Do International Capabilities and Resources Configure Firm’s Sustainable Competitive Performance? Research within Pakistani SMEs

Ma, Ding; Ullah, Farid; Khattak, Muhammad Sualeh; Anwar, Muhammad

doi:10.3390/su10114298

Cited by 50 publications

(54 citation statements)

References 69 publications

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“…When objective data is not available researchers are encouraged to base their research on self-reported data, so we indexed SMEs' performance according to the CFO's assessment of the business's performance using the measurement scale developed by Mikalef and Pateli [100]. This scale was later adapted by Degong et al [12] and Ying et al [15]. CFOs were asked to compare their firm's performance with that of its competitors in eight domains.…”

Section: Measurement Of Variablesmentioning

confidence: 99%

“…Despite the importance of knowledge resources to the sustainability of SMEs most previous research has focused on other factors, such as competitive advantage, supply chain management and internationalization [12][13][14]. However, Ying et al [15] examined the contribution of managers' intangible capabilities to SMEs' sustainability and concluded that they play an important role in enabling managers to deal with turbulent market conditions.…”

Section: Introductionmentioning

confidence: 99%

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How Does Financial Literacy Promote Sustainability in SMEs? A Developing Country Perspective

2019

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Role of the knowledge-based resources in promoting sustainability in small and medium enterprises (SMEs) is currently a topic of debate. Financial literacy has been identified as a vital knowledge resource for financial decision making, but insufficient attention has been given to how SMEs’ financial literacy affects their sustainability. Drawing upon a knowledge-based perspective, peaking order theory and dual process theory, we constructed an integrated model to examine the impact of financial literacy, access to finance and financial risk attitude on SMEs’ sustainability. The sample included 291 chief financial officers (CFOs) of SMEs in Sri Lanka. The output of structural equation modelling revealed direct positive effects of financial literacy, access to finance and financial risk attitude on sustainability. Financial literacy also emerged as a predictor of access to finance and financial risk attitude. Moreover, access to finance and financial risk attitude were found to be partial mediators of the relationship between financial literacy and SMEs’ sustainability. Theoretical implications and practical implications for policymakers, industry practitioners and academics interested in promoting sustainability amongst SMEs are discussed.

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Section: Measurement Of Variablesmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

How Does Financial Literacy Promote Sustainability in SMEs? A Developing Country Perspective

2019

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“…Sustainable competitive performance: We used eight items to measure SCP that were adopted from Degong et al [3]. Owners and managers were asked how their firms have performed on return on equity, return on investment, return on assets, etc.…”

Section: Variables and Measuresmentioning

confidence: 99%

“…Resource base view (RBV) theory depicts that unique, rare, and immutable resources enable firms to gain sustainable competitive advantage [2]. A plethora of research has confirmed the significant influence of resources on firms' performance (e.g., [3][4][5]). However, acquiring resources such as land, equipment, machineries, information, finance, technology, and customers is a great challenge for business organizations.…”

Section: Introductionmentioning

confidence: 99%

The Role of a Manager’s Intangible Capabilities in Resource Acquisition and Sustainable Competitive Performance

2019

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The answer to the challenging question, “Should one either invest in tangible resources or intangible resources/capabilities?” is still fragmented. In prior studies, more emphasis is given to tangible resources, while intangible resources have comparatively received minor attention, despite their significant role in the success of small and medium enterprises (SMEs). Particularly the role of the intangible skills; intellectual capital, financial literacy (FL), and business experience (BE) in resource acquisition and sustainable competitive performance has missed in prior studies. Grounded on the resource-based view and upper echelon theory, this study examines the role of intellectual capital in sustainable competitive performance with a mediating role of resource acquisition. This research also assesses the moderating role of financial literacy and business experience between intellectual capital and resource acquisition. Data are collected through structured questionnaires from 384 owners/managers of Pakistani SMEs. After analyzing the data through structural equation modeling (SEM), the results indicate that intellectual capital helps managers in acquiring valuable resources, which in turn enhance sustainable competitive performance. Resource acquisition partially mediates the relation between intellectual capital and sustainable competitive performance. Financial literacy is a significant predictor of resource acquisition, but it does not significantly moderate the relation between intellectual capital and sustainable competitive performance. Business experience significantly boosts the acquisition of resources and strengthens the path between intellectual capital and resource acquisition. SMEs should encourage their managers to acquire unique, rare, and immutable external resources in the turbulent markets.

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“…This study tests the model on the empirical evidence gathered from Asian economies. The reasons for choosing Asian economies are that most of the countries in Asia are placed in low-income countries who are unable to respond to ED unless they receive adequate support in the form of FDI [40]. Asian countries have not yet initiated effective programs and policies to attenuate the adverse in uence of ED [41].…”

Section: Introductionmentioning

confidence: 99%

Unleashing the Indirect Influence of FDI in Environmental Degradation via Financial Development and Economic Growth. New Evidence from Asian Countries

Qamri

Bing

Khan

et al. 2020

Preprint

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Background:Scholars in developed and emerging economies have widely tested the interactions between foreign direct investment, financial development, economic growth and environmental degradation. Despite a number of empirical and review studies, it is not yet wrap up either the associations are negative, positive, direct or indirect. Additionally, minor attention is given to the indirect role of foreign direct investment in environmental degradation; perhaps no study has yet demonstrated the mediating role of financial development and economic growth between foreign direct investment and environmental degradation in Asian economies. Referring to the fragmented outputs and consequences as well as lacking the indirect role, the present study examines the influence of foreign direct investment on environmental degradation with the mediating role of financial development and economic growth. Results:Secondary data of 21 Asian countries from 1980-2018 were gathered from World Bank Indicators and then performed STATA to test the paths. Our findings are slightly different from the studies conducted in developed economies. The results indicate that foreign direct investment significantly improves environmental quality by deteriorating environmental pollution. It also significantly improves economic growth in the selected regions. Surprisingly, our study shows that foreign direct investment has a significant negative influence on financial development in the Asian regions. Both financial development and economic growth significantly negatively influence environmental degradation in Asian regions. However, financial development partially mediates while economic growth does not play any mediating role between foreign direct investment and environmental degradation in the Asian countries. Trade openness and population growth as control factors do not show any significant role in the model. Conclusions:This research recommends policymakers to focus on the inflow of foreign direct investment in order to enhance economic growth and environmental quality. It is strongly suggested for policymakers to attenuate the political intervention (e.g. ensure the political stability) in the inflow of foreign direct investment, so financial resources can be impartially distributed in the industrial sector and thus the nations will have an effective financial development system. Other implications have described.

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Do International Capabilities and Resources Configure Firm’s Sustainable Competitive Performance? Research within Pakistani SMEs

Cited by 50 publications

References 69 publications

How Does Financial Literacy Promote Sustainability in SMEs? A Developing Country Perspective

How Does Financial Literacy Promote Sustainability in SMEs? A Developing Country Perspective

The Role of a Manager’s Intangible Capabilities in Resource Acquisition and Sustainable Competitive Performance

Unleashing the Indirect Influence of FDI in Environmental Degradation via Financial Development and Economic Growth. New Evidence from Asian Countries

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