scholarly journals The Impact of Outsourcing on the Performance of Small and Medium Enterprises in Vietnam

2021 ◽  
Vol 6 (3) ◽  
pp. 208-215
Author(s):  
Nguyen Manh Thang

This study examines the impact of using outsourced services on the performance of small and medium enterprises (SMEs) in Vietnam. The primary data used to analyze this study's main objectives were collected by the survey with the structured questionnaire and the expert interview with semi-structured interview guidelines. A total of 742 SMEs using outsourced services in the study area participated in the survey. The study employs Cronbach’s alpha test, exploratory factor analysis (EFA), confirmatory factor analysis (CFA), structural equation modelling (SEM), and multiple-group analysis for variables measurements and model testing. The study also investigates the influences of the degree of outsourcing on the enterprise’s performance. The results show that the degree of outsourcing has a low impact on financial performance, particularly ROS, ROE, and ROA (R2 = 0.013). Also, the degree of outsourcing has impacts on non-financial performance. The multiple-group analysis results indicate the different influences of the outsourcing degree on the different types of enterprises’ performance. The degree of outsourcing has a stronger impact on micro-enterprises' performance than the small and medium-sized enterprises. The commercial and service enterprises have higher performance when outsourcing than others. The outsourcing degree has a stronger impact on the performance of the enterprises that operated for more than nine years than others. The results show that there are different influences of the outsourcing degree on the performance of the enterprises that have different outsourcing situations. According to the findings, this study proposes the three main managerial implications to improve outsourcing effectively, such as strengthening outsourcing risk management, deciding on outsourcing depend on the enterprises’ characteristics, and managing the relationship between stakeholders.

2020 ◽  
Vol 9 (3) ◽  
pp. 26-41
Author(s):  
Colin Agabalinda ◽  
Alain Vilard Ndi Isoh

The study investigated the direct effects of financial literacy (knowledge, skills, and attitudes) on financial preparedness for retirement and the moderating effect of age among the small and medium enterprises in Uganda. Primary data was collected from a sample of n = 380 selected from the SME workforce. Descriptive analysis was run on SPSS, while validity and reliability of the measurement items yielded satisfactory composite reliability scores and average variance explained (AVE) scores for all items. Structural equation modelling (SEM) was used to test the hypotheses and multi-group analysis conducted to test for the moderating effect of age on the relationship between financial literacy and retirement preparedness. The results revealed that knowledge and skills were significant predictors of retirement preparedness. However, ‘attitude' was not a significant predictor, and age had no moderating effect on the relationship between the study variables. These findings present practical implications for policymakers and financial educators in a developing country context.


2020 ◽  
Vol 29 (1) ◽  
pp. 38-52
Author(s):  
Ishaq Ahmad Dar ◽  
Mridula Mishra

In emerging economies, small and medium enterprises (SMEs) contribute a sizeable proportion of exports and manufacturing output, and millions of people are provided employment. Entrepreneurs and these small firms are influenced by many contextual factors in their operations. Social capital factors, both formal and informal social networks, are considered influential to their performance. This study uses regression analysis to study the impact of social capital dimensions on financial performance of SMEs. Primary data were collected through survey of SMEs of India. It was found that out of five social capital dimensions only four dimensions, such as complicity, status, social relations and personal relations, positively impact the financial performance of SMEs, whereas one dimension ‘Interlinking and family support’ had no significant impact on financial performance of SMEs. The implications of these findings are discussed.


2018 ◽  
Vol 1 (1) ◽  
pp. 14
Author(s):  
Muslimah Mahmudah ◽  
Deden Dinar Iskandar

This study aims to analyze the impact of tax morale on Micro, Small, and Medium Enterprises (MSMEs) tax complianceSemarang City as the case study. This study uses primary data generated from 117 samples of MSMEs in Semarang. Data analysis is performed  using binary logistic regression analysis. The results showed that environmental, institutional, ethical, business, and business size variables significantly influence MSMEs tax compliance. On the other hand, variables whose effect on tax compliance is not statistically significant include happiness, religiosity, gender, age, education, and marital status.


10.29007/dkzg ◽  
2018 ◽  
Author(s):  
Remedios Hernández Linares ◽  
María José Naranjo ◽  
Héctor Sánchez Santamaría ◽  
Mercedes Rico García ◽  
Laura Fielden Burns ◽  
...  

Over the last twenty years the impact of language in international and multinational companies has attracted significant scholarly attention, which is reflected in the growing literature. However, and despite the fact that small and medium enterprises (SMEs) constitute the engine of numerous economies worldwide, the impact of foreign languages on SMEs’ performance remains understudied. This is especially intricate because, considering that SMEs often have fewer resources, the commitment of such resources to language acquisition and foreign language education can only be justified in the case of improved performance. To address this gap, the objective of our research aims to get insights whether and how the domain of a foreign language (mainly English) affects SMEs’ performance. For this purpose, we perform an exploratory empirical study based on data collected through a telephone questionnaire during the first semester of 2017. A group of private Spanish SMEs constitutes our sample. Our work presents the results of the statistical analysis of these primary data, and contributes to a more nuanced perspective on language utility for organizational performance.


2017 ◽  
Vol 9 (1) ◽  
pp. 23-30 ◽  
Author(s):  
Saqib Muneer ◽  
Rao Abrar Ahmad ◽  
Azhar Ali

The importance of Small and medium enterprises (SMEs) towards economic development and growth is considerable. Some SMEs are facing difficulties to their development due to the lack of financial resources and management experience. The objective of this study is to check the relationships of financial management practices on profitability of small and medium enterprises and also to check the impact of agency cost on this relationship. This study consists of data analysis of two hundred SMEs from Faisalabad Pakistan. The study used primary data predominantly. SPSS 23 is used for descriptive analysis and Structural Equation Model (SEM) through Partial Least Square (PLS) 3 for hypothesis testing. The findings of this study indicate the presence of positive relationship between financial management practices and SMEs profitability but agency cost as a moderator has no effect on this relationship. The study strongly recommends higher adherence to financial management practices. Policy makers, developments partners, owners, and managers of SMEs may use these findings for sustainability of their business in Pakistan.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Naveen Virmani ◽  
Sasadhar Bera ◽  
Rohit Kumar

PurposeThe purpose of the study is two-fold. First, to find out the different barriers that prevent the implementation of sustainable manufacturing practices in the case of Micro, Small and Medium Enterprises (MSMEs). Second, quantifying the relative intensity of these barriers to understand the importance and dependence power of the observed variables.Design/methodology/approachPrimary data were collected via structured questionnaires from 150 Indian MSMEs working in the automobile industry. Exploratory factor analysis (EFA) and confirmatory factor analysis (CFA) was performed. Finally, barriers are ranked using graph theory and matrix approach (GTMA), considering the inheritance and interaction among the observed variables.FindingsThere are a total of 22 barriers to “sustainable manufacturing”. EFA and CFA models confirmed four different categories of barriers. In order of importance, they are ranked as – production and operations related; organization related; collaboration related; and government rules and regulations.Practical implicationsThe findings show that there are multiple barriers to sustainable manufacturing. The barriers are categorized into four major categories, and their ranking provides an opportunity for prioritization from both policy and managerial perspectives. The barriers can be overcome through both policy interventions as well as through best practice sharing, benchmarking and organizational-wide initiatives.Originality/valueThe study is among the first studies that provide valuables insights on what are the 22 different barriers to sustainable manufacturing and its relevance to the MSMEs working in the automobile industry. The study would provide further opportunities for similar studies in different sectors.


2019 ◽  
Vol 17 (2) ◽  
pp. 125
Author(s):  
Ria Manurung ◽  
A. Kristiadji Rahardjo

The purpose of this study is to analyze the impact of Fintech on Micro Small and Medium Enterprises (MSME) capital with the P2P Lending model. The formulation of the problem is What is the impact of Fintech on MSME capital with the P2P Lending model? Research locations in the Banyumas Regency area with a concentration of 110 MSME as a research sample, with the criterion that ever or currently lending with P2P Lending system. Primary data were obtained from the results of questionnaire processing and interviews with respondents, namely MSME, while secondary data was sought from OJK, BPS, the Ministry of Cooperatives and Micro, Small and Medium Enterprises, BI, articles, and textbooks relevant to research. Data analysis methods are descriptive analysis methods, paired difference analysis and ordinary least square (OLS). The conclusion obtained in this study is a tendency to increase in the Number of Workers, Turnover, Product Sales, Profits and Business Costs after the use of Fintech with the Peer to Peer (P2P) Lending model in MSME. So venture capital loans obtained through FinTech with the P2P Lending model have a positive effect on the improvement and development of the MSME business.


2016 ◽  
Vol 24 (1) ◽  
pp. 47-61 ◽  
Author(s):  
So Won Jeong

Purpose The purpose of the study is to empirically analyze how various types of foreign networks influence the internationalization performance of Korean small and medium enterprises (SMEs). The specific aim is to investigate the impact of each network type (family and friends, clients (buyers, vendors, etc.), potential buyers contacted through an Internet search for export, acquaintances from trade shows and fairs and acquaintances from government organizations) on internationalization performance outcomes, such as financial performance, financial performance satisfaction and strategic performance. Design/methodology/approach To identify influential foreign networks, multiple regression analysis was conducted. The sample consisted of 484 exporting Korean SMEs. Findings The results emphasized the role of business networks with clients in enhancing financial performance, financial performance satisfaction and strategic performance of Korean SMEs in international markets. Originality/value The research contributes to the expansion of SME internationalization literature by identifying various types of foreign networks used in international markets and revealing their differential roles on the internationalization performance of Korean SMEs.


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