Barriers to growth of SMEs in Western Balkan countries

2019 ◽  
Vol 38 (1) ◽  
pp. 2-24 ◽  
Author(s):  
Naqeeb Ur Rehman ◽  
Arjona Çela ◽  
Fatbardha Morina ◽  
Kriselda Sulçaj Gura
Keyword(s):  
Factor Analysis ◽  
Panel Data ◽  
New Technologies ◽  
Business Environment ◽  
Least Square ◽  
Policy Implications ◽  
Entrepreneurial Activity ◽  
Western Balkans ◽  
Cross Sectional ◽  
Content Type

PurposeWestern Balkans countries (WBCs) have a great potential for growth and among the main focuses of entrepreneurial activity is small- and medium-sized enterprises (SME) sector. Moreover, SMEs are believed to contribute in the economy by stimulating employment, increasing production, transferring new technologies and so forth. Due to this crucial importance the purpose of this paper is to analyze the barriers that hinder labor productivity (LP) of SMEs in WBCs.Design/methodology/approachThe research method employed to discover solution to this research problem is quantitative analysis by using survey data of World Bank. Research methodology applied in this paper found it correctly to use cross-sectional data and conducts a factor analysis and ordinary least square (OLS) regression as the best procedure for this type of data.FindingsThe results show variability for different countries access to finance, tax rates, tax administration, corruption, inadequately educated labor force, competition in informal sector and political instability appear to be some of the main obstacles that are negatively affecting LP of SMEs in WBC.Research limitations/implicationsAlthough this study is the first to analyze all the possible obstacles for the six WBCs using factor analysis better results could be obtained with larger samples and panel data.Practical implicationsThe policy implications of this study suggest that in order to boost productivity of these firms there must be a reduction of the barriers and improvement of business environment. Although, this study is the first to analyze all the possible obstacles for the six WBCs using factor analysis and contributes as insight to policy makers, better results could be obtained with larger samples using panel data.Originality/valueDifferently from previous studies this work uses explanatory factor analysis and method OLS to estimate regressions for all barriers in each country of Western Balkan region.

A fresh look at calorie-income elasticities in China

2016 ◽  
Vol 8 (1) ◽  
pp. 55-80 ◽  
Author(s):  
Peng Nie ◽  
Alfonso Sousa-Poza
Keyword(s):  
Panel Data ◽  
Food Insecurity ◽  
Design Methodology ◽  
Policy Implications ◽  
Calorie Intake ◽  
Nutrition Survey ◽  
Cross Sectional ◽  
Content Type ◽  
Income Elasticities ◽  
Health And Nutrition

Purpose – The purpose of this paper is to use data from the 1991 to 2009 China Health and Nutrition Survey (CHNS) to analyze how income in China is related to calorie intake. Design/methodology/approach – The paper employs a variety of parametric, nonparametric, and semiparametric methods for cross-sectional and panel data, and estimates calorie-income elasticities for adults aged 18-60. Findings – The calorie-income elasticities are generally small, ranging from −0.031 to 0.022. In addition, the results show no clear nonlinearity, regardless of whether parametric, nonparametric, or semiparametric approaches are used. Originality/value – Using a wealth of estimation techniques, including parametric, nonparametric, and semiparametric approaches, this paper addresses some of the main methodological challenges encountered in estimating calorie-income elasticities. The magnitudes of calorie-income elasticities have policy implications especially with regards to the effectiveness of income-mediated policies aimed at combating food insecurity in China.

Intellectual capital as enhancer of product novelty

2017 ◽  
Vol 18 (2) ◽  
pp. 419-436 ◽  
Author(s):  
Mariia Molodchik ◽  
Carlos Maria Jardon
Keyword(s):  
Intellectual Capital ◽  
Product Innovation ◽  
Capital Accumulation ◽  
Business Environment ◽  
Policy Implications ◽  
International Level ◽  
Cross Sectional ◽  
Data Set ◽  
Content Type ◽  
Innovation Dynamics

Purpose The purpose of this paper is to theoretically justify the link between the endowment of intellectual capital (IC) and product novelty, and to find empirical evidence for such a link for small and medium-sized enterprises (SMEs) in the Russian business environment. Design/methodology/approach The study implements an intellectual capital-based view and the concept of novelty proposed by Schumpeter to highlight the crucial role of knowledge for transition to a higher level of competition. Drawing on a literature review, the authors determine three specific components of IC: foreign human capital, information and communication technology (ICT) capital developed at an international level and cooperation with foreign partners in order to pinpoint a premier position on the next level of the market. For empirical testing of the proposed model, a data set comprising more than 1,400 Russian manufacturing SMEs was used. Estimations were performed with the help of a principal component analysis and ordinal logistic regression. Findings The findings reveal that higher (IC) endowment promotes the level of product novelty. For Russian manufacturing SMEs, the most important is R&D capital. At the same time, ICT capital developed at an international level and cooperation with foreign partners contribute significantly to the probability of transition to a new market level. Research limitations/implications The study employs cross-sectional data that restrict the analysis of innovation dynamics. Practical implications The study appears to have policy implications for the development of governmental programmes for Russian SMEs such as the creation of IC awareness, training for IC management, special programmes for R&D support and ICT capital accumulation. Originality/value This paper proposes a new approach for investigating the “knowledge-innovation” link, shifting the focus from a general analysis of product innovation to a level of novelty for product innovation. This is the first empirical study of the relationship between IC components and the level of product novelty for SMEs in the context of the Russian business environment.

Does bad company corrupt good character? A spatial econometric analysis of oil resource management in Africa

2017 ◽  
Vol 11 (3) ◽  
pp. 480-502
Author(s):  
Ishmael Ackah
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Oil Production ◽  
Business Environment ◽  
Spatial Proximity ◽  
Spatial Effects ◽  
Cross Sectional ◽  
Content Type ◽  
Neighbouring Country ◽  
Oil Curse

Purpose A widely held belief before the 1990s – referred to as the oil-blessing hypothesis – was that oil discovery and production should promote economic growth and development and lead to poverty reduction. However, the so-called ‘oil-curse’ hypothesis, postulated by Sachs and Warner in 1995, challenged this belief, thus provoking a heated debate on the theme. The oil-curse hypothesis has been traditionally tested by means of cross-sectional and panel-data models. The author goes beyond these traditional methods to test whether the presence of spatial effects can alter the hypothesis in oil-producing African countries. In particular, this paper aims to investigate the effects on economic growth of oil production, oil resources and oil revenues along with the quality of democratic institutions, investment and openness to trade. Design/methodology/approach A Durbin spatial model, a cross-sectional model and panel-data model are used. Findings First, the validity of the spatial Durbin model is vindicated. Second, consistently with the oil-curse hypothesis, oil production, resources, rent and revenues have a negative and generally significant effect on economic growth. This result is robust for across the panel data, spatial Durbin and spatial autoregressive models and for different measures of spatial proximity between countries. Third, the author finds that the extent to which the business environment is perceived as benign for investment has a positive and marginally effect on economic growth. Additionally, economic growth of a country is further stimulated by a spatial proximity of a neighbouring country if the neighbouring country has created strong institutions protecting investments. Fourth, openness to international trade has a positive and marginally significant effect on economic growth. Originality/value This paper examines theories and studies that have been done before. However, as the related literature on the growth–resource abundance nexus has rarely examined spatial effects, this study seeks to test jointly the spatial effect and the neighbouring effect on the oil curse hypothesis.

Corporate governance practices and capital structure decisions: the moderating effect of gender diversity

2020 ◽  
Vol 20 (5) ◽  
pp. 939-964
Author(s):  
Mohammad A.A Zaid ◽  
Man Wang ◽  
Sara T.F. Abuhijleh ◽  
Ayman Issa ◽  
Mohammed W.A. Saleh ◽  
...  
Keyword(s):  
Corporate Governance ◽  
Panel Data ◽  
Capital Structure ◽  
Generalized Method Of Moments ◽  
Gender Diversity ◽  
Business Environment ◽  
Board Structure ◽  
Content Type ◽  
Financing Decisions ◽  
The Impact

Purpose Motivated by the agency theory, this study aims to empirically examine the nexus between board attributes and a firm’s financing decisions of non-financial listed firms in Palestine and how the previous relationship is moderated and shaped by the level of gender diversity. Design/methodology/approach Multiple regression analysis on a panel data was used. Further, we applied three different approaches of static panel data “pooled OLS, fixed effect and random effect.” Fixed-effects estimator was selected as the optimal and most appropriate model. In addition, to control for the potential endogeneity problem and to profoundly analyze the study data, the authors perform the one-step system generalized method of moments (GMM) estimator. Dynamic panel GMM specification was superior in generating robust findings. Findings The findings clearly unveil that all explanatory variables in the study model have a significant influence on the firm’s financing decisions. Moreover, the results report that the impact of board size and board independence are more positive under conditions of a high level of gender diversity, whereas the influence of CEO duality on the firm’s leverage level turned from negative to positive. In a nutshell, gender diversity moderates the effect of board structure on a firm’s financing decisions. Research limitations/implications This study was restricted to one institutional context (Palestine); therefore, the results reflect the attributes of the Palestinian business environment. In this vein, it is possible to generate different findings in other countries, particularly in developed markets. Practical implications The findings of this study can draw responsible parties and policymakers’ attention in developing countries to introduce and contextualize new mechanisms that can lead to better monitoring process and help firms in attracting better resources and establishing an optimal capital structure. For instance, entities should mandate a minimum quota for the proportion of women incorporation in boardrooms. Originality/value This study provides empirical evidence on the moderating role of gender diversity on the effect of board structure on firm’s financing decisions, something that was predominantly neglected by the earlier studies and has not yet examined by ancestors. Thereby, to protrude nuanced understanding of this novel and unprecedented idea, this study thoroughly bridges this research gap and contributes practically and theoretically to the existing corporate governance–capital structure literature.

The dark side of hyperconnectivity in the accounting profession

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sari Mansour ◽  
Dima Mohanna ◽  
Diane-Gabrielle Tremblay
Keyword(s):  
Structural Equation ◽  
New Technologies ◽  
Working Hours ◽  
Vice President ◽  
Mediation Effect ◽  
Dark Side ◽  
Cross Sectional ◽  
Bootstrap Analysis ◽  
Content Type ◽  
Work Intensification

Purpose This paper aims to understand the antecedents and consequences of using the smartphone and/or tablet by professional accountants for business purposes outside of regular working hours. More specifically, this paper aims to test the direct relationships between, on the one hand, work intensification and the use of smartphone and/or tablet and work-family conflict (WFC) and on the other hand, the indirect effect of the use of smartphones and/or tablet between work intensification and WFC. Design/methodology/approach This research was based on a cross-sectional design and quantitative method. The structural equation method was used to test the direct effect of work intensification on smartphone and/or tablet use and WFC. As for the mediation effect of smartphone and/or tablet use between work intensification and WFC, it was tested by the method of indirect effects based on a bootstrap analysis. The statistical treatments were carried out with the AMOS software v.24. Findings The results of the study indicate that work intensification increases the use of smartphones and/or tablets outside of working hours and that this variable increases the intensification of WFC through a process of mediation. Research limitations/implications This research does not take into account the moderating variables that can intervene in the model. For example, the duration of use of the smartphone, the origin of emails or messages (supervisors, customers and colleagues), the types of tasks performed outside working hours and the period of use (evening, weekend and holidays) could have significant effects on the different relationships tested in the model. Furthermore, we had all the positions held by the respondents (for example, chief financial officer, director, vice-president, partners, senior managers, management accountant, auditor, agents, analysts, accountants) grouped into one category and this may have an impact on results. Practical implications The results could be quite interesting for governments and organizations interested in advantage of the technology while reducing its disadvantages. In particular, it is important for accounting firms, which are big users of new technologies (e.g. Smart software and analytics). Indeed, both companies and professional accountants must clearly communicate their expectations regarding the use of technology for business purposes outside normal working hours. Originality/value To the best of the authors’ knowledge, this study is the first to examine the effect of work intensification and the use of smartphones and/or tablets, on WFC.

An integrated model of supply chain resilience and its impact on supply chain performance under disruption

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shih-Jung Juan ◽  
Eldon Y. Li ◽  
Wei-Hsi Hung
Keyword(s):  
Supply Chain ◽  
Partial Least Square ◽  
Least Square ◽  
Equation Modeling ◽  
Manufacturing Companies ◽  
Cross Sectional ◽  
Content Type ◽  
Supply Chain Resilience ◽  
Structured Equation Modeling ◽  
Logistic Issue

PurposeThis study aims to explore the relationships among the five components of supply chain (SC) resilience (SCRES): visibility, velocity, flexibility, robustness and collaboration and their impacts on the SC performance under disruption (SCPUD).Design/methodology/approachFive SCRES components are identified from the literature review and data are collected using an web survey from 113 manufacturing companies in Taiwan. The data are analyzed by structured equation modeling with the partial least square solution. Two-stage least-squares (2SLS) regression was used to test the potential endogeneity of SC collaboration (SCC).FindingsThe results reveal that SCC is an exogenous driver of SCRES; it directly affects visibility, velocity, flexibility, robustness and SCPUD. Furthermore, SC flexibility is the only component of SC agility that directly affects SCPUD; it is influenced directly by SC velocity and indirectly by SC visibility through SC velocity. SC visibility is a vital agility component that positively influences SC velocity and SC robustness.Research limitations/implicationsThe data in this study are cross-sectional and the sample size of 113 is relatively small. The relationship between SC robustness and SCPUD needs a longer observation period to reveal. The logistic issue in the shortage of carriers caused by the pandemic has been overlooked.Practical implicationsA firm should enhance its collaboration and flexibility in the SC as they both are the critical antecedents of SC performance (SCP) during the disruption period.Originality/valueThis study integrates visibility, velocity, flexibility, robustness and collaboration into a complete framework of SCRES. The dependent variable, SCPUD, measures SC performance (SCP) under the disruption caused by the COVID-19 pandemic. It is the first study to investigate the associations of the six constructs in a research model.

Entrepreneurial intentions of university students: a case-based study

2017 ◽  
Vol 11 (03) ◽  
pp. 393-413 ◽  
Author(s):  
Ramo Palalić ◽  
Veland Ramadani ◽  
Arnela Ðilović ◽  
Alina Dizdarević ◽  
Vanessa Ratten
Keyword(s):  
University Students ◽  
Quantitative Research ◽  
Business Environment ◽  
Entrepreneurial Intentions ◽  
Primary Data ◽  
Survey Method ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
Content Type ◽  
Entrepreneurial Experience

Purpose This study aims to examine the entrepreneurial intentions of university students at the International University of Sarajevo. For this purpose, the entrepreneurial desires and entrepreneurial orientations of the students across several demographic variables were measured. These variables included prior entrepreneurial experience, student’s gender, faculty, year of study and attitude towards more courses on entrepreneurship. Nevertheless, the research also examined how business environment influences the entrepreneurial intentions of students by considering the same set of variables. Design/methodology/approach The objectives of this paper have been achieved by using a quantitative research instrument, where the cross-sectional survey method for collecting primary data is used. In total, 173 usable responses have been collected from the beginning of April to the end of May in the academic year 2015/2016. Findings The results indicate that the greater the demotivation with the current business surrounding, the smaller the entrepreneurial intentions of the students are when the prior entrepreneurial experience, gender, year of study and attitude towards more courses on entrepreneurship are considered. The study suggests that improving the overall business surrounding and entrepreneurial education might increase the entrepreneurial intentions of the students. Originality/value This is the first paper that treats entrepreneurial intentions of University students in Bosnia and Herzegovina.

Portfolio investment outflow and the complementary role of direct investment

2015 ◽  
Vol 7 (3) ◽  
pp. 190-206 ◽  
Author(s):  
Abdullah Noman ◽  
Mohammad Nakibur Rahman ◽  
Atsuyuki Naka
Keyword(s):  
Direct Investment ◽  
Relevant Literature ◽  
Explanatory Power ◽  
Least Square ◽  
Policy Implications ◽  
Portfolio Investment ◽  
Content Type ◽  
Foreign Portfolio Investment ◽  
Complementary Role

Purpose – This paper aims to uncover potential contemporaneous relationship between foreign portfolio investment (FPI) and another popular type of cross-border investment outflow, namely, foreign direct investment (FDI). Design/methodology/approach – The relationship between FPI and FDI are modeled using simultaneous equations approach to take potential endogeneity in to account. In a panel of 45 countries over the period of 2001-2009, FPI and FDI are found to be strategically complimentary to each other. Findings – The two-stage least square estimates suggest existence of both statistically and economically significant relationship between these two types of outflows. In particular, the FDI outflow has empirically significant predictive power in explaining the FPI outflow. Similarly, the FPI outflow also has significant explanatory power for the observed level of FDI outflow. Second, the FPI has greater explanatory power for FDI outflow than the FDI for the FPI outflow. Originality/value – The authors believe that the paper would contribute to the relevant literature in terms of its originality and scope. The empirical findings of the paper have valuable policy implications.

scholarly journals Work-environmental determinants of mass fainting illness among textile factory workers

2019 ◽  
Vol 34 (2) ◽  
pp. 112-122
Author(s):  
Maly Phy ◽  
Twisuk Pungpeng ◽  
Chaweewon Boonshuyar ◽  
Thanu Chartananondh
Keyword(s):  
Logistic Regression ◽  
Preventive Measure ◽  
Cross Sectional Study ◽  
Screening Instrument ◽  
Policy Implications ◽  
Environmental Determinants ◽  
Factory Workers ◽  
Cross Sectional ◽  
Content Type ◽  
The Government

Purpose The purpose of this paper is to develop a brief screening instrument to identify risk factors of factory workers experiencing mass fainting illness (MFI) due to work-environmental determinants. Design/methodology/approach A factory-based cross-sectional study was conducted among 740 workers in October 2017 and was completed with face-to-face interviews. Data analyses included univariate logistic regression, backward stepwise linear regression and multiple logistic regression. Sum scores on significant items and receiver operator characteristic curves were used to compute potential cut-off points and the sensitivity and specificity rates. Findings Significant work-environmental factors were identified as working at very high speeds, having less influence on the choice of working partners, perceived high temperature at work, having less opportunity to do their best at work, and concern about losing a job in the next six months. In developing a screening instrument, a 6.5 cut-off point that corresponded to 99.6 percent sensitivity and 92.2 percent specificity was identified. Originality/value The study concludes that this MFI-instrument could potentially be used to prevent MFI. By understanding the policy implications, the government body, employers, workers, development partners and stakeholders should work toward preventing MFI. Implementing a preventive measure is therefore warranted due to the health education impact.

scholarly journals Impact of foreign direct investment, remittances and official development assistance on economic growth: panel data approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Amna Zardoub ◽  
Faouzi Sboui
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Foreign Direct Investment ◽  
Panel Data ◽  
Direct Investment ◽  
Development Assistance ◽  
Business Environment ◽  
Official Development Assistance ◽  
Financial Flows ◽  
Content Type

PurposeGlobalization occupies a central research activity and remains an increasingly controversial phenomenon in economics. This phenomenon corresponds to a subject that can be criticized through its impact on national economies. On the other hand, the world economy is evolving in a liberalized environment in which foreign direct investment plays a fundamental role in the economic development of each country. The advent of financial flows – FDI, remittances and official development assistance – can be a key factor in the development of the economy. The subject of this article is to analyses the effect of financial flows on economic growth in developing countries. Empirically, different approaches have been employed. As part of this work, an attempt was made to use a panel data approach. The results indicate ambiguous effects and confirm the results of previous work.Design/methodology/approachThe authors seek to study the effect of foreign direct investment, remittances and official development assistance (ODA) and some control variables i.e. domestic credit, life expectancy, gross fixed capital formation (GFCF), inflation and three institutional factors on economic growth in developing countries by adopting the panel data methodology. Then, the authors will discuss empirical tests to assess the econometric relevance of the model specification before presenting the analysis of the results and their interpretations that lead to economic policy implications. As part of this work, the authors have rolled panel data for developing countries at an annual frequency during the period from 1990 to 2016. In a first stage of empirical analysis, the authors will carry out a technical study of the heterogeneity test of the individual fixed effects of the countries. This kind of analysis makes it possible to identify the problems retained in the specific choice of econometric modeling to be undertaken in the specificities of the panel data.FindingsThe empirical results validate the hypotheses put forward and indicate the evidence of an ambiguous effect of financial flows on economic growth. The empirical findings from this analysis suggest the use of economic-type solutions to resolve some of the shortcomings encountered in terms of unexpected effects. Governments in these countries should improve the business environment by establishing a framework that further encourages domestic and foreign investment.Originality/valueIn this article, the authors adopt the panel data to study the links between financial flows and economic growth. The authors considered four groups of countries by income.

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