scholarly journals Motives for Financial Valuation of Intangibles and Business Performance in SMEs

Innovar ◽  
2015 ◽  
Vol 25 (56) ◽  
pp. 113-127 ◽  
Author(s):  
Belén Vallejo Alonso ◽  
José Domingo García Merino ◽  
Gerardo Arregui Ayastuy
Keyword(s):  
Business Performance ◽  
Small And Medium Enterprises ◽  
Balance Sheet ◽  
Future Research ◽  
Competitive Advantages ◽  
Financial Valuation ◽  
Intangible Resources ◽  
Valuation Process ◽  
Medium Enterprises

In line with the Resource-based view, intangibles have become the key resource for generating competitive advantages in a firm. This is particularly significant in the case of small and medium enterprises (SMEs) whose competitive advantage is frequently based on intangible resources. However, there has been little attempt to assess and measure the role of intangible resources in firms' performance, and the motives driving their valuation process. Besides, most of the studies have been carried out in large firms. This article, combining theoretical contributions and empirical evidence, aims to analyze the relationship between the motives, external or internal, driving the valuation process of intangibles and the performance obtained by SMEs. Considering the recognized hypotheses and based on a survey of a representative sample of 369 Spanish SMEs' managers, in addition to the financial data collected from these firms, we explore whether the different motives driving the companies to perform a financial valuation of their intangibles are reflected in the business performance, and conditioned by financial structure and the level of intangibles. Results indicate that SMEs consider important to report intangibles value to external stakeholders as they depict a higher level of borrowing, as well as a higher level of intangibles accounted in the balance sheet. Furthermore, SMEs that consider the financial valuation of their intangibles for internal reasons achieve better performance. The implications of these results and suggestions for future research are dicussed as well.

Inward Internationalization

2018 ◽  
pp. 250-275 ◽  
Author(s):  
António Carrizo Moreira ◽  
Luis Miguel D. F. Ferreira ◽  
Pedro Miguel Freitas da Silva
Keyword(s):  
Sample Size ◽  
Product Quality ◽  
Small And Medium Enterprises ◽  
Domestic Market ◽  
Descriptive Statistics ◽  
Future Research ◽  
Medium Enterprises

The existing literature on internationalization and purchasing is vast; however, the inward internationalization perspective is an under-researched topic. In this chapter, the authors review the literature on internationalization of small and medium enterprises (SMEs) to understand the main reasons behind international purchasing and the role of experience on internationalization. Using a survey and descriptive statistics, the results from 56 respondents show that SMEs source from a small number of countries and hold those relationships for several years. The main reasons underlying international purchases are lower prices and better product quality, regardless of goods availability on the domestic market. This chapter has some limitations concerning its exploratory nature, pertaining to its sample size. Some future research avenues are presented such as a deeper look on how internationalization processes differ when SMEs begin their activity by inward rather than by outward activities.

scholarly journals IMPACT OF DYNAMIC CAPABILITIES ON SMALL AND MEDIUM ENTERPRISES PERFORMANCE IN A VOLATILE ENVIRONMENT AS MODERATED BY ORGANIZATIONAL INERTIA

2020 ◽  
Vol 12 (1) ◽  
Author(s):  
Prasheenaa Jeyaranjan ◽  
Thavakumar D
Keyword(s):  
Organizational Performance ◽  
Dynamic Capabilities ◽  
Small And Medium Enterprises ◽  
Competitive Advantages ◽  
Significant Relationships ◽  
Organizational Inertia ◽  
And Performance ◽  
Medium Enterprises ◽  
The Relationship

In Sri Lanka especially in Batticaloa, the studies related to dynamic capabilities, organizational inertia and organizational performance are rare and there is need to fill this empirical gap by investigating the influence of the dynamic capabilities of small and medium enterprises (SMEs) on organizational performance, and the interaction between dynamic capabilities and organizational inertia in a volatile environment. Therefore, this study has been undertaken to examine the relationship among these three variables and to assess the moderating role of organizational inertia in relationship between dynamic capabilities and organizational performance. The findings indicated that the variables have significant relationships among them and further findings of this study revealed that organizational inertia negatively moderates the relationship between dynamic capabilities and organizational performance of SMEs in Manmunai North Divisional Secretariat in Batticaloa District. By addressing the findings of this study SME owners could try to reduce the inertia in their business by which the relationship between dynamic capabilities and performance can be induced and this lead the businesses in achieving competitive advantages.

Organizational network and strategic business performance

2018 ◽  
Vol 31 (2) ◽  
pp. 268-285 ◽  
Author(s):  
Zahid Yousaf ◽  
Abdul Majid
Keyword(s):  
Theoretical Model ◽  
Business Performance ◽  
Small And Medium Enterprises ◽  
Organizational Networks ◽  
Organizational Flexibility ◽  
Content Type ◽  
Organizational Network ◽  
Medium Enterprises ◽  
The Relationship

Purpose The purpose of this paper is to address the key issues, how organizational networks influence the strategic business performance (SBP) through the mediating role of organizational flexibility, and the moderating role of entrepreneurial orientation (EO). Contextualizing small and medium enterprises in developing countries, the authors have developed and tested a theoretical model of SBP to provide a framework for analyzing its major antecedents. Design/methodology/approach This research used a quantitative approach with cross-sectional data. The authors used correlation, regression and Baron and Kenny Approach (Causal Step Approach) for analyzing the data collected from 737 CEOs/MDs/owners of different small and medium enterprises to test the theoretical model developed for this study. Findings Findings revealed that organizational flexibility mediates the relationship between organizational network and SBP. Furthermore, stronger EO strengthens the relationship between organizational flexibility and SBP. Originality/value This study contributes in two ways: first, it provides empirical evidences that how to flourish the mechanism of SBP in SMEs. Second, this work contributes to understand the effects of organizational networks, flexibility and EO on SBP.

scholarly journals Does Environmental Uncertainty Affect Entrepreneurs’ Orientation and Performance? Empirical Evidence from Indonesian SMEs

2012 ◽  
Vol 14 (1) ◽  
pp. 1
Author(s):  
Rina Herani ◽  
Otto Andersen
Keyword(s):  
Entrepreneurial Orientation ◽  
Business Performance ◽  
Small And Medium Enterprises ◽  
Critical Role ◽  
Environmental Uncertainty ◽  
Uncertain Environments ◽  
Uncertain Environment ◽  
And Performance ◽  
Medium Enterprises

Small and medium enterprises (SMEs) have a critical role in economic growth in Indonesia and become the backbone for job creation, poverty alleviation, and safeguard during the crisis. However, they are highly exposed to uncertain environments. The present study aimed to investigate the influence of SMEs’ entrepreneurial orientation on business performance when uncertain environments exist. A total of 152 Indonesian SMEs were studied in order to assess this relationship. Moderated regression analysis is performed as the main statistical procedures to analyse the moderating role of environmental uncertainty on the influence of entrepreneurial orientation on business performance. Surprisingly, the result of the present study did not confirm the previous predominant studies which found that entrepreneurialorientation dimensions are positively associated with business performance in growing in an uncertain environment. Indonesian entrepreneurs were reluctant to innovate, be proactive, and take risks when an uncertain environment exists. The present study was an endeavour to provide better insight in explaining the inconsistent and ambiguous findings from existing literature.

Financial Orientation, Product Innovation and Firm Performance — An Empirical Study in the Japanese SMEs

2016 ◽  
Vol 13 (03) ◽  
pp. 1640005 ◽  
Author(s):  
Kayhan Tajeddini
Keyword(s):  
Firm Performance ◽  
Empirical Study ◽  
Empirical Research ◽  
Product Innovation ◽  
Business Performance ◽  
Small And Medium Enterprises ◽  
Asian Context ◽  
And Performance ◽  
Medium Enterprises

Research into product innovation and financial orientation in the small and medium enterprises (SMEs) is burgeoning, yet our understanding of the finance product innovation and performance remains unclear. Given the lack of empirical research on the role of financial orientation on innovation performance in the SMEs, especially in an Asian context, the current study addresses the relationships between financial orientation, product innovation and business performance in the Japanese SMEs, because it has a long established record on product innovation. Data were generated from 189 Japanese businesses and the results were analyzed using multiple regression. Results confirm the study hypotheses. Implications for management are discussed, along with suggestions for further research.

Intellectual Capital in Malaysian SMEs

2015 ◽  
pp. 220-231
Author(s):  
Muhammad Khalique
Keyword(s):  
Intellectual Capital ◽  
Business Performance ◽  
Food Industry ◽  
Small And Medium Enterprises ◽  
Sampling Technique ◽  
Business Environment ◽  
Customer Capital ◽  
Medium Enterprises ◽  
Three Components

The aim of this chapter is to shed light on the concept and application of intellectual capital in the food industry in Kuching, Malaysia. There is no doubt that intellectual capital is a most important strategic asset for the success of organizations. In a competitive business environment, intellectual capital has been a vital element of success, particularly in Small and Medium Enterprises (SMEs). The purpose of this study is to examine the role of intellectual capital in order to enhance the business performance of SMEs operating in the food industry in Kuching, Malaysia. In this chapter, three components of intellectual capital, namely human capital, customer capital, and structural capital, are employed to examine the role of intellectual capital in SMEs. A structured questionnaire with a five-point Likert Scale was used to gather the data from the targeted respondents by using a convenience-sampling technique. A total of 200 questionnaire sets were distributed to the targeted respondents. From the total distributed questionnaires, a total of 194 respondents gave their feedback. Four research hypotheses were addressed to find the objectives of this study. To test the proposed research hypotheses, multiple regression technique was used. The findings of this study show that the three components of intellectual capital collectively and individually have positive and significant relationships with the business performance of baking SMEs. Subsequently, the four hypotheses of this study were supported. This chapter is a preliminary study about the baking SMEs operating in the food sector in Malaysia.

scholarly journals ANALISIS PERAN DIGITAL CONTENT MARKETING BAGI WIRAUSAHA MILENIAL DI KOTA KUPANG DALAM MASA PANDEMI COVID-19

2021 ◽  
Vol 14 (2) ◽  
pp. 225-238
Author(s):  
Klaasvakumok Jehezkielomi Kamuri
Keyword(s):  
Millennial Generation ◽  
Small And Medium Enterprises ◽  
Cost Effective ◽  
Research Problem ◽  
Digital Content ◽  
Competitive Advantages ◽  
Marketing Information ◽  
Medium Enterprises ◽  
Content Marketing

One of the impacts caused by the Covid-19 pandemic is the limited interaction of the community in various activities, including business activities, causing Indonesia to experience a 0.1% decline in economic growth in 2020, and more than 50% of Small and Medium Enterprises have become victims. However, the limited interaction in business activities is not a major problem for the millennial generation. They have sufficient skills and knowledge in utilizing technology to carry out their business activities. The method used today is marketing through digital content which is known as digital content marketing. Many business people have started to switch to modern marketing based on digital technology because it is considered more effective and can be done in various situations and conditions, including during the Covid-19 pandemic. This study aims to examine the role of digital content marketing towards the efforts made by millennial entrepreneurs in Kupang City during the Covid-19 pandemic. The method used in this research is descriptive qualitative in order to obtain data and facts related to the research problem directly. Through the results and discussion, it was concluded that digital content marketing plays an important role in creating cost-effective promotions, increasing sales, communication media and effective and up to date marketing information. Digital content marketing plays a role in building brand awareness and consumer loyalty, being a means of developing creativity and knowledge of business actors in utilizing technology for business, and creating competitive advantages for millennial entrepreneurs in Kupang City. Keywords: Digital Content Marketing, Entrepreneurship, Millennial Generation

scholarly journals Small and Medium Enterprises in the Middle East and North Africa Region

2021 ◽  
Vol 16 (5) ◽  
pp. 55
Author(s):  
Khaled Otman
Keyword(s):  
Middle East ◽  
North Africa ◽  
Small And Medium Enterprises ◽  
Policy Implications ◽  
Future Research ◽  
Mena Region ◽  
Access To Finance ◽  
Mena Countries ◽  
Medium Enterprises

In the Middle East and North Africa (MENA) region, Small and Medium Enterprises (SMEs) are now widely recognized as engines of economic development. This paper discusses the importance of SMEs in the MENA economic area and identifies the challenges and barriers facing SMEs in MENA countries. In addition, this study analyses the effects of two 'black swan' Coronavirus disease (COVID-19) phenomena and a decline in oil prices on the economy of MENA in 2020. The current study found that the most significant challenges were identified as lack of access to finance, lack of managerial expertise, inefficiencies of government, lack of a well-trained workforce, inadequate infrastructure, corruption and bureaucratic obstacles. Among these challenges, the lack of access to finance appears to be the major challenge and suggests that future research is required to identify the role of Islamic finance models in the financing of SMEs in MENA countries. This research provides all stakeholders with policy implications intended for enhancing the different features of SME improvement in the MENA region and generally in developing countries.

scholarly journals Impact of Digitalization on the Speed of Internationalization

2019 ◽  
Vol 12 (4) ◽  
pp. 1 ◽  
Author(s):  
Yan-Yin Lee ◽  
Mohammad Falahat ◽  
Bik-Kai Sia
Keyword(s):  
International Business ◽  
Business Models ◽  
Small And Medium Enterprises ◽  
Research Direction ◽  
Theoretical Development ◽  
Future Research ◽  
New Business ◽  
Medium Enterprises ◽  
The Impact

Digitalization combined with globalization is the current megatrend that impacting the international business landscape and creates opportunities for new business models. Embracing digitalization enables firms for speedy internationalization. Although the phenomenon of early internationalization has received increasing attention in the field of International Entrepreneurship over the past decades, however, there is a lack of focus on the role of digitalization that allows a higher speed of internationalization. This paper proposes a model that highlights the moderating role of digitalization on international business competencies and speed of internationalization. We argue that small and medium enterprises able to enter international markets more rapidly due to the impact of digitalization. This study addresses a gap in the literature and practical development needs for better understanding the impact of digitalization on the speed of internationalization. The limitations and implications of this study will be discussed for theoretical development and future research direction.

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