Managerial practices and the productivity of knowledge‐intensive service businesses: An analysis of digital/IT and cash management practices

Abstract

Knowledge-intensive service firms achieve superior productivity levels with management practices oriented to improve the relationship with customers. Managerial practices linked to digital and IT-based practices and cash management techniques contribute to enhance SMEs' productivity level. The positive effect of cash management techniques and digital/IT-based practices is conditioned by the characteristics of the businesses' operations, in our case, the knowledge orientation of the organization. While nonknowledge-based businesses benefit more from practices linked to digitization and IT practices, knowledge-intensive businesses capitalize more on management practices that seek to improve the relationship with customers.

An Empirical Study of Management of Cash Flow in SMEs and Organization

“…This implies that the measure of cash balance ð Þ Sn toward the start of period n is unaltered on the off chance that it is inside the upper Sþ ð Þ and lower Sð Þ limits; else, it ought to be changed in accordance with as far as possible in a comparable path to the Miller-Orr model. All the more as of late, a few creators have been chipping away at this issue, including Pacheco et al, who built up a hereditary calculation to decide interests in cash related items accessible available dependent on the anticipated cash flow, acquiring the most extreme return for explicit periods [17].…”

Financial bootstrapping among Costa Rican small businesses: an exploratory study

“…Building on prior work on small business financing, financial bootstrapping is defined as the set of methods or practices used by businesses to optimize cash management by reducing operating costs and improving cash flow management (Carter and Van Auken, 2005;Ebben and Johnson, 2006;Grichnik et al, 2014;Horváth and Szerb, 2018). Winborg and Landström (2001) conclude that financial bootstrapping techniques are commonly used by SMEs, regardless of their market experience.…”

“…Because of the difficulties in raising finance from traditional economic agents-i.e., financial institutions or equity markets-that primarily result from information asymmetries problems (Harrison et al, 2004), SMEs increasingly adopt financial bootstrapping practices to respond to these constraints (Ebben and Johnson, 2006;Grichnik et al, 2014;Horváth and Szerb, 2018).…”

“…Academic research has primarily analyzed and catalogued financial bootstrapping practices used by SMEs in developed contexts (e.g., Harrison et al, 2004;Ebben and Johnson, 2006;Vanacker et al, 2011;Grichnik et al, 2014). On contrary, the specific analysis of how SMEs adopt bootstrapping techniques in developing economies has been largely sidelined in prior work (in this sense, the work by Horváth and Szerb (2018) is a welcome exception). This is the focus of this study.…”

“…Similar to Horváth and Szerb (2018), the proposed analysis helps to profile businesses in terms of the adopted bootstrapping techniques. Also, the implementation of bootstrapping techniques has been linked to strategic choices designed to optimize the use of internal resources and the business' cost structure (Aldrich & Auster, 1986;Hudson et al, 2001), and this study contributes to unveil organizational trajectories based on the underlying properties of bootstrapping techniques that might favor their joint implementation in often dissimilar businesses.…”