Regulation and strategic group dynamics of the Nigerian telecommunications industry

2014 ◽  
Vol 5 (2) ◽  
pp. 209-232
Author(s):  
Olawale Oladipo Adejuwon
Keyword(s):  
Firm Performance ◽  
Group Dynamics ◽  
Empirical Studies ◽  
Telecommunications Industry ◽  
Competitive Behavior ◽  
Strategic Groups ◽  
Data Set ◽  
Strategic Group ◽  
Content Type ◽  
Competitive Actions

Purpose – In order to achieve a desirable level of market efficiency, regulators need to identify the strategic groups within an industry and understand the way the constituent groups relate to one another. The paper aims to discuss these issues. Design/methodology/approach – In the current study, factors that may lead to strategic group formation were developed and used as clustering variables in a k-means cluster statistical analysis to categorize the firms into strategic groups. The factors used are entry costs, timing of entry, technology type and scope of operations. In addition, the number and type of competitive actions employed by the firms in the industry were identified by structured content analysis of a public source. The competitive actions were used to examine the dynamics of the resulting groups within the context of competitive behavior, resource and scope commitments and corporate social responsibility (CSR) actions. In addition, χ2 analysis was employed to ascertain the likelihood that actions of a firm will be responded to by firms from the same group or from outside the group. Findings – License fees was found to be the most significant clustering variable. The study also showed that groups with significantly higher license fees carried out considerably more competitive actions, had higher resource and scope commitments and executed more CSR actions. In addition, the study revealed significantly more competition within strategic groups than between groups. Research limitations/implications – The absence of financial records for firms in the sample necessitated the use of CSR activity as a measure of firm performance. Some empirical studies have shown strong links between CSR and firm performance. Practical implications – The study revealed high mobility barriers which prevent ease of movement of firms in the industry from one strategic group to the other. Therefore regulators who wish to promote competition must do so by identifying the strategic groups with significant market power and permitting entry not by lowering entry barriers but by allowing the entry of firms with proven resources similar to the firms in those groups and to stipulate similar commitments in entry conditions. The results also offer management practitioners an insight into competitive behavior in the industry. Originality/value – The study utilized a unique data set (competitive actions of firms in the Nigerian Telecommunications industry as reported in the media) in contributing to empirical studies on competitive dynamics and strategic group literature.

Positioning decisions within strategic groups

2014 ◽  
Vol 52 (10) ◽  
pp. 1858-1887 ◽  
Author(s):  
Xiao Duan ◽  
Zhan-ming Jin
Keyword(s):  
Firm Performance ◽  
Performance Comparison ◽  
Annual Reports ◽  
Corporate Diversification ◽  
Strategic Groups ◽  
Strategic Positioning ◽  
Strategic Group ◽  
Content Type ◽  
Two Factors ◽  
Negative Effect

Purpose – Strategic group has been intensively studied since this term emerged in 1970s, but previous studies have been limited to the comparisons between groups such as performance comparison. The purpose of this paper is to explore the internal structure of strategic groups by examining the effect of strategic distance from a firm to the center of its strategic group on firm performance. Design/methodology/approach – The research is based on data acquired from the annual reports of listed companies and some Chinese domestic databases, including CSMAR Solution, WIND financial database, and China Core Newspapers Full-text Database. After grouping listed pharmaceutical companies in China over the period 2010-2011, the authors test three hypotheses by using fixed effect regressions. Findings – The paper finds that the strategic distance from a firm to the center of its strategic group has a significant negative effect on the firm's financial performance. Two factors are discovered to influence that effect: corporate diversification strengthens the negative effect of strategic distance on performance, while firm's media visibility weakens that negative effect. Originality/value – The findings reveal the relationship between intra-group strategic positioning and firm performance, and specify how firms can gain competitive advantage through positioning choices and strategic actions. This study promotes the establishment of a more comprehensive strategic group theory by revealing the structure within strategic groups.

Causation and effectuation behaviour of Ethiopian entrepreneurs

2018 ◽  
Vol 25 (5) ◽  
pp. 791-817 ◽  
Author(s):  
Shiferaw Muleta Eyana ◽  
Enno Masurel ◽  
Leo J. Paas
Keyword(s):  
Firm Performance ◽  
Empirical Studies ◽  
African Countries ◽  
Data Set ◽  
Content Type ◽  
Entrepreneurial Behaviour ◽  
Tourism Sector ◽  
New Knowledge ◽  
African Context ◽  
Practical Implications

Purpose The purpose of this paper is to investigate the implications of causation and effectuation behaviour of Ethiopian entrepreneurs on the eventual performance of their newly established small firms. It adds new knowledge and insights to advance the theory of effectuation by extending its scope into the domain of entrepreneurial behaviour and firm performance and by testing one of the operationalized scales in an African context. Design/methodology/approach This empirical research is conducted amongst Ethiopian tour operators (n=118) based on primary data from the field. The scales are based on Chandler et al. (2011), which are adapted to fit to the tourism sector and validated in an African context using a two-stage exploratory factor analysis (EFA). Hierarchical multiple regression is used to assess the ability of entrepreneurs’ behaviour (i.e. causation and effectuation) at the startup phase to predict the eventual performance of their newly established firms (self-reported changes in employment size, sales, profit and assets) over three years (January 2012-2015). Findings The findings reveal a varied effect of causation and effectuation on financial and non-financial measures. Causation is positively related to an increase in employment size, whereas the overall effect of effectuation is positively related to financial performance measures, although its dimensions vary in their effects on sales, profit and assets increase. The paper concludes that causation and effectuation have varied implications on firm performance. In other words, unlike the findings of other research in Western contexts, a strong empirical support is not found to claim that effectuation is superior to causation in outcomes such as firm performance in Ethiopian context. Research limitations/implications While this paper provides a new data set for entrepreneurship literature, its findings may lack generalisability. Not only it is industry specific (tourism sector), but also it is conducted in a single African country (Ethiopia). Despite its limitations, the paper adds new knowledge and insights for empirical studies in entrepreneurship field on the effects of entrepreneurs’ behaviour, such as causation and effectuation; on firm performance. Future research should focus on other economic sectors and in different African countries before making generalisations about the effect of causation and effectuation behaviour of African entrepreneurs on firm performance. Practical implications The findings of this paper can be used in other hospitality and tourism sectors like hotels and souvenir shops since tour operating business includes a broad range of service activities such as sightseeing, accommodation, transportation, recreational activities and shopping. Besides, these results have practical implications to prepare and provide business and management training tools to enhance entrepreneurial and managerial skills of owners of small tourism firms in Ethiopia. The findings of the study can also be applied in other African countries with similar culture and business environments to promote tourism development and success in Africa. Originality/value There have been hardly any empirical studies that are undertaken on the implications of entrepreneurial behaviour such as causation and effectuation on the performance of small tourism firms, particularly in an African context. The paper addresses this research gap in entrepreneurship literature in drawing on empirical evidence from small tourism firms (tour operators) in Ethiopia.

Determinants of the firm performance of returnee entrepreneurs in Somalia: the effects of external environmental conditions

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohamed-Abdullahi Mohamed ◽  
Asmat-Nizam Abdul-Talib ◽  
AfifahAlwani Ramlee
Keyword(s):  
Firm Performance ◽  
Conceptual Framework ◽  
Empirical Studies ◽  
Theoretical Background ◽  
Future Research ◽  
African Countries ◽  
Content Type ◽  
Somali Diaspora ◽  
Post Conflict ◽  
Perceived Environmental Uncertainty

Purpose This study aims to examine the role of returning Somali diaspora entrepreneurs on firm performance and their perceived environmental obstacles. Design/methodology/approach The paper draws on a broad literature review and covers a theoretical background to develop a research framework. It presents several propositions to be empirically tested to determine the influence of returnee entrepreneurs’ success and the challenges they face in the process. Findings The paper offers an overview of how Somali diaspora returnee entrepreneurs can use their resources to succeed in their business and the possible environmental uncertainties that could hinder them. The study highlights some under-researched areas and provides future research directions. Research limitations/implications A research investigation is needed to test the proposed conceptual framework empirically. Further research is also recommended to use other predictors when investigating the perceived environmental uncertainty faced by returnee entrepreneurs. Practical implications In the diaspora entrepreneurship literature, returnee entrepreneurs in post-conflict African countries did not get enough attention. Hence, the study will contribute theoretically to the literature. Originality/value The paper provides a conceptual framework that will help understand returnee entrepreneurs in post-conflict states in Africa, paving the way for empirical studies on the topic.

scholarly journals Ownership feature and firm performance via corporate innovation performance

2018 ◽  
Vol 25 (2) ◽  
pp. 239-250 ◽  
Author(s):  
Dung Nguyen ◽  
Hoai Nguyen ◽  
Kien S. Nguyen
Keyword(s):  
Firm Performance ◽  
Positive Impact ◽  
Policy Implications ◽  
Ownership Concentration ◽  
Likelihood Method ◽  
Sales Growth ◽  
Reverse Causality ◽  
Data Set ◽  
Content Type ◽  
Cmp Model

Purpose The purpose of this paper is to investigate the simultaneous relationship among ownership concentration, innovation and firm performance of the small- and medium-sized enterprises (SMEs) in Vietnam during the 2011–2015. By employing a Conditional Mixed Process (CMP) model, the findings show that: there is no impact of ownership concentration on innovation, but it has a positive impact on sales growth; innovation positively affects firm performance; and there exists a positively reverse causality from sales growth to innovation. Design/methodology/approach In this study, the authors propose the adaption of CMP model (Roodman, 2011). The nature of the first stage dependent variable – Innovation – is a binary one while the dependent variable Performance is continuous. Therefore, a model that can adapt the binary nature of the dependent variable and perform the estimation of a system of equations such as CMP model is preferred. The CMP framework is substantially that of seemingly unrelated regression, but with application in a larger scope. This approach is based on a “simulated maximum likelihood method” suggested by Geweke–Hajivassiliou–Keane algorithm. Findings By applying CMP method, this study examines the simultaneous relationship among ownership concentration, innovation and firm performance of the SMEs in Vietnam from 2011 to 2015. The findings indicate that: there is no impact of ownership concentration on innovation, but it has a positive impact on sales growth; innovation positively affects firm performance; and there exists a positively reverse causality from sales growth to innovation. Research limitations/implications In spite of the efforts to explore the simultaneous relationship among ownership concentration, innovation and firm performance of the SMEs in Vietnam, the study still has some limitations which are promising further research directions. First, the SME surveys by Central Institute for Economic Management do not have much information about other types of ownership including state-owned and foreign ownership. Therefore, possible further studies with richer data sets may explore the impacts of different types of ownership on firm innovation and performance. Second, other types of innovation such as organizational innovation, marketing innovation can also be investigated in further studies in a richer data set for the case of Vietnam SMEs. Originality/value The findings show that: there is no impact of ownership concentration on innovation, but it has a positive impact on sales growth; innovation positively affects firm performance; and there exists a positively reverse causality from sales growth to innovation. The policy implications insist on facilitating SMEs with easier access to capital via loans with preferred interest or trust loans without collateral, training programs for the labor force and SME leaders, and reduction of unnecessary administrative procedure.

Collaborative matrix factorization mechanism for group recommendation in big data-based library systems

2018 ◽  
Vol 36 (3) ◽  
pp. 458-481 ◽  
Author(s):  
Yezheng Liu ◽  
Lu Yang ◽  
Jianshan Sun ◽  
Yuanchun Jiang ◽  
Jinkun Wang
Keyword(s):  
Big Data ◽  
Matrix Factorization ◽  
Empirical Studies ◽  
Interaction Matrix ◽  
Group Recommendation ◽  
Data Set ◽  
Content Type ◽  
Potential Value ◽  
Membership Retention ◽  
Online Library

Purpose Academic groups are designed specifically for researchers. A group recommendation procedure is essential to support scholars’ research-based social activities. However, group recommendation methods are rarely applied in online libraries and they often suffer from scalability problem in big data context. The purpose of this paper is to facilitate academic group activities in big data-based library systems by recommending satisfying articles for academic groups. Design/methodology/approach The authors propose a collaborative matrix factorization (CoMF) mechanism and implement paralleled CoMF under Hadoop framework. Its rationale is collaboratively decomposing researcher-article interaction matrix and group-article interaction matrix. Furthermore, three extended models of CoMF are proposed. Findings Empirical studies on CiteULike data set demonstrate that CoMF and three variants outperform baseline algorithms in terms of accuracy and robustness. The scalability evaluation of paralleled CoMF shows its potential value in scholarly big data environment. Research limitations/implications The proposed methods fill the gap of group-article recommendation in online libraries domain. The proposed methods have enriched the group recommendation methods by considering the interaction effects between groups and members. The proposed methods are the first attempt to implement group recommendation methods in big data contexts. Practical implications The proposed methods can improve group activity effectiveness and information shareability in academic groups, which are beneficial to membership retention and enhance the service quality of online library systems. Furthermore, the proposed methods are applicable to big data contexts and make library system services more efficient. Social implications The proposed methods have potential value to improve scientific collaboration and research innovation. Originality/value The proposed CoMF method is a novel group recommendation method based on the collaboratively decomposition of researcher-article matrix and group-article matrix. The process indirectly reflects the interaction between groups and members, which accords with actual library environments and provides an interpretable recommendation result.

The role of national culture in the impact of board gender diversity on firm performance: evidence from a multi-country study

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Navaz Naghavi ◽  
Saeed Pahlevan Sharif ◽  
Hafezali Bin Iqbal Hussain
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Generalized Method Of Moments ◽  
Gender Diversity ◽  
Governance Structure ◽  
Corporate Governance Structure ◽  
Data Set ◽  
Content Type ◽  
Board Gender Diversity ◽  
The Impact

PurposeThis study seeks to add more insights to the debate on “whether”, “how”, and “under which condition” women representation on the board contributes to firm performance. More specifically, the current study aims to investigate if the effect of board gender diversity on firm performance is dependent on macro factors of national cultures.Design/methodology/approachThe authors used the generalized method of moments regression and a data set consists of 2,550 company year observations over 10 years.FindingsThe results indicated that cultural variables interact with board diversity to influence firm performance. Having women on the board in countries with high power distance, individualist, masculine and low-uncertainty avoidance culture influences the firm performance negatively.Originality/valueThe findings indicate that the effects of corporate governance structure on firm performance depends on culture-specific factors, providing support for the argument that institutional norms that are governed by cultural norms affect the effectiveness of corporate governance structure.

Board diversity and performance in a masculine, aged and glocal supply chain: new empirical evidence

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Giuseppe Giulio Calabrese ◽  
Alessandro Manello
Keyword(s):  
Supply Chain ◽  
Firm Performance ◽  
Empirical Evidence ◽  
Linear Models ◽  
Data Set ◽  
Board Diversity ◽  
Content Type ◽  
Automotive Supply Chain ◽  
And Performance ◽  
Automotive Supply

Purpose This study aims to contribute to the debate on the relationship between board diversity and performance, a hot topic for scholars and shareholders. A number of studies have found contrasting impacts of board diversity on firm performance and this paper adds new and original evidence in the context of the automotive supply chain focusing on gender, age and nationality diversity. Design/methodology/approach The authors propose a triple stage empirical analysis. First, the authors use linear models according to different performance indexes for investigating diversity (gender, age and nationality) within the board of directors and executives. Second, the authors investigate the issue of diversity in different contexts such as position in the supply chain, nationality of the owner and family/corporate ownership. Finally, the authors use non-linear models to find a better combination of diversity in terms of gender and nationality for retrieving some managerial implications. Findings First, the authors demonstrate a robust positive effect of women in board representation on firm performance in terms of profitability and firm risk. In the case of, age and nationality the results are more equivocal in particular for the former. Second, the authors depict board diversity in different contexts as follows: positioning in the supply chain, type and nationality of the final owner. Again, gender heterogeneity is more adequate in the complex firm as Tier 1 suppliers, corporate and foreign company. Originality/value The authors focused the analysis on a specific industry, shedding light on the main specificities linked to operating in certain phases of the supply chain, a substantial novelty in this field. The empirical evidence is based on a very large data set containing quantitative and qualitative information on a representative sample of 1,538 firms operating in the Italian automotive supply chain, one of the most relevant in Europe.

High leverage and variance of SMEs performance

2019 ◽  
Vol 20 (2) ◽  
pp. 155-175 ◽  
Author(s):  
Mazen Gharsalli
Keyword(s):  
Firm Performance ◽  
Small Business ◽  
Firm Growth ◽  
Family Firms ◽  
Global Financial Crisis ◽  
Cash Flows ◽  
Data Set ◽  
Content Type ◽  
Good Investment ◽  
The Relationship

Purpose The purpose of this paper is to examine the relationship between leverage and firm performance using small business data from France by estimating the effects of leverage on both average firm performance and the variance of firm performance. Design/methodology/approach Focusing on French small- and medium-sized enterprises (SMEs), which tend to be dependent on bank loans, the authors examine the relationship between leverage and firm performance. This study was based on a unique panel data set of more than 2,157 manufacturing SMEs covering the years 2007-2015. The authors estimate the effects of leverage on both average firm performance and the variance of firm performance. Findings Focusing on the average effects of leverage, the authors find that highly leveraged firms suffer from poor performance. In addition, the variance in firm performance is higher if firms are highly leveraged. Results also underline that leveraged firms are better performers when they have sufficient collateral assets. Research limitations/implications The study, however, has also some limitations. The first one is that the findings were obtained for only one industry sector, so attempts should be made to study the issue, as it applies to other sectors as well. Second is the context where the study was conducted. This study has been conducted based on data gathered from SMEs in France within a specific socioeconomic context (2007-2008 global financial crisis), which may also limit the generalizability of the results for different contexts with different socioeconomic situations. It would also be useful, to have a better explanation for the performance of SMEs, to add to the model more financial variables or other types of variables such as those related to managerial skills or to the macro-economic environment. Finally, further research could examine the joint impact of both leverage and ownership structure on firm’s performance as a large number of French firms are family firms. The limitations of this study, however, can in fact be an opportunity for future researchers to conduct studies addressing those limitations. Practical implications This research has some implications for small business lending. SME owners and managers may, on the one hand, be encouraged by the fact that collateral assets can reduce agency costs, thereby positively affecting firm performance. On the other hand, high leverage can facilitate firm growth if firms have collateral assets. This implies that policymakers interested in stimulating SMEs should develop more suitable collaterals for high-risk SMEs with low asset tangibility. Social implications The results also have implications for financial institutions. To prevent unexpected and extensive bankruptcies, banks might classify firms with negative cash flows as borrower in danger of bankruptcy. However, the results show that highly leveraged firms with good investment opportunities and high collateral assets reduce the probability of bankruptcy. This implies that banks need to evaluate the credit risk of very highly leveraged small businesses more carefully. Originality/value It should be noted that the case of France remains marginal in terms of the conducted studies.

Strategic groups and local railway development in China

2020 ◽  
Vol 9 (3) ◽  
pp. 363-374
Author(s):  
Karl Yan
Keyword(s):  
Strategic Groups ◽  
Structured Interviews ◽  
Party Leadership ◽  
Strategic Group ◽  
Content Type ◽  
Government Documents ◽  
Principal Finding ◽  
Archival Work ◽  
Moral Persuasion ◽  
Municipal Level

PurposeWhat are the mechanisms through which Chinese municipal leaders overcome implementation breakdown? This study, through process tracing, archival work and semi-structured interviews, examines the implementation of three sub-municipal-level railway projects involving the same principals and agents over the same period of time.Design/methodology/approachThe analysis was guided by the hypothesis that political coordination and the exercise of political and Party leadership played an indispensable role in the two cases of successful policy implementation, and its absence accounts for the case of implementation breakdown.FindingsThe principal finding is that an informal “strategic group” was created to “herd” cadres to overcome the problem of implementation. Herding here refers to the idea that Party leadership, through the use of moral persuasion, encourages cadres moving towards a desired common goal and direction.Research limitations/implicationsThis study is limited in the number of secondary resources (government documents and government and media releases) available to the field interviewees, which the author heavily relied on to complete the study.Originality/valueBuilding on the conceptual work of “strategic groups” by Thomas Heberer, Anna Ahlers, and Gunter Schubert, this study makes an empirical contribution by tracing the process through which an informal strategic group exercises its power to overcome implementation breakdown.

Improving firm performance through inter-organizational collaborative innovations

2018 ◽  
Vol 56 (6) ◽  
pp. 1167-1182 ◽  
Author(s):  
Miguel Hernandez-Espallardo ◽  
Fabian Osorio-Tinoco ◽  
Augusto Rodriguez-Orejuela
Keyword(s):  
Firm Performance ◽  
Open Innovation ◽  
Structural Equation ◽  
Strong Support ◽  
Equation Model ◽  
Data Set ◽  
Content Type ◽  
Mediating Role ◽  
Innovation Culture ◽  
Collaborative Innovation

Purpose The purpose of this paper is to add to the existing knowledge about how firm performance is influenced by their involvement in collaborative innovation. The contextual resource-based dimensions improve the participating firm’s performance through its impact on the job-related attitudes of the firm’s personnel. Design/methodology/approach Hypotheses were tested using structural equation model to analyze a set of data collected through surveys among a sample of Colombian manufacturers. Findings This study provides empirical evidence that contributes to the scarce research in the open innovation arena about how human resources influence performance in the inter-organizational collaborative innovations. In particular, it offers strong support for the key mediating role of the employees’ job-related attitudes in the relationship between complementary capabilities and innovation culture as value-creating conditions, and the participating firm’s ultimate sales and financial performance. Research limitations/implications The results may be affected by the context of the data set. Further studies considering the influence of specific contextual variables, such as the type of innovation, the national culture or the type of partner, could yield richer insights that would help validate the results of this study. Practical implications This study provides useful information for managers. As well as creating the required conditions to add value in the collaborative innovation, they should work to guarantee the better job-related outcomes for the employees involved in collaborative innovation projects. Originality/value This research contributes to the open innovation literature. It posits the employee’s attitudes toward collaborative innovations as a factor of the utmost importance in determining how the external collaboration affects internal performance.

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