Cash Management Practices and Financial Performance of Small and Medium Enterprises (SMEs) in Jordan

This study examined empirically the cash management practices and its effect on the financial performance of SMEs in Jordan. However cash shortage is a chronic challenge to these firms, and cash management is very crucial to the survival and growth of small and medium enterprises. To meet the objective of this study, the researcher sampled  firms operating in various sectors of economic activity. A structured questionnaire was used to collect primary data from the respondents which were analyzed to generate frequencies and percentages. The study revealed that only (32) percent from SMEs kept track of Cash Receipts and payment. and the majority (67%) of respondents have no knowledge about cash control procedures. The study concluded that cash management practices have influence on the financial performance of SMEs. The researchers recommend to the need to  for SME managers to embrace efficient cash management practices  as a strategy to improve their financial performance . Keywords: Cash management, cash surplus, cash deficit, cash control, small and Medium  enterprises

Knowledge Management as a Strategic Tool to Foster Innovativeness of SMEs

This study examines the relationship between knowledge management (KM) (in terms of external acquisition and internal sharing) and innovation behavior. The concept of absorptive capacity and assumptions from the dynamic capabilities view underlie the proposed framework and hypotheses. The framework is empirically tested using a random sample of 649 Dutch small to medium sized enterprises (SMEs). Our empricial results indicate that external acquisition practices play a key role in fostering SMEs’ innovativeness while internal sharing practices do not appear to have a significant influence. External acquisition activity enhances a firm’s awareness of available knowledge opportunities. Firms which actively acquire external knowledge (regardless of the type of knowledge) may build a greater competitive dynamic capability to sense and seize business opportunities which in turn may lead to new or improved products or processes. We suggest that owners/entrepreneurs of SMEs and their firms will benefit in the long term if they strategically manage knowledge, especially using external acquisition practices

Franchising, Knowledge Transfer Practices, and Institutions : Perspectives from Emerging Markets

Paper III is not published yet.The popularity of franchising as a method for businesses expansion is increasing, from small, medium-sized, and large firms to social enterprises. To enjoy the benefits of franchising experienced by Western countries, Africa, through the African Development Bank, has put more effort in using the franchising model to promote SME development and the private sector with the goal of creating wealth and reducing poverty. Identifying the core practices of franchising is therefore essential in order to promote the general understanding of franchising among entrepreneurs, bankers, lawyers, management consultants, investors, donors, governments, and policymakers. By conducting three independent but related studies, this thesis contributes to the building of knowledge concerning knowledge management in franchising firms. Study 1 reviews the research on knowledge management for over two decades to provide an overview of what has been done and determine the gaps that need to be filled to advance theory and practice. I conducted two empirical studies to investigate the knowledge transfer practices of franchising firms in Africa. Study 2 investigates the factors that contribute to the choice of knowledge transfer mechanisms. I found that the successful transfer of knowledge depends not only on the choice of the correct transfer mechanisms but also on the use of such mechanisms to transfer the relevant knowledge to franchisees. Study 3 explores institutional factors and how they impede knowledge transfer practices. In this study I used a company that has utilized the franchising model successfully to grow in African countries regarded as having weak institutions. I found that franchising firms expand into different institutional environments by adapting knowledge transfer practices without altering the core practices of the model.publishedVersio

Career progression in small- and medium-sized law firms: experiences of a diverse workforce

This thesis investigates both career progression structures and diversity management practices in small- and medium-sized law firms: those with fewer than 25 partners (Law Society, 2012). Previous studies have explored career advancement, barriers to entry into law and managing diversity, yet, they have primarily focused on larger companies. As smaller law firms form the majority of the legal sector, a more diverse profession would more effectively meet the needs of its clientele. Moreover, lawyers, described as highly-skilled knowledge workers (Druker, 2003), may be more attracted to career advancement; given their professional orientation. The research questions ask: 1. How is career progression structured in small- and medium-sized law firms? 2. What are perceived as the factors (personal and organisational characteristics) influencing career progression in small- and medium-sized law firms? 3. What diversity management practices exist in these law firms and how effective are they? To answer these questions, data collection comprises 44 semi-structured interviews within case study firms. Findings suggest that while the smaller law firms followed a structural career progression route, both genders acknowledge encountering career obstacles. These tend to be gendered and racialised, as well as shaped by socio-economic status. Using an intersectional multi-level analysis model, three distinct themes emerge as relevant to the experience of working in the small- and medium-sized law firms; covering the importance of educational attainment, networks, and law specialism chosen. While all the organisations recognise increasing workplace diversity as significant and beneficial, diversity management and equal opportunities practices were primarily utilised during the recruitment process. The contributions of this thesis are two-fold. Firstly, offering a new conceptualisation of diversity and diversity management within the smaller-firm context: ‘aesthetic diversity’. Secondly, examining career enablers and obstacles using intersectionality theory to better understand how its usage as a framework can generate beneficial smaller firm HR policies

Assessing the drivers of virtual knowledge management impact in European Firm’s performance : an exploratory analysis

E-Business is a phenomenon that has progressed over the past decades at record speed, with considerable promise and hype. It has been embraced with varying degrees of enthusiasm and impact by both large firms and Small and Medium Enterprises (SME). Parallel with its development, E-Business has attracted research interests, seen in a plethora of new modules, programmes, models and tools. Knowledge Management (KM) is one tool that seams to gain a more relevant role, especially as managing knowledge has become increasingly important to all companies. Appropriate KM practices within organisations can be seen as one of the prerequisites to the enhancement of continuous performance improvement in the interne-based context. Thus, our aim is to develop a conceptual framework related to KM practices in a virtual context and to identify the nature of the relationship existing in those knowledge-driven elements and performance achievements. This paper aims to bridge the gap between the KM and e-business performance-related literatures from the viewpoint of European firms by establishing a model tested in European companies. For this purpose, we used a structural equation modelling analysis. The results show that KM has a positive impact on the maximization of e-business performance and that some elements individually have a positive influence on e-business performance. As limitations of the study, we consider the need for more research into this field and the inclusion of news elements such as technological readiness and management support to KM initiatives. The present study advances knowledge on the nature of the relative importance of different components of Internet-based KM as drivers of e-business performance and reinforces its importance as an integrated e-business tool.info:eu-repo/semantics/publishedVersio

Knowledge, Renewal and Flexibility: Exploratory Research in Family Firms

This study aims to explore how family firms pursue strategies that promote strategic flexibility and knowledge-management (KM) practices to respond to strategic-renewal goals. Specifically, based on a knowledge-based view of the firm, the following research question is proposed: Are there heterogeneous groups of family firms in terms of knowledge management, strategic flexibility and strategic renewal goals? To answer this question, an exploratory study using a two-step cluster analysis is developed. It reveals natural groupings from a sample of 288 small and medium-sized Spanish family enterprises (SMEs). The results obtained identified three distinctive clusters of family firms, namely proactive family firms, transitional or adaptive family firms, and rigid family firms. After two-step cluster analysis, we also conducted analysis of variance (ANOVA) to confirm that significant di erences amongst the three clusters exist. After heterogeneity been confirmed, a further profile of the cluster solution was provided by using CEO and board characteristics, as well as the generational stage of the company. The findings offer some counterbalance for those studies that tend to study family businesses as a homogeneous entity, thus permitting researchers to access more information, providing rich explanations for renewal managerial decision-making purposes in family firm contexts

Contingencies influencing management accounting practice: a Yemen-based empirical study / Ahmed Abdullah Saad Al-Dhubaibi … [et al.]

A significant number of management accounting studies have observed various levels of management accounting practice (MAP) adoption. Although academicians and practitioners have argued that advanced MAPs create value and improve the performance of their adopters, researchers have determined that traditional MAPs remain dominant in the market. This study aims to contribute to the extant body of knowledge on this topic by exploring the level of MAP adoption in Yemen and by examining the effect of certain external (environmental) and internal (organisational) factors on the level of MAP advancement. The sample firms include large firms that operate in various economic sectors in Yemen, such as manufacturing, financial, natural resources extraction and service, as well as medium and small firms to achieve sufficient sample size. The International Federation of Accountants (IFAC) framework on management accounting stages is used to classify the levels of MAP advancement. Competition level and structure type (level of delegation) significantly explain the variations in MAP advancement levels among firms in Yemen. A higher degree of competition and amount of delegations can drive firms to adopt more sophisticated MAPs. These results improve our understanding of why some firms invest in upgrading their management accounting systems and target best practices, whereas other firms tend to continue using traditional MA tools

The use of management accounting practices in Malaysian SMEs

There have been the recent calls for additional research in order to enhance the understanding of the adoption of management accounting practices (MAPs) in small and medium sized enterprises (SMEs). This, allied to an increasing importance of SMEs around the world especially in developing countries, is the motivation for this research. This research explores the uptake of a broad range of MAPs in Malaysian SMEs; identifies the roles of MAPs in the management of SMEs; determines factors that affect the extent of use of MAPs in SMEs and lastly examines the relationship between the use of MAPs and organizational performance of SMEs. A postal questionnaire was conducted to 1,000 Malaysian SMEs in manufacturing sector which elicited 160 useable responses. The results show that the majority of respondents have used the five management accounting areas identified. Use of the costing system, budgeting system and performance evaluation system are significantly higher than for the decision support system and strategic management accounting, which indicates that the uptake of traditional MAPs is greater than for sophisticated MAPs. The results indicate that medium sized firms make greater use of all MAPs as opposed to small sized enterprises. The most significant differences relate to the use of decision support system and strategic management accounting. The increased uptake of sophisticated MAPs by larger firms is in line with size being a contingent variable explaining the use of such practices. The results also suggest that MAPs were perceived as playing very important roles in the management of Malaysian SMEs. Performance evaluation and controlling activities were the major roles of MAPs in the management of SMEs. Overall the study suggests that MAPs are perceived by SMEs as relevant and useful in their management processes. Further, the study found that four out of five contingent factors; size of the firm, intensity of market competition; participation of the owner/manager in the development of MAPs in firm and advanced manufacturing technology have a positive and statistically significant relationship with the use of certain MAPs. The research however found weak support for the positive relationship between the use of MAPs and organizational performance of SMEs. This study enriches the existing body of knowledge of management accounting by providing information as to the use of MAPs in SMEs in Malaysia. The findings can be specifically informative for policy makers intent on developing management accounting skills among Malaysian SMEs. This research will provide valuable insights into the nature of MAPs in SMEs in a developing country and will promote interest among Malaysian researchers as well as researchers of other countries to make the SME sector a focus of interest in management accounting researc

Management of receivables in SMEs in the Czech Republic

Management of receivables is an important component in the system of companies´ management. Management and the financial management and other theoretical disciplines provides many useful knowledge and recommendations about how to manage this area of companies activity, but there is only little knowledge of the conditions for their application in the SMEs and the ways how small and medium-sized enterprises (SMEs) manage this area in real practice, which methods and forms they use for management and collection of receivables, how they secure their receivables, what problems they solve. The research among the Czech companies carried out of the University of Finance and Administration in Prague bring some interesting findings that may become the basis for recommendations on how to improve credit management system in these firms. Main weaknesses have been detected in the monitoring of solvency and financial position of business partners, in insufficient or none security of receivables, in insufficient law enforcement, in a limited use of sophisticated management practices, in co-operation with collecting agencies. The results of this research are presented in this article.peer-reviewe

Effects of knowledge management practices on innovation in SMEs

The management of knowledge assets is crucial for gaining competitive advantage and has a huge strategic importance for the firms. Knowledge management has become one of the emerging fields in today’s research world and has turned out to be a major concern for the organizations as it plays a crucial role in the growth and development of the organization. Knowledge management is a new concept that is why it is gaining increased attention among small and large organizations. In this study three important knowledge management practices are discussed and the necessary insights regarding knowledge management processes and their positive impacts within an organization are provided. The study also brings forth the relationships which knowledge management processes have with radical innovation in small and medium enterprises. The explanatory method of research and quantitative type of research to test the hypothesis of research was used to carry out the study and survey type was involved by using questionnaire. The knowledge management and innovation instruments were adapted from previous researchers. This study’s target population consisted of small and medium-sized enterprises that included service sectors in Quetta, Balochistan. A convenient sampling was applied to collect the necessary data from SMEs. A total of 850 firms were communicated and requested to participate in this survey but 300 (35.6% response rate) accepted to fill out the survey questionnaire. The study utilized structural equation modelling to examine numerous complex cause and effect relationships between variables. The results indicate a positive association between Knowledge management processes and radical innovation. The positive link between Knowledge management processes and innovation indicates the importance and value of knowledge management in achieving competitive advantage through innovation