Internationalization and performance of small and medium-sized enterprises from emerging economies

2020 ◽  
Vol 30 (5) ◽  
pp. 635-663
Author(s):  
Eva Cristina Manotas ◽  
Maria Alejandra Gonzalez-Perez
Keyword(s):  
International Business ◽  
Emerging Economies ◽  
Social Practice ◽  
High Reliability ◽  
Risk Function ◽  
Poor Performance ◽  
Content Type ◽  
Hazard Functions ◽  
And Performance ◽  
The Relationship

Purpose This paper aims to introduce the use of hazards functions for studying the relationship between internationalization and performance in small and medium-sized enterprises (SMEs) from emerging economies. Design/methodology/approach Hazards functions analysis is applied to a sample of 64 companies, previously grouped into two subsets of manufacturing SMEs from an emerging economy. The first group contains firms that have attained an accelerated internationalization. And the second one those that have followed a sequential internationalization. Findings The results show strong evidence that internationalization positively affects the probability of a better performance, and therefore more competitiveness of SMEs. Practical implications The proposed methodology is an invitation to use models other than linear regression to explain the relationship between internationalization and performance, studying the risk function of poor performance, whose characterization in the lifetime of SMEs. The result of this study clearly illustrates how internationalization affects the performance of SMEs for both those SMEs with accelerated internationalization and those with a sequential process of internationalization. Social implications The implementation of quantitative methodologies, such as the analysis of hazards, has implications in the social practice of research in international business, by inviting the return of data from primary sources, obtained from direct sources, which, although they are not large samples, they are representative, and therefore the results of the well-applied methodology offer powerful and high-reliability information. Irreproducible and non-replicable research results threaten the credibility, usefulness and the very basis of all scientific fields. Studies in entrepreneurship, management and in international business are not exempt from this problem that affects the ethics and credibility of research works. Originality/value A literature review is presented exposing the disadvantages of the use of traditional correlation methodologies and proposes the methodology traditionally used in industrial engineering studies of hazard functions as a simple option, free of previous assumptions about the relation between internationalization and performance. Finally, the methodology is subjected to triple testing of conceptualization and measurement of internationalization, performance and the relation between internationalization and performance.

All you need is love: the relationship between agape and work outcomes

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Fallan Kirby Carvalho ◽  
Zubin R. Mulla
Keyword(s):  
Transformational Leadership ◽  
High Reliability ◽  
Work Attitudes ◽  
Operational Definition ◽  
Work Outcomes ◽  
Employee Outcomes ◽  
Content Type ◽  
And Performance ◽  
Management Students ◽  
The Relationship

Purpose The purpose of this paper was to lay the necessary conceptual and empirical groundwork of agape in organizations. Specifically, the authors reviewed literature on agape; advanced formal definition of agape; explained the relationship of agape with related variables; developed a scale to measure agape and provided evidence of its reliability and construct validity; showed how agape uniquely predicted employee outcomes beyond transformational leadership; and showed how agape compensated for the lack of transformational leadership. Design/methodology/approach The authors conducted a survey with 214 working executives who rated their manager on transformational leadership and agape behaviours, and later indicated their own work attitudes. Next, the authors conducted a 20-min between-subjects vignette experiment with 147 business management students who were provided with a description of a supervisor and asked to indicate their work attitudes under the supervisor. Findings The authors advanced an operational definition and a scale to measure agape. The findings of this study indicated that agape was a unidimensional construct with high reliability. It had significant positive relationships with followers’ job satisfaction, faith and loyalty, team commitment, satisfaction and risk-taking; explained incremental variance in employee outcomes beyond transformational leadership; and compensated for the lack of transformational leadership. Research limitations/implications The present research has the potential to inform recruitment, selection, training, promotion and performance evaluation decisions in organizations. Originality/value The authors responded to calls for developing a clear and consistent conceptualization and operationalization of agape for improving scholarly research and leadership training and development.

The relationship between budgetary evaluation, firm size and performance

2015 ◽  
Vol 34 (8) ◽  
pp. 973-986 ◽  
Author(s):  
Azzouz Elhamma
Keyword(s):  
Emerging Economies ◽  
Firm Size ◽  
Evaluation System ◽  
Design Methodology ◽  
Management Control ◽  
Content Type ◽  
And Performance ◽  
The Impact ◽  
The Relationship ◽  
Practical Implications

Purpose – The purpose of this paper is to present the main results of the first empirical study done in Morocco and attempts to highlight the impact of the firm size on the budgetary evaluation and its performance according to the firm size. Design/methodology/approach – Data were collected using a questionnaire sent to the Moroccan firms. A total of 62 questionnaires were correctly returned. The response rate was 15 per cent. Findings – In this research, we identified three principal styles of budgetary evaluation: “strict budgetary evaluation” adopted by 21 per cent of the sample; “moderate budgetary evaluation” adopted by 27.4 per cent of the surveyed enterprises; and “lower budgetary evaluation” adopted by 51.6 per cent of the sample. The first style is adopted especially by large firms. The firm’s performance is significantly and positively correlated with the budgetary evaluation in large enterprises. This correlation is not significant in SMEs. Practical implications – The findings of this research can help managers of companies in emerging economies in the choice of a better budgetary evaluation system. Originality/value – The outcomes of the study are relevant both to the literature on budgetary evaluation in particular and on management control in general, since they determine that the correct fit between budgetary evaluation and firm size causes a positive and significant change in the firm’s performance.

Board of directors' size and performance in the banking industry

2009 ◽  
Vol 5 (2) ◽  
pp. 201-221 ◽  
Author(s):  
Mohamed Belkhir
Keyword(s):  
Board Of Directors ◽  
Boards Of Directors ◽  
Banking Industry ◽  
Poor Performance ◽  
Governance Mechanism ◽  
Past Performance ◽  
Board Size ◽  
Content Type ◽  
And Performance ◽  
The Relationship

PurposeThis paper aims to investigate the relationship between board size and performance in a sample of 174 bank and savings‐and‐loan holding companies, over the period 1995‐2002.Design/methodology/approachIn order to examine the relationship between board of directors' size and performance in the banking industry, the paper uses various statistical tools, including panel univariate analyses and panel data techniques.FindingsContrary to theories predicting that smaller boards of directors are more effective, increasing the number of directors in banking firms does not undermine performance. In contrast, the evidence is in favor of a positive relationship between board size and performance, as measured by Tobin's Q and the return on assets. The paper investigates whether this positive association is due to the fact that banks reduce the number of their directors in the aftermath of poor performance by testing for the relationship between board size and performance. The findings show that the number of directors leaving the board and the number of those joining the board for the first time increase following a poor performance, but the net change in board size is not affected by past performance.Research limitations/implicationsThe paper recognizes that a number of factors that are not controlled for in this study might be behind the positive empirical association between board size and the performance measures used.Practical implicationsThe results of this study suggest that the calls to reduce the number of directors in banks might have adverse effects on performance.Originality/valueThis paper contributes to the banking literature by investigating the relationship between an important governance mechanism, the board of directors, and performance in banking firms.

scholarly journals EXPRESS: Unbundling the Effects of Internationalization on Firm Performance in Emerging Economies: The Moderating Effects of Strategic Resource Decisions

2021 ◽  
pp. 1069031X2110306
Author(s):  
Nilay Bicakcioglu-Peynirci ◽  
Robert E. Morgan
Keyword(s):  
Firm Performance ◽  
Emerging Economies ◽  
Emerging Market ◽  
Strategic Marketing ◽  
Slack Resources ◽  
Moderation Effect ◽  
Strategic Resource ◽  
And Performance ◽  
Resource Decisions ◽  
The Relationship

We investigate how strategic resource decisions—concerning slack resources and strategic marketing ambidexterity—influence the relationship between internationalization and firm performance of emerging market firms. Based upon the resource-based view, we synthesize two dominant, yet divergent, perspectives that explain the respective resource slack advantages and liabilities in the internationalization literature: the flexible capacity and the efficient capacity perspectives. We also explore the moderating role of strategic marketing ambidexterity which comprises a bundle of marketing activities covering both exploitation-dominant actions and exploration-dominant actions. We empirically examine our hypothesized relationships with data from a sample of 1,683 firm-year observations for the period between 2005 and 2018 and find that distinct forms of resource slacks have contrasting effects on the relationship between internationalization and performance. Our results provide strong evidence for positive moderation effect of unabsorbed slack resources and a negative moderation effect of absorbed slack resources on the internationalization-performance relationship. We also indicate nonsignificant moderating effect of strategic marketing ambidexterity, demonstrating that internationalization attains higher firm performance regardless of its exploration-dominant or exploitation-dominant strategic emphasis in emerging economies.

The relationship between MNCs’ strategies and executive staffing

2017 ◽  
Vol 25 (2) ◽  
pp. 233-250 ◽  
Author(s):  
Sangeetha Lakshman ◽  
C. Lakshman ◽  
Christophe Estay
Keyword(s):  
International Business ◽  
Business Strategy ◽  
Global Strategy ◽  
Business Strategies ◽  
Future Research ◽  
Research Approach ◽  
Global Integration ◽  
Content Type ◽  
Managerial Implications ◽  
The Relationship

Purpose The purpose of this paper is to examine the relationship of business strategies with executive staffing of multinational companies (MNCs). Design/methodology/approach Based on in-depth interviews conducted with top executives of 22 MNCs’, the authors identify important connections between international business strategies and staffing orientation. The authors used the qualitative research approach of building theory from interviews; thus, creating theoretical propositions from empirical evidence. Findings The authors find that when the pressure for global integration is high, MNCs use more parent-country national (PCNs) (ethnocentric staffing) as against the use of host-country managers (HCNs) (polycentric staffing) when this pressure is low. Additionally, MNCs using a global strategy are more likely to use an ethnocentric staffing approach, those using a multi-domestic strategy use a polycentric approach and firms using transnational strategy adopt a mix of ethnocentric and polycentric approaches. Research limitations/implications Although the authors derive theoretical patterns based on rich qualitative data, their sample is relatively small and comprises mostly of French MNCs. Generalizability to a broader context is limited. However, the authors’ findings have critical implications for future research. Practical implications The authors’ findings provide critical managerial implications for MNCs in matching their HR strategies with business strategies. These are important for effective strategy implementation. Originality/value Although MNC staffing orientations have been studied for a long time, their relationship to international business strategies is still not clearly understood. The authors contribute to the literature by investigating the relationship between MNCs’ business strategy types with staffing orientations.

“Knowledge management practices” as moderator in the relationship between organizational culture and performance in information technology companies in India

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Timothy Shea ◽  
Syed Aktharsha Usman ◽  
Sengottuvel Arivalagan ◽  
Satyanarayana Parayitam
Keyword(s):  
Information Technology ◽  
Organizational Culture ◽  
Knowledge Management ◽  
Organizational Performance ◽  
Management Practices ◽  
Self Report ◽  
Content Type ◽  
And Performance ◽  
Information Technology Companies ◽  
The Relationship

Purpose The purpose of this study is to empirically examine knowledge management (KM) practices as a moderator in the relationship between organizational culture and performance. The effect of four types of organizational culture on organizational performance was studied. In addition to direct effects, most importantly, KM practices as a moderator in strengthening the culture-performance relationship were empirically examined. Design/methodology/approach A carefully crafted survey instrument was distributed and data was collected from 1,255 respondents from 10 information technology companies in India. After checking the psychometric properties of the instrument, this paper performs hierarchical regression to test hypotheses. Findings The results reveal that: cooperative culture, innovative culture, consistent culture and effectiveness culture were all positively and significantly related to organizational performance; KM practices were positively and significantly related to organizational performance, KM practices moderate the relationship between various dimensions of organizational culture and organizational performance. Research limitations/implications As with any survey-based research, the present study suffers from the problems associated with self-report measures. These are common method bias and social desirability bias. However, this study attempts to minimize these limitations by following appropriate statistical techniques. Practical implications This study contributes to both practicing managers and the literature on KM and organizational culture. The study suggests that managers use KM practices, which are all-pervasive and very important for improving organizational performance. The results highlight the importance of implementing KM practices in organizations. Originality/value This study provides new insights into the importance of KM practices in achieving sustained competitive advantage by achieving organizational effectiveness. To the knowledge, the importance of KM practices is underemphasized in organizational culture research.

How far are we from understanding corruption? The effect of cultural distance on corruption perception

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mike Szymanski ◽  
Ivan Valdovinos ◽  
Evodio Kaltenecker
Keyword(s):  
Cultural Differences ◽  
International Business ◽  
Design Methodology ◽  
Cultural Distance ◽  
State Level ◽  
Generalized Least Squares ◽  
Content Type ◽  
The Usa ◽  
Corruption Perception ◽  
The Relationship

Purpose This study aims to examine the relationship between cultural distances between countries and their scores in the Corruption Perception Index (CPI), which is the most commonly used measure of corruption in international business (IB) research. Design/methodology/approach The authors applied fixed-effect (generalized least squares) statistical modeling technique to analyze 1,580 year-country observations. Findings The authors found that the CPI score is determined to a large extent by cultural distances between countries, specifically the distance to the USA and to Denmark. Research limitations/implications CPI is often used as a sole measure of state-level corruption in IB research. The results show that the measure is significantly influenced by cultural differences and hence it should be applied with great caution, preferably augmented with other measures. Originality/value To the best of the authors’ knowledge, this is the first study to look at cultural distances as determinants of CPI score. The authors empirically test whether the CPI is culturally biased.

Signaling sustainability: impact that learning how to report has on enrollment, endowment and emissions of North American higher education institutions

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Marcel C. Minutolo ◽  
Albena Ivanova ◽  
Michelle Cong
Keyword(s):  
Higher Education ◽  
Linear Models ◽  
Higher Education Institutions ◽  
Main Hypothesis ◽  
Signaling Mechanism ◽  
Content Type ◽  
Improved Performance ◽  
And Performance ◽  
Reporting Mechanism ◽  
The Relationship

Purpose The purpose of this paper is to develop an integrated model assessing the frequency and timing between reports on the Association for the Advancement of Sustainability in Higher Education (AASHE) Sustainability Tracking, Assessment and Rating System (STARS) reporting the framework by higher education institutions (HEIs) and the relationship between the STARS score and reputation (enrollment), finances (endowment) and performance (emissions). Design/methodology/approach The development of the theoretical model is based on learning, signaling and legitimacy theories. This study collects data from the AASHE STARS to indicate the rating level of 202 HEIs, control variables, enrollment, endowments and emissions. The hypotheses were tested using generalized linear models. Findings Findings suggest that as HEIs report on their sustainability activity, they learn to report better but that there is also an “un-learning” aspect if the HEI skips reporting in a period. The results support the main hypothesis that there is a relationship between reporting and engagement with the HEIs in the form of enrollment and endowments. Finally, the findings provide evidence that the HEIs’ reporting is associated with a reduction in emissions. Practical implications The findings suggest that HEIs should develop a reporting strategy on a standardized framework such as AASHE STARs and they ought to codify the approach to learn from prior reporting. Students and alumni are increasingly seeking to engage the HEI in the sustainability process and the report is a mechanism for signaling activities. Social implications The findings suggest that AASHE STARS scores may be used by HEIs as a signaling mechanism to stakeholders of their commitment to sustainability. The signal is a mechanism to reduce information asymmetry between the HEI and stakeholders who may want more information on the institution’s attempts toward sustainability but lack access to information. Further, HEI partners have a mechanism to assess the overall level of commitment of the HEI toward sustainability and can, therefore, engage accordingly. Originality/value There has been significant work on signaling theory and sustainability. However, the relationship between STARs reporting as a signal that legitimates the HEI, learning how to report well and HEI performance has received less attention. The current study demonstrates that the STARS framework as a reporting mechanism signals the HEIs’ level of commitment to sustainability thereby legitimating it resulting in improved performance.

Towards a framework for measuring creative economy: evidence from Balkan countries

2019 ◽  
Vol 23 (1) ◽  
pp. 41-62 ◽  
Author(s):  
Valentina Ndou ◽  
Giovanni Schiuma ◽  
Giuseppina Passiante
Keyword(s):  
Business Environment ◽  
Creative Economy ◽  
Data Set ◽  
Content Type ◽  
Balkan Countries ◽  
World Economic ◽  
And Performance ◽  
Diverse Data ◽  
The Relationship ◽  
Performance Dimension

PurposeThe creative process through which the territorial resources, knowledge and culture are used, exploited and configured to match needs and to achieve congruence with the changing business environment has become a crucial process for competitiveness. This is even more relevant for economies of developing countries which are continuously struggling to reap the benefits of globalisation, as well as to grasp the new opportunities for competitiveness. As such, this paper aims to try to concentrate on the dynamic perspectives of the creative economy of countries by distinguishing between the potentialities and performance. The paper tackles the influence that creativity capacities might have on performance of countries.Design/methodology/approachThe methodology consists in identifying creative economy indicators from a diverse data set of the World Economic Forum and distinguish them between potential and performance indicators.FindingsData reveal as good progress and emphasis is being devoted to increasing the level of creativity; however, the Balkan countries still holdup in their capacity to boost innovation.Practical implicationsThe paper provide a new focus of research on creativity measurement that is significant for understanding what creative capacities territories possess and the ability to make proficient use for growth and innovation.Originality/valueThis paper proposes a new operational framework for measuring and interpreting the creative economy indicators by identifying not only indicators that gauge the potentialities of a country, but also indicators that are linked with the performance dimension, as well as the relationship amongst them.

scholarly journals Cross-country differences in innovative entrepreneurial activity

2018 ◽  
Vol 58 (7) ◽  
pp. 1301-1329
Author(s):  
Ali Raza ◽  
Moreno Muffatto ◽  
Saadat Saeed
Keyword(s):  
Intellectual Property ◽  
Property Right ◽  
Intellectual Property Right ◽  
Entrepreneurial Activity ◽  
Content Type ◽  
Performance Orientation ◽  
Entrepreneurial Cognition ◽  
And Performance ◽  
The Relationship ◽  
Business Freedom

Purpose The purpose of this paper is to clarify the relationship between entrepreneurial cognition and innovative entrepreneurial activity (IEA) across countries using an institutional perspective. Design/methodology/approach The paper tests theoretical model using data collected by the Global Entrepreneurship Monitor, the Global Leadership and Organizational Behavior Effectiveness study and the Index of Economic Freedom (IEF). A multi-level analysis is performed based on set of 1,004,620 observations from 49 countries spanning 13 years (2001–2013). Findings The results suggest that in terms of formal regulations; the relationship between entrepreneurial cognitions and IEA becomes stronger when there is an increase in intellectual property right and business freedom regulations in a country. On the other hand, in terms of informal institutions the relationship between entrepreneurial cognitions and IEA becomes stronger when the level of institutional collectivism and uncertainty decreases and performance orientation increases. Originality/value The study indicates that entrepreneurship by innovation increases when the individuals possess high level of entrepreneurial cognition under suitable institutional conditions (e.g. intellectual property right, business freedom, institutional collectivism, uncertainty avoidance and performance orientation).

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