Firms In Singapore Research Articles

Big Data Analytical Capabilities and Performance: The Mediating Role of Knowledge Management in IT Firms

This study aims to investigate the complex relationship between the capabilities of Big Data, knowledge management, organizational learning, and how they collectively impact the performance of small and medium-sized firms (SMEs) in Singapore's IT industry. This study aims to demonstrate the mediating role of organizational learning processes and knowledge management in the relationship between Big Data capabilities and company performance. To achieve this, a dataset of 300 organizations will be analyzed using simple random sampling and Structural Equation Modeling-Partial Least Squares (SEM-PLS). Extensive research has shown that knowledge management and organizational learning play a crucial role in maximizing the usefulness of Big Data capabilities and enhancing business performance. The results demonstrate the need of combining knowledge management and organizational learning with Big Data initiatives to create an environment that promotes performance enhancement. This integration enables a mutually beneficial influence that motivates businesses to produce exceptional results, particularly those working in the highly competitive technology industry. The study's conclusions emphasize the crucial role of knowledge management and organizational learning as intermediary roles for Big Data to fully realize its potential. The findings have significant ramifications for technology enterprises that are small or medium-sized. They propose a reevaluation of their strategic objectives that include a comprehensive approach to overseeing Big Data, knowledge, and learning. These aspects are crucial for a company's success in the modern digital environment.

Unveiling the impact of firm-characteristics on sustainable development goals disclosure: A cross-country study on non-financial companies in Asia

This study examines the practices of the UN Sustainable Development Goals (SDGs) in Asian countries with special reference to listed firms in China, India, Indonesia, Japan, Malaysia, Singapore, and Saudi Arabia. Further, it evaluates the impact of firms’ specific factors on SDGs practices. The original sample consists of 1462 companies for the 2018–2021 financial years. Data are extracted from the Refinitiv Eikon Database. One-way ANOVA and regression analysis are used to estimate the data. Results reveal that there is a significant difference in SDGs practices among the elected countries. Moreover, results reveal that Return on Assets (ROA), Return on Equity (ROE), market value added, leverage, and current ratio have a negative and significant impact on SDGs practices, while the Earnings per Share (EPS) has a positive and significant impact on SDGs practices. This research contributes to the existing literature by making a comparison among the Asian largest economies regarding the achievement of UN sustainable development goals.

Impact of Digital Technology Adoption on the Comparative Advantage of Architectural, Engineering, and Construction Firms in Singapore

Impact of Digital Technology Adoption on the Comparative Advantage of Architectural, Engineering, and Construction Firms in Singapore

Studying the governmental, industrial, and academic partnerships between incubation centers for furthering innovation: Evidence from biotechnology firms in Singapore

In Singapore, the number of incubation centers is rapidly increasing to fulfill the demands of the associated audience. These centers are vital in providing important facilities and capitals for new start-ups. This study aimed at identifying the governmental, industrial, and academic partnerships between incubation centers for furthering innovation in biotechnology firms in Singapore. For this purpose, semi-structured interviews were conducted with five employers from top management in biotechnology firms in Singapore. After the collection data, qualitative analysis was conducted in two steps (step 1: thematic analysis and step 2: word cloud analysis). The results obtained from this study showed that incubation centers play an important role in establishing early-stage biotech start-ups, promoting bio-entrepreneurship. It has also been observed that different challenges are faced during incubation process which include legal issues, infrastructure issues, strategic alliances issues and others. Moreover, the governmental, industrial, and academic partnerships between incubation centers have proven to be effective in promoting innovation processes in biotechnology firms.

Identifying the drawbacks of joint patents: An evaluation of IPR sharing in R&D alliances in Biotechnology Firms in Singapore

R&D alliances in the biotechnology industry have always been common in order to fulfill the demands and needs of the involved parties to carry out their innovation processes. The increasing trend of R&D alliances in the biotechnology industry in Singapore has also promoted IPR sharing in R&D alliances. This mechanism has promoted the concept of joint patents in this regard. Thus, the present study focused on the drawbacks of joint patents in R&D alliances in biotech firms in Singapore. For this purpose, semi-structured interviews were conducted with five employers from different biotech firms in Singapore. The collected data was then analyzed using NVivo software, and project map and tree maps were formulated for each research objective. The results obtained from this study showed that R&D alliances are effective in improving the financial and innovation performance of biotechnology firms. It has also been observed that IPR sharing in these alliances is effective in promoting technology and knowledge transfer. However, various drawbacks of joint patents were also observed, including financial issues, technology-related issues, and legal issues.

Covid-19 and firm performance in relation to level of income and investment - a study in Indonesia and Singapore

The purpose of this study is to empirically examine the impact of the covid-19 pandemic on firms’ performance. The impacts are also observed on firms in different industries, income and investment levels. This study employed sample of all non-financial firms in Indonesia and Singapore during the 2018-2020 period. The ordinary least square, fixed effect, and random effect models are adopted to test the hypotheses using the panel data. The results of the study showed that, generally, Covid-19 had a negative effect on firms’ performance in Indonesia and Singapore. The Indonesian firms with higher level of income got less severe Covid-19 effect on their performance. However, the level of investment strengthened the negative effect of Covid-19 on firm performance in both countries’ sample. In addition, the study documented that the effects of covid-19 were varied across the industry sectors.

Unlocking corporate social responsibility in smaller firms: Compliance, conviction, burden, or opportunity?

AbstractThere is a recognition that corporate social responsibility (CSR) by smaller firms could have greater social and environmental impacts if these engagements are meaningful. Small firms are players in the global eco‐system as they supply to larger global firms as subcontractors or suppliers. However, do they practice CSR with a conviction or as a compliance measure? Using stakeholder theory, in‐depth interviews were carried out with 31 firms in Singapore. We found that these firms in highly normative sectors practice CSR due to compliance in the interests of stakeholders. But in less‐normative sectors, where regulations and norms are minimal, a majority of firms practice CSR out of conviction. All firms acknowledged that their businesses have a responsibility toward society and our results further revealed the importance of careful stakeholder involvement in these firms.

Sustainable construction and the versatility of the quantity surveying profession in Singapore

PurposeThe changing role of quantity surveyors in the new paradigm of sustainable construction requires studies into new competencies and skills for the profession. The impact of sustainable construction on quantity surveying services, engagement and how they manage challenges provided an indication of the success indicators of the quantity surveying profession in meeting the sustainable construction needs.Design/methodology/approachA five-point Likert scale was developed from the list of quantity surveying firms in Singapore. An 85% response rate from 60 quantity surveying firms contacted in this study provided 51 responses. Descriptive statistics and factor analysis were employed to evaluate the findings.FindingsThe factor analysis categorised the drivers derived from the literature into awareness of sustainable construction, adversarial role on green costing; carbon cost planning; valuing a sustainable property; common knowledge of sustainable construction; and lack of experience in sustainable construction.Social implicationsThe research findings supported the idea of increased sustainable construction skills in quantity surveying education, research and training.Originality/valueThe dearth of quantity surveyors with sustainable construction experience must focus on quantity surveying professional bodies and higher education. The quantity surveying profession needs reskilling in green costing and carbon cost planning to meet the needs of sustainable construction.

FOREIGN FINANCING, EXCHANGE RATE EXPOSURES AND CORPORATE INVESTMENT IN SINGAPORE

We study the effect of exchange rate fluctuations on foreign corporate investment flows to Singaporean firms using a linear reduced-form empirical specification on data from the past decade. Overall, we find that the cost of debt capital falls on average when the Singapore dollar depreciates. Isolating the effect of exchange rates on US-denominated debt vis-a-vis interest rates and yield curve variables shows that an increase in the cost of foreign debt capital through exchange rate changes leads to lower investment, albeit only slightly and an order of magnitude less important than short-term government bond yields.

Benchmarking of Singapore maritime cluster: the role of cluster facilitators

PurposeThis article analyses the role of cluster facilitators in the Singapore maritime cluster. Singapore has been recognised for its pro-business policies and its ability to attract international shipping companies to set up the ship ownership headquarters and ship management activities in Singapore.Design/methodology/approachThe research is an empirical investigation on the approach for industrial cluster development of the Singapore maritime cluster, using the case study research methodology. The case study approach leverages on multiple sources of evidence from deep interviews (of 24 Singaporean firms and 13 Norwegian firms) related observations, documentation and archival records. As a means of contributing to the cluster renewal process, Singapore as the country embarks on the next stage of maritime cluster development, a benchmarking against the Norwegian Innovation Cluster has been incorporated.FindingsThe research findings reveals that Singapore is lacking in innovation activities that entails multi-firms collaborations and collaboration between multi-firms and research institutions. The existence of cluster organisation to facilitate collaborations between firms in the cluster and between firms in the cluster with research institutions is another contributing factor that are not institutionalised in the Singapore maritime cluster.Research limitations/implicationsThough the research is grounded primarily on the international business theory, particularly from firm- and country-specific advantages of location decisions, the economic geography theory and cluster theory also complement the theoretical grounding.Practical implicationsThe findings derived from this research aim to facilitate policy makers, maritime leaders and practitioners to develop effective courses of action in current and future maritime industry development.Originality/valueThe research provides value to maritime industry stakeholders, maritime leaders and policy makers in their firm positioning strategy. Thus, the research adds values to the maritime industry with similar country perspectives and firm values for developing policies.

Sustainability practices and the cost of debt: Evidence from ASEAN countries

Our study aims to examine the effect of sustainability practices, measured by sustainability performance and disclosure, on the cost of debt of ASEAN firms (in Indonesia, Malaysia, the Philippines, Singapore, and Thailand). There is a significant research gap where there is a scarcity of literature examining the impact of sustainability practices on the cost of debt, especially in Southeast Asia, and much of the existing literature still has conflicting results. We employed panel data analysis using generalized least square random effects regression, based on a sample of 1,443 observations of from 2004 to 2019. The analysis reveals mixed results that a ASEAN firm’s sustainability practices lowers its cost of debt. Albeit debtholders incorporate sustainability practices information (measured by disclosure) of ASEAN firms in their credit evaluation, debtholders do not find sustainability practices (measured by performance) to be significant. This is possibly due to some crucial information that are apparent in sustainability disclosure but not in sustainability performance scores. Moreover, the interaction between sustainability performance and sustainability disclosure shows complimentary relationship between the two. Lastly, by incorporating country sustainability characteristics, industry sensitivity, and corporate governance as moderating variables, we find the possibility of a prevailing substitute relationship between firm-level and country-level sustainability practices and immense expectations imposed by stakeholders to firms with environmentally harmful practices.

Firms’ Specific Determinants of Capital Structure: An Analysis into Construction Firms in Malaysia and Singapore

The study aims to examine the firm-specific factors such as firm size, profitability and asset tangibility in the capital structure decisions (leverage) on a sample of twenty construction firms in Malaysia and Singapore from 2009 to 2018, with 200 observations. The sample firms are chosen based on convenience sampling technique and the availability of the data. Prior studies documented inconclusive findings on the determinants of capital structure and different industries tend to reveal different patterns of relationship. In addition, the empirical evidence on comparative analysis between construction firms in Malaysia and Singapore is lacking. Hence, the objective of this study is to extend the prior work by investigating the impact of the determinants on capital structure on the construction firms in Malaysia and Singapore. The study uses panel data analysis to test the effectivity of trade-off, pecking order and agency cost theories of capital structure. The empirical findings reveal positive and significant association between firm size and capital structure for Singapore firms. Meanwhile, profitability and asset tangibility correlate negatively with capital structure. As for Malaysian firms, the three determinants exhibit insignificant association with the capital structure. The study only examines 10 construction firms in Malaysia and 10 construction firms in Singapore, therefore, the small sample size becomes the limitation of the study. Nevertheless, the findings of this study may contribute to the body of knowledge on the importance of some firm-specific determinants such as profitability, tangible assets, and firm size in order to determine the optimal level of capital structure for firms in these countries.

Empirical analysis of debt maturity, cash holdings and firm investment in developing economies

AbstractThis study investigates the potential simultaneous relationships among leverage, debt maturity and cash holdings and how these jointly affect financial policy and firms' investment activities in developing countries of Thailand, Indonesia and Singapore during the period 2006–2015. Using the two‐step system GMM estimator, our results show that high‐growth firms not only shorten debt maturity to reduce the underinvestment incentive, but also decrease leverage to reduce liquidity risk. We find evidence that the level of cash holdings is a key determinant of leverage in all countries and that debt policy and growth opportunities affect the investment decision of firms in Thailand and Singapore whereas cash policy is more important in Indonesia. These findings have significant implications for investment decisions in these economies.

Firms’ Specific Determinants of Capital Structure: An Analysis into Construction Firms in Malaysia and Singapore

The study aims to examine the firm-specific factors such as firm size, profitability and asset tangibility in the capital structure decisions (leverage) on a sample of twenty construction firms in Malaysia and Singapore from 2009 to 2018, with 200 observations. The sample firms are chosen based on convenience sampling technique and the availability of the data. Prior studies documented inconclusive findings on the determinants of capital structure and different industries tend to reveal different patterns of relationship. In addition, the empirical evidence on comparative analysis between construction firms in Malaysia and Singapore is lacking. Hence, the objective of this study is to extend the prior work by investigating the impact of the determinants on capital structure on the construction firms in Malaysia and Singapore. The study uses panel data analysis to test the effectivity of trade-off, pecking order and agency cost theories of capital structure. The empirical findings reveal positive and significant association between firm size and capital structure for Singapore firms. Meanwhile, profitability and asset tangibility correlate negatively with capital structure. As for Malaysian firms, the three determinants exhibit insignificant association with the capital structure. The study only examines 10 construction firms in Malaysia and 10 construction firms in Singapore, therefore, the small sample size becomes the limitation of the study. Nevertheless, the findings of this study may contribute to the body of knowledge on the importance of some firm-specific determinants such as profitability, tangible assets, and firm size in order to determine the optimal level of capital structure for firms in these countries.

Busy Boards, Firm Performance and Operating Risk

Using a sample of listed firms in Malaysia, Philippines, Singapore and Thailand, this article examines the association between busy board of directors and firm performance. We offer three results. First, we find that firm performance (measured by operating profitability and market-to-book equity) is negatively associated with busy boards. Second, we find that firms with busy boards have higher operating risk (measured by volatility of return on assets, volatility of stock returns and volatility of operating cash flow). Third, we find that the association between firm performance and busy boards is conditional on the firm’s life cycle stage. For firms in the growth stage, busy boards are beneficial to firm performance suggesting that the experience knowledge and reputation accumulated with multiple directorships help busy directors to more effectively advise these firms. In contrast, for firms in the maturity stage of their life cycle, busy boards are detrimental to firm performance suggesting the monitoring role of board is weakened by multiple directorships.

The role of directors with multiple board seats and earnings quality: A Singapore context

AbstractThis article explores whether multiple directorships has an influence on earnings management for Singaporean publicly listed firms. This article attempts to determine whether boards with multiple directorships are effective monitors and able deterrents of earnings management activities. Drawing on resource dependence theory, the results suggest that directors with multiple board seats will be able to tap on external resources for information, skills, and financial resources using their board connectedness. Data analysis is based on publicly listed firms on Singapore Stock Exchange (SSE) with a final pooled sample of 1,404 firm‐year observations from 2015 to 2018. Findings of this study show that with a higher level of multiple directorships, there is a significant negative relationship with the level of earnings management, where earnings management is measured by Dechow et al. (The Accounting Review, 1995, 70, 193–225) Modified Jones model and the Kothari et al. (Journal of Accounting and Economics, 2005, 39, 163–197) performance‐adjusted model. We also find that firms in Singapore that have a higher number of multiple directorships on its board, will have a lower level of tolerance on income‐increasing earnings manipulation. Notable secondary findings of this study include a significant negative relationship between the proportion of female directors on the board with the level of earnings management (income‐increasing manipulations). Additionally, it is found that the engagement of Big Four auditors has no significant relationship with the level of earnings management in the context of Singaporean firms. This study has significant implications and contributions to the theoretical applications and policy reforms, specifically pertaining to the Singapore Code of Corporate Governance on the issue of multiple directorships.

Shareholders' control rights, family ownership and the firm's leverage decisions

We investigate the association between controlling shareholders' ownership (CS_Own) and firms' leverage decisions in the Singaporean context. We examine whether the impact of ownership concentration on leverage differs across excess and lower control. We report that shareholders with excess control prefer leverage financing for an optimal capital structure and focus on value maximisation rather using leverage as a tool of minority shareholders' expropriation. Our analysis shows that firms capital structure significantly influences by the coalition of shareholders particularly decisions about leverage financing in addition to the firms' specific characteristics and institutional arrangements. Our empirical evidence shows that controlling shareholders with a lower fraction of equity are more concerned about limited holding thus prefer leverage over equity financing to inflate their equity stake to protect them from the potential takeovers and mergers. We report that capital structure decisions in Singapore are linked with the trade-off between the controlling shareholders' target of mitigating firm risk and their non-dilution entrenchment needs. Further, we found an inverted U-shaped association between control ownership and leverage financing. In terms of moderating effect of family-controlled ownership, our findings exhibit that leverage financing is less pronounced for family firms in Singapore due to the under-diversified investment portfolio.

Diffusion of Building Information Modeling in Building Projects and Firms in Singapore

Building information modeling (BIM) implementation has been mandated in building projects in Singapore, but a wider adoption is still desired. This study aims to investigate the factors influencing BIM diffusion and examine how the factors influence firms with different project roles, firm sizes, and BIM implementation experience. The results of a pilot study, a questionnaire survey with 89 professionals, and five post-survey interviews showed that hindrances related to inadequate multi-party collaboration (whether formal or informal), conservative mindset, limited skills, costly infrastructure and training, and multi-discipline model integration were the most influential, whereas drivers associated with project leadership team’s strategic consensus, multi-disciplinary design coordination, training, and government regulations were top-ranked. Subgroup analyses between pairs of firms with different characteristics revealed that while construction firms and less experienced stakeholders tended to underestimate BIM implementation difficulties, small-medium contractors might underestimate relevant benefits. The findings and managerial recommendations help different types of firms prioritize resources to overcome hindrances, seize opportunities (such as gaining a competitive edge from BIM practical experience), and obtain support from workers executing BIM daily. With major stakeholders’ recognition and implementation, BIM can be successfully diffused in building projects and firms. The Singapore government and other countries can refer to this study when further issuing BIM diffusion policies.

CEO OVERCONFIDENCE, ESG DISCLOSURE, AND FIRM RISK

Environmental, Social, and Governance (ESG) has increasingly attracted the attention of firms and stakeholders. The purpose of this study is to examine whether the mediating role of ESG disclosure has a negative effect on CEO overconfidence and firm risk, especially based on investors' perspectives. Many studies on ESG disclosure were conducted in Europe and America. Most ESG disclosures are measured using manual checklist based on annual reports or firm websites. By using panel dataset of 225 manufacturing firms in Indonesia, Malaysia, the Philippines, Singapore and Thailand from 2012-2016 obtained from Thomson Reuters’ ESG score, the research shows that CEO overconfidence has no negative direct effect on firm risk but the role of ESG disclosure as a mediating variable has a negative effect on CEO overconfidence and firm risk. CEO overconfidence has a positive effect on ESG disclo­sure and ESG disclosure has a negative effect on firm risk. CEO with overconfidence characteristics will make the best decisions to disclose ESG in order to increase firm value and reduce firm risk.

Thriving on waves of change: Case study of an agile digital business in Singapore

Much has been written and said about the need to be agile for businesses to transform themselves and adapt in the dynamic digital economy. This case study traces the history of a Singaporean IT firm from its inception in 1993 to 2019. In particular, this case study illustrates how agility has enabled the company to grow from a start-up to be among the leading IT firms in Singapore albeit operating in the dynamic IT industry that has grown increasingly volatile with the emergence of disruptive digital technology and innovation. Apart from drawing insights on organizational agility and adaptation, this case study also provides illustration on the theme of entrepreneurship and leadership as manifested through the Founder and Chief Executive Officer.