Internationalization of industrial small-medium enterprises in an emerging country

2019 ◽  
Vol 33 (1) ◽  
pp. 71-94 ◽  
Author(s):  
Luis Enrique Ibarra-Morales ◽  
Monica Blanco-Jimenez ◽  
Beatriz Alejandra Hurtado-Bringas

Purpose The purpose of this paper is to boost the internationalization of companies by implementing key factors that will help them to increase their exports in a context of an emerging country such as Mexico, where very few small- and medium-sized enterprises (SMEs) achieve internationalization. Design/methodology/approach According to different theories on the internationalization of companies, five independent variables were designed to measure their effect on the export performance using a multiple regression model on a sample of 95 Mexican industrial SMEs. In this context, the objective of this study is to investigate the impact of the product price, product quality, installed capacity, innovation capacity and financial capacity on the export performance of SMEs; and to identify the factors that are more significant. Findings The results indicate that innovation has a positive relationship, while the price of the product has a negative relationship with the internationalization of small- and medium-sized enterprises, showing that there is a possibility of overemphasizing the role of both variables in export performance of SMEs, at least in the Mexican context. The rest of the variables were not statistically significant to the generated model, perhaps because they are implicitly considered at the time of exporting and entering international markets. Originality/value These results will help companies to focus their efforts on obtaining resources to maintain and expand exports and find new opportunities in foreign markets to grow. They also show that companies can implement different types of internationalization strategies with the study’s variables to achieve better performance.

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Siti Faizah Zainal ◽  
Hafiza Aishah Hashim ◽  
Akmalia M. Ariff ◽  
Zalailah Salleh

Purpose The purpose of this paper is to present a review of literature on fraud with a specific focus on small and medium enterprises (SMEs). Specifically, it aims to provide further knowledge on recent developments in fraud research and offers suggestions for future research. Design/Methodology/Approach This paper systematically reviews the fraud literature, by organising them into five sections; definition, elements, theories, factors and prevention mechanisms. Findings The most common factors of fraud in SMEs are the low morale among employees and weak internal control within the organisations. Nonetheless, research on fraud involving SMEs is limited, albeit the importance of SMEs to the economy. Research Limitations/Implications This paper encapsulates the importance of research on fraud in SMEs by offering directions for future research. Among others, future studies might indicate the link between corruption, financing sources and innovation of SMEs, especially within the context of an emerging country and reveal the cost of the criminal justice system to identify more accurately the cost of fraud in SMEs. Originality/Value The focus on fraud in SMEs and the recent period of study offer a foundation for future research directed at the factors of fraud and the prevention mechanisms. Future research can further explore and broaden the literature on fraud involving SMEs through research that focuses on the impact of fraud and the types of control mechanisms that suit the SMEs. Greater understanding of fraud in the SMEs allows in identifying the best approach to prevent and detect fraud for small businesses with limited resources.


Author(s):  
Halimahton Borhan ◽  
Rozita Naina Mohamed ◽  
Nurnafisah Azmi

Purpose – The purpose of this paper is to examine the impact of financial ratios on the financial performance of a chemical company: LyondellBasell Industries (LYB). Some selected ratios: current ratio (CR) and quick ratio (QR) represent the liquidity ratios, debt ratio (DR) and debt equity ratio (DTER) represent the leverage ratios, while operating profit margin (OPM) and net profit margin (NPM) represent the profitability ratios. LYB faced financial problems after its merger and the financial performance of the company shrank to negative due to the world financial crisis. However, this company has bounced back after a year and is now the world's third largest chemical company based on revenue. Design/methodology/approach – The financial ratios were measured from 2004 to 2011, quarterly. A multiple regression model has been used and secondary data has been analyzed. Findings – The results shows that CR, QR, DR and NPM have a positive relationship while DTER and OPM have a negative relationship with the company's financial performance. Among the six ratios, CR, DR and NPM show the highest significant impact on the company's performance. Originality/value – This research paper contributed the result of the impact of financial ratios on the financial performance of a chemical company as the previous studies with this focus are hard to find and some of the sources are not specifically related to the topic.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jefferson Marlon Monticelli ◽  
Ivan Lapuente Garrido ◽  
Luciana Marques Vieira ◽  
Adriana Fumi Chim-Miki ◽  
Jorge Carneiro

Purpose This paper aims to investigate the effects of formal institution agents on export performance, mediated by coopetition. It presents novel scales for evaluating firms’ adherence to cooperation agreements with competitors, identifying coopetition networks’ main motives and goals. The study also focuses on the relationship between the export performance of small and medium enterprises from emerging markets and coopetition strategies. Design/methodology/approach The study adopts a quantitative methodology using multivariate and confirmatory methods. The sample comprised 166 firms from three different industries in an emerging market (Brazil). Findings The results indicate that adherence to formal institution agents promotes cooperation among competitors and that such coopetition tends to improve export performance. The role played by formal institution agents minimizes the paradoxical tension and fosters coopetitive performance. Firms in developing markets look to mediated coopetition to achieve coopetitive advantages. They cooperate to create collective advantages from shared resources, but they do not lose sight of the ultimate objective of appropriating these advantages. The cycle of creation and appropriation of advantages is fostered by the formal institution agent, acting as the conductor of an orchestra, coordinating movements and setting the rhythm for the partners. The institutional agent, thus, constitutes an important hub of the coopetition network. Originality/value The paper contributes to understanding a type of coopetition that has hitherto been underexplored in the literature – mediated coopetition.


2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Islam Elgammal ◽  
Ghada Talat Alhothali ◽  
Annarita Sorrentino

Purpose Umrah is a religious ritual that takes place inside the Holy Mosque in Makkah. Umrah can be performed any time during the year; however, performing Umrah in the month of Ramadan is much rewarded. Although the kingdom of Saudi Arabia is hosting this event each year, studies that focus on exploring the Holy Mosque visitor segments are scarce. This study aims to explore and describe the marketing segments of Umrah performers relative to their Umrah experience inside the Holy Mosque of Makkah. Most specifically, this study aims to explore segments of Umrah performers based on their perception of servicescape, hedonic and convenience value and the visitors’ outcome behaviors [i.e. intention to revisit and positive word of mouth (PWOM)]. Design/methodology/approach Mixed-method techniques of data collection [i.e. self-administered questionnaires (n = 278) and short discussions (n = 10)] were used. Findings Cluster analysis is used for data analysis. The findings revealed four clusters of Umrah performers: real, occasional, rational and passionate performers. Research limitations/implications This study is a first attempt to target pilgrims based on their experience with the servicescape during the organized religious event; despite its exploratory nature, it reveals interesting insights that will be useful for managers and scholars. Although the study helps to enrich the existing knowledge on visitors’ experience and proposes some implications for practitioners, it does have some limitations. First, convenience sampling was used, and hence the findings cannot be generalized. Second, the limited period of observation did not allow the authors to provide a complete picture of the pilgrims’ behavior; for this reason, the study findings partially describe the phenomenon. Another limitation is related to the difficulty of approaching respondents from Asia or South East Asia although they constitute a significant percentage of the total Umrah performers every year; this is because of the language barrier as data was collected from only English and Arabic speakers. Hence, to overcome these limitations, it is suggested that future studies could be expanded to target Asian respondents and perhaps other nationalities; and could be undertaken in other religious contexts. Moreover, an interesting future study could be carried out to compare the same model during other religious events. Added to that, another growing area of research could be approached by researchers, such as the impact of pilgrims sharing their experiences on influencing E-PWOM. Practical implications The findings reveal several implications for policymakers and stakeholders. The segmentation of Umrah performers assists destination managers, policymakers and local firms involved in managing this mass event to identify effective marketing decision-makers, business strategies and policymakers to satisfy the needs of these visitors (Disegna et al., 2011). Particularly, the identification of the key characteristics of these visitors can help destination marketers to develop a marketing mix that suits the needs of each cluster (Smith et al., 2014). Despite that the performers’ main motivation is the religious purpose, marketing strategists can attract the attention of these visitors to visit other religious, cultural and heritage sites in the country. Social implications Encouraging the visit to other tourist spots in Saudi has several impacts on nourishing the economy and the community. Tourism in Saudi could encourage entrepreneurs to start new ventures to satisfy the need of visitors to the country. Small-medium enterprises could benefit from tourism as they could target market niches in which leader companies are not serving. For instance, hand-made souvenirs are one of these industries that could grow to satisfy the need of visitors. Originality/value The results contribute to the literature of event segmentation by identifying visitors’ profiles to rarely investigated destinations. The findings reveal several implications for policymakers and stakeholders.


Author(s):  
Mohammad Adrian ◽  
Hendrati Dwi Mulyaningsih ◽  
Santi Rahmawati

This reasearch is conducted on MMSME (Micro Small Medium Enterprises) that are participated in the MMSME Syari’ah Mentoring Program by Academicians and Practitioners (PUSPA) organized by Bank Indonesia in Bandung. MMSME who participated in PUSPA program 2016 is MMSME that included in necessity entrepreneur where MMSME operated just to fullfil the life necessities. The purpose of this reasearch was to investigate the influence of the business mentoring on the MMSME performance in PUSPA program 2016. Researcher used quantitative research method. Data were analyzed using simple regression analysis and descriptive-causal analysis. The result showed that business mentoring affect the performance of MMSME that participated in PUSPA Program 2016. Based on the calculation, coefficient of determination (R2) can be seen the influence of business mentoring variable (X) on the performance (Y) is 74%. While the remaining 26% is influenced by other factors such as entrepreneurship competence and human resources.


Author(s):  
Elsa Nanda Utami ◽  
Hendrati Dwi Mulyaningsih

This reasearch is conducted on MSME (Micro Small Medium Enterprises) that are participated in the MSME Syari’ah Mentoring Program by Academition and Practitioners (PUSPA) organized by Bank Indonesia in Bandung. MSME who participated in PUSPA program 2016 is MSME that included in necessity entrepreneur where MSME operated just to fullfil the life necessities. This program aims to improve the competence of entrepreneurship owned by MSME in term of knowledge, attitudes, and skills. Increased in the entrepreneurial comptence will have an impact on MSME perfomance both on financial term by the increase in income and non-financial term namely by the increased of the knowledge and skills like simple accounting, managing the production process, how to market the product, and know the procedures for obtaining the venture capital. The purpose of this reasearch was to investigate the influence of the entrepreneurial competence on the MSME performance in PUSPA program 2016.Researcher used quantitative research method. This research use sampling technique on non-probability sampling that is saturated sampling because the members of population less than 30 people and the entire population is a sample. Total sample in this research is 20 respondents. Data collecting in this research is done by distributing questionarries to all respondents that is MSME that pariticaped in PUSPA program 2016. Data were analyzed using simple regression analysis and descriptive-causal analysis.The result showed that entrepreneurial competenec affect the performance of MSME that participated in PUSPA Program 2016. Based on the calculation, coefficent of determination (R2) can be seen the influence of entrepreneurial compentence variable (X) on the performance (Y) is 61.7%. While the remaining 38.3 is influenced by other factors such as mentoring, motivation, and human resources.


Author(s):  
Mohammad Adrian ◽  
Santi Rahmawati

This reasearch is conducted on MSME (Micro Small Medium Enterprises) that are participated in the MSME Syari’ah Mentoring Program by Academition and Practitioners (PUSPA) organized by Bank Indonesia in Bandung. MSME who participated in PUSPA program 2016 is MSME that included in necessity entrepreneur where MSME operated just to fullfil the life necessities.The purpose of this reasearch was to investigate the influence of the business mentoring on the MSME performance in PUSPA program 2016.Researcher used quantitative research method. Data were analyzed using simple regression analysis and descriptive-causal analysis.The result showed that business mentoring affect the performance of MSME that participated in PUSPA Program 2016. Based on the calculation, coefficient of determination (R2) can be seen the influence of business mentoring variable (X) on the performance (Y) is 74%. While the remaining 26% is influenced by other factors such as entrepreneurship competence and human resources.  


2015 ◽  
Vol 7 (4) ◽  
pp. 360-378 ◽  
Author(s):  
Ranjitha Ajay ◽  
R Madhumathi

Purpose – The purpose of this paper is to empirically examine the impact of earnings management on capital structure across firm diversification strategies. Design/methodology/approach – The study focuses on firms operating in the manufacturing sector (diversified and focused). Panel data methodology compares diversification strategies and identifies the impact of diversification strategy with earnings management practices on capital structure decision. Findings – International and product diversified firms have lower levels of leverage than focused firms in their capital structure. Asset-based earnings management is positive for diversified (market/product) firms. Earnings management using discretionary expenditure (project based) is found to be higher for market diversified but product-focused firms. Earning smoothing method is found to be significant for focused firms and shows a negative relationship with capital structure. Originality/value – This study offers an insight into the relationship between corporate diversification, earnings management and capital structure decisions of manufacturing firms. The results provide an important contribution to accounting and strategy literature. A distinction is made between market- and product-diversified firms and influence of earnings management practices (asset-based, project-based and earnings smoothing (ESM)) on capital structure decisions. Diversified firms (market/product) tend to have lower levels of leverage than focused firms and earnings management practices within firm groups significantly influence the capital structure decisions.


2021 ◽  
Vol 19 (5) ◽  
pp. 681-700
Author(s):  
Mohammad Almaleki ◽  
Mahdi Salehi ◽  
Mahdi Moradi

Purpose This study aims to investigate the impact of managerial narcissism and overconfidence on financial statements’ comparability. In other words, this paper seeks to answer the question of whether the personality characteristics of managers may affect the level of financial statements’ quality of commercial entities or not. Design/methodology/approach The research hypotheses are tested using a sample of 896 observations taken from the Tehran Stock Exchange and 245 observations from the Iraqi Stock Exchange during 2012 and 2018 using the multiple regression model based on the combined data technique. Findings The findings show that managerial narcissism is positively and significantly associated with Iran’s financial statement comparability. In contrast, Iraqi data articulate a negative association between these two variables. This paper finds that Chief Executive Officer overconfidence and financial statements’ comparability are negatively related in both countries. Following the market variation, the different findings suggest that institutional settings such as the general managerial style, adopting international accounting standards (now IFRS) leading to the extent of auditing market globally in Iraq and suffering from international sanctions in Iran, the governing business environment may play an allocative role in preparing financial statements. Originality/value The present research is the first research conducted in two emerging markets (Iran and Iraq) examining the relationship between managers’ narcissism and overconfidence and financial statements’ comparability. Therefore, the present research in this area can significantly contribute to the development of science and knowledge.


2017 ◽  
Vol 8 (3) ◽  
pp. 281-306 ◽  
Author(s):  
Li Sun

Purpose This study aims to examine the impact of managerial ability on the total amount of chemical releases reported to the Toxics Release Inventory (TRI) at the US Environmental Protection Agency. Design/methodology/approach Regression analysis is used to examine the association between managerial ability and chemical releases. Findings A negative relationship was found between managerial ability and TRI’s chemical releases, suggesting that more-able managers better reduce TRI’s chemical releases, relative to less-able managers. Practical implications By providing useful insights into what determines TRI’s chemical releases, this study should interest policy makers and practitioners. Originality/value This study contributes to and links two research schools: managerial ability in management literature and corporate social responsibility (i.e. pollution prevention) in the broad business literature. To the best of the author’s knowledge, this is the first empirical study that performs a direct test of the association between managerial ability and TRI’s toxic chemical releases.


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