J. for International Business and Entrepreneurship Development (7 papers in press)
Factors affecting the performance of women entrepreneurs in SMEs: a case study of Punjab, Pakistan
by Hafiz Yasir Ali, Muhammad Khalid Khan, Muhammad Asrar-ul-Haq
Abstract: Women entrepreneurs play a vital role in the economic development of any country. However, certain factors affect the performance of women entrepreneurs that vary from culture to culture. The present study is an effort to examine and highlight those factors that have significant impact on the performance of women entrepreneurs and their characteristics in SMEs. Data is collected from 307 women entrepreneurs with response rate of approximately 83% using survey questionnaires. Data analysis is conducted through SPSS 21.0 and AMOS 22. Results show that economic, social, and legal and administrative factors significantly affect the performance of women entrepreneurs. The present study will help women entrepreneurs to get knowledge about factors, which may affect their performance. This study may help the government to increase the number of women entrepreneurs and encourage them to play their role in sustainable growth of economy by removing their economic, social and legal obstacles.
Keywords: entrepreneurship; women entrepreneur; performance; SMEs; Pakistan.
The role of video marketing in the modern business environment: a view of top management of SMEs
by Tanja Sedej
Abstract: In the 21st century modern business environment, video marketing has been becoming the centre of attention of strategic marketing planning and the trend is still on the rise. In order to plan and execute video marketing effectively, companies need to follow trends and consequently be aware of effective new marketing options that will provide maximum business results. This article tackles those issues and provides fresh empirical data on video marketing and its role in the modern business environment. It also provides an insight into video marketing trends and possibilities that are considered crucial for the near future. The evaluated and analysed data were gathered on the basis of research carried out in 2018 among 45 top managers of small and medium-sized companies that have been doing business globally.
Keywords: modern business environment; video marketing; marketing communication; digital trends; video communication; brand empowerment.
Social ties, foreign market attractiveness and trust
by Maher Al Sayah, Charbel Salloum, Jacques Digout, Catherine Mercier-Suissa, Hajer Jarrar
Abstract: Throughout history, civilisations have expanded their territories in search of wealth and enrichment. Hence, foreign expansion has always been perceived as a way of increasing and acquiring resources, crafts, knowledge and markets. Currently, foreign expansion is mostly executed by firms driven by the same reasons. The foreign market attractiveness theory stands as a reference for any examination of multinational entrepreneurial expansion and related foreign venturing prospects. Our approach tests the validity of the theorys constraints when subjected to social ties linkage. This research analyses how entrepreneurs weigh information of a foreign market opportunity transmitted through socially tied sources. We found that the trust factor between the entrepreneur and his socially tied source of information negatively influences the foreign market entry attractiveness theory. Additionally, entrepreneurs with a strong social knowledge base and bonds investigate any information communicated to them by a socially tied source.
Keywords: social tie; entrepreneur; foreign venture; social capital; opportunities; source of information.
Founder effectiveness in sustaining financial performance: influence of family ownership
by Norazlin Ahmad, Irene Wei Kiong Ting
Abstract: This paper aims to investigate the association between the founder-CEO and the level of firm financial sustainability in the presence of family ownership by using a unique dataset of publicly listed construction firms in Malaysia from 2009 to 2017. Our regression results show that the founder-CEO and family ownership significantly and negatively affect financial sustainability, which is proxied by operational self-sufficiency. However, their negative effects are alleviated when the founder-CEO and family ownership interact. These results show that the founder-CEO may be ineffective in sustaining the financial performance in the construction industry. This study calls for greater examination of founder effectiveness under the influence of family ownership.
Keywords: financial sustainability; founder-CEO; family ownership; founder effectiveness; construction firms.
Special Issue on: “New Paradigms in International Business”
Greenfield investment vs. merger and acquisition as an entry strategy in Mexico: the case of Austrian companies
by Manuela Sandler, Vito Bobek, Anita Macek, Tatjana Horvat
Abstract: Over recent decades, Mexico has become a very attractive destination for FDI. When opening a wholly-owned subsidiary, firms can establish local presence through either greenfield investment or merger and acquisition (M&A). The aim of this paper is to make recommendations to Austrian companies that want to establish a wholly-owned subsidiary in Mexico. An empirical study in the form of qualitative semi-structured interviews was conducted in order to learn from the experiences of Austrian firms that have already taken the step into the Latin American nation. The size and the location of the Mexican market are the main motivations for Austrian companies to establish local presence; hence, Austrian investors can be defined as market-seekers. Also, the cost advantage is an important driver. Moreover, it is more common to build up the subsidiary from scratch. The ratio of greenfield investment to M&A is 9 to 1, simply because the value chains are not as developed yet in Mexico.
Keywords: wholly-owned subsidiary; FDI; greenfield investment; finance; merger and acquisition; Mexico; market entry strategy; location-specific investment motives.
International franchising in the fashion industry from the franchisor perspective
by Anita Macek, Johanna Kros, Vito Bobek
Abstract: Over the years, fashion retail franchising in emerging markets has seen a significant growth. Nevertheless, when a fashion brand decides to franchise its business, it also affects the control level over franchise store operations, which may influence a brands image and overall success. This paper investigates how international fashion companies can implement and assure brand standards and qualities among their franchise network in emerging markets. With exploratory qualitative research authors give more insight into the general motives for fashion companies franchising their businesses in emerging markets and the implementation of brand standards, assuring quality and control, and challenges in operating franchise stores. The research shows that the implementation process and assurance of brand standards and qualities involve high management and control skills, in which a solid, lasting relation between franchisor and franchisee is required. With relationship marketing, the brand standards implementation can be strategically planned and managed. Since follow up and control of brand standards and qualities are often inconsistent, the procedures must get standardised.
Keywords: franchising; fashion industry; emerging markets; brand standards.
A study on financial constraints of capital structure theories and dividend policy: evidence from the Indian capital market
by Sreenu Nenavath
Abstract: This study focused on the ability of firms to play this role is in major part determined by the structure of the financial system in which they operate, and in particular whether this financial system is able to make capital available efficiently to those firms that need it. The study examines the relation between the financing, investments, capital budget and dividend decisions, where the effect of financial constraints on the firms investment decision is investigated. The study focuses on how financial constraints affect different firms by investigating the extent to which the dependence on internal cash flow is affected by firm characteristics, such as size, age, dividend payout ratio, and market listing. This implies that firms retain earnings (RE) in order to ensure that they have sufficient capital to invest, confirming the initial result that Indian firms are financially constrained. This study adopted a descriptive design that aims at exploring the financial constraints of dividend policy and capital structure theories of companies listed at NSE and BSE in India. The data was obtained from financial statements and balance sheets of all the listed companies information available at the NSE and BSE secretariat for 10 years from 2005 to 2016.
Keywords: dividend; finance decision; capital market; financial system; profitability ratio.