The impact of inventory productivity on new venture survival

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yu Lin ◽  
Jiannan Wang ◽  
Yingjie Shi
Keyword(s):  
Financial Constraints ◽  
Failure Time ◽  
Performance Indicator ◽  
Marginal Effect ◽  
Industrial Firms ◽  
Content Type ◽  
Aft Model ◽  
Annual Survey ◽  
Inherent Nature ◽  
The Impact

PurposeThis paper explores the relationship between inventory productivity and the likelihood of venture survival and then examines how financial constraints moderate the inventory productivity–survival linkage.Design/methodology/approachAccelerated failure time (AFT) model is employed to study the link between inventory productivity and venture survival by using small- and medium-sized enterprise (SME) data from Chinese Annual Survey of Industrial Firms (CASIF) database over the period 1999–2007.FindingsThe paper demonstrates a converse U-curve relation between inventory productivity and venture survival. Additionally, financial constraints as the moderator weaken the marginal effect of inventory productivity on venture survival.Practical implicationsManagers should pay more attention to the important inventory performance indicator: inventory productivity. In the context of prominent financing difficulties, managers should be rapid to adjust the competitive strategy and optimize the internal production process according to the inherent nature of risks in a friction environment, and thus generate resources that enterprises cannot raise in the financial market.Originality/valueThis study may be the first to practically investigate the role of inventory productivity on venture survival and the moderating effect of financing constraints on this relationship. It adds to abundant articles as regards the interface between operation management and venture survival by exploring how financial constraints moderate the inventory productivity–survival linkage.

She-E-Os and innovation: do female CEOs influence firm innovation?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hafiz Mustansar Javaid ◽  
Qurat Ul Ain ◽  
Antonio Renzi
Keyword(s):  
Financial Constraints ◽  
Ordinary Least Squares ◽  
State Ownership ◽  
Corporate Environment ◽  
Firm Innovation ◽  
Content Type ◽  
Innovation Activities ◽  
Female Ceos ◽  
Innovation Output ◽  
The Impact

PurposeThis paper empirically investigates whether female CEOs (She-E-Os) have an effect on firm innovation among Chinese listed firms based on patent data. This study also delved further by looking at whether the internal corporate environment moderates the effect of female CEOs on innovation, that is, state ownership. Finally, this study investigates an additional test of financial constraints to examine whether financial constraints also moderate the impact of female CEOs on firm innovation.Design/methodology/approachThis study used the data of all A-share listed companies on the Shanghai and Shenzhen stock exchanges for the period from 2008 to 2017. The authors use ordinary least squares regression as a baseline methodology, along with firm-fixed effect, lagged measure of female CEOs, alternative measures of innovation, Heckman two-step model and negative binomial regression to check and control the possible issue of endogeneity.FindingsThe authors’ findings show that CEO gender plays an important role in producing higher levels of innovation output by improving the governance structure. However, female CEOs have no effect on state-owned enterprises' (SOEs) innovation activities, which suggests that the main goal of SOEs is achieving sociopolitical objectives. Furthermore, female CEOs' influence on innovation output is weaker in firms with financial constraints.Social implicationsThis study adds to the emerging global discussion on gender diversity. Many legislative bodies require a quota for women on corporate boards due to gender inequality. This study's findings reinforce such guidelines by emphasizing the economic benefits of including women in top management positions.Originality/valueThis study provides new insights by highlighting the role of female CEOs in increasing firms' innovation activities. Additionally, this study provides evidence on whether the internal corporate environment (state ownership and financial constraints) moderates female CEOs' effect on innovation.

Performance Evaluation of Distributional Models to Analyze Random Right-Censored Breast Cancer Failure Time Data

2020 ◽  
Author(s):  
Madiha Liaqat ◽  
Shahid Kamal ◽  
Florian Fischer ◽  
Waqas Fazil
Keyword(s):  
Breast Cancer ◽  
Failure Time ◽  
Strong Association ◽  
Breast Cancer Incidence ◽  
Disease Free Survival ◽  
Failure Time Data ◽  
Time Data ◽  
Cancer Data ◽  
Aft Model ◽  
The Impact

Abstract Background Censoring frequently occurs in disease data analysis. Typically, non-parametric and semi-parametric methods are used to deal with different types of censored data. Distributional random right-censored failure time models on breast cancer data are employed to empirically find out a best-fitted model. A large number of studies are available on complete and disease-free survival time, but very few have focused on time to death from breast cancer recurrence.Methods In this retrospective study, we investigated the impact of factors related to breast cancer on cause-specific failure time. We included data from women who suffered from breast cancer as a primary disease and observed recurrence. Several factors related to breast cancer incidence and prognosis are studied. A multivariate accelerated failure time (AFT) model is used to evaluate the combined effect of study factors on death due to breast cancer.Results Univariate Weibull model showed that all factors included in the model have a strong association with breast cancer failure time. These factors are age at diagnosis, age at recurrence, molecular markers (estrogen, progesterone receptors, and Her2.neu), tumor grade, chemotherapy, and radiotherapy. The best model for right-censored breast cancer failure time data was a Weibull AFT, which was chosen by a stepwise backward selection.Conclusions The AFT model is the best choice for the analysis of time to failure data when hazards are non-proportional, as it provides efficient estimates and an estimate of the median failure time ratios.

scholarly journals Institutional differences and integration difficulties

2018 ◽  
Vol 35 (5) ◽  
pp. 850-868 ◽  
Author(s):  
Kashef A. Majid ◽  
Hari Bapuji
Keyword(s):  
Product Quality ◽  
Failure Time ◽  
Accelerated Failure Time Model ◽  
Local Market ◽  
Product Recall ◽  
Content Type ◽  
Starting Point ◽  
Institutional Differences ◽  
The Usa ◽  
The Impact

PurposeThe purpose of this paper is to examine how the location of a firm’s headquarters and component sourcing impact a firm’s responsiveness in a product-harm crisis in local market.Design/methodology/approachThe authors collected data on 1,251 vehicle recalls from 12 manufacturers, six in the USA, three in Germany, and three in Japan. All of the recalls occurred in the USA between 2002 and 2010. The time the product was first released into the marketplace was used as the starting point while the time the recall was initiated (if at all) was used to record the probability of the product recall over time. Specifically, a survival analysis with an accelerated failure time model was employed to examine the speed with which a product is recalled. The authors examined the impact of foreign composition using information provided by the American Automobile Labeling Act, which lists the proportion of each vehicle that is composed of domestic parts (USA/Canada) and foreign parts. Organizational characteristics (i.e. size, market share, assets, net income, and reputation) and recall size (i.e. number of affected vehicles) that might have an effect on time to recall were controlled for.FindingsThe authors found that firms headquartered outside the local market would take longer to issue a product recall than firms that were headquartered in the local market. Firm headquartered outside the local market can reduce the time taken to recall by sourcing parts from the local marketplace, rather than from abroad. Interestingly, even local firms are affected by the location of component sourcing, such that they take longer to issue a recall if they sourced parts from abroad.Originality/valueResearch in international marketing has examined the benefits of integration to firms, but has not studied the risks of integration. By highlighting the challenges of managing institutional differences and integration difficulties, the authors show that location of headquarters and the location from where components are sourced have an effect on firm responsiveness in product-harm crises. Further, the authors build on the global supply chain management literature that has shown the effect of upstream activities (i.e. foreign production) on downstream activities (i.e. product quality). Specifically, the authors show that upstream activities can not only affect product quality, but also the ability of firms to respond to those product qualities in a timely fashion.

Decision-making criteria in tactical make-or-buy issues: an empirical analysis

2015 ◽  
Vol 10 (1) ◽  
pp. 2-20 ◽  
Author(s):  
Socrates John Moschuris
Keyword(s):  
Decision Making ◽  
Cost Savings ◽  
Industrial Firms ◽  
Content Type ◽  
Independent Variables ◽  
Stratified Sample ◽  
Return Envelope ◽  
The Impact ◽  
The Relationship ◽  
Decision Making Criteria

Purpose – The purpose of this paper is to seek to contribute to the assessment of the impact of a number of decision-making criteria in resolving tactical make-or-buy issues in enterprises operating in Greece. Moreover, it sheds light on the relationship between the impact of each criterion and a number of independent variables. Design/methodology/approach – Initially, depth interviews were made with purchasing managers in ten industrial firms operating in Greece. The findings of these interviews and the review of the pertinent literature provided the basis for the questionnaire design. Then, a copy of the questionnaire and a prepaid self-addressed return envelope were mailed to a stratified sample of 300 industrial firms operating in Greece. By the end of this process, 85 questionnaires were received, representing a 28.3 percent response rate. Findings – Cost and quality appear to be the criteria with the most impact, which indicates that companies usually resolve tactical make-or-buy issues in order to achieve short-term cost savings or operational advantage. The emphasis placed upon the other criteria tends to vary with the situation under which the particular make-or-buy issue is resolved. Originality/value – It develops a more precise assessment of the impact of each make-or-buy decision-making criterion and investigates the relationship between this impact and a number of independent variables.

Pure or ambidextrous strategy? A study of responsive and proactive market orientations in industrial firms

2020 ◽  
Vol 35 (6) ◽  
pp. 1001-1010 ◽  
Author(s):  
Yejing Wang ◽  
Haili Zhang ◽  
Michael Song
Keyword(s):  
Pure Strategy ◽  
Theoretical Understanding ◽  
Industrial Firms ◽  
Competitive Intensity ◽  
Content Type ◽  
Course Of Action ◽  
Industrial Markets ◽  
The Impact ◽  
Moderating Role

Purpose The purpose of this study is to investigate the environmental conditions (i.e. competitive intensity) under which a pure strategy or an ambidextrous strategy of implementing responsive market orientations (RMOs) and/or proactive market orientations (PMOs) is more advantageous for firm’s performance. Design/methodology/approach Drawing upon the market orientation (MO) and strategy literatures, the authors test the study’s model empirically using a sample of 308 US-based firms operating in industrial markets. All measurement items are taken from the widely used maturity scale which has been confirmed in the literature. Findings The empirical results suggest that when the competitive intensity is high, pursuing a purity strategy of RMO while decreasing PMO is the best course of action. On the other hand, balancing between RMO and PMO (implementing a strategy of ambidexterity) can increase firm’s performance in a low competitive intensity environment. Research limitations/implications This study aims to contribute to the existing MO literature in several ways: first, this study advances the MO literature by emphasizing the moderating role of competitive intensity on the effects of different MO strategies (purity or ambidextrous MO strategy); second, this study focuses on the firms operating in industrial markets and informs managers on how to adopt RMO and PMO under different level of competitive intensity; third, this study is the extended research of the prior study published in this journal (Wang et al., 2013), which examined the environmental antecedents of adopting RMO and PMO. Practical implications First, firms operating in industrial markets should increase RMO, while at the same time decrease PMO, in a highly competitive intensity environment. Second, companies should pursue both RMO and PMO at the same time in a low competitive intensity environment. Balancing between RMO and PMO can improve firms’ performance in a low competitive intensity environment. Originality/value This study contributes to the industrial business and marketing literature by sharpening the theoretical understanding of the impact of RMOs and PMOs on firm’s performance. It also offers practical insights to managers of industrial firms on when to adopt RMOs and/or PMOs under different levels of competitive intensity.

Farmer’s adoption tendency towards drought shock, risk-taking networks and modern irrigation technology: evidence from Zhangye, Gansu, PRC

2020 ◽  
Vol 12 (4) ◽  
pp. 431-448
Author(s):  
Yongfeng Tan ◽  
Lu Qian ◽  
Apurbo Sarkar ◽  
Zhanar Nurgazina ◽  
Uzair Ali
Keyword(s):  
Risk Taking ◽  
Arable Land ◽  
Probit Model ◽  
Gansu Province ◽  
Bank Loans ◽  
Marginal Effect ◽  
Content Type ◽  
Drought Impact ◽  
Irrigation Technology ◽  
The Impact

Purpose The purpose of this paper is to measure Farmer’s adoption tendency towards drought shock, risk-taking networks and modern irrigation technology. Design/methodology/approach Based on this assumption, this paper evaluated the data gathered from 498 household surveys of Zhangye, Gansu province, PRC, by using the binary probit model. First, the empirical data was analyzed for evaluating the impact of drought shock and risk-taking tendencies on the adoption of modern irrigation technology by farmers. Second, the authors introduced informal risk-bearing networks with formal risks. Final, based on the empirical results, the sustainability test, along with the marginal effect analysis and the degree of impact was carried out. Findings The results show that the drought shock has a significantly deferent effect on the modern irrigation technology of the farmers. The probability of using technology for each level of drought loss is reduced by 15.02%. The risk-taking network has a significant role in promoting the modern irrigation technology of farmers. The probability of adoption for each additional unit of rural household labor security supply, the likelihood of adoption by farmers increased 23.11%, the probability of approval for each level of relative support, and neighborhood assistance by farmers increased by 13.11% and 17.88% respectively. This study further revealed that insurance purchases enabled farmers to adopt new irrigation technology with the probability increased by 24.99%; easily available bank loans increased the probability of farmers using irrigation technology by 31.89%. From the perspective of interactions between farmers, the risk-taking network can alleviate the inhibitory effect of drought impact towards the adoption of irrigation technology. Among the control variables, the number of years of education, the age of farming, the degree of arable land, the distance from home to the market, and the price of water all has significant effects on the adoption of modern irrigation technology by farmers. Originality/value The novelty of the study is that it illustrated the interactive influence of drought shock and risk-taking networks on the farmer’s adoption tendencies of modern irrigation technologies, the inner relationship among drought impact, the risk-taking network and the farmer’s adoption behavior and provide an interactive relationship between the formal risk-taking network and the non-risk-taking network in farmer’s technology adoption.

Dynamic inference of healthcare expenditure on economic growth in Sub-Saharan Africa: a dynamic heterogenous panel data analysis

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Idris Abdullahi Abdulqadir ◽  
Bello Malam Sa'idu ◽  
Ibrahim Muhammad Adam ◽  
Fatima Binta Haruna ◽  
Mustapha Adamu Zubairu ◽  
...  
Keyword(s):  
Economic Growth ◽  
Healthcare Expenditure ◽  
Health Sector ◽  
Sub Saharan Africa ◽  
Marginal Effect ◽  
Health Crisis ◽  
Content Type ◽  
Interaction Terms ◽  
Sub Saharan ◽  
The Impact

PurposeThis article investigates the dynamic implication of healthcare expenditure on economic growth in the selected ten Sub-Saharan African countries over the period 2000–2018.Design/methodology/approachThe study methodology included dynamic heterogenous panel, using mean group and pooled mean group estimators. The investigation of the healthcare expenditure and economic growth nexus was achieved while controlling the effects of investment, savings, labor force and life expectancy via interaction terms.FindingsThe results from linear healthcare expenditure have a significant positive impact on economic growth, while the nonlinear estimates through the interaction terms between healthcare expenditure and investment have a negative statistically significant impact on growth. The marginal effect of healthcare expenditure evaluated at the minimum and maximum level of investment is positive, suggesting the impact of health expenditure on growth does not vary with the level of investments. This result responds to the primary objective of the article.Research limitations/implicationsIn policy terms, the impact of investment on healthcare is essential to addressing future health crises. The impact of coronavirus disease 2019 (COVID-19) can never be separated from the shortages or low prioritization of health against other sectors of the economy. The article also provides an insight to policymakers on the demand for policy reform that will boost and make the health sector attractive to both domestic and foreign direct investment.Originality/valueGiven the vulnerability of SSA to the health crisis, there are limited studies to examine this phenomenon and first to address the needed investment priorities to the health sector infrastructure in SSA.

Financial constraints, bank concentration and SMEs: evidence from Pakistan

2015 ◽  
Vol 32 (4) ◽  
pp. 503-524 ◽  
Author(s):  
Abubakr Saeed ◽  
Muhammad Sameer
Keyword(s):  
Financial Constraints ◽  
Market Competition ◽  
Generalized Method Of Moments ◽  
Dynamic Panel Data ◽  
Dynamic Panel ◽  
Financial Reforms ◽  
Content Type ◽  
Financial Firms ◽  
The Impact ◽  
Bank Concentration

Purpose – This paper aims to empirically investigate the impact of bank market concentration of financial constraints on firm investment. Design/methodology/approach – This analysis is based on cross-industries panel of 368 listed Pakistani non-financial firms over the period of 2001-2009. Further, the Generalized Method of Moments estimation technique has been used to estimate the dynamic panel data model. Findings – By applying a dynamic panel analysis, it was found that small- and medium-sized enterprises (SMEs) are financially constrained in the credit market. The main finding indicates that reduction in bank concentration eases financing constraints, and this effect is more pronounced for SMEs. In addition, while testing the firm opacity in this context, results reveal that opaque firms are more financially constrained, and bank market competition is less favourable to the firms with greater opacity. Originality/value – The results, first, assess the efficacy of ongoing financial reforms in Pakistan and, second, offer implications for other economies that exhibit financial development similar to that of Pakistan.

Condition monitoring of aluminium electrolytic capacitors using accelerated life testing

2018 ◽  
Vol 35 (8) ◽  
pp. 1671-1682 ◽  
Author(s):  
Cherry Bhargava ◽  
Vijay Kumar Banga ◽  
Yaduvir Singh
Keyword(s):  
Failure Time ◽  
Accelerated Life Testing ◽  
New Method ◽  
Equivalent Series Resistance ◽  
Life Testing ◽  
Content Type ◽  
Electrolytic Capacitors ◽  
Accelerated Life ◽  
Accuracy Level ◽  
The Impact

Purpose An electrolytic capacitor is extensively used as filtering devices in various power supplies and audio amplifiers. Low cost and higher value of capacitance make it more well known. As environmental stress and electrical parameters increase, capacitors degrade on accelerated pace. The paper aims to discuss these issues. Design/methodology/approach This paper focusses on the impact of thermal stress on electrolytic capacitors using accelerated life testing technique. The failure time was calculated based on the change in capacitance, equivalent series resistance and weight loss. The experimental results are compared with the outcome of already available life monitoring methods, and the accuracy level of these methods is accessed. Findings The results of all the three methods are having maximum 55 per cent accuracy. To enhance the accuracy level of theoretical methods, modifications have been suggested. A new method has been proposed, whose outcome is 92 per cent accurate with respect to experimentally obtained outcomes. Practical implications To assess the capacitor’s reliability using an experimental and modified theoretical method, failure prediction can be done before it actually fails. Originality/value A new method has been proposed to access the lifetime of capacitor.

Does the threshold matter? The impact of the monitoring activity on non-performing loans

2019 ◽  
Vol 45 (2) ◽  
pp. 190-221 ◽  
Author(s):  
Domenico Piatti ◽  
Peter Cincinelli
Keyword(s):  
Early Warning ◽  
Performance Indicator ◽  
Positive Impact ◽  
Control Strategies ◽  
Threshold Value ◽  
Threshold Level ◽  
Content Type ◽  
The Impact ◽  
Monitoring Activity

PurposeThe purpose of this paper is to investigate whether the quality of the credit process is sensitive to reaching a particular threshold level of non-performing loans (NPLs) and, more importantly, whether higher NPLs ratios could make the monitoring activity ineffective.Design/methodology/approachThe empirical design is composed of two steps: in the first step, the authors introduce a monitoring performance indicator (MPI) of the credit process by combining the non-parametric technique Data Envelopment Analysis with some financial ratios adopted as input and output variables. As second step, the authors apply a threshold panel regression model to a sample of 298 Italian banks, over the time period 2006–2014, and the authors investigate whether the quality of the credit process is sensitive to reaching a particular threshold level of NPLs.FindingsThis paper finds that, first, when the NPLs ratio remains below the threshold value estimated endogenously, an increase in the quality of monitoring has a positive impact on the NPLs ratio. Second, if the NPLs ratio exceeds the estimated threshold, the relationship between the NPLs ratio and quality of monitoring assumes a positive value and is statistically significant.Research limitations/implicationsDue to the lack of data, the investigation of NPLs in the Italian industry across loan types combined with the monitoring effort by banks management was not possible. The authors plan to investigate this topic in future studies.Practical implicationsThe identification of the threshold has a double operational valence. The first regards the Supervisory Authority, the threshold approach could be used as an early warning in order to introduce active control strategies based on the additional information requested or by on-site inspections. The second implication is highlighted in relation to the individual banks, the monitoring of credit control quality, if objective and comparable, could facilitate the emergence of best practices among banks.Social implicationsA high NPLs ratio requires greater loan provisions, which reduces capital resources available for lending, and dents bank profitability. Moreover, structural weaknesses on banks’ balance sheets still persist particularly in relation to the inadequate internal governance structures. This means that bank management must able to recognise in advance early warning signals by providing prudent measurement together with an in-depth valuation of loans portfolio.Originality/valueThe originality of the paper is twofold: the authors introduce a new proxy of credit monitoring, called MPI; the authors provide an empirical proof of the Diamond’s (1991) economic intuition: for riskier borrowers, the monitoring activity is an inappropriate instrument depending on the bad reputational quality of borrowers.

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