Influence of Age and Size on Firm Performance-A Comparative Study of Manufacturing and Service Sectors.

2005 ◽  
Vol 1 (2) ◽  
pp. 91-103
Author(s):  
J. Raja ◽  
A. Suresh Kumar
Keyword(s):  
Firm Performance ◽  
Comparative Study ◽  
Negative Relationship ◽  
Manufacturing Firms ◽  
Service Industries ◽  
Total Asset ◽  
Service Firms ◽  
Firm Age ◽  
Service Sectors ◽  
Asset Size

This paper addresses the issue of firm age and asset (Size) impact on firm performance. The main purpose of this paper is to find, whether firms age and asset can behave in similar fashion across industries particularly in manufacturing and service industries. The results show that manufacturing firms are older and slightly better profitable than services firms. The age of the firm is significant but negatively related to services firms The firm age does not produce any result for many facturing firms. Interestiingly, the total asset of the manufacturing firms’ is significantly related to firm performance, but it produces negative relationship between firm asset and firm perfprmance. The firm asset does not yield any results for service firms. Finally, it is concluded that the age and asset of the firm behaves differntly according to the industry charcterstics.

Service firm performance and foreign ownership

2020 ◽  
Author(s):  
Jieun Choi
Keyword(s):  
Foreign Direct Investment ◽  
Firm Performance ◽  
Direct Investment ◽  
Service Sector ◽  
Service Performance ◽  
Service Firms ◽  
Entry Barriers ◽  
Factor Productivity ◽  
Service Firm ◽  
Service Sectors

Abstract Little is known about the performance of service firms and its relations with foreign direct investment (FDI), in part due to methodological and conceptual challenges in measuring service performance. This article suggests two possible measures of service firm performance: total factor productivity (TFP) and markups, with modification needed to improve those measures for the service sector. Using these measures, it examines service firm performance from 1997 to 2007 in Tunisia, where the service sector accounts for 60% of GDP but faces high protection and complex entry barriers. Then, it investigates whether variations in performance can be explained by FDI. It finds that FDI firms have higher TFP but lower markups than local firms, with significant variations across sub-service sectors.

Do Independent Directors Improve Firm Performance? Evidence from India

2020 ◽  
pp. 097215092091731
Author(s):  
Supriti Mishra
Keyword(s):  
Firm Performance ◽  
Panel Data ◽  
Firm Size ◽  
Negative Impact ◽  
Negative Relationship ◽  
Independent Directors ◽  
Sample Period ◽  
Firm Age ◽  
Firm Profitability ◽  
Size Firm

With increase in the number of corporate frauds, shareholders, analysts and the general public look forward to IndDirs as the saviours who can help prevent such corporate misdoings. This study attempts to find out if having more IndDirs in the board influences firm profitability. Using panel data consisting of all listed Indian companies in the sample period of 2003–2019, it finds that proportion of IndDirs is negatively related to firm profitability. Control variables—board size, firm size (firmSize), leverage, type of industry (IndType), firm age, ownership, and year 2014—are included in the analysis. Even after arresting their confounding effects on firm performance, negative impact of proportion of IndDirs on firm performance continues. Plausible reasons for this negative relationship are offered. This study has relevance in the wake of mandatory provisions in the Companies Act, 2013 , for presence of IndDirs in the board of Indian firms.

DOES GOVERNMENT OWNERSHIP MATTER? COMPARATIVE STUDY BETWEEN GLCS AND NGLCS IN MALAYSIA

2015 ◽  
Vol 60 (02) ◽  
pp. 1550019 ◽  
Author(s):  
IRENE WEI KIONG TING ◽  
HOOI HOOI LEAN
Keyword(s):  
Firm Performance ◽  
Panel Data ◽  
Comparative Study ◽  
Multiple Regression ◽  
Regression Models ◽  
Public Perception ◽  
Negative Relationship ◽  
Government Ownership ◽  
Multiple Regression Models ◽  
The Impact

This study investigates whether government participation in firm ownership leads to better firm performance of publicly listed companies in Malaysia. The sample covers 257 companies listed on the Bursa Malaysia from 1997 to 2009. Multiple regression models with balanced panel data are used to examine the impact of government ownership (GOVN) on firm performance. We find a negative relationship between GOVN and firm performance, a finding that supports the negative public perception of government-linked companies (GLCs) in Malaysia. We conclude that government ownership is not an effective tool for improvement of firm performance in Malaysia.

Working capital management and firm performance in China

2019 ◽  
Vol 27 (4) ◽  
pp. 546-562 ◽  
Author(s):  
Ting Ren ◽  
Nan Liu ◽  
Hongyan Yang ◽  
Youzhi Xiao ◽  
Yijun Hu
Keyword(s):  
Firm Performance ◽  
Negative Relationship ◽  
Manufacturing Firms ◽  
Chinese Economy ◽  
Chinese Government ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Content Type ◽  
Ownership Structures

Purpose The purpose of this paper is to examine the relationship between working capital management (WCM) and firm performance in the context of the Chinese economy. Specifically, it investigates the effects of ownership structures as an internal factor and of institutional environments (IE) as an external factor shaping this relationship. Design/methodology/approach The study applies two-way fixed effect regression models to a sample of Chinese listed manufacturing firms for the period of 2010 to 2017. WCM is measured by cash conversion cycles (CCC); profitability is measured by core profit ratios; ownership structures are classified based on state-owned enterprises (SOEs) and non-SOEs; and IEs are measured from dimensions of factor markets (FM) and legal systems (LS). Findings First, the results show a negative relationship between CCC and firm performance. Second, the negative relationship between CCC and profitability is significant for non-SOEs but not for SOEs. Third, both the FM and LS strengthen the negative association between CCC and profitability. Fourth, the moderating effect of FMs and LSs is evident for non-SOEs only. The results hold when using alternative measures of WCM and profitability and while controlling for additional variables. Originality/value The current study shows that while WCM has a significant effect on the profitability of Chinese firms, such an effect greatly depends on the ownership structures and IE involved. The results thus offer important implications in helping the Chinese government create better IEs and in allowing manufacturing firms to improve upon their WCM practices.

scholarly journals Impact of Innovation Culture, Organization Size and Technological Capability on the Performance of SMEs: The Case of China

2020 ◽  
Vol 12 (4) ◽  
pp. 1355
Author(s):  
GuoXiang Tang ◽  
Kwangtae Park ◽  
Anurag Agarwal ◽  
Feng Liu
Keyword(s):  
Firm Performance ◽  
Manufacturing Industry ◽  
Service Industry ◽  
Technological Capability ◽  
Service Industries ◽  
Organization Size ◽  
Innovation Culture ◽  
Rapid Economic Growth ◽  
Service Sectors ◽  
Apply Regression Analysis

Small and medium-sized enterprises (SMEs) in both the manufacturing and service sectors have been viewed as an important driving force behind the rapid economic growth in China. There are multiple factors that drive the success of SMEs. In this paper, we study the effect of innovation culture, technological capability, and organization size on the performance of SMEs in China. We hypothesize that firm performance is positively affected by each of these factors. We use data from 1124 SMEs in China and apply regression analysis to test our hypotheses. We find that technological capability and organization size have a statistically positive effect on the performance of SMEs. Because manufacturing and service industries have distinct characteristics, we also compare the effects of these factors on firm performance within these industries. We find that technological capability is positively and statistically significantly related to firm performance in the manufacturing industry but not in the service industry, while innovation culture is positively and statistically significantly related to firm performance in the service industry but not in the manufacturing industry.

scholarly journals Do Global Value Chains Make Firms More Vulnerable to Trade Shocks?—Evidence from Manufacturing Firms in Sweden

2019 ◽  
Vol 12 (3) ◽  
pp. 151
Author(s):  
Quoreshi ◽  
Stone
Keyword(s):  
Firm Performance ◽  
Financial Crisis ◽  
Value Chain ◽  
Global Financial Crisis ◽  
Negative Relationship ◽  
Value Added ◽  
Manufacturing Firms ◽  
Trade Shocks ◽  
External Demand ◽  
The Global Financial Crisis

This paper examines the effect of the Global Financial Crisis on manufacturing firms in Sweden by analyzing the effect of trade exposure on firm performance. This study examines the decline in international trade during the global financial crisis by focusing on the relationship between global production linkages and firm performance. The trade exposure at the firm and industry levels were measured to assess the direct and indirect effects of the crisis on firm performance. Robust evidence was found of a negative relationship between trade exposure and the firms’ sales and value-added growth during the crisis. In addition, it was found that higher export dependence was associated with lower sales growth during the crisis. Our results also show that the effect of the decline in the external demand on firm performance depends on the international input-output linkages. In particular, industries that are upstream in the value chain experienced a less severe decline in performance during the crisis.

Does organizational learning differ in manufacturing and service firms? Evidence from Mexico

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rodrigo Garza Burgos ◽  
James P. Johnson ◽  
Misty L.L. Loughry
Keyword(s):  
Organizational Learning ◽  
Firm Performance ◽  
Developing Economies ◽  
Emerging Market ◽  
Manufacturing Firms ◽  
Learning Processes ◽  
Service Firms ◽  
Content Type ◽  
Individual Level ◽  
The Individual

Purpose This paper aims to investigate organizational learning (OL) at the individual, group and organizational levels in service and manufacturing firms in Mexico to determine if there are differences in how OL operates or in the link between OL and firm performance. Design/methodology/approach The authors surveyed experienced managers from 1,093 Mexican firms across a range of service and manufacturing industries, using the Strategic Learning Assessment Map (Bontis et al., 2002). Findings Organizational learning processes (OLPs) were highly similar in service and manufacturing firms and OL had a strong positive association with performance in both types of firms. OLPs at the individual level had a slightly greater impact on performance for service firms. Research limitations/implications The results provide further evidence of the strong link between OL and firm performance. There were no significant correlations of firm size or age with the OLPs or firm performance. However, the micro-companies that constitute 95% of Mexican firms were under-represented in the sample. Practical implications OLPs are equally important in manufacturing and service firms and across developed and developing economies. Therefore, OL should pervade all organizations. Managers should create cultures that encourage employees to produce new ideas and share those ideas with peers and supervisors through both formal and informal communication processes. Social implications The findings indicate that the individual employees’ contributions to OL are the main driver of the impact of OLPs on firm performance and that individual-level learning processes are even more relevant for service firms than for manufacturing firms. As value co-production takes place simultaneously at the moment of the service delivery/service consumption, the individual learning stock is fundamental for enhanced firm performance. Originality/value The authors believe this to be the first large-scale study to compare OLPs in manufacturing and service firms across industries in a major emerging market.

scholarly journals IT Impacts On Performance Of Service Firms Through Operation-Level Dynamic Capability

2012 ◽  
Vol 28 (6) ◽  
pp. 1283 ◽  
Author(s):  
One-Ki (Daniel) Lee ◽  
Peng Xu ◽  
Jean-Pierre Kuilboer ◽  
Noushin Ashrafi
Keyword(s):  
Firm Performance ◽  
Value Of Information ◽  
Information Technologies ◽  
Service Industry ◽  
The United States ◽  
Service Industries ◽  
Dynamic Capability ◽  
Service Firms ◽  
Strategic Value ◽  
Service Setting

This study focuses on the strategic value of information technologies in the service industry and examines the relationship between information technology (IT) service competence and firm performance. The proposed relationship is further augmented by investigating the mediating role of operation-level dynamic capability particularly for the service setting. Survey data of medium to large-size enterprises in service industries in the United States were used to validate the proposed model. The results indicate that operational reconfigurability as an operation-level dynamic capability is a significant IT-enabled mediating driving force of firm performance in the service setting. This study is an early attempt to examine the strategic value of information technologies to lead to service firms business performance, particularly through the dynamic capability at the operation level.

scholarly journals The differentiated effects of CSR actions in the service industry

2014 ◽  
Vol 28 (7) ◽  
pp. 558-565 ◽  
Author(s):  
Ana B. Casado-Díaz ◽  
Juan L. Nicolau-Gonzálbez ◽  
Felipe Ruiz-Moreno ◽  
Ricardo Sellers-Rubio
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Service Industry ◽  
Positive Impact ◽  
Manufacturing Firms ◽  
Service Firms ◽  
Related Factors ◽  
Content Type ◽  
Good Corporate Governance ◽  
The Impact

Purpose – The purpose of this study is to attempt to explain why the impact of Corporate Social Responsibility (CSR) initiatives may be different and/or more important in service firms compared to manufacturing firms. CSR is becoming a common strategy, hence its extensive research. Central to it is the analysis of the effect of CSR on a firm’s performance, whose outcome depends on firm-specific and industry-related factors. Design/methodology/approach – The event study methodology is applied to all the 248 companies that have ever traded on the Spanish Stock Market between 1990 and 2007. A regression analysis examines potential different effects of CSR on service and goods firms. Findings – The results show that CSR activities have a positive impact on firm performance that is higher for service firms than for manufacturing firms. Actions related to the environment, responsible labor relationships and good corporate governance are especially important in the service context. Research limitations/implications – This research is focused on shareholders’ performance, but it does not consider other stakeholders, such as real consumer behavior or employees’ commitment and productivity. Practical implications – Service firms are likely to gain from focusing on some CSR activities (environment, employees and good corporate governance) and should use their responsible behavior as a valuable tool for public relations and differentiation in the market. Originality/value – This article is the first attempt to empirically test and explain why the relationship between CSR and firm performance may be different (more positive) for service vs manufacturing firms.

scholarly journals The Unique Nature of Chinese Corporate Governance Practices

1970 ◽  
Vol 28 (1) ◽  
pp. 23-51
Author(s):  
Yan Liu ◽  
Guclu Atinc ◽  
Mark Kroll
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Positive Relationship ◽  
Negative Relationship ◽  
Board Structure ◽  
Firm Age ◽  
Governance Practices ◽  
Broad Array ◽  
Unique Nature ◽  
And Performance

This study investigates a fairly broad array of factors which may influenceChinese corporate governance and examines the relationships between firm age, topmanagement team age, board structure, ownership structure and firm performancein publicly-listed Chinese firms. As we anticipated, owing to the unique context ofcorporate China, results support a negative relationship between firm age and firmperformance, a positive relationship between percentage of independent directorsand firm performance, and a positive relationship between the presence of foreignblockholders and firm performance. This study also found a positive relationshipbetween the percentages of shares owned by the state as a blockholder and firm performance,but found that neither private nor institutional blockholders influence firmoutcomes. Results also indicate that the relationship between top management ageand firm performance is mediated by firm size. The expected negative relationshipbetween CEO duality and performance and positive relationship between board sizeand firm performance is not supported. These results indicate that there are someunique features of Chinese governance practices that need to be considered by researchersseeking to test the applicability of western theories in the Chinese context.

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