Firm Productivity Research Articles

Firm retention and productivity of apprentices

Firm retention and productivity of apprentices

Financial participation, productivity and conflict in French firms

ABSTRACT Many studies show that financial participation – such as profit sharing and employee share ownership – have positive effects on productivity and social performance (reducing absence and labour turnover). A recent study shows that profit sharing and employee share ownership also reduce conflicts. The question then arises whether the profit sharing and employee share ownership continue to affect productivity directly, or whether their effects result entirely from reduced conflict? To answer this question, we use a sample of 2747 French firms in 2015 and 2016, to estimate a Cobb–Douglas production function. Profit sharing had a highly statistically significant, positive effect on productivity, but employee share ownership (alone) was not significant. These results are not sensitive to the inclusion of conflicts. To allow for selection of firms into profit sharing and/or employee share ownership, we use treatment effects models where our treatment uses combinations of the two. Our results show first that profit sharing alone, employee share ownership alone, and the two combined significantly raise productivity. These effects are even larger with treatment models, and they are also not sensitive to the inclusion of the conflict variables. The paper thus documents further evidence for the positive impact of financial participation on firm productivity independently of conflicts.

The Role of Strategic Cost Management in Enhancing Business Sustainability

The main objective of study is to test the relationship between strategic cost management and sustainability in the Sudanese food production firms. The main question of the study is there any relationship between strategic cost management and business sustainability? The study tested the hypotheses which reads as follows: (There is a statically significant relationship between strategic cost management and business sustainability). Questionnaires distributed to the respondents, and statistical package of social sciences (SPSS) used for data analysis. The study found out that, there is a statically significant relationship between strategic cost management and sustainability. Based on the study findings, the following recommendations are suggested: Accountants throughout the business should share responsibility for managing costs, firms should reuse and recycle wastes to create new business opportunities, firms should provides equipment to reduce the health and safety impact.

Market access and firm productivity: Evidence from a natural experiment

Based on China's Market Access Prohibition List, this paper explores the impact of market access reforms on firm productivity, employing data from Chinese listed companies from 2010 to 2019. To identify causality, we conduct a staggered DID estimation and find that provinces implementing the Market Access Prohibition List exhibit higher growth in productivity than those that do not. Moreover, this positive effect is more pronounced for non-SOEs and firms in less marketed regions. Reducing rent-seeking costs and promoting corporate innovation serve as mechanisms to facilitate firm productivity. This research sheds light on the economic consequences of liberalizing market access restrictions.

Firm productivity and manufacturing exports in transition economies: An institutional and trade geography perspective

Firm productivity and manufacturing exports in transition economies: An institutional and trade geography perspective

Employer-provided parking: Departure time choice, investment decision, and welfare effects

Employer-provided parking (EP) has become a prevalent way to reduce employees’ parking delays and late arrivals through offering them free or low-price parking spaces at the workplace. This paper explores the EP effects on employees’ trip scheduling, employer’s EP investment decision, and commercial parking operator’s pricing decision. An analytical trip scheduling equilibrium model is first presented to model the interaction between EP provision and employees’ departure time choices during morning commute. A profit maximization model incorporating the employee productivity is then developed to determine the employer’s optimal EP investment decision. A competitive game between employer’s investment decision and commercial parking operator’s parking pricing decision is analytically investigated, together with the effects of EP investment on social welfare. The results show that the EP investment can lead to a win-win situation with decreased employee commuting cost and increased firm production output; and the employer would like to provide only part of the employees with EP services. The competitive game solutions depend very much on the marginal costs of EP and commercial parking spaces. The EP investment with an excessively high commercial parking fee may hurt the society due to decreased social welfare.

Factors Affecting the Labor Productivity of Garment Firms in Nam Dinh Province, Vietnam

Under the impacts of the 4th Industrial Revolution, garment firms in Vietnam are facing various challenges, and improvement in their labor productivity is one of the important measures to overcome these challenges. This study, therefore, investigated the determinants of the labor productivity of garment firms in Nam Dinh province. The data used for this study were extracted from the Enterprise Survey Dataset in 2021, and descriptive statistics, comparative analysis, and the Cobb-Douglas function in logarithm form were the major methods employed for the study. The study findings underscored the positive impacts of fixed assets and business management costs, average payments to employees, exporting activities, and the utilization of internet resources on labor productivity. The study revealed that firm size, gender composition, and age of firm leaders do not significantly influence labor productivity, emphasizing the complexity and industry-specific nuances of these relationships. Based on the insights gained from the study, several strategic suggestions were proposed to improve the labor productivity of garment firms in Nam Dinh province in the future.

Impact of metaverse and corporate social responsibility on agriculture production and accounting firm performance output of nigerian firms

The study objective is to examine the impact of the metaverse and corporate social responsibility (CSR) on agriculture production and accounting firm performance output of Nigerian firms. The study ascertained that metaverse is described as a communal virtual shared environment that is produced when physically persistent virtual reality (VR) and virtually augmented physical reality collide while CSR assists firms in becoming socially responsible to the public, their stakeholders, and themselves. the study findings recognized that firms that effectively use technology to showcase their dedication to ethical CSR practices will likely draw investors who support the Sustainable Development Goals (SDGs). Thus, the production of agricultural products and the performance of accounting businesses within Nigerian firms are significantly impacted by both the metaverse and CSR. Their integration improves community ties, stimulates creativity, increases productivity, supports sustainability, and eventually results in a stronger economic framework within Nigeria's crucial agriculture industry. It was concluded in the study that the synergistic impact that improves the performance of accounting firms and agricultural production is produced when CSR initiatives are combined with metaverse technologies. Businesses can create creative solutions to address social concerns that farmers confront, including market access or teaching about sustainable practices, by utilizing the metaverse technology included in CSR frameworks

How does technology finance promote the high-quality development of firms? Evidence from China

By constructing the provincial technology finance development index for China from 2011 to 2021 and aligning it with data from Chinese A-share listed companies, this paper empirically examines the effect of technology finance on the high-quality development of enterprises. The findings indicate that technology finance substantially boosts a firm's total factor productivity by alleviating financing constraints and fostering innovation. Furthermore, in regions with advanced industrial structure upgrades, technology finance demonstrates a more pronounced positive impact on enhancing a firm's total factor productivity. Additionally, compared to the central and eastern provinces of China, the positive effect is more significant in the western region.

Improving Customer Experience Through Differentiation Capability: The Rise of Competition Among Africa’s Consumer Goods Companies

Competitive advantage is one of the essential components of customer satisfaction and business growth, but the COVID-19 pandemic has had a substantial influence on consumer behavior, while also giving rise to intense competition within the business environment in Africa, making competitive advantage and customer experience a challenge. Consequently, firms have been compelled to make strategic choices such as differentiation capability to navigate these challenges. The study therefore examines the effect of differentiation capability on the customer experience of selected consumer goods companies listed in Nigeria the biggest economy in Africa. The research adopted a cross-sectional survey method, and a total of 20 consumer products firms were identified and evaluated based on their capitalization criteria and continuous dividend payments. From this group, seven companies were chosen for further analysis. The sample size of 378 was determined using the Research Advisor Table, with a confidence level of 95% and a margin error of 5%. To address the issue of non-response, appropriate measures were taken, leading to the inclusion of an additional 113 respondents, representing 30% of the original sample. This adjustment resulted in a final sample size of 491. A total of 491 questionnaires were sent to the respondents, resulting in a response rate of 97.76%. The hypothesis was examined by regression analysis. The results of the study indicate that differentiation capability is an effective tool that is statistically significant and positive to customer experience (β =0.842, t = 29.782, p<0.05); The research findings indicate that applying differentiation capability in a firm helps attain a stronger competitive position and has a favorable impact on customer experience. This research, therefore recommends that there is a need for technology adoption to cut production costs and establish a durable competitive advantage.

How knowledge-based HRM practices affects aspects of innovation capability through knowledge management: the moderating role of innovative culture

Purpose Given the important of knowledge resource and human capital for improving innovation competence, the purpose of this study is to examine the influence of knowledge-based HRM practices on product and process innovation of firms via the mediating role of knowledge management capability and moderating role of innovative culture. Design/methodology/approach The paper used structural equation modeling and empirical data collected from 271 participants in 156 manufacturing and service firms to examine the level of how knowledge-based HRM practices and knowledge management affect product and process innovation under the moderating role of innovative culture. Findings The research findings confirm the mediating roles of knowledge management between knowledge-based HRM practices and two specific types of innovation namely product and process innovation. It also firstly reveals the positive moderating role of innovative culture in enhancing the effects of knowledge management on product innovation. The results underline the necessity of building an innovative climate and knowledge-based HRM practices to stimulate knowledge management for improving innovation capability of firms in the developing and emerging markets. Research limitations/implications The paper helps bring deeper insights to leaders and practitioners about the new knowledge-based approach that enhances innovation competence for organizations. Originality/value The paper significantly contributed to theoretical and practical initiatives on theory of HRM practices and knowledge management by showing different moderating and mediating mechanism thereby firms can follow to enhance innovation capability of firms in developing and emerging markets.

Impacts on Firm Productivity by Retaining Worker Knowledge and Capacity Through Disability Management Programs

Helping employees return to work following an injury or illness is a moral imperative, and usually a legal requirement, but is it economically beneficial to the firm? While there is intuitive awareness that disability management programs can be economically beneficial, particularly by retaining and resecuring the knowledge and capacity of employees, there is limited evidence to support that claim. The literature lacks insight into the logic and mechanisms through which disability management programs are economically beneficial. To provide such insight, this study undertakes an exploratory analysis of disability management programs concerning productivity as a firm-level performance factor. The data is sourced from a Canadian national database statistically representing more than 650,000 firms. The findings indicate there are differential impacts of disability management programs on firm productivity and this relationship is moderated by business strategy.

Productivity Growth and Workers’ Job Transitions: Evidence from Censal Microdata

Abstract We use administrative data for Chile to provide novel insights on the relationship between job transitions and productivity differentials and quantify how different groups contribute to aggregate reallocation. While on average workers move to more productive firms, almost half of transitions are ‘down the productivity ladder.’ Reallocation gains are mostly explained by a narrow subset of transitions: young, high-skilled workers generate the lion’s share of aggregate productivity gains. Workers with high turnover contribute proportionally the least. Therefore, while job reallocation yields a net benefit it hides massive and heterogeneous gross flows, with many appearing to add little to aggregate efficiency.

How Innovative Activities Impact Firm Performances in Latecomer Countries? An Analysis of Five Manufacturing Clusters from Indian Punjab

Firms engage in innovative activities, either to maintain the status quo or to catch up with the front-runners. Innovation is difficult to comprehend as it may include efforts to introduce something ‘new to the world’ or it may include simply the efforts to introduce something ‘new to the firm’. It is equally difficult to comprehend how the clustered firms located in latecomer countries are coping with the fast technological changes happening within the industry at the global level. Therefore, taking the case of five manufacturing clusters belonging to the Indian state of Punjab, an attempt is made to comprehend the impact of innovative activities on firm performances. We have done a survey for collecting the primary data for different variables reflecting four types of innovations and four types of performance indicators from the firms belonging to bicycles, hand tools & machine tools, pharmaceuticals, sports goods and textile clusters located in the north Indian state of Punjab. The focus on different clusters belonging to a particular region was done with intent to control the broad social, economic, cultural, political and historical aspects of the different clusters. Estimating the structural equation model with partial least-squares method, we found that the impact of process innovation, organizational innovation and marketing innovation is significant for firm innovative performances, production performance, market performance and financial performance. Specifically, we found that the introduction of new machines with advanced production systems, improvements in the manner of doing routine activities, improving product quality and modernization of human management systems within the firms have a positive impact on firm performance.

Do Supply Chain Characteristics Influence a Rival Firm's Responses to a Focal Firm's Product Preannouncements? A Competitive Dynamics Perspective

ABSTRACTThis study investigates how supply chain characteristics influence a rival firm's response to a focal firm's product preannouncements from a competitive dynamics perspective. Indeed, many firms recognize that it is critical to leverage their supply chains to gain a competitive advantage. We propose that common suppliers enhance a rival firm's awareness of the focal firm's credibility, reducing competitive responses. In addition, a rival firm's strong supplier inventory performance will motivate rivals to respond more aggressively, while the rival's supply–chain partnerships enhance its capability to react to the focal firm. Using panel data from S&P 1500 firms between 2007 and 2015, our findings provide support for our hypotheses, illustrating that supply chain characteristics can significantly influence a rival firm's responses to the focal firm's preannouncements. This research contributes to the competitive dynamics and supply chain management literature by highlighting the strategic role of supply chain characteristics in interfirm competition, offering practical insights for managers on leveraging supply chain resources to effectively navigate competitive threats.

The effect of impact investing on performance of private firms

This study empirically examines the effectiveness of impact investing of private firms in Slovenia. We use a sample of 7671 distinct private firms during the 2005–2020 period applying for and eventually receiving various government grants. This allows us to identify firms with the intent to impact-invest. We employ the staggered difference-in-difference (SDiD) approach recently proposed by Baker et al. (2022) and Athey and Imbens (2022) to assess the outcomes of these investments over time and across firms. SDiD allows for firms switching back and forth between receiving and not receiving grants and thus being a treated observation or a potential control observation respectively. Our results show that firms receiving an impact investing grant, on average, increase the number of employees in the subsequent period, generate higher cash flows from operations, increase value added per employee, make higher capital investments, have higher levels of exports, but grants hinder firm productivity in the short-run. PSM, the time-varying average treatment effects, and Heckman’s two-stage approach robustness analyses further support the conclusions that the impact investing grants successfully foster firm performance.

Broadband infrastructure expansion and labour income share: micro-evidence from Chinese industrial enterprises

ABSTRACT This study investigates the impact of broadband infrastructure on the labour share. We exploit the implementation of the ‘Broadband China Strategy’ (BCS) as an exogenous policy shock and use the staggered difference-in-differences framework with a panel dataset of Chinese industrial enterprises spanning 2011–2015. We find that the BCS leads to a significant reduction in the labour income share of firms in pilot cities compared with those in non-pilot cities, which remains robust after conducting various robustness checks. Rising market power and deepening capital are the two mechanisms underlying this effect. While our further analysis underscores significantly positive impact of broadband infrastructure on firm productivity and skilled labour structure, they do not highlight an elevated skill premium tied to broadband infrastructure. Heterogeneity analysis reveals that the effects are more pronounced among larger firms, industries with higher concentrations, and cities with higher innovation capacities. Overall, this study augments the existing literature on the firm-level determinants of labour share, providing a micro-level assessment of the labour market implications of broadband infrastructure.

Ecological risk and corporate sustainability: Examining ESG performance, risk management, and productivity

Environmental, social, and governance (ESG) performance is an essential indicator of sustainable corporate behaviour that balances short-term gains with long-term societal growth and ecological preservation. We scrutinise the influence of ESG performance on corporate risk-taking and the resulting impacts on firm productivity. Using data from Chinese listed firms from 2009 to 2020, our analysis indicates a significant negative relationship between corporate ESG performance and risk-taking, with a resultant increase in total factor productivity. Regional green innovation and environmental regulatory frameworks significantly augment the effects of ESG performance on risk management. The results extend the understanding of the intricate role of ESG commitments in risk management, and offer constructive insights for corporate decision-making and policy development aimed at confronting the environmental challenges of the 21st century.

The effect of digital transformation: Boosting productivity in the restaurant industry

This study investigated the effect of digital transformation on firm productivity in the restaurant industry. Based on the notion that digital transformation enables streamlined operations, this study hypothesized that digital transformation positively influences restaurant productivity in both front-of-house and back-of-house areas. Using text analysis, the annual reports of restaurant firms were analyzed to measure the level of digital transformation. The empirical findings revealed that digital transformation in both front-of-house and back-of-house areas has a positive effect on overall firm-level productivity in the restaurant industry. This suggests that using front-of-house technologies to assist customer processes and back-of-house technologies to streamline administrative and kitchen tasks can help overcome low productivity issues within restaurant firms. This study also demonstrated that digital transformation in front-of-house areas could maximize productivity for geographically diversified restaurant firms, while the positive effect of digital transformation on firm productivity was not significantly greater in quick-service restaurants than full-service restaurants.

How and Why does a Business-to-Business Firm's Corporate Social Responsibility Disclosure Impact its Dependence on its Major Customers and Major Suppliers?

Prior research has documented that a firm's disclosure of corporate social responsibility (CSR) makes it a more attractive business partner, boosting its sales. The authors extend this finding to business-to-business (B2B) firms. Using a regulatory change in China as a quasi-natural experiment, they demonstrate that a firm's disclosure of its CSR lowers by 2.1% the firm's dependence (for sales revenue) on its major customers but raises by 3.7% its dependence (for purchases) on its major suppliers. They further show that the firm's production efficiency (marketing efficiency) is a mechanism underlying the effect of CSR disclosure on dependence on major customers (suppliers). Next, they demonstrate that the CSR report's emphasis on the firm's supply chain partners weakens (strengthens) the effect on dependence on major customers (suppliers). The findings contribute to the multidisciplinary evidence on the B2B value of CSR disclosure, and the operations and marketing literature streams on determinants of supply-chain dependence.