Drivers of firms’ growth: a case study of software firms in Islamabad/Rawalpindi regions

2015 ◽  
Vol 34 (8) ◽  
pp. 901-921 ◽  
Author(s):  
Naqeeb Ur Rehman
Keyword(s):  
Knowledge Management ◽  
Absorptive Capacity ◽  
Productivity Growth ◽  
Labour Productivity ◽  
Sunk Costs ◽  
Access To Finance ◽  
Content Type ◽  
Knowledge Based ◽  
Labour Productivity Growth ◽  
Software Firms

Purpose – The purpose of this paper is to identify the drivers of firm’s growth such as research and development (R & D), absorptive capacity, knowledge management, organisation culture, access to finance, internationalisation and so forth. As far as the contribution is concerned, two objectives have been achieved from this empirical paper. First, this paper fills an important gap in the literature by determining the drivers of firm’s growth. Second, this study analysed the Pakistani software industry at micro level by investigating the firm’s knowledge-based assets and their significant association with labour productivity growth. Based on a face to face interview of 69 software firms, this study found that firm size, access to finance, internationalisation (exporting and outward foreign direct investment), business improvement methods and knowledge management have a positive impact on the firm’s labour productivity growth. In comparison, firm undertaking R & D and absorptive capacity showed negative association with labour productivity growth. This study implies that these software firms have low investment in knowledge-based assets. In summary, this empirical study suggests that high sunk costs, low investment in knowledge-based assets and shortage of skills generally affect the labour productivity of these software firms. Design/methodology/approach – Survey analysis, using cross section data analysis. Findings – This study found that firm size, access to finance, internationalisation (exporting and outward FDI), business improvement methods and knowledge management have a positive impact on the firm’s labour productivity growth. In comparison, firm undertaking R & D and absorptive capacity showed negative association with labour productivity growth. In summary, this empirical study suggests that high sunk costs, low investment in knowledge-based assets and shortage of skills generally affect the labour productivity of these software firms. Research limitations/implications – Additionally, suggestions for future research would be to investigate the relationship between drivers of firm growth and innovation performance. The survey analysis could be extended to other parts of country such as Karachi and Lahore for resolving causality. Originality/value – First, this paper fills an important gap in the literature by determining the drivers of firm’s growth. Second, this study analysed the Pakistani software industry at micro level by investigating the firm’s knowledge-based assets and their significant association with labour productivity growth.

Revisiting intangible capital and labour productivity growth, 2000–2015

2020 ◽  
Vol 21 (5) ◽  
pp. 671-690
Author(s):  
Felix Roth
Keyword(s):  
Productivity Growth ◽  
Capital Investment ◽  
Labour Productivity ◽  
Strong Relationship ◽  
Economic Recovery ◽  
Intangible Capital ◽  
Content Type ◽  
Labour Productivity Growth ◽  
Econometric Evidence ◽  
European Economies

PurposeThis paper aims to revisit the relationship between intangible capital and labour productivity growth using the largest, up-to-date macro database (2000–2015) available to corroborate the econometric findings of earlier work and to generate novel econometric evidence by accounting for times of crisis (2008–2013) and economic recovery (2014–2015).Design/methodology/approachTo achieve these aims, this paper employs a cross-country growth accounting econometric estimation approach using the largest, up-to-date database available encompassing 16 EU countries over the period 2000–2015. The paper accounts for times of crisis (2008–2013) and of economic recovery (2014–2015). It separately estimates the contribution of three distinct dimensions of intangible capital: (1) computerized information, (2) innovative property and (3) economic competencies.FindingsFirst, when accounting for intangibles, the paper finds that these intangibles have become the dominant source of labour productivity growth in the EU, explaining up to 66 percent of growth. Second, when accounting for times of crisis (2008–2013), in contrast to tangible capital, the paper detects a solid positive relationship between intangibles and labour productivity growth. Third, when accounting for the economic recovery (2014–2015), the paper finds a highly significant and remarkably strong relationship between intangible capital and labour productivity growth.Originality/valueThis paper corroborates the importance of intangibles for labour productivity growth and thereby underlines the necessity to incorporate intangibles into today's national accounting frameworks in order to correctly depict the levels of capital investment being made in European economies. These levels are significantly higher than those currently reflected in the official statistics.

Productivity Growth, Structural Change and Informality: The Case of Russia

2015 ◽  
pp. 30-61 ◽  
Author(s):  
I. Voskoboynikov ◽  
V. Gimpelson
Keyword(s):  
Structural Change ◽  
Productivity Growth ◽  
Labour Productivity ◽  
Alternative Methods ◽  
Industry Effects ◽  
Labour Productivity Growth ◽  
Russian Economy ◽  
Negative Effect ◽  
Total Labour

This study considers the influence of structural change on aggregate labour productivity growth of the Russian economy. The term "structural change" refers to labour reallocation both between industries and between formal and informal segments within an industry. Using Russia KLEMS and official Rosstat data we decompose aggregate labour productivity growth into intra-industry (within) and between industry effects with four alternative methods of the shift-share analysis. All methods provide consistent results and demonstrate that total labour reallocation has been growth enhancing though the informality expansion has had a negative effect. As our study suggests, it is caused by growing variation in productivity levels across industries.

Improving management as a way to increase labour productivity

Upravlenie ◽  
2020 ◽  
Vol 8 (4) ◽  
pp. 24-30
Author(s):  
A. O. Ivanov
Keyword(s):  
Productivity Growth ◽  
Labour Productivity ◽  
Production Costs ◽  
Managerial Practices ◽  
Industrial Enterprises ◽  
Labour Productivity Growth ◽  
Period 2 ◽  
Main Factors ◽  
The Moment

The article gives an overview, performs analysis and classification of successful managerial practices applied at Russian industrial enterprises in the framework of the national project “Labour productivity and employment support”. The paper emphasizes the main factors of labour productivity growth as follows: investment policy, growth of human capital, and efficient use of managerial capital of enterprise. In order to determine the need of enterprises to increase labour productivity, the author proposes four universal criteria that signal the existing inefficiency even before the loss of competitiveness: 1) the dynamics of labour productivity in the company is not positive during a given period; 2) the company is behind competitors by labour productivity indicator; 3) the company is behind competitors by labour productivity growth rates indicator for a certain period; 4) unit production costs rise. These criteria allow you to take into account the situation both within the enterprise and in comparison with other enterprises. Each criteria can be considered separately or in combination with the others, applied to enterprises of different industries, specialization, and scale. Criteria indicate the direction of development in which the company is experiencing difficulties at the moment, or may experience them in the future.

scholarly journals Services Sector in Lithuania: Labour Productivity as a Factor of Growth

Ekonomika ◽  
2008 ◽  
Vol 81 ◽  
Author(s):  
Jolanta Žemgulienė
Keyword(s):  
Growth Rate ◽  
Comparative Analysis ◽  
Productivity Growth ◽  
Labour Productivity ◽  
Value Added ◽  
Service Industries ◽  
Services Sector ◽  
Labour Productivity Growth ◽  
Empirical Regularities ◽  
The Relationship

This paper examines the tendencies of Lithuanian services sector’s value added and labour productivity during 1995-2006. Comparative analysis of the average annual labour productivity growth in manufacturing and service industries reveals arguments supporting the W. Baumol’s consideration that there can be sporadic productivity increases in nonprogressive sectors. During 1995-2000, labour productivity growth in services exceeded productivity growth in manufacturing. The paper offers an interpretation of the Verdoom law for empirical regularities of the relationship between the cross-sectorial labour productivity growth rate and the value added growth rate.

Impact of knowledge sharing and absorptive capacity on project performance: the moderating role of social processes

2018 ◽  
Vol 22 (2) ◽  
pp. 453-477 ◽  
Author(s):  
Imran Ali ◽  
Ata Ul Musawir ◽  
Murad Ali
Keyword(s):  
Knowledge Management ◽  
Knowledge Sharing ◽  
Absorptive Capacity ◽  
Project Performance ◽  
Social Processes ◽  
Content Type ◽  
Proposed Model ◽  
Knowledge Governance ◽  
Moderating Role

Purpose This study aims to propose an integrated model to examine the impact of knowledge governance, knowledge sharing and absorptive capacity (ACAP) on project performance in the context of project-based organizations (PBOs). This study also examines the moderating role of social processes on the relationships among these variables. Design/methodology/approach To test the proposed model, cross-sectional data were collected regarding projects from 133 PBOs in Pakistan’s information technology/software industry. The data were analyzed using the partial least squares – structural equation modeling (PLS-SEM) method and PRCOESS tool. Finally, this study also uses causal asymmetry analysis to check asymmetric relationship in the key constructs. Findings The results generally support the proposed model. Knowledge governance and knowledge sharing are important antecedents for improving the ACAP of the project, which in turn significantly improves project performance. Additionally, social processes positively moderate the relationship between knowledge sharing and ACAP, as well as between ACAP and project performance. Research limitations/implications The findings suggest that PBOs should invest in developing a knowledge governance system that guides and stimulates knowledge sharing within and between projects. This would boost the ACAP of projects and lead to superior project performance. Originality/value This study addresses the important issue of knowledge management in IT/software projects. It proposes a unique model that integrates the key constructs of knowledge management and describes their effect on project performance.

Innovation

2012 ◽  
pp. 200-229
Keyword(s):  
Knowledge Management ◽  
Supply Chain ◽  
Absorptive Capacity ◽  
Open Innovation ◽  
Theory And Practice ◽  
Opinion Leaders ◽  
Knowledge Based ◽  
Pros And Cons ◽  
Communities Of Innovation ◽  
Successful Innovation

Organizations globally must expect severe competition for at least the next decade, and there is unanimous agreement that sustainable innovation is the quintessential challenge for all organizations – without it organizations must flounder and perish. In this chapter, theory and practice are explored to specify the vital underpinnings of successful innovation, including the critically important organizational property of absorptive capacity which is largely based on leadership, participative and open culture, and knowledge management. Strategic topics such as the knowledge based view, open innovation, and the pros and cons of ‘innovation’ orientation and ‘imitation’ orientation are discussed, together with the importance of supply chain innovation. Details of the practical role Communities of Innovation (CoInv) serve are clarified, together with explanations of why identifying and leveraging the influence of innovation champions and opinion leaders is essential to success. The concepts of Learning-to-Innovate and Innovating-to-Learn are also discussed.

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