Firm Survival Research Articles

Applying the Shapley value to the tuna fishery

The tuna fishing sector has faced important regulatory restrictions for years, mainly based on the number of fish aggregating devices (FADs) allowed per vessel, which has threatened the survival of many tuna firms. Various academics have studied this issue, proposing various solutions based on the reassignment and sharing of FADs. However, previous research has focused primarily on the use of FADs and their implications, rather than actually helping to optimize the tuna fleet’s fishing activity, and possibly for this reason, none of these proposals has impacted current fishing practices. In light of this situation, our research proposes a more equitable approach: we have modeled the tuna vessel problem as a cooperative game, reallocating FADs among vessels, studying the Shapley value, and comparing the results achieved with previous proposals. Although our approach is fairly standard in the literature, it is a novel solution to a deep-rooted problem in this sector that also leads to a significant reduction in CO2 emissions associated with fuel consumption. In fact, the application of our theoretical results to real data shows that there is not only a significant scope for improvement for firms and their vessels –both gain more revenue– but also a beneficial contribution to the environment in terms of reduced fuel consumption.

Do business strategies affect firms' survival during the COVID-19 pandemic? A global perspective

PurposeThis study examines the survival probability of the firms during the COVID-19 pandemic and identifies the effects of pandemic-era business strategies on firm survival across sectors and sizes.Design/methodology/approachThis study combines World Bank Enterprise Survey data with three consecutive follow-up COVID-19 survey data. The COVID-19 surveys are the follow-up surveys of WBES, and they are done at different points of time during the pandemic. Both WBES and COVID-19 surveys follow the same sampling methods, and the data are merged based on the unique id number of the firms. The data covers 12,551 firms from 21 countries in different regions such as Africa, Latin America, Central Asia and the Middle East. The study applies Kaplan–Meier estimate to analyze the survival probability of the firms across sectors and sizes. The study then uses Cox non-parametric regression model to identify the effect of business strategies on the survival of the firms during the pandemic. The robustness of the Cox model is checked using the multilevel parametric regression model.FindingsThe study's findings suggest that a firm's survival probability decreases during the pandemic era. Manufacturing firms have a higher survival probability than service firms, whereas SMEs have a higher survival probability than large firms. During the pandemic period, business strategies significantly boost the probability of firm survival, and their impacts differ among firm sectors and sizes. Several firm-specific factors affect firm survival in different magnitudes and signs. Except in a few cases, the findings also indicate that one strategy positively moderates the influence of another strategy on firm survival during a pandemic.Originality/valueCOVID-19 pandemic has drastically affected the business across the globe. Firms adopted new business processes and strategies to face the challenges created by the pandemic. The critical research question is whether these pandemic-era business strategies ensure firms' survival. This study attempts to identify the effects of these business strategies on firms' survival, focusing on a comprehensive firm-level data set that includes firms from different sectors and sizes of countries from various regions.

Does the Tax Cuts Policy Lower Firm Survival Risk? Evidence from China

This paper examines the effect of tax cuts policy on firm survival risk. We analyze a panel data of China’s listed companies over the period 20082021 based on two different techniques: Kaplan-Meier survival estimator and the Cox proportional hazards model. Our findings reveal that the tax cuts policy has positive and significant effect on improving firms’ survival probabilities. Moreover, compared with the income tax cuts, the value-added tax cuts play a more effective role on improving firms’ survival probability. By dividing firm locations into different regions, we also find that the tax cuts policy exerts a positive influence on firms’ survival probabilities in eastern region, while the positive effect in the central and western regions is relatively weaker. From the perspective of profitability heterogeneity, the results show that the beneficial effect from tax cuts policy on firm survival is more pronounced for firms with weaker profitability.

Private Equity Industry in Africa: Firm Survival and Growth

Private Equity Industry in Africa: Firm Survival and Growth

Pandemic Crisis and Firm Survival: Evidence from Italy

Pandemic Crisis and Firm Survival: Evidence from Italy

Knowledge and New Firm Survival in Emerging Countries: Evidence from Vietnamese Manufacturing Sector

Knowledge and New Firm Survival in Emerging Countries: Evidence from Vietnamese Manufacturing Sector

Access to Credit and Firm Survival During the COVID-19 Crisis: The Case of Zero-Bank-Debt Firms

Access to Credit and Firm Survival During the COVID-19 Crisis: The Case of Zero-Bank-Debt Firms

Revolutionary innovation and the incumbent business: Patterns of relationship and coping strategies

Revolutionary innovations bring about drastically new ways of doing business that potentially challenge the dominance and even the survival of many powerful incumbent firms. The choice of the incumbent firms’ strategies in coping with a revolutionary innovation depends on the specific patterns of relationship between the revolutionary innovation and the incumbent firms’ core business, be it substitutive, complementary, or parallel . In the situation of a substitutive relationship, the incumbent firms could exit from the incumbent business through swift divesting or gradual harvesting before it is eventually displaced or eroded. In a complementary relationship, the incumbents could absorb the innovation into the incumbent business by embracing the innovation that enables them to add entirely new functions to their incumbent business or assimilating the innovation to enhance the value of the incumbent business. In a parallel relationship, the revolutionary innovation either results in the retrenchment of the incumbent business or leaves it undisturbed, which, respectively, calls for specializing in certain niches of the incumbent business or further solidifying the incumbent business. In addition to the above coping strategies focusing primarily on the incumbent business, the incumbent firms also need to deal simultaneously with the new businesses inspired and propelled by the revolutionary innovation. They could fend off the potential disruptions of the innovation by engaging in a competitive fight in the market domain or a nonmarket fight in the sociopolitical domain. They could also enter those new businesses through greenfield entry or merger and acquisition .

Distinguished Competency and Efficacy of Working Capital Management Ensuing Firm Survival, Liquidity, Solvency and Profitability: A Study on Automotive Industry

Limited research interest in studying working capital management process, is found in the literature. However, working capital management has been the most crucial determinant factor for any industry’s survival, liquidity, solvency and profitability. Therefore, to tackle efficiently liquidity and profitability trade –off, all industries are compelled to improvise their working capital management strategies. Continuation of working capital management process at optimal level, expedites firm's value creation and also facilitates to design framework in smoothening financial constraints so as to make effective usages of firm’s resources. The paper argues that automotive industry occupies a significant proportion of global economy. Therefore, an effort has been made to undertake an in-depth study on the industry. The study besides identifying the industry leader, explores diverse techniques to advance comparative study on the industry efficiency level in managing working capital process. The research outcome facilitates investors to choose the most commendable automotive companies for investments.

Applying Fuzzy Cognitive Map Based on Structural Equation Modeling for Perceiving the Service Quality and Attributes in Service Industry

<p>This study explores why the business firm survival due to provide the service quality and perceived values since servicescape, waiting experiences and food quality are three major factors that affect customer intentions. Therefore, the most examined restaurant attributes are included physical setting and environment, wait time, and food and service quality in this study. Servicescape positively effects perceived service quality. However, service quality is an overall judgment that a based on the perception of the object in consumer process of customer and can be seen as the result of customer evaluation. Therefore, we analyze data from 396 full-service restaurant diners in Taiwan based on Fuzzy Cognitive Map (FCM) and Structural Equation Model (SEM) to investigate hypothesis and to identify the most relevant decision factors to enhance outcome variables and furthers to help decision makers have a clear picture of affecting factors in the customer behavioral intention. The findings support the model and show that perceived overall service quality and perceived value do exert mediating effects in the relationship between restaurant-related attributes and customer behavioral intention. This study could ultimately contribute to the business firms in service industry to provide decision makers the most desirable outcomes to survival the competitive society.</p> <p> </p>

Benchmarking strategic orientation and firm performance: An analysis of entrepreneurial orientation dimensions

Learning from other firms is identified as an important resource for firm survival. Benchmarking is a learning mechanism that can aid firms in identifying superior organisational capabilities and behaviours among other firms. Firms that possess stronger benchmarking capabilities and are able to align their strategic posture with those of market leaders, may be more likely to enjoy greater firm performance. One strategic posture that has been shown to lead to higher performance is a firm’s entrepreneurial orientation (EO). Notwithstanding, the benchmarking of organisational entrepreneurial postures as a route to enhanced firm performance has received little attention. We empirically examine firm performance implications regarding deviation in key EO dimensions from those of top performing firms. Results suggest that the alignment of various dimensions of EO with those of top-performers are more outstanding than others and that the direction of deviation from the benchmark connotes performance implications. We discuss limitations and potential for future research.

Workers’ retention factors: a study on plant workers among small manufacturing firms

Human assets play a very important in the survival of small firms. There are prominent studies from developed and developing countries exploring the human resource practices among small firms. From the perspective of Resource Based View, human resources are regarded as potential assets that are indispensable for sustainability of all firms. Studies concentrating on human resource practices from small and large firms’ perspectives are abundant. Still there are fewer studies which view the importance and factors for fostering workers retention from the purview of plant workers of small firms in developing countries. The objective of the study is to explore workers retention factors among plant workers and whether it differs significantly sector wise. The study confirms that human resource retention factors are important for retaining plant workers among small manufacturing firms. The findings also proves that there is significant differences in workers’ retention factors with respect to demographic characteristics of workers. The study underlines that small manufacturing firms are relatively less conscious to retain workers in the plant thus leading to their instability.

Sustainable Business Model Innovation: From Value Uncaptured to Value Opportunities

COVID-19 pandemic crisis threatened the stability of economy and the survival of many firms, but it has been also the chance to challenge the current economic development path and to rethink firms’ business models according to a more sustainable approach. Academic literature states that business model (BM) innovation is a driver for the transition to sustainability. Sustainable business models (SBMs) incorporate sustainability vision in the main components of business model, which are value proposition, value creation and value capturing. Nevertheless, the usual approach to business models, based on a positive concept of value, can underestimate some areas of potential opportunities to catch. For this reason, in this paper we suggest to adopt a novelty approach that emphasizes the negative concept of value (value uncaptured) to identify unexploited value opportunities. This approach can help firms innovating their BMs towards SBMs.

Sustainability frontiers of strategic risk management and firm survival: The Altman score effectiveness. A bibliometric analysis

AbstractThe financial networking of companies operating in the globalized market raises the imperative of assessing the risk of insolvency. Business survival is an extremely trending topic in the literature and the managerial context. Risk management requires new perspectives on sustainability. The aim of this work is to verify that Altman's score still maintains its supremacy as the best tool used to investigate the financial insolvency of enterprises. The novelty of the work is the implementation of a bibliometric analysis conducted on Scopus and Web of Science, using analytical software (Bibliometrix R, VOSviewer), identifying future paths of analysis and evaluations of the impact of Altman's methods. Results reveal an exceptional growth in the number of publications on this topic over the last two decades, testifying to its topicality in the academic debate. In light of rising climate change and environmental risks, findings suggested how the Altman score may preserve its function in getting deeper to prevent business bankruptcy. By providing practical evidence, Altman's models encompass a variety of fields, including finance, accounting, economics, management, and all of them addresses the area of sustainability.

Financial Sources and Firms’ Innovation Outputs: Analysis of JASDAQ Market

The consensus that innovation is an essential strategy for firms, which aim to competitively survive over the long term, motivates growing literature to understand the drivers of firms’ innovation outputs. It is widely acknowledged that access to financial sources is fundamentally important for the survival of innovative firms. The lack of financial support may prevent the firms from entirely pursuing innovation activity and producing innovative outputs. However, this is rarely addressed in the finance literature. Focusing on both types of financing sources (internal and external), this study investigates their influence on firms’ innovation outputs. Leveraging on the spirit in Pecking Order Theory, this study proposes that firms adopt a hierarchy between types of financing from internal or self-financing to external, starting from low risk to risky debts and followed by the issuance of shares on their efforts in financing innovation and producing the outputs. Poisson regression results, using a sample of 113 manufacturing firms listed in JASDAQ market of the Tokyo Stock Exchange, revealed that both financing sources (internal and external) are important in driving volume and value of firms’ innovation outputs. However, the reliance of firms on self-generated financing conquers. This study, using patent-based data (application, publication, citation) to estimate firms’ technology outputs, also finds the complementary power of debt financing as an important financial source, particularly when firms’ internal financing source has exhausted. The findings of this study offer support to the assertion in the Pecking Order Theory concerning the risk inherited in the different financing sources.

The Effect of Operating Cash Flow on the Likelihood and Duration of Survival for Marginally Distressed Firms in Taiwan

The purpose of this study was to investigate the effect of operating cash flow (OCF) on the likelihood and the duration of distressed firms returning to a profitable position for survival. By selecting 309 marginally distressed firms that are Taiwan listed firms, we identified 218 firms that survived from financial distress and 91 firms that did not survive from financial distress for the logistic regression model. We found that the greater adequacy, stability, and growth of changes in OCF and the higher liquidity, growth, and size of firms significantly increased the likelihood of firm survival, suggesting that a distressed firm is more likely to return to profitability for survival if it can improve OCF after suddenly encountering financial distress. Moreover, applying duration analysis, this study took a further step to investigate the time dependence of firm survival among 218 surviving firms. The results suggest that firms generating more OCF in the post-distress period and possessing higher profitability, liquidity, and growth in the pre-distress period significantly took less time on resolving financial distress for survival. However, an economic recession can significantly impede the time and speed of firm survival. Overall, the study found consistent and robust evidence that OCF is a reliable instrument to predict the likelihood and duration of survival for financially distressed firms. The study also provides practical implications for managers, investors, policymakers, and lenders who intend to promote firm financial performance and sustainability.

Evaluation of High-Tech Industry Using Fuzzy ARAS Method

In this article, High technology capacity planning and related to management we review the literature. Using the backdrop of the competitive. Strategic, tactical and operational perspectives. In the field of high technology Product innovation for a sample of 121 firms and the relationship between firm survival. To choose their freight delivery concept can be used by companies it provides a method. Advanced Extension of Additional Rate Assessment (ARAS) Method Rake distribution concept was developed to solve Exam problem. implementation of Based in Czech Republic tire manufacturing company is taken as a case. Despite the study, the proposed picture denouncing the ARAS method is general and any other company can use it. To verify the novel image denouncing the ARAS method, with nine state-of-the-art image fuzzy multi-criteria decision-making methods a comparative analysis is presented. Alternatives is Technological factors (TF), Economic factors (EF), Social (personnel) Factors (SF). Evaluation Parameter is biomedical micro electromechanical systems (BioMEMS) (C1), Nano technology (C2), Biotechnology (C3), Biomedical engineering (C4). In this type of analysis, Fuzzy ARAS methods determine for the best solution to the negative Short distance and very long distance to settlement, but Comparison of these distances doesn’t underestimate the importance. As a result, Technological factors (TF) is first rank, and Social (personnel) Factors (SF) is lowest rank.

How Do Innovation Types and Collaborative Modes Drive Firm Performance? An FsQCA Analysis Based on Evidence From Software Ecosystems

Firm survival in dynamic software markets depends on collaboration with ecosystem complementors and exploitative and/or explorative innovation. Such activities have been widely accepted as crucial antecedents for collaboration success, but few studies have analyzed the configurational effects of collaborative modes effect on firm performance. Based on a sample of 224 software firms and fuzzy set qualitative comparative analysis, results show that four causal configurations equivalently explain high innovation performance, in which exploitation, exploration, and collaboration with academic and governmental institutes are proven to be core causal conditions. Theoretically, this article contributes to the literature on collaborative innovation in terms of causality research and collaborative pathways but also enriches the literature on software ecosystems regarding partnerships and collaborative processes. Practical guidance and flexible choices for software firms to achieve high innovation performance are provided by offering four equivalent configurations.

A co-evolutionary analysis of corporate performance: From Fiat to Fiat Chrysler Automobiles

ABSTRACT How do environmentally-driven and firm-specific factors influence business innovation and adaptation? How can the analysis of their co-evolutionary relationship help explain firm survival or failure over time? To address these key questions, this article focuses on the study regarding the 20-year performance (1997–2017) of the Fiat (later Fiat Chrysler Automobiles) group in the automobile industry. The analysis primarily deals with three historical phases: crisis (1997–2002), turnaround (2003–2007), and expansion (2008–2017). As a key contribution, the study combines elaborations from a robust dataset comprising both industry characteristics and executive team features, with historical events both at the environmental and the firm’s strategy levels. Results suggest that when executive team diversity and a wide breadth of product portfolio are concurrently present, they positively affect corporate performance.

The effect of government support on Bureaucracy, COVID-19 resilience and export intensity: Evidence from North Africa

The literature on the imperativeness of government support for firm survival since the onset of COVID-19 is vast, but scholars have scarcely considered the impact of such assistance on managers’ time, nor the extent to which support measures induce resilience and export activity. Accordingly, this study assesses the impact of government support on (1) bureaucracy and (2) resilience using data from 535 Moroccan SMEs. It further evaluates the influence of resilience on direct versus indirect exports, and espouses the institutional voids, resource-based and strategy-creation view to explain the associations through a contingency lens. The results demonstrate that (1) government support increases bureaucracy which, (2) surprisingly triggers and enhances resilience. Furthermore, (3) resilience has a positive impact on direct exports but (4) adversely affects indirect exports. Theoretically, the findings acquiesce extant calls for measurement specificity in export performance. Practically, stakeholders’ attention is drawn to the value of managers’ time well spent.