Inventory Turnover and Firm Profitability: A Saudi Arabian Investigation

The purpose of this paper is to explore the impact of inventory turnover on the profitability level of Saudi manufacturers. The data comprises 78 manufacturers listed on the Saudi Stock Exchange and was used to test the research hypothesis. The related data over the 2017–2021 period were collected from annual reports and the Datastream database. After running a multiple regression analysis with a fixed effects model, findings showed that the higher the inventory turnover ratio, the higher the cost which could be suppressed, and the greater the profitability of a company. The outcomes of this study have significant implications for managerial accounting issues in the setting of Saudi Arabia. Further, they provide policy recommendations to decision makers and assist managers in enhancing sustainability in the manufacturing sector. This research is the first to investigate this relationship including the impact of COVID-19 among Saudi companies in several industries, thus filling a gap in comparable research. © 2023 by the authors.

Productivity and firm exit during the COVID-19 crisis: cross-country evidence

This paper examines whether the economic crisis induced by the COVID-19 pandemic exhibits a Schumpeterian "cleansing” of less productive firms. Using firm-level data collected for 34 economies up to 18 months into the crisis, the study finds that less productive firms have a higher probability of permanently closing during the crisis, suggesting that the process of cleansing out unproductive activities is occurring. The paper also uncovers strong and negative relationships of firm exit with digital presence and with innovation. These relationships are driven by small firms. The study further finds that a burdensome business environment increases the probability of firm exit, also driven by small firms, and that a negative relationship exists between firm exit and age. Finally, evidence shows that the cleansing process is disrupted in countries which have introduced policies imposing a moratorium on insolvency procedures.Plain English SummaryThe purpose of this analysis is to investigate whether firms that are more productive are less likely to cease operation during the economic crisis induced by the COVID-19 pandemic. To verify this hypothesis, the paper uses data on firm characteristics, productivity, and status of operation from 34 countries. The data on firm characteristics and productivity were collected before the crisis, while data on the operating status were collected within 18 months since the appearance of the coronavirus. The results of the paper show that indeed, more productive firms are more likely to survive the crisis. In addition, businesses that have been in operation for longer, or ones which have a website or have introduced a new product in the years before the crisis are more likely to continue existing. The positive role of digitalization and innovation is true especially for small firms. Conversely, those businesses which have to spend more time in compliance with government regulations are less likely to survive. The policy implications show the importance of digitalization and innovation, the vulnerabilities of small firms, and the significance of good governance.

Clio: Digital Transformation of Legal Practice - At COVID-19 Speed

Professional services firms face evolving client needs and can better meet these needs through digital transformation. We offer the case of Clio, a leading provider of cloud-based legal technology for law firms to better serve their clients. With the onset of COVID-19, the company recognized that remote client access and services, previously embraced by early adopters, would now become essential for all law firms' survival. The company's response resulted in dramatic growth and the transition from a customer base of early adopters to customers spanning most of the innovation adoption curve. Clio's success throughout this period is attributable to three core elements of the company's strategy: (1) Deep, culturally-rooted commitment to customer success, (2) Research-based understanding of the needs of both law firms and their clients, and (3) Industry thought leadership and assistance. These elements generalize beyond Clio and the pandemic and will help guide any organization seeking to become not just a vendor but an essential partner to its customers. © 2022 IEEE Computer Society. All rights reserved.

Exploring key factors sustaining micro and small food, wine and hospitality firms through the COVID-19 crisis

PurposeThe purpose of this study is to contribute to the understanding of how micro and small firm owners/managers cope with an extreme event, as this has implications on how firms make decisions. The study considers self-efficacy and stakeholder theory as tools to gain more in-depth knowledge.Design/methodology/approachThe perspectives of owners/managers of 308 micro and small firms operating in the food, wine and hospitality industries in Italy, one of the most affected nations, were drawn through an online questionnaire.FindingsThe importance of determination, passion, family support and a sense of responsibility towards internal and external stakeholders emerged as fundamental factors helping firms confront the crisis. Five theoretical dimensions that help explain how firm owners/managers make decisions to safeguard their firms during the COVID-19 crisis are identified. Three of these, "motivational”, "stepping up” and "firm-based”, are directly associated with tenets of self-efficacy theory, and two, "human-moral” and "entity-based”, with stakeholder theory. Further complementing this second contribution, a theoretical framework underlining conceptual and practical implications is proposed.Originality/valueThe study delves into the challenges and survival of a key group of firms facing an extreme crisis. The identified dimensions provide useful conceptual depth and practical insights that, together, form part of a proposed framework. For instance, the "human-moral” dimension reflects upon aspects that have wider implications, notably, for firms' employees and the wider society.

Bricolage as an effective tool for the survival of owner-managed SMEs during crises

This study analyzes how the resources and capabilities of the owner-manager influence the firm's capacity to survive during crises. We conceptualize that only the deliberate use of available resources (bricolage) can enhance this capacity, and that "making-do" behaviors mediate the influence of the owner's social and human resources on the firm's capacity to survive crises. Based on a sample of 462 Chilean owner-managed small and medium enterprises (SME), we test our hypotheses using a complementary partial least squares-structural equation modeling (PLS-SEM) and fuzzy set-qualitative comparative analysis (fsQCA) approach. The results indicate that when founders deliberatively use their social and cognitive resources, they enhance the firm's capacity to survive in crisis environments. The fsQCA results complement these outcomes by showing that low levels of survival capacity are related to low levels of bricolage and founders' ties. (PsycInfo Database Record (c) 2023 APA, all rights reserved)

Storm survivors: Evidence from firms in times of pandemic

The COVID-19 outbreak has had severe economic consequences across the globe. The crisis emanating from the pandemic has caused demand and supply side shocks, more far reaching than any crisis in living memory. We use a new data set from the 2020/21 Egyptian Industrial Firm Behavior Survey to examine determinants of firms' resilience during the pandemic. Crisis present the opportunity for what Schumpeter (In Economics of the Recovery Program, McGraw-Hill, 1934) calls creative destruction. Have manufacturing firms been all hit by the crisis equally, or were less efficient firms more likely to exit or downsize their activities thereby 'cleansing' the market? Two sets of factors affect firm dynamics and survival: (1) firms' innate characteristics and;(2) firm behavior, which captures the extent to which good management, innovation, the adoption of advanced technologies and worker training, have provided an opportunity for firms to adapt their business models and show greater resilience in coping with the crisis. We illustrate the vulnerability of private, smaller, informal firms and those that are not located in industrial zones. Second, pre-COVID behavioral characteristics matter for firm dynamics. The food sector and sectors identified as 'COVID sectors' show more resilience. Some behavioral traits vary by sector and are more influential depending on firm size.

Storm survivors: Evidence from firms in times of pandemic

The COVID-19 outbreak has had severe economic consequences across the globe. The crisis emanating from the pandemic has caused demand and supply side shocks, more far reaching than any crisis in living memory. We use a new data set from the 2020/21 Egyptian Industrial Firm Behavior Survey to examine determinants of firms' resilience during the pandemic. Crisis present the opportunity for what Schumpeter (In Economics of the Recovery Program, McGraw-Hill, 1934) calls creative destruction. Have manufacturing firms been all hit by the crisis equally, or were less efficient firms more likely to exit or downsize their activities thereby ‘cleansing' the market? Two sets of factors affect firm dynamics and survival: (1) firms' innate characteristics and;(2) firm behavior, which captures the extent to which good management, innovation, the adoption of advanced technologies and worker training, have provided an opportunity for firms to adapt their business models and show greater resilience in coping with the crisis. We illustrate the vulnerability of private, smaller, informal firms and those that are not located in industrial zones. Second, pre-COVID behavioral characteristics matter for firm dynamics. The food sector and sectors identified as ‘COVID sectors' show more resilience. Some behavioral traits vary by sector and are more influential depending on firm size. [ FROM AUTHOR]

Strategic flexibility or persistence? Examining the survival path of export enterprises under COVID-19

Purpose>The rising uncertainties in the macroeconomic environment exacerbate the challenges firms face in the export market. This study aims to explore which strategy is suitable for export enterprises to develop sustainably under COVID-19.Design/methodology/approach>Based on the sample data of China's A-stock listed manufacturing firms from 2010 to 2020, this study applies a survival analysis method to explore the impact of strategic flexibility on export firm survival. Furthermore, this study uses the difference-in-difference model to test the relationship between strategic flexibility and firms' profits in the context of the pandemic.Findings>The results show that strategic flexibility can increase firms' survival time, improving dynamic production and innovation capabilities, which is favorable for their sustainable development. Meanwhile, after the spread of COVID-19, firms with strategic flexibility have higher profits than those without. This influence mechanism mainly involves exploring new markets that can improve the company revenue and the coordination capabilities of the supply chain;this reduces corporate costs.Originality/value>This study expands relevant research on the factors affecting the survival of export enterprises and supplements research on the economic consequences of firms' strategic flexibility;this also enriches the dynamic capability theory. Additionally, it provides important implications for firms to enhance strategic flexibility and recommends government implementation of policies that encourage the domestic sales of commodities originally produced for exports under COVID-19.

Bricolage as an effective tool for the survival of owner-managed SMEs during crises

This study analyzes how the resources and capabilities of the owner-manager influence the firm's capacity to survive during crises. We conceptualize that only the deliberate use of available resources (bricolage) can enhance this capacity, and that "making-do” behaviors mediate the influence of the owner's social and human resources on the firm's capacity to survive crises. Based on a sample of 462 Chilean owner-managed small and medium enterprises (SME), we test our hypotheses using a complementary partial least squares-structural equation modeling (PLS-SEM) and fuzzy set-qualitative comparative analysis (fsQCA) approach. The results indicate that when founders deliberatively use their social and cognitive resources, they enhance the firm's capacity to survive in crisis environments. The fsQCA results complement these outcomes by showing that low levels of survival capacity are related to low levels of bricolage and founders' ties.

Exit and transition: Exploring the survival status of Airbnb listings in a time of professionalization

This study analyzes the survival status of shared and non-shared listings in the peer-to-peer accommodation market. Using a large data set from Airbnb in Beijing, we identify 8640 shared listings and 50,741 non-shared listings. We then investigate the exit event and the identity transition event for both types of listings by applying a discrete-time hazard model. Our results suggest that, for the exit event, the two types of listings show significant differences in terms of survival determinants, including response time, tourism specialization, market volume, professionalization, and Covid-19. For the identity transition event, we find that internal flow exists in the market, mainly from shared listings to non-shared listings, and this flow is influenced by certain factors (i.e., capacity, facility, rating, reviews, minimum stay, service quality, tourism specialization, market volume, plat-form professionalization, and Covid-19).

Productivity and firm exit during the COVID-19 crisis: cross-country evidence

This paper examines whether the economic crisis induced by the COVID-19 pandemic exhibits a Schumpeterian “cleansing” of less productive firms. Using firm-level data collected for 34 economies up to 18 months into the crisis, the study finds that less productive firms have a higher probability of permanently closing during the crisis, suggesting that the process of cleansing out unproductive activities is occurring. The paper also uncovers strong and negative relationships of firm exit with digital presence and with innovation. These relationships are driven by small firms. The study further finds that a burdensome business environment increases the probability of firm exit, also driven by small firms, and that a negative relationship exists between firm exit and age. Finally, evidence shows that the cleansing process is disrupted in countries which have introduced policies imposing a moratorium on insolvency procedures. © 2022, The Author(s), under exclusive licence to Springer Science+Business Media, LLC, part of Springer Nature.

Exploring key factors sustaining micro and small food, wine and hospitality firms through the COVID-19 crisis

Purpose: The purpose of this study is to contribute to the understanding of how micro and small firm owners/managers cope with an extreme event, as this has implications on how firms make decisions. The study considers self-efficacy and stakeholder theory as tools to gain more in-depth knowledge. Design/methodology/approach: The perspectives of owners/managers of 308 micro and small firms operating in the food, wine and hospitality industries in Italy, one of the most affected nations, were drawn through an online questionnaire. Findings: The importance of determination, passion, family support and a sense of responsibility towards internal and external stakeholders emerged as fundamental factors helping firms confront the crisis. Five theoretical dimensions that help explain how firm owners/managers make decisions to safeguard their firms during the COVID-19 crisis are identified. Three of these, “motivational”, “stepping up” and “firm-based”, are directly associated with tenets of self-efficacy theory, and two, “human-moral” and “entity-based”, with stakeholder theory. Further complementing this second contribution, a theoretical framework underlining conceptual and practical implications is proposed. Originality/value: The study delves into the challenges and survival of a key group of firms facing an extreme crisis. The identified dimensions provide useful conceptual depth and practical insights that, together, form part of a proposed framework. For instance, the “human-moral” dimension reflects upon aspects that have wider implications, notably, for firms' employees and the wider society. © 2022, Emerald Publishing Limited.

Operational Resilience as a Key Determinant of Corporate Sustainable Longevity in the Indonesian Jamu Industry

The jamu (Indonesian traditional herbal drink) industry has grown in popularity because of people's increased interest in the qualities of herbal remedies for bodily immunity. The COVID-19 pandemic has affected not only the market but also how businesses have managed their supply chains and production. COVID-19 has been claimed to be a test of a company's long-term viability. Sustainability refers to a company's ability to last a long time (corporate longevity). The tug of war between economic prosperity, environmental quality, and social justice that guarantees enterprises are profitable and sustainable is the main issue for companies in developing governance. From a theoretical standpoint, longevity is an intriguing problem. There are two types of corporate longevity: corporate longevity (CL) and corporate sustainable longevity (CSL). Little research has specifically examined the internal aspects of CSL. It necessitates several specific characteristics that all play a role in CSL. This research intends to highlight operational resilience as a crucial predictor of CSL's significance in the jamu business. Companies that have consistently produced and benefitted from their business operations, before, during, and after the pandemic, have faced challenges of sustainability or longevity. Predecessor independent variables, and moderating or mediating variables, can be used to enable the operational resilience stance. To achieve CSL, the company must know how much it will determine its position in numerous ways in company practice. This study contributes to exploring dimensions and indicators of operational resilience to determine CSL in its relevance to the jamu industry. Different roles for operational resilience in different industry practices are also feasible.

Firm Survival and Gender of Firm Owner in Times of COVID-19: Evidence from 10 European Countries

This paper uses firm level data from World Bank Enterprise surveys conducted in 2019, and COVID-19 follow-up surveys conducted in 2020, in ten European countries to investigate the link between the gender of the firm’s owner and the firm’s survival until 2020. The empirical investigation uses econometric models that control for the firm’s characteristics that are known to be related to firm survival. The estimated effect of female ownership is positive ceteris paribus. Furthermore, the size of this estimated effect can be considered to be large on average. Having a female owner helped firms to survive. © 2022 by the author. Licensee MDPI, Basel, Switzerland.

Covid-19, Fiscal Policies, and Small-and-Medium-Sized Firm Survival: Evidence From the Cross-Country Matching Analysis.

OBJECTIVE: The present study examines the effect of fiscal policies on firm survival for small-and-medium-sized enterprises in the cross-country level firm-level data. RESEARCH DESIGN: A propensity score matching analysis is utilised for the post-COVID-19 period firms by using the World Bank Enterprise Follow-up Surveys for the pandemic period. Small-and-medium-sized enterprises are essential to the economy; firm failures can increase in a pandemic. RESULTS: The obtained findings show that the effect of fiscal policies has an essential effect on small-and-medium-sized enterprises survival in the COVID-19 pandemic period by using a cross-country heterogenous firm-level sample. CONCLUSIONS: In this context, the present study shed new light on the link between COVID-19-related fiscal policies and small-and-medium-sized firm survival in developing countries.

Strategic flexibility or persistence? Examining the survival path of export enterprises under COVID-19

Purpose The rising uncertainties in the macroeconomic environment exacerbate the challenges firms face in the export market. This study aims to explore which strategy is suitable for export enterprises to develop sustainably under COVID-19. Design/methodology/approach Based on the sample data of China's A-stock listed manufacturing firms from 2010 to 2020, this study applies a survival analysis method to explore the impact of strategic flexibility on export firm survival. Furthermore, this study uses the difference-in-difference model to test the relationship between strategic flexibility and firms' profits in the context of the pandemic. Findings The results show that strategic flexibility can increase firms' survival time, improving dynamic production and innovation capabilities, which is favorable for their sustainable development. Meanwhile, after the spread of COVID-19, firms with strategic flexibility have higher profits than those without. This influence mechanism mainly involves exploring new markets that can improve the company revenue and the coordination capabilities of the supply chain;this reduces corporate costs. Originality/value This study expands relevant research on the factors affecting the survival of export enterprises and supplements research on the economic consequences of firms' strategic flexibility;this also enriches the dynamic capability theory. Additionally, it provides important implications for firms to enhance strategic flexibility and recommends government implementation of policies that encourage the domestic sales of commodities originally produced for exports under COVID-19.

The effect of coronavirus (COVID-19) on companies in Valle del Cauca

The health crisis caused by the spread of the COVID-19 coronavirus has brought about the closure of many companies. This article analyses the determinants of the suspension of productive activities as a result of COVID-19 using data regarding companies in Valle del Cauca. By estimating a probit and a survival model, our results show the fragility of smaller companies with respect to size and age in facing adverse and unexpected shocks;while intangibles (dammed income) significantly reduce the probability of company withdrawal during the initial phase of the crisis. Finally, the article exhorts that it is necessary to design priority attention mechanisms for the financing of companies and targeted aid.

Understanding firm survival in a global crisis

Purpose: Global crises create an environment that is characterized by a fight for survival by countries, companies and citizens. While firms have adopted business initiatives to ensure survival in a global crisis, many measures are geared toward preventing customer churn, declining revenues and eroding market share. Such short-term focus raises an important question regarding long-term survival – how can firms survive a global crisis? The purpose of this study is to investigate how firms can survive a global crisis. Design/methodology/approach: This study considers pandemics as the study context and uses a triangulation methodology (past research, managerial insights and popular press articles) to advance the organizing framework. Using the process study approach, the proposed framework recognizes the onset characteristics of a global crisis with a focus on pandemics and the government actions that reflect the pandemic onset. The framework also identifies a logical order of three marketplace reactions to the pandemic – management response, consumer response and critical business transformations that ultimately lead to firm survival – and advances related research propositions of such reactions. Findings: By deploying critical business transformations, firms can ensure firm survival in a pandemic by fostering engagement with customers, employees and resources. Additionally, the moderators that influence the relationships between (1) management response and critical business transformations, (2) consumer response and critical business transformations, and (3) critical business transformations and firm survival are identified. Finally, this study presents an agenda for future research. Research limitations/implications: To the authors' best knowledge, this is the first study to adopt an interdisciplinary approach to study firm survival in a global crisis such as a pandemic. This study answers the call for more research to the growing field of pandemic research in the areas of marketing research and marketing strategy. Practical implications: The learnings from this study can help firms on what to anticipate and how to respond in a crisis such as a pandemic. Social implications: Societal welfare is accounted for as firms plan to deal with a crisis. Originality/value: This is the first study to propose a strategic framework to deal with a crisis that is largely unanticipated where the duration and the impact is not predictable. © 2021, Emerald Publishing Limited.