Do Export Activities Improve Small Firm Performance? Evidence from Indonesia

Purpose The purpose of this paper is to evaluate the importance of innovation for the performance of small firms in the construction sector. Furthermore, this paper also examines the influence of several factors related to entrepreneurial capital (entrepreneurial value, business strategy, experience and training) on small firm performance in the sector. Design/methodology/approach This study uses primary data of 255 small firms in the construction sector under the category of small contractors (G1). Stratified sampling method was utilized for data collection, which is then analyzed using the descriptive and multiple regression analysis to achieve the objectives of the study. Findings The findings showed that the factor of innovation and several factors related to entrepreneurial capital (entrepreneurial value, business strategy and business experience) have a significant positive relationship with the performance of small firms in the construction sector. However, factor of training indicated a significant negative correlation with small firm performance. Research limitations/implications Although this study found a significant impact in explaining the factors that affect performance, particularly in the construction sector, it only takes into account only some internal factors (entrepreneurial capital and innovation). Proposed future research should consider a variety of other factors mainly related to external factors, such as economic development, growth potential, industry structure, internal social capital and government policy. Practical implications This study provides clear implications related to the theory and contributions to the literature related to research in the construction sector. The study also provides invaluable insightfulness to various stakeholders including policy makers, institutional support and small contractors about the importance of innovation and entrepreneurial capital in determining the performance of small firms in the sector. Originality/value The results provide supportive evidence that entrepreneurial values and business strategy are important internal factors in determining the performance of a firm, which is consistent with the theory of resource-based view. Experience and training factors, as indicators of firm performance, are articulated in the theory of human capital. Hence, the findings not only can strengthen both the theories but also make a significant contribution to the literature of the study, particularly in the construction sector.

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Charismatic Influence and Organizing Capability as Unique Managerial Self-efficacies for Effective Small Firm Performance in Developing Economy

Advances in Human Factors, Business Management, Training and Education - Advances in Intelligent Systems and Computing ◽

10.1007/978-3-319-42070-7_38 ◽

2016 ◽

pp. 419-431

Author(s):

Mohammed-Aminu Sanda

Keyword(s):

Firm Performance ◽

Small Firm ◽

Developing Economy

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Private firm performance: do women directors matter?

Meditari Accountancy Research ◽

10.1108/medar-03-2021-1233 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Mahnoor Sattar ◽

Pallab Kumar Biswas ◽

Helen Roberts

Keyword(s):

Firm Performance ◽

Performance Measures ◽

Small Firm ◽

Gender Diversity ◽

Private Firm ◽

Private Firms ◽

Women Directors ◽

Content Type ◽

Firm Profitability ◽

Board Gender Diversity

Purpose This paper aims to examine the relationship between board gender diversity and private firm performance. Design/methodology/approach The authors test the association between board gender diversity and private firm performance by estimating pooled multivariate regressions using an unbalanced panel data set of 115,253 firm-year observations. Findings The authors find that younger, less busy and local women directors enhance private firm performance. Firms with 40% or more women directors report triple the economic benefits compared to boards with at least 20% women directors. Considering firm size, women directors significantly increase small firm profitability, and the effect is more pronounced for high-risk firms. Greater board gender diversity enhances small firm performance as the monitoring role of women directors benefits the firm even in the presence of busy men directors. Consistent with the agency theory framework, the authors find that women directors improve small firm profitability in the presence of agency costs. Research limitations/implications Due to the lack of availability of data about private firms, many factors are not directly observable. The analysis uses accounting-based performance measures that may be subject to managerial discretion. Nevertheless, the authors report highly significant results using cash-based performance measures that substantiate the overall findings. Practical implications The results of the present study point to the need for private firms to increase board gender diversity and consider women director busyness, age, nationality and firm size when making board director appointments. Originality/value This study adds to the scarce existent literature investigating private firms. The results contribute to the understanding of gender-diverse boards as well as the attributes of women directors that enhance private firm performance.

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Organizational Characteristics and Small Firms’ Performance Revisited

Entrepreneurship Theory and Practice ◽

10.1177/104225878801300207 ◽

1989 ◽

Vol 13 (2) ◽

pp. 49-64 ◽

Cited By ~ 33

Author(s):

Paul B. Cragg ◽

Malcolm King

Keyword(s):

Firm Performance ◽

Financial Performance ◽

Small Firm ◽

Small Firms ◽

Causal Model ◽

Organizational Characteristics ◽

Future Research ◽

Firm Financial Performance ◽

Mixed Support ◽

Research Studies

Numerous studies have attempted to gain a greater understanding of small firm performance with the intent of isolating factors which are important for success. The studies, some with serious limitations, suggest that many different variables are Important to success. A further study of 179 small, metal goods manufacturers enabled some of the specific relationships to be re-examined, but with mixed support for previous findings. Various suggestions are made for future research studies. A causal model of small firm financial performance is proposed.

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