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PurposeThis study examines the performance effect of working capital for a large sample of Indian manufacturing firms in light of supply chain disruption, i.e. the COVID-19 pandemic.Design/methodology/approachThis study is based on secondary data collected from the Prowess database on Indian manufacturing firms listed on the Bombay Stock Exchange (BSE) 500. Panel data regression analyses are used to estimate all models. Moreover, this study has employed robust standard errors to consider for heteroscedasticity concerns.FindingsThe results challenge the current notion of working capital investment and reveal that higher working capital has a positive and significant impact on firm performance. Further, it highlights that Indian manufacturing firms suffered financially post-COVID-19 as they significantly lack the working capital to run day-to-day operations.Originality/valueThis research contributes to the scant literature by examining the association between working capital financing and firm performance in light of the COVID-19 pandemic, representing typical developing economies like India.
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The worldwide economy has been greatly impacted by COVID-19 pandemic, and it has had a huge impact on the capital markets. This paper aims to investigate the impact of COVID-19 on the performance of companies listed on the Stock Exchange of Thailand (SET) using quarterly financial data of listed companies from 2016 to 2021 to predict corporate performance. The results show that the COVID-19 outbreak negatively impacted Thai firm performance, especially in the service, resource, real estate, and manufacturing industries, due to the implementation of a wide range of policies to control the spread of the virus. The findings support earlier research that the pandemic has had a serious negative impact on firm performance. However, uncertainty will remain until COVID-19 ends;policy implementations should facilitate these suffering industries in the short and long runs. This study addresses the research gap regarding the impact of COVID-19 on emerging economic activity from a firm-level perspective. © 2023 Conscientia Beam. All Rights Reserved.
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PurposeThe COVID-19 pandemic outbreak has created disruptions across the supply chain that are beyond the resources of small and medium-sized enterprises (SMEs) to effectively deal with. This study aims to examine the idea that top managers' business and political ties can play direct roles in enhancing SCR in SMEs during COVID-19 by providing access to valuable resources. The study further investigates integrative capability as an underlying mechanism through which the effects of business and political ties can be transformed into enhanced SCR.Design/methodology/approachResponses from 217 SMEs in the country of Jordan were received via an online survey. The measurement and structural models were tested using the partial least squares structural equation modelling (PLS-SEM) technique.FindingsThe study found that business and political ties are positively related to SCR. However, integrative capability fully mediates the relationship between business ties and SCR, whereas it partially mediates the relationship between political ties and SCR.Research limitations/implicationsThe study examined only the direct and indirect impacts of business and political ties on SCR. It could be extended by exploring the conditions under which they influence SCR.Originality/valueThe study explicates the role of top managers' business and political ties on improving SCR in a developing country context. It further examines the mediating role of integrative capability in the relationships between business and political ties and SCR.
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The COVID-19 pandemic has significantly affected firm performance. As a result, many studies have examined the significance of supply network complexity. Our paper uses the fuzzy set qualitative comparative analysis (fsQCA) method to investigate the causal relationships among the supply network complexity, geographic dispersion, inventory turns, and firm performance. Using a sample of 263 Chinese listed firms, we find that no single factor is necessary to achieve high firm performance during COVID-19 and reveal four paths to produce high performance: operational level driven, supply base complexity driven, and customer base complexity driven with supplier distance, and supply network complexity absence. Furthermore, our findings suggest that supply-based complexity-driven and customer-based complexity-driven can improve firm performance, but not all supply network complexity dimensions can improve firm performance. Hence, firms need to choose the suitable path based on their specific situations.
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The article concerns the potential influence of employees' dynamic capabilities on the performance of entire organization, which operates in crisis caused by Black Swan event. It is the expansion of job performance model based on employees' dynamic capabilities, proposing the possibility of translating the positive influence of those capabilities onto entire organization and underlining the importance of employees' dynamic capabilities during crisis within organization. Based on literature analysis, the shape of the amended model is proposed, in which employees' dynamic capabilities influence organizational performance through elements of the original model (person-job fit, work motivation, job satisfaction, work engagement and job performance), and additional ones: person-organization fit, person-supervisor fit. The proposed model is empirically verified based on the sample of 1160 organization operating in Poland, Italy and USA during an active wave of COVID-19 pandemic (which is an example of Black Swan event). The results obtained using path analysis confirmed that employees' dynamic capabilities indeed influence organizational performance of organizations operating in crisis caused by Black Swan event through elements proposed in the model.
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The coronavirus (COVID-19) pandemic has not only led to rapid innovation but also shortened the innovation cycle. By comparing the manufacturing and service industries, this study investigated the controversial relationship between product and process innovation from a long-term perspective and examined the synergistic effects of diverse types of innovation on firm performance. Recent five-year Korean Innovation Survey data showed that product and process innovation had interrelationships rather than a one-way sequential relationship. Furthermore, the four different innovation activities have synergistic effects on the firms' financial performance.
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In an era of globalization, it is commonly assumed that multicultural experiences foster leadership effectiveness. However, little research has systematically tested this assumption. We develop a theoretical perspective that articulates how and when multicultural experiences increase leadership effectiveness. We hypothesize that broad multicultural experiences increase individuals' leadership effectiveness by developing their communication competence. Because communication competence is particularly important for leading teams that are more multinational, we further hypothesize that individuals with broader multicultural experiences are particularly effective when leading more versus less multinational teams. Four studies test our theory using mixed methods (field survey, archival panel, field experiments) and diverse populations (corporate managers, soccer managers, hackathon leaders) in different countries (Australia, Britain, China, America). In Study 1, corporate managers with broader multicultural experiences were rated as more effective leaders, an effect mediated by communication competence. Analyzing a 25-year archival panel of English Premier League soccer managers, Study 2 replicates the positive effect of broad multicultural experiences using a team performance measure of leadership effectiveness. Importantly, this effect was moderated by team national diversity: soccer managers with broader multicultural experiences were particularly effective when leading teams with greater national diversity. Study 3 (digital health hackathon) and Study 4 (COVID-19 policy hackathon) replicate these effects in two field experiments, in which individuals with varying levels of multicultural experiences were randomly assigned to lead hackathon teams that naturally varied in national diversity. Overall, our research suggests that broad multicultural experiences help leaders communicate more competently and lead more effectively, especially when leading multinational teams.
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Researchers and practitioners have highlighted the importance of supply chain analytic capabilities in managing risk while maintaining a competitive advantage (COA). However, the importance of digital supply chain capabilities (DSCCs) in improving resilience, agility, and robustness practices to foster the implementation of sustainable supply chain practices and any resulting COA remains unclear. Based on the dynamic capabilities view, we propose a research model for achieving a COA in contexts of uncertainty, such as the COVID-19 pandemic. A survey of Indian small and medium-sized enterprises in the original equipment manufacturing industry, comprising 310 respondents, was administered. Using structural equation modeling, we examine the proposed model. The findings show a significant positive effect of DSCCs on supply chain resilience and agile practices. The findings also indicate that supply chain resilience, robustness, and agile practices positively affect sustainable supply chain practices. Moreover, sustainable supply chain practices positively influence COA. Furthermore, the study reveals that the effect of DSCCs on sustainable supply chain practices is mediated by supply chain resilience, robustness, and agile practices. Managers concerned with investment in sustainable supply chain practices can obtain a COA through the successful implementation of supply chain resilience, robustness, and agile practices.
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PurposeThis paper aims to assess the impact of credit risk on the market values of private banks during the corona pandemic. Design/methodology/approachThis study is identifying critical issues of credit risk at six great private banks. A conceptual framework is designed based on the Tobin Q model for investigating study hypotheses. Quantitative financial analysis methods have been used for processing data, such as financial ratios, arithmetic mean and multiple linear regression. FindingsThe most important result of this study is the lack of influence of credit risk on the market value of selected banks. Because the dimensions of credit risk have critical importance in increasing or decreasing the market value, these banks must continue to adopt quantitative financial analysis to measure credit risks to avoid their risk. Originality/valueThis study elaborates the need for financial indicators to help assess the market value of banks during the economic crises caused by the closure of commercial institutions during the corona pandemic. There is continued increase in bank credit to support these institutions, borrowers and cash withdrawals, which may affect their market reputation.
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The aim of this study is three-fold: first, to examine the relationship between government support and E-commerce adoption. Second, to investigate the nexus between government support and firm innovation. Third, to explore the relation of firm performance with E-commerce adoption and innovation. Using firm-level data from 31 countries during the time of COVID-19 pandemic, we find both E-commerce adoption and innovation are positively associated with government support. Further, we also find that such firms register significantly higher sales growth. The result remains consistent even after addressing the endogeneity issue. These results hold for the subsample of SMEs as well. © 2023 Economic Society of Australia, Queensland
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Businesses have been impacted particularly hard by the COVID-19 pandemic, resulting in a decline in productivity. Whether a remote work policy boosts the firm's productivity is still debatable. We use the COVID-19 World Bank Enterprise Survey, a cross-sectional dataset that covers Jordan and Morocco, to empirically examine this question. We use the propensity score matching technique to estimate the causal effect between remote work and firm performance. Results suggest the existence of a positive impact, suggesting that remote work policies cause an increase in productivity. In a further investigation, we perform our regression by country and firm size. Coefficients are found to remain positive in both countries but statistically significant only in Morocco. Regarding firm size, coefficients are found to be positive and statistically significant across all models. The paper offers some recommendations for policymakers in both countries to mitigate the ongoing crisis on firm performance.
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We investigate the capital structure of small- and medium-sized enterprises in Japan during 2007-2019 to identify whether firm-specific determinants of leverage exhibit locational differences among Japanese prefectures. To do so, we propose a testing scheme that disentangles potential similarities across prefecture pairs. When we apply the proposed testing scheme by creating 1081 prefecture pairs, we find that the impact of the firm-specific determinants of leverage does not greatly differ between prefecture pairs in terms of both sign and magnitude in contrast to the significant difference found by conventional hypothesis testing. As a convenient tool for other geographical research, we also discuss that the proposed testing scheme is helpful for regional policy-making, specifically during period of external shocks, the latest of which could be regarded as the COVID-19 pandemic.
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For the last few decades, the business practices have primarily been focusing on the green and sustainable practices that mainly focus on the preservation of the environment and correspond to corporate social responsibility. But the sudden outbreak of the COVID-19 pandemic has left unprecedented effects on the business world. Against this backdrop, the current study entails investigation of the antecedents and consequences of green supply chain management in the post-COVID-19 era. The term black swan stands true for the event. The term could be believed to be accurate as all aspects of the supply chain have been observed to be influenced by the swan (customers with panic/regulated buying, suppliers with hoarding, inventories witnessing bullwhip effects). The current study, therefore, offers a novel explanation by linking various actors of green supply chain management and how the interplay of those actors can influence the supply chain and overall firm performance post COVID-19.
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PurposeThis paper examines contextual factors that affect the association between board gender diversity and firm performance.Design/methodology/approachThe authors use a global sample of listed firms in the tourism industry in 30 countries from 2015 to 2020.FindingsFirst, firm performance is positively associated with the proportion of female directors on a board. Second, the positive association between firm performance and the proportion of female directors on the board is higher in (1) countries with stronger shareholder rights, (2) countries with stronger securities law regulation stipulating disclosure of board diversity, (3) countries with stronger economic empowerment of women, and (4) during the COVID-19 crisis. Third, corporate financial distress risk is lower in firms with higher proportion of female directors on the board. Fourth, the negative association between corporate financial distress risk and the proportion of female directors on the board is more pronounced in (1) countries with stronger securities law regulations stipulating disclosure of board gender diversity, (2) countries with stronger economic empowerment of women, and (3) during the COVID-19 crisis.Originality/valueThe results indicate that contextual factors (comprising country-level corporate governance structures, economic empowerment of women and economic crisis) can affect the association between board gender diversity and firm performance.
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The impact of the firm's pre-pandemic financial condition on the likelihood of a decline in its sales due to the COVID-19 pandemic in 35 developing and emerging countries is estimated. Results show that better access to finance reduces the likelihood of a decline in sales. Access to finance is more effective in arresting sales declines when firms fear that production cuts may lead to the loss of skilled workers and hard-to-replace input suppliers. It is less effective when workers, like women, do not wish to continue working for health or family reasons. Important policy implications are discussed. © 2023 John Wiley & Sons Ltd.
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Background: In the current knowledge age, the performance of logistics firms increasingly depends on knowledge and capabilities they can leverage in value-creation processes. The objective of this paper is to investigate the relationship between knowledge-based human resource management (HRM) practices and organizational performance mediated by logistics capability. Methods: Data from 93 small Finnish logistics service providers was collected by a questionnaire survey. Structural equation modeling and partial least squares analysis were used to test the hypothesized relationships between HRM practices and the organizational performance of logistics companies, as well as the mediating impact of logistics capability. Results: The results demonstrate that logistics capability fully mediates the relationship between HRM practices and the organizational performance of small logistics companies. Each of the three knowledge-based HRM practices-knowledge-based recruitment, training and development, and motivation-significantly influences logistics capability, which is, in turn, associated with the organizational performance of companies. Conclusions: This paper is one of the few among discussing knowledge-based HRM practices in logistics service research. The paper contributes to the literature on logistics by demonstrating the value of knowledge-based HRM practices in acquiring, developing, and leveraging knowledge to create organizational capabilities and ensure organizational performance. This study provides an improved understanding of the role of HRM and the resulting logistics capability in the performance of small logistics service companies.
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This paper aims primarily to examine the direct effect of Adaptive Management on Firm Performance during the COVID-19 pandemic and to measure the mediating role of organizational Agility in the relationship between adaptive Management and firm performance. For these purposes, quantitative research was applied with reference to the survey, and an empirical survey was conducted with the active participation of 368 Board of Directors and Senior Leaders of Telecommunication companies in Indonesia. In addition to the survey, seven face-to-face interviews were conducted to clarify the results of quantitative data. The quantitative data were further analyzed with co-variance -based Structural Equation Analysis (SEM) analysis using LISREL. Significant results indicate that Adaptive Management positively affects telecommunication companies' performance, both directly and indirectly, through organizational Agility. The study suggests Telecommunication Companies be adaptive, flexible, and collaborative with extraordinary plans to respond to external and internal situations during and after the pandemic COVID-19.
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Purpose: This study aims to empirically test and analyze the role of Green Human Resource Management (GHRM) and Green Supply Chain Management (GSCM) and Green Lifestyle on business sustainability mediated by digital skills. Design/Methodology: This study involved logistics managers at manufacturing companies in DKI Jakarta and West Java, Indonesia. It is because these two provinces have the largest manufacturing companies in Indonesia. From a late survey, the researchers obtained data from 250 questionnaires that were distributed. Then from all the data, there were 218 data that could be processed for further analysis. This study utilized the Structural Equation Model (SEM) analysis technique with AMOS 24 software in the data testing process. Findings: This study has confirmed a number of findings including: With the current COVID-19 Pandemic, Green Human Resources Management (GRHM) and Green Supply Chain Management (GSCM) are needed in Business Sustainability. GSCM has a positive effect on Business Sustainability (BS). Indonesia is also facing a revolution of 4.0 and 5.0, and Green Human Resources Management (GHRM) practice has an influence on BS and is deemed having significant and positive effect. In addition, manufacturing companies support the practice of green environment so that Green Supply Chain Management (GSCM) practice needs Digital Skill (DS) in enhancing its performance. Also, it has been proven in this research that GSCM has positive and significant effect. Digital Skill (DS), however, has no direct effect on Business Sustainability (BS). Research Limitation/Implications: This study focuses on the scope of green human resource management, green supply chain management, and green lifestyle and their impact on business sustainability mediated by digital skills. The next study is expected to examine the concept of green human resource management in service companies in order to obtain unique findings and confirm the relevance of the green human resource management concept in various business phenomena. Originality/value: This study explains the concept of Green Human Resource Management (GHRM), Green Supply Chain Management (GSCM) and Green Lifestyle (GL) towards Business Sustainability (BS) which is a different concept from the concept of Human Resource Management (HRM) implemented in manufacturing companies. In addition, this study discusses the green supply chain in its influence on business sustainability. Also, this study explains the role of the concept of Digital Skills (DS) in influencing Business Sustainability (BS).Practical and Social Implication: This study is expected to be a reference for practitioners, especially in the fields of Green Human Resource Management (GHRM), Green Lifestyle (GL), and Green Supply Chain Management (GSCM) in improving Business Sustainability (BS). Furthermore, the concept of green human resource management can be used by organizations as an effective alternative to increase responsibility in increasing business sustainability. Digital skills have a very significant role in implementing the research model.
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The COVID-19 pandemic is a substantial challenge for national economies. The survivability and better performance of some companies can serve as lessons for others, and those who learn the said lessons faster will take the lead in the post-COVID world. One of the national economic development drivers is high-growth firms (HGFs), also known as gazelles. High-growth middle-sized firms (HGMFs) have a notable impact on the national economy as significant employers, producers, and tax-payers. This paper aims to find the peculiarities in the reactions of HGMFs to the COVID-19 pandemic based on Russian firms' data. This research uses the official statistics of middle-sized Russian firms (7944 firms, 238 gazelles). Gazelles are identified based on 2016-2019 data and then compared with normal medium-sized firms (NMFs) using 2020 data. In total, 14 hypotheses are formulated and tested, with those hypotheses focused on five aspects of firms' performance: the ability to grow, profitability, efficiency, solvency, and employability. The research utilizes a one-way ANOVA test and Z-test for proportions for different types of hypotheses. Hypotheses testing shows that HGFs demonstrate better ability to grow, better efficiency, better solvency, and better employability than normal firms. However, they cannot maintain their higher profitability in 2020, despite higher net income values in comparison with other companies. The research confirms that HGMFs have unique capabilities to overcome these kinds of crises, and that such capabilities can be scaled to other business entities to increase their survivability in times of future crises. The research can be extended to small firms, 2021-year data analysis, and comparative cross-industry or cross-country analysis.
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Big data analytics capability (BDAC) is the key resource for competitive advantage in the drastically changing market. Although some studies have investigated the impacts on firm performance, there is limited under-standing of how firms enhance their BDAC. This study draws on organisational culture and investigates the effects of responsive and proactive market orientations on BDAC and firm performance. The results show that both responsive and proactive market orientations increase BDAC. Further, BDAC fully mediates the relationship between these two market orientations and firm performance. Our findings suggest that BDAC researchers should focus on market orientations that enhance BDAC.