scholarly journals Risk-Taking and Performance of Small and Medium-Sized Enterprises: Lessons from Tanzanian Bakeries

2020 ◽  
Vol 12 (3(J)) ◽  
pp. 1-22
Author(s):  
Kafigi Jeje
Keyword(s):  
Economic Growth ◽  
Risk Management ◽  
Risk Taking ◽  
Policy Development ◽  
Socioeconomic Development ◽  
Management Practices ◽  
Qualitative Content Analysis ◽  
Principal Component ◽  
Sampling Technique ◽  
Entrepreneurial Strategies

SMEs are the major drivers of socioeconomic development of many economies. In order to influence economic growth, SMEs must be capable of enhancing their competiveness, growth, and sustainability. These capabilities are acquired by SMEs that understand and adopt entrepreneurial strategies that work. There is abundant literature confirming that one of these entrepreneurial strategies include risk-taking practices. SMEs are still facing challenges to understand and apply the right risk-taking strategies that influence their performance. We therefore characterise risk-taking as risk planning, risk controlling, and strategic risk initiatives, and seek to establish their contribution on SME performance. This study draws lessons from the risk management practices of small and medium-sized bakeries in Tanzania where agriculture, a sector that directly relates with bakery business, is one of the leading sectors in driving economic growth. We adopt a multi-stage sampling technique and receive responses from 161 questionnaires, and 20 in depth interviews from bakery owners/managers throughout Tanzania. The principal component analysis, qualitative content analysis (manifest analysis), and the moderator analysis are used in analyzing these data. We ascertain that both the firm age, and the gender, of the owner/manager moderate the relationship between risk-taking strategies and SME performance. We argue that SMEs have the responsibilities of improving their risk-taking practices and capabilities in order to drive their competitiveness. Additionally, SMEs need to employ their efforts and resources in supporting their risk management initiatives, and integrate them in their business operations, and policy development practices, and ultimately advance their sustainability.

scholarly journals KNOWLEDGE MANAGEMENT AND PERFORMANCE OF SMALL AND MEDIUMSIZED ENTERPRISES: LESSONS FROM TANZANIAN BAKERIES

2020 ◽  
Vol 8 (2) ◽  
pp. 75-93
Author(s):  
Kafigi Jeje ◽  
Keyword(s):  
Knowledge Management ◽  
Policy Development ◽  
Management Practices ◽  
Qualitative Content Analysis ◽  
Management Strategies ◽  
Principal Component ◽  
Sampling Technique ◽  
Public And Private ◽  
Multi Stage ◽  
The Right

Small and Medium-sized Enterprises around the globe have for years been struggling to realize competitiveness. Literature proposes knowledge management as one of the drivers of their performance. However, most of these SMEs still face challenges in ascertaining the right knowledge management strategies that would influence their performance and competitiveness. The study seeks to find the contribution of knowledge management strategies on SME performance. It intends to draw lessons from the operations and practices of small and mediumsized bakeries in Tanzania. It has adopted a mixed research methods, and a multi-stage sampling technique and ultimately received responses from 161 questionnaires, and 20 in depth interviews from bakery owners/managers throughout Tanzania. By employing a moderator analysis which is preceded by principal component analysis, and the qualitative content analysis (manifest analysis), the study is able to establish that both the owner/manager’s education, and business experience, moderate the relationship between knowledge management strategies and SME performance. This study’s argument lies in the fact that the knowledge management practices need to be enhanced in order to drive SME competitiveness. The study also argues that the initiatives to enhance these practices need the support of all relevant players in SME development, including the policy development practitioners from both public and private sectors.

The Impact of Shariah Governance and Corporate Governance on the Risk Management Practices: Evidence from Local and Foreign Islamic Banks in Malaysia

2018 ◽  
Vol 15 (2) ◽  
pp. 1-20
Author(s):  
Sabri Embi ◽  
Zurina Shafii
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Management Practices ◽  
Principal Component ◽  
T Test ◽  
The Body ◽  
Primary Data ◽  
Islamic Banks ◽  
Shariah Governance ◽  
The Impact

The purpose of this study is to examine the impact of Shariah governance and corporate governance (CG) on the risk management practices (RMPs) of local Islamic banks and foreign Islamic banks operating in Malaysia. The Shariah governance comprises the Shariah review (SR) and Shariah audit (SA) variables. The study also evaluates the level of RMPs, CG, SR, and SA between these two type of banks. With the aid of SPSS version 20, the items for RMPs, CG, SR, and SA were subjected to principal component analysis (PCA). From the PCA, one component or factor was extracted each for the CG, SR, and RMPs while another two factors were extracted for the SA. Primary data was collected using a self-administered survey questionnaire. The questionnaire covers four aspects ; CG, SR, SA, and RMPs. The data received from the 300 usable questionnaires were subjected to correlation and regression analyses as well as an independent t-test. The result of correlation analysis shows that all the four variables have large positive correlations with each other indicating a strong and significant relationship between them. From the regression analysis undertaken, CG, SR, and SA together explained 52.3 percent of the RMPs and CG emerged as the most influential variable that impacts the RMPs. The independent t-test carried out shows that there were significant differences in the CG and SA between the local and foreign Islamic banks. However, there were no significant differences between the two types of the bank in relation to SR and RMPs. The study has contributed to the body of knowledge and is beneficial to academicians, industry players, regulators, and other stakeholders.

Evaluating the Effectiveness of Information Security Governance Practices in Developing Nations

2013 ◽  
Vol 4 (1) ◽  
pp. 27-43 ◽  
Author(s):  
Winfred Yaokumah
Keyword(s):  
Risk Management ◽  
Resource Management ◽  
Information Security ◽  
Performance Measurement ◽  
Management Practices ◽  
Strategic Alignment ◽  
Sampling Technique ◽  
Security Governance ◽  
Governance Effectiveness ◽  
Information Security Governance

The purpose of this empirical study is to evaluate the extent to which information security governance domain practices: strategic alignment, value delivery, resource management, risk management, and performance measurement relate to information security governance effectiveness. Random sampling technique was employed and data were collected via web survey from Ghanaian organizations. Employing three multiple regression models, the results showed there were statistically significant positive linear relationship between information security governance domain practices and information security governance effectiveness. Overall, the model produced R2 = .505, indicating that 50.5% of the variance in information security governance effectiveness was explained by information security governance domain practices. The results highlighted resource management, performance measurement and risk management practices as the predictors of organizational information security governance effectiveness while strategic alignment contributed only marginally to the models. Therefore, to attain higher information security governance effectiveness, organizations should focus on strategic alignment between the business and information security attributes.

Knowledge Management and Entrepreneurship Cases in India

2010 ◽  
pp. 325-346 ◽  
Author(s):  
Neeta Baporikar
Keyword(s):  
Knowledge Management ◽  
Risk Taking ◽  
Policy Development ◽  
Management Practices ◽  
Advanced Technology ◽  
Poor Knowledge ◽  
Competitive Edge ◽  
Knowledge Management Practices ◽  
National Economies ◽  
Research And Policy

Entrepreneurs in general, do contribute to the development of national economies. We need their innovation and risk-taking to create wealth, generate employment and fuel the economy. Hence, knowledge management – both soft and hard is crucial. The benefits of great entrepreneurial venture using the most advanced technology can be nullified by poor knowledge management practices. It is knowledge and management that is the link between success and growth. The key objective of this chapter is to explain different perspectives on what is meant by the Knowledge Management (KM) in relation to entrepreneurship through two cases from India. It is essential that research and policy development fully take into account the differing perspectives of entrepreneurship and knowledge as no single definition fully captures the concepts, nor their underlying assumptions. The chapter focuses on understanding KM as a tool for developing competitive edge and identifies areas of KM application for entrepreneurship success.

scholarly journals Risk Management Practices by South African Universities: An Annual Report Disclosure Analysis

2021 ◽  
Vol 14 (5) ◽  
pp. 195
Author(s):  
Inga Sityata ◽  
Lise Botha ◽  
Job Dubihlela
Keyword(s):  
Risk Management ◽  
South African ◽  
Management Practices ◽  
Qualitative Content Analysis ◽  
Annual Reports ◽  
Risk Governance ◽  
Exploratory Research ◽  
Risk Disclosure ◽  
South African Universities ◽  
The Impact

This paper assesses risk management practices at South African universities by analyzing the extent of risk management disclosure recommended by King IV and the level of risk governance maturity. This study was motivated by #Feesmustfall disruptions, which pointed to the lack of effective risk management, preparedness for volatility and increased scrutiny by stakeholders. A qualitative content analysis using a risk disclosure checklist was conducted on 18 annual reports and analyzed using an exploratory research design. The results revealed that over 80% of the sampled South African universities have disclosed most of their risk management practices, showing an improved disclosure due to King IV’s “apply and explain” philosophy as introduced in 2016. However, there were areas of improvement identified, such as: defining and approval of risk appetites and tolerance; development and implementation of business continuity plans; confirming the unpreparedness for volatility; annual revision of policies; and integration of risk management into the culture and daily activities of the university. This paper builds upon previous studies that highlighted a lack of detailed disclosures in South African organizations’ annual reports. This study also provides interesting insights into the impact of social events on organizational practices and supports the notion that legislative accounting practices should echo stakeholders and societal expectations.

Adaptation tipping points and opportunities for urban flood risk management

2015 ◽  
Vol 6 (4) ◽  
pp. 695-710 ◽  
Author(s):  
Nadia Koukoui ◽  
Berry Gersonius ◽  
Paul P. Schot ◽  
Sebastiaan van Herk
Keyword(s):  
Climate Change ◽  
Risk Management ◽  
Flood Risk ◽  
Policy Development ◽  
Management Practices ◽  
Heat Waves ◽  
Drainage System ◽  
Flood Risk Management ◽  
Tipping Points ◽  
Urban Flood

The effects of climate change are expected to increase the frequency and magnitude of floods, droughts and heat waves. An emerging method termed adaptation tipping point – opportunity (ATP-O) assesses a system's climate-incurred tipping points and uses opportunities arising from urban developments to introduce adaptation strategies while reducing investment costs. The objective of this research was to apply the ATP-O method to the city of Dordrecht in the Netherlands. The results show that the alternative adaptation strategy proposed (an overland drainage system) would be effective in coping with the effects of climate change where the current management strategy (disconnection of impervious surfaces from sewer systems) fails to do so. The ATP-O also proved helpful in identifying opportunities to adapt at lower costs. This research stimulated discussions between stakeholders on performance objectives, policy development, investment strategies, and flood risk management practices. The sensitivity analysis performed to support such discussion revealed that small variations in acceptability thresholds, associated with policy objectives, can have significant impact on ATP occurrence and timing.

The state of risk management in business schools

2016 ◽  
Vol 35 (5) ◽  
pp. 606-622 ◽  
Author(s):  
Ulrich Hommel ◽  
Wenwei Li ◽  
Anna M. Pastwa
Keyword(s):  
Risk Management ◽  
Risk Taking ◽  
Management Practices ◽  
Business Schools ◽  
Rent Seeking ◽  
Risk Identification ◽  
The State ◽  
Corporate Sector ◽  
Content Type ◽  
Risk Management Process

Purpose – The spread of entrepreneurial rent seeking (or entrepreneurialism for short) and market-based performance measurement (accreditation, rankings) have transformed many business schools into risk-taking organizations. The establishment of formal risk management activities would represent the fitting counterpart to this development. The purpose of this paper is to examine the state of risk management activities in business schools and evaluates the presence of discrepancies from first-best practices found in the corporate sector. Design/methodology/approach – The data for this study were collected through a structured questionnaire addressed to heads of internationally active business schools in cooperation with a major international accreditation provider. Non-parametric and parametric methods (logistic regression) were used to analyze the formalization of risk management in business schools, in particular the differentiating role of entrepreneurial rent seeking and international accreditation. Findings – Risk management is still in the early stages of formalization compared to the corporate sector. The results indicate that entrepreneurial rent seeking does not encourage the institutional establishment of risk management in business schools, while holding international accreditation has the opposite effect. Practical implications – Risk management has become a focus area of regulators and accreditation agencies. The rising number of business schools struggling financially also serves as evidence that risk taking is frequently not matched by formal risk management policies (further supported by descriptive statistics of the survey published separately). The largely uncontested statement of the R. Lyons, Dean of the Haas School/Berkeley, that 50 per cent of business schools will disappear within the next five to ten years can only be rationalized in the context of risk not being appropriately addressed by business schools. Originality/value – The paper represents the first empirical study analyzing risk management practices in business schools. The study design follows the approach commonly employed in the corporate risk management literature to capture the design of the risk management process covering governance aspects as well as approaches to risk identification, risk assessment, risk mitigation and performance controlling.

Credit and Punishment: Are Corporate Bankers Disciplined for Risk-Taking?

2020 ◽  
Vol 33 (12) ◽  
pp. 5706-5749 ◽  
Author(s):  
Janet Gao ◽  
Kristoph Kleiner ◽  
Joseph Pacelli
Keyword(s):  
Risk Management ◽  
Risk Taking ◽  
Management Practices ◽  
Risk Exposure ◽  
Data Set ◽  
Large Sample ◽  
Corporate Credit ◽  
Loan Portfolios ◽  
Future Risk ◽  
Employment Histories

Abstract We examine whether bankers face disciplining consequences for structuring poorly performing corporate loans. We construct a novel data set containing the employment histories and loan portfolios of a large sample of corporate bankers and find that corporate credit events (i.e., downgrades, defaults, bankruptcies) increase banker turnover. The effect is pronounced when bankers issue loans with loose terms or experience severe losses. Credit events prompt bankers to adopt stricter future risk management practices, such as offering restrictive covenant packages. Overall, our findings are consistent with banks disciplining employees as a means to manage their own risk exposure.

scholarly journals An Assessment of Credit Risk Management Practices of Adansi Rural Bank Limited

2018 ◽  
Vol 10 (11) ◽  
pp. 110 ◽  
Author(s):  
Alexander Ayertey Odonkor
Keyword(s):  
Risk Management ◽  
Credit Risk ◽  
Management Practices ◽  
Secondary Data ◽  
Sampling Technique ◽  
Management Policy ◽  
Primary Data ◽  
Credit Risk Management ◽  
History Of ◽  
Management Policies

Rural banks in Ghana are not exempted from the risk exposures associated with managing credit. Given their importance to the economy, appropriate measures should be taken to mitigate credit risk exposures of rural banks in the country. The study critically examines the credit risk management practices of rural banks in Ghana making reference to Adansi Rural Bank Limited. The study was carried out to examine the credit management practices, credit policies and strategies for managing credit as well as challenges faced in this practice and to recommend solutions that will mitigate the credit risk exposures of Adansi Rural Bank Limited. The researcher used a purposive sampling technique to select a sample size of forty respondents which comprised of branch managers and credit officers from four different branches of the rural bank. The researcher used a well structured questionnaire and a face to face interview to collect primary data for this study. The researcher employed both primary and secondary data in the study. Descriptive statistical tools were used in analysing the data collected. The researcher discovered that Adansi Rural Bank Limited had implemented a rigorous credit risk management policy. This included; loan appraisal, use of collateral and checking the credit history of borrowers. The results of the study revealed that, rural banks that have implemented rigorous credit risk management policies were exposed to few challenges in managing credit risk as compared to rural banks with poorly implemented credit risk management policies. This affirms the point that a comprehensive credit risk management system should be adopted and implemented well by rural banks in Ghana.

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