The Capital Structure Puzzle: What Are We Missing?

An important piece of the capital structure puzzle has been missing, and it is not a contracting friction. It is recognition that managers do not have sufficient knowledge to optimize capital structure with any real precision. The literature critique in this paper i) identifies the conceptual sources of the main empirical failures of the leading models of capital structure and ii) shows how those failures can be repaired by taking into account imperfect managerial knowledge and several other factors. The analysis yields a compact set of principles for thinking about capital structure in an empirically supported way.

Understanding the antecedents of family influence in the family firm

PurposeWhat makes family influence so influential in the family firm? Time and again, research studies point to family influence as a factor that significantly impacts decision-making in the family business, thus highlighting the need to investigate the variables which cause family influence to be so powerful. The purpose of this study is to explore the construct of family influence in the family firm, under an integrative lens that combines insights from Institutional Theory and the Resource-Based View.Design/methodology/approachThe quantitative approach was used using a 35-item survey measuring 6 constructs, where data collection yielded a total of 206 completed surveys included in the data analysis. Data were analyzed using SmartPLS (3.0) and results were appropriately reported.FindingsThe findings of this study propose that the two theoretical perspectives can be useful in explaining how various factors are able to intensify family influence on strategic family firm decisions like internationalization. Specifically, the lack of resources, government support, managerial knowledge and capability in foreign markets represent serious barriers that render the family firm more reliant on and subjected to family influence. Similarly, informal institutions like the fear of failure in foreign markets and uncertainty avoidance often make the family firm more dependent on, and accepting of, family influence.Originality/valueThe path analysis undertaken in this study has empirically depicted how resource-related and institution-based forces can together augment the effects of “family influence,” making it a more powerful and prohibitive factor in the internationalization decision, thus offering an insightful interpretation of these results and valuable practical and theoretical implications.

Analisis Kompetensi Mahasiswa Menjadi Amil Zakat Profesional (Studi Pada Mahasiswa Prodi Manajemen Zakat dan Wakaf IAIN Bengkulu)

The purpose of this study was to determine the competencies possessed by students of the Zakat and Waqf Management Study Program to become candidates for professional zakat amil, while the types of data used were secondary data and primary data, using a qualitative approach. Based on the results of research and discussion, it can be concluded that the competencies that must be possessed by zakat and waqf management students are mastering the science of zakat fiqh, mastering managerial knowledge about zakat management, namely collection, distribution and utilization and reporting of zakat, amil must also have skills in the IT field and accountability in calculating zakat funds. on the reality in the field that students of zakat and waqf management study programs are already competent in the field of zakat fiqh science but are not yet competent in the field of fundrising practice and zakat information system technology.

Structure as an innovation

The purpose of the chapter is to present basic theoretical fundaments in the field of structurally significant formations that companies apply in the process of their business operations, market projections and innovative changes. Organizational forms and structures are presented in the evolutionary context of the time parameter, applying a chronological historical landmark. Knowledge of the variety of possibilities for structural dimensions of the functional manifestations of business activity provides an expanded range of possible solutions. Basic definition formulations are considered. The emphasis is on the organization and organizational structural forms, changes in their practical dimensions in accordance with the changes in purely managerial knowledge and the needs of business practice for innovative changes in various functions in the scope of company’s activity. With the help of various creative and purely managerial approaches, through cognitive brainstorming activities, a set of analytical, inductive-deductive, case and simulation methods, students gain new knowledge, practical skills and visionary views on the presented issues—by combining theoretical statements, empirical factology and analytical assignments based on the principle of learning by doing. The topic draws students’ attention to the study, selection and construction of internal units and structures, including innovative ones, as part of the necessary business projections for the construction of sustainable processes to generate new value and positive impacts for the environment and stakeholders.

The Process of Recruitment of Managers: Formal Management Education or Management Experience?

In this paper we have analyzed 228 job announcements for the recruitment of managers within two online recruitment platforms most often used in Romania, named Ejobs and Indeed, regarding two important aspects: 1) recruitment of managers depending on management experience or formal management education and 2) recruitment of management graduates. The main objective is to describe the degree the practice of recruitment of managers takes into consideration the scientific advances in the management field and the formal management education. Through the mean of an archival data analysis research strategy, we found that for the recruitment of managers the companies asked almost exclusively for experience (91.2%). The companies in our sample almost did not require the management education. Only in ten announcements the recruiters asked for a formal management educational degree. Moreover, only half of companies asked for management experience (56.1%). Technical (39.4%), industry (25.2%) and working experience (7.7%) are the other types of experience valued by the recruiters. Most companies asked for management abilities, in addition to experience, however (e.g influence), but they did not require that these abilities to be formed during a formal educational program. The future manager only should possess these abilities acquired from somewhere. The paper aims to contribute to the academic debate regarding the criteria used by companies to hire managers. In addition, the paper has a strong practical orientation aiming at improving the recruitment practice of managers and equipping the companies and organizations with management teams with adequate managerial knowledge, abilities, and competences.

The Role of Industrial Parks Entrepreneurial Ecosystem in Strengthening Ventures' Capability: Evidence From Ethiopian Small Manufacturing Enterprises

Small scale enterprises sector has been recognized as an integral component of economic development and it is advisable and indispensable to integrate the enterprises with Industrial parks for sustainable business operation. IPs plays a crucial role in organizing the resources and innovation of manufacturing operation through business advising, infrastructure provision, technology transfer, and R&D support which advances firms’ capability. In this sense, the objective of this was to investigate the role IPs entrepreneurial ecosystem towards improving the capability of small ventures. Data were obtained from a sample of 245 small manufacturing enterprise owners selected through simple random sampling and analysed using descriptive, multi-level regression analysis and OLS regression analysis. From this, the presence of better and suitable entrepreneurial ecosystem which consists of provision of training, market information, adequate finance, and government commitment positively contributes for improvement of small firm’s capability. Despite of this, the study also found that there are many barriers hindered the development of strong entrepreneurial ecosystem in Ethiopia, such as, human capital, institutional, financial, market, policies and legal procedures, cultural and resource barriers. The entrepreneurial ecosystem influences the resources capability more when academia-industry linkage exists. The OLS regression result also shows that the entrepreneurial skill mediates the influence of entrepreneurial ecosystem on technological capability, while managerial knowledge mediates the influence of entrepreneurial ecosystem on the firm’s resource capability. The implication for policymakers is to develop a policy that supports incorporating small firms in industrial parks entrepreneurial ecosystem and link with academia. The study also forwarded a clue for managers of small firms in improving their firms technological and resource capabilities through building managerial knowledge and entrepreneurial skills.

Pengaruh Usia Perusahaan terhadap Kinerja Keuangan (Studi pada Bank Victoria Syariah)

Company age and experience are concepts that remain the same. Younger and older companies differ in experience and other aspects. The company's innovation activities change over time and the age of the company reflects the process of growth and accumulation of experience. Age is considered an important determinant of corporate innovation because of its learning effect, which enables mature companies to innovate more effectively as they build on previous routines and capabilities. Over time, companies can not only innovate based on past experience and capabilities, but can also accumulate resources, managerial knowledge, and the ability to handle uncertainty. The purpose of this study was to determine the effect of company age on financial performance, as measured by return on assets (ROA) and return on equity (ROE). The results of the regression analysis show that the age of the company has no effect on ROA and ROE. Based on the results of this study, the management of Bank Victoria Syariah should try to increase market share to increase financial performance, for example by intensifying promotions and corporate cooperation.

Creative and innovative potential of future education managers

The main purpose of the study is to characterize and analyze the characteristics of the creative and innovative potential of students and future education managers. The preparation of future education managers for professional development and creative activity in educational institutions is an urgent issue of higher education. Along with scientific qualifications in the activities of education managers, the professional component is becoming increasingly important, which needs constant updating, replenishment and improvement of psychological, pedagogical, managerial knowledge, skills and abilities, personal qualities, development of abilities and creative potential. In this regard, it is important to study the activities of the education manager and, on this basis, determine the requirements for the system of his professional training. As a result of the study, the features of the creative and innovative potential of students and future education managers were identified.

Managerial Ability and Managerial Knowledge for Technology Investment in 4.0 Era

This study aims to analyze how the influence of managerial skills and managerial knowledge on technology investment in the era of the industrial revolution 4.0 on SMEs in the city of Surabaya. The sampling technique used was a survey by distributing questionnaires to respondents. The population selected in this study is the SMEs in the city of Surabaya. The number of samples in this study was 36 people. The data analysis technique used in this study is multiple regression analysis using the Statistical Package for the Social Sciences (SPSS) program. The results of this study are that managerial ability is not a partially significant positive effect on technology investment, but managerial knowledge has a significant positive effect on technology investment. However, simultaneously managerial skills and managerial knowledge have a significant positive effect on technology investment.