Influence Of Business Environment Research Articles

A Study on the Influence of Business Environment on Small Industries in Uttar Pradesh

Particularly in regions with diverse economic landscapes such as Uttar Pradesh, the business environment stands as a crucial determinant for the sustainability and success of small enterprises. The objective of this research is to investigate the impact of the legal framework, economic conditions, and socio-cultural factors on shaping the business environment in Uttar Pradesh, with a specific focus on small businesses. A comprehensive understanding of the intricate dynamics within Uttar Pradesh's small industry sector and the broader business climate is essential for policymakers, business owners, and stakeholders. This knowledge can empower them to implement targeted interventions and initiatives, fostering a conducive environment for small businesses in the area. The study delves into the role of the business environment in contributing to Uttar Pradesh's $5 trillion share in India's GDP. Various aspects, including political stability, market dynamics, global integration, human capital, infrastructure development, regulatory adjustments, and environmental sustainability, are examined to elucidate their significance in cultivating a favourable business climate.

The Influence of Business Environment On Entrepreneurial Behavior Through Motivation and Competitive Advantage as Mediators

This study aims to determine whether entrepreneurial motivation and competitive advantage mediate the influence of the business environment on entrepreneurial behavior. The method used in this research is survey. The data analysis technique used is to use a parallel multiple mediator model. The sample in this study were all owners of digital-based SME in Majalengka Regency, totalling 43 SME. Based on the results of the study, it shows that the business environment has a positive effect on entrepreneurial behavior. Entrepreneurial motivation mediates the effect of business environment on entrepreneurial behavior, it is known that the results of testing and analysisshow that the business environment is significant to entrepreneurial behavior, after being mediated by entrepreneurial motivation. Competitive advantage mediates the influence of the business environment on entrepreneurial behavior, it is known that the results of testing and analysis show that the business environment is significant to entrepreneurial behavior, after being mediated by competitive advantage. So it can be concluded that this model is included in partial mediation.

Perceived Influence of Business Environment on Small and Medium Scale Enterprises Success in Nigeria

The study examined the perceived influence of business environment on the success of small and medium-scale enterprises in Osun State, Nigeria. The main purpose of the study is to determine the influence of business environment on the success of small and medium-scale enterprises (SMEs). The study adopted descriptive survey research design. Two research questions and two hypotheses guided the study. The population of the study comprised all registered small and medium scale enterprises in Osun State. Two hundred and fifty-five (255) owners/managers of small and medium-scale enterprises were sampled for the study through, proportionate, stratified and systematic random sampling techniques. The instrument for data collection was “Perceived Influence of Business Environment on the Success of SMEs” Questionnaire (PIBESSMEQ). A reliability co-efficient of 0.70 was obtained using Cronbach Alpha. Mean and standard deviation was used to answer the research questions while hypotheses were tested using analysis of variance (ANOVA) at 0.05 level of significance. Findings of the study revealed that business environment influenced the success of SMES to a high extent. Also, the study revealed that no significant difference existed in the influence of business environment on SMEs success in term of their location. Based on the findings, it was concluded that SMEs’ success could be better guaranteed with sufficient knowledge of the business environment. The study among others recommended that owners/managers of SMEs should always endeavor to increase their knowledge and skills to a maximum level in order to surmount challenges relating to business environment.

Business environmental factors affecting the efficiency of foreign direct investment emterprises in agriculture in VietNam

This study investigates potential impact of business environment factors toward investment efficiency of foreign direct investment (FDI) enterprises with the context of Vietnamese agriculture sector. The authors combined qualitative research methods (expert interviews) to develop research and quantitative models (EFA, CFA and SEM) to test research hypotheses. The findings revealed a direct influence of business environment among a sample of 68 enterprises, including: (1) Macro environment; (2) Intra-sectorial factors and (3) Inter-sectorial factors on business performance (profit, cost, export revenue, market share). In conclusion, some implications are proposed for more appropriate mechanisms and policies to improve the efficiency of business environment and at the same time increase the attraction of FDI for the Vietnamese agriculture.

Keberhasilan Usaha Industri Mikro Kecil Menengah Makanan Ringan di Priangan Barat Pendekatan Lingkungan Usaha, Manajemen Usaha, Kreativitas, dan Inovasi

The development of the micro, small, medium industry has rapid growth and development because it is able to survive amid the conditions of the economic crisis. The objectives of this study were: 1) to analyze the influence of business environment, business management and creativity and innovation on business success simultaneously and partially in West Priangan; 2) Factors driving and inhibiting business success in West Priangan. Survey research methods and forms of descriptive and verification research. The research object of snack MSMI in West Priangan was 150 respondents. Sampling using random sampling techniques is based on areas that have the potential for industrial development (industrial centers) consisting of three regions, namely Bogor, Sukabumi and Cianjur. Then the questionnaire was tested with validity and reliability tests. The results of the test data were declared valid and reliable and carried out a classic assumption test for use in the regression test. The results showed that simultaneously the business environment, business management and creativity and innovation had a positive and significant effect on the success of business in West Priangan. Partially the business environment, business management and creativity have a positive and significant effect on business success. Innovation does not have a positive and significant effect on business success. Meanwhile, the driving factors for business success are the business environment, business management and creativity, and innovation is an inhibiting factor for business success.

Empirical Analysis on the Influence of Business Environment on Foreign Direct Investment Inflow Based on the Panel Data on 26 Countries

With the intensification of global competition and development of investment theories, foreign direct investment (FDI) is no longer solely affected by economic factors. Many noneconomic factors, such as policies and institution, now play an important role in FDI inflow. As a composite indicator, business environment has attracted a growing attention from investors. From theoretical and empirical perspectives, this paper quantifies and qualifies the influence of business environment over the FDI under different conditions. The impact mechanism of business environment on the FDI was refined by decomposing business environment into multiple subfactors, and considering various factors of different economies, such as natural resources (NR), technological resources (TR), and political stability (PS). An empirical analysis was conducted on the panel data of 26 countries in 2005-2018. The results show that: the host country can attract more FDI inflow by improving business environment, NR, TR, and PS; excessively high NR and TR, to a certain extent, suppress the promotion effect of business environment on FDI; four subfactors of business environment, namely, the protection of small and medium investor (PI), cross-border trade (CT), electricity supply (ES), and insolvency (IN), have relatively high promotion effects on FDI inflow. The research results enrich the theories on FDI and business environment, and provide a reference for the design of innovative polices.

Influence of business environment on small and medium scale enterperises in Osun State

Influence of business environment on small and medium scale enterperises in Osun State

The Effect of Business Environment and Innovation Spirit on Competitive Advantages and Implications on Marketing Performance of Ulos Weaving in North Sumatra

The purpose of this study is to obtain empirical evidence and find clarity of phenomena and conclusions about the influence of business environment and innovation spirit to competitive advantage and its implications on marketing performance. This research uses descriptive and verification method, with data analysis technique of Structural Equation Modeling (SEM) LISREL program, that is collecting, presenting, analyzing, doing model measurement, and hypothesis testing, and making conclusion and suggestion. The population is owner / leader of SMI weaving ulos which is targeted group by Industry and Trade Office of North Sumatera Province, while sample selection is done proportional cluster stratified random sampling and sample determination by Slovin formula. The results of this study showed that the business environment, innovation spirit, competitive advantage, and overall marketing performance are in good category. Similarly, the verify analysis proves empirically that (1) the business environment and innovation spirit significantly and positively affect the simultaneous competitive advantage, where the innovation spirit has a dominant influence, (2) the business environment has a significant and positive influence on the competitive advantage, (3) innovation spirit significantly and positively influence to competitive advantage, (4) competitive advantage significantly and positively influence to marketing performance.

The Influence of Business Environment and Capabilities on Transient Competitive Advantage and Their implications for Business Performance of Micro, Small and Medium Enterprises in Indonesia

Micro, small and medium enterprises (MSME – Indonesian: UMKM – Usaha Micro, Kecil dan Menengah) are the key to increase growth, create employment, act as the source of people’s income, to fulfil the need of goods and services, to increase the added values which eventually influence the economic growth. This research is aimed to explain how business environment and capability influence the competitive advantage which plays an important role that determines the business performance of MSME. The total sample able to be collected with web-based design is 56 MSME/UMKM from all over Indonesia. The analysis technique used is structural equation modeling (SEM). The study proves that business environment does not significantly influence the business performance of MSME/UMKM. However, this variable contributes significant indirect influence with a greater level than its direct influence. The finding indicates that improvement in business environment will be able to boost the business performance if it is combined with the improvement in competitive advantage of the MSME/UMKM.

Moderating Business Environment Influence on Individual Entrepreneurial Competence and Entrepreneurial Orientation Toward Business Performance

Objective - This article aims to analyze the influence of moderating hostile and dynamic business environment variables on Individual Entrepreneurial Competence (IEC) and Entrepreneurial Orientation (EO) on Business Performance. Methodology/Technique - This study is conducted on Credit Union (microfinance), especially in West Kalimantan, using the Structural Equation Model technique. Findings - The results of the analysis show that the Individual Entrepreneurial Competence variables and Entrepreneurial Orientation have a positive influence on Business Performance. Meanwhile, Individual Entrepreneurial Competence and Entrepreneurial Orientation have a positive and greater influence on Business Performance in hostile environments. On the other hand, Individual Entrepreneurial Competence has a positive effect on Business Performance, but tend to be weak on dynamic environment. The Entrepreneurial Orientation has a positive and stronger impact on Business Performance in a dynamic environment. Novelty - The study helps to develop business environment for nurturing entrepreneurship. Type of Paper: Empirical Keywords: Individual Entrepreneurial Competence; Entrepreneurial Orientation; Hostile versus Dynamic; Business Performance. JEL Classification: I21, L25, L26.

Determining the Relation between the Business Environment and Companies Solvency Factors in the Post – crisis Period

In scientific literature, there aren’t clearly enough formulated reasons behind causing the solvency component elements changes that would help all companies to prepare for possible insolvency changes. Methods of analysis evaluate following variables: corporate income flows, liabilities amounts, short-term and long-term changes in assets, capital amount, their relative indicators. However, little attention is given to external environmental factors affecting the development of these indicators. The aim of this research is to establish the impact of business environmental factors for companies’ solvency indicators. The business environmental impact assessment seeks to determine just the external – macroeconomic business environment influence for companies’ solvency changes. After identifying the key changes of business environment factors and basic companies’ solvency trends, variables were calculated the dependency was expressed in Pearson correlation coefficients. The evaluation of environmental factors, the main solvency indicators in the sector of warehousing and transport services companies and of the correlation relation determined a statistically significant relationship between companies’ solvency and gross domestic product, inflation, the tax burden, shadow economy, corruption control, number of companies in the sector and interest rate changes. The study identified following dependencies: interest rates, the growth of inflation reduces the debt-to equity ratio, the decrease of the extent of shadow economy and the growth of corruption control increases companies’ debt ratio value, an increased number of companies reduces companies’ debt ratio values. The received statistical relationships and their evaluation of the reliability confirmed the study hypothesis about the statistical significance of the business environment economic factor effect for companies’ solvency changes.

Business Environment and Economic Growth in the European Union Countries: What Can Be Explained for the Convergence?

Objective: The objective of this article is to present the results of research on the economic growth and business environment of the European Union countries in the context of convergence processes. Additionally, the article presents the results of investigation on the impact of business environment on economic growth. Research Design & Methods: Methods applied in the study are analysis and synthesis of the literature on the subject, as well as quantitative tools: descriptive statistics and multivariate regression. The analysis includes 28 countries of the European Union in the years 2000-2016 for economic growth and 2010-2018 for business environment. Findings: Changes in the business environment across the European Union, as well as upward trends indicate a gradual approach of member economies in these areas. A quantitative analysis of the dependence of growth on business environment has also been confirmed. Implications & Recommendations: The results can be important for policy makers. Demonstrating a positive link between business environment and economic growth should be viewed as a guideline for reforms, changes and regulatory improvements. This elaboration can be treated as a preliminary study on interrelation between business environment and economic growth in the context of economic convergence. Further research on the influence of business environment on economic convergence within the European Union countries is highly recommended. Contribution & Value Added: The originality of this work lies in the connection of two different research problems: economic growth and business environment, as well as the study of links between these two areas.

Examining the influence of business environment on socio-economic performance of informal microenterprises

Purpose– This study realize that the relationships between business environment and firm performance in context of small- and medium-sized enterprises and large organizations is well understood and focused, but less research has been done on microenterprises, especially in informal sector. The purpose of this paper is to examine these relationships.Design/methodology/approach– A mixed method research design was used. In the field study, data were obtained from 14 participants via one-to-one personal interview. Content analysis was applied to extract, classify, and cross-examine of the data. In the quantitative approach, questionnaire was developed and data were collected from 438 informal microenterprises (IMs) owners. The data were analysed using the partial least square structural equation modelling.Findings– Results from this field study and survey recognized these relationships and vibrates well with the existing literature and establish the hypothesis.Practical implications– In order to create more favourable environment and ensure the performance, the policy makers, professional bodies could formulate decent requirements for IMs to have a code of business practices and socio-economic performance.Originality/value– This study provides a first step towards business environment and firm performance in context IMs and makes several contributions to the literature.

------ (Analysis of Influence of Business Environment on Development of Real Estate Market)

Russian Abstract: Статья посвящена выявлению и изучению влияния факторов бизнес-среды на развитие российского рынка жилой недвижимости. Актуальность данной темы объясняется следующим. Исследования рынков недвижимости базировались, в основном, на анализе вторичной информации, возможности маркетинговых инструментов анализа влияния бизнес-среды на поведение субъектов рынка недвижимости практически не использовались. В работе предлагается концептуальная модель, позволяющая определить ключевые факторы бизнес-среды и степень влияния этих факторов на развитие рынка жилой недвижимости. English Abstract: Article is devoted to the identification and study of the influence factors of the business environment on the development of the Russian real estate market. Relevance of the topic is explained as follows. Property market research based mainly on the analysis of secondary data, the possibility of marketing tools analyze the impact of the business environment on the behavior of market actors estate were not used. The paper proposes a conceptual model that allows to identify the key factors of the business environment and the impact of these factors on the development of residential real estate market.

The Impact of Foreign Direct Investment on Economic Growth in Nigeria.

This study investigates the impact of FDI on economic growth. Quarterly data is used and covers the period 1980Q1-2009Q4. Endogenous growth model is employed for the study with emphases on the impact of FDI inflow into agriculture, manufacturing and telecommunication sectors in Nigeria. However, the study also examines the direction of causality between FDI inflow into these sectors and economic growth. In addition, the study further investigate the influence of business environment - political instability (PI), corruption (CRPINDX), institution/legal framework (LEGFRWK) proxied by FH, 2001, suggested by work of Sala-i-Martin (1997) and Barro and Lee (1994) and macroeconomic indicators such as inflation (INF), real interest rate (RINTR) and real exchange rate (RER) on the inflow of FDI. The empirical evidence shows that FDI into manufacturing and telecommunication sector has positive impact on economic growth in Nigeria while FDI into agricultural sector impacted on economic growth negatively. The findings on granger causality suggest that FDI into agriculture, manufacturing and telecommunication sector have a unidirectional relationship with economic growth in Nigeria. Institution or legal framework has positive and significant influence on the inflow of FDI, hence suggesting the need for strong legal framework for property right protection could serve as an incentive to attract more foreign investors. Political instability and real exchange rate significantly and negatively influences the inflow of FDI vis-a-vis signifying the importance of friendly business environment in

Institutional constraints for outsourcing services in Russia

PurposeThe purpose of this paper is to show how the institutional context in an emerging economy, Russia, moderates the “do or buy” decision of international firms operating in the country. This is examined through the influence of institutional voids on transaction costs and definition of core competencies.Design/methodology/approachThe paper adopts a qualitative research approach, where the empirical data are based on interviews with executives of eight Finnish companies, which have invested in Russia's second largest city, St Petersburg.FindingsThe key findings include first, that the formal and informal constraints in the Russian business environment influence outsourcing decisions in terms of increased transaction costs, and in terms of resources needed to be competitive. Second, the authors show that, due to these constraints, a firm in Russia may need to insource functions that it would otherwise outsource as non‐core activities and invest in building of competencies specific to the Russian business environment.Research limitations/implicationsThe limitation of the study is its focus on two countries. However, the analytical framework proposed for examining influence of institutions on outsourcing strategies is applicable to other country contexts.Practical implicationsThis paper shows how the institutional constraints of the host country, reflecting in this case as underdeveloped market for business services and complex state regulation, can result in a significant need for adaptation of a foreign firm's business processes. This must be taken into account in business planning and allocation of resources to the Russian operations.Originality/valueThe paper provides researchers and practitioners with new information about a little‐studied topic by showing concrete ways of how institutions influence outsourcing strategies in Russia.

Contextual variables of open innovation paradigm in the business environment of Slovenian companies

This article addresses the current condition of Slovenian business environment and its support to open innovation. By carrying out qualitative empirical research, we investigate to what extent determinants from internal, narrower and broader external business environment influence open innovation in Slovenian companies . Several support mechanisms were established to create friendlier environment for open innovation. Our study indicates that if Slovenia wants to be successful on the long run, supportive environment cannot and should not be based solely on government financial support, but must also contain other elements that affect technological development, meaning: 1) organizational culture, values, reward system; 2) legislation; 3) tax and social contributions; 4) bureaucratic barriers; 5) human resources; and 6) favorable bank loans, bank guarantees, venture capital, etc. The paper concludes with implications for managers and policy makers, outlining several promising areas for future research.

The Model of Sustainable Performance of Small and Medium-sized Enterprise

An enterprise as a core of any economic system has a great impact on sustainable development of a state or region. Small and medium-sized enterprises (SMEs) are socially and economically important for their national economies, since they represent about 99 per cent of all active enterprises in the European Union. The importance of SMEs to the EU economy indicates the need to assess their performance in order to find appropriate performance measurement and management tools. These issues become very topical during the period of global economic recession. Making profit is most often mentioned as an integral goal of any enterprise. However, it should be emphasized that profit is the result of a comprehensive process of the creation of added value. This process can be managed by using a system approach. It means that the value maximization opportunities depend on harmonious and purposeful interactions between enterprise separate processes or functional units. Development of any enterprise is related to the future opportunities, risks and uncertainty. Therefore, profit making ability of an enterprise depends on managers’ skills to apply modern business management methods and tools. The more mature are the business activities, the higher is the probability of an enterprise to face failure. Long-term existence of an enterprise depends on its ability to utilize resources efficiently and to create profit, taking into consideration the influence of business environment and its related factors. While measuring the performance of an enterprise, the company’s life cycle concept should be considered as well. The problems within an enterprise arise from improper activities, incompetence or even negligence. Performance measurement system can significantly influence and support SMEs’ organizational development. Effectiveness and efficiency shall be manifested in all business processes of an enterprise. Performance evaluation should be based on the criteria associated to the field of activities of a particular enterprise and particular manufacturing technology. The system should be comprised of measures, related not only to operations, but also to organization and management of the enterprise. The goal of the research is, studying the performance of SMEs and the factors affecting performance achieving, to propose performance measurement concept encouraging the sustainable development of SMEs and to suggest performance evaluation approach.http://dx.doi.org/10.5755/j01.ee.22.5.968

Managing customer perceptions of the business environment for competitive advantage

How customer perceptions of the business environment influence customer behaviours is an under-researched area. We conceptualise customer behaviour as a response to perceptions of the business environment and categorise these as either functional or dysfunctional depending upon the potential impact on the organisation. Bendapudi and Berry (1997) propose a framework that links specific customer behaviours to either the presence of trust or perceived dependence. However, we argue that some business environments may be more likely to result in functional or dysfunctional customer behaviours as a result of greater perceived dependency, irrespective of whether customers trust their service providers, or business partners. The findings of a qualitative study of legal service clients are used to propose the need to contextualise the Bendapudi and Berry framework to enhance its applicability to practice. We posit practical steps for managing customer perceptions to reduce the negative impact of customer behaviours associated with dependence on provider organisations.

Model Integrasi Lingkungan Bisnis – Strategi Operasi – Kinerja Perusahaan, Studi Empiris pada Perusahaan Manufaktur Menengah Besar di Tasikmalaya

This research is to develop a theoretical model about performance and to test the influence of business environment in determining operations strategy and to improve company performance by empirical test in high medium manufacturing company in Tasikmalaya.This is explanatory research. The method of the research is survey. The object of the research consists of business environment, operations strategy and performance. The research location is in Tasikmalaya City and Regency involving the high medium manufacturing companies. The research subject is CEO. The research population is 192 high medium manufacturing companies in Tasikmalaya. The research sample is 110 companies determined by Structural Equation Model, as the method of analysing data, which is operated by AMOS. The conclusions of the research are: (1) Business environment sets a significant role in determining operations strategy choice, so to decide the competitive company priority needs the right identified scanning environment. (2) The success of the company in uncertainty business condition will be reached if the company is able to focus itself in cost strategy, quality strategy and delivery strategy. Keywords: business environment, operations strategy, performance and balance score card