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Vol. 29(4) , October 2022 |
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Technical inefficiency of the manufacturing sector in Laos: a case study of the firm survey
(pages 314-332)
Vanxay Sayavong
Version of Record online: 08 Mar 2023 | DOI: 10.1108/JABES-11-2020-0134
Abstract
Purpose
This study aims to unlock the path of growth for sustainable economic development and accomplish the government's vision 2030 by ameliorating the productivity of the manufacturing sector in Laos.
Design/methodology/approach
This study applied cross-sectional data of 2,009 firms from the national firm survey, namely the Economic Census Survey (ECS), in 2012/13 in addition to employing the stochastic frontier analysis (SFA) to assess the production frontier and factors behind the technical inefficiency to arrive at policy recommendations.
Findings
The study found that the efficiency level varied across subindustries with an average of 72.51% in full potential production. Out of the five classified groups, Sub4 (chemical and plastic) was found to be the most efficient manufacturer, while the rest in order are Sub1 (food and beverage), Sub5 (furniture and others), Sub2 (garment and textile), and Sub3 (paper and printing), providing the evidence to improve the technical efficiency. This study discovered that the firm's size, accounting system and credit access are crucial to enhancing the production efficiency of all sampling firms. However, these factors might be subject to specific industries.
Practical implications
For the implication to the business community and policymakers, the findings of this study could be a reference in terms of which areas they should concentrate on to improve the technical efficiency as a part of productivity in the manufacturing industry. For instance, it suggests that firms could improve their production efficiency by introducing the accounting system, laborers' skills (education of managers) and engaging in international trade activities. Additionally, it asks policymakers to help private firms by improving the infrastructure, credit access, training and trade facilitation.
Originality/value
It is believed that, as the major contribution in Lao literature, this study is the first research applying the largest data from the national survey – the Lao ECS – examining the technical efficiency in the manufacturing sector in the country, and overcoming the gap of the previous research which recruited few policy variables and applied a small sample size in one specific industry. Therefore, the findings of this study impart more insights into the analysis, providing more effective and credible recommendations to policymakers and firms to improve their technical efficiency and, consequently, their competitiveness.
Employees' preference for the on-site childcare service: a case study of three Sri Lankan apparel firms
(pages 299-313)
B.M.A.M. Balasooriya
Version of Record online: 08 Mar 2023 | DOI: 10.1108/JABES-12-2020-0142
Abstract
Purpose
Childcare is one of the main obstacles for women to enter the labour market as they are the primary caregivers for children. The struggle between childcare and women's employment has caused a high labour turnover in women-dominated industries. The aim of this study is to assess the employees’ willingness for an on-site childcare facility
Design/methodology/approach
The primary goal of this study was to assess the employees' willingness for an on-site childcare facility using the contingent valuation method. For the analysis, 330 data were collected from all levels of the employees in three firms in the apparel industry using a survey-based questionnaire.
Findings
The results illustrate that the mean willingness to pay for the on-site childcare facility is substantially higher for the firm that already provide an on-site childcare facility than the other two firms that do not have childcare facilities. Among all employees who are surveyed, 86.36% of the employees favoured implementation of on-site childcare facilities. According to the survey findings, the newly hired employees have a higher preference for the childcare facility, however less likely to pay for the facility. The monthly income variable has a negative association with the probability of voting in favour of implementing on-site childcare facility. Moreover, the results indicate that the employees who have received the childcare facility have positive attitudes towards the on-site childcare facility.
Originality/value
To the authors' knowledge, prior case studies related to the evaluation of employee's preference for on-site childcare services have not been conducted in the context of industries in Sri Lanka. Therefore, the findings and implications were discussed while expanding the geographical scope of the past literature.
Effects of supply chain collaboration on customer loyalty for household electronic appliances in Vietnam
(pages 280-298)
Nguyễn Bình & Nguyen Hien Thi Thu
Version of Record online: 08 Mar 2023 | DOI: 10.1108/JABES-11-2021-0189
Abstract
Purpose
In an era of global competition, firms need to collaborate for long-term benefits. Researchers have investigated the linkages between supply chain collaboration (SCC), customer satisfaction and loyalty. However, little attention has been paid to these linkages in the home electronics sector. This study attempts to investigate the impacts of SCC on firms' competitive advantage, customer satisfaction and customer loyalty in the home electronics sector of Vietnam.
Design/methodology/approach
Besides aggregation of literature review, the authors conducted an experimental study with a sample of 300 customers who bought household electronic appliances in the first six months of 2021 in Hanoi city, Vietnam. In this study, structural equation modelling (SEM) was used to analyse the hypotheses.
Findings
The findings indicate that SCC has a positive impact on competitive advantage, increasing customer satisfaction and loyalty in the home electronics sector. Evidence also revealed that competitive advantage can be enhanced through information sharing, decision synchronisation and incentive alignment.
Originality/value
This study can be applied to foster a more effective collaboration approach amongst supply chain members in the household electronic appliances sector, which, in turn, will increase competitiveness, customer satisfaction and loyalty.
Undermining alienative commitment through spiritual leadership: a moderated mediation model of social capital and political skill
(pages 263-279)
Moazzam Ali & Muhammad Usman & Shahzad Aziz & Yasin Rofcanin
Version of Record online: 08 Mar 2023 | DOI: 10.1108/JABES-09-2021-0155
Abstract
Purpose
The purpose of the present study is to examine the relationship between spiritual leadership and employees' alienative commitment to the organization, both directly and indirectly, via employee social capital. We also test the role of employee political skill as a boundary condition of the indirect spiritual leadership–alienative commitment link.
Design/methodology/approach
Time-lagged data were collected from 491 employees in various manufacturing and service organizations. Data were analyzed using structural modeling equation in Mplus (8.6).
Findings
Spiritual leadership was negatively associated with alienative commitment, both directly and indirectly, via social capital. Employee political skill moderated the indirect relationship between spiritual leadership and alienative commitment, such that the relationship was stronger when employee political skill was high (vs low).
Practical implications
The demonstration of spiritual leadership's behaviors by both managers and employees can develop employees' social capital at work, which in turn can reduce employees' negative commitment to the organization. Likewise, improving employees' political skills can help leadership diminish alienative commitment.
Originality/value
The present work contributes to the literature on spiritual leadership by foregrounding how and why spiritual leadership undermines employee alienative commitment to the organization. By doing so, the study also enhances the nomological networks of the antecedents and outcomes of social capital and contributes to the scant literature on negative alienative commitment. Given the prevalence and negative repercussions of alienative commitment for employees' and organizations' productivity and performance, our findings are timely and relevant.
Which formula for corporate risk-taking around the world? Exploring happiness as the “black box”
(pages 242-262)
Trần Phương Thảo & Lê Anh Tuấn
Version of Record online: 08 Mar 2023 | DOI: 10.1108/JABES-01-2021-0009
Abstract
Purpose
This paper examines how the degree of happiness affects corporate risk-taking and the moderating influence of family ownership of firms on this relationship.
Design/methodology/approach
The authors use an international sample of 17,654 firm-year observations from 24 countries around the world from 2008 to 2016.
Findings
Using the happiness index from the World Happiness Report developed by the United Nations Sustainable Development Solutions Network, the authors show that a country's overall happiness is negatively correlated with risk-taking behavior by firms. The findings are robust to an alternative measure of risk-taking by firms. Further analyses document that the negative influence of happiness on firm risk-taking is more pronounced for family-owned firms.
Practical implications
The paper is consistent with the notion that happier people are likely to be more risk-averse in making financial decisions, which, in turn, reduces corporate risk-taking.
Originality/value
This study contributes to the broad literature on the determinants of corporate risk-taking and the growing literature on the role of sentiment on investment decisions. The authors contribute to the current debate about family-owned firms by demonstrating that the presence of family trust strengthens the negative influence of happiness on corporate risk-taking, a topic that has been unexplored in previous studies.
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