Search Results (17)

In today’s evolving society, meaningful development cannot be fully realized without acknowledging the vital role of the electronics sector, especially as it functions within informal markets. These markets have become more than just centers of commerce; they serve as informal learning grounds where many young people acquire entrepreneurial skills, develop resilience, and find alternatives to social vices. For many, informal entrepreneurship is not just an option but a means of survival and self-empowerment. Despite their growing relevance, the link between the entrepreneurial abilities nurtured in these informal markets and actual business performance has not been adequately examined. This study, therefore, aimed to explore how informal electronics entrepreneurs in a developing economy navigate their environment, overcome challenges, and create wealth through vision, innovation, and calculated risk-taking. Anchored in institutional theory, the research employed a qualitative approach, using cluster, purposive, and simple random sampling to select participants from key informal business units. Interviews were conducted, transcribed, and analyzed using QSR NVivo 12, allowing for deep insight into the lived experiences of the entrepreneurs. Findings revealed that 78% of participants emphasized practical suggestions that aid informal business survival, such as customer-driven innovations, adaptive strategies, and avoiding confrontations with regulatory agencies. Key attributes such as foresight, adaptability, and risk management accounted for 66% of the variance in corporate success. Strategic and innovative approaches are enabling informal firms to endure and prosper, since 61% of respondents associated these competencies with organizational success. The new BSP framework, which integrates institutional and contingency theories, illustrates how informal enterprises endure by conforming to or opposing institutional pressures and adjusting to environmental changes. The results indicate that, when properly understood and supported, the informal electronics sector may develop sustainably. This study demonstrates that informal entrepreneurship is influenced by formal regulations, informal norms, and local enforcement mechanisms, therefore enhancing institutional theory and elucidating business behavior in developing nations. The Business Survival Paradigm [BSP] illustrates how informal enterprises navigate institutional obstacles to endure. It advocates for policies that integrate the official and informal sectors while fostering sustainable development. The paper advocates for ongoing market research to assist informal firms in remaining up-to-date. It implores authorities to acknowledge the innovative potential of the informal sector and to provide supportive frameworks for sustainable growth and formal transition where feasible. Full article

Nowadays, in the complex business network system, the interaction of firms across borders is facing several challenges. Many studies in the literature also suggest numerous approaches to overcome these challenges. However, a few of the obstacles for internationalizing firms were studied and the challenges are increasing against firms’ growth opportunities cross-border. Taking this into account, the present research emphasized the roles of enterprises’ e-business adoptions of countries on cross-border firms’ internationalization by drawing from network theory and technology–organization–environment frames. By employing a fixed effect model to 365 enterprises, leaders’ attitudes of preferring technology-intensive firms, network infrastructure, risk-averting attitudes, country’s market size, multilingual services, e-government status, threats from competitors, reliable utility sources, human capital quality, costs of adoptions and telecom services enrichments, and costs of adopting different online services need to be taken into account before internationalization of born global companies. Full article

In the context of China’s swift urbanization and heightened sustainability challenges, SMCEs in the construction industry play a critical role in driving both economic growth and sustainable development. This pioneering study introduces an integrative approach blending sustainability-oriented strategies (SSs) with financing guarantees, addressing key obstacles faced by these firms. Leveraging a multi-agent computational model, we dissect the dynamic interplay among construction SMCEs, governmental bodies, financial institutions, and guarantors, underscoring the transformative impact of financing guarantees on sustainable advancement. Our investigation reveals that optimally structured financing guarantees not only resolve funding challenges but also actively foster adherence to sustainability practices. This dual functionality positions such financial instruments as key enablers of SMCEs’ quest for sustainability, aligning economic objectives with ecological imperatives. Furthermore, we spotlight the transformative effect of strategic management on elevating SMCEs’ commitment to sustainable operations. Collectively, these insights offer actionable pathways for SMCEs embarking on sustainability endeavors, showcasing innovative financial solutions that do not detract from their economic prosperity. Full article

Business bribery is a particularly serious problem in the integration era. First, this article investigates the effects of institutional obstacles on firms’ bribery in 131 countries classified by nation income groups. Through the appropriate proposal of fitting functions, the relationship between obstructions and the predicted margin effect of bribery is intuitively elucidated. Second, this paper sheds light on the relationship between bribery payment and exports. Then the analysis is upgraded when controlling for the moderation of a firm’s growth constraints. The results detected that not only institutional barriers, but also internal and external hindrances play an essential role in the interaction between bribe payments and export share. More interestingly, this study scrutinizes the role of obstacles in this relationship separately. Besides, SMEs and large enterprises are also adopted in further sensitivity analyses. To solve the endogeneity problem, the study uses the average amount of bribery in a firm’s location, sector, and the country as an instrumental variable (IV). The results obtained are not consistent across country groups classified by national income. Due to obstacles during a firm’s operation, the amplitude of the positive effect of bribery on exports is reduced. Full article

Economic sustainability is closely linked to firm growth and employment stability, making them of great interest to policymakers and business leaders. Insights into the factors that impact employment growth and employment stability aid decision makers to develop policies that encourage economic growth and economic sustainability. This study used World Bank Enterprise Survey data to examine the effect of the business obstacles of financing, labour regulation, and under-skilled workforce on firm growth and on employment stability, estimated by the proportion of permanent to non-permanent workforce in East Asia and Pacific nations. The instrumental variables (IV) method was used with two-stage least squares (2SLS) to account for potential endogeneity between the business obstacles and employment growth and the proportion of permanent to non-permanent workers employed by firms. In addition, the quantile method was applied to capture the partial effect of the reported obstacles across different segments of firm growth. Findings included a significant negative effect of the financing obstacle on employment growth and therefore firm growth, particularly at the lowest levels thereof. In addition, financing and labour regulations obstacles have a significant, negative effect on the proportion of permanent employees in a firm’s workforce. Full article

The phenomenon of Global Software Development (GSD) has attracted the interest of businesses all over the world. It brings together partners from various national and corporate cultures to develop applications with numerous advantages, including access to a vast labor pool, cost savings, and round the clock growth. GSD, on the other hand, is technologically and organizationally diverse and poses a number of obstacles for the development team, such as geographical distance, cultural differences, communication and language barriers. Global services are provided by selecting one of the suitable global delivery options, i.e., the onshore model, nearshore model or offshore model. Experts typically choose one of the models based on the nature of the project and the needs of the customer. However, the vendors and clients lack an adequate decision support system that can assist them in making suitable sourcing decisions. Therefore, the current study presents a Multi-Criteria Decision Making (MCDM) model for offshore outsourcing decisions of application maintenance. To achieve our target, two systematic literature reviews were conducted that explored a list of 15 influencing factors. The identified factors were further evaluated in the outsourcing industry by performing an empirical study that resulted in a list of 10 critical success factors. We propose a sourcing framework based on the critical success factors that can assist decision makers in adopting a suitable sourcing strategy for the offshore outsourcing of application maintenance. In order to further enhance the decision-making process, the MCDM model is developed based on the Analytic Hierarchy Process (AHP). The MCDM model is evaluated with three case studies in highly reputable international companies, including IBM Stockholm, Sweden, Vattenfall AB, Stockholm, Sweden and a London based company in the United Kingdom. The outcomes of these case studies are further reviewed and validated by the outsourcing specialists in other firms. The proposed model is used as a decision support system that determines the ranking of sourcing alternatives and suggests the most suitable option for application maintenance offshoring. Full article

This paper examines how obstacles in access to finance, labour regulations, and employment quality affect employment growth and the permanent worker ratio at the firm level. Using firm-level data of 11,691 firms in 33 low-income and middle-income countries in Europe and Central Asia, where unemployment rates are the highest worldwide, this paper demonstrates that access to finance and employment quality obstacles hinder employment growth. The paper also shows that the greater the obstacles in access to finance and labour regulations, the lower the permanent worker ratio. The findings are robust when applying a two-stage least-squares method to address endogeneity issues. Furthermore, quantile regression analysis shows that access to finance obstacles impede the lowest-growth firms the most and the highest-growth firms the least. Our results indicate that significant financial and regulatory reforms are needed to spur sustainable employment growth. Full article

So far, CSR’s role in the high-tech industry is not fully explained by academic research, especially concerning the most burdensome obstacle to firms’ growth: acquiring debt financing. The paper aims to solve this puzzle and investigate whether young high-tech companies can attract more debt by engaging in CSR activity. To address the high-tech industry specificity, we divided CSR-reporting practice into three broad categories: employee, social, and environmental and analyzed their impact on the capital structure. Our sample consists of 92 firm-year observations covering the period 2014–2018. Using a regression method, we found out that only employee CSR plays a statistically significant role in shaping capital structure. We did not find evidence for the influence of the other types of CSR-reporting practices. The results suggest that employees are the key resource of high-tech companies, and, for this reason, they are at the management’s focus. This fact is visible at the financial reporting level and, as we interpret results, is also considered by credit providers. In a more general way, our results suggest that firms tend to choose CSR based on the importance of crucial resources. Full article

Innovation, in all its forms, has become a central activity in companies. Moreover, innovation is considered as the engine of growth in several countries. The main objective of this paper is to study the determinants of innovation (product and process) in firms in the Middle East and North Africa (MENA) region via concentrating on the impact of financial and non-financial obstacles. The empirical study refers to row data collected by the World Bank’s Survey of Enterprises (WBES) between 2013 and 2020 in 10 MENA countries. The empirical results of the probit model estimation show that international quality certification, women’s participation in ownership, and investment in research and development (R&D) have a positive impact on all types of innovation. Nevertheless, small firms, sole proprietorships, and firms managed by women are found to be less innovative. The problem of endogeneity between innovation and financial obstacles is controlled thanks to the use of the instrumental regression method (IV-probit). The results confirm that the variable measuring the financial obstacles is endogenous, and it impacts all types of innovation negatively. The results of the IV-probit regression show that the non-financial obstacles related to the business environment which negatively affect innovation are: business licensing and permits, corruption, access to electricity, labor regulations, political instability, and the practices of competitors in the informal sector. Full article

Considering the effective growth in challenges and an urge in establishment for sustainable business, companies trading globally are inclined towards the implementation of highly efficient cross-border reallocations of revolving capital. The prominent objective of this research paper is therefore the clear identification of the active key attributes and specifications of all strategic measures for efficient sustainable cross-border mergers and acquisitions (M&As) of the Islamic companies in the Gulf region that are keen to engage with the non-Islamic companies across the globe. This paper also explores the paradigm of culture, in its different manifestations, it was and still is a primary factor of creativity. This study also focuses on building some better understanding of the role of "Culture for Open Innovation Dynamics." Initially, since the need to interpret community, that can also influence the dynamics of open innovation, has sharply increased, the research addresses open innovation dynamics and its significant concerns related to cross border mergers and cross culture ventures of firms and organizations. The researcher purposively selected 15 financial institutions from the selected Gulf Cooperation Council (GCC) countries. Semi-structured interviews were conducted with 40 key individuals including Board of Directors (BOD) members, lawyers and the Shariah scholars involved with three Islamic banks and two Islamic insurance companies in GCC. The findings indicate a consensus among the respondents regarding how the Shariah corporate governance principles can present barriers for cross-border M&As. Key obstacles to the success of cross-border M&As between the Islamic and the non-Islamic companies include the Shariah compliance, weak systems of disclosure, dependency, corruption in compliance, having family members on the Board, weakened communication with external auditors, different interpretations of Shariah by different scholars and a lack of alternative Islamic financial instruments. The comprehensive research in this paper fills the research gap by specifying the key attributes of considering the future implementation and management of M&As in broader scopes. Full article

Low-fertility soil and the use of brackish water for irrigation act as obstacles and limit crop production. The utilization of municipal solid waste (MSW), compost (C), and treated wastewater (TWW) is receiving attention nowadays not only to overcome the above limitations but also as an efficient way for waste management and reuse of raw materials. In the present study, MSW compost in different ratios (5%, 10%, 20%, and 40%), fertigation and/or irrigation with TWW were studied in tomato plants (Solanum lycopersicum L.). The addition of compost increased organic content, pH, electrical conductivity (EC), and mineral content of the growing media, while fertigation and TWW supported the mineral status of the growing media, and this was reflected in the increase of N, K, and Na in tomato leaves. Plants grown in compost-based media with fertigation produced more leaves, compared to the control, while irrigation with TWW did not increase the number of leaves. Plant biomass increased with the application of ≥20% C, fertigation, and/or TWW applications. Plant yield increased in 40% C, while fertigation increased yield in case of lower (5%-10% C) compost ratios, but TWW application did not change the yield. The combination of high C ratios and fertigation and/or TWW decreased tomato fresh weight. Different levels of C did not affect leaf photosynthesis, stomatal conductance, internal CO₂ concentration, and chlorophyll fluorescence, but, in general, the combination of compost with fertigation and/or TWW affected them negatively. Fruit total soluble solids, acidity, ascorbic acid, firmness, and total phenolics were increased with the high ratios of compost and/or fertigation and TWW applications, but marketability did not. Bacteria (total coliform and Escherichia coli) units increased in growing media subjected to TWW, but lower levels were counted on the fruit, mainly due to splashing or fruit contact with the soil. The results indicate that up to 40% C can be added into the substrate, as increased plant growth and maintained plant yield for greenhouse tomato cultivation is observed, while fertigation and TWW could be used in a controlled manner as alternative means for nutrient and irrigation in vegetables following safety aspects. Full article

The commercial sector in Nigeria has been greatly hampered due to the poor availability of reliable electricity. In a 2014 World Bank report, nearly half of the firms doing business in Nigeria identified electricity as a major constraint, with over a quarter of them listing electricity as their biggest obstacle. The business losses due to electrical outages have been significant, with losses averaging about 16% of annual sales. The lack of access to reliable electricity is one of the biggest challenges to economic growth in Nigeria. This paper proposes a means of powering the commercial sector in Nigeria using urban swarm electrification. It outlines a conceptual framework for using a distributed network made up of grid-connected home solar PV systems as a viable option for providing the commercial sector with more reliable access to electricity. It further addresses the policy implications for the commercial sector with the enablement of more electrification options, implications that include strong economic impact, as well as the expansion and creation of new industries. Full article

No-till practices reduce soil erosion, conserve soil organic carbon, and enhance soil fertility. Yet, many factors could limit their adoption in organic farming. The present study investigated the effects of tillage and cover cropping on weed biomass, plant growth, yield, and fruit quality of an organic processing tomato (Solanum lycopersicon L. var. Elba F1) over two seasons (2015–2017). We compared systems where processing tomato was transplanted on i) tilled soil following or not a winter cover crop (Trifolium squarrosum L.) and with/without a biodegradable plastic mulch; and ii) no-till where clover was used, after rolling and flaming, as dead mulch. Tomato in no-till suffered from high weed competition and low soil nitrogen availability leading to lower plant growth, N uptake, and yield components with respect to tilled systems. The total yield in no-till declined to 6.8 and 18.3 t ha⁻¹ in 2016 and 2017, respectively, with at least a 65% decrease compared to tilled clover-based systems. No evidence of growth-limiting soil compaction was noticed but a slightly higher soil resistance was in the no-till topsoil. Tillage and cover crop residues did not significantly change tomato quality (pH, total soluble solids, firmness). The incorporation of clover as green manure was generally more advantageous over no-till. This was partly due to the low performance of the cover crop where improvement may limit the obstacles (i.e., N supply and weed infestation) and enable the implementation of no-till in organic vegetable systems. Full article

Micro, small, and medium enterprises (MSMEs) contribute to the economic development of most developing countries. However, the economic performance of the MSMEs is often restricted by several obstacles. This paper reports on a study of the impacts of public sector corruption on employment growth in MSMEs, as perceived by their managers/owners. The data originated from a nationwide survey that involved MSMEs managers/owners in Papua New Guinea (PNG) that were selected by a stratified random sampling technic. The data was analyzed using a two-stage least squares (2SLS) regression model. The results show that MSME managers/owners perceive that corruption in the public sector is generally linked to an increase in employment growth in their firms. Medium-size enterprises benefit most from corruption in the public sector, whereas small-size firms appear not to benefit. The findings indicate that other than corruption, there might be failures in the public institutions that are hampering the competitiveness, innovations and efficiency in MSMEs. Corrupt practices can precipitate the loss of revenue that would have accrued to the government from tax that could be used to provide facilities required by the public institutions. Corruption in the public institutions of developing countries such as PNG can be tackled by implementing strategies that promote zero-tolerance for corruption. These include promoting public awareness of the cost of corruption to the country’s economy, improvement in the quality of governance, and expanding the capacity of government agencies for effective and efficient service delivery. Increasing the penalty for engaging in corrupt practices could also be considered, while people who engage in practices that discourage corruption should be rewarded. The findings contribute to a potential strategy that could be used to promote ease of doing business in a country by considering the obstacles that MSMEs face. Full article

Societal, economic and ecological prosperity will be highly affected in the next decades due to socio-demographic developments and climate change. The design of more sustainable logistics business types can address such challenges to build more resilient supply chains. Therefore, the discussion with regard to transformational potentials of logistics businesses provides valuable information to shape business strategies according to future sustainability requirements. Within the framework of this paper, a mixed-methods approach has been applied to explore and analyze drivers and barriers for sustainability transformations of logistics service providers (LSPs) and to evaluate related business strategies with optimization and simulation methods in a concrete regional context. So far, LSPs’ main obstacles are competitive pressure, focal firm orientation, and dependence on other supply chain members, while supply chain collaboration and integration, as well as the integration of sharing economy solutions and new digital technologies, have been identified as promising for sustainability transitions. Accordingly, this paper suggests a roadmap for the logistics sector while defining retention strategies such as growth, replication, mimicry, and mergence to meet future societal and environmental requirements. By doing so, this study contributes to theory by constructing the Lead Sustainability Service Provider (6PL) business model (arche)type and its role in societal transitions. Full article