Lending Relationships and SMEs’ Productivity. Does Social Capital Matter?

Agostino, Mariarosaria; Errico, Lucia; Rondinella, Sandro; Trivieri, Francesco

doi:10.1080/13571516.2021.1949241

Cited by 8 publications

(4 citation statements)

References 98 publications

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“…Jones et al (2020) identifies potential stakeholders for SME productivity development who have both access and influence, and Mole (2002) ranks the relative power to show that accountants, commercial bank managers and management consultants all had higher "power rankings" than others. Agostino et al (2021) found high levels of trust that can develop between SMEs and commercial bank managers, mitigating agency problems for SMEs about finding the right collaborative partner for productivity improvement. Accountants and bank manages possess "insider" knowledge of the SME capabilities (Mole, 2002), which can help Interventions for improving productivity identify potential SME participants who have the need, but also, a current level of ability to engage in knowledge transfer activity.…”

Section: Intervention Collaborative Arrangementsmentioning

confidence: 99%

“…(2020) identifies potential stakeholders for SME productivity development who have both access and influence, and Mole (2002) ranks the relative power to show that accountants, commercial bank managers and management consultants all had higher “power rankings” than others. Agostino et al. (2021) found high levels of trust that can develop between SMEs and commercial bank managers, mitigating agency problems for SMEs about finding the right collaborative partner for productivity improvement.…”

Section: Intervention Designmentioning

confidence: 99%

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Developing SME performance management practices: interventions for improving productivity

Jones

Devins

Barnes

2023

IJPPM

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PurposeThe paper is a proof of concept (PoC) intervention study aimed for developing performance management (PM) practices in manufacturing small and medium-sized enterprises (SMEs) with the longer-term aim enabling the SMEs to improve their productivity. The intervention was designed and deployed by a collaborative quartet of academics, management consultants, accountancy firm and a commercial bank manager.Design/methodology/approachThe paper firstly musters a set of initialising PM practices aligned to productivity improvement. These are utilised to design a knowledge transfer intervention for deployment with a set of manufacturing SMEs incorporating some associated productivity tools. The evaluation of the intervention utilised a case study approach founded on a logic model of the intervention to assess the development of the PM practices.FindingsThe intervention contributed to a partial development of the mustered practices and the productivity diagnostic based on the multi-factor productivity (MFP) abstraction and a data extraction protocol had the strongest impact. The study revealed the importance of the three interlaced factors: Depth of engagement, feedback opportunities and the intervention gradient (the increase of independent action from the participating SME's and the diminishment of the external intervention effort).Research limitations/implicationsThe case study is based on a limited number of individual SME's, and within just the manufacturing sector.Practical implicationsSME businesses will require a more sustained programme of interventions than this pilot to develop PM capability, and depth of engagement within the SME is critical. Professional stakeholders can be utilised in recruitment of firms for intervention programmes. Business can start developing PM capability prior to PMS implementation using the tools from this programme.Originality/valueThe productivity diagnostic tool, based on a synthesis of MFP and the performance pyramid, an array of potential initialising practices for PM capability and discovery of potential mechanisms for PM practice development.

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Section: Intervention Collaborative Arrangementsmentioning

confidence: 99%

Section: Intervention Designmentioning

confidence: 99%

Developing SME performance management practices: interventions for improving productivity

Jones

Devins

Barnes

2023

IJPPM

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“…For many years, researchers from a variety of academic backgrounds, including finance [ [1] , [2] , [3] , [4] , [5] , [6] ]; economics [ [7] , [8] , [9] ] and marketing [ [10] , [11] , [12] ], have studied the SME-bank relationship. In all these studies, however, relationship banking (RB) is approached as though it were an undifferentiated monolith, where no differences exist between relationships with micro, small, and medium enterprises.…”

Section: Introductionmentioning

confidence: 99%

Modelling the trident SME-bank relationship

Boulanouar

Ghassan²

2023

Heliyon

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“…Bank face tough competition in credit market and meets the credit targets assigned by the regulators. Agostino et al (2022) Credit relationships in banking are greatly affected by social capital. The strength and length of credit relationship depends upon the social capital.…”

Section: Introductionmentioning

confidence: 99%

Exploring Effect of Trust on the Agency Costs and Competitive Advantages in Credit Relationships between Banks and SMEs.

Rizwan

Akhtar

2022

International Journal of Social Science Entrepreneurship

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The purpose of current investigation is to examine the effects of interpersonal and inter-organizational trust on agency costs and competitive advantages achieved by banks and small and medium-sized enterprises working in Pakistan. The moderating variable namely non-financial advisory service has been used to augment the credit relationships. For collection of primary data, dyadic questionnaires were distributed among branch managers and credit officers and SMEs. Some Interviews have been conducted. The research results provide evidence that interpersonal and inter-organizational trust tends to decrease agency costs increasing the quality of credit negotiations. This has further impact on reduced bank’s monitoring intensity enabling the stake holders to achieve competitive advantages. Non-financial advisory services further moderate significantly the credit relationships.

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Lending Relationships and SMEs’ Productivity. Does Social Capital Matter?

Cited by 8 publications

References 98 publications

Developing SME performance management practices: interventions for improving productivity

Developing SME performance management practices: interventions for improving productivity

Modelling the trident SME-bank relationship

Exploring Effect of Trust on the Agency Costs and Competitive Advantages in Credit Relationships between Banks and SMEs.

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