Empirical nexus between financial and psychological entrepreneur characteristics and its analogy to entrepreneurship financial performance

Kybernetes ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Waqas Khan ◽  
Qasim Ali Nisar ◽  
Nadia Nasir ◽  
Sobia Nasir ◽  
Yousaf Siddiqui
Keyword(s):  
Locus Of Control ◽  
Financial Performance ◽  
Financial Literacy ◽  
Regulatory Focus ◽  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Target Population ◽  
Risk Tolerance ◽  
Content Type ◽  
Entrepreneurial Characteristics

Purpose This study aims to examine the key entrepreneurial roles (financial literacy, risk tolerance and competency) in the financial performance of small and medium enterprises (SMEs) in Pakistan and the mediating effects of locus of control and spiritual and emotional quotients. Design/methodology/approach The study data was collected from 541 SMEs in Pakistan (the target population) through a survey and analysed with partial least squares structural equation modelling. Findings The findings revealed that the key entrepreneurial characteristics were positively related to locus of control and spiritual quotient and elevated the financial performance in entrepreneurship. It was also reported that locus of control and spiritual quotient mediated between key entrepreneurial characteristics and financial performance. In this regard, emotional quotient strengthened the existing relationships between key characteristics, locus of control and spiritual quotient. Practical implications This study highlighted sustainable implications for SMEs to develop an effective mechanism and improve financial performance through guidelines that emphasized entrepreneurial characteristics and behaviours towards positive entrepreneurial ventures. This study also enabled policymakers to design policies that catalysed SME performance in Pakistan. Originality/value This study contributed a novel concept of key entrepreneurial characteristics by introducing a characteristics tool kit. Consequently, information on a unique framework (by integrating entrepreneurial characteristics and financial performance) and literature on spiritual quotient and locus of control in entrepreneurship were enriched. Contributions to the regulatory focus theory and four-phase Rubicon model in the study context were also made.

scholarly journals Lending terms, financial literacy and formal credit accessibility

2014 ◽  
Vol 41 (5) ◽  
pp. 342-361 ◽  
Author(s):  
Stephen Korutaro Nkundabanyanga ◽  
Denis Kasozi ◽  
Irene Nalukenge ◽  
Venancio Tauringana
Keyword(s):  
Interest Rates ◽  
Commercial Bank ◽  
Financial Literacy ◽  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Explanatory Power ◽  
Bank Lending ◽  
Cross Sectional ◽  
Content Type ◽  
The Relationship

Purpose – The purpose of this paper is to investigate the relationship between commercial bank lending terms, financial literacy and access to formal credit by small and medium enterprises (SMEs). Design/methodology/approach – In this cross-sectional study, the authors surveyed 384 business owners or managers of SMEs in Uganda. The authors applied confirmatory factor analysis to reduce the number of factors and identify the important elements that capture commercial lending terms, financial literacy and access to formal credit. The authors put forward and tested two hypotheses relating to the significance of the relationship between perceived commercial bank lending terms, financial literacy and access to formal credit using structural equation modelling with analysis of moment structures 18. Findings – The results suggest a positive and significant relationship between perceived commercial bank lending terms, financial literacy and access to formal credit. Moreover, the ANOVA results serendipitously show that access to formal credit varies with type of business and turnover. However, collateral and loan repayment periods are not observed variables for commercial bank lending terms. The most significant observed variable for commercial bank lending terms is interest rates. This, together with financial literacy, explains 31 per cent of the variances in access to formal credit by SMEs in Uganda. Research limitations/implications – The study is limited to the SME firms registered and operating in Kampala, Uganda and it is possible that the results are only applicable to these firms in Uganda. Nevertheless, the findings have implications to commercial banks wishing to improve the turnover of their micro-lending schemes. Practical implications – Efforts by the stakeholders to improve financial literacy of SMEs owners and managers must be matched with favourable interest rates if access to formal credit is to be enhanced. Social implications – The findings also have implications for governments aiming at improving access to finance to overcome income inequality problems, and also improve their growth. Originality/value – The results provide initial evidence of the aggregate explanatory power of interest rates and financial literacy for the criterion variable, access to formal credit by SMEs.

Why does subjective financial literacy hinder retirement saving? The mediating roles of risk tolerance and risk perception

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Linh Thi My Nguyen ◽  
Phong Thanh Nguyen ◽  
Quynh Nguyen Nhu Tran ◽  
Thi Tuong Giang Trinh
Keyword(s):  
Risk Perception ◽  
Financial Literacy ◽  
Structural Equation ◽  
Financial Risk ◽  
Risk Tolerance ◽  
Equation Modeling ◽  
Supporting Evidence ◽  
Negative Effects ◽  
Content Type ◽  
Retirement Saving

PurposeThe purpose of this study is to examine a mechanism through which subjective financial literacy can exert negative effects on the retirement saving intention and behaviors, which has not been well understood in prior research. Particularly, the authors draw on the relevant risk literature to introduce financial risk tolerance and risk perception as important mediators that transfer subjective financial literacy into reduced retirement saving intention which in turn affects the saving behaviors.Design/methodology/approachThe authors test the model with a sample of 347 adults using factor analysis and structural equation modeling.FindingsConsistent with the notions about the negative side of subjective financial literacy, the authors find supporting evidence for the proposed indirect effects of financial literacy on retirement saving intention via risk tolerance and risk perception. In addition, the authors observe that an individual's retirement saving intention strongly predicts their retirement saving behaviors.Originality/valueThe study offers insights into the mechanisms that subjective financial knowledge might also inhibit individual's responsible financial behaviors (e.g. retirement saving).

Do the effects of individual factors on financial risk-taking behavior diversify with financial literacy?

Kybernetes ◽  
2017 ◽  
Vol 46 (10) ◽  
pp. 1706-1734 ◽  
Author(s):  
Sibel Dinç Aydemir ◽  
Selim Aren
Keyword(s):  
Locus Of Control ◽  
Risk Taking ◽  
Financial Literacy ◽  
Structural Equation Modelling ◽  
Structural Equation ◽  
Financial Risk ◽  
Financial Behavior ◽  
Individual Factors ◽  
Content Type ◽  
Equation Modelling

Purpose This study aims to examine the roles of individual factors on risky investment intention as an indicator of risky financial behavior. Design/methodology/approach The data were collected from a survey instrument and composed of 496 individuals’ responses. The authors exploited structural equation modelling and multigroup structural equation modelling for direct and indirect effects, respectively. Findings Results indicate that emotional intelligence and locus of control have a positive impact on financial risk-taking, while risk aversion in general has the negative one. Although financial literacy does not have a direct effect on risky financial behavior, it has important role as a moderator variable, interacting with external locus of control. Originality/value The authors expect this study to contribute into behavioral finance literature in two ways. First, they investigate joint and relative effects of four major factors (i.e. emotional intelligence, locus of control, risk aversion in general and financial literacy) identified in the literature on financial risk-taking of individual investors. Each belongs to a different venue in an individual’s psyche and therefore is expected to influence financial risk-taking through different mechanisms. However, the research arguing their roles on the financial risky behavior directly is very limited. Investigating their individual effects is likely to provide unique insights into our understanding of risky financial behavior. Second, the authors also posit and manifest that the effects of the first three of the aforementioned factors on risk-taking intentions are moderated by financial literacy. This finding is likely to provide rather valuable insights pertaining to the emergence of risk-taking behaviors and may shed light on the root reasons behind equivocal findings in previous research regarding the effect of each factor.

Supply chain practices and organizational performance

2017 ◽  
Vol 28 (1) ◽  
pp. 75-101 ◽  
Author(s):  
Shrikant Gorane ◽  
Ravi Kant
Keyword(s):  
Supply Chain ◽  
Customer Satisfaction ◽  
Financial Performance ◽  
Organizational Performance ◽  
Customer Value ◽  
Structural Equation ◽  
Decision Makers ◽  
Current Status ◽  
Content Type ◽  
Manufacturing Organizations

Purpose The purpose of this paper is to empirically test a framework which identifies the relationships between various supply chain practices (SCPs) and organizational performance (operational performance (OP), customer satisfaction, and financial performance) in the context of Indian manufacturing organizations. Design/methodology/approach From the literature, ten SCPs are selected which finally influences the organizational performance. In order to understand the interactions between SCPs and organizational performance, this paper grouped the ten SCPs into four constructs namely: information and communication technology, supply chain (SC) integration, operational responsiveness, and closed loop green practices. Three levels of firm performance are also examined, including OP, customer satisfaction, and financial performance. The paper-based and web-based survey yielded 292 responses from the Indian manufacturing organizations. The data collected were put through rigorous statistical analysis to test for the content, construct, and criterion-related validity, as well as reliability analyses. Further a structural equation model was developed to test the relationships between SCPs and organizational performance. Findings The finding suggests that a successful SCPs implementation not only improves the OP, but also enhances customer satisfaction and financial performance. In addition, higher financial performance is also attributable to better customer value resulting from the achievement of better customer satisfaction. Research limitations/implications SCPs are complex constructs. While this study shows the effect of broadly accepted SCPs on organizational performance, not all possible practices are covered in this study. Again the study can be further extended to sector specific so that the results can be further refined. Practical implications This is one of the few studies which attempts to investigate whether there is any relationship exits between SCPs and organizational performance. The finding will help decision makers in the organization to know the importance of SCPs and how SCPs influence the organizational performance. Second, this study has developed and validated a multi-dimensional construct of SCPs, which can assist decision makers of Indian organizations to evaluate the competence of their current status of SCPs in the organization. Originality/value As per the knowledge of the authors, this is the first kind of study which empirically investigated the relationships between SCPs and organizational performance in the context of Indian manufacturing organizations.

Determinants and outcomes ofe-business adoption among manufacturing SMEs: Insights from a developing country

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muneer Abbad ◽  
Ibrahim Hussien Musa Magboul ◽  
Kholoud AlQeisi
Keyword(s):  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Ease Of Use ◽  
Government Support ◽  
Relative Advantage ◽  
Perceived Ease Of Use ◽  
Content Type ◽  
Business Practitioners ◽  
Using Data ◽  
Medium Enterprises

Purpose In response to a turbulent industrial environment, especially for small and medium enterprises (SMEs), organizations have widely adopted e-business to improve their processes. This study aims to propose a model that encapsulates the determinants and outcomes of e-business adoption. Design/methodology/approach The determinants and outcomes of e-business adoption were tested using data gathered from 282 managers and analysed using structural equation modelling techniques. Findings The results indicated that owner support, perceived ease of use and government support were important determinants that influence e-business adoption. Attitude, competitive pressureand relative advantage were not significant. Regarding outcomes, e-business adoption had a major impact on SME functioning and operational progress; however, it had no influence on competitive advantage. Originality/value By ascertaining the determinants and outcomes of e-business adoption, the findings provide e-business practitioners and managers with guidelines that can encourage more efficient and effective e-business adoption within their organizations. The results also provide a basis for more precise e-business studies to be conducted in developing countries.

Dependence, trust, and 3PL integration: an empirical study in China

2017 ◽  
Vol 47 (9) ◽  
pp. 927-948 ◽  
Author(s):  
Baofeng Huo ◽  
Chen Liu ◽  
Haozhe Chen ◽  
Xiande Zhao
Keyword(s):  
Financial Performance ◽  
Information Sharing ◽  
Structural Equation ◽  
Mainland China ◽  
Performance Model ◽  
Equation Modeling ◽  
Content Type ◽  
Key Dimensions ◽  
Process Coordination ◽  
The Relationship

Purpose The purpose of this paper is to investigate relationships among dependence, trust, and integration in the Chinese 3PL context. 3PL integration is manifested in two key dimensions: information sharing and process coordination. Design/methodology/approach This study develops a dependence-trust-3PL integration-performance model and tests it using structural equation modeling with survey data collected from 361 companies in the Greater China area (i.e. mainland China, Hong Kong, and Taiwan). Findings The results show that switch dependence is indirectly related to information sharing and process coordination through goodwill trust, while goal dependence has direct links with both integrative behaviors. The authors also found that only goodwill trust mediates the relationship between dependence and integrative behaviors, while ability trust does not mediate any relationships. Finally, the analysis validated the direct link between process coordination and financial performance, but did not find a significant link between information sharing and financial performance. Originality/value Different from most previous studies on similar topics, this study examines the impacts of different types of dependence and trust on different 3PL integration dimensions. As a result, the findings are more specific and have direct relevance to effective 3PL relationship management in China.

The influence of homeschooling on entrepreneurial activities: a collective case study

2017 ◽  
Vol 59 (7/8) ◽  
pp. 706-719 ◽  
Author(s):  
Sarah Jeanne Pannone
Keyword(s):  
Locus Of Control ◽  
Small Sample Size ◽  
Research Literature ◽  
Small Sample ◽  
Content Type ◽  
Collective Case Study ◽  
Internal Locus Of Control ◽  
Entrepreneurial Characteristics ◽  
Entrepreneurial Activities

Purpose The purpose of this paper is to investigate how a homeschool education influences entrepreneurial characteristics and activity. Design/methodology/approach A collective case study design was used to investigate how a homeschool education influences entrepreneurial characteristics and activity. Findings From the participant interviews, surveys, and document analysis, three salient themes emerged. First, participants noted that their home education, at least in later years, was largely self-directed and that this independent, self-motivated type of learning impacted their subsequent entrepreneurial activities. Next, participants also related that they believed the alternative nature of their homeschooling education and its emphasis on being comfortable with being different influenced their entrepreneurial pathway. Finally, the third theme to surface was the idea that homeschooling helped develop an internal locus of control, a belief that is helpful in entrepreneurial undertakings. Research limitations/implications Research limitations included a lack of generalizability due to a small sample size and possible selection bias. Practical implications Despite these shortcomings, however, several implications exist. For example, the findings from this study show that homeschooling may be a viable alternative education method for parents looking to encourage entrepreneurial traits and activities in their children. Social implications Future areas of research were also identified, including a call to research the role locus of control plays in homeschooled students. Originality/value This study addresses an area that, to the knowledge of this researcher, is completely lacking from the research literature.

scholarly journals Can Customer Relationship Management Create Customer Agility and Superior Firms’ Performance?

2021 ◽  
Vol 22 (1) ◽  
pp. 175-193
Author(s):  
Vu Minh Ngo ◽  
Hieu Minh Vu
Keyword(s):  
Financial Performance ◽  
Customer Relationship Management ◽  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Relationship Management ◽  
Tourism Industry ◽  
Partial Least Square ◽  
Least Square ◽  
Customer Relationship ◽  
Equation Modeling

The growing importance of Customer relationship management (CRM) and agility in any business are universally accepted and extensively investigated in different disciplines. However, lacking empirical evidence for the suggested theoretical framework of agility and their interrelationships with CRM and superior’s financial performance hinders its application in the practices. Thus, this study attempted to address this issue by drawing on the Resource-Advantage theory of sustainable competitive advantages to examine a mechanism through which CRM implementation can generate sustainable competitive and achieve superior financial performance using the Vietnamese tourism industry context. The framework was tested on data collected from 231 Small and Medium Enterprises (SMEs) using Partial Least Square Structural Equation Modeling (PLS-SEM). Findings suggested that different types of CRM processes do not equally influence customer agility, and not all attributes of customer agility exert positive impacts on firms’ performance as well. Also, CRM performance measurement systems were found to moderate these effects positively and substantially. Several practical implications were also derived from the research findings.

scholarly journals The role played by supply chain strategies and supply chain integration in financial performance. An empirical study in Peru

2021 ◽  
Author(s):  
Francisco Alejandro Pérez Gilabert ◽  
Jorge Luis Pena Acevedo
Keyword(s):  
Supply Chain ◽  
Financial Performance ◽  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Supply Chain Design ◽  
Supply Chain Integration ◽  
Equation Modeling ◽  
Supply Chain Strategy ◽  
Medium Enterprises

The objective of this study is to develop and test a framework for the role that supply chain strategy (SCS) and supply chain integration have in a firm’s financial performance and to increase the understanding of the role that these factors play in supply chain design. Structural equation modeling was used to test these relationships based on data obtained from small and medium exporting enterprises in Peru. This study responds to a gap in understanding the role of supply chains in small and medium enterprises (SMEs) and how firms in Latin America, especially in Peru, apply supply chain concepts. Findings indicate that companies should prioritize their integration efforts depending on the type of supply chain strategy. Likewise, results show that customer integration is directly related to a firm’s financial performance. This study responds to the need to understand the development of supply chain strategies and the generation of competitive advantage in Peruvian export-manufacturing SMEs.

The mediational effect of regulatory focus on the relationships between mindfulness and job satisfaction and turnover intentions

2014 ◽  
Vol 19 (5) ◽  
pp. 494-507 ◽  
Author(s):  
Martha C. Andrews ◽  
K. Michele Kacmar ◽  
Charles Kacmar
Keyword(s):  
Job Satisfaction ◽  
Regulatory Focus ◽  
Structural Equation ◽  
Turnover Intentions ◽  
Equation Modeling ◽  
Future Research ◽  
Snowball Sampling ◽  
Prevention Focus ◽  
Content Type ◽  
The Relationship

Purpose – The purpose of this paper is to explore the role of mindfulness as a predictor of the two components of regulatory focus theory (RFT): promotion and prevention focus. It further examines promotion focus and prevention focus as mediators of the mindfulness-job satisfaction and mindfulness-turnover intentions relationships. Finally, job satisfaction is also examined as a mediator of the mindfulness-turnover intentions relationship. Design/methodology/approach – The model was tested using data collected via a snowball approach. Online surveys were distributed to undergraduate students enrolled in a business course. Students were then given the opportunity to earn extra credit by sending the survey to potential respondents. The relationships were tested using structural equation modeling. Findings – Support was found for four of the six hypotheses. Prevention focus did not negatively mediate the relationship between mindfulness and job satisfaction as well as the relationship between mindfulness and turnover intentions. Research limitations/implications – One limitations of this research is the placement of mindfulness as an antecedent to promotion and prevention focus. Another plausible alternative is to consider mindfulness as a consequence. An additional limitation is the use of a snowball sampling technique. Future research should examine these findings using employees of a single organization. Originality/value – This research theoretically and empirically links RFT and mindfulness. This study also adds to the limited research empirically linking RFT and turnover intentions, both directly and indirectly via job satisfaction. Finally, this research extends previous research that established the positive relationship between mindfulness and job satisfaction by examining the mindfulness-job satisfaction-turnover intentions relationship.

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