Management succession planning and family-owned manufacturing businesses survival

It remains unclear how lack of management succession planning relates to the collapse of 87% of the Tanzanian family-owned manufacturing businesses (FOMBs) after the first generation. Also, the question of whether a firm’s background variables, namely; executive’s education level, business age, and business size, moderate the relationship between management succession planning and the survival of FOMBs remains unanswered. Therefore, this study investigated the relationship between succession planning and the survival of FOMBs, moderated by the firm’s background variables through the lens of resource-based theory as well as agency theory. A sample of 339 executives was randomly drawn from the FOMBs in Dar es Salaam city where the collapse of FOMBs after the first generation was revealed to be significant and surveyed using a structured questionnaire. Multiple linear regression was used as a quantitative data analysis technique with the support of SPSS as an analytical tool. Results revealed that management succession variables, namely; training the successor, successor involvement in business management and successor factors-work fit had a positive and significant relationship with the survival of FOMBs. However, the internal recruitment of the successor had an insignificant relationship with the survival of FOMBs. Therefore, management succession planning sustains the leadership pipeline and survival of the FOMBs through the involvement of the successor in business management, sufficiently training the successor, and handing over power to the successor whose competency and factors fit with the relevant work. The study contributes to an understanding of management succession planning variables and how they relate to the survival of family-owned manufacturing businesses. The study also provides a new conceptual framework on transgenerational management succession planning in the FOMBs.

Applying appropriate models to predict bankruptcy for Vietnamese listed construction companies

This study focuses on assessing the suitability and condition of various bankruptcy risk models applied to construction companies listed on the Vietnam Stock Market. In this study, the panel data were collected from the disclosed financial statements of the companies from 2012 to 2017. Through the assessment, bankruptcy risks are predicted for the companies that are experiencing initial signals such as delisting, compulsory supervision. In the next step, interviews were conducted to justify which of the following factors may indicate the companies at the risk of being bankrupted: asset management, capital structure, business size, and/or state management.

FORMAL TAX COMPLIANCE IN INDONESIA THROUGH ELECTRONIC TAX FILING: A CASE STUDY OF MICRO, SMALL, AND MEDIUM ENTERPRISES (MSMEs)

The implementation of electronic tax filing provides convenience to taxpayers in reporting their annual tax returns. The adoption of this policy, especially for micro, small and medium enterprises, is illustrated through the number of MSME taxpayers who report Electronic Annual Tax Return to the number of MSMEs registered as taxpayers. Increases have not followed annual increases in the number of MSME taxpayers who report Annual Tax Return. We investigated the possible correlation between business size and formal tax compliance use: data from the Directorate General of Taxes at the province level in Indonesia for 2014 – 2018. We employed the aggregate business-level Micro, Small, and Medium electronic tax filing data combined with the Base Transceiver Station data at the provincial level. We found that micro and small-scale taxpayers e – filing rate has a positive and significant effect on formal tax compliance. Yet, both of them have a non-linear relationship to formal tax compliance. These results imply that size or business scale MSME taxpayers is associated with formal tax compliance, and greater benefits can be obtained in a province with a high microscale taxpayer's e – filing rate.

Three-Way Interaction Effect Model: Moderating Effect of Resource Between Business Age and Host Performance

In the field of accommodation sharing, little attention has been paid to micro-entrepreneurship of hosts. Based on the signaling theory and the resource-based theory, we proposed a three-way interaction effect model to investigate the moderating effect of resource configuration (business size and host reputation) on the relationship between business age and host performance. A statistical analysis of the secondary panel data crawled from Airbnb.com was tested through the negative binomial model. The results shown that: (1) Business age is positively related to host performance; (2) the positive impact of business age on host performance is stronger for smaller size; host reputation has no significant moderating effect on the relationship between business age and host performance; (3) the joint consideration of business age, size, and host reputation has a three-way interaction effect on host performance. The positive impact of business age on host performance is strongest for hosts with smaller size and higher host reputation. These results are helpful to understand the micro-entrepreneurship performance of hosts in the field of accommodation sharing.

Not All Wine Businesses Are the Same: Examining the Impact of Winery Business Model Extensions on the Size of Its Core Business

The purpose of this paper is to examine the impact that various types of business model extensions (hospitality and tourism, online sales platforms, and sustainability) have on the winery business. The research is based on company data and online observations of N = 886 German wineries and deploys a content analysis, netnography, and structural equation modeling (SEM) in order to test the hypothesis on business model extensions of wineries, which have been set forth in the previous literature. The findings indicate that business model extensions related to online sales platforms have a positive impact on winery business size. These results mean that developing online sales platforms enlarges the winery BM (business model) size and type (manager-run, state-owned, or cooperatives). The paper presents in detail the impact of winery BM extensions on winery BM model type and size, thereby contributing to the literature on business model innovation.

Profitability of broiler production in Cross River State, Nigeria

The study was carried out to determine profitability of broiler production in Cross River State, Nigeria. A three stage multi sampling technique was adopted in the selection of 180 respondents. Data collected were analysed using descriptive statistics such as frequency, mean, ranking and percentages, as well as budgeting techniques tools such as net farm income (NFI), return to naira invested (RNI), gross and operating ratios (GR and OR) respectively. Result of analysis showed that socio-economic attributes of broiler farmers - age, sex, marital status, education, experience, business size and training studied influenced on broiler production in the area. Furthermore, the study revealed that broiler production is a profitable venture in the area. This is arising from the difference between a total revenue of N704, 000 and total cost of N419, 153 respectively, representing a net profit of N284, 646.6 or 67.90% of the total amount of money invested, within a production season of eight weeks. The return per naira invested ratio was 1.64, this meant that for every naira invested, N1.64 profit was made by the broiler farmer, this further indicated that the business is profitable. The gross ratio, which measured the overall financial success of the business recorded 0.61. However, cost of feeds, lack of extension services, financial constraints, cost of day old chick’s medication among others are the constraints affecting effective broiler production in the area. Based on the findings of this study, the following are recommended: regular extension training on broiler production should be carried out by the relevant government agencies, feeds should be subsidized and made easily available by government, production of day old chicks should be subsidized by government to cushion the effect of their high cost and livestock farmers should be encouraged to invest on the poultry subsector for it profitability.

The Evident Need for Banking Reform in the Legal Marijuana Industry

Marijuana reform legislation has created a lucrative industry for legal marijuana on the local and state level in some jurisdictions. Federal laws have forced legal marijuana dispensaries to be cash-only businesses with limited banking options. The lack of normal banking services has also affected firms’ ability to manage profits earned from operations. Our hermeneutic phenomenological study was grounded by the conceptual framework of the motivations of humans and humans’ need to feel safe. The participants in this study were owners and operators in the legal marijuana industry in Colorado. Data were collected through interviews, although the Coronavirus (COVID-19) pandemic of 2020 made data collection more challenging because of the added pressure on potential participants. The data analysis plan for this study consisted of transcribing and reviewing the data, coding themes and supporting themes, and synthesizing and reporting findings from the data collected. The study’s findings included the participants’ concerns about safety in their cash-only operations, their methods for conducting business, and the banking options available to them. Common themes that emerged from the interviews were cash, banking, safety, and the limitations of business size. Findings from my study contribute to fostering positive social change on the organization and industry level by providing accounts of how owners and operators navigate the banking dilemma in the legal marijuana industry.

The Evident Need for Banking Reform in the Legal Marijuana Industry

Marijuana reform legislation has created a lucrative industry for legal marijuana on the local and state level in some jurisdictions. Federal laws have forced legal marijuana dispensaries to be cash-only businesses with limited banking options. The lack of normal banking services has also affected firms’ ability to manage profits earned from operations. Our hermeneutic phenomenological study was grounded by the conceptual framework of the motivations of humans and humans’ need to feel safe. The participants in this study were owners and operators in the legal marijuana industry in Colorado. Data were collected through interviews, although the Coronavirus (COVID-19) pandemic of 2020 made data collection more challenging because of the added pressure on potential participants. The data analysis plan for this study consisted of transcribing and reviewing the data, coding themes and supporting themes, and synthesizing and reporting findings from the data collected. The study’s findings included the participants’ concerns about safety in their cash-only operations, their methods for conducting business, and the banking options available to them. Common themes that emerged from the interviews were cash, banking, safety, and the limitations of business size. Findings from my study contribute to fostering positive social change on the organization and industry level by providing accounts of how owners and operators navigate the banking dilemma in the legal marijuana industry.

Entrepreneurship, Broadband, and Gender: Evidence from Establishment Births in Rural America

Broadband access may have important implications for establishment births in rural areas, which feature thinner markets. Broadband may be especially important for rural nonemployer businesses, particularly those without a storefront, for access to nontraditional market channels. As women are more likely to run these types of small businesses, we further expect that broadband may have important implications for women-led businesses. With an effective instrumental variable approach, we find evidence that broadband access is a key factor leading to a higher establishment birth rate across business size and gender in rural areas. This paper identifies the largest effects on nonemployer, women-led and remote rural establishments.

Financial Distress, Company Size, and Ownership to Tax Avoidance in the Listed Indonesia Stock Exchange Companies

This paper assesses the effect of financial distress, business size, and institutional ownership affect tax avoidances in the Food and Beverage Sub-Sector Manufacturing Industry Registered at Listed Indonesia Stock Exchange Companies, IDX in 2016-2020. With a quantitative analysis approach, this study finds that the financial distress affects tax avoidance due to the decline in financial condition as experienced by the company. The right of large companies has a tendency to maintain its image to the public so that they will try to comply with the terms of tax payments. Meanwhile, corporate ownership has no influence on tax avoidance due to pressure on owners to implement aggressive tax policies in order to increase profits.