Financial constraints and risk taking are two well-established determinants of firm performance, however, no research analyzes how these variables are connected in the context of a high risk environment. Using data from microfinance clients in Tanzania, we derive a novel financial constraints measure and incorporate a psychometric risk taking scale. Results confirm the importance of access to finance and risk attitudes for business development. Also, we provide preliminary evidence for an interaction between financial constraints and risk taking. Financial constraints “throw sand in the wheels” and protect risk taking entrepreneurs from the negative impact of risk taking on microenterprise performance.
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The main purpose of this dissertation is to identify the factors that explain success and failure in SME business transfers. Three key concepts have been defined in the research framework: firm resources, capabilities (of predecessor and successor) and (successor’s) strategic renewal. Altogether these three key concepts serve as predictors for the transfer outcomes: exit choice, transfer duration, obtained price, satisfaction and the post-transfer firm performance. Testing reveals that both firm resources and owner capabilities are of importance for exit choice. Results indicate further that especially “acquisition experience” and “years of ownership” predict the exit choice in well performing firms. In poorly performing firms, firm resources prevail as the predictors for exit choice. Most consistently, owner capabilities like “familiarity with the successor” and “flexibility” and not firm resources predict success during a transfer. The firm resource “succession planning” predicts only the level of satisfaction with the transfer. Regarding owner capabilities, a distinction is made between generic and specific human capital. Results indicate the importance of specific human capital (owner competencies and experience) rather than generic human capital (level of education). All types of renewal (i.e. product/market innovation, organizational change or a combination of the two) after succession show better post-transfer firm performance compared to no changes in the first two years.
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This research focuses on exit choices within SMEs. In this study, “exit choice” refers to the decision to opt for either liquidation or sale of the firm. The predictions focus on human-capital and firm-resource variables. The hypotheses are tested on a set of 158 owners of small firms, the majority of which are micro-firms with 0–9 employees. The results of a series of binominal logistic regression analyses show that firm-resource characteristics (previous sales turnover, the firm’s independence from its owner, and firm size), together with one aspect of the owner’s specific human capital (the owner’s acquisition experience), predict exit choice. The conclusions have been made with caution, as the dataset is relatively small and the number of predictors is limited.
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It is well-documented that international enterprises are more productive. Only few studies have explored the effect of internationalization on productivity and innovation at the firm-level. Using propensity score matching we analyze the causal effects of internationalization on innovation in 10 transition economies. We distinguish between three types of internationalization: exporting, FDI, and international outsourcing. We find that internationalization causes higher levels of innovation. More specifically, we show that (i) exporting results in more R&D, higher sales from product innovation, and an increase in the number of international patents (ii) outward FDI increases R&D and international patents (iii) international outsourcing leads to higher sales from product innovation. The paper provides empirical support to the theoretical literature on heterogeneous firms in international trade that argues that middle income countries gain from trade liberalization through increases in firm productivity and innovative capabilities.
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This study examines the main drivers for the exit choice of small firm owners. Only recently studies have begun to compare the exits of mature firms. Previous studies concentrated on start-ups, primarily trying to explain survival. Exit choice as used in this study differentiates between liquidation vs. sale of the firm. Predictions are drawn from the cognitive biases in financial markets. Hypotheses propose that key drivers for exit choice vary on firm performance (well vs. poorly performing firms). Hypotheses are tested on a set of 157 small firm entrepreneurs, the majority of which are micro firms (0-9 employees). Results from binominal logistic regressions show support for the predictions: in well performing firms human capital or the characteristics of the entrepreneur (acquisition experience and years of ownership) prevail as key drivers, whereas in poorly performing firms the firm characteristics (dependency on owner and dependency on (few) customers) predict exit choice. These conclusions are made with caution, since interaction between firm performance and human capital is not significant.
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Purpose The purpose of this paper is to synthesize the fragmented literature on organizational citizenship behavior (OCB), leader–member exchange (LMX), learning, innovative work behavior (IWB) and employee performance across different countries, disciplines and organizations, thereby broadening the literature breath and making gap identification comprehensive. Second, it provides information on how much studies have been concentrated on Africa with the goal of provoking scholarly work in a unique cultural setting on the interrelatedness of these concepts. Design/methodology/approach Relevant literature search was undertaken using key search terms, “employee performance,” “OCB,” “LMX,” “IWB,” “individual learning” and “team learning.” Findings The findings show positive relationships between the behaviors and employee performance. They also reveal an interesting diversity in the study across multidisciplinary fields holding both cultural and contextual significance for academia and practitioners. Research limitations/implications – The limitation of literature to peer-reviewed journals from the authors’ university library might have missed important information not in this domain. Further studies must make use of additional search terms and engines excluded from this study to provide a more comprehensive analysis. Practical implications The paper has important managerial implications for practitioners. The analysis can support the understanding of employee performance from a broader and more diverse view points; and help in providing insight into real-life opportunities, constraints and solutions in enhancing performance management. Originality/value – This systematic literature review highlights important knowledge gaps which need to be explored especially in the African and Ghanaian contexts.
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This study focuses on the transfer process and the importance of human capital and succession planning as firm resource from the seller’s perspective. It further differentiates amongst two types of human capital - specific and generic - to predict the transfer duration, obtained price and satisfaction with the transfer. A representative dataset of 112 Dutch small firm owners, who sold their firm in 2005 and 2006, is analyzed. Hierarchical multiple regressions show that specific human capital, like flexibility, social skills and market awareness predict transfer performance better than generic human capital like general education. Results also indicate that succession planning in business transfers is unrelated to the objective transfer performance indicators transfer duration and obtained price. Succession planning is strongly related to the subjective transfer performance indicator satisfaction. Results also show that familiarity between seller and buyer rather than kinship or family ties is a key predictor for all transfer performance indicators.
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From the article: "After 1993, the concept of strategic alignment is evaluated from the connection between IT and business to much broader definitions in which the connection between all business functions, horizontally and vertically, and later also with projects and stakeholders is mentioned. To achieve stategic alignment there must be a coordination between the strategy of organizations and those who contribute to the implementation of the strategy and the actual performance of an organization. This process is called Human Oriented Performance Management (HOPM). The HOPM model consists of four dimensions: strategy translation, information and visualization, dialogue and action orientation, and continues improvement and organizational learning. To measure the effect of strategic alignment a range of financial performance indicators are used. Based on a literature review this paper explores which financial performance indicators could be used to measure the effect of HOPM. The literature was selected over a period from 1996 – 2015. The research is not only focused on the top of the strategy map, but also on the cause-effect relationships in the strategy map. The underlying performance indicators in the strategy map can show on which figures the dialogue in the HOPM model about strategy implementation must be based. This dialogue is the input to action in which strategic alignment comes about. The goal of the research is to optimize this dialogue by looking for performance indicators that can show the effect of HOPM" The article is used for the course: 'corporate policy' minor MSMM (Masterclass Strategic Marketing Management).
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In this study we test if successors timing of the acquisition and his actions account for better firm performance. We surveyed 500 Dutch SME successors two to six years after their acquisition. With ANOVA we tested successors timing (declining, average and increasing economical growth) and actions taken (organizational change, innovation, extending markets, no change). All tested actions improve post transfer performance compared to no action taken. Firms acquired in declining economical conditions perform best. No interaction effects are found between timing and actions suggesting that actions are beneficial to performance in any macro economical condition.
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Change has become continuous, and innovation is a primary approach for hospitality, i.e., hotel companies, to become or remain economically viable and sustainable. An increasing number of management researchers are paying more attention to workplace rather than technological innovation. This study investigates workplace innovation in the Dutch hotel industry, in three- and four-star hotels in the Netherlands, by comparing them to other industries. Two samples were questioned using the Workplace Innovation survey created by the Dutch Network of Social Innovation (NSI). The first was conducted in the hospitality industry, and these data were compared with data collected in a sample of other industries. Results suggest that greater strategic orientation on workplace innovation and talent development has a positive influence on four factors of organizational performance. Greater internal rates of change, the ability to self-organize, and investment in knowledge also had positive influences on three of the factors—growth in revenue, sustainability, and absenteeism. Results also suggest that the hospitality industry has lower workplace innovation than other industries. However, no recent research has assessed to what degree the hospitality industry fosters workplace innovation, especially in the Netherlands. Next to that, only few studies have examined management in the Dutch hotel industry, how workplace innovation is used there, and whether it improves practices.
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