scholarly journals Can Trade Credit Maintain Sustainable R&D Investment of SMEs? — Evidence from China

2019 ◽  
Vol 11 (3) ◽  
pp. 843 ◽  
Author(s):  
Langzi Chen ◽  
Zhihong Chen ◽  
Jian Li
Keyword(s):  
Developing Countries ◽  
Panel Data ◽  
Propensity Score ◽  
Information Asymmetry ◽  
Financial Constraints ◽  
Trade Credit ◽  
Small And Medium Enterprises ◽  
Medium Enterprises ◽  
D Investment

Due to the long-term nature and information asymmetry, SMEs (Small and Medium Enterprises) experience serious financial constraints that affect their R&D investments. This article examines the effect of trade credit maintaining sustainable R&D investment of SMEs under financial constraints. Using the panel data of Chinese SMEs from 2002–2014, it was found that although the R&D investments of SMEs are restricted by financial constraints, trade credit can maintain the sustainability of enterprises’ R&D investment. Private enterprises are more reliant on trade credit, which can be intensified during periods of monetary tightening. Considering the counterfactual framework and the endogenous problems, the empirical results were also robust when using propensity score matching. To summarize, this article develops a new explanation for maintaining sustainable R&D investment of SMEs under financial constraints in developing countries.

scholarly journals The Development of Islamic Crowdfunding in Indonesia and Its Impact towards SMEs

2021 ◽  
Vol 4 (3) ◽  
pp. 20
Author(s):  
Rifka Mustafida ◽  
Najim Nur Fauziah ◽  
Zahra Nabila Kurnia
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Literature Review ◽  
Financial Services ◽  
Small And Medium Enterprises ◽  
Financial History ◽  
Capital Access ◽  
Banking Institution ◽  
Medium Enterprises

Small and Medium Enterprises (SMEs) is taking role as the backbone for sustained economic growth, particularly in developing countries. However, SMEs might not easily get the financing from the banking institution due to the lack of financial history and collateral. Islamic crowdfunding has become a solution to deliver accessible financial services to the unbanked SMEs in the countries, especially in Indonesia. Islamic crowdfunding impacts the SMEs in regard to the ease of obtaining capital access, improving the welfare of SMEs, and creating growth for the national economy in the long-term. By using literature review, this study aims to show how the Islamic crowdfunding develops and how it affects the SMEs in Indonesia. The result shows that Islamic crowdfunding potentially benefits the SMEs in capital access, improving the welfare and economic growth.  

Supporting Small and Medium Enterpries to Access Technological Innovation State Fund: International Experience and Lessons for Vietnam

2018 ◽  
Vol 34 (1) ◽  
Author(s):  
Huong Vu Thanh ◽  
Thu Anh Nguyen ◽  
Mai Thi Thanh Nguyen
Keyword(s):  
Developing Countries ◽  
Technological Innovation ◽  
Financial Support ◽  
Technology Innovation ◽  
Small And Medium Enterprises ◽  
International Experience ◽  
Advanced Technologies ◽  
Medium Enterprises ◽  
Developed Nations ◽  
State Fund

Technological innovation state funds supporting small and medium enterprises (SMEs) are not common in the developing countries like Vietnam, but are common in the developed nations like the European countries and Korea. The financial and non-financial support of these funds has contributed significantly to the development of many SMEs. Learning from the funds which have successfully facilitated SMEs in innovating and developing advanced technologies is meaningful to the Vietnamese sicence and techonology management bodies and state funds. This article will review the experience of some typical fund in supporting SMEs, thereby providing some lessons for technology innovation Funds of Vietnam to create a more favorable environment for SMEs to access funds.

A Conceptual Framework for the Acceptance of E-Commerce Technologies among Organizations in Developing Countries

2020 ◽  
pp. 205-210
Author(s):  
A. M. Meirmanova
Keyword(s):  
Developing Countries ◽  
Conceptual Framework ◽  
Small And Medium Enterprises ◽  
Cultural Dimensions ◽  
Cultural Dimension ◽  
Unified Theory ◽  
Use Of Technology ◽  
Hofstede’S Cultural Dimensions ◽  
Hofstede's Cultural Dimensions ◽  
Medium Enterprises

The presented study examines e-commerce technologies a new conceptual framework of the unified theory of acceptance and use of technology among small and medium enterprises (SMEs) in developing countries.Aim. The study aims to identify factors for the implementation and acceptance of e-commerce among small and medium enterprises (SMEs) in developing countries.Tasks. The authors utilize tools of G. Hofstede’s cultural dimensions theory to describe the emotional attitude of an individual to the use of technology.Methods. This study examines various aspects of the method of the unified theory of acceptance and use of technology (UTAUT), which is implemented in many studies of behavioral intentions of individuals in the adoption of new technologies.Results. For the first time, a conceptual (predictive) model based on four moderating variables is proposed. The variables include such cultural dimension parameters as power distance index  (PDI), individualism/collectivism  (IDV), uncertainty avoidance  (UAI), and long-term/short-term orientation (LTO). These moderators boost the effect of the basic constructs on the behavioral propensity for the use and application of technologies.Conclusions. Based on the considered conceptual framework, the authors propose a number of recommendations for the development of tools that would ensure the required level of employee engagement in the acceptance and use of e-commerce technologies among small and medium enterprises (SMEs) in developing countries. Another promising direction involves using the tools of G. Hofstede’s cultural dimensions theory to examine the specific aspects of the acceptance and use of information technology among organizations belonging to different national business cultures.

EMPLOYER BRANDING OF MICRO, SMALL AND MEDIUM ENTERPRISES (MSMES) IN INDONESIA

2019 ◽  
Vol 4 (1) ◽  
pp. 165-174
Author(s):  
Ambara Purusottama ◽  
Teddy Trilaksono ◽  
Ari Ardianto
Keyword(s):  
Financial Constraints ◽  
Small And Medium Enterprises ◽  
Human Resources Management ◽  
Qualitative Approach ◽  
Human Resource Managers ◽  
Employer Branding ◽  
Resources Management ◽  
Resource Managers ◽  
Medium Enterprises ◽  
Depth Interviews

This study attempts to narrow the gaps that exist in the literature about branding in the context of micro, small and medium enterprises (MSMEs). The research method used is a qualitative approach through in-depth interviews with Owners, Managing Directors, and Human Resource Managers in MSMEs. The results of this study indicate that the UMKM employer branding is still limited to intention. It can be seen from the absence of programs or activities that support employer branding programs that are felt directly by their employees. This is induced by the focus of MSME businessmen who are still on fundamental issues such as financial constraints and the absence of loyal consumers. The results of this study can be used by educators or stakeholders in Indonesian MSMEs as a reference for formulating employer branding approaches and strategies that are in line with the characteristics of MSMEs in Indonesia. Keywords: Employer branding, Human resources management, Micro, small and medium enterprises

Analysis of Major Problems Faced by Small Firms in North India

2015 ◽  
Vol 15 ◽  
pp. 150-160
Author(s):  
Davinder Singh ◽  
Jaimal Singh Khamba ◽  
Tarun Nanda
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Economic Development ◽  
Small Firms ◽  
Small And Medium Enterprises ◽  
Developed Countries ◽  
North India ◽  
Small Enterprises ◽  
Employment Generation ◽  
Medium Enterprises

Micro, Small and Medium Enterprises (MSMEs) have been noted to play a significant role in promoting economic growth in less developed countries, developing and also in developed countries. Worldwide, the micro and small enterprises have been accepted as the engine of economic growth of any nation. Small and Medium Enterprises are the backbone of the economies, because it trigger employment, output, export, poverty alleviation, economic empowerment, economic development etc. in developed as well as in developing countries. It is more important to developing countries as the poverty and unemployment are burning problems. MSMEs have been playing a momentous role in overall economic development of a country like India where millions of people are unemployed or underemployed. Therefore, the growth of small sectors is essential for the growth in the GDP, employment generation, total manufacturing production and export. India, being one of the fastest growing economies of the world, needs to pay an honest attention for the utmost growth of MSMEs for its increased contribution in above areas.

scholarly journals Promoting Clusters and Networks for Small and Medium Enterprises to Economic Development in the Globalization Era

SAGE Open ◽  
2017 ◽  
Vol 7 (1) ◽  
pp. 215824401769715 ◽  
Author(s):  
Sara Foghani ◽  
Batiah Mahadi ◽  
Rosmini Omar
Keyword(s):  
Developing Countries ◽  
Small And Medium Enterprises ◽  
Empirical Studies ◽  
Developed Countries ◽  
Policy Makers ◽  
Ongoing Research ◽  
Global Challenges ◽  
Medium Enterprises ◽  
Global Arena ◽  
Asian Developing Countries

This research attempts to explore the importance of cluster-based systems in preparation for small and medium enterprises (SMEs) to go global, and it is an ongoing research. The findings of this research are aimed at providing insights to policy makers, academicians, and practitioners with the objective of creating initiatives, strategies, and policies, which reflect the primary aim of supporting SMEs in managing global challenges. SMEs that are cluster-based have the potential to facilitate the successful inclusion of SMEs in the growth of productivity and networks of global distribution. Most Asian developing countries are in the dark when it comes to this matter. The main purpose of this study is to investigate the relations between the capabilities of the networks and clusters in developing SMEs’ preparedness in facing business players in the global arena. This study’s scope includes specific Asian developing countries. Even though the issue of clusters in SMEs has been well researched in developed countries, such empirical studies are still lacking in the Asian region despite its prevalent collectivism practice. In the concluding analysis, the study intends to develop a model emphasizing the cluster-based industrial SMEs toward globalization.

Technical efficiency and its determinants in the Indian textile garments industry

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Abdulla ◽  
Shiv Kumar
Keyword(s):  
Panel Data ◽  
Technical Efficiency ◽  
Textile Industry ◽  
Small And Medium Enterprises ◽  
Stochastic Frontier ◽  
Efficiency Score ◽  
Value Chains ◽  
Small Scale ◽  
Content Type ◽  
Medium Enterprises

Purpose This paper aims to examine technical efficiency and its determinants in Indian textile garments industry in post-agreement on textiles and clothing regime and evaluate the technical efficiency among micro, small and medium enterprises (MSMEs) firms. Design/methodology/approach This study uses unbalanced panel data for the period 2005–2010 to 2015–2016. The stochastic frontier function is used to estimate technical efficiency and its determinants. Findings The results show that the overall ecosystem of textile garments’ value chains could be improved to enhance the technical efficiency thereof. The result also reveals that small-scale firms have the highest technical efficiency scores, and medium-scale firms have the least technical efficiency score among all the categories of MSMEs. Research limitations/implications The textile garments industry needs to define its innovation strategies, as these strategies lead to different results that can be achieved only through the management of resources dedicated to the generation and implementation of innovations. Practical implications This study has shown that to offset India’s cost disadvantage in the international markets, there is a need to develop an ecosystem of textile manufacturing and value chains, eliminate the inverted duty structure (where inputs are taxed at a higher rate than the final product) and switch over from shuttle looms toward shuttle-less looms. This would unleash the potential of textile and garments industry and make it globally competitive and technically efficient. Further, there will be an alignment with the ease of doing business with an appropriate mix of policy, technology, institution, infrastructure, information and services. Originality/value Using frontier production function takes stochastic context into account for the dynamic character of technical efficiency and its components. Most of the past studies have assessed technical efficiency at the aggregate level using three-digit National Industrial Classification (NIC) or four-digit NIC code. An analysis at higher levels of aggregation masks the variation in technical efficiency. This study used five-digit NIC data to measure the firm-specific technical efficiency of the textile industry. According to the authors’ knowledge, this study is the first of its kind in the Indian textile industry using stochastic frontier approach and panel data. Further, it also looks at the contribution of different determinants in technical efficiency to the firms.

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