The Entrepreneur's Network and Firm Performance

Νεε, Victor; Li, Lisha; DellaPosta, Daniel

doi:10.15195/v4.a23

Cited by 12 publications

(7 citation statements)

References 55 publications

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“…They presented a model for evaluating the performance of the firms' SC network. Nee et al (2017) studied the relationship between the network and firm performance and found that network ties are linked with firm assets and equity, and enhance the SC performance. They critically examined the nodes and ties that matter in the relationship between the network and firm performance.…”

Section: Smes' Credit Qualitymentioning

confidence: 99%

Supply chain network and information sharing effects of SMEs’ credit quality on firm performance

Ali

Mehreen

2019

JEIM

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Purpose The purpose of this paper is to examine how a supply chain (SC) network helps small and medium enterprises (SMEs) to obtain liquidity and working capital for enhancing their performance while developing the relationships among SC members through information sharing. Moreover, this study also investigates whether a strong tie or bridge tie improves the availability of SMEs’ credit and performance. Design/methodology/approach Using a survey approach, data were collected from textile SMEs, located in Pakistan. Structural equation modeling and hierarchical regression model were run to validate the proposed model and the relationships. Findings Findings highlighted that strong tie and bridge tie of SMEs positively and significantly enhance the credit quality and SMEs’ performance. Furthermore, information sharing significantly moderates the relationship between SC network ties and SMEs’ credit quality. Credit quality significantly explains the indirect (mediation) association between the strong tie and the firm performance. Practical implications This study will help the SMEs’ entrepreneurs and SC executives to strengthen the liquidity position of SME and improve SMEs’ performance by developing the bridge ties. SMEs should share more information in their SC network while performing business transactions so that financers or lenders can easily access their operational capabilities and individual characteristics to offer them quality credit such as supply chain finance (SCF). Originality/value SMEs always face the issue of risk-free financing which adversely affects the firm performance. This study covered the hidden gap in SCM and SMEs’ financing literature by identifying the crucial role of SCF as quality credit in the development of SMEs. Moreover, SMEs can get benefits (e.g. quality credit=SCF) for better embedding in an SC network through information sharing.

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Section: Smes' Credit Qualitymentioning

confidence: 99%

Supply chain network and information sharing effects of SMEs’ credit quality on firm performance

Ali

Mehreen

2019

JEIM

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“…More and more studies of corporate finance have been undertaken from a social network perspective. Numerous authors have assembled various types of social networks, such as board network (Larcker, So, & Wang, 2013), CEO network (El-Khatib, Fogel, & Jandik, 2015), venture capital network (Hochberg, Ljungqvist, & Lu, 2007) and so on, and they have provided empirical evidence of these networks' effects on corporate governance (Chen, Wang, & Lin, 2014;Nee, Liu, & DellaPosta, 2017;Kim, 2017). Supply networks share common features with these networks in terms of information acquisition and reciprocal cooperation.…”

Section: Literature Reviewmentioning

confidence: 99%

“…In fact, a firm's embedded social networks have a substantial influence on its operating conditions and financial decisions. Relevant studies indicate that having a favorable position in a social network provides a firm with opportunities to improve innovation ability (Bell, 2005;Whittington, Owensmith, & Powell, 2009;De Prato & Nepelski, 2014), achieve higher return on investment (Hochberg, Ljungqvist, & Lu, 2007;Larcker, So, & Wang, 2013;El-Khatib, Fogel, & Jandik, 2015), and secure financing at a lower cost (Chuluun, Prevost, & Puthenpurackal, 2014;Engelberg, Gao, & Parsons, 2012), which all help the firm to enhance overall performance (Zaheer & Bell, 2005;Kim, 2017;Nee, Liu, & DellaPosta, 2017;Carnovale, Rogers, & Yeniyurt, 2019). As a vital social network where firms are embedded, the supply network exerts a pivotal influence on corporate economic behavior and outcomes.…”

Section: Introductionmentioning

confidence: 99%

Supply Network Position and Firm Performance: Evidence From Chinese Listed Manufacturing Companies

Shia

Yang

2019

Journal of Business Economics and Management

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The aim of this paper is to examine the relationship between supply network position and firm performance. A-share manufacturing companies listed from 2013 to 2015 are chosen as the initial samples, and large sample supply networks are constructed with relational embeddedness and structural embeddedness. The location of supply network is depicted by network centrality and structural hole with social network analysis, and the influence of supply network position on the corporate performance is examined with multiple OLS regression analysis. This paper observes that a firms’ supply network position is an important factor affecting its performance. The higher the network centrality is, the richer the structural holes are, and the worse the company’s performance is. The results suggest that firms that have a high level of centrality or rich structural holes in their supply networks will gain limited information, resource and control benefits and face great business risks that may negatively influence their performance.

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“…Several previous studies have shown that several factors can affect the performance of MSMEs, including capital deepening and human capital (Badriah et al, 2019) and social capital (Prakasa, 2018;Nee et al, 2017;Hoq et al, 2017;Dai et al, 2015;Felício et al, 2014). Bourdieu (1980) in Kuncoro (2010) defines social capital as an aggregate of actual and potential resources that are bound to create networking to institutionalize mutually beneficial friendly relations.…”

Section: Introductionmentioning

confidence: 99%

Business Efficiency and Business Performance of Coconut Sugar Smes in Banyumas Regency

2021

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This study aims to analyze economic efficiency and the factors that influence the performance of coconut sugar SMEs in Cilongok District, Banyumas Regency. This study uses primary data obtained through interviews with 162 respondents. By using Benefit-Cost Ratio analysis and multiple regression, this study finds that the coconut sugar business in Cilongok District, Banyumas Regency is not yet efficient and the coconut sugar business performance is positively influenced by financial capital. While social capital and human capital do not affect it. This research implies the need for continuous efforts from all stakeholders to provide business assistance and certainty in product marketing so that product prices become more stable. In addition, it is also necessary to optimize the potential of social and human capital to strengthen the role of financial capital in improving business performance. This can be done through the institutionalization of social capital and optimizing the role of the village government in facilitating cooperation with various parties.

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The Entrepreneur's Network and Firm Performance

Cited by 12 publications

References 55 publications

Supply chain network and information sharing effects of SMEs’ credit quality on firm performance

Supply chain network and information sharing effects of SMEs’ credit quality on firm performance

Supply Network Position and Firm Performance: Evidence From Chinese Listed Manufacturing Companies

Business Efficiency and Business Performance of Coconut Sugar Smes in Banyumas Regency

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