Enterprises In Pakistan Research Articles

Navigating Green Innovation and Key Determinants of Small and Medium-Sized Enterprises in Pakistan

Navigating Green Innovation and Key Determinants of Small and Medium-Sized Enterprises in Pakistan

Market-orientation, entrepreneurial-orientation and SMEs’ performance: the mediating roles of marketing capabilities and competitive strategies

PurposeAppealing to the resource-based view and the resource advantage theory, this research aims to ascertain the complementarity of entrepreneurial and market orientation in enhancing the performance of small and medium enterprises.Design/methodology/approachFollowing a survey design, a self-administered questionnaire containing scales adapted from leading previous studies was used to collect data from 400 executives working in small and medium enterprises in Pakistan. Partial least squares-based structural equation modeling was performed to analyze the measurement and the structural models and test the significance of the hypothesized relationships.FindingsIt has been found that market orientation and entrepreneurial orientation enhance firm performance directly and indirectly with marketing capabilities and competitive strategies (partially or fully) mediating these causes and effects relationships.Practical implicationsThe study adds to the literature on entrepreneurship, marketing and strategy and has significant ramifications for managers and public policymakers desiring to boost the performance of small and medium enterprises, which is crucial to the economic growth of developing nations, through nurturing and leveraging intangible resources such as market orientation, entrepreneurial orientation and marketing capabilities.Originality/valueIt is one of the rare attempts to investigate the complementarity of entrepreneurial orientation and market orientation, channeled through marketing capabilities and competitive strategies to boost SME performance, that too in the context of a developing country.

Role of Small and Medium Enterprises in Managing Financial Liquidity in Corporate Sector: A Case Study of Pakistan

This study recognizes the importance of small and medium enterprises in improving the financial liquidity in the corporate sector. These enterprises play an important role in the sale of finished products on credit and managing the inventories of merchandizing goods. Consequently, the burden of inventory holding and receivables from consumers is transferred from large-scale industries to small and medium enterprises (SMEs). In such ways, they facilitate the large-scale manufacturers. Large-scale firms can focus on investment in fixed assets. This mechanism promotes the expansion of business activities in the economy. The small and medium enterprises in Pakistan play also an important role in earnings from exports. To identify these linkages is the main concern of the study. The study identifies the determinants of inventories, receivables, exports, and spending on employment. The study is based on 6 years’ data from 398 companies listed on the Pakistan Stock Exchange, while panel least square techniques have been applied to estimate the parameters.

The Influence of Internal Corporate Social Responsibility Factors on the Innovation Climate of Employees in the Healthcare Industry

This study examined the relationship between employee innovation and employee-initiated corporate social responsibility (CSR) elements in medical diagnostic enterprises in Pakistan during the COVID-19 pandemic. The research identified nine variables of employee-driven CSR, including communication, empowerment, and work satisfaction. Theoretical framework of the study based on theory of corporate social responsibility and expectancy theory of motivation. It evaluated their effects on the atmosphere for employee innovation using statistical analysis by using SPSS and after collecting data by using a survey questionnaire. The study population was employees working in the healthcare industry in Pakistan. The findings showed that employee-driven CSR and innovation were significantly correlated, with work satisfaction having the most impact. Overall, this quantitative study provides important insights for both theoretical understanding and practical application in fostering innovation through CSR initiatives. It emphasizes the critical role of job satisfaction as a key motivating factor for innovation within the framework of employee-driven CSR in the medical diagnostics sector.

The Role of Stakeholder Collaboration in Civic Wealth Creation in Pakistan: A Social Entrepreneurial Perspective

The contemporary global landscape is marked by unprecedented challenges, necessitating sustained endeavors toward fostering a sustainable future. In response, a plethora of conceptual frameworks have emerged, aligning with the Sustainable Development Goals delineated in 2015. Among these emergent frameworks, civic wealth creation has garnered attention for its perceived efficacy in addressing multifaceted social, economic, and communal challenges, thereby fostering enhanced community well-being. Central to the civic wealth creation paradigm is the recognition of stakeholder collaboration as indispensable for the effective resolution of collective issues. This framework underscores the imperative of concerted collaboration among diverse stakeholders, including enterprises, regimes of support, and beneficiaries, in the pursuit of generating civic wealth. Social enterprises, positioned as hybrid organizations adept at navigating the nexus between economic and social imperatives, assume a pivotal role in facilitating stakeholder collaboration and engendering civic wealth. Against this backdrop, this study delves into the mechanisms through which social enterprises in Pakistan collaborate with diverse stakeholders to engender civic wealth, thereby contributing to the scholarly discourse on sustainable development and socio-economic transformation.

Understanding the Barriers and Challenges Faced by The Women-preneurs of Karachi, Pakistan

In developing countries, like Pakistan, entrepreneurship has the potential to be a driving force for economic development, job creation, and societal transformation. Entrepreneurship education prepares people to see life's possibilities, produce creative ideas, and manage critical resources. Moreover, it provides people with the knowledge to launch and sustain new businesses with innovation. Women's empowerment via business may have a substantial influence on gender equality while also contributing to Pakistan's overall economic success. This research shed light on the key motives and challenges that women entrepreneurs face while starting and running enterprises in Pakistan. This research incorporates qualitative technique and semi-structured interviews that allows women entrepreneurs to honestly express their unique experiences. The study's findings center on familial support and personal freedom, with the latter appearing as the most prominent and major motivating force. Cultural limitations are a common and significant hurdle, with respondents indicating a desire to transcend society conventions that frequently impede their aspirations, making it difficult to balance their responsibilities in life. While these ladies are pleased with their accomplishments, they are dissatisfied with the lack of support. This study recognizes a few drawbacks such as its concentration on a specific geographical location (Karachi) and a specific population (young women entrepreneurs). These limitations necessitate care when extrapolating the societalfindings in an extensive setting. Future study might broaden the scope to include a more varied population and investigate geographical variances. There are two outcomes for this research. It emphasizes the necessity of specialized support systems and programs meant to deal with the particular difficulties experienced by Pakistani women business owners. It also emphasizes how critical it is to advance cultural sensitivity and entrepreneurship education in order to create an atmosphere that is inspiring for prospective women business owners. The importance of this study is in its original approach to comprehending the driving forces and obstacles faced by Pakistani young women entrepreneurs. Also, it contributes to the expanding corpus of information on entrepreneurship in developing nations b by uncovering their distinct problems and goals. It provides useful information to organizations, legislators, and educators that are proponent of women empowerment and encourage them to pursue entrepreneurship, which will eventually promote gender equality and economic progress.

Determinants of internal financing: small and medium enterprises in Pakistan

Purpose- Internal financing is an indicator of self-reliance, growth, and survival of a firm without help from external sources. It assesses the growth and survival of a firm without raising capital in equity or debt markets. This study identifies the determinants of internal financing. Methodology- The study is based on six years of data from 398 companies in Pakistan, while panel least square (PLS) techniques have been applied to estimate the parameters. The conclusions have been derived through 12 mathematical equations Findings- This study provides a device to assess the appropriate level of internal equities. From an investment policy point of view, lower return on investment discourages investment in small and medium enterprises. Conclusion- The lower return on investment discourages investors from investing in small and medium enterprises. To compensate this effect, the study suggests the intervention by monetary and fiscal policy for the survival of small and medium enterprises (SMEs). Keywords: Dividend, intangible assets, leverage financing, Pakistan, SMEs. JEL Codes: G32, G35, M41

Boardroom Alchemy: Unravelling the Debt and Agency Costs in Manufacturing Sector of Pakistan

The current study aims to investigate boardroom diversity and its varying characteristics by using agency theory to examine the effect of debt and agency costs in the manufacturing sector of Pakistan. Precisely, it seeks to examine how board size, independence, and gender diversity affect the financial matrices of a firm’s profitability. Therefore, the study utilized an imbalanced panel of 105 manufacturing companies that were listed on the Pakistan Stock Exchange (PSX) 2003 to 2022. Furthermore, the study utilized static and dynamic panel models to examine and evaluate the proposed hypotheses. The findings of this study indicated that there is a positive relationship between board size, gender diversity, and debt and agency costs for manufacturing enterprises in Pakistan. Conversely, it was observed that board independence has a negative impact on the debt and agency costs of firms. Future research can use experimental or longitudinal approaches, including varied businesses, to investigate qualitative research for deeper insights. Cross-cultural comparisons would support the findings. Consequently, this study highlighted the importance of exercising caution when evaluating the influence of board composition on debt and agency costs. The results of the study also prompted inquiries regarding the financial ramifications of initiatives aimed at promoting gender diversity.

Exploring the Impact of Ownership Structure and CEO Power on CSR and Firm Performance in Pakistan: A Comparative Study of Pre, Post and Covid Era as an Emerging Economy

The primary purpose of this research is to acquire a profound comprehension of the impacts of Corporate Social Responsibility (CSR) on the operations of firms and on society as a whole, with Pakistan serving as the focal point of the research. This study's objective is to determine whether or not there is a moderating effect of CEO power on the relationships that exist between CSR, ownership concentration, and efficient business practices. In-depth research has been conducted on fifty different non-financial enterprises in Pakistan to see how well they performed before, during, and after the Covid-19 Pandemic. On the data that has been gathered, descriptive statistics and regression analysis have been carried out with the assistance of SPSS. The research found that in the middle of the Covid-19 outbreak in Pakistan, the degree of authority held by CEOs had a major impact on the dynamics of the economy. The authority of the Chief Executive Officer (CEO) has a significant impact on the relationship between corporate social responsibility (CSR) and the performance of an organization. Even in a developing country like Pakistan, the present study highlights the importance of corporate social responsibility (CSR) and the positive influence it may have on the bottom line of a firm. The purpose of this study is to investigate the beneficial benefits that corporate social responsibility (CSR) has on society, with a particular emphasis on emerging countries such as Pakistan. This research serves as a useful guide by emphasising how important CSR is for linking together the success of businesses and the well-being of the society in which they operate.

Exploring the Impact of Ownership Structure and CEO Power on CSR and Firm Performance in Pakistan: A Comparative Study of Pre, Post and Covid Era as an Emerging Economy

The primary purpose of this research is to acquire a profound comprehension of the impacts of Corporate Social Responsibility (CSR) on the operations of firms and on society as a whole, with Pakistan serving as the focal point of the research. This study's objective is to determine whether or not there is a moderating effect of CEO power on the relationships that exist between CSR, ownership concentration, and efficient business practices. In-depth research has been conducted on fifty different non-financial enterprises in Pakistan to see how well they performed before, during, and after the Covid-19 Pandemic. On the data that has been gathered, descriptive statistics and regression analysis have been carried out with the assistance of SPSS. The research found that in the middle of the Covid-19 outbreak in Pakistan, the degree of authority held by CEOs had a major impact on the dynamics of the economy. The authority of the Chief Executive Officer (CEO) has a significant impact on the relationship between corporate social responsibility (CSR) and the performance of an organization. Even in a developing country like Pakistan, the present study highlights the importance of corporate social responsibility (CSR) and the positive influence it may have on the bottom line of a firm. The purpose of this study is to investigate the beneficial benefits that corporate social responsibility (CSR) has on society, with a particular emphasis on emerging countries such as Pakistan. This research serves as a useful guide by emphasising how important CSR is for linking together the success of businesses and the well-being of the society in which they operate.

Green entrepreneurial orientation and knowledge creation process as enablers of green innovation performance: the moderating role of resource orchestration capability

PurposeThe current study aims to ascertain how green entrepreneurial orientation (GEO) affects green innovation performance (GIP) through the mediating mechanism of the knowledge creation process (KCP) and whether or not these associations can be strengthened or hampered by the moderating impacts of resources orchestration capabilities (ROC).Design/methodology/approachThe research used data from managers at various levels in 154 manufacturing enterprises in Pakistan to evaluate the relationships among the constructs using hierarchical regression analysis and moderated mediation approach.FindingsThe study indicates that GEO substantially impacts firms' GIP. GEO and GIP's relationship is partially mediated by two KCP dimensions: knowledge integration (KI) and knowledge exchange (KE). Furthermore, ROC amplifies not only the effects of GEO on KE but also the effects of KE on GIP. The moderated mediation results demonstrate that KE has a greater mediating influence on GEO and GIP when ROC is higher.Research limitations/implicationsTo better understand GEO's advantages and significance, future studies should look into the possible moderating mechanisms of environmental, organizational culture/green capability in the association between GEO, KCP and GIP.Practical implicationsThe research helps expand the field of green entrepreneurship and GIP literature by providing a deeper knowledge of GEO and offering insight into how to boost GI in manufacturing firms.Originality/valueThis research helps fill in knowledge gaps in the field by delving further into the mechanisms by which GEO promotes GIP, both directly and indirectly, via the mediating role of KCP and the moderating impacts of ROC.

Developing the interconnection between green employee behavior, tax avoidance, green capability, and sustainable performance of SMEs through corporate social responsibility

Small and medium-sized enterprises (SMEs) are essential to any economy, as they contribute significantly to the gross domestic product (GDP) and create jobs. Nonetheless, the negative environmental impact of SMEs draws attention to the sustainability of SMEs. In order to achieve sustainable performance, businesses must possess a combination of factors that confer a competitive advantage and facilitate the attainment of objectives that culminate in a triple-bottom-line performance. Although prior research has identified the effects of employee behavior and corporate social responsibility (CSR) on firm performance, less is known about the effects of green employee behavior (GEB), green capability (GC), and CSR (to the community – to the environment) on sustainable firm performance (SFP). Current research bridges the literature gaps by answering how GC, GEB, and tax avoidance (TA) in SMEs correlate to achieving SFP. The study utilized a sample of 375 small and medium-sized textile enterprises in Pakistan and employed partial least square structural equation modeling (PLS-SEM) to analyze the data. The findings suggest that the relationship between corporate social responsibility (CSR) and sustainable firm performance is mediated by green capability. Additionally, corporate social responsibility to the environment does not influence the link between tax avoidance and sustainable firm performance, which still does not shadow the importance of tax avoidance and requires serious attention from the management.

Interconnection between the role of blockchain technologies, supply chain integration, and circular economy: A case of small and medium-sized enterprises in Pakistan.

Increased industrialization has led to unprecedented resource depletion on a global scale. The current state of affairs has compelled practitioners and academics to investigate the role of sustainable technologies in greening the operations of businesses. Previous studies have attempted to examine the number of operational aspects for their role in making firms sustainable, yet the utility of blockchain technologies is in its infancy. The role of BT in enhancing integration across supply chains has been in the limelight in the recent past. At the same time, its ability to cause sustainable supply chain performance (SSCP) in sync with the circular economy (CE) and supply chain integration (SCI) has largely remained unexplored. Therefore, this study intends to examine the association between blockchain technologies (BTs) and SSCPs through integration to fill the empirical gaps. The study was pursued to investigate the moderating role of the CE on the relationship between multiple extents of SCI and SSCP. Based on dynamic capability theory (DCT), the study considered BT a dynamic resource. BTs are used to integrate and reenergize the relationships with upstream and downstream channel members in pursuit of sustainable performance outcomes. The study opted for a cross-sectional design, where data was collected through convenience sampling from 475 managers from SMEs operating across Pakistan. PLS-SEM was used to analyze the data and to generate the required empirical outcomes. Study results favored the significant association between BT and SSCP, followed by a significant mediating role of SCI dimensions and moderating role of the CE. The study's findings propagate the utility of BTs adoption for SMEs, which holds the potential for firms to achieve system-wide integration to achieve sustainable outcomes. The given empirical investigation holds valuable insights for practitioners and scholars intending to pursue research on the subject matter.

The Impact of the COVID-19 Pandemic on Software Business Enterprises in Pakistan: Analysis and Implications

The COVID-19 pandemic emerged over three years ago as a public health crisis, swiftly evolving into a worldwide economic crisis with far-reaching implications for global business enterprises and industries. The unprecedented disruption has varied across sectors, with some experiencing severe consequences while others have thrived. As governments and economies continue to recover from the pandemic's effects, it is crucial to analyze and comprehend these impacts to foster sustainable growth and prepare for future disruptions. This study aims to examine the COVID-19 pandemic's ramifications on Pakistan's software business enterprises by addressing three exploratory research questions: a) the pandemic's influence on Pakistan's software business enterprises, b) actions and initiatives undertaken by these enterprises during the pandemic, and c) the contributions made by these enterprises in combating the pandemic. Employing a mixed-methods approach, a survey research design was developed, incorporating both quantitative and qualitative methods to create a questionnaire grounded in a literature review. The findings of the survey are presented and discussed in-depth. This research contributes to the expanding body of knowledge on the COVID-19 pandemic's effects on business enterprises and industries.

Assessment of Green Human Resource Management in Developing Sustainable Performance of Manufacturing Industry in Pakistan

In light of the evolving corporate landscape and the growing emphasis on competencies and strategic approaches, the concept of Green Human Resource Management (HRM) has emerged as a vital component of global green development. Green HRM integrates environmental considerations into HR activities, contributing to the long-term sustainability of organizations and their workforce. While existing literature has predominantly focused on sustainability, this research addresses the novel contribution of Green HRM. The study examines the impact of Green HRM practices on the sustainability of Pakistan's manufacturing industry, encompassing social, environmental, and economic performance indicators. Data were collected from 111 manufacturing employees in Pakistan, utilizing a convenience sampling method and structured questionnaires. The findings reveal that Green HRM positively influences the environmental, economic, and social performance management practices of emerging economies. Companies with a strong brand image can leverage Green HRM practices to enhance sales and consumer awareness, aligning with their green objectives. Consequently, manufacturing enterprises in Pakistan can enhance their clean industrial capacity by adopting the proposed investigation model.

When and how the implementation of green human resource management and data‐driven culture to improve the firm sustainable environmental development?

AbstractThe process by which manufacturing firms incorporate data‐driven culture into existing routines and use them to generate organizational learning (OL) and improve sustainable environmental development is a central concern in the green management literature. For this, the study examines how and to what extent data‐driven culture contributes to developing and integrating organizational learning capability (OLC) for environmental performance (EP). The analysis is informed by theory on a knowledge‐based view and dynamic capabilities. We propose a conceptual model that examines the moderation‐mediation impact of data‐driven culture on green human resource management (HRM) and EP through OLC. We empirically test our model using primary survey data from 274 manufacturing enterprises in Pakistan. Partial least‐square structural equation modeling and moderated‐mediation regression analysis were used to assess the hypothesized correlations between the variables. The study implies that green HRM practices can facilitate OLC to achieve and gain high EP in contexts of rapid change. Further, the findings show that firms adopting a data‐driven culture may have better EP. Having a robust data‐driven culture makes organizations focus more on learning capability development that promotes increased EP. This research offers several significant contributions to green management literature and theory. Managers should promote green human resource strategies and the importance of data‐driven culture for greening organizations. In today's data‐rich and unpredictable world, these empirical studies provide relevant and practical advice for managers to implement data‐driven culture to make shift and support sustainable development issues.

Workforce diversity enhancing employee performance in small and medium-sized enterprises in Pakistan

This study aimed to highlight workforce diversity in employee performance practice in Pakistan's small and medium enterprises. There is a significantly larger need for a diverse workforce in Pakistani SMEs because SMEs developing their positive contribution to sustaining a Pakistan economy and workforce diversifying the private sector in employment. The influence of diversity involves gender, age, education, and ethnic diversity to improve employee performance. This quantitative research used a survey method to collect data from 120 employees employed in SMEs in Pakistan. The study findings established the significant contribution of training for workforce diversity and employee performance is important for SMEs to solve work-related problems. Initially, employees need to understand the diverse system at SMEs for better team building to accomplish of a task. The statistical results also support the significant association of skills training and team building for task completion. The current study examines the significant challenges to workforce diversity top dimensions of gender, age, education, and ethnicity offer suggestions on how to improve workforce diversity and employee performance. This research is addressing workforce diversity and employee relations in small and medium-sized enterprises in Pakistan, and for better performance, SMEs in Pakistan must concentrate on giving staff tasks and training that are relevant to those tasks. The research influence that all the top four dimensions of workforce diversity (gender, age, education, ethnicity) have a positive correlation with employee performance in a Pakistani small-medium size enterprise. As a result, SMEs must operate workforce diversity to improve employee performance.

How Green Psychological Capital and Green HRM Can Lead to Long-Term Sustainability in Organizations

The economic catastrophe's effects on the nation's environmental conditions include high resource costs and resource spillover consumption. A universal need for sustainable business performance has emerged, and green initiatives are a key solution. New research and regulators have taken these situations into account; as a result, the current study examined the interactions between green transformational leadership (GTL), human resource management (HRM), and the enhancement of manufacturing enterprises' long-term economic success in Pakistan. It also investigated how perceived organizational support affects the collaboration between GTL, green innovation, green human resource management, and manufacturing firms' sustainable industrial performance in Pakistan. Surveys gathered the information, and smart PLS was used to examine the hypotheses. Items regarding perceived organizational support, green innovation, green human resource management, green psychological capital, green transformational leadership, and sustainable business performance were included in the questionnaire. The study's findings showed that GTL, green innovation, and green human resource management had a substantial and direct relationship with the long-term financial success of Pakistani manufacturing enterprises. As a result, the relationship between GTL green innovation, green HRM, and sustainable industry performance of industrialized enterprises in Pakistan is significantly moderated by organizational hold-up. The currently conducted research aids in regulating policies and provides young thinkers with a point of reference.

Earnings Management And Privatisations: Evidence From Pakistan Evidence From Pakistan

This study examines the incidence of earnings management around the time of the privatisation of State Owned Enterprises in Pakistan during 1991-2005. Using the modified Jones model and a sample of large privatisations (minimum US$1 million), it shows that the sampled firms experienced increase in earnings, decrease in cash flows, and increase in current discretionary accruals in the year prior to and/or in the year of privatisation. The SOEs used both short term and long term accruals to inflate reported earnings. These accruals were reversed in the post-privatisation period. These findings suggest that managers of the firms slated for privatisation were engaged in earnings management to inflate their firms‘ financial worth to maximise the privatisation proceeds. Hence, we cannot reject the incidence of earnings management during privatisations in Pakistan. The results imply that the investors should carefully evaluate the to-be-privatised firms and keep in view the possibility of earnings management by the SOEs. JEL Classification: G14, G34, G38, L33, M41 Keywords: Earnings Management, Privatisations, SOEs, Pakistan, Accruals

Fostering Green Finance for Sustainable Development: A Focus on Textile and Leather Small Medium Enterprises in Pakistan

The green financing landscape in Pakistan is evolving, which signifies the need for a comprehensive gap analysis that examines the present status and constraints in supporting green finance in the country. Textile and leather industries are key sectors in Pakistan’s economy and rely heavily on small and medium enterprises (SMEs). Excessive resource use and inadequate environmental management methods pose a significant danger to the sectors’ long-term viability and account for an extreme relevance to the embracement of the circular economy paradigm. Green finance aims to ensure that economic process, safeguarding the environment, and maintaining environmental integrity all grow together. This research used a literature review and interview-based methodology (in which we interviewed more than 20 people representing SME operators, government officials, and banking staff) to examine SME finance, green banking, and demand and supply side constraints to cleaner/sustainable manufacturing in Pakistan’s leather and textile sectors. The research findings show that policy uncertainty and financial short-termism are economic impediments and obstacles that constitute a path-dependent, lock-in, non-linear mechanism. This study found a lack of tailored business advisory and financing for SMEs to learn about and invest in sustainable consumption and production (SCP). Furthermore, many banks in Pakistan also show a strong commitment to the expansion of the State Bank of Pakistan’s Green Banking Guidelines (GBGs). The results also highlight the high value of government assistance for businesses participating in green initiatives and incentives for banking institutions and private limited companies to support and invest in green practices.