Murad Harasheh, Alessandro Capocchi and Andrea Amaduzzi
There is still an ongoing debate on the value relevance of capital structure and its determinants. Recently the issue has been explored in family firms after being explored in…
Abstract
Purpose
There is still an ongoing debate on the value relevance of capital structure and its determinants. Recently the issue has been explored in family firms after being explored in mature firms. This paper investigates the role of institutional investors and the firm's innovation activity in influencing the firm's decision and ability to acquire debt capital.
Design/methodology/approach
A large sample of 700 privately-held family firms in Italy from 2010 to 2019. Two analysis techniques are used: panel analysis and path analysis. The value of debt and the debt ratio are used as leverage measures. The value of patent (as a proxy for innovation) and institutional investor are the explanatory variables.
Findings
The results show that institutional investors have no relationship with financial leverage measures except when controlling for an interaction variable (Institutional investors × Lombardy region). The patent value is positively correlated with debt; however, the ratio patent-to-asset is negatively related to financial leverage indicating higher risk exposure. The nonlinearity test demonstrates a turning point when the relationship between patent value and debt inverts.
Practical implications
Firms should monitor their innovation activity since excessive innovation increases risk exposure and affects financing opportunities and value. The involvement of institutional investors does not always enhance value.
Originality/value
Existing literature focuses separately on family firm innovations and financial leverage as outcome variables, emphasizing the role of institutional investors in both fields by adopting agency theory and socioemotional wealth framework. In this study, the authors go further by merging both relationships, investigating the dynamics of the institutional-family firm innovation relationship in influencing the firm's capital structure. The authors contribute to the ongoing debate by providing original findings on capital structure, governance and innovation, supported by rigorous methods to enhance family firms' decision-making.
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Leszek Czerwonka and Jacek Jaworski
The main aim of the paper is to examine the small and medium-sized enterprises’ (SMEs) capital structure determinants in Central and Eastern Europe (CEE) (Poland, Czechia…
Abstract
Purpose
The main aim of the paper is to examine the small and medium-sized enterprises’ (SMEs) capital structure determinants in Central and Eastern Europe (CEE) (Poland, Czechia, Slovakia, Hungary, Bulgaria and Romania).
Design/methodology/approach
The authors used panel models to analyze financial data of 15,253 companies operating in the years 2014–2017.
Findings
The authors confirmed the dominant role of firm-specific factors. Industry and country variables explain only 4% of debt variability of the surveyed companies. The direction of influence of the diagnosed firm-specific factors is consistent with the pecking order theory. About one-fourth of SMEs in CEE hold a stock of debt capacity. It negatively affects the share of debt in the capital. The authors did not confirm the influence of the systematic industry business risk.
Research limitations/implications
The limitations of the study are (1) the inclusion of only six CEE countries in the sample; (2) the exclusion of microenterprises from the sample; (3) the capital structure relationships are observed following the applications of static panel; (4) the endogeneity issue has not been addressed in the model.
Practical implications
This study shows that business-friendly institutional environment is an important factor influencing the indebtedness of companies. It increases the leverage and, consequently, the return on equity, especially in CEE countries.
Originality/value
SME analyses in CEE countries are not as frequent as for other regions. Despite the classical determinants of the SMEs' capital structure, the authors have included debt capacity and systematic industry business risk in this study.
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Abstract
Purpose
In recent years, railway systems worldwide have faced challenges such as the modernization of engineering projects, efficient management of intelligent digital railway equipment, rapid growth in passenger and freight transport demands, customized transport services and ubiquitous transport safety. The transformation toward intelligent digital transformation in railways has emerged as an effective response to the formidable challenges confronting the railway industry, thereby becoming an inevitable global trend in railway development.
Design/methodology/approach
This paper, therefore, conducts a comprehensive analysis of the current state of global railway intelligent digital transformation, focusing on the characteristics and applications of intelligent digital transformation technology. It summarizes and analyzes relevant technologies and applicable scenarios in the realm of railway intelligent digital transformation, theoretically elucidating the development process of global railway intelligent digital transformation and, in practice, providing guidance and empirical examples for railway intelligence and digital transformation.
Findings
Digital and intelligent technologies follow a wave-like pattern of continuous iterative evolution, progressing from the early stages, to a period of increasing attention and popularity, then to a phase of declining interest, followed by a resurgence and ultimately reaching a mature stage.
Originality/value
The results offer reference and guidance to fully leverage the opportunities presented by the latest wave of the digitalization revolution, accelerate the overall upgrade of the railway industry and promote global collaborative development in railway intelligent digital transformation.
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Yasmeen Al Balushi, Stuart Locke and Zakaria Boulanouar
Small and medium enterprises’ (SMEs) capital structure and financial policies are important areas of policy concern. Only a limited number of studies on capital structure have…
Abstract
Purpose
Small and medium enterprises’ (SMEs) capital structure and financial policies are important areas of policy concern. Only a limited number of studies on capital structure have, however, been conducted on SMEs, and this deficiency is particularly evident when investigating what influences funding decisions around Islamic finance. This paper accordingly aims to investigate whether Omani SME owner-managers’ intention to adopt Islamic finance is influenced by their knowledge of Islamic finance, their own characteristics and/or their firms’ characteristics.
Design/methodology/approach
The authors administered a questionnaire survey via face-to-face interviews to 385 SME owner-managers operating in Muscat, Oman’s capital city. The Kruskal–Wallis one-way analysis of variance (ANOVA) non-parametric test was used to analyse the questionnaire survey data.
Findings
The findings indicate that while SME owner-managers’ Islamic financial knowledge and personal characteristics do influence their intention to adopt Islamic finance, their firms’ characteristics have no significant influence on SME owner-managers’ decisions to accede to Islamic financing.
Research limitations/implications
The research’s first limitation is that it gathered data from SME owner-managers in Muscat only. Future studies could survey a wider sample of Omani SME owner-managers. Second, the study’s findings cannot be generalised to large and public firms, as the sample includes owner-managers of SMEs only. Finally, there is a need to investigate other factors such as nonfinancial and behavioural factors, which were not explored in the present study, but which may influence SME owner-managers’ Islamic financial decisions.
Originality/value
Theoretical and empirical studies on capital structure have focused primarily on large listed firms. Only a few studies have paid attention to the capital structure of SMEs, particularly in the context of an emerging market such as Oman. This gap in the literature is mostly evident when investigating the factors that influence the funding decision towards Islamic financing in a country, such as Oman, where Islamic finance represents a new banking sector offering.
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Mira Timperi, Kirsi Kokkonen, Lea Hannola and Kalle Elfvengren
Digital twins (DTs) and other data-based solutions are gaining an increasing foothold in manufacturing business, whereas a mere physical product is often insufficient to satisfy…
Abstract
Purpose
Digital twins (DTs) and other data-based solutions are gaining an increasing foothold in manufacturing business, whereas a mere physical product is often insufficient to satisfy all customers’ expectations. As a result, companies are seeking novel ways of value creation, and one exciting opportunity is the use of DTs in new business creation, where they can offer diverse possibilities for innovative businesses. This paper aims to examine the impacts and challenges of DTs on new business creation in the manufacturing industry.
Design/methodology/approach
This study used a qualitative research approach, which combined semistructured interviews and an iterative Delphi study as research methods. The participants for the interviews and Delphi study were from different sectors and roles in the manufacturing industry. Altogether, 10 interviewees from eight companies took part in the interviews, and the expert panel of the Delphi method contained 12 professionals.
Findings
The results of the study indicated that DT can significantly impact the business models of manufacturing companies. DT can enhance operations, offer cost savings and business growth and allow stakeholders to focus on core competencies while developing their businesses. Several challenges for leveraging DT were identified, such as data ownership, resource allocation, internal bureaucracy and the difficulty of demonstrating the actual value of data-based services to potential customers.
Originality/value
This paper provides a structured expert-led assessment of the potential impacts of DT utilization in the creation of new business opportunities.
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Sofía Louise Martínez-Martínez
Entrepreneurship is presented as a vehicle for innovation and social development. Given the importance of entrepreneurship, the objective of this study was to analyze the…
Abstract
Purpose
Entrepreneurship is presented as a vehicle for innovation and social development. Given the importance of entrepreneurship, the objective of this study was to analyze the psychological and sociological dimensions by determining the factors that explain individual perceptions and cultural support for entrepreneurship.
Design/methodology/approach
Using Global Entrepreneurship Monitor (GEM) data obtained from the Adult Population Survey (APS) (N = 2,500) in the region of Andalusia (Spain), a quantitative analysis was carried out, specifically a multivariate analysis based on four-stage linear regressions.
Findings
The variables examined do not explain the psychological and sociological dimensions to the same extent. The results highlight the existence of cultural homogeneity between provinces, the importance of sociodemographic variables and the influence of the entrepreneurial expectations and experiences of the population, especially in shaping individual perceptions towards entrepreneurship.
Research limitations/implications
The replication of the study at the national and international levels is proposed in order to delve deeper into the cultural differences that condition entrepreneurship. Including new variables associated with entrepreneurial human capital could also be of interest.
Practical implications
The results can help to improve the design and implementation of policies and programs aimed at fostering entrepreneurship through the promotion of favorable individual perceptions and entrepreneurial culture.
Originality/value
The originality of this study is the consideration of individual perceptions and cultural support for entrepreneurship as dependent variables, since they are normally incorporated as explanatory factors. The results contribute to the advancement of knowledge of the entrepreneurial phenomenon through two approaches, psychological and sociological.
Propósito
El emprendimiento se presenta como vehículo de innovación y desarrollo social. Dada la importancia del fenómeno, el objetivo de esta investigación es analizar las dimensiones psicológica y sociológica del emprendimiento a través de los factores que explican las percepciones individuales y la cultura de apoyo al emprendimiento.
Diseño/metodología/enfoque
A partir de datos GEM obtenidos mediante la Encuesta de Población Adulta (N = 2,500) en Andalucía (España), se desarrolla una metodología cuantitativa, concretamente un análisis multivariante basado en regresiones lineales de cuatro etapas.
Resultados
Las variables consideradas no explican en la misma medida la dimensión psicológica y la sociológica. Se evidencia la existencia de homogeneidad cultural interprovincial, la importancia de las variables sociodemográficas y la influencia de las expectativas y las experiencias vinculadas al emprendimiento, especialmente en la formación de percepciones individuales.
Limitaciones/implicaciones de la investigación
Se propone la réplica del estudio a nivel nacional e internacional para ahondar en las diferencias culturales que condicionan la creación empresarial. Se considera interesante incluir nuevas variables asociadas con el capital humano emprendedor.
Implicaciones prácticas
Mejora del diseño y la implementación de políticas y programas dirigidos a potenciar el emprendimiento, a través del fomento de las percepciones individuales favorables y la cultura emprendedora.
Originalidad/valor
La originalidad reside en la consideración de las percepciones individuales y la cultura de apoyo al emprendimiento como variables dependientes, ya que normalmente se incorporan como factores explicativos. Se contribuye al avance del conocimiento sobre el fenómeno emprendedor a través de dos enfoques, el psicológico y el sociológico.
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Eric Yaw Naminse, Jincai Zhuang and Fangyang Zhu
There is a recent growing interest to find a lasting intervention to rural poverty (RP) in developing countries based on farmer entrepreneurship and innovation. The purpose of…
Abstract
Purpose
There is a recent growing interest to find a lasting intervention to rural poverty (RP) in developing countries based on farmer entrepreneurship and innovation. The purpose of this paper, therefore, is to examine the relation between entrepreneurship and RP alleviation in two resource-constrained provinces of China. This paper assesses the influence of three capabilities of farm entrepreneurs – educational, economic and socio-cultural – on farmer entrepreneurship growth and how these, in turn, impact alleviation of RP.
Design/methodology/approach
Household survey data comprising 363 respondents were taken from four deprived communities in two provinces of China. The paper employed structural equation modeling (SEM), using AMOS 21.0 alongside SPSS 20.0 to test the relations between the constructs.
Findings
The results show that a statistically significant and positive relation exists between entrepreneurship and RP alleviation in China. The findings of the study further reveal that qualitative growth of entrepreneurship has a stronger positive influence on RP alleviation than on quantitative growth, and socio-cultural capabilities of respondents significantly and positively affect entrepreneurial growth of farmers, rather than education and economic capabilities.
Research limitations/implications
The use of data from four communities in two provinces tends to limit the ability to generalize the findings of the study. Furthermore, the survey did not collect information on non-farm entrepreneurs, making it impossible to compare the findings from farm entrepreneurs with non-farm entrepreneurs.
Practical implications
The findings have practical implications for policy makers in rural China toward addressing targeted RP. This paper, therefore, suggests that entrepreneurship should be pursued vigorously among farmers in rural areas of China to help solve poverty. The paper also presents a useful lesson for various stakeholders in poverty alleviation programs in other developing countries.
Originality/value
This paper contributes to the academic literature on the entrepreneurship–RP alleviation nexus by combining the theory of capability and SEM in the analysis of an emerging economy such as China.
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Mira Holopainen, Minna Saunila and Juhani Ukko
This study aims to focus on the connection between digital business strategy and performance measurement and management (PMM).
Abstract
Purpose
This study aims to focus on the connection between digital business strategy and performance measurement and management (PMM).
Design/methodology/approach
The implications of digital business strategy and its dimensions with regard to PMM were investigated through a survey. The survey questionnaire provided 202 valid cases with a focus on senior management of small- and medium-sized enterprises. Strategic dimensions were identified from the literature on management in the context of digitalization to build a theoretical framework that highlights the mechanisms that companies should focus on when managing and implementing digital technologies successfully.
Findings
The aspects that comprise digital business strategy are grouped into five major dimensions: technological understanding, goals, resources, management and responsibilities. The study reveals a direct and positive relationship between goals and management related to digital business strategy and PMM.
Research limitations/implications
The study contributes to the existing PMM literature in the context of digitalization.
Practical implications
The results indicate that if a company has excellent goals and management with regard to its digital business strategy, it uses PMM in a more successful and effective way.
Originality/value
To the best of the authors’ knowledge, this study is among the first to examine PMM in terms of managing digital business strategy by trying to determine the extent to which the elements of digital business strategy can be integrated effectively into PMM.
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Tomi J. Kallio, Kirsi-Mari Kallio, Mira Huusko, Riitta Pyykkö and Jussi Kivistö
This article studies the tensions between universities' accountability and autonomy in response to the demands of public steering mechanisms coordinating higher education…
Abstract
Purpose
This article studies the tensions between universities' accountability and autonomy in response to the demands of public steering mechanisms coordinating higher education institutions.
Design/methodology/approach
Demonstrating the tension between accountability and autonomy, the impact and relevance of public steering mechanisms coordinating higher education are studied via a survey with selected representative Finnish universities. The response rate was an exceptionally high 94%. In addition to the statistical analysis of the survey, open-ended questions were also analyzed to give a more in-depth understanding of the findings. The study uses paradox theory and institutional complexity as its theoretical lenses.
Findings
The empirical analysis of this study shows a considerable gap between the experienced impact and the experienced relevance of the steering mechanisms in higher education. The authors’ further analysis of the open-ended data shows that indicator-based funding allocation has undermined the perceived university autonomy. The authors highlight the paradoxical tensions of university autonomy and higher education institutions' steering mechanisms' requirement for accountability. Finding an acceptable balance between accountability and institutional autonomy plays an important role in designing higher education policies.
Originality/value
The authors found that even if a steering mechanism is experienced as impactful, it is not necessarily considered relevant. One of the key aspects in understanding the reasons behind this mismatch is related to university autonomy. Most impactful steering mechanisms become considered less relevant because they also endanger institutional autonomy. In this sense, it could be expected that steering mechanisms should better balance accountability and autonomy.
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Liisa Lee, Mira Hammarén and Outi Kanste
To explore Finnish experts' perceptions of the forms of digital healthcare that are anticipated to be the most utilised in healthcare in the medium-term future (year 2035) and…
Abstract
Purpose
To explore Finnish experts' perceptions of the forms of digital healthcare that are anticipated to be the most utilised in healthcare in the medium-term future (year 2035) and anticipated healthcare workforce impacts those forms will have.
Design/methodology/approach
A total of 17 experts representing relevant interest groups participated in a biphasic online Delphi study. The results for each round were analysed using descriptive statistical methods and inductive content analysis.
Findings
The forms of digital healthcare that the experts perceived as most likely to be utilised were those enabling patient participation, efficient organisation of services and automated data collection and analysis. The main impacts on the healthcare workforce were seen as being the redirection of workforce needs within the healthcare sector and need for new skills and new professions. The decrease in the need for a healthcare workforce was seen as less likely. The impacts were perceived as being constructed through three means: impacts within healthcare organisations, impacts on healthcare professions and impacts via patients.
Research limitations/implications
The results are not necessarily transferable to other contexts because the experts anticipated local futures. Patients' views were also excluded from the study.
Originality/value
Healthcare organisations function in complex systems where drivers, such as regional demographics, legislation and financial constraints, dictate how digital healthcare is utilised. Anticipating the workforce effects of digital healthcare utilisation has received limited attention; the study adds to this discussion.