bluuebunny/crossref_metadata_2025_split huggingface dataset:
SME dependence and coordination in innovation networks
Authors: Gardet Elodie , Mothe Caroline 
Published: May 2012

PurposeThe objective of this research is to identify and characterize the coordination systems used by SME hub firms that are in a situation of dependence with respect to other members of their network, taking into account the influence of hub firm size.Design/methodology/approachSeven case studies were carried out: six innovation networks in which SMEs play a central role are compared with a “reference” case, in which the hub firm is a large company.FindingsThe authors' qualitative empirical analysis of seven innovation projects showed that: the sharing of benefits and the guarantees that are implemented vary depending on the hub firm's degree of dependence; trust and recourse to formal agreements differ according to hub firm size; and conflict solving is influenced by both hub firm size and degree of dependence.Practical implicationsResults have important implications for the management of innovation networks which are increasingly important for the development of SMEs. The knowledge of the adequate coordination mechanism is central for a SME hub firm and the success of the innovation project.Originality/valueInvestigations into the internal operation of inter‐organizational networks have become increasingly common. Nevertheless, empirical studies are still rare, particularly in the field of innovation networks and even more in the case of networks set up by small firms. This article partially fills this gap.
Mergers between size‐unequal partners: strategic risks and hurdles
Authors: Gundolf Katherine , Meier Olivier , Missonier Audrey 
Published: May 2012

PurposeThis article aims to explore how and why the creation of technological innovation during a merger can end in failure. The objective is to propose new analytical elements to improve the formulation and execution of the integration process between an SME (small and medium enterprise) and a large enterprise.Design/methodology/approachThe authors develop a theoretical framework based on the main research results from several fields, including technology transfer, innovation dissemination, and management. This case study then focuses on a merger in the IT sector in real time.FindingsThis study allowed the authors to test theoretical elements, especially the choice of the integration method, which may favour the creation of technological innovation during the integration period. The authors present new reasons for the failure of co‐created innovation between an SME and a large enterprise in the IT sector. This case study allowed them to test theoretical elements such as the choice of an integration method which could favour the creation of technological innovation during the integration period while enriching scientific knowledge by proposing a dynamic approach to the integration process.Originality/valueBefore managers can envisage symbiosis between two merging firms, they first need to go through a period of exploration, which may entail costly mistakes. Yet this exploration period may be necessary to enable them to discover the limitations of a strictly rational approach to the integration process and to broaden their normal frame of reference. For this in‐depth study, the authors benefited from free access to a substantial amount of information that is generally unavailable for scientific research, which greatly contributed to their work. The authors' theoretical framework is not exhaustive, but they tried to incorporate the most significant research results.
Innovation in food sector SMEs
Authors: Baregheh Anahita , Rowley Jennifer , Sambrook Sally , Davies Daffyd 
Published: May 2012

PurposeThis paper aims to present a profile of innovation in food sector SMEs in the UK, exploring specifically the degree and types of innovation employed, and engagement with activities that support innovation orientation, or organisational innovativeness.Design/methodology/approachA questionnaire‐based survey was conducted to gather data from food sector SMEs in the UK. The questionnaire design was informed by previous studies on degree and types of innovation, and the characteristics of innovativeness. Questionnaires were distributed and gathered by hand and online in order to optimise response. A total of 221 usable responses were received and analysed using SPSS.FindingsFood sector SMEs are more focused on incremental innovation as opposed to radical innovation, and they are also more engaged in product and process innovations than in packaging, position and paradigm innovations. In terms of innovation characteristics, SMEs agree that they are usually committed to the majority of a wide range of factors that affect innovation orientation, but most important amongst these are a commitment to encouraging new ideas, and cultivating innovative employees.Originality/valueAlthough the food and drink sector plays an important role within the UK economy, innovation in food sector SMEs has received little previous attention. This paper makes an important contribution by profiling innovation, according to type, and innovation characteristics in food sector SMEs in the UK. In addition, it demonstrates the importance of developing understanding of the management of innovation portfolios embracing a range of types and degrees of innovation.
Can powerful buyers “exploit” SME suppliers?
Authors: Wyld John , Pugh Geoffrey , Tyrrall David 
Published: May 2012

PurposeThe purpose of this paper is to examine the relationship between SME suppliers and large buyers, and so better inform competition policy in cases where market power resides with buyers.Design/methodology/approachThe theories of monopsony and oligopsony are applied to intermediate markets to set out a model of profit appropriation by large buyers from small suppliers. The main focus of the illustrative examples used is on the relationship between supermarkets and their suppliers.FindingsThe authors' main prediction is that powerful buyers are able to “exploit” SME suppliers by restricting their number, the price paid to individual suppliers and the quantity purchased from each supplier.Practical implicationsGovernments seek to encourage small businesses because of their ability to generate innovation and create future growth opportunities. Any investigations of the continued growth of buyer power in intermediate markets should consider the effects not only upon consumer welfare but also upon the welfare of the SME sector. Governments may wish to counteract monopsonistic markets as they may inhibit SMEs that could otherwise provide innovation and growth within the economy.Originality/valueThis model gives a theoretical framework to analyse the interaction between small suppliers and large buyers. Furthermore, it may provide a counter to the argument that low consumer prices are the sole legitimate aim of competition policy.
Punching above their weight: the changing role of networking in SMEs
Authors: Harris Lisa , Rae Alan , Misner Ivan 
Published: May 2012

PurposeThis paper aims to draw upon the findings of a research project which investigated networking styles by owner/managers of small businesses. The authors' specific objective was to analyse the impact of such networking activities on business growth to develop a taxonomy of networking based on size, business model and attitudes of the owner to their use of online and offline networking.Design/methodology/approachThe data in this study comes from analysis of an online survey completed by 645 firms based in both the USA and Europe. The authors compared the networking behaviours of small businesses using face‐to‐face vs online modalities, and assessed the differences between business size and home market (USA vs UK vs Europe). The data was analysed for significant differences between the responses of different classes of respondent, providing a unique taxonomy of networking across a broad geographic area.FindingsThe results identified three distinct categories of networking behaviour in terms of attitude towards scaleability and geographic reach, and the authors showed that effective online networkers tended to be good face‐to‐face networkers also.Practical implicationsThe authors confirmed that effective online networkers can stay small and flexible but still “punch above their weight” in competition with larger organisations that are often more traditional in their approach and structure.Originality/valueThe authors have undertaken one of the first analyses of the circumstances in which SMEs make use of Web 2.0 tools to supplement their more conventional marketing activities, and developed a coherent framework for analysing which companies are likely to make the best use of them.
Centralisation vs de‐centralisation of warehousing
Authors: Graungaard Pedersen Søren , Zachariassen Frederik , Stentoft Arlbjørn Jan 
Published: May 2012

PurposeThe purpose of this paper is to explore the major drivers behind the choice of centralising versus decentralising warehousing locations from a small‐ and medium‐sized enterprise (SME) perspective. Previous literature has investigated this solely from a large company perspective.Design/methodology/approachAn in‐depth literature review was carried out and, in addition, a single case study was conducted in order to investigate the issue at hand. A Danish medium‐sized do‐it‐yourself (DIY) retailer was chosen, as this company faced the challenge of deciding between centralisation vs decentralisation of its warehousing structure.FindingsThe paper has two findings: existing literature does not deal with the difference between SMEs and large companies when speaking of centralised vs decentralised warehousing; and the difference between SMEs and large companies with regard to centralised vs decentralised warehousing lies in the fact that SMEs generally have scarcity in competences and fewer resources, have fewer advantages of economies of scale in a centralised setting, and, finally, have fewer management resources to carry out a centralisation project.Research limitations/implicationsIt is a limitation of this research that a statistical generalisation is not possible. Therefore, the findings in this paper might not be applicable for all SMEs.Practical implicationsWhen speaking of centralising vs decentralising warehousing, SMEs should be aware that different drivers are at play when compared with larger companies.Originality/valueResearch in supply chain management and logistics has not addressed the consequences of warehousing structure from an SME perspective.
Bloated balance sheet, earnings management, and forecast guidance
Authors: Jennifer Ho Li‐Chin , Liu Chao‐Shin , Ouyang Bo 
Published: May 2012

PurposeBarton and Simko argue that the balance sheet information would serve as a constraint on accrual‐based earnings management. This paper aims to extend their argument by examining whether the balance sheet constraint increases managers' propensity to use either downward forecast guidance or real earnings management as a substitute mechanism to avoid earnings surprises.Design/methodology/approachFollowing Barton and Simko, the paper uses the beginning balance of net operating assets relative to sales as a proxy for the balance sheet constraint. The argument is that because of the articulation between the income statement and the balance sheet, previous accounting choices that increase earnings will also increase net assets and therefore the level of net assets reflects the extent of previous accrual management. Models from Matsumoto and Bartov et al. are used to measure forecast guidance. Following Rochowdhury and Cohen et al., a firm's abnormal level of production costs and discretionary expenditures are used as proxies of real earnings management. The empirical analysis is conducted based on the 1996‐2006 annual data for a sample of nonfinancial, nonregulated firms.FindingsThe paper finds that firms with higher level of beginning net operating assets relative to sales are more likely to guide analysts' earnings forecasts downward, and more likely to engage in real earnings management in terms of abnormal increases in production costs and abnormal reductions in discretionary expenditures.Research limitations/implicationsOverall, the paper's evidence suggests that managers turn to real earnings management or downward forecast guidance as a substitute mechanism to avoid negative earnings surprises when their ability to manipulate accruals upward is constrained by the extent to which net assets are already overstated in the balance sheet.Originality/valueThis study adds to prior literature that examines how managers trade off different mechanisms used to meet or beat analysts' earnings expectations. It also contributes to the extant literature by providing further insights on the role of balance sheet information in the process of managing earnings and/or earnings surprises.
Does overlapping membership on audit and compensation committees improve a firm's financial reporting quality?
Authors: Chandar Nandini , Chang Hsihui , Zheng Xiaochuan 
Published: May 2012

PurposeThe purpose of this paper is to examine whether audit committee members of the board prove to be better monitors if they are also on the compensation committee, as they would be more attuned to compensation related earnings management incentives.Design/methodology/approachThe paper uses archival data on a sample of nonfinancial S&P 500 firms representing 1,032 firm years over the period 2003‐2005, and discretionary accruals as a proxy for financial reporting quality.FindingsFirms with overlapping audit and compensation committees have higher financial reporting quality than those without such overlap. In addition, there is an inverted U‐shaped relationship between overlapping magnitude and financial reporting quality, suggesting that there are costs as well as benefits to overlapping committees.Practical implicationsThe findings on this paper have implications for recent policy deliberations on the composition of board committees in general and audit committees in particular, as they clarify the benefits of overlapping committee members.Originality/valueUnderstanding the costs and benefits of the board committee structure is particularly important as boards typically operate through the use of committees. This paper contributes to this area by considering the effect of overlapping memberships on two of the most active and important board committees – the compensation and audit committees – on the monitoring effectiveness of the audit committee.
More power to you: properties of a more powerful event study methodology
Authors: da Graca Tarcisio , Masson Robert 
Published: May 2012

PurposeThe purpose of this paper is to demonstrate with real data the enhanced statistical power of a GLS‐based event study methodology that requires the same input data as the traditional tests.Design/methodology/approachThe paper uses full sample, subsample and simulated modified sample analyses to compare the statistical power of the GLS methodology with traditional methods.FindingsThe paper finds that it is often the case that traditional tests will not reject the null when a GLS‐based test may (strongly) reject the null. The power of the former is poor.Practical implicationsThere are many published event studies where the null is not rejected. This may be because of the phenomenon being tested but it may also be because of the lack of power of traditional estimators. Hence, rerunning them with the authors' more powerful test is likely to reject some currently well‐accepted null hypotheses of no event effect, stimulating new research ideas. Moreover, as individual stocks have become more volatile, the additional power of the authors' methodology to detect abnormal performance for recent and future events becomes even more important.Originality/valueThere are more than 500 event studies in the top finance journals, which can broadly be split into two subgroups: contemporaneous shocks like changes in regulation and non‐contemporaneous events like mergers. GLS contemporaneous modeling of covariances in the former showed little efficiency gains. The paper's GLS modeling of variances for the latter demonstrates potentially huge effects. Practitioners should be skeptical of prior results accepting the null of no event effect and incorporate GLS to be confident of their future findings.
Ripple effects: Sarbanes Oxley's impact upon investor risk in a global economy
Authors: Vakkur Nicholas V. , Herrera‐Vakkur Zulma J. 
Published: May 2012

PurposeThis study seeks to evaluate, in a global context, the impact of Sarbanes Oxley Act on a particular risk measure of importance to investors (risk‐adjusted returns), and two measures of risk due to asymmetry (upside and downside risk). A unique dataset permits a dual evaluation of the law's impact on such measures in leading non‐US economies as well (i.e. “ripple effects”).Design/methodology/approachHypotheses are empirically evaluated on a sample (n=712) of the largest US and European firms (control) using daily return data from 1993 through 2009 – one of the most extensive data sets employed in the literature on this topic to date. The reliability of the risk measures is carefully evaluated using multiple approaches, including Fama‐MacBeth regressions. A series of difference‐in‐difference analyses is then employed to empirically assess Sarbanes Oxley's impact on equity risk.FindingsThe findings suggest Sarbanes Oxley decreased both risk‐adjusted returns and upside risk, whereas downside risk fails to explain the cross section of returns for the largest US firms. From a global perspective, it is suggested that the enactment of Sarbanes Oxley's in the USA motivated leading non‐US economies to adopt similar regulatory measures, which caused “ripple effects” – e.g. effects similar to those documented in this paper – in leading non‐US economies.Practical implicationsThe findings suggest that comprehensive financial regulations, such as Sarbanes Oxley Act, are properly envisaged at the global level, as their impact is not confined to the home country. In an increasingly globalized economy, investor welfare is likely to be influenced – directly as well as indirectly – by economic and financial regulation(s) enacted in foreign economies. Arguably, this suggests the pivotal importance of effective mechanisms of global governance, such that a purely domestic approach to regulation may be short‐sighted. In either case, the findings of this study are entirely relevant if regulators are to consider the broader, global impact of regulation on investor welfare.Originality/valueThis is the first study to empirically analyze, within a global framework, Sarbanes Oxley's risk implications without relying on a series of simple mean variance analyses. Substantive research documents that the methodological approach employed is more precise, reliable as well as “investor relevant”. Furthermore, the authors seek to assess the law's impact on leading non‐US equity markets, a first for the literature. Consequently, this study provides a robust evaluation of the law's (international) impact on firm (equity) risk, making an important contribution to the literature.
Interest barrier rules as a response to highly leveraged transactions
Authors: Knauer Thorsten , Sommer Friedrich 
Published: May 2012

PurposeThe tax advantage of debt is considered an important motivation for highly leveraged transactions. The German government limited the tax deductibility of interest expenses to 30.0 percent of earnings before interest, taxes, depreciation, and amortization (the interest barrier rule) in 2008 to reduce the tax incentives for debt financing. This study aims to evaluate the impact of the introduction of the interest barrier rule.Design/methodology/approachThe paper analyzes the changes in the value of the tax shield for German leveraged buyouts as a result of the promulgation of an interest barrier rule. Tax shields are computed to quantify the wealth transfer from taxpayers to corporations.FindingsPrior to the 2008 tax reform, tax shields contributed 8.4 percent to the transaction price, thereby raising the equity value by 33.0 percent on average. With the introduction of the interest barrier rule, the value of tax shields is reduced by 35.1 percent. Affecting more than 75 percent of buyouts, the rule significantly lessens the tax incentive for high levels of debt. The reduction of the corporate tax rate from 31.7 percent to 26.3 percent further lowers the value creation potential. The limited interest deductibility may therefore reduce the number of leveraged buyouts and hence economic growth, unless other non‐debt forms of financing can fulfill the need for capital.Originality/valueAs the first continental European study, this research concentrates on the impact of the German interest barrier rule on value creation in highly leveraged transactions. Conclusions can be drawn in a broader European context.
House prices, disposable income and permanent and temporary shocks
Authors: Fraser Patricia , Hoesli Martin , McAlevey Lynn 
Published: May 2012

PurposeThe purpose of this paper is to compare responses of house prices in three important markets when faced with permanent and temporary shocks to income. It additionally decomposes each historical house price series into its permanent, temporary and deterministic components.Design/methodology/approachUsing quarterly data over 1973‐2008, two‐variable systems of house prices and income are specified for three major house‐owning economies: New Zealand (NZ), the United Kingdom (UK) and the United States of America (USA).FindingsNZ and UK housing markets are sensitive to both permanent and temporary shocks to income, while the US market reacts to temporary shocks with the permanent component having a largely insignificant role to play in house price composition. In NZ, the temporary component of house prices has tended to be positive over time, pushing prices higher than they would have been otherwise; while in the UK, both permanent and temporary components have tended to reinforce each other.Originality/valueThe paper uses state‐of‐the‐art methods to analyse the relationships between income and house prices in three economies.