Management & Economics Research Journal
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Reflecting on the Entrepreneurship Paradox in Sub-Saharan Africa
Full text linkEntrepreneurship is a strategy for economic growth and is perceived to be higher in developing countries. However, other scholars found that it does not bring economic growth in developing countries. The purpose of the study was to reflect on this paradox in Sub-Saharan Africa from neoclassical economic theory, where entrepreneurship is perceived as carrying out innovations. In Malawi, a cross-sectional survey of enterprises was conducted to assess the values of new products, new production methods, new markets, and new enterprises. A comparison of mean values and two independent sample tests were used to analyse innovations carried out, types of entrepreneurial enterprises, and their prevalence. The study found that carrying out innovations among enterprises in Malawi is low. Very few entrepreneurial enterprises were opportunity-motivated, growth-oriented, and limited liability. Therefore, the paradox depends on the theory which guides the understanding of entrepreneurship. The classical economic perspective reflects the paradox, while the neoclassical economic perspective does not. This study contributes to knowledge of the types of entrepreneurial enterprises and shows that the paradox depends on the understanding of entrepreneurship. The findings imply that entrepreneurship is ineffective for economic growth in developing countries because of a lack of carrying out innovation. Therefore, the understanding of entrepreneurship in developing countries needs to be adjusted to neoclassical economic theories so that policy focuses on supporting entrepreneurial enterprises for entrepreneurship to be effective for economic growth, ceteris paribus
Crafting Innovativeness for Graduate Entrepreneurship Development in East Africa: Are Graduates Innovators or Imitators?
Full text linkInnovation is a central determinant that contributes to entrepreneurs' pursuits of opportunities. The vehicle carries the means to concur the market and successfully establish an enterprise. This study used a cross-sectional research design to assess graduates' innovativeness for entrepreneurship development. The study involved 124 respondents selected from a population of Master's students specialising in science subjects originating from East African countries. Objectives one and two were analysed descriptively via per cent and frequencies. In contrast, objective three was analysed through inferential statistics where one sample T-test was employed for assessing the difference between innovation developed and innovation advanced to markets. The findings indicate that the level of innovation is relatively low for all forms of innovation since all the ratings were below 40 per cent. Similarly, the innovation advanced to the markets was respectively low compared to the innovation developed. It is concluded that the level of innovation is limited among first-degree graduates specialising in science subjects in East African countries, and the number of innovations advanced to the market for entrepreneurship development is relatively low compared to innovation developed. This calls for a review of the innovation process development in the higher learning education system. In addition, the recasting of enabling environment for innovation development is needed
The Effect of Organizational Culture on Financial Performance: Based on Cameron and Quinn Model (CVF)
Full text linkThe research objective is to investigate the impact of organizational culture (OC) based on the Cameron and Quinn model (The Competing Value Framework) on financial performance (FP) in Egyptian hotels. The research used five dimensions (occupancy percentage, average room rate, RevPAR, average market share, and average revenue) to measure FP in hotels. Quantitative methods were used to achieve the research objective through the questionnaire. A total of 416 questionnaires were provided to general, executive, HR, and quality managers working in four five-star hotels in Sharm El Sheikh city 104 hotel in Egypt. The research used three main data analysis techniques: descriptive analysis, correlation, and multi-regression by SPSS V25. Empirical findings showed that OC positively affected the FP of hotels. The research recommends that hotels in Egypt to attention to the consolidation of OC types because of their positive impact on enhancing the FP of hotels. Hotels should also promote organizational values such as fairness, equality, teamwork, and employee cooperation and, in addition, enhance the interest in organizational beliefs such as the human element and job satisfaction to increase rewards and incentives
The Mediating Role of Organizational Commitment between Organizational Culture and Job Performance in the Telecommunication Sector
Full text linkThis study investigates the impact of organizational culture on job performance and finds the mediating role of organizational commitment among telecommunication employees. The study analyzed 476 valid questionnaires from the employees of three telecommunication companies in Erbil, Iraq. However, the data was analyzed by Smart-PLS. The results indicated that the direct impact of organizational culture on job performance showed a positive and significant impact. Besides, the mediating role of organizational commitment can enhance and increase the impact of organizational culture on job performance among employees in the telecommunication sector. Furthermore, individuals in the workplace will exhibit different behaviors due to the deployment of culture-based strategies for behavior development. Therefore, job performance will increase if individuals and the workplace culture are in sync
Trade Balance, Exchange Rate and Money Supply in Nigeria: Growth Implications and Lesson for African Countries
Full text linkThe significance of trade in developing nations made this study examine the impact of trade balance, exchange rate, and money supply on economic growth in Nigeria's economy and serve as a lesson for other African countries. The study relies on the Mundell-Fleming BOP model for its framework using secondary time-series data extracted from the statistical bulletin of the Central Bank of Nigeria from 1981 to 2020. The ARDL cointegration of the least square was adopted. The result showed a long-term relationship among trade balance, exchange rate, broad money supply, interest rate, inflation rate, and economic growth in Nigeria. Our study thus concludes that the oil trade balance is the fundamental driver of Nigeria's economic growth. Appropriately, we suggested that to ensure economic growth in Nigeria and other African countries. The government should strategise on policies to develop trade in the non-oil sector. Also, the monetary authorities should design frameworks towards making money supply growth enhancers and stabilising the exchange rate for domestic countries to gain more from trade by intensifying the flux of credit to the real and exporting sector towards setting the economies on the track of expansion
The Contextual Dimensions of Informal Economy and Entrepreneurship
Full text linkThis study investigates the global dynamics of the informal economy and the need for coexistence between it and the formal economy. Developing and developed countries are beset with various social and economic problems, such as unemployment, poverty levels, informal jobs, and global issues. Informal Entrepreneurship remains a focal means to reduce unemployment and create jobs in many economies. The informal economy and entrepreneurship dynamics were investigated using institutional theory and by drawing on a qualitative approach and secondary data from the International Labour Organization and Women in Informal Employment: Globalizing and Organizing datasets. The findings depict the need to ensure that the informal and formal economies coexist well rather than merge due to their interwoven nature. This calls for adopting a system and holistic perspective for studying facets of informal-formal entrepreneurship in different contexts. Informal economy and informal entrepreneurship are essential for reducing global unemployment and developing innovation in the value chain in their contexts. Globally, the informal economy and informal entrepreneurship provide safety nets, a source of livelihood, and pay informal levies that contribute to economic growth and development. The study shows how informal entrepreneurship contributes to the business environment. The contextual evidence from the literature justifies the necessity for informal entrepreneurship and the economy due to the interplay of poor market conditions, institutional voids, entrepreneurial behavior, and local business dynamics
Evaluating Starting a Business Indicators Innovation in the World
Full text linkSince 2003, the World Bank has produced an annual report ranking economies based on ease of doing business score. However, little is known whether the improvements made by evaluated economies on starting business indicators are statistically significant, as claimed by the World Bank. This study aims to evaluate the extent to which starting business indicators were improved in the 145 economies evaluated. The indicators assessed are: starting a business score (SBS), starting a business procedure for men (SBPM), starting a business time for men (SBTM), starting a business cost for men (SBCM), starting a business procedure for women (SBPW), starting a business time for women (SBTW), starting a business cost for women (SBCW), and starting a business in paid-in minimum capital (SBPMC). This study used secondary quantitative data retrieved from the database of the World Bank for the 2004 and 2020 periods. The sample size was made up of 145 economies. Wilcoxon-sign-rank-test-paired-sample was computed using the R programming environment. The results of the Wilcoxon-sign-rank-test-paired-sample indicated that the mean differences are statistically different from zero for all indicators except those evaluated. This means that the economies evaluated improved those indicators for 2020 compared to 2004. The study's findings provide clear insight to policymakers regarding innovations made to ease of doing business improvement. Better use of the results of this study would reduce corruption and increase formal business, increase the number of newly registered businesses, increase business opportunities for starting a new business, and increase companies' productivity. This study evaluated whether business regulations implemented regarding starting a business were statically significant. Future research should be conducted to empirically test the significance of implemented procedures related to other indicators evaluated in doing business reports. This research is novel by empirically testing innovations made in 145 world economies on starting business requirements
Impact of Psychopathy and Narcissism on Employees’ Adverse Outcomes: A Perspective of Ethical Climate Theory and Threatened-Egotism Model
Full text linkThis study examines the impact of psychopathic and narcissistic personalities on employees' adverse outcomes. Additionally, this study investigates the intervening mechanism of workplace incivility among the relationship between psychopathic and narcissistic personalities and adverse outcomes. Furthermore, the interactive impact of Islamic work values was also tested between the association of workplace incivility and adverse outcomes. Data was collected through a survey method from 404 permanent public sector employees using the purposive sampling technique in two different time lags. PROCESS-macro was used to test indirect, interactive, and moderated mediation effects. The findings of this study confirm the direct effect relationship between those psychopathic and narcissistic personalities and employees' adverse outcomes. Further, this study demonstrates that workplace incivility indirectly enhances adverse employee outcomes. Finally, the study findings revealed that a higher level of Islamic work values reduces the adverse outcomes of employees having psychopathic and narcissistic personality characteristics. We also tested the moderated mediation model, which disclosed that a higher level of Islamic work values reduces the negativity level of psychopathic personalities, further decreasing the level of counterproductive work behaviors via workplace incivility. However, there was no moderating role of Islamic work values in reducing narcissist personalities' negativity levels and counterproductive work behaviors via workplace incivility. The present study provides information to the management of public sector organizations on how they can overcome their workforce's negative behaviors and outcomes by implementing the Islamic ethical system. This attempt contributed to ethical climate theory and threatened the egotism model by explaining that negative personality traits predict uncivil behaviors, leading to adverse outcomes. This study further contributes that the organization's ethical climate helps the individuals overcome the negativity of their personalities and negative behaviors
Determinants of Susceptibility to Sunk-Cost Fallacy: A Nigerian Case Study
Full text linkA general economic principle is that when evaluating the costs of a decision, sunk costs should not be considered, and the decision-maker should consider only those costs incurred as a result of making that decision. However, anecdotal and empirical evidence has shown that people are influenced by sunk costs when making decisions, thereby committing the sunk-cost fallacy. A corpus of research has established that this fallacy occurs among nations and cultures to differing extents or degrees. None of the earlier studies, however, focused on Nigerians. This study, therefore, investigates whether Nigerians, too, commit this fallacy and then identifies factors that affect Nigerians' susceptibility to the fallacy. Employing a binary logit model showed that about 49 per cent of the respondents to questions based on a decision-making vignette committed the sunk-cost fallacy. The results also showed that locus of cost responsibility (whether the decision maker or another person bore the cost on behalf of the decision maker) and ethnicity (whether the decision maker is Yoruba or not) were significant determinants of susceptibility to sunk-cost fallacy. This suggests that in Nigeria, the sunk-cost fallacy is intrapersonal and more prevalent among Yorubas than among Hausas or Igbos. Therefore, the sunk-cost fallacy is ubiquitous and more likely in personal decisions than decisions made on behalf of others
The Mediating Role of Institutional Trust on Corporate Image and Customer Trust in Iraqi Banking Sector
Full text linkIn today's highly volatile environment, banks strive to leverage the perceptions of their multiple customers more than ever before to build a sustainable competitive advantage. Accordingly, corporate image and customer trust concepts are vital for academicians and practitioners concerning their potential impact on internal and external stakeholders. Recognizing the intensified significance of a multi-stakeholder perspective, the current study attempts to contribute to the literature by examining the mediating role of institutional trust on the relationship between corporate image and customer trust. The study applies the partial least squares structural equation modelling (PLS-SEM) method to examine this relationship. The data are collected from 372 Iraqi banking customers using a random sampling technique. The finding for path-1 shows a positive and significant association between corporate image, institutional trust, and trust in online banking services. Similarly, the result of path-2 also reveals a positive and significant association between institutional trust and trust in online banking services. Finally, bias-corrected bootstrapping confirms that institutional trust plays a mediating role between corporate image and trust in online banking services in Iraq. This study has important theoretical and practical implications. It not only fills some of the gaps in the literature about trust in online banking services, particularly for Iraq, but it also reinforces to policymakers that institutional trust is an important factor in promoting customers' trust in financial services