scholarly journals The Role of Risk Management on Financial Performance of Small and Medium Enterprises in Kenya

2017 ◽  
Vol 6 (1) ◽  
pp. 2125-2130
Keyword(s):  
Risk Management ◽  
Financial Performance ◽  
Small And Medium Enterprises ◽  
Medium Enterprises

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.

scholarly journals The role played by supply chain strategies and supply chain integration in financial performance. An empirical study in Peru

2021 ◽  
Author(s):  
Francisco Alejandro Pérez Gilabert ◽  
Jorge Luis Pena Acevedo
Keyword(s):  
Supply Chain ◽  
Financial Performance ◽  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Supply Chain Design ◽  
Supply Chain Integration ◽  
Equation Modeling ◽  
Supply Chain Strategy ◽  
Medium Enterprises

The objective of this study is to develop and test a framework for the role that supply chain strategy (SCS) and supply chain integration have in a firm’s financial performance and to increase the understanding of the role that these factors play in supply chain design. Structural equation modeling was used to test these relationships based on data obtained from small and medium exporting enterprises in Peru. This study responds to a gap in understanding the role of supply chains in small and medium enterprises (SMEs) and how firms in Latin America, especially in Peru, apply supply chain concepts. Findings indicate that companies should prioritize their integration efforts depending on the type of supply chain strategy. Likewise, results show that customer integration is directly related to a firm’s financial performance. This study responds to the need to understand the development of supply chain strategies and the generation of competitive advantage in Peruvian export-manufacturing SMEs.

scholarly journals Internal Control and SMEs’ Sustainable Growth: The Moderating Role of Multiple Large Shareholders

2019 ◽  
Vol 12 (4) ◽  
pp. 182 ◽  
Author(s):  
Liangcheng Wang ◽  
Yining Dai ◽  
Yuye Ding
Keyword(s):  
Risk Management ◽  
Internal Control ◽  
Small And Medium Enterprises ◽  
Sustainable Growth ◽  
Sensitivity Tests ◽  
Large Shareholders ◽  
Medium Enterprises ◽  
The Relationship ◽  
Moderating Role

Small and medium enterprises (SMEs) face more risks for sustainable growth due to a lack of resources than large firms in emerging economies. Hence, it is more likely for SMEs to look to risk management for survival in turbulent markets. As a tool of risk management, whether internal control indeed has contributions to the sustainable growth of SMEs, particularly conditional on multiple large shareholders, is empirically unexplored. Using a sample of SMEs listed in China, this study examines the relationship between internal control and sustainable growth, and assesses a moderating role of multiple large shareholders. The results show that effective internal control significantly promotes SMEs to achieve sustainable growth, and the effect is moderated by multiple large shareholders, suggesting that the role of internal control is more prominent in SMEs with multiple large shareholders. These results are robust to a battery of sensitivity tests. This study extends the literature by providing empirical evidence on the role of internal control in SMEs’ sustainable growth.

scholarly journals THE IMPACT OF LEARNING ORIENTATION ON FINANCIAL PERFORMANCE WITH NON-FINANCIAL PERFORMANCE AS A MEDIATING VARIABLE

2018 ◽  
Vol 1 (1) ◽  
pp. 9
Author(s):  
Vicky F Sanjaya
Keyword(s):  
Financial Performance ◽  
Small And Medium Enterprises ◽  
Learning Orientation ◽  
Medium Enterprises ◽  
The Impact ◽  
The Relationship

This study aims to see the impact of learning orientation on the performance of companies in financial and non-financial, and see the role of non-financial performance as a mediating variable. No relevant profit theory and still limited research that saw the company's performance from both sides of the financial and non-financial to be a gap for doing research. The sample in this study is small and medium enterprises (SMEs) domiciled in the Province of Yogyakarta (DIY). The number of samples studied is as many as 113 respondents consisting of five districts / cities in DIY. The results of this study indicate that the orientation of learning has a positive and significant impact on financial performance and non-financial companies. In addition, this study also gives results that non-financial performance mediates some of the relationship between learning orientation to financial performance.Keywords: learning orientation, financial performance, non-financial performance, SMEs.

SME Financial Management

2013 ◽  
pp. 330-342 ◽  
Author(s):  
Edna Stan-Maduka
Keyword(s):  
Risk Assessment ◽  
Risk Management ◽  
Financial Management ◽  
Business Processes ◽  
Small And Medium Enterprises ◽  
Risk Mitigation ◽  
Simplified Approach ◽  
Medium Enterprises ◽  
Operational Processes

Regulators’ efforts to create awareness of risk management in Small and Medium Enterprises (SMEs) have heightened since the 2008 recession which affected many economies. The objective has been to stress the fundamental role of risk assessment and mitigation in the protection of business processes and profitability of SMEs. This has been hard to achieve due to the inadequate financial and operational processes within small and medium enterprises. This chapter presents an exploration of risk management in SMEs and a simplified approach to SME risk assessment and operational risk mitigation.

scholarly journals Could more innovation output bring better financial performance? The role of financial constraints

2022 ◽  
Vol 8 (1) ◽  
Author(s):  
Benlu Hai ◽  
Ximing Yin ◽  
Jie Xiong ◽  
Jin Chen
Keyword(s):  
Financial Performance ◽  
Financial Constraints ◽  
Small And Medium Enterprises ◽  
Economic Benefits ◽  
Curvilinear Relationship ◽  
Economic Returns ◽  
Innovation Output ◽  
Medium Enterprises ◽  
The Relationship

AbstractInnovation scholars highlight the economic benefits to firms, while research findings on the relationship between innovation output and economic returns remain mixed. In this study, we develop the profiting from innovation (PFI) framework and address the crucial role of financial constraints in the relationship between innovation output and financial performance. We argue that the liability of newness differentiates firms’ financial performance during the commercialization of innovation, leading to a U-shaped relationship between firms’ innovation output and financial performance. We further document the moderating impact of individual financial constraints (IFC) and market-based financial constraints (MFC) on this curvilinear relationship. Empirical tests based on the 142,972 firm-year observations of the multi-source dataset of Chinese manufacturing firms from 1999–2009 support our hypotheses. The additional analysis shows that non-state-owned enterprises and small and medium enterprises benefit more from the synergistic effect of reductions of IFC and MFC than state-owned enterprises and large firms. Our study enriches the literature of the PFI framework by uncovering the mechanism between innovation output and economic returns where financial constraints play an essential role. To the best of our knowledge, we are among the first to investigate the processes and mechanisms between innovation output and financial performance, generating novel insights for business practitioners and policymakers.

scholarly journals PENGARUH KINERJA FINANSIAL UMKM TERHADAP PENGEMBANGAN EKONOMI LOKAL DI KABUPATEN SIDOARJO

2020 ◽  
Vol 1 (1) ◽  
pp. 163-168
Author(s):  
Julinda Prastika Pratama ◽  
Teguh Purwanto ◽  
Aji Prasetyo
Keyword(s):  
Financial Performance ◽  
Random Sampling ◽  
Total Population ◽  
Small And Medium Enterprises ◽  
Sampling Technique ◽  
Simple Random Sampling ◽  
Local Economy ◽  
Business Units ◽  
Medium Enterprises

The business in Indonesia cannot be separated from the role of Micro, Small and Medium Enterprises (MSMEs) in the economy of a region. This study describes the assessment in a business unit's financial performance using NPM and ROE analysis methods The total population in this study was 448 business units that have been registered at the Department of Cooperatives and SMEs in Sidoarjo Regency and obtained a sample of 82 business units with a sampling technique that is simple random sampling. The results of hypothesis testing show that the assessment and picture of financial performance influences the development of the local economy in Sidoarjo Regency.

Towards a Framework to Improve IT Security and IT Risk Management in Small and Medium Enterprises

2020 ◽  
pp. 341-355
Author(s):  
Stephan Mühe ◽  
Andreas Drechsler
Keyword(s):  
Risk Management ◽  
Small And Medium Enterprises ◽  
Design Science ◽  
Science Research ◽  
Essential Elements ◽  
It Risk Management ◽  
The Social ◽  
Medium Enterprises ◽  
It Risk

In this article, an IT risk management (ITRM) framework for small and medium enterprises (SMEs) is designed and evaluated. The framework's objective is to provide an uncomplicated and accessible ITRM approach primarily aimed at SMEs without a dedicated ITRM. The framework combines essential elements from three leading (IT) risk management frameworks: COBIT 5 for Risk, ISO/IEC 27005:2011 and M_o_R. The framework was developed by employing a design science research methodology for social artefacts and evaluated in two healthcare SMEs. The ITRM framework itself was assessed as comprehensible and potentially useful. Simultaneously, over-arching IT governance issues prevented the immediate framework implementation in the two cases. IT management researchers can draw on this article's findings to better understand the role of the social context in SMEs to achieve an effective practical impact. Practitioners in SMEs can draw on the current state of the framework for an initial ITRM implementation or to increase their current ITRM approaches' maturity.

SME Financial Management

2013 ◽  
pp. 1107-1119
Author(s):  
Edna Stan-Maduka
Keyword(s):  
Risk Assessment ◽  
Risk Management ◽  
Financial Management ◽  
Business Processes ◽  
Small And Medium Enterprises ◽  
Risk Mitigation ◽  
Simplified Approach ◽  
Medium Enterprises ◽  
Operational Processes

Regulators’ efforts to create awareness of risk management in Small and Medium Enterprises (SMEs) have heightened since the 2008 recession which affected many economies. The objective has been to stress the fundamental role of risk assessment and mitigation in the protection of business processes and profitability of SMEs. This has been hard to achieve due to the inadequate financial and operational processes within small and medium enterprises. This chapter presents an exploration of risk management in SMEs and a simplified approach to SME risk assessment and operational risk mitigation.

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