Showing papers in "International Journal of Economics and Financial Issues in 2016"

Impact of Financial Literacy and Investment Experience on Risk Tolerance and Investment Decisions: Empirical Evidence from Pakistan

Abstract: Investment decision making is a very crucial process which is influenced by many factors. An important thing which is necessary to understand is the degree to which an investor can absorb the risk. This intensity of risk which can be of minimal, maximum or mediocre level, defines the strategies regarding the decisions of investment. A determinant of investment decisions needs special consideration to be understood by investors. This paper helps to determine those variables by constructing a theoretical model. After studying the past researches and theories certain conclusions are drawn whether which are the factors that impacts the decision making process. This paper is structured as follows. The first part describes relevant literature and devises hypotheses. Section 2 describes the model, methodology, data source and the variables measurement. Section 3 is based on a discussion and concludes and provide with future implications.

The Effect of Leverage and Firm Size to Profitability of Public Manufacturing Companies In Indonesia

Abstract: This study aimed to analyze the effect of leverage and the size of a company to its profitability. Data were obtained from the financial statements of 100 qualified manufacturing companies listed in Indonesia Stock Exchange in the period of 2009 to 2014. Leverage was measured by debt ratio, while firm size was measured by total assets and total sales, and profitability by return on assets. Panel data regression analysis was implemented to analyze the influence of independent variables to the dependent variable. The most suitable panel data regression model in this study was a fixed effect model. The study found that the debt ratio had a significant positive effect on profitability while total assets had a significant negative impact. In contrast, total sales had statistically insignificant effect to the profitability of the companies. Keywords: Leverage, Firm Size, Profitability JEL Classification: M210

The Influence of Technological, Organizational and Environmental Factors on Accounting Information System Usage among Jordanian Small and Medium-sized Enterprises

Abstract: Accounting information plays a very crucial role in support of various business decisions. Widespread use of Information Technology (IT) enhances accounting functions to be more effective and efficient in supplementing accounting-related information. A computer-based accounting systems (Accounting Information System) enables more accurate reporting, processing large amount of transactions and produce more meaningful reporting for analysis. Despite the promised benefits of AIS, Small and Medium-sized Enterprises (SMEs) have been reported to be lagged behind on its use. Therefore, this study examines factors affecting the use of AIS amongst Jordanian SMEs based on Technology–Organization–Environment (TOE) framework. The study employed self-administered survey questionnaire as a mean of data collection. Based on the responses from 187 firms, compatibility, owner/manager commitment, organizational readiness, competitive pressure and government support were found to have significant effect on AIS usage among firms. This study confirms applicability of TOE framework in understanding factors affecting AIS usage in SMEs

Ownership Structure, Corporate Governance and Firm Performance

Abstract: Based on previous studies, ownership structure is not standardized across different country and economic sectors. In other words, each country or economic sector might have different types of sustainable ownership structure that contribute to the competitive and healthiness of a firm. Failure to establish a sustainable ownership structure may produce a result that is contradicted from what is expected by the shareholders. This situation frames a picture that ownership structure is a vital determinant in enhancing firm performance. By highlighting the corporate governance components that normally used in the academic research, this study tends to identify the important components that applied in the reforms of the Malaysian corporate governance. This study is needed as a tool to proof whether the ownership structures and corporate governance practices are truly influenced firm performance. The purpose of the study is to investigate the relationship between firms’ ownership structures, corporate governance pratices and firm performance. Specifically, this study narrows the ownership structures categories into; institutional, government, family, foreign, managerial and concentrated. Besides, this study focuses on ten corporate governance components which include board structure, CEO duality, board size, independent board of directors, directors’ professionalism/qualification, board meeting, board committee, directors’ remuneration, transparency and disclose, merger and acquisition. Firm performance will be measured in the aspect of accounting profitability- return on asset and return on equity; and market performance- Tobin-Q, price to earnings and price to book value. The participating firms of this study are non-financial public firms that are actively listed in the main market of Bursa Malaysia during the five years period (2010 to 2014). The sample will be tested and analyzed by using empirical quantitative method, linear regression, multiple regression and panel data regression analysis. Keywords: Ownership Structure, Corporate Governance, Bursa Malaysia JEL Classifications: H5; H7; P4

Impact of Demographic variables and Risk Tolerance on Investment Decisions – An Empirical Analysis

Abstract: This empirical study explores the investment pattern and financial decision making of individuals and their risk tolerance. The study has adopted financial risk tolerance scale proposed by Grable and Lytton to measure the different dimensions of financial risk. Kendall’s W Test is used to ascertain the preferred source of investment of individuals. Chi square test is used to determine the demographic variables and their relationship with investment pattern. The study reveals that gender has an impact on the investment pattern and decision making of respondents. Keywords : Risk Tolerance, Demographics, Investment pattern, Investment decision JEL Classifications: GO2; G32

Stock Market Development and Economic Growth: Evidences from Asia-4 Countries

Abstract: The main purpose of this study is to examine the role of stock markets in economic growth for four Asian countries namely Bangladesh, India, China and Singapore. Annual time series cross country data over the period 1991 to 2012 and Autoregressive Distributed Lag (ARDL) bound testing approaches an analytical technique are used. Our results suggest that there is long-term cointegration among economic growth, Foreign Direct Investment (FDI), stock market development and inflation. The long-term elasticity estimates of the stock market development in all countries show expected sign but statistically significant only in China and Singapore. Incoming FDI is found to have positive relation to economic growth in all countries except India and statistically insignificant for all countries except China. In the short run, stock market also has positive relation to economic growth in all countries but significant only in India and China. The impact of FDI on growth is significant and positive only for Singapore. The results indicate that the inflation variable is statistically significant in Bangladesh and Singapore. The empirical findings of the study reveal that stock market development and FDI inflows play vital roles in the process of economic growth and development in these selected countries.

Exploring the Relationship between Liquidity Ratios and Indicators of Financial Performance: An Analytical Study on Food Industrial Companies Listed in Amman Bursa

Abstract: The study aims to examine the relationship between liquidity ratios and indicators of financial performance (profitability ratios) in the food industrial companies listed in Amman Bursa during the period (2012-2014). The study sample included (8) industrial companies which operate in the field of food listed in Amman bursa. The results showed no relationship between all liquidity ratios and the gross profit margin, while there is a weak positive relationship between the current ratio and each of the operating profit margins and the net profit margin, as the study pointed to the existence of a positive relationship between (quick ratios, defensive interval ratio) and operating cash flow margin. There is a positive relationship between liquidity ratios (current ratio, quick ratio, cash ratio) and return on assets.

Examining the Causal Linkages among Domestic Investment, FDI, Trade, Interest Rate and Economic Growth in ASEAN-5 Countries

Abstract: The aim of this study is to empirically analyse the linkages among domestic investment, foreign direct investment (FDI), trade, interest rate and economic growth in the ASEAN-5 regions in the period 1970-2012. The Johansen-Juselius cointegration approach is applied to examine the long-run relationship and the Granger causality approach is applied to evaluate the causal linkages among the variables. The results confirm the existence of long-term causal links between domestic investment and FDI for the ASEAN-5. This means that collaboration of domestic and foreign investors is essential as the development of domestic firms contributes to further participation by multinational investors. We also reveal that domestic investment and FDI are growth enhancing and their impact is felt in both short- and long-run in the majority of the ASEAN-5 markets, indicating that these three variables are interrelated since they could be attracted to the growing economies. Thus, economic policies that aim at improving and promoting both local and foreign enterprises are indeed necessary in stimulating economic growth in the ASEAN-5 nations.

Stock Price Volatility and Role of Dividend Policy: Empirical Evidence from Pakistan

Abstract: Despite years of empirical research, the linkage between dividend policy and stock price volatility remains controversial among the researchers and scholars. This research endeavors to figure out the relationship between stock price volatility and dividend policy of listed companies in Pakistan. A sample of fifty firms, based upon consistent dividend paying behavior, listed on Karachi Stock Exchange has been selected from non-financial sectors, for the period of 2005 to 2012. Multiple regressions analyses have been carried on by applying random effect model on panel data i.e. for empirical estimation and robustness, panel EGLS methods is used for finding relationship between dividend policy (dividend payout and dividend yield) and stock price volatility after controlling for firm size, asset growth, long term debt, earning volatility and earnings per share. The study has found significant negative relationship between stock price volatility and dividend policy variables i.e. dividend payout and dividend yield. Study has also found significant positive relationship between control variables (asset growth, earning volatility and earnings per share) and stock price volatility in KSE. But in case of the remaining two control variables i.e. firm size and long term debt, these were found to be negatively related to stock price volatility. The findings of this research are expected to contribute to dividend policy literature by providing evidence from Pakistani stock market to prior studies done in developed and developing countries. Keywords: Stock Price Volatility, Dividend Policy, Dividend Yield, Dividend Payout, Karachi Stock Exchange (KSE), Random Effect Model. JEL Classifications: G20. G30, G35

Relationship between School Education and Economic Growth: SAARC Countries

Abstract: For long increasing economic growth is the major objective of macroeconomic policy makers of the country. Many studies have tried to put forward a theory which can explain the pattern of gross domestic product growth, in this series Cobb-Douglass were most prominent in making a production function using physical capital and labor as inputs. But later studies highlighted that human capital is also a significant component of this production function. This study used three proxies for the human capital for the case of SAARC countries to see whether higher proxy has better marginal impact on the growth of the selected countries. The results for dynamic panel data models reveal that tertiary education enrollment has highest impact on growth as compare to primary and secondary education enrollment.

Islamic Financial Literacy and its Determinants among University Students: An Exploratory Factor Analysis

Abstract: This study aims todevelop the constructs in order to test the validity and reliablity of Islamic financial literacy and its determinants such as hopelessness, religiosity and financial satisfaction. The development of validated constructs for Islamic financial literacy is crucial since most contemporary research focus on conventional financial literacy which contains some elements that are not compatible with the principles of Islamic finance. The data for the study was collected via structured questionnaires distributed to 200 students of Universiti Utara Malaysia. An exploratory factor analysis using SPSS programme were used to analyze the data. The results show that only 7 items load reliably in Islamic financial literacy construct. Specifically, religiosity was found to exhibit the highest variance followed by hopelessness and financial satisfaction. This paper enables future researchers to expand the knowledge in the area of Islamic financial literacy by providing validated constructs to assess Islamic financial literacy among university students.

The Impact of Working Capital Management on Firms Financial Performance: Evidence from Pakistan

Abstract: The purpose of this study was to empirically explore the impact of working capital management on firms performance of chosen manufacturing firms listed in Karachi Stock Exchange (KSE). The quantitative research methods, correlation matrix and multiple regressions, secondary data and purposive sampling have been worked out. A random sample of 50 listed non-financial companies on Pakistani Stock Market was selected for the period ranging from year 2005 to 2014. The working capital management has been used as an independent variable i.e. inventory turnover (ITO), cash conversion cycle (CCC), average collection period (ACP), and average payment period (APP). The firm performance (FP) has been used as dependent variable i.e. Return on Asset (ROA), Return on Equity (ROE) and Earning per Share (EPS). The results of multiple regression articulated that the APP, ITO and CCC have negative and significant impact on ROA but ACP has positive and significant impact on ROA. While APP has negative significant impact on ROE. The Inventory turnover (ITO) has negative significant impact on EPS while ACP has positive and statistically significant impact on. The study results advocated that the firm performance of selected firms is influenced by working capital management. By validating the findings with previous researchers, this endeavor will contribute to the literature. It will be beneficial to the academic, social and practical deportment. The study findings endowed with deeper insights into working capital management practices and present recommendations that in turn bring improvements in the firm performance of the targeted firms.

The Effect of Credit and Market Risk on Bank Performance: Evidence from Turkey

Abstract: There is a strong connection between bank performance and economic growth. Therefore, understanding on the effects of credit and market risk on bank performance could contribute to the better functioning of the banking system. This study investigates the effects of credit and market risk, i.e. interest rate and foreign exchange rate risk, on the bank performance for the Turkish Banking sector in a time-varying framework employing the GARCH approach for the 18.01.2002-30.10.2015 period by using weekly data. The results suggest two main findings: (i) credit risk and foreign exchange rate have a positive and significant effect, but interest rate has insignificant effect on banking sector profitability, (ii) credit and market risk have a positive and significant effect on conditional bank stock return volatility. Keywords: Bank lending channel, bank performance, credit risk, interest rate risk, currency risk. JEL Classifications: C32, E43, E44

Social Crisis, Terrorism and Food Poverty Dynamics: Evidence from Northern Nigeria

Abstract: Food security has become an issue of global concern in the recent time Nigeria, with her huge endowed natural and human resources is not spared However, food poverty in Northern Nigeria has come under threats since the emergence of series of attacks by a terrorist sect called ‘Boko Haram’ (BH) Since the emergence of the BH activities in Nigeria, sectors with direct impact on the wellbeing of the people has been negatively affected The aim of this paper is therefore to examine the various ways in which the activities of BH have threatened food security and worsens food poverty in Northern zones (North West, North Central and North East) of Nigeria where the sects are dominating and imposing demeaning menace using 2010 Nigerian Living Standard Survey (NLSS) data The data is analyzed using descriptive statistics and ordered probit The study used mean food per capita expenditure to generate the poverty line and ordered the households into three categories; food poor, moderately food poor and food non poor The estimate revealed that the mean food per capita expenditure (annually) was ₦2552436 ($12823) The study further established that 8485% of the households in northern Nigeria are food poor in which majority are rural households, male headed households and uneducated households Furthermore, the study found that the activities of the sect have negatively impacted the wellbeing of the northern Nigerians and increases food poverty extremely However, interventions such as donations from foreign organizations such as UNICEF, WHO, World Bank etc were found to improve the food security and reduce food poverty of the northerners Therefore, this study recommends increasing intervention effort by the Nigerian government and the international community in curbing the menace of “Boko Haram” Also, state government and other stakeholders including non-governmental organization should boost awareness on productive opportunities for the unemployed women and youths; and establishment of training/development centers for the uneducated Keywords : Terrorism, Food Poverty Dynamics, Northern Nigeria JEL Classifications : I32 P36 Q18

Determinants of Corporate Social Responsibility Disclosure and Investor Reaction

Abstract: This paper aims to examine the effect of firm size, media exposure and industry sensitivity to corporate social responsibility disclosure and its impact on investor reaction. The population of the study is the companies listed on Indonesian Stock Exchange. The sample was taken by purposive sampling method, and samples of 53 companies were obtained. Data were analyzed using partial least squares path modeling. The result reveals that firm size, media exposure and industry sensitivity have a significant effect on corporate social responsibility disclosure; firms size, media exposure and industry sensitivity have no direct effect on investor reaction; corporate social responsibility disclosure have direct effect on investor reaction and mediates relationship between firm size, media exposure, industry sensitivity and investor reaction. This present study has two limitations. The first limitation of this study is that using media exposure as a proxy for public pressure may not have been fully fit, but there are still other forms of public pressure such as community lobby and pressure groups that can represent public pressure. The second limitation of this study is that the use of GRI indicators by the companies may not be suitable for the companies since they can not fully apply all of the items. Such difficulties result from the fact that GRI indicators as international guidelines on sustainability reporting are not fully implemented in Indonesia because of cultural and customs differences. The paper is one of the few studies in the academic literature to analyze the effect of three independent variables on the corporate social responsibility disclosure of public companies and investor reaction to the implementation of corporate social responsibility. Keywords: Firm size, Media exposure, Industry sensitivity, Corporate social responsibility disclosure, Investor reaction JEL Classifications: G34, M14, L83

Innovation Clusters: Advantages and Disadvantages

Abstract: The main direction of the current economic development is found in a transition of the most civilized countries to a new stage of creating an innovative society, i.e. building the economy based mainly on offering, spreading and using of knowledge. The specific functioning of innovation clusters allowing to create new technologies, implement deep technological modernization and innovative industry development based on personal or adopt technologies, as well as to train personnel for work in the conditions of the current industrial and technological formation, is characterized by the three components: the fundamental, practice-oriented science, innovative industry, and developing education. Along with that, nowadays there is a need to take firm measures not only to revive the innovative activity, but also to make a breakthrough in this area. Therefore, it is necessary to provide the state-of-the-art mechanisms to increase the innovative activity of domestic high-tech innovative economy based on the cluster approach, cluster initiatives. Keywords: innovation, cluster, disadvantages, creation, advantages, economy JEL Classifications: A11, A10, O30

The Empirical Study on Intellectual Capital Approach toward Financial Performance on Rural Banking Sectors in Indonesia

Abstract: The success of a company in high level competition requires public trust. Similarly, the banking services provider of Rural Banking Sector in Java, Indonesia. To keep customer satisfaction with high trust of financial performance that customer loyalty can be achieved is necessary for public which is measured through financial performance.The aim of this study was to investigate the effect of Intellectual Capital in the banking sector on the island of Java, Indonesia to financial performance. Data processing techniques using Multiple Regression.The research method using purposive sampling and exploratory with a sample number 615. The data were analyzed using Eviews 7 and Microsoft Exel 2007. The results showed that the Value Added Capital Employee (VACA) variables significantly influence toward Financial Performance and Value Added Human Capital (VAHU) variables and variable Structural Capital Value Added (STVA) have significant effect also on toward Financial Performance. The overall test results produced an adjusted R squares indicate that the Intellectual Capital variables significantly influence toward Financial Performance.

Reputation, Satisfaction of Zakat Distribution, and Service Quality as Determinant of Stakeholder Trust in Zakat Institutions

Abstract: Zakat is one of the five basic pillars in Islam and it is obligatory to all Muslims. Zakat is a system that can alleviate poverty in order to decrease the gap among rich and poor. If zakat can be managed effectively, the collection of zakat can be maximized compared to income tax collection. Thus, this article is an early study proposing a research model to examine the factors that influence stakeholder trust in zakat institutions. This is due to the lack of previous studies about stakeholder trust in zakat perspective. An extensive literature review method was utilized to identify and analyze the relevant literature in order to propose the model. This paper is discussing three factors which are reputation, satisfaction of zakat distribution, and service quality. Theoretical and practical of the paper as well as suggestions for future research were also discussed.

The Sustainable Development of Competitive Enterprises through the Implementation of Innovative Development Strategy

Abstract: The purpose of this article is to develop methodological approaches to the production effectiveness’s evaluating and products competitiveness’s level estimation to identify risk groups according to the products and producers, to propose targeted measures manufacturers’ support, to activate innovative development and minimize potential social impacts. The leading method to study this problem is the method of constructing the matrix of the producers’ efficiency and the commodities’ competitiveness which allows implement a differentiated approach to the strategies’ development of production’s innovative development and social risks’ minimization. The article proposes a methodological approach to the products competitiveness’s level assessment based on the efficiency of production and external conditional factors and identifies the respective groups of competitive and non-competitive commodities and producers, as well as it defines the resource and innovation potential, with further strategy development. The study materials can be used in the management of manufacturing development, both at the level of the industrial enterprises’ services and government agencies, to assess the level of products’ competitiveness, to create strategies of innovation development, to develop targeted actions for the exports’ development. Keywords: commodities’ competitiveness, production efficiency, export potential, innovation development JEL Classifications: O31, O34, Q01

Determinants of Banking Sector Profitability in Zimbabwe

Abstract: The study sought to establish the determinants of banking sector profitability in Zimbabwe during the period 2009-2014. The study specifically looked at the evolution and determinants of banking sector profitability after Zimbabwe adopted a multicurrency system. Employing the fixed effects panel regression models the study shows that banking sector profitability in Zimbabwe is driven by the quality of decisions made by bank management with regard to liquidity risk, credit risk, asset composition and management, expense management and capital size. The results implies that profitability of the Zimbabwean banking sector can be improved by increasing the quality of the assets, improving expense management, improving liquidity and capital levels. The study confirms that bank managers have a significant role in shaping the profitability of the sector.

Fraud Prevention and Internal Control in the Nigerian Banking System

Abstract: This paper examines the issues of internal control viz., fraud prevention in the banking industry, adopting both primary and secondary data. Primary data was used to test internal control while secondary data were employed to test fraud prevention. The main primary variables were separation of duties, monitoring, and staff qualifications while the main secondary variables are bank profit, regulation, technology and M2. In both cases regression techniques were adopted. The results show that internal control on its own is effective against fraud, but not all staff are committed to it, while the secondary data is quite supportive of the primary data but more exemplifying in that M2, staff qualifications and technology were significant throughout the various dependent variables. It is also clear from the regressions that technological based fraud is significant. The paper recommends the continuation of the cashless policy of the Central Bank to reduce available cash and improvement in educated staff engagement to reduce fraud in the banking system.

The Impact of Capital Market on Economic Growth: A Malaysian Outlook

Abstract: This study analyzes the influence of the stock market and the debt market on the Malaysian economy. The Johansen-Juselius co-integration test reveals the existence of co-integrating relationship between real GDP per capita, stock market and debt market. The VECM long-run results show that both, the stock market and the debt market, have positive and significant influence on the Malaysian economy. The stock market is found to exert greater influence on the Malaysian economy compared to the debt market. Furthermore, unlike the debt market, the stock market is found to exert uni-directional causality on the economy. Since both markets have significant and positive influence on the Malaysian economy, the policy makers should implement appropriate measures to be able to fully utilize the opportunity created by both markets, especially the liquidity condition of the stock market as it influences an investor’s financial and investment decision making process.

Education and Human Capital Effect on Malaysian Economic Growth

Abstract: In this globalization era, more knowledgeable human capital is needed to gain better economic growth. The ability of a country’s human resources in providing skillful labors in various scopes ensures the success of implementation of the economic policies. Education and human capital has two essential keys that have relation in contributing towards the economic growth. Human capital is a set of resources that combines knowledge, training and skills that is correlated to education. The attention in higher education increases from time to time as people realizing the importance of providing better education for the future of their children and the economy as a whole.

Markowitz Portfolio Theory and Capital Asset Pricing Model for Kuala Lumpur Stock Exchange: A Case Revisited

Abstract: Capital Asset Pricing Model is widely used by investors to estimate the return or the moving behavior of the stock and Markowitz Model is employed to achieve portfolio diversification. This study examine whether CAPM is valid to forecast the behaviour of the each individual stock and its return as well as its validity in the portfolio with stocks listed in Malaysia. Second, it evaluates the suitability of Markowitz Model to evaluate the performance of the Malaysia investment portfolio. This is done within the framework of 2010 to 2014 using weekly data of 60 companies. OLS unbiased estimator, autocorrelation and heterodasticity problems are to be conducted to test the validity of the model. It is concluded that CAPM is reasonable to be the indicator of stock prices in Malaysia as well as in portfolio basket. It proves that there is linearity in CAPM but unique risk and systematic do not need to be captured. Managers can use CAPM as a proxy to estimate their stock return and diversify the portfolio to reduce the unsystematic risk to enable them to execute the right policy in their management in order to maximise profit at the same time increase shareholder wealth maximisation. Furthermore, it is suggested to apply Markowitz portfolio diversification to reduce the unsystematic risk. Overall, portfolio diversification could build up the investors’ confidence towards the investment decision and to develop a sound investment financial market in assisting Malaysia to achieve its mission to be a developed country in 2020.

Effects of Corporate Governance Characteristics on Audit Report Lags

Abstract: The paper examines the effects of Corporate Governance Characteristics on audit report lag (ARL) of listed banks in Nigeria. Fourteen banks were used in the study. The study covers a five year period from 2008 to 2012. Findings of the study based on robust OLS model indicate that audit quality represented by the Big 4 firms has a significant impact on ARL. Board meetings, board size, total assets and board gender have significant positive associations with ARL. However, the study did not find a significant relationship between board expertise, risk committee size and audit committee size on ARL. Generally, shareholders should maintain the use of big 4 so that report is presented at the right time to enhance confidence of the stakeholders as well as regulators. The current study dwelled on few corporate governance characteristics of the listed banks. Other potentials variables such as Company complexity, ethnicity, leverage and IFRS complexity is not included and beyond the scope of this study. Their inclusions could have given clearer picture of the determinants of Audit Report Lag in Nigerian listed banks.

Moderating Effect of Regulations on Organizational Factors and Construction Risk Management: A Proposed Framework

Abstract: While certain organizational internal and external factors have been found to influence construction risk management among the construction companies. The influence of the organizational factors such as effective communication, team competency with skills, active leadership, political factor, organizational culture, technology factor and economic factor on construction risk management among the construction companies operating in Nigeria have not received considerable attention. This paper proposes regulations as the potential moderator on the relationship between organisational internal factors, external factors and construction risk management.

Re-engineering as the Process of Business Adaptations

Abstract: Reengineering - is primarily a result of information technology. Due to the method of reengineering, we can consider the activities of enterprises, highlighting their function. Every company or organization has a plan. About two hundred years ago, it was shown that by sharing the work, the person focuses on one thing, and it performs better. Guided by this discovery of Adam Smith, the people for a long time applied the principle of division of labour. Currently, the production cannot be called effective. Highly specialized work superseded the multistage division of labour, which requires the coordination of all phases of the production process. Economic viability and competitiveness of the companies must be based on the adoption of new models of organizations. One of the conditions for success in reengineering and its implementation is considered to be the drafting of another, already the updated business process with the implementation of a large arsenal of techniques. To perform reengineering is assigned a person who is the project leader (the company of senior management). Then we formed a team, which includes specialists and experts. Create Committee monitors the implementation of engineering strategy and to monitor the implementation of the project.

The role of intrapreneurship for sustainable innovation through process innovation in small and medium-sized enterprises: A conceptual framework

Abstract: A focus on innovation alone is not sufficient for sustainability in the current hostile business environment. Environment awareness and social impact as well as economic place demands on firms to contribute to sustainable development. As such, there is increased interest in sustainable innovation. On the other sides, intrapreneurship spirit of internal initiative of a firm as firm-specific capabilities is proposed to facilitate this. In the manufacturing firms, process is considered as critical and source to be innovative. Hence, process innovation is utilized to translate intrapreneurship capability for sustainable innovation. To face new circumstances in the business environment for the sustainability of small and medium-sized enterprises (SMEs), the role of intrapreneurship in transforming process innovation under existing technology for sustainable innovation achievement is another interesting view to be explored. This paper discusses the role of intrapreneurship in attaining sustainable innovation through process innovation in SMEs and develop it into an integrated framework. The framework shows that the elements of proactiveness, risk taking and autonomy in intrapreneurship provides a leverage for sustainable economic, environmental and social innovation. The study further suggests empirical investigation in the firms for future research.

Entrepreneurship and Business Ethics: Implications on Corporate Performance

Abstract: The purpose of this research is to examine the impact of business ethics on corporate performance. The hypotheses were set using four main objectives. Data were obtained using both primary and secondary sources. The primary data was obtained by using a structured questionnaire design. Whilst relevant published and unpublished literature provided the secondary data. The total number of questionnaires distributed was 286, out of which 260 were returned. Descriptive and inferential statistics were used for the data analysis. The statistical tools used include frequency table, multiple regression analysis, analysis of variance, correlation analysis. The results showed that there was a significant relationship between the ethical practices of organizations and their corporate performance. Moreso, the employees of the sampled organizations concurred that their organization is highly ethical. Based on these findings, the authors profer the need for clearly defined ethics within corporate organizations as this would guide the employees in their day to day conduct.

The Effect of Information and Communication Technology on Economic Growth: Arab World Case

Abstract: Information and communication technology (ICT), population growth, gross capital formation, openness and inflation are frequently well-thought-out as important drivers of economic growth in all countries especially for developing ones and so for Arab countries in our case. This paper aims to examine the effect of these factors on 18 selected Arab countries’ economic growth during the period from 1995 to 2013. Econometric analysis using panel regression has been adopted to test this impact. Ordinary least square model, random effects and fixed effects model have been applied for the study sample of 341 observations, and in order to choose the appropriate model, Hausman test has been used. For our analysis we used a basic model that includes the dependent variable GDP per capita as an economic growth factor and the main concerned independent variable info density index that represents the capital and labor stock of ICT. Then we extended the model with other standardized macroeconomic control variables mentioned above and applied the three methodologies of regression. The outcomes illustrate that ICT has positive impact on the selected Arab countries’ economic growth as well as the other factors except for inflation which has a negative impact on economic growth for these countries. The impact degree of ICT on economic growth is less than that of other countries especially emerging and developed economists. Keywords: information and communication technology (ICT), ICT index, population growth, gross capital formation, openness, inflation, economic growth, Arab countries JEL Classifications: C33, E22, O47