scholarly journals The Business Sector, Firm Age, and Performance: The Mediating Role of Foreign Ownership and Financial Leverage

2020 ◽  
Vol 8 (4) ◽  
pp. 79
Author(s):  
Edmund Mallinguh ◽  
Christopher Wasike ◽  
Zeman Zoltan

The paper explores the business sector and firm age effects on firm performance mediated by foreign ownership levels in domestic firms and financial leverage by examining 146 Medium Enterprises (MEs). The results show that except for ownership, the business sector, firm age, foreign ownership level, and financial leverage significantly influence performance. Foreign ownership substantially mediates the correlation between firm age and performance but not leverage. Both foreign ownership and leverage have no substantial mediating effect on the relationship between the business sector and financial performance. Moreover, the findings reveal business sectors whose performance is statistically different from zero based on the referent group.

Webology ◽  
2021 ◽  
Vol 18 (2) ◽  
pp. 347-362
Author(s):  
Rajeev Ranjan Mishra ◽  
Dr. Malini Singh ◽  
Dr. Sanjeev Kumar

Current study aims to identify the mediating role of demographic variables in the relationship between talent development practices and the employees’ performance. The data was collected from 660 employees from hotel industry across North India, including budget and chain hotels. Partial regression analysis, was used to analyse the data. Perceived effectiveness of all five Talent development practices namely; Employee Welfare and Compensation, Training & Development, Career Advancement and Planning, and Performance Appraisal except work life balance, was found to be positively and significantly related to the Performance of Hotel employees based on their accomplishment of targets, on time, and overall performance. The study concluded that there is no significant mediating effect of demographic variables on the relationship between effectiveness of Talent development practices and performance of employees in hotels.


2019 ◽  
Vol 25 (1/2) ◽  
pp. 30-46 ◽  
Author(s):  
Krista Jaakson ◽  
Anne Reino ◽  
Peter Bernard McClenaghan

Purpose Understanding the relationship between performance and trust in virtual teams is receiving significant attention due to “connected” virtual team contexts becoming more prevalent. This paper reports on new findings relating to the dynamics of trust and performance in virtual team contexts. The study aims to explore the evolution of trust and its mediating role in determining the performance of virtual teams, as well as to investigate if and how performance itself affected trust. Design/methodology/approach The study is based on a longitudinal quantitative survey of 71 international virtual student teams working in four universities in Finland, Estonia, Latvia and Russia. Findings In line with swift trust and social norms theory, the authors found that relatively high levels of initial trust did not change over the period of the teams’ projects in general, but in teams where feedback on performance was negative, both trust and trustworthiness declined significantly. Trust had a small mediating effect between group performances in two consecutive measurement points, meaning that past performance had an impact on trust, which in turn impacted the teams’ next performance. However, no mediating effect was present between individual and team performance. Practical implications The authors conclude that managing virtual teams should concentrate on team actions and achieving and recognising small quick wins at least as much as dealing with trust, specifically. Negative performance feedback should not deteriorate members’ perception of benevolence and integrity in the team. Originality/value The paper distinguishes the dynamics of two trust components and tests new models with these as partial mediators in determining virtual team performance. Importantly, the authors challenge the notion that emotional component of trust, perceived trustworthiness, is less relevant in virtual teams.


2017 ◽  
Vol 20 (2) ◽  
pp. 529-548 ◽  
Author(s):  
Zahid H. Bhat ◽  
Riyaz A. Rainayee

In a dynamic environment, the nature of work tasks continues to change requiring employees to learn new knowledge and skills to perform their jobs effectively. Training is among the crucial strategies of an organization, which helps employees to acquire those necessary knowledge and skills to meet the challenges. The linkage between training and performance has been robustly studied in the literature suggesting that training is a major determinant of employees’ performance. Further, literature in the field of industrial/organizational psychology implies the effect of person–job fit on the relations between training and performance. The purpose of this study is to examine the degree of direct and indirect relationship between employee training (TR) and performance (PER), conceiving the mediating role of job fit (JF), as few studies have been reported in literature so far. The hypotheses were tested on a sample of 171 civil service officers by structural equation modelling technique using partial least square (PLS) approach to measure and test the proposed structural relationships. The results confirm that employee training and job fit are directly related with improvement in job performance. The results also demonstrate the significant mediating effect of job fit on employee performance. This article contributes to the existing body of literature by examining both the direct and indirect effect of employee training on job performance. Moreover, job fit is established to partially mediate the relationship between them. The findings of this study provide useful information for policymakers to improve employees’ job fit and their performance by means of employee training. The limitations to the study and directions for future research are discussed as well.


2020 ◽  
Vol 18 (1) ◽  
pp. 7-22
Author(s):  
Daria Lupșa ◽  
Delia Vîrgă

Psychological capital (PsyCap) is a state-like concept with roots in positive psychology. This study investigated the potential role of PsyCap, as a personal resource, in increasing the level of employees’ health (mental and physical) and performance. Based on the Job Demand-Resources theory, the mediating effect of burnout was examined using self-report data. The models were tested on 304 Romanian employees (51% women) from Information Technology & Communications (IT&C) companies, using structural equation modeling. The analysis found that burnout partially mediates the relationship between PsyCap and health (mental and physical) as well as the relationship between PsyCap and performance (task and contextual). The results highlight the role of PsyCap, as a personal resource, in health, and performance. These results are useful for implementing an evidence-based intervention to improve the level of PsyCap in IT&C employees. An improvement in PsyCap would reduce burnout and enhance well-being and performance. This study highlights the mediating role of burnout in the relationship between psychological capital and two distinct outcomes: health and performance. Thus, this research helps identify further mediators of the relation between PsyCap and health and performance.


Author(s):  
Zahid Yousaf ◽  
Abdul Majid

Purpose The purpose of this paper is to examine and develop a strategic performance model for small and medium enterprises linking with inter-firm networks, strategic alignment and environmental dynamism. Design/methodology/approach Drawing on the live experiences of 757 respondents, including managing directors/owners and CEOs of different SMEs, the authors proposed a theoretical model representing how firms could attain strategic performance through inter-firm networks with a mediating role of strategic alignment. Findings The current study demonstrated that SMEs with strong inter-firm networks have the ability to align business activities with strategies and get earlier strategic performance. Strategic performance looks skeptical to ever gain acceptance until strategic alignment is adopted by small and medium enterprises. The findings of this study indicated that environmental dynamism strengthens the relationship between strategic alignment and strategic performance. Originality/value This research extended the understanding about the inter-firm networks, strategic alignment and environmental dynamism surrounding strategic performance. This study identified and empirically tested how the inter-firm networks impact on strategic performance through the mediating effect of strategic alignment.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Fahad P ◽  
Nidheesh KB

Purpose This paper aims to undertake an empirical investigation on firm characteristics determining corporate social responsibility (CSR) disclosure and its subcategories such as environmental, social and governance disclosures. Design/methodology/approach The sample consisted of listed companies in BSE 500 index for a period of 10 years from 2007 to 2016. Panel data regression method is used for the analysis. Seven variables are analyzed, namely, firm age, financial leverage, firm size, foreign ownership, promoter ownership, export performance, innovation and firm popularity. Findings The result shows that firm age and financial leverage are positively influencing CSR, environmental and social disclosure score but both are negatively influencing governance score. Firm size is positively associated with all four disclosure scores. Among ownership variables, foreign ownership shows a positive influence and promoters ownership shows a negative influence towards CSR, environment and social disclosures. No association is found between both ownership variables and governance disclosure score. Further analysis also finds that there is a difference in this relationship during crisis period. Research limitations/implications The study focuses only on listed companies in Indian capital market. In terms of implication, theoretical bases discussed in the literature review and hypotheses development are mostly validated. Practical implications The findings are important for the firm, stakeholders and policymakers. A firm may think about appointing experts in CSR to spend the amount wisely and improve CSR disclosure to compete in the international market; stakeholders have to pressure the firm to provide more CSR disclosure and for policymakers this study study provides useful inputs to design legal framework on CSR. Originality/value The measurement of CSR disclosure using environmental, social and governance (ESG) score is novel in Indian context, even though the methodology is often used in literature.


Author(s):  
Seemant Kumar Yadav ◽  
Vikas Tripathi ◽  
Geetika Goel

Purpose The purpose of this study is to examine the effect of market orientation on performance and to figure out the mediator effect of incremental innovation on this relationship with an implementation on Indian small and medium enterprises (SMEs). Design/methodology/approach Following a survey among 333 owners/managers of SMEs in Indian, six research propositions were framed. Confirmatory factor analysis (CFA) and regression analysis was used for the purpose of data analysis. Findings The outcome of the study demonstrates a significant effect of market orientation on SMEs performance. In addition, the mediating effect of innovation between market orientation and business performance was not supported in the context. Research limitations/implications This study uses cross-sectional research, which limits the ability to test the causality; hence, such studies should be replicated in other settings also to get more evidences about the relationship. Practical implications The research will help managers especially in manufacturing SMEs of developing countries to understand benefits of being market-oriented to improve performance. Originality/value The study attempts to enrich the market orientation literature especially in developing economies. It identifies the significant effect of interfunctional coordination on performance of small and medium enterprises working in more volatile environment. Further, the study also examines mediating role of innovation between market orientation and performance linkage.


Author(s):  
Juliansyah Noor ◽  
Musa Alkadhim Alhabshy ◽  
Mohd Rafi Bin Yaacob

This research aims to evaluate the link between human resource practices (HRPs) and innovation with mediating effect of entrepreneurial creativity. This research uses the hierarchical analysis to examine data collected from entrepreneurs running 172 small and medium enterprises. The results show that (a) HRPs have a positive and significant effect on entrepreneurial creativity; (b) HRPs have statistically significant impact on innovation. These results provide empirical evidence that entrepreneurial creativity mediates the relationship between HRPs and innovation. Also, the findings provide evidence that the mediating role of entrepreneurial creativity causes improving employees' innovation. Also, the findings provide evidence that the mediating role of entrepreneurial creativity cause improving employees' innovation. By providing a cross-sectional examination of our model, we showed that HRPs and entrepreneurial creativity are of essence in shaping an innovative context. A comprehensive view on the triggers and outcomes of entrepreneurial creativity and innovation are needed, as the traditional unidirectional cause-effect rationale short in explaining how these concepts relate to one another and to entrepreneur experiences of HRPs.  


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