ECONOMIC IMPACT ASSESSMENT OF PUBLIC–PRIVATE MATCHING FUND PROGRAMS USING FIRM-LEVEL DATA

2015 ◽  
Vol 60 (04) ◽  
pp. 1550060 ◽  
Author(s):  
YOUNGKYU KIM ◽  
INHA OH ◽  
JEONG-DONG LEE
Keyword(s):  
Business Performance ◽  
Positive Impact ◽  
Small And Medium Enterprises ◽  
Private Investment ◽  
External Financing ◽  
Firm Level ◽  
Economic Impact Assessment ◽  
Level Data ◽  
Fixed Assets ◽  
Medium Enterprises

In the intermediate goods industry, largely made up of small and medium enterprises (SMEs), a government can use a matching fund to execute policies that, for example, provide funds to promote and support firms' innovative activities. This study performs an empirical analysis to investigate the additional effects when a government uses a matching fund in this way and, in particular, to analyze the growth of firms. Methodologically, to deal with the selectivity issue, we adopt a propensity score matching (PSM) estimator. We also investigate the performance of the matching fund according to changes in private shares. Our findings show that supported firms invested larger amounts in R&D and procured external financing through an overall improvement in their level of reliability. However, the results also show that this was not connected to further improvements in business performance. Moreover, although our results show some positive impact on assets and R&D expenditure from private investment in the matching fund, the relationship between sales and fixed assets was non-significant.

scholarly journals The Effects of State Development Banks on the Performance of Small and Medium Enterprises

2018 ◽  
Vol 56 (3) ◽  
pp. 389-411
Author(s):  
Jadranka Petrović
Keyword(s):  
Correlation Analysis ◽  
Business Performance ◽  
Positive Impact ◽  
Small And Medium Enterprises ◽  
State Development ◽  
Net Profit ◽  
Development Banks ◽  
The Republic ◽  
Empirical Context ◽  
Medium Enterprises

Abstract The views regarding the role and the need for state development banks have evolved in the 20th century, from considering their role as very important in the 1950s, through the stance of their inadequacy and ineffectiveness, to a renewed interest for public development banks at the beginning of 21st century. In this study we will concentrate on the state development banks as an important instrument of state financial support to small and medium sized enterprises (SMEs). The Republic of Srpska Investment-Development Bank (RSIDB) provided the empirical context for our research. By applying the Mann-Whitney U Test and the correlation analysis the authors examined the effect of RSIDB loans on certain business performance indicators of SMEs. From the results of Mann-Whitney U Test it can be concluded that the average sales, number of employees and net profit in the five-year period after using the RSIDB loan is statistically significantly higher for the RSIDB borrowers compared to non-borrowers. The results of correlation analysis show that there is statistically significant positive correlation of medium strength between the use of RSIDB loans and the total sales, net profit and number of employees in the 5-year period after using the RSIDB loan. The study showed the positive impact of RSIDB loans on the growth of sales, net profit and employment of SME borrowers.

scholarly journals Pengaruh Orientasi Kewirausahaan dan Kapasitas Inovasi terhadap Kesuksesan Proyek pada Bidang Fashion

2020 ◽  
Vol 2 (3) ◽  
pp. 690
Author(s):  
Fernando Gho Danny ◽  
Louis Utama
Keyword(s):  
Entrepreneurial Orientation ◽  
Business Performance ◽  
Small And Medium Enterprises ◽  
Creative Industries ◽  
Partial Least Square ◽  
Least Square ◽  
Firm Level ◽  
Entrepreneurial Marketing ◽  
Medium Enterprises ◽  
The Relationship

Purpose – This paper examines the relationship between entrepreneurial orientation, innovation capacity, and firm performance in the creative industries context. Design/methodology/approach – The developed conceptual model is tested using partial least square ( PLS ) using a sample of 30 creative industries small medium enterprises owners. Findings – The result of the PLS model shows that both EO and IC act as a basis for improved business performance among small and medium enterprises. Based on the research findings, it can be argued that both EO and EO fully unlock their value-creating potential among small and medium enterprises. Originality/value – In addition to providing initial insight on the relationship between entrepreneurial action, innovative capacity, and performance with the creative industries, the paper also is one of the first on the creative industries to focus on firm-level strategy.Tujuan dari makalah ini adalah membahas hubungan antara orientasi kewirausahaan, kapasitas inovasi, dan kinerja perusahaan dalam konteks industri kreatif. Desain / metodologi / pendekatan - Model konseptual yang dikembangkan diuji menggunakan partial least square (PLS) menggunakan sampel 30 pemilik UKM industri kreatif. Temuan - Hasil model PLS menunjukkan bahwa baik EO dan IC bertindak sebagai dasar untuk meningkatkan kesuksesan proyek di antara usaha kecil dan menengah. Berdasarkan temuan penelitian, dapat dikatakan bahwa EO dan IC sepenuhnya membuka kunci potensi penciptaan nilai mereka di antara perusahaan kecil dan menengah. Orisinalitas / nilai – Dalam studi ini selain memberikan wawasan awal antar tindakan kewirausahaan, kapasitas inovaif dan kinerja dalam indsutri kreatif. Makalah ini juga merupakan salah satu yang pertama di industri kreatif untuk fokus pada tingkat perusahaan. Kata kunci: Entrepreneurial marketing, Innovation, Competitive Advantage, Creativity in Marketing, Entrepreneurial orientation.

scholarly journals Export guarantees and firm performance in the context of corporate governance

2021 ◽  
Vol 18 (3) ◽  
pp. 136-148
Author(s):  
Kashika Arora ◽  
Areej Aftab Siddiqui
Keyword(s):  
Technical Efficiency ◽  
Financial Services ◽  
Small And Medium Enterprises ◽  
Stochastic Frontier ◽  
World Market ◽  
Insurance Premium ◽  
Firm Level ◽  
Level Data ◽  
Medium Enterprises ◽  
Frontier Production Function

Micro, small and medium enterprises (MSMEs) the forerunners of the Indian economy equipped with the greatest potential of growth and employment opportunities are the focus of this paper. By examining firm-level data for years 2007-2008 and 2017-2018, this paper captures the simultaneous expenditure on insurance premium and export earnings on the technical efficiency of firms. On applying stochastic frontier production function, results reveal that Indian MSMEs although being labour intensive have high average technical efficiency in the two comparative years. Results also indicate that factors such as firm size, age, ownership, technological imports both embodied and disembodied, expenditure on R&D, and export guarantees contribute to the technical efficiency of MSMEs. The top 25 percent of efficient MSMEs in 2017-2018 rely more on exports, have higher forex earnings with higher expenditure on marketing & advertising, and expenditure on export guarantees. This thus warrants a further improvement in technical efficiency through access to financial services, skilled labour, training of labour, enhancing and attracting foreign investment for operational collaborations, and incentives for easier and risk-free penetration in the world market

scholarly journals INTEGRATING DISRUPTIVE INNOVATION, COMPETITIVE ADVANTAGE, AND BUSINESS NETWORKING CAPABILITY ON SMALL BUSINESS PERFORMANCE IN INDONESIA

Performance ◽  
2019 ◽  
Vol 26 (1) ◽  
pp. 39
Author(s):  
Sri Murni Setyawati ◽  
Monica Rosiana ◽  
Wiwiek Rabiatul Adawiyah
Keyword(s):  
Competitive Advantage ◽  
Structural Equation ◽  
Business Performance ◽  
Positive Impact ◽  
Small And Medium Enterprises ◽  
Disruptive Innovation ◽  
Business Networking ◽  
Small Business Performance ◽  
Medium Enterprises ◽  
The Relationship

This study aimed at explaining the influence of disruptive innovation on business performance with competitive advantage as a mediator and networking capability as moderate. The tool of analysis used was Structural Equation Modelling (SEM). The sample size of this research was 120 owners and/or managers of Small and Medium Enterprises (SMEs) in Purwokerto areas. The result showed that disruptive innovation has a positive effect on both business performance and competitive advantage. The study supported the view that competitive advantage has a positive impact on business performance.  Also, competitive advantage act as mediating variable on the relationship between disruptive innovation and business performance. Finally, the last hypothesis stated that networking as moderation variable of disruptive innovation to business performance was supported.

scholarly journals Mentoring and Organizational Performance: A Review of Effects of Mentoring on Small and Medium Enterprises

2016 ◽  
Vol 2 (2) ◽  
pp. 143-158 ◽  
Author(s):  
Muzaffar Hussain Shah ◽  
Abdul Rahim Bin Othman ◽  
Mohd Najib Bin Mansor
Keyword(s):  
Job Satisfaction ◽  
Decision Making ◽  
Organizational Performance ◽  
Business Performance ◽  
Positive Impact ◽  
Small And Medium Enterprises ◽  
High Impact ◽  
Mentoring Programs ◽  
Medium Enterprises ◽  
The Impact

Mentoring has gained substantial attention in small and medium enterprises in recent years due to its high impact on business performance. Several studies have delineated the impact of mentoring on small and medium enterprises and found mentoring is helpful for improving organizational performance and transferring information from experienced entrepreneurs to inexperienced or les experienced entrepreneurs which leads to higher productivity of organization, better job satisfaction, and retention of workers. This study reviews the literature of mentoring and the components of mentoring. Findings of the study depict that mentoring has a positive impact on business performance. Moreover, the results also implicate significant decision-making suggestions for SMEs that improved business performance can be achieved by enabling efficient mentoring programs. These programs would benefits employee as well as the organization. Mentoring programs not only increase the value of employees but also the effectiveness of the business.

scholarly journals Firm-Level Data and Monetary Policy

2019 ◽  
Vol 2019 (239) ◽  
Author(s):  
Lahcen Bounader ◽  
Mohamed Doukali
Keyword(s):  
Monetary Policy ◽  
Small And Medium Enterprises ◽  
Balance Sheet ◽  
Firm Level ◽  
Middle Income ◽  
Financing Decisions ◽  
Balance Sheet Channel ◽  
Level Data ◽  
Firm Level Data ◽  
Medium Enterprises

We test the existence of the balance sheet channel of monetary policy in a middle-income country. Firm-level data scarcity and quality, in such a context, make the identification of this channel a steep challenge. To circumvent this challenge, we use panel instrumental variables estimation with measurement error to analyze the financial statements of 58 500 Moroccan firms over the period 2010-2016. Our analysis confirms the existence of this channel. It shows that monetary policy has a significant impact on small and medium enterprises’ access to banks’ financing, and that firm-specific variables are key determinants of firms’ financing decisions.

scholarly journals Managers’ Open Innovation and Business Performance in SMEs: A Moderated Mediation Model of Job Crafting and Gender

2020 ◽  
Vol 6 (3) ◽  
pp. 89 ◽  
Author(s):  
Fouzia Hadi Ali ◽  
Muhammad Ali ◽  
Sania Zahra Malik ◽  
Muhammad Ali Hamza ◽  
Hafiz Fawad Ali
Keyword(s):  
Open Innovation ◽  
Business Performance ◽  
Service Sector ◽  
Positive Impact ◽  
Small And Medium Enterprises ◽  
Simple Random Sampling ◽  
Job Crafting ◽  
Moderated Mediation Model ◽  
Medium Enterprises ◽  
The Relationship

There is growing acceptability in redesigning jobs to achieve goals and objectives nowadays. Employees who indulge in exploiting and exploring opportunities for the business tend to craft their jobs, which can help to enhance business performance. This study aims to examine that how ambidextrous managers in small and medium enterprises (SMEs) craft their tasks as a strategy for open innovation to enhance business performance. This study also attempts to assess the moderating role of gender in evaluating the relationship. Simple random sampling is used to administer a structured questionnaire to 650 operations managers employed in service-sector SMEs. The findings reveal that, when male managers involve in explorative and exploitative activities, they tend to craft their jobs more as compared to females. In turn, when jobs are redesigned, it brings a positive impact on business performance as perceived by the managers. The study provides implications for the policy makers with regard to device measures to enhance the job crafting capacity of managers with specific attention to female managers in the case of small and medium enterprises. The present study provides a novel explanation of the relationship between manager ambidextrous behavior and business performance through the mediation of job crafting among top managers working in small and medium organizations, with an overarching view of gender.

scholarly journals THE ROLE OF PUBLIC DEVELOPMENT BANKS IN THE GROWTH OF SMALL AND MEDIUM ENTERPRISES

2017 ◽  
Vol 1 (13) ◽  
pp. 17
Author(s):  
Jadranka Petrović
Keyword(s):  
Performance Indicators ◽  
Business Performance ◽  
Positive Impact ◽  
Small And Medium Enterprises ◽  
Control Group ◽  
Development Banks ◽  
The Republic ◽  
Empirical Context ◽  
Medium Enterprises ◽  
The Impact

In this study we focus on public development banks in order to see how effective their support has been on the SMEs performance and growth. The Republic of Srpska Investment-Development Bank (in Serbian: Investiciono razvojna banka Republike Srpske – IRBRS), provided the empirical context for our research.  We explored the impact of IRBRS loans on selected business performance indicators: sales, profit and capital of SME borrowers. The study was based on the comparison of selected performance indicators during the five-year period before (2003-2007) and the five-year period (2009-2013) after using IRBRS loans. The selected indicators were also compared with those of the control group, non users of IRBRS loans. The results based on the representative sample of SMEs in the Republic of Srpska show a positive impact of IRBRS loans on sales, profitability and capital of SME borrowers, therefore confirming the positive impact of public development banks on the SMEs performance and growth.

scholarly journals Women’s Economic Empowerment in Vietnam: Performance and Constraints of Female-Led Manufacturing SMEs

2021 ◽  
Vol 14 (6) ◽  
pp. 255
Author(s):  
MinhTam Bui ◽  
Trinh Q. Long
Keyword(s):  
Labor Productivity ◽  
Small And Medium Enterprises ◽  
Manufacturing Sector ◽  
Value Added ◽  
Medium Size ◽  
Formal Sector ◽  
Firm Level ◽  
Average Value ◽  
Significant Difference ◽  
Medium Enterprises

This paper identifies whether there was a performance difference among micro, small and medium enterprises (MSMEs) led by men and by women in Vietnam during the period 2005–2013 and aims to provide explanations for the differences, if any, in various performance indicators. The paper adopts a quantitative approach using a firm-level panel dataset in the manufacturing sector in 10 provinces/cities in Vietnam in five waves from 2005 to 2013. Fixed effect models are estimated to examine the influence of firm variables and demographic, human capital characteristics of owners/managers on firms’ value added, labor productivity and employment creation. We found that men led MSMEs did not outperform those led by women on average. Although the average value added was lower for female-led firms in the informal sector, the opposite was true in the formal sector where women tend to lead medium-size firms with higher value added and labor productivity. The performance disparity was more envisaged across levels of formality and less clear from a gender perspective. Moreover, while firms owned by businessmen seemed to create more jobs, firms owned by women had a higher share of female employees. No significant difference in business constraints faced by women and by men was found.

The Optimal Diversification Strategy in Pharmaceutical Industry: Balance-centred or Hetero-centred?

2021 ◽  
pp. 097172182110056
Author(s):  
Keungoui Kim ◽  
Junseok Hwang ◽  
Sungdo Jung ◽  
Eungdo Kim
Keyword(s):  
Business Performance ◽  
Business Environment ◽  
Product Diversification ◽  
Diversification Strategy ◽  
Firm Level ◽  
Data Set ◽  
Pharmaceutical Firms ◽  
Level Data ◽  
Market Product ◽  
High Uncertainty

Due to high uncertainty of product development and business environment, firm-level diversification has been regarded as one of the most effective methods in pharmaceutical firms. In previous study, firm-level diversification was discussed by different value chains of market, product, and technology. However, in most cases, the diversification itself was adopted in a simple manner although its property contains different aspects and the results varies depending on the diversity property of selected index. In addition, the existing approach for measuring firm’s product/market diversification using sales information distinguished by standard industry classification cannot provide direct implication as different strategies are made for market and product diversification. Therefore, this study examines the effects of firm-level diversification on business and innovation performances in pharmaceutical firms by considering (1) three diversification types: market, product, and technology, (2) clear separation between market and product diversification, and (3) two diversification perspectives: balance-centred and hetero-centred. For empirical analysis, an integrated firm-level data set combining from Medtrack, Orange Book, Compustat and Total Patent database is used. From the result, in case of market diversification, less market heterogeneity causes significant influence on business performance. For product and technology, a concentrated and greater heterogeneity of product diversification are turned out to promote business performance, while the more intensive and heterogeneous technology diversification has been shown to improve innovation performance.

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