scholarly journals Ambidexterity in micro and small firms: Can competitive intelligence compensate for size constraints?

2021 ◽  
pp. 234094442110548
Author(s):  
Montserrat Boronat-Navarro ◽  
Alejandro Escribá-Esteve ◽  
Jesús Navarro-Campos
Keyword(s):  
Firm Size ◽  
Small Firms ◽  
Jel Classification ◽  
Competitive Intelligence ◽  
Exploration And Exploitation ◽  
Relevant Variable ◽  
Size Constraints ◽  
Resource Slack ◽  
Firm Structures ◽  
Knowledge Exploration

Ambidexterity has been linked to firm structures that are typical of organizations with a larger size. However, further research is needed to analyze whether the effect of firm size on ambidexterity is contingent on other aspects. We argue that micro and small firms that have developed some competitive intelligence routines (CIRs) may foster ambidextrous behavior and compensate for the limitations arising from a smaller size and lack of resources. We test our proposal on a sample of 200 firms in the furniture sector. Our results show that CIRs compensate for size constraints in that size is no longer a relevant variable to increase ambidextrous behavior in firms that achieve higher levels in these routines. Our results provide new and important insights into how ambidexterity may be fostered in small firms that lack resource slack or the ability to use separate units to develop knowledge exploration and exploitation activities. JEL CLASSIFICATION: M10, M21, O3

How does corporate learning orientation enhance industrial brand equity? The roles of firm capabilities and size

2019 ◽  
Vol 35 (2) ◽  
pp. 231-243 ◽  
Author(s):  
Yi Xie ◽  
Xiaoying Zheng
Keyword(s):  
Brand Equity ◽  
Firm Size ◽  
Small Firms ◽  
Learning Orientation ◽  
Innovation Capability ◽  
Marketing Capabilities ◽  
Marketing Capability ◽  
Content Type ◽  
Corporate Learning ◽  
The Impact

Purpose This paper aims to examine the role of learning orientation in building brand equity for B2B firms. The present research proposes that learning orientation contributes to the development of innovation and marketing capabilities and, in turn, leads to enhanced industrial brand equity. Furthermore, the moderating effect of firm size in these processes is investigated. Design/methodology/approach The hypotheses are tested by administering a survey with a set of managers of manufacturing firms in China. Findings Innovation capability and marketing capability serve as the mediators between learning orientation and industrial brand equity. The mediating path through innovation capability is stronger for small firms than for large firms. Research limitations/implications Learning orientation provides a cultural base for B2B firms to cultivate brand equity. Measurement of industrial brand equity and contingency of its effect requires further investigation. Practical implications To transform learning-oriented culture into brand equity, firms need to develop and manage innovation and marketing capabilities. The learning orientation–innovation capability route is more beneficial for small firms. Originality/value While a majority of prior literature ignores the impact of organizational culture in driving industrial brand equity, the present research explores learning orientation as a key cultural antecedent of industrial brand equity. A more refined industrial-brand-equity-building mechanism from learning orientation to corporate capabilities and then to brand equity is proposed and tested. The mechanism varies with firm size.

scholarly journals Corporate parents, initial legitimacy, and resource acquisition in small and medium firms: An empirical examination

2011 ◽  
Vol 14 (1) ◽  
pp. 23-34 ◽  
Author(s):  
Gregory Murphy ◽  
Neil Tocher
Keyword(s):  
Firm Size ◽  
Small Firms ◽  
Small And Medium Enterprises ◽  
Empirical Test ◽  
Resource Acquisition ◽  
The Internet ◽  
Empirical Examination ◽  
Credit Scores ◽  
Medium Enterprises ◽  
Medium Firms

Small and medium enterprises (SMEs) commonly struggle to acquire needed financial, human, and technological resources. The above being stated, recent scholarly research argues that SMEs that are able to successfully navigate the legitimacy threshold are better able to gather the resources they need to survive and grow. This article provides an empirical test of that claim by examining whether the presence of a corporate parent positively influences SME resource acquisition. Results of the study show that SMEs with corporate parents, when compared to like-sized independent SMEs, have higher credit scores, have more complete management teams, use more computers, and are more likely to be on the Internet. These differences are most pronounced for very small firms and diminish in significance as firm size increases. Study implications include the notion that presence of a corporate parent likely represents a successful navigation of the legitimacy threshold, positively increasing SME resource acquisition.

scholarly journals Lagged Effect of Macroeconomic Variables on Stock Returns: A Case of Firm Size

2021 ◽  
Vol 19 (1) ◽  
Keyword(s):  
Stock Returns ◽  
Firm Size ◽  
Small Firms ◽  
Size Group ◽  
Negative Effects ◽  
Macroeconomic Factors ◽  
Large Size ◽  
Negative Effect ◽  
Positive Effect ◽  
Lagged Effect

The evidence of lagged effect regarding firm size between macroeconomic factors and stock returns is found with GARCH model for the UAE firms. More precisely, exchange rate showed a significant effect on stock returns irrespective of size group and lag level. However, a positive effect is observed at lag four and a negative effect is observed on lag five and two for small and large size firms respectively. For majority of the firms in small size, the risk-free rate showed a negative lagged effect on stock returns; however, for the majority of the firms in large size, it showed a positive lagged effect on stock returns. Inflation also showed a significant effect on stock returns on each lag level except for large firms where at lag five it is insignificant. Moreover, as the lags increase from 1- 4 and size from small to large, the negative effect of inflation converts to positive effect on stock returns. The lag effect of real activity showed both positive and negative effects on relatively larger stock returns of small firms than big firms. Money supply showed positive significant effect on stock returns of all firms irrespective of the size group; however, this relationship is even more prominent at lag five. Finally, the oil prices showed a positive effect on stock returns (large size) which further maximizes at lag two; whereas, a negative maximization takes place at lag three. Hence, investors can make informed and effective decisions and UAE policymakers developed effective measures to control and promote macroeconomic growth and stability.

Do Size-dependent Tax Incentives Discourage Plant Size Expansion? Evidence from Panel Data in Indian Manufacturing

2021 ◽  
Vol 15 (4) ◽  
pp. 395-417
Author(s):  
K. V. Ramaswamy
Keyword(s):  
Panel Data ◽  
Small Firms ◽  
Policy Design ◽  
Threshold Value ◽  
Tax Incentives ◽  
Plant Size ◽  
Jel Classification ◽  
Indian Government ◽  
Econometric Tests ◽  
Additional Support

The article presents a new empirical application of the idea of threshold burden of tax incentives in India. The Indian government provided tax exemption to manufacturing units with sales turnover below a specified level over the years. The turnover threshold limit was US$1 million in 2009. Whether size-based tax rules incentivise firms to reorganise their production structure in order to stay below the threshold to take advantage of fiscal incentives is the key question addressed in this article. A significant factor that is widely believed to encourage small firms to stay small has been the tax incentives in the form of excise tax (turnover tax) exemptions below a specified value of sales each year. A key strategy followed by Indian firms to stay small and below the threshold has been product subcontracting or capacity subcontracting. We provide econometric evidence on this particular mechanism. The study is based on a unique unbalanced panel data of 29,213 manufacturing plants spanning the period 1999–2008 and a panel of 4,613 manufacturing firms covering the period 1990–2010. Average subcontracting intensity was found to be significantly higher in manufacturing establishments and firms with sales turnover below the ceiling level set by the tax rules. Econometric tests supported the hypothesis that establishments take advantage of tax incentives by staying below the threshold value of output. Econometric tests for a subgroup of domestic-market-oriented firms provide additional support to the hypothesis of threshold effects. These findings are relevant for policy design in developing and emerging economies. JEL Classification: O14, O17, L60, H32, H25

Dimensione e concentrazione dei gruppi bancari italiani nell'ultimo decennio

2009 ◽  
pp. 21-39
Author(s):  
Vittoria Cerasi ◽  
Lisa Crosato
Keyword(s):  
Mergers And Acquisitions ◽  
Size Distribution ◽  
Small Firms ◽  
Credit Rationing ◽  
Substitution Effect ◽  
Jel Classification ◽  
Steady Increase ◽  
Credit Supply ◽  
Market Shares

- The paper analyzes the change in the size distribution of Italian banking groups over the period 1999 to 2007 following a wave of M&As among large banks. Had this process increased the degree of concentration we would have expected greater credit rationing for small firms, given the central role of Italian banks in financing small firms. We measure this change through widely used measures of concentration on branches. First, we observe a steady increase in concentration that can be captured only by looking at the overall size distribution. Other measures do not perceive this change until the year 2007, when the very large banks merged. Second, by focusing on the banking groups that have been active players in M&As we do see a decline in concentration, since smaller players have caught up with the larger ones in terms of rate of size increase. This contrasts with the role of the new entries and the disappearance of banks following mergers, that has increased the dispersion of market shares. The implications are that: i) there is a credit termination risk due to the rise in active players' size, but ii) credit rationing may not occur due to a substitution effect in credit supply from new entries. Keywords: bank market structure; size distribution of banks; measures of concentration; credit rationing of SME; mergers and acquisitions Parole chiave: struttura dell'industria bancaria; distribuzione per dimensione delle banche; misure della concentrazione; razionamento del credito alle PMI; fusioni e acquisizioni Jel Classification: G21 - L11

Corporate Governance, Karakteristik Perusahaan dan Pengungkapan Corporate Social Responsibility

2015 ◽  
Vol 2 (02) ◽  
pp. 203-217
Author(s):  
Heti Herawati
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Firm Size ◽  
Hypothesis Test ◽  
Institutional Ownership ◽  
Sampling Procedure ◽  
Jel Classification ◽  
Firm Age ◽  
Mining Companies ◽  
Corporate Social

A B S T R A C T The issue of corporate responsibility disclosure (CSRD) grows widely. The purpose of this research is to examine empirically wether institutional ownership, independent board, profitability, firm size and firm age have influence toward CSRD of mining companies listed at IDX. This research has causal characteristic, that is is reviewing the relationship between institutional ownership, independent board, profitability, firm size and firm age has an effect CSRD. The population of this research is mining companies at IDX up to 2013. Sampling procedure utilities sampling purposive method. The number of sample uses 90 data and analyzed by multiple regression analysis. The result of hypothesis test shows that institutional ownership and independent board doesn’t have influence toward CSRD, whereas profitability, company size and age partially have influence towards CSRD. A B S T R A K Isu tentang pengungkapan corporate social responsibility berkembang dengan cepat. Penelitian ini bertujuan untuk menguji secara empiris, apakah kepemilikan institusional, dewan komisaris independen, profitabilitas, size perusahaan dan umur perusahaan mempunyai pengaruh terhadap pengungkapan corporate social responsibility perusahaan pertambangan yang listing di Bursa Efek Indonesia. Penelitian ini bersifat kausal yaitu mengkaji hubungan antara kepemilikan institusional, dewan komisaris independen, profitabilitas, size perusahaan dan umur perusahaan mempunyai pengaruh terhadap pengungkapan corporate social responsibility. Populasi dalam penelitian ini adalah perusahaan-perusahaan pertambangan yang telah terdaftar di BEI sampai dengan tahun 2013. Prosedur pemilihan sampel menggunakan metode purposive sampling. Jumlah sampel yang digunakan 90 dan dianalisis dengan metode regresi linier. Hasil pengujian hipotesis menunjukkan bahwa variabel kepemilikan institusional dan dewan komisaris independen yang tidak berpengaruh terhadap pengungkapan corporate social responsibility, sedangkan profitabilitas, size perusahaan dan umur perusahaan secara parsial berpengaruh terhadap pengungkapan corporate social responsibility. JEL Classification: G34, M14

Further Evidence on the Extent and Origins of JIT's Profitability Effects

2002 ◽  
Vol 77 (1) ◽  
pp. 203-225 ◽  
Author(s):  
Michael R. Kinney ◽  
William F. Wempe
Keyword(s):  
Financial Performance ◽  
Empirical Research ◽  
Firm Size ◽  
Small Firms ◽  
Primary Source ◽  
Profit Margin ◽  
Just In Time ◽  
Asset Turnover ◽  
Size Threshold ◽  
Industry Peers

Empirical research provides scant evidence that just-in-time (JIT) adopters outperform their non-adopting industry peers. Using a sample of 201 JIT adopters and matched non-adopters, we examine the relation between financial performance and JIT. Our sample-wide results indicate that JIT adopters improve financial performance relative to non-adopters, and that profit margin, rather than asset turnover, is the primary source of such improvement. However, results of additional analyses suggest that JIT adopters below a firm-size threshold do not improve financial performance, a finding that reconciles our study to Balakrishnan et al. (1996), which examined a JIT adopter sample that included a greater proportion of small firms.

scholarly journals Should Workers Care about Firm Size?

ILR Review ◽  
2008 ◽  
Vol 62 (1) ◽  
pp. 104-125 ◽  
Author(s):  
Ana Ferrer ◽  
Stéphanie Lluis
Keyword(s):  
Panel Data ◽  
Firm Size ◽  
Instrumental Variable ◽  
Small Firms ◽  
Wage Gap ◽  
Income Dynamics ◽  
Instrumental Variable Estimation ◽  
Direct Estimation ◽  
Monitoring Costs ◽  
Empirical Methodology

The authors analyze how firms of different sizes reward measured skills and unmeasured ability. The empirical methodology, based on nonlinear instrumental variable estimation, permits direct estimation of the returns to unmeasured ability by firm size. An analysis of panel data from the Canadian Survey of Labour and Income Dynamics for two periods, 1993–1998 and 1996–2001, reveals statistically significant differences between firms of different sizes. In particular, returns to unmeasured ability are higher in medium-sized firms than in either small firms or large firms. The authors find that the firm-size wage gap and the differential in returns to unmeasured ability between small and medium-sized firms is mainly explained by ability sorting. The fact that larger firms reward ability less than medium-sized firms is consistent with an explanation based on monitoring costs. When firms become “too large,” monitoring costs may prevent them from rewarding ability directly through wages.

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