Carlos M. Jardón and Nilda C. Tañski
This paper aims to study the competitiveness of subsistence small businesses (SSBs) and the use of the place to get competitive advantages. Complementarily the paper analyzes the…
Abstract
Purpose
This paper aims to study the competitiveness of subsistence small businesses (SSBs) and the use of the place to get competitive advantages. Complementarily the paper analyzes the intellectual capital as a possible mediator for the competitiveness of SSBs.
Design/methodology/approach
Data were obtained by conducting surveys with owners and managers of wood-processing companies located in Misiones (Argentina), during 2015. The research uses principal component analysis and path analysis to study the relationships. The study introduces tangible resources and size as control variables.
Findings
The results show the importance of place as source of competitive advantages in SSBs. The SSBs present competitive advantages that generate better results. The place affects competitive advantages directly and indirectly through intellectual capital.
Research limitations/implications
The data used refer to a certain period, so the use of the panel data enables generalizing findings over time. Sample is in a particular region and sector, and generalizations should be done carefully.
Practical implications
SSBs should raise the strategy integrating short and long term, which requires a strengthening of intellectual capital, especially in cooperation, professionalism and training.
Social implications
The findings suggest specific support local policies to these businesses to improve their performance in developing countries.
Originality/value
SSBs are very important in developing countries, but they are not sufficiently studied. This paper examines place-based competitiveness of SSBs and the moderation effect of dimensions of intellectual capital.
Details
Keywords
Subsistence small businesses (SSBs) do not seek the maximum benefit; they only seek a benefit that enough satisfies their basic needs. In consequence, a dual behaviour of…
Abstract
Purpose
Subsistence small businesses (SSBs) do not seek the maximum benefit; they only seek a benefit that enough satisfies their basic needs. In consequence, a dual behaviour of companies is expected and possibly the competitiveness of these companies is different. The purpose of this paper is to study the dual behaviour of SSBs and the differences about their competitive advantages.
Design/methodology/approach
Data were obtained by conducting surveys with owners and managers of wood processing companies located in a region of Misiones (Argentina). The results were checked by interviews in 2012 and 2015. The research uses principal component analysis and K-means to classify the different behaviour and MANOVA analysis to study the relationships.
Findings
The findings suggest two types of SSBs and show that competitive advantages are different into two groups of companies.
Research limitations/implications
The data used refer to a certain period of time, with interviews in next periods. Sample is in a particular region and sector and generalisations should be done carefully. The variables are measured with subjective questions.
Practical implications
The findings suggest instruments to change the strategy of unsatisfied SSBs to grow.
Social implications
The growth of SSBs is very important in poorest areas. The paper suggest governments’ politics that facilitate a stable environment for improving competitiveness of SSBs.
Originality/value
SSBs are very important in developing countries, but they are not sufficiently studied. The research shows the importance of satisfying principle in the competitiveness of subsistence entrepreneurs.
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Keywords
This paper aims to analyse the location as root of the specificity of the sources of competitiveness in subsistence small businesses (SSBs) of wood industry to improve the…
Abstract
Purpose
This paper aims to analyse the location as root of the specificity of the sources of competitiveness in subsistence small businesses (SSBs) of wood industry to improve the situation of poverty and the different behaviour of subsistence entrepreneurs.
Design/methodology/approach
The research uses an exploratory analysis based on principal components in two phases and confirmatory analysis based on partial least square techniques applied to a sample of 113 small and medium enterprises of wood industry in Oberá, a region of Argentina.
Findings
The analysis evidences the use of competitiveness sources of SSBs and a double behaviour in SSBs according to subsistence threshold. Satisfactory SSBs use competitiveness sources to improve organizational and economic performance. Unsatisfactory SSBs find economic performance without relation to organizational performance.
Research limitations/implications
Data are cross-sectional, and in a conjuncture of economy expansion, future research should monitor the sample of firms using panel data to assess the development of relations. Sample is in a particular region and sector, and generalizations should be done carefully.
Practical implications
SSBs should raise the strategy integrating short and long term, which requires a strengthening of intellectual capital, especially in cooperation, professionalism and training. They could integrate and share a business community to develop competitive advantages of collective systemic.
Originality/value
The research shows the importance of the location for the competitiveness of SSBs and provides a classification of SSBs according to their performance.
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Carlos M. Jardon and Xavier Martinez–Cobas
Small-scale forestry-based enterprising communities are particularly associated with their territory and, therefore, are very conditioned by the local culture. This paper aims to…
Abstract
Purpose
Small-scale forestry-based enterprising communities are particularly associated with their territory and, therefore, are very conditioned by the local culture. This paper aims to explore the relationship between culture and competitiveness in small-scale Latin-American forestry-based enterprising communities.
Design/methodology/approach
This study used 212 surveys in companies linked to the production, industrialisation and commercialisation sector of the forestry industry in the province of Misiones (Argentina), using partial least squares to analyse the relationships thereof.
Findings
Culture and competitive advantages improve the growth of small-scale timber businesses and growth, in turn, increases financial performance. However, culture does not have an impact on competitive advantage and no interaction effect of culture on competitive advantage was detected. The results can indicate that there might be a need to incorporate other concepts and operationalisation that are better suited to the geographical and industrial contexts in developing countries.
Research limitations/implications
The literature and measures used to operationalise variables in the survey did not necessarily succeed in capturing the culture in the studied small- and medium-sized enterprises. In addition, the design of the sample and subjective measures may partially condition the results.
Practical implications
For business managers and consultants, this study indicates that they must take into account the local culture to improve performance. Entrepreneurs must reorient the company strategy towards the long term, integrating local culture into their strategy to generate competitive advantages.
Social implications
Political authorities and social agents should also take into consideration the cultural aspects of the territory when implementing regulations and specific actions to improve the industry and strengthen the sense of community. The results highlight the vitality of animators and development agencies and of any factor that fosters social cohesion.
Originality/value
The paper shows a new approach to the relationship between culture and competitiveness in small-scale forestry-based enterprising communities, combining performance in a formal sector with the bazaar model.
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Carlos M. Jardon and Maria Susana Martos
Emerging clusters, formed by small to medium‐sized enterprises (SMEs) of slow growth and embryonic management systems present a different competitive advantage scheme. The purpose…
Abstract
Purpose
Emerging clusters, formed by small to medium‐sized enterprises (SMEs) of slow growth and embryonic management systems present a different competitive advantage scheme. The purpose of this paper is to analyze relationships among components of intellectual capital within a model of competitive advantages in emerging clusters in a region of Latin America.
Design/methodology/approach
An intellectual capital model in a competitive advantage scheme is defined. A sequential method based in PLS technique is suggested to select the model and estimate the parameters. A sample of 113 wood manufacturing SMEs in a region of Argentina was selected.
Findings
The competitive advantage scheme in emerging clusters of SMEs proposes that resources affect organizational capabilities; territory and organizational capabilities affect strategic factors which improve performance. In this scheme, human capital affects structural capital and structural capital generates relational capital. SMEs organize tangible resources and relational capital to build organizational capabilities.
Research limitations/implications
The sample is a cross‐section. The performance is subjectively measured by the satisfaction of the entrepreneurs with different items.
Practical implications
The paper establishes suggestions to strategies of the SMEs in emerging clusters and politics of developing countries. This paper enables practitioners and scholars to comprehend and make legitimate decisions and conclusions that can foster business growth.
Originality/value
The authors tested the impact of dimensions of intellectual capital on performance in emerging clusters of developing countries within a competitive advantage scheme, showing relationships among intellectual capital dimensions and competitive advantages. The analysis differentiates between intellectual capital dimension and organizational capabilities.
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Carlos Maria F‐Jardón and Maria Susana Martos
There are different models to measure the effect of intellectual capital on firm performance. These models depend on different dimensions of intellectual capital, the…
Abstract
Purpose
There are different models to measure the effect of intellectual capital on firm performance. These models depend on different dimensions of intellectual capital, the interrelations between them and the effects on performance. It is important to analyze several specificities in small and medium sized enterprises (SME) in developing countries. This paper aims to test diverse models to verify the previously mentioned relations applied to wood manufacturer SMEs of Oberá (Argentina).
Design/methodology/approach
A global model including the variables used in the previous literature is used. The paper establishes hypotheses for testing this model and us PLS technique to estimate the parameters of the model in a sample of 113 wood manufacturer SMEs in Oberá (Argentina).
Findings
The only dimension of intellectual capital directly affecting performance is structural capital. The other dimensions exert an indirect effect through structural capital.
Research limitations/implications
The model does not use all the possible variables to characterize intellectual capital. The causality elements cannot be verified in a temporary horizon because the data are cross‐sectional. In addition, when making reference to data of a particular period of time, there may be causes that imply relations of accidental type. Moreover, the measures used were subjective. This paper only studies the SMEs of the Argentine wood industry.
Practical implications
The paper offers several suggestions to implement strategies for local SMEs and to support aid to projects for developing countries.
Originality/value
The paper tests different models to analyze the impact of dimensions of intellectual capital on performance in SMEs of developing countries and provides information on the wood manufacturer SMEs in Argentina.
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Carlos M. F-Jardon and Regina Negri Pagani
Small and medium enterprises (SMEs), which main objective is to satisfy the basic needs of the entrepreneur, when geographically concentrated make up subsistence clusters. The…
Abstract
Purpose
Small and medium enterprises (SMEs), which main objective is to satisfy the basic needs of the entrepreneur, when geographically concentrated make up subsistence clusters. The purpose of this paper is to analyze collective efficiency in subsistence clusters as growth strategy and how is the process through which the relational capital and territorial proximity altogether improve performance of firms.
Design/methodology/approach
The research uses partial least squares techniques applied to a sample of 113 SMEs of wood industry in Oberá, Argentina.
Findings
SMEs in subsistence clusters can use relational capital and territory as resources to generate competitive advantages. These competitive advantages foster performance. In consequence, collective efficiency appears as growth strategy in subsistence SMEs.
Research limitations/implications
Data are cross-sectional and in a conjuncture of economy expansion, future research should monitor the sample of firms using panel data to assess the development of relations. Sample is in a particular region and sector and generalizations should be done carefully.
Practical implications
SMEs probably should integrate and share industrial and business structures to develop systemic competitive advantages with a collective character. SMEs should leverage their spatial interaction to build trust and establish networks of cooperation that will be the source of their collective efficiency. These collaboration networks should base in the local knowledge.
Social implications
Subsistence SMEs have strong impact on the most disadvantaged areas in developing countries. Growth strategies to professionalize these SMEs will have a major impact on the endogenous development of those territories.
Originality/value
The research provides a mechanism through which collective efficiency leads to better performance for subsistence SMEs.
Details
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Carlos Maria Jardon and Amandio Dasilva
Small businesses created as a subsistence activity (subsistence small businesses (SSBs)), often are oriented towards the short term. The environmental performance, by contrast, is…
Abstract
Purpose
Small businesses created as a subsistence activity (subsistence small businesses (SSBs)), often are oriented towards the short term. The environmental performance, by contrast, is an indicator of long-term strategies. The purpsoe of this paper is to analyse how intellectual capital (IC) dimensions affect environmental concern, preparing SSBs to have a proper environmental behaviour in the future.
Design/methodology/approach
A method based on the partial least square technique is suggested to select the model and estimate the parameters. A sample of 113 small businesses in the timber industry in a region of Argentina was selected for this study.
Findings
The results indicate that IC promotes environmental concern. Relational capital directly affects environmental concern, human capital and structural capital and these, in turn, indirectly affect the environmental concern through relational capital in SSBs.
Research limitations/implications
The sample used is a cross-section. IC is subjectively measured. This paper only studies small businesses in the timber sector in a region of Latin America.
Practical implications
This paper enables practitioners and scholars to understand and make legitimate decisions and conclusions that can foster SSB growth in environmental concern. The paper suggests a combination of strategies in order to achieve a sustained development.
Originality/value
The authors tested the impact of dimensions of IC on environmental concern in SSB of developing countries, showing the importance of IC in sustained strategies in these companies.
Details
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Carlos Fernández Jardón, Mariia Molodchik and Sofiia Paklina
The purpose of this paper is to explore strategy-specific competencies with regard to intangibles and provides empirical evidence of intangible-based strategy groups for Russian…
Abstract
Purpose
The purpose of this paper is to explore strategy-specific competencies with regard to intangibles and provides empirical evidence of intangible-based strategy groups for Russian companies. Additionally, the study examines the link between intangible-based strategy and company performance.
Design/methodology/approach
The paper uses strategic group theory and the resource-based view framework to identify similar strategic behaviour of companies by employment of intangibles. In line with the intellectual capital concept, the study provides a cluster analysis that considers four types of intangibles: human, relational, innovation and process capital. These are measured through publicly available data using principal component analysis. The empirical part of the study uses a database of 1,096 Russian public companies, which covers the period 2004–2014.
Findings
As a result, the study reveals three profiles of strategic behaviour with regard to intangibles. The majority of Russian public companies (63.5 per cent) are Generics and pursue a non-intensive intangible strategy. Only 13.3 per cent of companies constitute the intangible-intensive profile by having endowment of all intellectual resources higher than the sample average. The remaining companies (23.2 per cent) also pursue an intangible-intensive strategy with a focus on innovation capital. Intangible-intensive strategic groups outperform Generics.
Originality/value
The study proposes a novel intangible-based strategy continuum, which straddles two polar strategies: generic and smart. The study introduces insights to better understand the differences in performance across intangible-intensive strategies and presents a new empirical inquiry into strategic behaviour with regard to intangibles in Russia.
Details
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Anastasiia Redkina, Mariia Molodchik and Carlos Jardon
The paper aims to reveal the attitude of the Russian competition authorities towards cross-border mergers involving foreign buyers. The study addresses the following question: Is…
Abstract
Purpose
The paper aims to reveal the attitude of the Russian competition authorities towards cross-border mergers involving foreign buyers. The study addresses the following question: Is the probability of Russian competition authorities' intervention significantly different when a foreign buyer takes part in the merger? This is the key test to reveal whether competition authorities gravitate towards “economic nationalism” or “promotion of foreign investments”.
Design/methodology/approach
The discrete choice model is applied to the dataset of 7,607 merger cases investigated by the Russian competition authorities between 2012 and 2017. The probability of competition authorities' intervention, such as merger correction by using remedies or deal rejection, is used as a measure of special attention.
Findings
The study finds out favoritism patterns of the regulator with regard to foreign companies. In particular, the deals involving a foreign buyer had less chance of intervention, i.e. imposition of remedies, from national competition authorities. The sanctions period does not moderate the probability of approval of a cross-border merger with foreign buyers by the Russian competition authorities.
Originality/value
The paper contributes to merger control literature by addressing the political economy issues. It discovers that, besides regulation by the law, there are hidden motives, such as protectionism or favoritism of foreign companies, which could drive the regulator's decision. Therefore, the studies of cross-border mergers provide an opportunity to investigate the political issues of merger control through the identification of a special attitude to foreign companies and analysis of regularities that might explain such a policy.