Formal versus informal entrepreneurship in emerging economies: The roles of governance and the financial sector

The aim of this study is to explore the critical success factors (CSFs) of small and medium-sized enterprises (SMEs) in Saudi Arabia. A questionnaire was developed using 28 factors/indicators identified from the previous researches. From 500 respondents, a total of 347 questionnaires were returned. By conducting exploratory factors analysis, these indicators were categorized into six factors, namely: Individual factors, business characteristics, management factors, business support, capital availability and business environment. Using IBM SPSS and AMOS, the results indicated that business support was the most critical factor that significantly affects the success of SMEs in Saudi Arabia, followed by individual factors, capital availability, and management factors. They also indicated that business characteristics and business environment factors had no significant impacts on the success of these enterprises.

https://www.econstor.eu/bitstream/10419/239929/1/admsci-09-00032-v3.pdf

Critical success factors of small and medium-sized enterprises in Saudi Arabia: Insights from sustainability perspective

The European Proceedings of Social & Behavioural Sciences

Companies consistently strive to prepare for new technologies for survival. In a rapidly changing market, absorbing innovation through cooperation strategies can complement internal research and development for new technology development. Startups with state-of-the-art technologies are good candidates for successful cooperation; however, it is difficult to identify their technological positions. Our study suggests a framework to identify appropriate startup candidates using startup profile texts provided by the Crunchbase database. We utilize a doc2vec approach to extract feature vectors representing technological meanings from the startup profile texts and patent abstracts of acquiring companies. Based on these vectors, we apply item-based collaborative filtering to estimate scores for technological similarity between a company and a startup to be acquired. Furthermore, we screen for promising startups using factor analysis, with variables representing the startup's potential. We believe that our framework can save time and effort in the early stage of cooperation planning by supporting effective decision-making.

Recommendation of startups as technology cooperation candidates from the perspectives of similarity and potential: A deep learning approach

This paper discusses the effect of psychological traits on success. We empirically explore the effect of entrepreneurs’ psychological biases on their venture success. Using a sample of Tunisian entrepreneurs and the cognitive mapping technique, our results indicate that psychology does affect business venture success. Especially, the entrepreneurial overconfidence and optimism biases can largely affect the new venture success. However, other variables, such as capital and social networks, also have strong effects on new venture success in this country. We control for gender differences and their effects on our empirical findings. For this purpose, we divide our full sample to constitute two sub-samples using the entrepreneur’s gender. We find that the behavioral factors, especially overconfidence, optimism and hope, have a great impact on new venture launched by female entrepreneurs compared to male entrepreneurs. In fact, the success of new venture launched by male entrepreneurs is less affected by behavioral factors and only the overconfidence bias can have an influence and their new venture success remains dependent to their age, experience and education.

Does entrepreneurs’ psychology affect their business venture success? Empirical findings from North Africa

Purpose – The purpose of this paper is to develop a mediational model of small businesses success. In this paper, the authors investigate how the human, social, and financial capital of entrepreneurs influences the capacity of small business to succeed. The objective through this model is to demonstrate that it is through the process of innovation these capitals are converted into success. Design/methodology/approach – The paper suggests an original, conceptual framework for how small businesses can succeed. Findings – To validate this mediational model, the authors used the conditions/steps proposed by Baron and Kenny (1986). Research limitations/implications – The results of this study have implications for both research and practice. This study provides a new contribution to the existing literature by introducing the innovation in the explanation of the links between these capitals and small business success, i.e. business with greater access to human and financial resources are more likely to undertak...

An empirical investigation of factors affecting small business success

Purpose – This paper aims to study the effect of Hofstede’s cultural dimensions (power distance, individualism, masculinity, uncertainty avoidance and long-term orientation) on corporate tax avoidance as proxied by the effective tax rate. Design/methodology/approach –Asample of 944 observations during 2016was analyzed at three different quantiles (Q 0.25, Q 0.50 and Q 0.75) based on a quantile regression approach. Findings – Using Hofstede’s (2001) cultural dimensions (power distance, individualism, masculinity, uncertainty avoidance and long-term orientation), the authors find that individualism and masculinity are negatively associated with effective tax rates, and this negative relationship is more pronounced under low tax aggressiveness regime (third quantile). By contrast, long-term orientation is positively associated with the effective tax rate, and this relationship is more prevailing under aggressive tax regime (first quantile). These findings remain stable when using cash effective tax rate as an alternative measure for tax avoidance. Originality/value –This study adds to the extant literature a further understanding of the impact of cultural dimensions on tax avoidance. The use of quantile regression approach shows how the effect of masculinity, individualism and long-term orientation on tax avoidance varies under different tax management regimes.

AGJSR-05-2022-0047_proof 196..211

PurposeThis paper aims to study the effect of Hofstede’s cultural dimensions (power distance, individualism, masculinity, uncertainty avoidance and long-term orientation) on corporate tax avoidance as proxied by the effective tax rate.Design/methodology/approachA sample of 944 observations during 2016 was analyzed at three different quantiles (Q 0.25, Q 0.50 and Q 0.75) based on a quantile regression approach.FindingsUsing Hofstede’s (2001) cultural dimensions (power distance, individualism, masculinity, uncertainty avoidance and long-term orientation), the authors find that individualism and masculinity are negatively associated with effective tax rates, and this negative relationship is more pronounced under low tax aggressiveness regime (third quantile). By contrast, long-term orientation is positively associated with the effective tax rate, and this relationship is more prevailing under aggressive tax regime (first quantile). These findings remain stable when using cash effective tax rate as an alternative measure for tax avoidance.Originality/valueThis study adds to the extant literature a further understanding of the impact of cultural dimensions on tax avoidance. The use of quantile regression approach shows how the effect of masculinity, individualism and long-term orientation on tax avoidance varies under different tax management regimes.

https://www.emerald.com/insight/content/doi/10.1108/AGJSR-05-2022-0047/full/pdf?title=national-culture-and-tax-avoidance-a-quantile-regression-analysis

National culture and tax avoidance: a quantile regression analysis


Purpose
This paper aims to investigate the relationship between digitalization and money laundering and tests whether ethical behaviour of firms and corruption moderate this association.


Design/methodology/approach
The sample includes 114 countries during 2016. Basel Anti-Money Laundering Report for 2016 is used to collect data concerning money laundering. Digitalization proxies are collected from digital adoption index from the World Bank for 2016. Finally, the remaining variables are gathered from the Global Competitiveness Report for the same year.


Findings
Results show negative and significant associations between the overall digitalization score and sub-scores dealing with digitalization adoption by businesses, people and government and money laundering. When testing for the moderating effect of corruption, the negative and significant association remains stable for both low and high corrupt environments for the overall digitalization score and sub-scores dealing digitalization adoption by businesses and people and money laundering. Similarly, ethical behaviour of firms does not moderate the association between digitalization (overall index and digitalization by business and people) and money laundering, as the relationship remains negative and significant for low and high ethical behaviour sub-samples. By contrast, the association becomes insignificant between digitalization adoption by government and money laundering for countries characterized by high corruption and low ethical behaviour of firms, while it is negative and significant for countries characterized by low corruption and high ethical behaviour firms.


Originality/value
These findings confirm that digitalization effort represents a crucial arm to combat money laundering. It also emphasizes the interrelation that may exist between digitalization effort in governmental institutions and institutional environment, as low levels of money laundering cannot be reached if the digitalization effort undertaken by governments is not supported by low corruption and ethical business environment.


Mohamed Amine Bouraoui

Papers

An empirical investigation of factors affecting small business success

AGJSR-05-2022-0047_proof 196..211

National culture and tax avoidance: a quantile regression analysis

Digitalization and money laundering: the moderating effects of ethical behaviour of firms and corruption