scholarly journals Moderator Effect of Innovation on the Relationship between Internationalization and Performance in Brazilian and European Companies

2021 ◽  
Vol 15 (3) ◽  
Author(s):  
Antonio Rodrigues Albuquerque Filho ◽  
Editinete André da Rocha Garcia ◽  
Alessandra Carvalho de Vasconcelos ◽  
Afonso Carneiro Lima
Keyword(s):  
Financial Performance ◽  
Moderating Effect ◽  
Linear Regression Models ◽  
Moderator Effect ◽  
Institutional Conditions ◽  
Innovation Activities ◽  
And Performance ◽  
The Individual ◽  
Generalized Moments ◽  
The Relationship

Objective: To analyzes the moderating effect of innovation on the relationship between internationalization and financial performance. Method: The sample gathers 1,840 companies listed on Brasil, Bolsa, Balcão (B3) and NYSE Euronext  during the period of 2014-2018. Tests for difference of means were performed and linear regression models with panel data via systemic generalized moments method (GMM-Sys) were estimated. Results: Estimates indicate that the degree of internationalization alone does not assure high financial performance in Brazilian companies, while in European companies it influences return on assets (ROA) negatively. Moreover, in both contexts, the individual moderating effect of the two variables of innovation, exploration (R&D) and exploitation (Capex), could not be identified. However, a positive and significant effect of ambidextrous innovation activities in the relationship between internationalization and financial performance was verified. Evidence of the effect of internationalization on financial performance in both Brazilian and European companies is confirmed when enhanced by the simultaneous engagement of innovation activities. Contributions: This study contributes to a recent investigative line, which verifies the effect of intervening variables in the internationalization-performance relationship. It contributes to the analysis of this relationship in companies from emerging markets, a much and still needed research focus as a way of gaining a better understanding of business opportunities in adverse institutional conditions and how to seize them.

Industry innovation spending and openness to collaboration as levers for firm performance

2019 ◽  
Vol 22 (4) ◽  
pp. 617-638 ◽  
Author(s):  
Luiz Fernando de Paris Caldas ◽  
Fabio de Oliveira Paula ◽  
T. Diana L. van Aduard de Macedo-Soares
Keyword(s):  
Firm Performance ◽  
Knowledge Spillovers ◽  
Moderating Effect ◽  
Firm Innovation ◽  
Content Type ◽  
Innovation Activities ◽  
Industry Collaboration ◽  
And Performance ◽  
Italian Manufacturing Firms ◽  
The Relationship

Purpose The purpose of this paper is to analyze to what extent spending on innovation activities and collaboration at the industry level affects the relationship between firm innovation and performance. Design/methodology/approach A conceptual model was proposed and empirically tested using multiple linear regression. The data were obtained from the Community Innovation Survey 2012, composing a sample of 890 Italian manufacturing firms. Findings The results provided full support for the positive moderating effect of intra-industry innovation spending and partial support for the positive moderating effect of intra-industry collaboration, both regarding the relationship between firm innovation spending and performance. Knowledge spillovers derived from intra-industry innovation spending and intra-industry collaboration affect firm performance. While this finding corroborates other studies that have found that the intra-industry R&D spending influences firms’ innovation and performance, it also contributes to improve the understanding about the complementarity of internal innovation activities and knowledge spillovers. Originality/value This study contributes to theory by filling a gap concerning the complementarity of internal innovation activities and the effect of knowledge spillovers to improve firm performance. Our findings suggested that intra-industry openness to collaboration and innovation spending, as proxies of knowledge spillovers, plays an important role in complementing firm level innovative efforts, even in the case of firms that spend less on innovation and have a lower degree of collaboration. This is especially relevant for small and medium enterprises, which can take advantage of access to the necessary information to overcome their internal resource constraints for R&D and innovation. The originality of these findings adds value in terms of furthering the understanding of this phenomenon.

scholarly journals FRANCHISOR-FRANCHISEE RELATIONSHIP QUALITY: TIME OF RELATIONSHIP AND PERFORMANCE

2016 ◽  
Vol 56 (6) ◽  
pp. 600-610 ◽  
Author(s):  
LUÍS FERNANDO VAROTTO ◽  
JURACY GOMES PARENTE
Keyword(s):  
Financial Performance ◽  
Relationship Quality ◽  
Moderating Effect ◽  
Self Report ◽  
Regression Analyses ◽  
Relationship Duration ◽  
And Performance ◽  
The Impact ◽  
The Relationship ◽  
Over Time

ABSTRACT Franchise literature disputes how the relationship between franchisors and franchisees develops over time. Traditional lifecycle theory views relationships following an ascendant curve, in which relationship quality and performance strengthen over time. Another perspective better reflects the peculiarities of the franchisor-franchisee relationship, indicating that relationship quality in franchise systems follows a U-shaped curve. There is also limited research on the moderating effect of time on the relationship between relational variables and outcomes. This study sheds light on the influence of relationship duration on relationship quality and financial performance in the franchisee-franchisor relationship. Using a self-report survey from a sample of 342 franchisees, mean and regression analyses are conducted to test relationships. Results confirm the time effect on franchisor-franchisee relationship quality and performance, but the hypothesized shape of relationship phases is only partially confirmed. Moreover, time has a positive moderating effect on the impact of relationship quality on financial performance.

scholarly journals Moderating Effect of Environmental Dynamism on the Relationship between a Firm’s Entrepreneurial Orientation and Financial Performance

2018 ◽  
Vol 9 (4) ◽  
Author(s):  
Kayhan Tajeddini ◽  
Stephen Mueller
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Entrepreneurial Orientation ◽  
Empirical Studies ◽  
Dynamic Environment ◽  
Moderating Effect ◽  
And Performance ◽  
Performance Results ◽  
Financial Firm ◽  
The Relationship

Abstract The relationship between entrepreneurial orientation and firm performance has been the focus of numerous empirical studies over the past decade. The conclusions and findings reported are diverse and often conflicting. One possible explanation for mixed findings is that past studies do not take into account the dynamic nature of the industry environment. Using a sample of 192 Swiss firms from several different industries, this study examines the direct effect of entrepreneurial orientation on financial firm performance along with the moderating effect of a dynamic environment on the relationship between entrepreneurial orientation and performance. Results of this study suggest that for firms competing in a highly dynamic environment, the positive effect of an entrepreneurial orientation on financial performance is enhanced.

Financing Decisions and Performance of Italian SMEs in the Hotel Industry

2018 ◽  
Vol 60 (4) ◽  
pp. 335-354 ◽  
Author(s):  
Marco Botta
Keyword(s):  
Capital Structure ◽  
Financial Performance ◽  
Optimal Level ◽  
Pecking Order ◽  
Optimal Capital Structure ◽  
Financing Decisions ◽  
Medium Enterprise ◽  
Optimal Capital ◽  
And Performance ◽  
The Relationship

This study investigates the existence of an optimal capital structure for small and medium enterprise (SME) hotels through the analysis of the relationship between financing decisions and financial performance in a large sample of Italian hotel SMEs. The results show that hotel SMEs face an optimal capital structure that allows them to maximize returns to investors, while instead having both too little and too much debt reduces their financial performance. This notwithstanding, we show that hotel SMEs are not particularly concerned with optimizing their capital structure, and their funding behavior is deeply connected with the availability of internally available funds, a typical pecking order behavior, and they result extremely slow in converging toward their optimal level of leverage so that they could improve their performance by adopting a more sophisticated financial strategy.

scholarly journals Green CSR Moderated by Public Visibility and Innovation Performance at Indonesia Companies

2020 ◽  
Vol 24 (1) ◽  
pp. 1
Author(s):  
Rahmat Hidayat, Farah Margaretha Leon
Keyword(s):  
Positive Relationship ◽  
Negative Relationship ◽  
Innovation Performance ◽  
Manufacturing Companies ◽  
Innovation Activities ◽  
And Performance ◽  
Relationship Of ◽  
The Relationship

This study aims to analyze the green CSR  of innovation performance  with firms approval variables  and public visibility   can support moderating the relationship of green CSR  and innovation. The research sample was 33 manufacturing companies. The results showed that the  green CSR has a positive and significant effect on innovation . Also, the company approval variable has been proven to moderate the direction of a positive relationship between green CSR and innovation . The results also prove that public visibility is proven to moderate the direction of the negative relationship between green CSR and performance. This study provide information that shows great concern for the environment; it will increase the company in making changes through innovation activities. Also, the higher the company's approval and public visibility, the company will get support from various stakeholders to run the firms. The level of company concern for CSR activities will be a misjudgment for investors.

scholarly journals Financial capital, constraints, partners, and performance: An empirical analysis of Indonesia SMEs

2021 ◽  
Vol 18 (2) ◽  
pp. 210
Author(s):  
I Wayan Widnyana ◽  
I Made Dauh Wijana ◽  
Almuntasir Almuntasir
Keyword(s):  
Financial Performance ◽  
Financial Constraints ◽  
Small And Medium Enterprises ◽  
Value Added ◽  
Financial Capital ◽  
Moderation Effect ◽  
And Performance ◽  
Medium Enterprises ◽  
The Relationship

Indonesia's small and medium enterprises (SMEs) are considered the backbone of the national economy. However, the fact that SMEs still contribute less to the national gross domestic product (GDP) in terms of value-added, need to be addressed. While previous studies mainly focused on financial (access) constraints as one of the major constraints faced by small enterprises which affect their growth and performances, this study aims to extend the relationship between capital and financial performance of Indonesia SMEs with the moderating effect of financial constraints and partners. This study is different from others as it uses a bigger panel dataset which is about 4.36 million SMEs in Indonesia and is the first to explore the role of financial partners comprehensively. Moreover, the panel regression model with geographic analysis unit uses as a data analysis method. The results of the study show that financial capital has a positive and significant effect on the financial performance of SMEs. Furthermore, while the moderation role of financial partners on the relationship between financial capital and financial performance of Indonesia SMEs was failed to prove, the negative moderation effect of financial constraints was able to prove in this study.

Financial disclosure and performance of microfinance institutions

2014 ◽  
Vol 10 (3) ◽  
pp. 314-337 ◽  
Author(s):  
Shakil Quayes ◽  
Tanweer Hasan
Keyword(s):  
Financial Performance ◽  
Least Squares ◽  
Least Squares Method ◽  
Financial Disclosure ◽  
Microfinance Institutions ◽  
Content Type ◽  
Three Stage Least Squares ◽  
And Performance ◽  
The Impact ◽  
The Relationship

Purpose – The purpose of this paper is to analyze the relationship between financial disclosure and the financial performance of microfinance institutions (MFIs). Design/methodology/approach – The paper utilizes ordinary least squares method to analyze the impact of disclosure on financial performance, an ordered probit model to investigate the possible effect of financial performance on disclosure and utilizes a three-stage least squares method to delineate the endogenous relationship between disclosure and financial performance of MFIs. Findings – The paper finds that better disclosure has a statistically significant positive impact on operational performance of MFIs; second, it also shows that improved financial performance results in better financial disclosure. Keeping the endogenous nature of the relationship between disclosure and performance, the paper uses a three-stage least squares method to show that disclosure and financial performance positively affect each other simultaneously. Research limitations/implications – The paper attempts to delineate a positive association between better disclosure on financial performance of MFIs, which can be used for developing a better disclosure policy by management, formulating more effective guidelines for disclosure by the stakeholders and mandating more appropriate laws and uniform disclosure practice by regulators. Originality/value – This is the first study that uses a large number of MFIs from 75 countries; second, it uses a uniform scale of designating a disclosure rating (assigned by MIX Market) to show the relationship between disclosure and performance. Finally, it uses three-stage least squares method to address the possible endogeneity between disclosure and performance.

scholarly journals The relationship between organisational culture and financial performance: Some South African evidence

1998 ◽  
Vol 29 (1) ◽  
pp. 30-40 ◽  
Author(s):  
W. Z. Van Der Post ◽  
T. J. De Coning ◽  
E. V.D.M. Smit
Keyword(s):  
Financial Performance ◽  
South African ◽  
Corporate Culture ◽  
Organisational Culture ◽  
Managerial Values ◽  
Beliefs And Values ◽  
The Individual ◽  
The Relationship ◽  
And Task

Although statistical evidence seems to be lacking. it is at present widely acknowledged that organisational culture has the potential of having a significant effect on organisational performance. An analysis of sustained superior financial performance of certain American organisations has attributed their success to the culture that each of them had developed. It has been proposed that these organisations are characterised by a strong set of core managerial values that define the ways in which they conduct business. how they treat employees, customers, suppliers and others. Culture is to the organisation what personality is to the individual. It is a hidden but unifying force that provides meaning and direction and has been defined as the prevailing background fabric of prescriptions and proscriptions for behaviour, the system of beliefs and values and the technology and task of the organisation together with the accepted approaches to these. Recent studies have indicated that corporate culture has an impact on a firm's long-term financial performance: that corporate culture will probably be an even more important factor in determining the success or failure of firms in the next decade; that corporate cultures that inhibit long-term financial performance are not rare and that they develop easily. even in firms that are staffed by reasonable and intelligent people; and that corporate cultures, although difficult to change, can be made more performance enhancing. The purpose of this study, therefore, was to establish the statistical relationship between organisational culture and financial performance.

Corporate governance and performance of medium-sized firms in Nigeria: does sustainability initiative matter?

2020 ◽  
Vol 20 (3) ◽  
pp. 401-427
Author(s):  
Babatunji Samuel Adedeji ◽  
Tze San Ong ◽  
Md Uzir Hossain Uzir ◽  
Abu Bakar Abdul Hamid
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Financial Reporting ◽  
Structural Equation ◽  
Negative Impact ◽  
Positive Impact ◽  
Mediating Effect ◽  
Content Type ◽  
And Performance ◽  
The Relationship

Purpose The non-existence of the corporate governance (CG) concept for practices by non-financial medium-sized firms (MSFs) in Nigeria informed. This study aims to determine whether CG practices influence firms’ performance and whether sustainability initiative (SI) mediates the relationship between CG and MSFs’ performance in Nigeria. Design/methodology/approach A total of 300 firms were selected on convenience sampling basis from South Western Nigeria using a structured questionnaire. The authors used Statistical Package for Social Sciences for exploratory data analysis and hypotheses were tested using covariance-based structural equation modelling. Findings The results show that CG has a significant positive effect on performance [financial performance (FNP) and non-financial performance (NFP)] and SI. SI has a mixed impact on performance, e.g. a significant positive impact on NFP but insignificant negative impact on FNP. Similarly, SI has a combined mediating effect in the relationship between CG and performance, e.g. fully mediates CG → NFP and does not mediate CG → FNP. Firms are to invest in social and environmental initiatives substantially. CG codes will complement the International Financial Reporting Standards for MSFs. Research limitations/implications This study supports the assumptions of theories (institutional, stakeholder and agency) as the basis for the usage of multiple approaches to determine the outcome of hypotheses, especially in developing climes. Practical implications The study contributes to CG and performance literature by examining the mediating effects of SI. The paper also shows the necessity to emphasise NFP aspect. Policymakers should evolve CG codes to encourage stakeholders to believe more in the corporate existence of MSFs for strengthening capital-base and quality personnel engagement. Originality/value To the best of the authors’ knowledge, this is one of the first empirical attempts showing the evidence on the relationship between CG and NFP in Nigeria.

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