Innovations and firm-level efficiency: a comparative analysis between China and India

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohammad Monirul Islam ◽  
Farha Fatema
Keyword(s):  
Cost Efficiency ◽  
Manufacturing Firms ◽  
Service Firms ◽  
Firm Level ◽  
Content Type ◽  
Moderation Effect ◽  
Cost Frontier ◽  
Study Results ◽  
Output Efficiency ◽  
Service Sectors

PurposeThis study examines the innovation-efficiency linkage for Indian and Chinese manufacturing and service firms.Design/methodology/approachWe applied the stochastic production and cost frontier approach to determine the output and cost efficiency of the firms surveyed in World Bank enterprise surveys. We then used both unconditional and conditional propensity score matching (PSM) estimation techniques to examine the effects of innovation as well as R&D on output and cost efficiency of the firms surveyed.FindingsThe study results suggest that innovation-efficiency linkage varies between countries and sectors. Innovations significantly raise output and cost efficiency of Indian manufacturing firms, whereas innovations in Chinese manufacturing firms are cost-oriented and negatively affect output efficiency. For the service firms of both countries, innovations are significantly positively linked with output and cost efficiency. The study also suggests that R&D acts as a crucial moderator for innovation-efficiency linkage for Chinese manufacturing firms but not for Indian firms, and the interaction effects of innovations are not substantially higher in magnitude than their individual effects. Finally, conditional PSM results suggest knowledge spillover for effective innovations of Indian firms, whereas R&D is a must for substantial innovation-efficiency linkage in Chinese firms.Originality/valueThis study offers quite a few crucial policy decisions concerning the relationship between innovation and efficiency as well as the moderation effect of R&D on innovation-efficiency linkage. It concludes that the effects of innovation on firms' efficiency and the role of R&D as a moderator of the innovation-efficiency relationship differ between India and China across the manufacturing and service sectors.

How does reverse factoring affect operating performance? An event study of Chinese manufacturing firms

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yongyi Shou ◽  
Jinan Shao ◽  
Weijiao Wang
Keyword(s):  
Event Study ◽  
Cost Efficiency ◽  
Operating Performance ◽  
Manufacturing Firms ◽  
Content Type ◽  
Performance Effect ◽  
Study Results ◽  
Operating Margin ◽  
The Impact ◽  
The Relationship

PurposeAs a popular supply chain finance (SCF) strategy, reverse factoring has been widely adopted by buyer firms. However, the extant literature provides scant empirical evidence on the performance effect of reverse factoring. The purpose of this study is to seek to narrow this gap by empirically examining the relationship between reverse factoring and operating performance and the contingency conditions of this relationship.Design/methodology/approachBased on a sample of 167 announcements of reverse factoring implementation made by publicly listed Chinese manufacturing firms between 2014 and 2018, this paper employs a long-term event study approach to analyze the operating performance effect of reverse factoring as well as the moderating effects of production and innovation capabilities.FindingsThe event study results indicate that reverse factoring has a positive effect on buyer firms' operating performance in terms of cost efficiency and operating margin. In addition, both production and innovation capabilities positively moderate the relationship between reverse factoring and operating margin. However, neither of them moderates the relationship between reverse factoring and cost efficiency.Originality/valueThis is the first study that empirically examines the impact of reverse factoring on operating performance based on secondary data. Furthermore, it sheds light on the SCF literature by providing insights into the contingency effects of production and innovation capabilities, which also extends our understanding of the application of extended resource-based view in SCF research.

The impact of exporting on women's employment

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Begum Dikilitas ◽  
Burcu Fazlioglu ◽  
Basak Dalgic
Keyword(s):  
Manufacturing Firms ◽  
Female Employment ◽  
Women's Employment ◽  
Employment Rate ◽  
Women’S Employment ◽  
Firm Level ◽  
Content Type ◽  
Time Period ◽  
Employment Rates ◽  
The Impact

PurposeThis paper aims to examine the effect of exports on women's employment rate for Turkish manufacturing firms over a recent period of 2003–2015.Design/methodology/approachThe authors establish treatment models and use propensity score matching (PSM) techniques together with difference-in-difference methodology.FindingsThe results of the study indicate that starting to export increases women’s employment rate for manufacturing firms. Gains in female employment rates are observed for the firms operating in low and medium low technology intensive sectors, low-wage sectors as well as laborlabor-intensive goods exporting sectors.Originality/valueThe authors complement previous literature by utilizing a rich harmonized firm-level dataset that covers a large number of firms and a recent time period. The authors distinguish between several sub-samples of firms according to technology intensity of the sector in which they operate, wage level and factor intensity of exports and investigate whether or not women gain from trade in terms of employment opportunities.

Determinants of return-on-equity in USA, German and Japanese manufacturing firms

2019 ◽  
Vol 45 (3) ◽  
pp. 445-451 ◽  
Author(s):  
Stephanie M. Weidman ◽  
Daniel J. McFarland ◽  
Gulser Meric ◽  
Ilhan Meric
Keyword(s):  
Manufacturing Industry ◽  
Financial Analysis ◽  
Important Determinant ◽  
Multivariate Regression Analysis ◽  
Manufacturing Firms ◽  
Firm Level ◽  
Cross Sectional ◽  
Content Type ◽  
Return On Equity ◽  
The Usa

Purpose DuPont financial analysis is generally used in micro-economic studies to compare an individual firm’s financial performance with industry averages. The purpose of this paper is to undertake a macro-economic cross-sectional analysis of the determinants of return-on-equity (ROE) in USA, German and Japanese manufacturing firms. Design/methodology/approach The authors use cross-sectional log-linear multivariate regression analysis to determine the elasticity of ROE to changes in net profit margin (NPM), total assets turnover (TAT) and equity multiplier (EQM) in USA, German and Japanese manufacturing firms. The authors obtain the data for the analysis from the COMPUSTAT Research Insight/Global Vintage database. Findings With data for all manufacturing firms, the authors find that the most important determinant of ROE is NPM in all three countries. The least important determinant of ROE is TAT in the USA and Germany, and EQM in Japan. Electronics is the most important manufacturing industry in all three countries, the authors also apply the analysis to data for the electronics manufacturing firms in the three countries. The authors find that an increase of 10 percent in NPM increases ROE by about 9.8 percent in Germany, by about 8.3 percent in the USA, and by about 6.9 percent in Japan. An increase of 10 percent in TAT increases ROE by about 2.2 percent in Germany and by about 1.5 percent in Japan. An increase of 10 percent in EQM increases ROE by about 1.9 percent in Germany and by about 1.5 percent in the USA. Practical implications The empirical findings of this study can provide useful insights for financial managers regarding the determinants of ROE they should focus on to achieve the greatest impact on ROE. Originality/value DuPont analysis is generally used as a micro-economic tool at the firm level. This study is a macro-economic application of the tool to study the cross-sectional determinants of ROE at the industry level.

CSR and turnover intentions: examining the underlying psychological mechanisms

2017 ◽  
Vol 13 (3) ◽  
pp. 643-660 ◽  
Author(s):  
Richa Chaudhary
Keyword(s):  
Employee Engagement ◽  
Turnover Intentions ◽  
Target Population ◽  
Employee Attitudes ◽  
Hierarchical Regression ◽  
Service Firms ◽  
Content Type ◽  
Psychological Mechanisms ◽  
Study Results ◽  
Public And Private Sector

Purpose The purpose of this study is to investigate the influence of employees’ corporate social responsibility (CSR) perceptions on their turnover intentions. It strives to understand the underlying psychological mechanisms by proposing and testing mediation and moderation hypotheses. Specifically, employee engagement was examined as mediator and gender, belief in the importance of CSR and CSR awareness were examined as moderators of the proposed relationship between CSR and turnover intentions. Design/methodology/approach The target population for the study consisted of junior, middle and senior business professionals from both public and private sector manufacturing and service firms operating in India. The data were collected with the help of self-administered questionnaires via both personal visits to the organizations and internet-based questionnaire. Hierarchical regression analysis was used to test the study hypotheses. Findings The study results suggest a significant influence of employees’ CSR perceptions on their turnover intentions. Additionally, the study delineates the role of employee engagement in understanding the potential of a firm’s involvement in CSR activities in influencing employee attitudes and behaviour at work. Interestingly, significant gender variations were observed in the proposed set of relationships. Belief in the importance of CSR and CSR awareness were also found to significantly moderate the relationship between CSR and turnover intentions. Practical implications By providing persuasive evidence on tangible business benefits of CSR initiatives, this study addresses the concerns of corporate managers to prove the business potential and value engendered by their CSR efforts. Originality/value The study makes a novel contribution by not only examining the direct association between the CSR and turnover intentions, but also by going a step ahead to unfurl the underlying psychological mechanisms for better understanding of the relationships.

Assessment of the current state of sustainability in a manufacturing firm

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Bhavya Pande ◽  
Gajendra Kumar Adil
Keyword(s):  
Value Chain ◽  
Textile Industry ◽  
Sustainability Assessment ◽  
Sustainable Manufacturing ◽  
Manufacturing Firms ◽  
Firm Level ◽  
Manufacturing Firm ◽  
Content Type ◽  
Current State ◽  
Assessment Approach

PurposeSustainable manufacturing is gaining prominence in light of the rising environmental and social concerns worldwide. One major task to enhance manufacturing sustainability is assessment of the current state of sustainability of a manufacturing firm. This paper reviews the existing sustainability assessment approaches applicable for manufacturing firms and observes that most of these approaches are not easy to apply for reasons such as high amount of skill, data and time requirement. Towards bridging this gap, this study proposes a sustainability assessment approach.Design/methodology/approachThe assessment approach proposed in the paper uses a predefined list of potential sustainable manufacturing practices (SMPs) covering the primary and support activity domains of a manufacturing firm's value chain. It proposes a method to assess the extent of implementation of SMPs and identify associated drivers and barriers for each SMP area/category along the value chain of a firm as well as at overall firm level. A case study from textile industry is presented to demonstrate the utility of this approach.FindingsThe sustainability assessment approach adopted in this study uses less time and skills as well as ensures comprehensive coverage of SMPs. It provided valuable information to the management of the case company on how sustainable their practices are and why?Originality/valueThe study highlights the importance of sustainability assessment at SMP area/category level as well as explores practice area/category specific drivers and barriers. It provides a useful approach for a quick assessment of the current state of sustainability in manufacturing firms.

The adoption of strategic pricing by industrial service firms

2015 ◽  
Vol 30 (5) ◽  
pp. 521-535 ◽  
Author(s):  
Kostis Indounas
Keyword(s):  
Positive Impact ◽  
Mail Survey ◽  
Company Performance ◽  
Service Firms ◽  
Content Type ◽  
Market Growth ◽  
Strategic Pricing ◽  
Industrial Service ◽  
Leading Position ◽  
Service Sectors

Purpose – The purpose of this paper is to measure the extent to which selected contextual variables have an impact on the adoption of strategic pricing by industrial service firms, and determine the effect of the adoption of strategic pricing on company performance. Design/methodology/approach – Data were collected from 154 industrial service firms operating in four different service sectors through a mail survey. Moreover, qualitative research through 20 in-depth interviews was carried out. Findings – The study’s main findings indicate that market orientation along with a leading position in the market and market growth boost the development of strategic pricing. On the other hand, technological and market turbulence hinder this development, while the overall impact of turbulence is reduced in market-oriented firms. Finally, a positive impact of strategic pricing on company performance was found. Research limitations/implications – The adoption of strategic pricing requires attention to a variety of factors, while this adoption can improve both qualitative and quantitative aspects of the company’s performance. The significance of these findings notwithstanding, the context of the study does limit generalization of its findings to other industrial service sectors and national contexts. Originality/value – The current study represents one of the first attempts to empirically examine the aforementioned topics in an industrial service context.

Stochastic cost frontier analysis – a sensitivity analysis on cost measures

2016 ◽  
Vol 28 (4) ◽  
pp. 401-410 ◽  
Author(s):  
Thanh Ngo ◽  
David Tripe
Keyword(s):  
New Zealand ◽  
Cost Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Banking System ◽  
Alternative Methods ◽  
Data Sets ◽  
Content Type ◽  
Frontier Analysis ◽  
Cost Frontier

Purpose This paper aims to examine alternative methods for recording and treating costs in studies of bank efficiency. Design/methodology/approach This study used stochastic frontier analysis (SFA) models with core costs and total costs to estimate the cost efficiency of banks in two different economies, Vietnam where the banking system is under-developed (and thus is dominated by traditional banking activities) and New Zealand where the banking system is well-developed (and thus non-traditional banking activities play an important role). Findings The authors found that models using total cost tend to underestimate the banks’ cost efficiency. This underestimation relates to the extent of modern activities in a banking system: it is larger in an advanced banking system (i.e. New Zealand) and smaller in a less-developed banking system (i.e. Vietnam). Research limitations/implications Research is limited to two countries, and it would be useful to apply the same technique to other data sets. Practical implications The paper suggests a new approach to cost SFA studies in banking. Originality/value The paper provides a much more searching analysis of costs in banking than has generally been seen in previous research.

Exploring the influence of supply chain collaboration on supply chain visibility, stakeholder trust, environmental and financial performances: a partial least square approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Charles Baah ◽  
Innocent Senyo Kwasi Acquah ◽  
Daniel Ofori
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Business Environment ◽  
Manufacturing Firms ◽  
Partial Least Square ◽  
Least Square ◽  
Supply Chain Collaboration ◽  
Competitive Strategies ◽  
Content Type ◽  
Study Results

PurposeThe need to stay competitive amidst ever-changing business environment has shifted competitive strategies from firms to supply chains. Managers are now basing competitive strategies on supply chains acknowledging that supply chains present competitive advantages among other resources. The purpose of the study is to explore the predictive relevance of supply chain collaboration and the extent to which it influences supply chain visibility, stakeholder trust, environmental and financial performances. This study focused on manufacturing firms due to their supplier relationships, consumption of resources, energy and emissions of greenhouse gasses.Design/methodology/approachThe study adopted a survey research design, a quantitative approach and partial least square structural equation modelling technique in making data analysis and interpretations due to its suitability for predictive research models as is the case in this study.FindingsThe study hypothesized that supply chain collaboration positively and significantly interacts with supply chain visibility, stakeholder trust, environmental and financial performances. The study results confirmed supply chain collaboration as a significant, positive and a robust influence on supply chain visibility, stakeholder trust, environmental and financial performances thereby projecting win-win scenarios for firms that engage in collaborative supply chain practices.Originality/valueThe study is among the few to indicate findings in relation to the scope of supply chain collaboration's potency in influencing performance from the perspective of manufacturing firms operational in an emerging economy. Thus, this study contributes to understanding the wider scope of supply chain collaboration, its interactions with other firm variables and how it informs decisions of managers, scholars and supply chain partners.

Human capital, service innovation advantage, and business performance

2016 ◽  
Vol 36 (9) ◽  
pp. 974-994 ◽  
Author(s):  
Daniel I. Prajogo ◽  
Adegoke Oke
Keyword(s):  
Human Capital ◽  
Business Performance ◽  
Service Sector ◽  
Service Innovation ◽  
Mail Survey ◽  
Business Environment ◽  
Service Firms ◽  
Firm Level ◽  
Cross Sectional ◽  
Content Type

Purpose The purpose of this paper is to examine the effect of human capital (HC) on service innovation advantage (SIA) and business performance (BP) in service sector firms, and how external environmental factors influence these relationships. Design/methodology/approach This study utilized a cross-sectional mail survey of a random sample of Australian service firms with the unit of analysis being at the firm level. In total, 228 usable responses were received. Findings The overall findings of this study show that HC is positively related to the creation of value or SIA which in turn results in rent generation for firms. The results further show that the effect of SIA on BP is influenced by environmental dynamism and competitiveness with dynamic environments enhancing the effect while competitive environments weakening it. Research limitations/implications The findings demonstrate the complementarity between the resource based theory and contingency theory as they clearly shows that the value of innovation as a firm’s capability is enhanced or weakened within a business environment that is more dynamic or competitive. Practical implications The findings demonstrate the importance of HC, and, thus, encourage managers to seek ways to harness and leverage HC for improving innovation and BP. In addition, the study also helps managers to understand the contingency effect of business environment on the effectiveness of innovation, hence, helping them in deliberating firms’ strategy in different business environments. Originality/value To the best of the authors’ knowledge, this is the first study which examines the effectiveness of HC as organizational resource for building SIA as a source of organizational competitive advantage.

Innovation inputs and efficiency: manufacturing firms in Sub-Saharan Africa

2019 ◽  
Vol 22 (1) ◽  
pp. 59-83 ◽  
Author(s):  
Laura Barasa ◽  
Patrick Vermeulen ◽  
Joris Knoben ◽  
Bethuel Kinyanjui ◽  
Peter Kimuyu
Keyword(s):  
Technical Efficiency ◽  
Absorptive Capacity ◽  
Stochastic Frontier ◽  
Manufacturing Firms ◽  
Sub Saharan Africa ◽  
Foreign Technology ◽  
Firm Level ◽  
Cross Sectional ◽  
Content Type ◽  
Efficiency Effects

Purpose Countries in Africa have a common goal policy of industrialisation that is expected to be driven by investing in innovation that yields efficiency. The purpose of this paper is to investigate the technical efficiency effects arising from innovation inputs including internal R&D, human capital development (HCD), and foreign technology adoption in manufacturing firms in Africa. Design/methodology/approach This study uses cross-sectional firm-level survey data from the 2013 World Bank Enterprise Survey and the linked 2013 Innovation Follow-up Survey. A heteroscedastic half-normal stochastic frontier is used for analysing the technical efficiency effects of innovation inputs of 418 firms. Findings This study reveals that internal R&D, and foreign technology have negative effects on technical efficiency. Notwithstanding, the combination of foreign technology and internal R&D, and foreign technology and HCD reinforce each other’s effects on technical efficiency. Practical implications This study provides evidence that whereas individual innovation inputs may not yield positive efficiency outcomes, the combination of absorptive capacity enhancing inputs comprising internal R&D and HCD with foreign technology is vital for enhancing technical efficiency in manufacturing firms in Africa. This study offers important lessons for managers in manufacturing firms in Africa. Originality/value This study is virtually the first to investigate the relationship between innovation inputs and efficiency in Africa. This study demonstrates that investing in foreign technology in isolation from absorptive capacity enhancing innovation inputs diminishes efficiency. HCD and internal R&D are imperative for building absorptive capacity that enhances efficiency outcomes arising from foreign technology.

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