Location still matters! How does geographic configuration influence the performance-enhancing advantages of FDI spillovers?

Wang, Elizabeth Yi; Kafouros, Mario

doi:10.1016/j.intman.2020.100777

Cited by 11 publications

(5 citation statements)

References 72 publications

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“…This is in consonance with the finding of Ittner, Larcker, and Rajan (1997) who also established insignificant correlation between firm size and financial performance. However, the finding was at variance with the findings of Pervan (2012), Covin andSlevin (1988), Wang and Kafouros (2020), Moghaddam and Foroughi (2012) who established a significant correlation between firm size and financial performance in varied organizations. The study finding compares with contracting theory unfavorably.…”

Section: Descriptive Resultscontrasting

confidence: 70%

“…According to Wamukota, Munir, and Alaka (2018), firm size has a role to play on financial performance of an organization. According to studies conducted by Pervan (2012), Covin & Slevin (1988), Wang & Kafouros (2020), Ittner, Larcker, &Rajan (1997), andMoghaddam &Foroughi (2012) to establish how firm size of an organization influence financial performance, the studies had mixed results. The studies also had limitations in their methodologies.…”

Section: Background Of the Studymentioning

confidence: 99%

“…A different empirical study was also meant to establish the relationship between firm size and performance. The study was conducted by Wang and Kafouros (2020) with an objective of establishing the influence of geographical spread of the organization and performance. Firm size was measured by the geographical spread of the organization.…”

Section: Extent To Which Firm Size Influence Financial Performancementioning

confidence: 99%

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Effect of Financial Inclusion on Performance of Microfinance Banks in Kenya

Issaias¹,

Odondo²,

Okelo³

2021

theijbm

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Financial inclusion brings closer financial services at affordable costs to sections of disadvantaged and low-income segments of society. There have been many formidable challenges in financial inclusion such challenges include; bridging the gap between the sections of society that are financially excluded within the ambit of the formal financial system, providing financial literacy and strengthening credit delivery mechanisms so as to promote financial economic growth. A nation can grow economically and socially if its weaker section can turn out to be financially independent. Kenya strives to become a regional financial hub with vibrant, efficient and globally competitive financial system to drive savings and investments by the year 2030, where financial inclusion has been identified as a key driver. However, there is paucity of information on the contribution of financial inclusion on performance of micro finance banks in Kenya. It is on this basis that the study sought to determine the effect of financial inclusion on financial performance of micro finance banks in Kenya. The study was guided by Expectations Theory, Contracting Cost Theory and Market Hypothesis Theory. A census study was carried out for all the twelve (12) microfinance banks in Kenya. The study relied on secondary data covering the period 2015-2019 and this was obtained from audited financial statements of the microfinance banks. Correlational research design was adopted. Random and Fixed effects panel data models were estimated to establish the relationships. Choice of the best model between the two was done using the Hausman test where random effect was selected. Post estimation tests including multicollinearity, autocorrelation and heteroscekedastity work conducted. An insignificant negative relationship was established between firm size and return on assets (Coef= -.0014368, p >0.05). Similarly, the study established insignificant negative relationship between interest rates and financial performance as measured by return on asset p >0.05). However, there was a significant positive relationship between operational efficiency and return on asset as a measure of financial performance (Coef= .394119, p <0.05). The study concluded that operational efficiency affected financial performance of micro finance banks in Kenya hence recommended that microfinance institutions should leverage on operational efficiency in order to make profit for shareholders.

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Section: Descriptive Resultscontrasting

confidence: 70%

Section: Background Of the Studymentioning

confidence: 99%

Section: Extent To Which Firm Size Influence Financial Performancementioning

confidence: 99%

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Effect of Financial Inclusion on Performance of Microfinance Banks in Kenya

Issaias¹,

Odondo²,

Okelo³

2021

theijbm

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“…Furthermore, the literature has highlighted the importance of geographical proximity in determining the absorptive capacity of foreign investment by national companies. Wang e Kafouros (2020) indicate that geographical proximity should also be taken into account when determining absorptive capacity. The authors identified that large physical distances between domestic and foreign companies can represent an obstacle to building vertical links, as well as limiting learning by demonstration and imitation, demonstrating the importance of location for an organization's success.…”

Section: Introductionmentioning

confidence: 99%

Productivity and foreign direct investment in the services sector: an econometric analysis

Lopes Coimbra,

Gandra de Carvalho,

Polloni Silva

et al. 2023

GEPROS

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Purpose: Our study seeks to measure the impact of Foreign Direct Investments (FDI) in the services sector on the productivity of municipalities in the state of São Paulo. Theoretical framework: FDI in the services sector has become increasingly important for emerging economies due to the spillover effects, which can boost regional economic development. Methodology/Approach: This study uses econometric modeling to measure the impact of services FDI at the municipal level in the state of São Paulo, the most FDI-intensive region in Brazil. To do so, this study employs an unbalanced panel of data that includes all FDI-receiving municipalities in the state between 2010 and 2016. Findings: Our results point to a positive relationship between FDI in services sectors and municipal productivity. Research, practical & social implications: This study outcomes offer valuable perspectives for the formulation of public policies aimed at attracting foreign investments. They also have important implications for the service sector and could be a reference for future studies on the subject. Originality/ Value: This study addresses FDI in emerging countries, an important discussion given the impact of this type of investment on economic development and social indicators. In addition, this paper expands the FDI literature beyond the manufacturing sector. Keywords: Foreign Direct Investment; Foreign Direct Investment in Services; Spillovers; Productivity.

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“…International business literature argues that relevant intra-cultural differences exist within countries (Chan, Makino and Isobe 2010;Cui and Liu 2000;Jin et al 2015). Moreover, researchers suggest that in developing their international marketing strategy, an organization must have an in-depth understanding of the regional level differences that exist within these markets and the ability to act upon this knowledge (Bijmolt, Paas and Vermunt 2004;Wang and Kafouros 2020). While researchers have only recently started exploring intra-country differences in luxury consumption (Hennigs et al 2012;Shukla 2012), research that simultaneously examines the intra and inter-country symbolic motivations that drive luxury consumption is non-existent.…”

Section: Introductionmentioning

confidence: 99%