Test ◽  
Resource Acquisition ◽  
The Internet ◽  
Empirical Examination ◽  
Credit Scores ◽  
Medium Enterprises ◽  
Medium Firms

Small and medium enterprises (SMEs) commonly struggle to acquire needed financial, human, and technological resources. The above being stated, recent scholarly research argues that SMEs that are able to successfully navigate the legitimacy threshold are better able to gather the resources they need to survive and grow. This article provides an empirical test of that claim by examining whether the presence of a corporate parent positively influences SME resource acquisition. Results of the study show that SMEs with corporate parents, when compared to like-sized independent SMEs, have higher credit scores, have more complete management teams, use more computers, and are more likely to be on the Internet. These differences are most pronounced for very small firms and diminish in significance as firm size increases. Study implications include the notion that presence of a corporate parent likely represents a successful navigation of the legitimacy threshold, positively increasing SME resource acquisition.

scholarly journals Innovation and Firm Performance: The Moderating and Mediating Roles of Firm Size and Small and Medium Enterprise Finance

2020 ◽  
Vol 13 (5) ◽  
pp. 97 ◽  
Author(s):  
Ploypailin Kijkasiwat ◽  
Pongsutti Phuensane
Keyword(s):  
Firm Performance ◽  
Firm Size ◽  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Partial Least Square ◽  
Least Square ◽  
Financial Capital ◽  
Medium Enterprise ◽  
Medium Enterprises ◽  
The Impact

This study examines the moderating effect of firm size on the relationship between innovation and firm performance of small and medium enterprises in 29 countries in Eastern European and Central Asia. The study also investigates whether the impact of innovation in products and processes on firm performance is affected by financial capital. The method applied is partial least square structural equation modelling. The findings indicate that firm size and the financial capital both moderate and mediate the impact of innovation on firm performance, positively or negatively. The findings have implications for decision makers by highlighting the significance of firm size and financial sources when planning to introduce innovations to enhance firm performance.

Lights Off, Lights On: The Effects of Electricity Shortages on Small Firms

2019 ◽  
Author(s):  
Morgan Hardy ◽  
Jamie McCasland
Keyword(s):  
Developing Countries ◽  
Panel Data ◽  
Firm Size ◽  
Null Hypothesis ◽  
Small Firms ◽  
Measurable Effect ◽  
Firm Level ◽  
Differential Effects

Abstract Entrepreneurs in developing countries report that unreliable electricity imposes a serious constraint, yet little evidence exists on how blackouts impact the micro-firms that account for the majority of employment. This article estimates the effects of outages on small firms using original firm-level panel data and finds evidence of differential effects by firm size. Firms without employees experience large reductions in revenues and profits. Outages have no measurable effect on the output of firms with employees, where worker hours increase, weekly wages paid decrease, and the analysis fails to reject the null hypothesis that blackouts have no effect on (average firm-level) worker hourly wages.

The relevance of corporate governance codes to small and medium enterprises: The case of developing country

2019 ◽  
Vol 3 (1) ◽  
pp. 18-24
Author(s):  
Hlupeko Dube ◽  
Zvitambo Kudakwashe
Keyword(s):  
Developing Countries ◽  
Corporate Governance ◽  
Small Firms ◽  
Small And Medium Enterprises ◽  
Microfinance Institutions ◽  
Corporate Governance Codes ◽  
Set Up ◽  
Sustainability Challenges ◽  
Medium Enterprises ◽  
Governance Training

The aim of this paper was to examine the relevance of governance codes to Microfinance Institutions (MFIs) in developing counties. The study was motivated by a lack of transparency, sound risk management and sustainability challenges faced by MFIs in developing countries. The study was important for the improvement of governance in MFIs, which are an important tool for the growth, and development of nations. In the paper, a theoretical literature review approach to governance in MFIs was adopted because it allowed the researcher to review critique and synthesize the literature on governance in MFIs. This, in turn, enabled the researchers to generate new frameworks and perspectives on the topic in microfinance. The study found that there was poor governance in Zimbabwean MFIs, governance codes in place were skewed towards large corporations and did not fit the context MFIs. Furthermore, the study established that financial statements for MFIs were not easy to access and the application of corporate governance in MFIs of developing countries was found to be difficult because of inadequate financial resources and lack of knowledge on governance issues. Therefore, the study concluded that corporate governance codes in developing countries needed to be adjusted to the context of MFIs. The study recommends that governance codes that suit the institutional set up of small firms including MFIs in terms of capital structure, ownership concentration and markets should be crafted and adopted. Furthermore, MFIs should implement governance training and increase transparency. The governance codes should be provided free to businesses and be accompanied by extensive training by government and institutions of higher learning.

scholarly journals Environmental Management, Climate Change, CSR, and Governance in Clusters of Small Firms in Developing Countries

2016 ◽  
Vol 56 (1) ◽  
pp. 130-151 ◽  
Author(s):  
Jose A. Puppim de Oliveira ◽  
Charbel Jose Chiappetta Jabbour
Keyword(s):  
Climate Change ◽  
Environmental Management ◽  
Developing Countries ◽  
Small Firms ◽  
Research Policy ◽  
Small And Medium Enterprises ◽  
Industrial Clusters ◽  
Policy And Practice ◽  
Legal Enforcement ◽  
Medium Enterprises

One of the key debates in the literature on small and medium enterprises (SMEs) and corporate social responsibility (CSR) in developing countries has to do with the role that local industrial districts, or so-called industrial clusters, play in the promotion of CSR in those countries. While there is now an embryonic literature on this subject, we lack systematic, integrated analytical frameworks that can improve our understanding of the role that governance of clusters play in addressing CSR concerns in SMEs in developing countries. This article develops such a conceptual framework drawing on the literatures on cluster governance, CSR, SMEs, and environmental management (EM) as they relate to the developing countries. The authors argue that environmental improvements in SME clusters can be achieved through three basic types of cluster governance: legal enforcement, supply chain pressure, and voluntary engagement in CSR. The proposed framework is an attempt to show how each type of cluster governance is likely to induce different responses in cluster-based SMEs. These responses are related to stages of CSR in which SMEs engage, the barriers to EM they face, the types of EM practices they use, the climate change strategy types they use, and the kinds of benefits that accrue to SMEs from engagement in CSR. The authors put foward a framework that can be useful for both academics and practitioners as they seek to reflect on the interconnectedness of these themes from a research, policy, and practice perspective.

Supporting Small and Medium Enterpries to Access Technological Innovation State Fund: International Experience and Lessons for Vietnam

2018 ◽  
Vol 34 (1) ◽  
Author(s):  
Huong Vu Thanh ◽  
Thu Anh Nguyen ◽  
Mai Thi Thanh Nguyen
Keyword(s):  
Developing Countries ◽  
Technological Innovation ◽  
Financial Support ◽  
Technology Innovation ◽  
Small And Medium Enterprises ◽  
International Experience ◽  
Advanced Technologies ◽  
Medium Enterprises ◽  
Developed Nations ◽  
State Fund

Technological innovation state funds supporting small and medium enterprises (SMEs) are not common in the developing countries like Vietnam, but are common in the developed nations like the European countries and Korea. The financial and non-financial support of these funds has contributed significantly to the development of many SMEs. Learning from the funds which have successfully facilitated SMEs in innovating and developing advanced technologies is meaningful to the Vietnamese sicence and techonology management bodies and state funds. This article will review the experience of some typical fund in supporting SMEs, thereby providing some lessons for technology innovation Funds of Vietnam to create a more favorable environment for SMEs to access funds.

A Conceptual Framework for the Acceptance of E-Commerce Technologies among Organizations in Developing Countries

2020 ◽  
pp. 205-210
Author(s):  
A. M. Meirmanova
Keyword(s):  
Developing Countries ◽  
Conceptual Framework ◽  
Small And Medium Enterprises ◽  
Cultural Dimensions ◽  
Cultural Dimension ◽  
Unified Theory ◽  
Use Of Technology ◽  
Hofstede’S Cultural Dimensions ◽  
Hofstede's Cultural Dimensions ◽  
Medium Enterprises

The presented study examines e-commerce technologies a new conceptual framework of the unified theory of acceptance and use of technology among small and medium enterprises (SMEs) in developing countries.Aim. The study aims to identify factors for the implementation and acceptance of e-commerce among small and medium enterprises (SMEs) in developing countries.Tasks. The authors utilize tools of G. Hofstede’s cultural dimensions theory to describe the emotional attitude of an individual to the use of technology.Methods. This study examines various aspects of the method of the unified theory of acceptance and use of technology (UTAUT), which is implemented in many studies of behavioral intentions of individuals in the adoption of new technologies.Results. For the first time, a conceptual (predictive) model based on four moderating variables is proposed. The variables include such cultural dimension parameters as power distance index  (PDI), individualism/collectivism  (IDV), uncertainty avoidance  (UAI), and long-term/short-term orientation (LTO). These moderators boost the effect of the basic constructs on the behavioral propensity for the use and application of technologies.Conclusions. Based on the considered conceptual framework, the authors propose a number of recommendations for the development of tools that would ensure the required level of employee engagement in the acceptance and use of e-commerce technologies among small and medium enterprises (SMEs) in developing countries. Another promising direction involves using the tools of G. Hofstede’s cultural dimensions theory to examine the specific aspects of the acceptance and use of information technology among organizations belonging to different national business cultures.

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