A bottom-up role of information asymmetry: opening the black-box of firms’ resource allocation mechanism

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Riffat Blouch ◽  
Muhammad Majid Khan ◽  
Wajid Shakeel
Keyword(s):  
Resource Allocation ◽  
Information Asymmetry ◽  
Manufacturing Industry ◽  
Theory Of The Firm ◽  
Survey Method ◽  
Unique Contribution ◽  
Bottom Up ◽  
Content Type ◽  
Bottom Level ◽  
Resource Based Theory

Purpose Drawing on the concept of resource-based theory of the firm; the purpose of this study is to analyze the influence of firms’ strategic approaches on the firm performance via indirect effect using a multilevel, bottom-up approach. Design/methodology/approach Using the survey method, the present study obtains data from 104 diversified manufacturing firms and analyzes the bottom-up effect of firms’ strategic approach on efficient resource allocation using Mplus. Findings Given the prevailing conditions, the study found that the motive of most firms is growth rather than risk mitigation or collaboration in the manufacturing sector of Pakistan. Furthermore, the study found that the bottom-level employees’ information asymmetry has a significant impact on the strategic resource allocation decision, which can lead to resource allocation inefficiency. Research limitations/implications Despite making a unique contribution, the present study has few limitations requiring researchers’ attention to in the forthcoming. These include a low amount of data, self-reporting technique and failure to include all the possible reason that could cause resource allocation inefficiency. Practical implications The present research has potential applications for managers of the manufacturing industry. First, the study alerts managers about the challenges of resource allocation. At the same time, this study provides critical implication for managing bottom-level employees. Originality/value The current study has made a sizable impression in the literature of resource-based theory of the firm by recommending a model that augments the theoretical foundation of strategic management of the firm. So, closely considering these insights would be helping for the firms for allocating resources efficiently in the manufacturing industry.

Are capital structure decisions of service SMEs different? Empirical evidence from Portugal

2011 ◽  
Vol 34 (1) ◽  
pp. 34-57 ◽  
Author(s):  
Zélia Serrasqueiro
Keyword(s):  
Capital Structure ◽  
Information Asymmetry ◽  
Manufacturing Industry ◽  
Estimation Method ◽  
Policy Makers ◽  
Content Type ◽  
Two Samples ◽  
Two Step Estimation ◽  
Over Time

PurposeThe purpose of this paper is to analyze the importance of information asymmetry in the relationships between Portuguese SME's capital structure decisions and creditors, comparing the results of service SME with those found in manufacturing SMEs.Design/methodology/approachTwo samples of Portuguese SMEs are considered: one sample is composed by 610 unlisted service SMEs; and, the other sample is made up by 381 unlisted SMEs in manufacturing industry, for the period 1999‐2006. To estimate the results, the two‐step estimation method is used, to control possible bias arising from data selection. In the first step, probit regression is used. In the second step, after the control for possible data bias, dynamic panel estimators are used.FindingsThe results obtained suggest that information asymmetry in the relationships between SMEs and creditors has a greater relative influence on capital structure decisions of service SMEs than on those of manufacturing SMEs.Practical implicationsGiven the increasing importance of service SMEs in the Portuguese economy for stimulating employment, business volume, and consequently economic growth, it would be advisable for policy makers to create special long‐term lines of credit, with advantageous terms, so that Portuguese service SMEs, when internal finance is insufficient, can finance more efficiently the growth opportunities and the strategies for diversification. In addition, since SMEs' capital structure decisions present differences, both concerning the sector of industry and over time, the measures adopted by policy makers should differentiate their measures between industry sectors and over time.Originality/valueFirst, this paper is pioneering in comparing the adjustment of actual short‐ and long‐term debts, in service and manufacturing SMEs, towards the respective target ratios. Second, it is pioneering in using dynamic estimators and in using the two‐step estimation method, in studies of determinants of capital structure decisions of service and manufacturing SMEs.

Chinese textile and apparel manufacturers' moral duty positions, goals and structures toward sustainability

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nannan Yang ◽  
Jung E. Ha-Brookshire
Keyword(s):  
Moral Responsibility ◽  
Manufacturing Industry ◽  
Online Survey ◽  
Corporate Sustainability ◽  
Moral Duty ◽  
Survey Method ◽  
Content Type ◽  
Corporate Moral Responsibility ◽  
Textile And Apparel ◽  
Apparel Manufacturers

PurposeUsing the moral responsibility theory of corporate sustainability (MRCS) framework , the study examined Chinese textile and apparel (T&A) manufacturers' moral duty positions, goals and structures toward sustainability, with a goal of creating a spectrum of corporate sustainability (CS) performance.Design/methodology/approachAn online survey method was employed to investigate participants' views on their companies' perceptions, goals and structures toward each of the listed sustainability-related activities.FindingsThe results showed that all participants expressed their companies have moral responsibilities toward some aspects of sustainability. Particularly, they viewed that their companies emphasize labor relations (LR) and righteous operation (RO) activities over environmental protection (EP) or public welfare involvement (PW) activities when fulfilling their sustainability responsibilities. After analyzing each response by following MRCS, 41 companies were categorized as occasionally sustainability corporations. The remaining 259 responses were categorized as consistently sustainability corporations in selective areas.Originality/valueThe study for the first time revealed the sustainability-related activities that most respondents in Chinese T&A manufacturing industry perceived as perfect or imperfect duties. Findings add knowledge to the area of corporate moral responsibility toward sustainability and show a spectrum of Chinese textile and apparel manufacturers' sustainability performance, empirically supporting MRCS.

Social media use by undergraduate students of education in Nigeria: a survey

2018 ◽  
Vol 36 (1) ◽  
pp. 21-37 ◽  
Author(s):  
Lalith Wickramanayake ◽  
Saidu Muhammad Jika
Keyword(s):  
Social Media ◽  
Media Use ◽  
Sampling Technique ◽  
University Teaching ◽  
Security And Privacy ◽  
Survey Method ◽  
Unique Contribution ◽  
Social Media Use ◽  
Content Type ◽  
Teacher Students

Purpose This paper aims to investigate teacher students’ perceptions, intentions, experiences, attitudes, opinions and barriers concerning social media use and impact of social media on their learning process. Design/methodology/approach A stratified sampling technique was applied to draw the sample, and 242 teacher students were selected as a sample from three higher educational institutions in Gombe State, Nigeria. A questionnaire survey method was used to collect the data. Data analysis was by means of simple and inferential statistics. Findings The students widely used mobile phones to access social media, and social media was extremely popular for education, entertainment and communication among them. Educational and informational communities were also preferred by students to other social media communities. The study further revealed that effective social media usage among students enhanced their different types of skills including learning. Unstable electricity connections, security and privacy issues, internet costs and unreliable internet connections were recorded as some barriers concerning students’ social media use. Originality/value The outcome of this study will be a unique contribution because the pertinent literature provides little evidence or research highlights concerning teacher students’ social media use. Even more, the results of the present study may be a useful resource for university administrators, education policymakers and innovative teachers in universities – especially in developing countries and particularly Nigeria – when considering integration of modern techniques and technologies with university teaching and learning.

Acceptance of mobile banking in Islamic banks: evidence from modified UTAUT model

2019 ◽  
Vol 10 (1) ◽  
pp. 357-376 ◽  
Author(s):  
Syed Ali Raza ◽  
Nida Shah ◽  
Muhammad Ali
Keyword(s):  
Social Influence ◽  
Partial Least Square ◽  
Equation Modeling ◽  
Survey Method ◽  
Unique Contribution ◽  
Mobile Banking ◽  
Islamic Banks ◽  
Content Type ◽  
Utaut Model ◽  
Actual Usage

PurposeThe purpose of this study is to examine the factors which affect mobile banking (M-banking) acceptance in Islamic banks of Pakistan by using the modified unified theory of acceptance and use of technology (UTAUT) model. The performance expectancy, facilitating conditions, social influence, effort expectancy, perceived value, habit and hedonic motivation are taken as independent variables. Similarly, the intention to adopt M-banking is taken as the mediator, and actual usage is used as the dependent variable.Design/methodology/approachThe data are collected by using the survey method, and the five-point Likert scale is used for this purpose. The statistical techniques applied to the dataset were confirmatory factor analysis and partial least square structure equation modeling.FindingsThe empirical evidence shows that all the variables except for social influence have a significant positive effect on the intention which results in actual usage.Practical implicationsThis study will help the Islamic banks in boosting the M-banking growth and decision-makers in crafting those strategies that increase the M-banking acceptance.Originality/valueThis paper makes a unique contribution to the literature with reference to Pakistan, being a pioneering attempt to investigate the factors which affect M-banking acceptance in Islamic banks of Pakistan by using the modified UTAUT model.

Impact of capital enrichment on resource allocation efficiency in China’s manufacturing industry

2021 ◽  
pp. 1-17
Author(s):  
Lina Ma ◽  
Fengju Xu ◽  
Lihua Wang ◽  
Akther Taslima
Keyword(s):  
Resource Allocation ◽  
Manufacturing Industry ◽  
Evaluation Model ◽  
Development Trend ◽  
Inhibitory Effect ◽  
Capital Allocation ◽  
Curvilinear Relationship ◽  
Allocation Efficiency ◽  
Capital Allocation Efficiency ◽  
Resource Allocation Efficiency

Capital enrichment (CE) results from capital flows, which reflect the capital distribution among different regions and industries. This paper constructs the evaluation model of resource allocation efficiency from the perspective of capital and innovation resources. It expounds on CE’s theoretical mechanism by using the panel data from 2011 to 2018 for system GMM estimation. It finds that the manufacturing capital allocation efficiency (CAE) and innovation resource allocation efficiency (IRAE) show a volatile development trend. Both static and dynamic panel models show that there is a significant U-shaped curvilinear relationship between CE and CAE, CE and IRAE. CE’s inhibitory effect on CAE and IRAE decreases with the improvement of CE until it exceeds the critical value of 8.27 and 8.93. After that, its impact on CAE and IRAE changes from negative to positive.

scholarly journals Monopoly behavior of China’s manufacturing enterprises

2019 ◽  
Vol 2 (1) ◽  
pp. 157-179
Author(s):  
Guidong Wang
Keyword(s):  
Design Methodology ◽  
Manufacturing Industry ◽  
Rent Seeking ◽  
Content Type ◽  
Manufacturing Enterprises ◽  
Slow Decline ◽  
State Capital ◽  
The Government ◽  
Do So ◽  
Initial Jump

Purpose With the increase of state capital, corporate total factor productivity (TFP) has a tendency to jump up at first and then slowly decrease. Generally, no significant “productivity paradox” can be observed in China’s manufacturing industry. With the increase of export density, corporate TFP also shows a trend of initial jump growth and subsequent slow decline. This paper aims to discuss these issues. Design/methodology/approach Using the 1996–2013 China Industrial Enterprise Database, this paper studies the monopolistic behavior of Chinese manufacturing enterprises through the measurement of TFP and corporate monopoly power. Findings Results show that China’s manufacturing monopoly enterprises are generally innovation-oriented rather than rent-seeking. However, there are certain differences between diversified types of monopoly enterprises: the ones with state capital are more inclined to innovate than those without, whereas the ones with export delivery value are more inclined to seek rent than those without. Originality/value Therefore, the government should implement differentiated policies for diversified types of monopoly enterprises, and do so in a targeted manner fully reflecting the containment of rent-seeking and the encouragement of innovation.

Workplace ostracism and work-to-family conflict among female employees: moderating role of perceived organisational support

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Youngkeun Choi
Keyword(s):  
Organizational Support ◽  
Family Conflict ◽  
Perceived Organizational Support ◽  
Survey Method ◽  
Content Type ◽  
Female Employee ◽  
Workplace Ostracism ◽  
Perceived Organisational Support ◽  
Female Employees ◽  
The Relationship

Purpose Based on the conservation of resources theory, this study aims to develop and test the relationship between workplace ostracism and the work-to-family conflict of a female employee. And, it assumes that the direct link between workplace ostracism and the work-to-family conflict of a female employee is moderated by perceived organizational support. Design/methodology/approach For this, this study used a survey method and multiple regression analyses with multi-source data from 226 Korean female employees. Findings The results suggest the following. First, workplace ostracism was positively associated with the work-to-family conflict of a female employee. Second, there was a stronger positive relationship between workplace ostracism and work-to-family conflict for female employees with low as opposed to those with high levels of perceived organizational support. Originality/value To the best of author’s knowledge, this study is the first one to examine the moderating effect of perceived organizational support on the relationship between workplace ostracism and the work-to-family conflict of a female employee.

Customer satisfaction with sommelier services of upscale Chinese restaurants in Hong Kong

2019 ◽  
Vol 31 (4) ◽  
pp. 532-554 ◽  
Author(s):  
Tommy Lau ◽  
Man Lai Cheung ◽  
Guilherme D. Pires ◽  
Carol Chan
Keyword(s):  
Hong Kong ◽  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Loyalty ◽  
Positive Impact ◽  
Partial Least Square ◽  
Least Square ◽  
Survey Method ◽  
Content Type ◽  
The Impact

Purpose The abolishment of the wine tax in Hong Kong has led to increased wine consumption and increased demand for wine-related professionals, such as sommeliers. Yet the importance of sommeliers’ value-adding performance in the context of upscale Chinese restaurants has not been examined. To address this gap, the SERVQUAL framework is adopted to examine the influence of sommeliers’ service quality (SQ) on customer satisfaction (CS) and loyalty in the context of upscale Chinese restaurants in Hong Kong. Design/methodology/approach The survey method is used to collect data from 302 units of the population of interest, partial least square-structural equation modelling (PLS-SEM) is used to test the links between constructs. Findings Four of the seven dimensions of sommeliers’ service quality, namely, empathy, tangibles, credibility and assurance, have a significant positive impact on customer satisfaction and customer loyalty, whereas the impact of perceived value and responsiveness on customer satisfaction and customer loyalty is positive but only marginally significant. Reliability has a weak and non-significant impact on customer satisfaction and customer loyalty. Research limitations/implications Examining a small number of upscale Chinese restaurants in Hong Kong limits generalisation of the findings to other contexts. Replication of the research in different contexts will enhance generalizability. In terms of implications, the discussion highlights the importance of sommeliers’ service performance on customers’ SQ perceptions SQ, CS and loyalty, all of which are important variables for restaurateurs. Originality/value To the best of the authors’ knowledge, this is the first study of the influence of the quality of sommelier’s SQ on CS and loyalty in upscale Chinese restaurants in Hong Kong. Given the lack of attention to this service role in the literature, the study contributes theory from which further understanding can develop.

Employing needs-based funding formulae – some unavoidable tradeoffs

2017 ◽  
Vol 31 (7) ◽  
pp. 1092-1102
Author(s):  
Tal Gilead ◽  
Iris BenDavid-Hadar
Keyword(s):  
Decision Making ◽  
Resource Allocation ◽  
Design Methodology ◽  
Social Equity ◽  
School Resources ◽  
Content Type ◽  
Funding Formula ◽  
Policy Goals ◽  
Theoretical Investigations ◽  
Schooling System

Purpose The method by which the state allocates resources to its schooling system can serve as an important instrument for achieving desired improvements in levels of educational attainment, social equity and other social policy goals. In many school systems, the allocation of school resources is done according to a needs-based funding formula. The purpose of this paper is to provide a deeper understanding of some significant tradeoffs involved in employing needs-based funding formulae. Design/methodology/approach The paper is based on theoretical investigations of normative aspects involved in using needs-based funding formulae. Findings There are a number of underexplored complications and difficulties that arise from the use of needs-based funding formulae. Dealing with these involves significant tradeoffs that require taking normative decisions. Understanding these tradeoffs is important for improving the use of needs-based funding formulae. Originality/value The paper highlights three under-examined issues that emerge from the current use of needs-based funding formulae. These issues are: to what extent funding formulae should be responsive to social and economic needs? To what extent should funding formulae allow for the use of discretion in resource allocation? To what degree needs-based formulae funding should be linked to outcomes? By discussing these issues and the tradeoffs involved in them, the paper provides a deeper understanding of significant aspects stemming from the use of needs-based funding formulae. This, in turn, can serve as a basis for an improved and better informed process for decision making regarding the use of funding formulae.

Regulation and information asymmetry

2008 ◽  
Vol 16 (1) ◽  
pp. 59-76 ◽  
Author(s):  
Robyn McLaughlin ◽  
Assem Safieddine
Keyword(s):  
Information Asymmetry ◽  
Stock Returns ◽  
Operating Performance ◽  
Cost Benefit ◽  
Future Research ◽  
Information Asymmetries ◽  
Cross Sectional ◽  
Industrial Firms ◽  
Content Type ◽  
Regulated Utilities

PurposeThis paper seeks to examine the potential for regulation to reduce information asymmetries between firm insiders and outside investors.Design/methodology/approachExtensive prior research has established that there are substantial effects of information asymmetry in seasoned equity offers (SEOs). The paper tests for a mitigating effect of regulation on such information asymmetries by examining differences in long‐run operating performance, changes in that performance, and announcement‐period stock returns between unregulated industrial firms and regulated utilities that issue seasoned equity. The authors also segment the samples by firm size, since smaller firms are likely to have greater asymmetries.FindingsConsistent with regulated utility firms having lower levels of information asymmetry, they have superior changes in abnormal operating performance than industrial firms pre‐ to post‐issue and their announcement period returns are significantly less negative. These findings are most pronounced for the smallest firms, firms likely to have the greatest information asymmetries and where regulation could have its greatest effect.Research limitations/implicationsThe paper does not examine costs of regulation. Thus, future research could seek to measure the cost/benefit trade‐off of regulation in reducing information asymmetry. Also, future research could examine cross‐sectional differences between different industries and regulated utilities.Practical implicationsRegulation reduces information asymmetry. Thus, regulation or mandated disclosure may be appropriate in industries/markets where information asymmetry is severe.Originality/valueThis paper is the first to compare the operating performance of regulated and unregulated SEO firms.

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