98,262 research outputs found
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Perceived competence and credit access of SMEs: can trust change the rules of the game?
Banks play an essential role in financing firms and especially small and medium en-terprises (SMEs). The process used by banks to decide whether and how much to lend is complex and banks rely on different lending techniques. Relationship lending, by leveraging a variety of private information gathered through contact with the firm, its owner, and the local community, has a peculiar role and can benefit SMEs by providing them with easier access to credit. No previous research focuses specifically on the perceived competence of the entrepreneur or the owner/manager of the firm as well as on competence as a substitute of trust. The present paper tries to fill this gap.
The research is based on a panel of 535 entrepreneurial SMEs which operate in the widely studied and economically successful North East of Italy. The data were collected by administering a survey to bank managers of local community banks and of two national banks. The regressions show that competence is positively related to overall credit gained and negatively related to interest rate. In addition, in low trusted SMEs, credit gained is positively related to competence while the interest rate is negatively linked to competence. In highly trusted firms, these relationships are not significant.
Our findings support the point that competence is an important factor irrespective of the quality of the firm and that it is a substitute for trust in low-trusted SMEs. The findings have two major implications: banks should develop tools that are capable to catch the competence of the entrepreneurs irrespective of the performance of the firm depicted in the firms' data; the entrepreneurs need to effectively communicate their competences to the relevant stakeholders such as the bank managers. Thus, perceived competence can play an important role during economic downturns when the performance of the firm is affected by hostile eco-nomic environment
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Trust is the new black
Trust is at the heart of ongoing relationships amongst people, but also with brands and
companies. It has become a hot topic (Connelly, 2017, Huffington, 2015), particularly given the
increasing media coverage of breakdowns in customer trust in well-known companies such as
VW, Tesco, BP and Google. But away from these headlines is a stronger, more underlying trend. A
move from transactions to longer term customer relationships. The risk of undermining that
relationship through not being transparent, not being fair, not having reliable products and
services is exacerbated as our world becomes increasingly technology focused. Relationships
with suppliers we don’t know are built through trusted on-line third parties. Information about
products and services we are unfamiliar with is increasingly sought from others, on-line, and
subsequent feedback on customer experiences shared quickly and widely. Where companies are
not transparent, the exponential growth in speed and breadth of news spreading makes them
vulnerable. It is impossible to hide.
However, to assess our own approach to corporate and brand trust, it helps to go back to the key
academic theories to discover the concepts that underpin our understanding of trust, the
factors that build trust and the outputs that emerge. In addition, we need to understand our
performance on trust in the light of data from an industry and global context but also to support
the business case for ensuring it remains a business priority. Examining a few of the high-profile
failures in trust also helps us identify the range of areas where trust can be undermined. They
provide pieces of a jigsaw that, when seen together, help us understand a broader picture of
trust to inform our approach with our businesses and our customers now and in the future
The moderating effect of brand orientation on inter-firm market orientation and performance
While prior research has shown that market and brand orientation
are key contributors to successful business performance, research to
date has not fully explored how inter firm collaboration for these two
key orientations can enhance business performance. The purpose of
the paper is to investigate the relationship between inter-firm market
and performance; to test for the moderating role of brand orientation
in that relationship. A total of 169 completed pairs of surveys were
collected of small and medium enterprises operating internationally
in a variety of industries in Switzerland. The results show that inter-firm
market and brand orientation are two antecedents of marketing and
financial performance. The impact of inter-firm market on marketing
and financial performance is significant when the brand orientation
is favorable. This study extends previous research by examining the
moderating role of brand orientation on inter firm market orientation,
which is important, especially for firms wanting to increase their brand
reputation by entering into partnerships with other firms. Further
research is indicated, to identify the key moderators of the driving
force of inter-firm market in relation to business performance and
the reason why maintaining a strong brand presence is important in
the international marketplace
Trusted operational scenarios - Trust building mechanisms and strategies for electronic marketplaces.
This document presents and describes the trusted operational scenarios, resulting from the research and work carried out in Seamless project. The report presents identified collaboration habits of small and medium enterprises with low e-skills, trust building mechanisms and issues as main enablers of online business relationships on the electronic marketplace, a questionnaire analysis of the level of trust acceptance and necessity of trust building mechanisms, a proposal for the development of different strategies for the different types of trust mechanisms and recommended actions for the SEAMLESS project or other B2B marketplaces.trust building mechanisms, trust, B2B networks, e-marketplaces
Indonesia Sustainable Fisheries Value Chain Assessments
Wilderness Markets, with the support of the David and Lucile Packard Foundation and the Gordon and Betty Moore Foundation, undertook a series of fishery value chain assessments to better understand the opportunities and constraints for private impact capital to flow into wild-capture fisheries markets in Indonesia. Building on extensive impact-focused investment experience in agricultural value chains, the objectives were to:* Identify and categorize potential impact investment opportunities in wild-capture fisheries utilizing a combination of impact investment frameworks.* In the absence of impact investment opportunities, document value chain constraints preventing such opportunities.* Support the creation of sustainable wild-capture fisheries investment strategies by identifying appropriate frameworks for the assessment and development of intervention opportunities.Wilderness Markets assessed four developing country fisheries (DCFs) in two countries, with a particular focus on Indonesia, plus one fishery in California, US, for comparison. This document focuses on Indonesia and summarises our assessment of the blue swimming crab, snapper, yellowfin and skipjack tuna seafood value chains. Each fishery assessed provided a piece of a larger puzzle, allowing Wilderness Markets to identify the components of a sustainable seafood value chain and its relationship to stock health which, in turn, drives value chain health.This document provides a summary of the findings in Indonesia
Pathways Across the Valley of Death: Novel Intellectual Property Strategies for Accelerated Drug Discovery
Drug discovery is stagnating. Government agencies, industry analysts, and industry scientists have all noted that, despite significant increases in pharmaceutical R&D funding, the production of fundamentally new drugs - particularly drugs that work on new biological pathways and proteins - remains disappointingly low. To some extent, pharmaceutical firms are already embracing the prescription of new, more collaborative R&D organizational models suggested by industry analysts. In this Article, we build on collaborative strategies that firms are already employing by proposing a novel public-private collaboration that would help move upstream academic research across the valley of death that separates upstream research from downstream drug candidates. By exchanging trade secrecy for contract-based collaboration, our proposal would both protect intellectual property rights and enable many more researchers to search for potential drug candidates
Preferences, trust and willingness to pay for food information: An analysis of the Italian Market
Lack of consumer trust and communication strategies are probably the main determinants of information failure in modern food markets. This study attempts to tackle these aspects affecting the quality of food information by investigating questions related to what topics are more relevant to consumers, who should disseminate trustful food information, and how communication should be conveyed. Primary data were collected both through qualitative (in depth interviews and focus groups) and quantitative research. Quantitative research was conducted by means of a questionnaire administered in 2006-2007 to a sample of Italian respondents using both a web and a traditional mail survey. Reading preferences, willingness to pay and trust towards public and private sources conveying information through a hypothetical food magazine were assessed combining factor analysis, choice modelling and a criterion-based market segmentation. The study shows that reading preferences of Italian consumers can be summarized along three dimensions: agro-food system, enjoyment and wellness. Furthermore, willingness to pay for receiving food-related information is influenced by trust towards the type of publisher, which plays also a key role in market segmentation together with socio-demographic and economic variables such as gender, age, presence of children and income. Policy implications of these findings are discussed.food information, trust, preference heterogeneity, segmentation, Italy, Food Consumption/Nutrition/Food Safety, D12, D18, D89, Q18,
INSTITUTIONS AND THE VICIOUS CIRCLE OF DISTRUST IN THE RUSSIAN HOUSEHOLD DEPOSIT MARKET, 1992-1999
In our analysis of the Russian household deposit market during the 1990s, we show how the initial conditions of market emergence contributed to a vicious circle in which private commercial banks progressively lost the trust of potential depositors. The roots of this destructive dynamic lay in the initial conditions of market emergence. Initial experiences of fraud and financial loss led Russian households to distrust that commercial banks would honor their contractual obligations. As distrust grew and became more ingrained, the competitive conditions in the deposit market changed in a way that further increased the gains to opportunism and decreased the returns to trust production. In a self-reinforcing process, fraud begat more fraud.http://deepblue.lib.umich.edu/bitstream/2027.42/39974/3/wp588.pd
CONSUMER DEMAND FOR TRACEABILITY
Consumers have become more discerning in their food consumption choices. Food safety and food quality issues have moved to the forefront of consumer concerns, industry strategies, and in some cases, government policy. A variety of private sector and public policy traceability initiatives have emerged, partly with the objective of reducing consumer information asymmetry with respect to food safety and food quality attributes. This paper examines the role of traceability systems in the food industry and distinguishes between ex-post traceback systems and ex-ante quality verification systems. Examples of voluntary private sector livestock traceability systems and public sector traceability programs are discussed, including the trade implications of mandatory traceability and labeling. The paper presents preliminary results from experimental auctions measuring consumer willingness-to-pay for traceability, food safety and on-farm production assurances.Food Consumption/Nutrition/Food Safety,
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