Pub Date : 2023-04-30DOI: 10.17549/gbfr.2023.28.2.17
H. Hikmah, Andalan Tri Ratnawati, Susetyo Darmanto
Purpose: This study aims to analyze the effect of entrepreneurial orientation and dynamic capabilities on the innovativeness product advantage, the influence of entrepreneurial orientation and dynamic capabilities on the business performance of the creative industry, and the effect of innovativeness product advantage on the business performance of creative industries. This study also examines the mediating role of innovativeness product advantage in mediating entrepreneurial orientation and dynamic capabilities on creative industry business performance. Design/methodology/approach: The population is creative industry entrepreneurs in the Semarang city. Sample selection was done by purposive sampling method, obtained 150 data were declared eligible for analysis. Data analysis using SEM with IBM SPSS Amos 26.0,0 software tools. Findings: The research result showed that the entrepreneurial orientation and dynamic capability have a significant effect on the innovative product advantage and business performance. Another finding indicated that the innovativeness product advantage had an mediating role on the influence of entrepreneurial orientation and dynamic capability toward business performance. Research limitation/implications: Despite following scientific principles, the sample limitation is a limitation of this research. Therefore, further research is expected to expand the scope of the research object to obtain more comprehensive results. To generalize the results, future research should include other antecedents, such as intellectual capital and networking. Originality/value: This research contributes to the development of resource-based theory by providing a better understanding of creative business development models. Furthermore, this research proposes the innovativeness product advantage so that the creative industry can compete in the digital era.
{"title":"The Effect of Entrepreneurial Orientation and Dynamic Capability on Business Performance in Creative Industry: Mediating Role of Innovativeness Product Advantage","authors":"H. Hikmah, Andalan Tri Ratnawati, Susetyo Darmanto","doi":"10.17549/gbfr.2023.28.2.17","DOIUrl":"https://doi.org/10.17549/gbfr.2023.28.2.17","url":null,"abstract":"Purpose: This study aims to analyze the effect of entrepreneurial orientation and dynamic capabilities on the innovativeness product advantage, the influence of entrepreneurial orientation and dynamic capabilities on the business performance of the creative industry, and the effect of innovativeness product advantage on the business performance of creative industries. This study also examines the mediating role of innovativeness product advantage in mediating entrepreneurial orientation and dynamic capabilities on creative industry business performance. \u0000Design/methodology/approach: The population is creative industry entrepreneurs in the Semarang city. Sample selection was done by purposive sampling method, obtained 150 data were declared eligible for analysis. Data analysis using SEM with IBM SPSS Amos 26.0,0 software tools. \u0000Findings: The research result showed that the entrepreneurial orientation and dynamic capability have a significant effect on the innovative product advantage and business performance. Another finding indicated that the innovativeness product advantage had an mediating role on the influence of entrepreneurial orientation and dynamic capability toward business performance. \u0000Research limitation/implications: Despite following scientific principles, the sample limitation is a limitation of this research. Therefore, further research is expected to expand the scope of the research object to obtain more comprehensive results. To generalize the results, future research should include other antecedents, such as intellectual capital and networking. \u0000Originality/value: This research contributes to the development of resource-based theory by providing a better understanding of creative business development models. Furthermore, this research proposes the innovativeness product advantage so that the creative industry can compete in the digital era.","PeriodicalId":35226,"journal":{"name":"Global Business and Finance Review","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-04-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"85428683","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-04-30DOI: 10.17549/gbfr.2023.28.2.1
T. Lim, P. Qi
Purpose: This study examines the antecedents and predictors of investment intention and the mediating role of investment self-efficacy. The study empirically investigates the complexity of the decision-making process related to financial investment in Shandong, China. Design/methodology/approach: The Integrated Behavioral Model underpinned the research. The sample was selected using the judgmental-sampling method. A sample of 313 responses from young income earners aged 25 to 39 was analyzed. Twelve hypotheses were tested using the SmartPLS statistical software. Findings: The resultant outcomes contradict the normative theory of finance. The findings revealed that psychological (risk perception and subjective financial knowledge) and sociological (influences of family, friends, and Internet) factors significantly influence the attitude of young income earners toward investment. Investment self-efficacy demonstrates a significant mediating role, as the indirect effect is almost half the total effect. Evidently, subjective financial knowledge positively influences investment self-efficacy, which in turn has a positive influence on investment intent. Research limitations/implications: The result is concerning as young wage earners appear overconfident in their financial skills. Policymakers and relevant market actors should strive to improve real financial knowledge, as real financial knowledge is known to be linked with the effectiveness of financial investments. Future research in this area may adopt a mixed-method approach as it has the potential to uncover new variables and provide a broader spectrum to understand the complexity of people's investment decision-making process. Originality/value: The study highlights the complexity of the decision-making process. It highlights the central role of self-efficacy in explaining investment intention. The empirical evidence from the world's most populous nation, China, expands the relevance of behavioral finance theory in mainstream finance research.
{"title":"Investigating the Antecedents of Investment Intention and the Mediating Effect of Investment Self-efficacy among Young Adults in Shandong, China","authors":"T. Lim, P. Qi","doi":"10.17549/gbfr.2023.28.2.1","DOIUrl":"https://doi.org/10.17549/gbfr.2023.28.2.1","url":null,"abstract":"Purpose: This study examines the antecedents and predictors of investment intention and the mediating role of investment self-efficacy. The study empirically investigates the complexity of the decision-making process related to financial investment in Shandong, China. \u0000Design/methodology/approach: The Integrated Behavioral Model underpinned the research. The sample was selected using the judgmental-sampling method. A sample of 313 responses from young income earners aged 25 to 39 was analyzed. Twelve hypotheses were tested using the SmartPLS statistical software. \u0000Findings: The resultant outcomes contradict the normative theory of finance. The findings revealed that psychological (risk perception and subjective financial knowledge) and sociological (influences of family, friends, and Internet) factors significantly influence the attitude of young income earners toward investment. Investment self-efficacy demonstrates a significant mediating role, as the indirect effect is almost half the total effect. Evidently, subjective financial knowledge positively influences investment self-efficacy, which in turn has a positive influence on investment intent. \u0000Research limitations/implications: The result is concerning as young wage earners appear overconfident in their financial skills. Policymakers and relevant market actors should strive to improve real financial knowledge, as real financial knowledge is known to be linked with the effectiveness of financial investments. Future research in this area may adopt a mixed-method approach as it has the potential to uncover new variables and provide a broader spectrum to understand the complexity of people's investment decision-making process. \u0000Originality/value: The study highlights the complexity of the decision-making process. It highlights the central role of self-efficacy in explaining investment intention. The empirical evidence from the world's most populous nation, China, expands the relevance of behavioral finance theory in mainstream finance research.","PeriodicalId":35226,"journal":{"name":"Global Business and Finance Review","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-04-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"90099075","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-04-30DOI: 10.17549/gbfr.2023.28.2.107
Nguyet Thi Nguyen, V. Nghiem
Purpose: This study contributes evidence on the impact of IC and its components for emerging countries, the case of Vietnam. Design/methodology/approach: The research measures the value-added intellectual coefficient and applies the two-step system GMM model for the period 2005-2014. Findings: Findings imply that IC contributes significantly to the industrial firm performance. Industrial firm performance is positively affected by Human capital efficiency (HCE) and Capital Employed Efficiency (CEE). Generally, Structural capital efficiency (SCE) has an insignificant effect on the industrial firm performance. Impact of IC efficiency depends on the internal and external factors. The impacts of IC efficiencies differ among levels of knowledge intensity. Generally, HCE is more important than CEE. The impact of IC on industrial firm outcomes depends on knowledge intensity levels. The more knowledge intensive, the stronger impact of IC is. Only high knowledge intensive firms benefit from all three components of IC efficiency. HCE and CEE are most effective for firms with high knowledge intensity. SCE is strongest for firms at low knowledge intensity. Only CEE contributes to industrial firms at all knowledge intensity levels. HCE is insignificant for firms at low knowledge intensity, while SCE is insignificant for firms at medium level. Research limitations/implications: The paper examines only one variable representing for firm financial performance, ROA. Controlled variables are only at industrial level, not at broader levels, such as provincial or national levels. Originality/value: Investigating IC will contribute to literature of levels of investment in tangible and intangible assets. It helps firm leaders and policymakers to comprehend the significant role of IC as well as the knowledge economy, then properly reallocate intellectual resources. Firm leaders and policymakers should focus on HCE and CEE which driver significantly value added. The findings suggest firm leaders which component of intellectual capital they should invest corresponding to various level of knowledge intensities.
{"title":"Intellectual capital and financial performance of industrial firms in emerging countries: Empirical evidence from Vietnam","authors":"Nguyet Thi Nguyen, V. Nghiem","doi":"10.17549/gbfr.2023.28.2.107","DOIUrl":"https://doi.org/10.17549/gbfr.2023.28.2.107","url":null,"abstract":"Purpose: This study contributes evidence on the impact of IC and its components for emerging countries, the case of Vietnam. \u0000Design/methodology/approach: The research measures the value-added intellectual coefficient and applies the two-step system GMM model for the period 2005-2014. \u0000Findings: Findings imply that IC contributes significantly to the industrial firm performance. Industrial firm performance is positively affected by Human capital efficiency (HCE) and Capital Employed Efficiency (CEE). \u0000Generally, Structural capital efficiency (SCE) has an insignificant effect on the industrial firm performance. Impact of IC efficiency depends on the internal and external factors. The impacts of IC efficiencies differ among levels of knowledge intensity. Generally, HCE is more important than CEE. The impact of IC on industrial firm outcomes depends on knowledge intensity levels. The more knowledge intensive, the stronger impact of IC is. Only high knowledge intensive firms benefit from all three components of IC efficiency. HCE and CEE are most effective for firms with high knowledge intensity. SCE is strongest for firms at low knowledge intensity. Only CEE contributes to industrial firms at all knowledge intensity levels. HCE is insignificant for firms at low knowledge intensity, while SCE is insignificant for firms at medium level. \u0000Research limitations/implications: The paper examines only one variable representing for firm financial performance, ROA. Controlled variables are only at industrial level, not at broader levels, such as provincial or national levels. \u0000Originality/value: Investigating IC will contribute to literature of levels of investment in tangible and intangible assets. It helps firm leaders and policymakers to comprehend the significant role of IC as well as the knowledge economy, then properly reallocate intellectual resources. Firm leaders and policymakers should focus on HCE and CEE which driver significantly value added. The findings suggest firm leaders which component of intellectual capital they should invest corresponding to various level of knowledge intensities.","PeriodicalId":35226,"journal":{"name":"Global Business and Finance Review","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-04-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"86101112","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-04-30DOI: 10.17549/gbfr.2023.28.2.93
Y. Oh, Jisu Yi
Purpose: The outbreak of COVID-19 in early 2020 compelled consumers to abstain from dining out and instead use online food delivery (OFD) services. This study aims to examine the determinants of OFD sales in a restaurant during the COVID-19 crisis. Design/methodology/approach: We analyzed 139,812 restaurant-level credit card OFD transaction data from January 2019 to June 2020 in Seoul, South Korea. Findings: During COVID-19, many restaurants participated and experienced sales growth through the OFD platforms. On the demand side, the composition of customers using OFD services has changed, replacing the demand for dining out. Our estimation results show that the food category, customer composition ratio, and past performance significantly affected restaurants’ OFD revenue during the pandemic. Research limitations/implications: The results suggest implications for the restaurant industry responding to changing customer needs on OFD platforms. Restaurants with high-performing OFDs before the pandemic experienced higher sales during the pandemic period. The results imply that experiences to fit customers’ needs toward OFD are likely to help restaurants overcome the losses incurred due to the COVID-19 outbreak. Originality/value: This study empirically revealed the effect of store category, past performance, demographic, and geographical customer profile on OFD demand for external shocks such as COVID-19.
{"title":"Determinants of Online Food Delivery(OFD) Sales during COVID-19","authors":"Y. Oh, Jisu Yi","doi":"10.17549/gbfr.2023.28.2.93","DOIUrl":"https://doi.org/10.17549/gbfr.2023.28.2.93","url":null,"abstract":"Purpose: The outbreak of COVID-19 in early 2020 compelled consumers to abstain from dining out and instead use online food delivery (OFD) services. This study aims to examine the determinants of OFD sales in a restaurant during the COVID-19 crisis. \u0000Design/methodology/approach: We analyzed 139,812 restaurant-level credit card OFD transaction data from January 2019 to June 2020 in Seoul, South Korea. \u0000Findings: During COVID-19, many restaurants participated and experienced sales growth through the OFD platforms. On the demand side, the composition of customers using OFD services has changed, replacing the demand for dining out. Our estimation results show that the food category, customer composition ratio, and past performance significantly affected restaurants’ OFD revenue during the pandemic. \u0000Research limitations/implications: The results suggest implications for the restaurant industry responding to changing customer needs on OFD platforms. Restaurants with high-performing OFDs before the pandemic experienced higher sales during the pandemic period. The results imply that experiences to fit customers’ needs toward OFD are likely to help restaurants overcome the losses incurred due to the COVID-19 outbreak. \u0000Originality/value: This study empirically revealed the effect of store category, past performance, demographic, and geographical customer profile on OFD demand for external shocks such as COVID-19.","PeriodicalId":35226,"journal":{"name":"Global Business and Finance Review","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-04-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"77438466","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-04-30DOI: 10.17549/gbfr.2023.28.2.53
Jeong－Ho Koo, Sang-Il Kim
Purpose: Using the Ohlson model of value relevance (1995), we examine the incremental effects of the environmental, social, and governance (ESG) rating on accounting information regarding R&D expenditure. Design/methodology/approach: Samples are 3,449 firm-years of Korean manufacturing firms listed on the Korean Stock Exchange (KSE) for 2012~2021 years. We proxy the ESG activities by their ESG rating announced by the Korea Corporate Governance Service (KCGS). Our testing model is reconstructed from Ohlson’s (1995) model with accounting expenses to test whether ESG rating plays an additional role in increasing the value relevance of R&D expenses. Findings: Results show that higher ESG ratings increase the value relevance of development costs, but not research costs. The results are robust, with alternative fixed effect or double clustering, and are more relevant to those in low-technology industries or Korean non-chaebol companies. Further analyses reveal the effects of individual ESG activities that environment (E) and governance (G) increase the value relevance of capitalized development costs, but activities related to society (S) decrease value relevance. Additional test shows that voluntary disclosure additionally increases the value relevance of development cost in accounting information. Research limitations/implications: This study shows that development cost rather than research cost increases the value relevance of companies, but ESG increases the value relevance only in terms of development cost. Originality/value: We firstly show the mediating role of ESG activities in increasing the value relevance of a firm through R&D expenditure separating R&D expenditure into research expense and development costs exclusively obtained from Korean public firms.
{"title":"The Joint Effects of ESG Ratings and R&D on Value Relevance","authors":"Jeong－Ho Koo, Sang-Il Kim","doi":"10.17549/gbfr.2023.28.2.53","DOIUrl":"https://doi.org/10.17549/gbfr.2023.28.2.53","url":null,"abstract":"Purpose: Using the Ohlson model of value relevance (1995), we examine the incremental effects of the environmental, social, and governance (ESG) rating on accounting information regarding R&D expenditure. \u0000Design/methodology/approach: Samples are 3,449 firm-years of Korean manufacturing firms listed on the Korean Stock Exchange (KSE) for 2012~2021 years. We proxy the ESG activities by their ESG rating announced by the Korea Corporate Governance Service (KCGS). Our testing model is reconstructed from Ohlson’s (1995) model with accounting expenses to test whether ESG rating plays an additional role in increasing the value relevance of R&D expenses. \u0000Findings: Results show that higher ESG ratings increase the value relevance of development costs, but not research costs. The results are robust, with alternative fixed effect or double clustering, and are more relevant to those in low-technology industries or Korean non-chaebol companies. Further analyses reveal the effects of individual ESG activities that environment (E) and governance (G) increase the value relevance of capitalized development costs, but activities related to society (S) decrease value relevance. Additional test shows that voluntary disclosure additionally increases the value relevance of development cost in accounting information. \u0000Research limitations/implications: This study shows that development cost rather than research cost increases the value relevance of companies, but ESG increases the value relevance only in terms of development cost. \u0000Originality/value: We firstly show the mediating role of ESG activities in increasing the value relevance of a firm through R&D expenditure separating R&D expenditure into research expense and development costs exclusively obtained from Korean public firms.","PeriodicalId":35226,"journal":{"name":"Global Business and Finance Review","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-04-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"90558003","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-04-30DOI: 10.17549/gbfr.2023.28.2.34
Yun-Jin Kim, B. Ha, Yong-Jeong Kim
Purpose: This study aimed to examine the concrete type of service supply chain, which has been remaining on a conceptual level in previous studies. For this purpose, this study analyzed the differentiation of service supply chain, which could be hardly explained by the traditional manufacturing supply chain architecture. Design/methodology/approach: The research method was conducted through in-depth literature review. It was intended to identify the structure and characteristics of the service supply chain through an in-depth literature review in the service and supply chain fields. Findings: The service industry is made up of a wide range of fields and has various characteristics. The characteristics of the service industry are expected to be more diverse and complicated depending on the tangibility spectrum or servitised degree of the combination of tangible products and intangible services. According to the literature review, remarkable differences were shown between the type of the traditional manufacturing-oriented supply chain and that of the logistics service supply chain in respect of industrial architecture and direction of the entities in the supply chain. Research limitations/implications: This study cannot suggest general service supply chain types through literature review. The reason may be that it was difficult to generalize the types of service supply chains due to the diversity of the service industry and the characteristics of services that are different from tangible products. It was also difficult to apply the methodology to scientifically distinguish service supply chain to the traditional supply chain. Originality/value: The research results of this study on the service supply chain are meaningful in both academic and practical aspects. Academically, it provides the foundation for research on the service supply chain structure. In practice, it suggests the possibility that service companies can also use supply chain management as a business strategy.
{"title":"Short Essay on the Literature Review of the Service Supply Chain","authors":"Yun-Jin Kim, B. Ha, Yong-Jeong Kim","doi":"10.17549/gbfr.2023.28.2.34","DOIUrl":"https://doi.org/10.17549/gbfr.2023.28.2.34","url":null,"abstract":"Purpose: This study aimed to examine the concrete type of service supply chain, which has been remaining on a conceptual level in previous studies. For this purpose, this study analyzed the differentiation of service supply chain, which could be hardly explained by the traditional manufacturing supply chain architecture. \u0000Design/methodology/approach: The research method was conducted through in-depth literature review. It was intended to identify the structure and characteristics of the service supply chain through an in-depth literature review in the service and supply chain fields. \u0000Findings: The service industry is made up of a wide range of fields and has various characteristics. The characteristics of the service industry are expected to be more diverse and complicated depending on the tangibility spectrum or servitised degree of the combination of tangible products and intangible services. According to the literature review, remarkable differences were shown between the type of the traditional manufacturing-oriented supply chain and that of the logistics service supply chain in respect of industrial architecture and direction of the entities in the supply chain. \u0000Research limitations/implications: This study cannot suggest general service supply chain types through literature review. The reason may be that it was difficult to generalize the types of service supply chains due to the diversity of the service industry and the characteristics of services that are different from tangible products. It was also difficult to apply the methodology to scientifically distinguish service supply chain to the traditional supply chain. \u0000Originality/value: The research results of this study on the service supply chain are meaningful in both academic and practical aspects. Academically, it provides the foundation for research on the service supply chain structure. In practice, it suggests the possibility that service companies can also use supply chain management as a business strategy.","PeriodicalId":35226,"journal":{"name":"Global Business and Finance Review","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-04-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"87585209","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-04-30DOI: 10.17549/gbfr.2023.28.2.69
Khalifa Khalfan Muftah Al Mansoori, M. Bakri
Purpose: Disruptive innovation has been considered an important input to the economic growth of a business operation. Responding to the changing landscape towards disruptive innovation resulting from advanced technological development, the UAE government has started to focus seriously on the development of new disruptive technology platforms. Thus, as an initial step in developing a model of disruptive innovation factors that contributes to the financial service performance in the UAE, this study was geared towards investigating the disruptive innovation factors towards financial service performance. Design/methodology/approach: This research employed a quantitative research method. The data were collected from 315 respondents among executive banking officers at Mohammed Bin Rashid Centre for Government Innovation, in Abu Dhabi through questionnaires. Findings: The results indicated that disruptive innovation factors of financial service performance in the UAE showed a rather high level of technology intention towards innovation. As for the disruptive innovation factors, the economic, environmental and social were proven significantly and positively related to financial service performance. Therefore, the results supported Innovation Diffusion Theory and Technology Acceptance Model that both disruptive business models and disruptive technology influence a financial institution's performance. Research limitations/implications: This paper offers important implications specifically This study has successfully shed some light on the willingness of current disruptive innovation to transform into a financial service performance context. The result of this study suggested that every business leader is playing a crucial part in influencing others to take up disruptive innovation practices in business. Since financial institutions can only practice disruptive innovation transition when the owner-managers appreciate it, it is therefore viable for the existing financial institution to share their own experiences or success stories with others. The government needs to have disruptive innovation since financial service performance is assumed to be a significant job and become an impetus of monetary and economic development in UAE, with the commitment of 80 percent of absolute innovation establishments in UAE that add to 20 percent of the nation’s Gross Domestic Product (GDP), while shares 10 percent exports of the country. Concerning the national agenda vision 2021, the government aimed at becoming a high-income nation. Originality/value: The disruptive innovation factors can be a focus on economic, environmental, and social for enhancing a financial service performance. Yet, the integration of disruptive technology as cost-benefit, compatibility, and complexity in the relationship between a disruptive business model in the value proposition, resources accessibility, and business structure with disruptive innovation factors towards financial service perfo
{"title":"Determinants o f Disruptive Innovation That Influences F inancial S ervice Performance","authors":"Khalifa Khalfan Muftah Al Mansoori, M. Bakri","doi":"10.17549/gbfr.2023.28.2.69","DOIUrl":"https://doi.org/10.17549/gbfr.2023.28.2.69","url":null,"abstract":"Purpose: Disruptive innovation has been considered an important input to the economic growth of a business operation. Responding to the changing landscape towards disruptive innovation resulting from advanced technological development, the UAE government has started to focus seriously on the development of new disruptive technology platforms. Thus, as an initial step in developing a model of disruptive innovation factors that contributes to the financial service performance in the UAE, this study was geared towards investigating the disruptive innovation factors towards financial service performance. \u0000Design/methodology/approach: This research employed a quantitative research method. The data were collected from 315 respondents among executive banking officers at Mohammed Bin Rashid Centre for Government Innovation, in Abu Dhabi through questionnaires. \u0000Findings: The results indicated that disruptive innovation factors of financial service performance in the UAE showed a rather high level of technology intention towards innovation. As for the disruptive innovation factors, the economic, environmental and social were proven significantly and positively related to financial service performance. Therefore, the results supported Innovation Diffusion Theory and Technology Acceptance Model that both disruptive business models and disruptive technology influence a financial institution's performance. \u0000Research limitations/implications: This paper offers important implications specifically This study has successfully shed some light on the willingness of current disruptive innovation to transform into a financial service performance context. The result of this study suggested that every business leader is playing a crucial part in influencing others to take up disruptive innovation practices in business. Since financial institutions can only practice disruptive innovation transition when the owner-managers appreciate it, it is therefore viable for the existing financial institution to share their own experiences or success stories with others. The government needs to have disruptive innovation since financial service performance is assumed to be a significant job and become an impetus of monetary and economic development in UAE, with the commitment of 80 percent of absolute innovation establishments in UAE that add to 20 percent of the nation’s Gross Domestic Product (GDP), while shares 10 percent exports of the country. Concerning the national agenda vision 2021, the government aimed at becoming a high-income nation. \u0000Originality/value: The disruptive innovation factors can be a focus on economic, environmental, and social for enhancing a financial service performance. Yet, the integration of disruptive technology as cost-benefit, compatibility, and complexity in the relationship between a disruptive business model in the value proposition, resources accessibility, and business structure with disruptive innovation factors towards financial service perfo","PeriodicalId":35226,"journal":{"name":"Global Business and Finance Review","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-04-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"84842087","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-02-28DOI: 10.17549/gbfr.2023.28.1.88
A. Samad
Purpose: This paper retested the Okun’s Law established in the 1960s and the subsequent research on Okun’s findings that a 1% increase in unemployment would lead to a 3 % decrease in GDP), i.e. Okun’s coefficient (β)=-3 in diverse economies of sixteen South and Southeast Asia, sixteen countries. Design/methodology/approach: Using panel data in two models, the first difference model: (Yt -Yt-1) = α - β(Ut-Ut-1) and the gap model: (Yt -Y,) = α - β(Ut -U)were estimated. Findings: Results of pool ordinary least square (POLS), Fixed Effect Model (FEM), and Random Effects Model(REM) supports Okun’s Law and shows that the coefficient, β, is (-4.4) suggesting that every 1 percent unemployment rate leads to 4.4 decrease in GDP. The Okun’s coefficient varies with country. The validity of Okun’ coefficient, β= -2 percent, is found only in four. Findings of negative coefficient and its significance provides important policy prescriptions for nine countries. Research limitations/implications: This paper suffers from limitations. First data limitation. This paper used annual data of 30 years. Future research may include quarterly data or annual data with more observations. Second, as Hodrick and Prescott [1997] filtering approach suffers from criticism, Cobb-Douglas production function estimate may be applied for estimating full-employment GDP and natural rate of unemployment. Originality/value: All studies of Okun’s law studies derived its coefficient focused on the economically developed countries, this study is an exception. The survey of literature shows that there is no research of Okun’s for sixteen South and Southeast Asian countries with diverse level of economic growth. So, the result of this study is an important contribution in the literature of Okun’s law. Second, as the policy makers of these countries are facing mounting pressure of unemployment, finding the value of Okun’s coefficient is a contribution of this paper for them.
{"title":"Does Okun’s Law and its Coefficient value, β exist? Evidence from Sixteenth South and Southeast Asian Countries during 1991-2020","authors":"A. Samad","doi":"10.17549/gbfr.2023.28.1.88","DOIUrl":"https://doi.org/10.17549/gbfr.2023.28.1.88","url":null,"abstract":"Purpose: This paper retested the Okun’s Law established in the 1960s and the subsequent research on Okun’s findings that a 1% increase in unemployment would lead to a 3 % decrease in GDP), i.e. Okun’s coefficient (β)=-3 in diverse economies of sixteen South and Southeast Asia, sixteen countries. \u0000Design/methodology/approach: Using panel data in two models, the first difference model: (Yt -Yt-1) = α - β(Ut-Ut-1) and the gap model: (Yt -Y,) = α - β(Ut -U)were estimated. \u0000Findings: Results of pool ordinary least square (POLS), Fixed Effect Model (FEM), and Random Effects Model(REM) supports Okun’s Law and shows that the coefficient, β, is (-4.4) suggesting that every 1 percent unemployment rate leads to 4.4 decrease in GDP. The Okun’s coefficient varies with country. The validity of Okun’ coefficient, β= -2 percent, is found only in four. Findings of negative coefficient and its significance provides important policy prescriptions for nine countries. \u0000Research limitations/implications: This paper suffers from limitations. First data limitation. This paper used annual data of 30 years. Future research may include quarterly data or annual data with more observations. Second, as Hodrick and Prescott [1997] filtering approach suffers from criticism, Cobb-Douglas production function estimate may be applied for estimating full-employment GDP and natural rate of unemployment. \u0000Originality/value: All studies of Okun’s law studies derived its coefficient focused on the economically developed countries, this study is an exception. The survey of literature shows that there is no research of Okun’s for sixteen South and Southeast Asian countries with diverse level of economic growth. So, the result of this study is an important contribution in the literature of Okun’s law. Second, as the policy makers of these countries are facing mounting pressure of unemployment, finding the value of Okun’s coefficient is a contribution of this paper for them.","PeriodicalId":35226,"journal":{"name":"Global Business and Finance Review","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-02-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"78927931","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-02-28DOI: 10.17549/gbfr.2023.28.1.58
Hyun-Ah Lee, Sungju Chun
Purpose: T his study aim s to e xplore t he e ffect of f inancial c onstraints o n earnings m anagement by f ocusing on firms that issue redeemable convertible preferred stocks (RCPS). RCPS are considered a financing option primarily used by firms that have investment opportunities but face difficulties in raising funds with a low cost of capital. Therefore, the issuance of RCPS can be an effective indicator to identify firms with financial constraints. Design/methodology/approach: This study employs a sample of 12,406 firm-year observations of listed companies in the Korean stock market from 2011 to 2018. The study conducts multiple regression analyses to investigate the level of earnings management of RCPS-issuing firms with respect to that of non-issuing firms. In this analysis, the earnings management is proxied by discretionary accruals and real operational activities. Findings: This study shows that RCPS-issuing firms have a higher level of discretionary accruals than non-issuing firms. Meanwhile, there is no significant difference in the level of real activities management between RCPS-issuing and non-issuing firms. These findings imply that firms with financial constraints engage in aggressive earnings management through discretionary accruals rather than real operational activities. Research limitations/implications: This study provides compelling evidence that financially constrained firms strategically use discretionary accruals to signal positive prospects for external capital suppliers, allowing them to raise the capital necessary for investment. It is also confirmed that financially constrained firms do not depend on real activities management, which sacrifices cash flows and firm value in the long run. Originality/value: T his is t he f irst s tudy t o test t he l ink between f inancial c onstraints a nd e arnings m anagement by analyzing RCPS-issuing firms that conform to the definition of financial constraints. This approach can alleviate the risk of errors in the classification of firms and the endogeneity problems accompanied by estimating financially constrained firms with firm characteristics, such as dividend payout ratio, cash flows, size, age, or a combined index of these variables.
{"title":"Earnings Management Behavior of Firms with Financial Constraints: Focusing on Firms that Issue Redeemable Convertible Preferred Stocks","authors":"Hyun-Ah Lee, Sungju Chun","doi":"10.17549/gbfr.2023.28.1.58","DOIUrl":"https://doi.org/10.17549/gbfr.2023.28.1.58","url":null,"abstract":"Purpose: T his study aim s to e xplore t he e ffect of f inancial c onstraints o n earnings m anagement by f ocusing on firms that issue redeemable convertible preferred stocks (RCPS). RCPS are considered a financing option primarily used by firms that have investment opportunities but face difficulties in raising funds with a low cost of capital. Therefore, the issuance of RCPS can be an effective indicator to identify firms with financial constraints. \u0000Design/methodology/approach: This study employs a sample of 12,406 firm-year observations of listed companies in the Korean stock market from 2011 to 2018. The study conducts multiple regression analyses to investigate the level of earnings management of RCPS-issuing firms with respect to that of non-issuing firms. In this analysis, the earnings management is proxied by discretionary accruals and real operational activities. \u0000Findings: This study shows that RCPS-issuing firms have a higher level of discretionary accruals than non-issuing firms. Meanwhile, there is no significant difference in the level of real activities management between RCPS-issuing and non-issuing firms. These findings imply that firms with financial constraints engage in aggressive earnings management through discretionary accruals rather than real operational activities. \u0000Research limitations/implications: This study provides compelling evidence that financially constrained firms strategically use discretionary accruals to signal positive prospects for external capital suppliers, allowing them to raise the capital necessary for investment. It is also confirmed that financially constrained firms do not depend on real activities management, which sacrifices cash flows and firm value in the long run. \u0000Originality/value: T his is t he f irst s tudy t o test t he l ink between f inancial c onstraints a nd e arnings m anagement by analyzing RCPS-issuing firms that conform to the definition of financial constraints. This approach can alleviate the risk of errors in the classification of firms and the endogeneity problems accompanied by estimating financially constrained firms with firm characteristics, such as dividend payout ratio, cash flows, size, age, or a combined index of these variables.","PeriodicalId":35226,"journal":{"name":"Global Business and Finance Review","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-02-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"79442091","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-02-28DOI: 10.17549/gbfr.2023.28.1.33
Boyoung Kim
Purpose: This study investigates the impact of three actors that influence entrepreneur mentoring—mentor, mentee, and operating agency—on mentoring effectiveness within the context of formal mentoring in Korea. Specifically, the study considers the characteristics of the mentee, mentoring functions provided by the mentor, and support from the operating agency as antecedents to explain the perceived mentoring effectiveness of the mentee. Design/methodology/approach: I conducted two studies. Study 1 involves data from mentees participating in the entrepreneur mentoring program hosted by the Korea Venture Business Association from March to June 2018. Data for Study 2 was collected from mentees participating in the mentoring program hosted by incubating center of university located in South Korea from November to October 2022. Hierarchical regression analysis was used to examine the hypotheses. Findings: First, Study 1 shows that willingness to receive mentoring positively affects entrepreneurial competence improvement, but this impact was insignificant in Study 2. Second, the problem-solving function provided by the mentor presents a significant positive effect on both mentoring satisfaction and entrepreneurial competence improvement. Third, the motivating function undertaken by a mentor only has a significant positive effect on improving entrepreneurial competence in Study 1. This motivating function positively affects mentoring satisfaction and entrepreneur competence improvement in Study 2. Fourth, support from the operating agency has a significant positive impact on both mentoring satisfaction and improving entrepreneurial competence after controlling for the mentor and mentee effects. Research limitations/implications: This study provides a theoretical contribution to the research on entrepreneur mentoring. In this regard, it suggests three actors-based models of mentoring effectiveness and practical implications for organizations executing entrepreneurship mentoring programs. Accordingly, it confirms that the operating agency’s managerial role is necessary for enhancing entrepreneur mentoring effectiveness. Originality/value: Entrepreneur mentoring is implemented via formal mentoring in many developing countries. However, little attention has been paid to the operating agency as the primary determinant affecting mentoring effectiveness. The current study addresses this gap by examining the effects of three actors in formal mentoring— mentee, mentor, and operating agency—on the mentee’s perceived mentoring effectiveness.
{"title":"Three Actors of Entrepreneur Mentoring and Their Impact on Perceived Mentoring Effectiveness: The Korean Formal Mentoring Context","authors":"Boyoung Kim","doi":"10.17549/gbfr.2023.28.1.33","DOIUrl":"https://doi.org/10.17549/gbfr.2023.28.1.33","url":null,"abstract":"Purpose: This study investigates the impact of three actors that influence entrepreneur mentoring—mentor, mentee, and operating agency—on mentoring effectiveness within the context of formal mentoring in Korea. Specifically, the study considers the characteristics of the mentee, mentoring functions provided by the mentor, and support from the operating agency as antecedents to explain the perceived mentoring effectiveness of the mentee. \u0000Design/methodology/approach: I conducted two studies. Study 1 involves data from mentees participating in the entrepreneur mentoring program hosted by the Korea Venture Business Association from March to June 2018. Data for Study 2 was collected from mentees participating in the mentoring program hosted by incubating center of university located in South Korea from November to October 2022. Hierarchical regression analysis was used to examine the hypotheses. \u0000Findings: First, Study 1 shows that willingness to receive mentoring positively affects entrepreneurial competence improvement, but this impact was insignificant in Study 2. Second, the problem-solving function provided by the mentor presents a significant positive effect on both mentoring satisfaction and entrepreneurial competence improvement. Third, the motivating function undertaken by a mentor only has a significant positive effect on improving entrepreneurial competence in Study 1. This motivating function positively affects mentoring satisfaction and entrepreneur competence improvement in Study 2. Fourth, support from the operating agency has a significant positive impact on both mentoring satisfaction and improving entrepreneurial competence after controlling for the mentor and mentee effects. \u0000Research limitations/implications: This study provides a theoretical contribution to the research on entrepreneur mentoring. In this regard, it suggests three actors-based models of mentoring effectiveness and practical implications for organizations executing entrepreneurship mentoring programs. Accordingly, it confirms that the operating agency’s managerial role is necessary for enhancing entrepreneur mentoring effectiveness. \u0000Originality/value: Entrepreneur mentoring is implemented via formal mentoring in many developing countries. However, little attention has been paid to the operating agency as the primary determinant affecting mentoring effectiveness. The current study addresses this gap by examining the effects of three actors in formal mentoring— mentee, mentor, and operating agency—on the mentee’s perceived mentoring effectiveness.","PeriodicalId":35226,"journal":{"name":"Global Business and Finance Review","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-02-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"87648244","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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