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Leite, André Luís da Silva, and Nei Antonio Nunes. "Theory of the Growth of the Firm." Revista Ibero-Americana de Estratégia 14, no. 01 (March 1, 2015): 139–41. http://dx.doi.org/10.5585/riae.v14i1.2194.
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Arkolakis, Costas. "A Unified Theory of Firm Selection and Growth *." Quarterly Journal of Economics 131, no. 1 (February 1, 2016): 89–155. http://dx.doi.org/10.1093/qje/qjv039.
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Abstract This article develops an analytical framework to study firm and exporter growth and provides a dynamic foundation for a standard general equilibrium trade model. Firm-level growth is the result of idiosyncratic productivity improvements with a continuous arrival of new potential producers. A firm enters a market if it is profitable to incur the marginal cost to reach the first consumer and pays an increasing marketing cost to reach additional consumers. I calibrate the model using data on the cross section of firm sales and bilateral trade, as well as the rate of incumbent firm exit. The calibrated model predicts that a firm’s growth is inversely related to its initial size, and that the distribution of growth rates of small firms is heavily skewed to the right. These predictions are confirmed by looking at the growth of sales of U.S. firms and Brazilian exporters to the United States. I use this model to study the impact of cross-firm reallocations on economic activity and measured productivity.
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Aghion, Philippe, Ufuk Akcigit, and Peter Howitt. "Lessons from Schumpeterian Growth Theory." American Economic Review 105, no. 5 (May 1, 2015): 94–99. http://dx.doi.org/10.1257/aer.p20151067.
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By operationalizing the notion of creative destruction, Schumpeterian growth theory generates distinctive predictions on important microeconomic aspects of the growth process (competition, firm dynamics, firm size distribution, cross-firm and cross-sector reallocation) which can be confronted using rich micro data. In this process the theory helps reconcile growth with industrial organization and development economics.
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Corsi, Christian, Antonio Prencipe, and Athos Capriotti. "Linking organizational innovation, firm growth and firm size." Management Research: Journal of the Iberoamerican Academy of Management 17, no. 1 (April 8, 2019): 24–49. http://dx.doi.org/10.1108/mrjiam-06-2017-0760.
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PurposeThe purpose of this research is to study the effect of organizational innovation, in terms of the introduction of both new business practices and new methods of organizing workplaces, on firm growth, along with the moderating role of the firm size in this relationship.Design/methodology/approachA panel sample of 4,125 Spanish innovative firms taken from the Technological Innovation Panel for the period 2009 to 2014 was analyzed. Two-Step System-Generalized method of moments approach and instrumental variables approach with two-stage least squares have been used.FindingsThe findings remark the positive effect of organizational innovation on firm growth in case firms introduce both new business practices and new methods of organizing workplaces. Furthermore, the empirical evidences show that the firm size has a role, although partial, in moderating negatively the effect of introducing both new business practices and new methods of organizing workplaces on firm growth.Originality/valueThe study adds some new theoretical insights and empirical evidences into the literature related to the inertia theory in the perspective of the population ecology, incorporating it with the effect of firm size. Furthermore, the study may represent a further part of the complex literature puzzle that links organizational innovation to firm growth, and the inclusion of the moderating role of the firm size will partially provide a deeper understanding of this link.
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Garcés-Galdeano, Lucia, and Carmen García-Olaverri. "How important is family involvement for small companies’ growth?" Journal of Small Business and Enterprise Development 27, no. 4 (May 28, 2020): 531–54. http://dx.doi.org/10.1108/jsbed-06-2019-0190.
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PurposeOur paper seeks to further understand how family involvement in management influences firm growth.Design/methodology/approachUsing a sample of small high-tech firms, we classify three different types of firms: family firms managed by family-CEOs, family firms managed by non-family CEOs and non-family firms.FindingsConsistent with our expectations, we show that firms managed by family-CEOs have less firm growth in comparison with the other two groups. When the family firm is managed by non-family CEOs, the presence of another family member in management positions has a negative impact on firm growth. Finally, we found that founder-led family firms have better firm growth than descendant-led family firms.Research limitations/implicationsImplications for the theory of family firms are discussed.Originality/valueThe value of the present study is to analyse in depth the heterogeneity of the family business trying to close the gap by exploring the effect of family involvement on small firm growth. Thus, we will find different behaviours of these family companies, depending on the family member’s presence in management positions.
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Joseph, John, and Alex James Wilson. "An Attention-Based Theory of Firm Growth." Academy of Management Proceedings 2015, no. 1 (January 2015): 16743. http://dx.doi.org/10.5465/ambpp.2015.16743abstract.
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Leite, André Luís Da Silva, and Nei Antonio Nunes. "Theory of the growth of the firm." Revista Ibero-Americana de Estratégia 14, no. 1 (March 1, 2015): 139–41. http://dx.doi.org/10.5585/ijsm.v14i1.2194.
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Casson, Mark. "The economic theory of the firm as a foundation for international business theory." Multinational Business Review 22, no. 3 (September 9, 2014): 205–26. http://dx.doi.org/10.1108/mbr-06-2014-0024.
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Purpose – This paper aims to argue that management capability is a complement to ownership advantage. Ownership advantage determines the potential of the firm, and management capability governs the fulfilment of this potential through overcoming barriers to growth. The economic theory of the firm is central to the theory of the multinational enterprise (MNE). Design/methodology/approach – Multinationals play an important role in coordinating the international division of labour through internal markets. The paper reviews the economic principles that underlie this view. The analysis is applied to a variety of issues, including out-sourcing, geographical dispersion of production and regional specialisation in marketing. Findings – The economic theory of the firm is central to the theory of the MNE. Recent literature on multinationals, however, makes only limited reference to the economic theory of the firm. Optimal internalisation equates marginal benefits and costs. The benefits of internalisation stem mainly from the difficulties of licensing proprietary knowledge, reflecting the view that MNEs possess an “ownership” or “firm-specific” advantage. The costs of internalisation, it is argued, reflect managerial capability, and in particular the capability to manage a large firm. Originality/value – The paper demonstrates the value of the economic theory of the firm in analysing the strategy, structure and size of multinational firms. It restates classic economic principles and applies them to contemporary issues, including the performance and survival of multinational firms in current times.
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Burvill, Samantha Marie, Dylan Jones-Evans, and Hefin Rowlands. "Reconceptualising the principles of Penrose’s (1959) theory and the resource based view of the firm." Journal of Small Business and Enterprise Development 25, no. 6 (November 19, 2018): 930–59. http://dx.doi.org/10.1108/jsbed-11-2017-0361.
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Purpose The purpose of this paper is to develop a conceptual framework to explain the firm growth process based on an integration and extension, through empirical research, of Penrose’s theory of the growth of the firm and the resource-based view. Theoretical development within the firm growth literature has been noticeably limited. Firm growth studies use different theoretical bases and what is needed is integration of multiple theories and empirical testing of these to form a new conceptual framework capable of explaining the modern growth process fully. Design/methodology/approach The key perspectives are critically reviewed and integrated and empirical qualitative research is undertaken analysing the process of growth in two firms. Semi-structured interviews, participant observation and analysis of company documentation are utilised. Findings The key insight this research provides is detailed information with regard to which resources, mediators and outputs are vital to firm growth, how they need to be developed and why this is the case. The study shows that these act in a cyclical nature to enable firm growth and development. Practical implications These findings could be used by practitioners to determine which part of the conceptual framework requires the most amount of improvement and which are developed to an acceptable state, enabling them to make plans for the achievement of growth. Originality/value This research is able to reconceptualise two dominant theoretical perspectives resulting in the generation of a new firm growth framework, thereby addressing a distinct gap in the firm growth literature.
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FREEL, MARK S. "TOWARDS AN EVOLUTIONARY THEORY OF SMALL FIRM GROWTH." Journal of Enterprising Culture 08, no. 04 (December 2000): 321–42. http://dx.doi.org/10.1142/s0218495800000176.
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The ultimately unsuccessful predictive modelling literature has advanced our understanding of small firm growth processes no further than the descriptive and inflexible stage models approach achieved during the 1970s and 1980s. Consequently, this paper suggests an alternative theoretical starting point. Drawing upon the, predominantly aggregate level, contributions of evolutionary and institutional economists it is the intention of this paper to suggest more appropriate foundations for future firm level empirical analyses. With reference to four detailed case studies a preliminary model of small firm growth is posited and potential areas for future ethnographic and survey based research are signalled.
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Arbaugh, J. B., Larry W. Cox, and S. Michael Camp. "Employee equity, incentive compensation, and growth in entrepreneurial firms." New England Journal of Entrepreneurship 7, no. 1 (March 1, 2004): 15–25. http://dx.doi.org/10.1108/neje-07-01-2004-b003.
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We examined the relationship between employee equity compensation, incentive compensation, and firm growth using a sample of 480 privately held firms from the Ewing Marion Kauffman Foundation’s database of Ernst & Young Entrepreneur Of The Year (EOY) winners. Using frameworks from agency and motivation theories, we argued that larger percentages of both equity- and incentivebased compensation allocated to top managers and employees would be associated with firm growth. After controlling for firm and industry effects, the results of the study showed that while the firms in the sample preferred providing incentive compensation, providing equity compensation for employees was a positively significant predictor of firm growth over a three-year period. These findings suggest that prescriptions for growth in larger firms developed from agency theory also may be applicable to entrepreneurial firms, and founder/CEOs seeking to grow their firms should consider using equity compensation to motivate their current employees and to attract new ones.
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Khurana, Inder K., Raynolde Pereira, and Xiumin Martin. "Firm Growth and Disclosure: An Empirical Analysis." Journal of Financial and Quantitative Analysis 41, no. 2 (June 2006): 357–80. http://dx.doi.org/10.1017/s0022109000002106.
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AbstractExtant theoretical research posits that information asymmetry and agency issues affect the cost of external financing and hence impact the ability of firms to finance their growth opportunities. In contrast, the literature on disclosure policy posits that expanded and credible disclosure lowers the cost of external financing and improves a firm's ability to pursue potentially profitable projects. An empirical implication is that disclosure can help firms grow by relaxing external financing constraints, thereby allowing capital to flow to positive net present value projects. This paper empirically evaluates this prediction using firm-level data over an 11-year period. As anticipated by theory, we find a positive relation between firm disclosure policy and the externally financed growth rate, after controlling for other influences.
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Sutomo, Sutomo, Sugeng Wahyudi, Irene Rini Demi Pangestuti, and Harjum Muharam. "Determinants of financing decision: empirical evidence on manufacturing firms in Indonesia." Investment Management and Financial Innovations 16, no. 2 (June 5, 2019): 159–70. http://dx.doi.org/10.21511/imfi.16(2).2019.14.
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This study aims to contribute to the emergence of the literature focusing on exploring the factors influencing the financing decision, as well as examining the relationship between the firm size, profitability and firm growth towards the corporate debt. Questions such as how relevant firm size, profitability and firm growth to debt are, quantitatively, had not been fully answered in the business literature. The purpose of this study is to fill this large gap by examining the role of the firm size, profitability, investment and firm growth for the corporate debt. This study tries to examine the determinants of debt in the financial literature which include size, growth, business risk, and profitability in accordance with the capital structure theory, in manufacturing firms in Indonesia. The sample contained financial data from 150 firms for the period 2012–2017. The results showed that the manufacturing firms in Indonesia had high debt levels, especially the size, profitability, firm growth and profitability had proven to be the debt determinants, which also confirmed the Pecking Order Theory. This study also found that the management preference of manufacturing firms in Indonesia for risk was the risk-seeker or risk-neutral ones. This finding implies that the choice of funding sources originating from debt still provided greater returns compared to the capital cost needed due to business uncertainties.
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Nason, Robert S., and Johan Wiklund. "An Assessment of Resource-Based Theorizing on Firm Growth and Suggestions for the Future." Journal of Management 44, no. 1 (October 27, 2015): 32–60. http://dx.doi.org/10.1177/0149206315610635.
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Together, Penrosean and Barnean resource-based logic make up the dominant theoretical approach to understanding firm growth. While extant literature focuses on a common lineage between Penrosean theory and the resource-based view (RBV), we explicate divergence at these origins of resource-based theorizing and subject the growth implications of each to meta-analytic testing. RBV’s central tenets concern resources that meet valuable, rare, inimitable, and nonsubstitutable (VRIN) criteria, while Penrose’s theory discusses the versatility of resources. Theoretically, VRIN resources allow firms to exploit unique opportunities, while versatile resources allow firms to recombine resources in novel ways to create growth. Using meta-analytic techniques, we find that versatile resources are associated with higher levels of growth, whereas VRIN resources are not. We offer novel insights into alternative characteristics of resources derived from the same conceptualization of the firm, add greater specificity to the performance construct, and open up avenues for new theorizing on firm growth that is more closely aligned with Penrose’s theory.
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Penrose, Edith. "The theory of the growth of the firm." Long Range Planning 29, no. 4 (August 1996): 596. http://dx.doi.org/10.1016/s0024-6301(96)90295-2.
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Bhattacharyya, Som Sekhar. "Development of a conceptual framework on real options theory for strategic human resource management." Industrial and Commercial Training 50, no. 5 (June 4, 2018): 272–84. http://dx.doi.org/10.1108/ict-07-2017-0061.
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Purpose The purpose of this paper is to propose a conceptual real options theory framework for the firms to use options to mitigate both investment risks and retention of the trained human resources. Design/methodology/approach This conceptual paper is built with logical argumentation. Findings The growth of IT firms has created a demand for quality IT industry employees in substantive quantity in India. IT firms provide training and development (T&D) inputs for developing better skills of employees for better employee and superior firm performance. T&D input requires firm investment. It also creates enhanced market demand for the trained employee. High growth area like IT firms not only competes for market but also for employees. A trained employee might leave the firm that provided the training to join a rival firm which offers relatively better salary, a catch -22 situation. This paper develops a real options-based framework for strategic human resource management (HRM). Research limitations/implications This work integrates the theory of real options and strategic HRM. Originality/value This conceptual work is one of the first attempts to use real options theory on strategic HRM.
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Belsito, Carrie A., Christopher R. Reutzel, and Jamie D. Collins. "Human resource executives and post-IPO firm growth." Journal of Organizational Change Management 31, no. 7 (November 12, 2018): 1401–18. http://dx.doi.org/10.1108/jocm-12-2017-0460.
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Purpose The purpose of this paper is to examine the relationship between human resource (HR) executive representation in top management and the growth of newly public firms. It draws upon research on strategic leadership, strategic HR management and Penrose’s theory of firm growth to consider the role of HRs executives in addressing demands placed upon top managers in the pursuit of firm growth. This study attempts to extend the focus of research on the influence of HR executives on organizational outcomes Design/methodology/approach In order to test study hypotheses, this study analyses data from a sample of US newly public firms that underwent initial public offerings (IPO) during the 2007 calendar year. Study data were analyzed using ordinary least squares regression in order to test study hypotheses. Findings This study provides general support for study hypotheses. First, HR executive presence in top management was found to be positively related to post-IPO firm growth. Second, upper echelon size and the number of firm employees were found to weaken the positive effect of HR executive presence in top management on post-IPO firm growth. Research limitations/implications As a consequence of study design, the results found in this study may be limited with respect to their external validity. Therefore, researchers and practitioners are encouraged to use caution before generalizing study findings to other contexts. Practical implications This study provides implications for top management team staffing and the pursuit of firm growth. Newly public firms appear to benefit in terms of firm growth by including HR executives in top management. The benefits of doing so appear to be reduced for newly public firms as the size of their upper echelons and number of employees increase. Originality/value This study extends research on the firm level consequences of HR executive presence in top management as well as research on factors which influence firm growth.
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Perényi, Áron, and Piotr Trąpczyński. "Incremental or radical development? A dynamic approach to organisational changes and growth of Hungarian ICT SMEs." Journal of East European Management Studies 25, no. 1 (2020): 165–93. http://dx.doi.org/10.5771/0949-6181-2020-1-165.
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This paper explores the dynamics of organisational change by building on firm life-cycle theory. Extant research assumed that the development of firms follows a certain sequence of stages. Based on the life-cycle model, this study evaluates the speed and extent of changes in organisational characteristics and firm growth during the development of ICT SMEs in Hungary. Hypotheses are tested using multivariate statistical methods. Results show that stagnant firms are not significantly different from the ones undergoing incremental changes, but significant growth coincides with radical organisational changes. Our findings highlight that team-based decision making, complex organisational structures and sophisticated information systems coincide with firm growth.
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Arend, Richard J. "The Nefarious Hierarchy: An Alternative New Theory of the Firm." Administrative Sciences 11, no. 1 (February 26, 2021): 21. http://dx.doi.org/10.3390/admsci11010021.
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We propose a new theory of the firm based on the premise that ‘the firm’ characterizes a factor-integrative form of doing business that is often the most effective and efficient structure for doing well by doing bad. We define the terms and requirements involved for such a theory, and fulfill those requirements by explaining what it is ‘to do bad’, and why and when the firm form is especially fitted to that. We do so by building upon basic premises about ‘bad-ness’ and by leveraging the logic of market failures. From this base, we argue a new reason for the firm form to exist and yet be limited in its growth. This leads to six related propositions regarding the relationships between ‘bad’ firms, tolerant contexts and realized social harms. We discuss how to test the ideas, and what the implications are for research on the firm, strategy and entrepreneurship.
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Perényi, Áron, and Andrey Yukhanaev. "Testing relationships between firm size and perceptions of growth and profitability: An investigation into the practices of Australian ICT SMEs." Journal of Management & Organization 22, no. 5 (February 2, 2016): 680–701. http://dx.doi.org/10.1017/jmo.2015.57.
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AbstractGibrat’s Law mandates the independence of firm size and growth, while the resource-based view of the firm implies a positive relationship between firm size and profits, to be concluded in a profit–growth trade-off. Empirical studies of entrepreneurial success however, have demonstrated firms’ ability to reach a state of high growth and profitability, despite the trade-offs encapsulated within the profit–growth nexus. Upon assessing the relationships between past profitability, current firm growth and size in Australian ICT SMEs, results demonstrate positive relationships between all three indicators. This suggests that profitability can be considered the most important precursor of entrepreneurial success, and also that successful businesses do not suffer from the trade-offs implied by theory.
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Matama, Rogers. "Frugality, Family-Cohesiveness and Firm Growth; A Case of Small Firms around Oil & Gas Fields in Uganda." Journal of Economics and Behavioral Studies 8, no. 6(J) (January 24, 2017): 188–205. http://dx.doi.org/10.22610/jebs.v8i6(j).1493.
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Abstract: A common impression is that most small firms largely face resource scarcity challenges that inhibit firm growth. This study concentrates on the elements of frugality, operationalized as spending discipline and delaying gratification as well as family cohesiveness, operationalized as family member supportiveness and usefulness in firms. This study is focused around Uganda’s oil and gas fields and these natural resources are expected to influence to small firms growth. In the current study, firm growth is measured in terms of asset value accumulation over time. Empirical findings on frugality, family cohesiveness and growth aim essentially to answer the overarching dilemma of small firm recurrent failures in Uganda. Results in study show that there is a mild relationship between frugality and family cohesiveness thus augmenting the existing perspectives of the resource based view theory. However, the random effect logistic regression results show contrasting results on the predictor effects of; family financing support, oil and gas operations, frugality, and family cohesiveness on the outcome variable - small firm asset growth.Keywords: Frugality, family-cohesiveness and small firm growth
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STANLEY, MICHAEL H. R., LUÍS A. N. AMARAL, SERGEY V. BULDYREV, SHLOMO HAVLIN, HEIKO LESCHHORN, PHILLIPP MAASS, MICHAEL A. SALINGER, and H. EUGENE STANLEY. "CAN STATISTICAL PHYSICS CONTRIBUTE TO THE SCIENCE OF ECONOMICS?" Fractals 04, no. 03 (September 1996): 415–25. http://dx.doi.org/10.1142/s0218348x96000546.
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In recent years, a breakthrough in statistical physics has occurred. Simply put, statistical physicists have determined that physical systems which consist of a large number of interacting particles obey universal laws that are independent of the microscopic details. This progress was mainly due to the development of scaling theory. Since economic systems also consist of a large number of interacting units, it is plausible that scaling theory can be applied to economics. To test this possibility we study the dynamics of firm size. This may help to build a more complete characterization of the nature and processes behind firm growth. To date, the study of firm dynamics has primarily focused on whether small firms on average have higher growth rates than large firms. To a lesser extent, attention has been placed on the relationship between firm size and variation in growth rate. Our research goes beyond these questions by looking at the relationship between numerous firm characteristics and the entire distribution of growth rates. Thus, it may provide a better understanding of the mechanisms behind firm dynamics. In contrast to previous studies, this research analyzes data over many time scales, instead of just a single time interval. From a scientific standpoint, this work could be useful because it will affect the formulation of firm modeling—one of the basic building blocks of all economic analysis. In addition, this work will have practical applications. For example, there are Federal policies that are designed to encourage small businesses. While such policies might be justified on grounds other than their contribution to growth, any systematic difference in the growth rates of small and large firms might be relevant for evaluating such policies. Also, there has traditionally been a concern that an excessive amount of economic activity might become concentrated in a small number of firms. A more detailed understanding of the firm growth process will provide evidence for whether such concerns have any scientific foundation.
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Tajnikar, Maks, Nina Ponikvar, and Petra Dosenovic-Bonca. "Characteristics of firms with different types of growth: The case of Slovenia." Ekonomski anali 61, no. 208 (2016): 27–47. http://dx.doi.org/10.2298/eka1608027t.
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The authors of this paper develop a new typology of growing and fast-growing firms, based on consistent application of the microeconomic theory of the firm, and thereby addressing some limitations of existing studies that investigate growing and fast-growing firms. A rich database available for the entire population of business entities in Slovenia enables the authors to use the proposed typology and investigate key demographic and other characteristics of firms with different types of growth in the 2007-12 period. The authors conclude that the case of Slovenia and the analysis of firm characteristics confirm the adequacy of the proposed typology.
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Tam, Steven, and David E. Gray. "What Can We Learn from the Organizational Life Cycle Theory? A Conceptualization for the Practice of Workplace Learning." Journal of Management Research 8, no. 2 (February 24, 2016): 18. http://dx.doi.org/10.5296/jmr.v8i2.9093.
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<p>In the world of business and management, the practice of workplace learning is deemed important for firms to survive or stay competitive. However, firm characteristics such as business priorities, management styles, and limited internal resources and capabilities are always organizational factors that affect how firms may practice workplace learning. According to organizational life cycle (OLC) theory, during the firm’s growth from inception, to high-growth, to maturity, firm characteristics differ and the internal resources and capabilities of the firm develop. The literature has discussed the dynamics of organizational life cycle, but little is knownabout how it possibly relates to workplace learning. The paper synthesises the OLC literature and draws the characteristics of three common stages for firms (large or small) to conceptualize different patterns of workplace learning practices, promoting a new page of empirical research potential.</p>
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GARNSEY, E. "A Theory of the Early Growth of the Firm." Industrial and Corporate Change 7, no. 3 (September 1, 1998): 523–56. http://dx.doi.org/10.1093/icc/7.3.523.
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Coad, Alex, and Christina Guenther. "Processes of firm growth and diversification: theory and evidence." Small Business Economics 43, no. 4 (February 27, 2014): 857–71. http://dx.doi.org/10.1007/s11187-014-9566-4.
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Krasniqi, Besnik, and David Branch. "Institutions and firm growth in a transitional and post-conflict economy of Kosovo." Journal of Entrepreneurship in Emerging Economies 12, no. 2 (October 15, 2018): 187–204. http://dx.doi.org/10.1108/jeee-05-2017-0034.
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Purpose The quality of institutions matters for firm growth. Yet, there is a research gap in controlling for moderating effect of size on institutions and firm growth in transitional context and especially in post-conflict economies. Building on institutional theory, this research aims to explore the influence of different types of institutional variables (taxes, corruption, administrative, finance and other barriers) on the growth of firms in Kosovo, while controlling for the firm size moderating effect. Design/methodology/approach The research uses linear regression analysis based on a survey with 451 owner-managers of growing small firms in the post-conflict economy of Kosovo. Findings Corruption and administrative burden are crucial factors that influence firm growth. Corruption is found to have a negative effect, and when moderated by the size of the firm, it becomes positive, suggesting that larger firms make use of informal institutions and create links with public officials to manage institutional deficiencies. This size interaction with administrative barrier variables becomes positive. Other control variables (export status, separation of ownership and control, membership in business association) suggest that managerial-level variables have a positive impact on firm growth. The human capital variable specifically indicates that companies compensate for a deficiency in formal education by providing additional training for employees and their managers. Research limitations/implications Future research based on qualitative research can contribute to a greater understanding of how larger firms use resources to overcome barriers, and to align their business strategies in the weak post-conflict environments. Originality/value This research extends current understanding of how institutional variables interact with firm size and impact firm growth. It also provides implications for policymakers and entrepreneurs/managers for improving the growth of SMEs, and for aligning firms with the institutional environment in post-conflict countries.
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Radinca, Cindy, and Riesanti Edie Wijaya. "Hubungan Kepemilikan dan Kinerja Keuangan pada Perusahaan." JIATAX (Journal of Islamic Accounting and Tax) 2, no. 2 (March 2, 2020): 108. http://dx.doi.org/10.30587/jiatax.v2i2.1285.
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This study aims to determine the effect of capital structure on firm financial performance. This research method uses a quantitative approach. The object of this research is manufacturing firm sector consumer goods industry listed on the Indonesia Stock Exchange in the period 2013-2017. The sample used in this research is 130 years- firms. The dependent variable used is firm performance as measured by Return on Asset (ROA) and Return on Equity (ROE). The independent variable used is capital structure as measured by debt ratio or debt to total asset ratio. And, the control variable used is asset turnover, age of firm, and growth opportunity. The results of this study indicate that the capital structure has a negative relationship and significant on firm performance. This result can be supported by trade-off theory and agency theory. Control variable asset turnover has a positive relationship and significant on firm performance, the age of firm has a positive relationship and significant on firm performance, and growth opportunity has a positive relationship and non-significant on firm performance
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DANES, SHARON M., JINHEE LEE, KATHRYN STAFFORD, and RAMONA KAY ZACHARY HECK. "THE EFFECTS OF ETHNICITY, FAMILIES AND CULTURE ON ENTREPRENEURIAL EXPERIENCE: AN EXTENSION OF SUSTAINABLE FAMILY BUSINESS THEORY." Journal of Developmental Entrepreneurship 13, no. 03 (September 2008): 229–68. http://dx.doi.org/10.1142/s1084946708001010.
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Entrepreneurs have been traditionally epitomized as rugged individuals garnering creative forces of innovation and technology. Applying this traditional, limited, and narrow view of entrepreneurship to ethnic firm creation and growth is to ignore or discount core cultural values of the ethnic contexts in which these firms operate. It is no longer possible to depend solely on human capital theory and household characteristic descriptions to understand the complex and interdependent relationships between the ethnic-owning family, its firm, and the community context in which the firm operates. This paper addresses the complex dynamic of ethnic firms with three purposes: (a) to provide a cultural context for the three ethnic groups composing the National Minority Business Owner Study; (b) to extend the Sustainable Family Business Theory, a dynamic, behaviorally-based, multi-dimensional family firm theory, by clarifying how it accommodates ethnic firm complexities within their cultural context, and (c) to derive implications for research, education and consulting with worldwide applications.
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Wadeson, Nigel. "Internationalisation theory and Born Globals." Multinational Business Review 28, no. 4 (April 13, 2020): 447–61. http://dx.doi.org/10.1108/mbr-10-2019-0123.
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Purpose It has been claimed that Born Globals are incompatible with the Uppsala model, which is based on the firm having a maximum tolerable risk level. This assumption was used to explain observed incremental commitments, with further commitments being made as experiential learning reduces the level of risk faced. This study aims to show that adding a consideration of the role of expected value, including the effects of resource constraints, can reconcile the Born Global and internationalisation process literatures. Design/methodology/approach The theoretical arguments are supported by mathematical modelling of a firm pursuing expected value based on subjective beliefs. Findings While the effects of risk and expected value coincide when firms limit their downside risks by taking an incremental approach to commitments, other factors impacting on expected value can shift the balance of incentives towards earlier and more rapid internationalisation. For instance, some firms are specialised and have high costs of R&D, and so need to achieve early and rapid growth but face small home markets. While resource constraints can lead a firm to expand for some time in its home market before internationalising, the effect can be reversed in the case of the finance constraint for some firms. Originality/value The study shows how Born Global and internationalisation process literatures can be reconciled through a consideration of the effects of expected value on internationalisation decisions. It also provides a novel theoretical analysis of Born Globals.
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KRAICZY, NILS D., ANDREAS HACK, and FRANZ W. KELLERMANNS. "THE RELATIONSHIP BETWEEN TOP MANAGEMENT TEAM INNOVATION ORIENTATION AND FIRM GROWTH: THE MEDIATING ROLE OF FIRM INNOVATIVENESS." International Journal of Innovation Management 19, no. 01 (January 22, 2015): 1550005. http://dx.doi.org/10.1142/s136391961550005x.
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Upper echelon theory and research on innovation have considered top management teams and their behaviour and characteristics as important factors that positively influence innovativeness and organizational outcomes. Yet, innovation research has mostly focused on individual new product projects, and their performance and impact on firm performance. Recent research has started to apply a more holistic view in terms of innovation, by considering firm-wide innovation instead of single new products. Upper echelon research has concentrated on direct relationships between top management team characteristics and organizational outcomes. But recent research calls for mediating effects of the relationship between top management team characteristics and organizational outcomes. Hence, this study introduces firm innovativeness as a mediator between top management team innovation orientation and firm growth. Focusing on small and medium-sized firms, which often represent highly innovative firms, results show that firm innovativeness fully mediates the relationship between top management team innovation orientation and firm growth. Implications and future research are discussed.
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Lee, Huay Huay, Siong Hook Law, and W. N. W. Azman-Saini. "Effects of Financial Development and Institutions On Firm Growth in Malaysia." 11th GLOBAL CONFERENCE ON BUSINESS AND SOCIAL SCIENCES 11, no. 1 (December 9, 2020): 50. http://dx.doi.org/10.35609/gcbssproceeding.2020.11(50).
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This study is motivated by Modigliani and Miller's (1958) financing constraints theory (FCT) and others like Rajan and Zingales (1998), Fisman and Love (2007), and Manganelli and Popov (2013) also sharing similar enthusiasm that firm growth are dependence on access to external finance but subject to macroeconomic environment. Using firm-level data from firms listed in Bursa Malaysia for 2006-2014 period, the study applies dynamic panel system generalized method of moments (GMM) estimation (Blundell and Bond, 1998) to estimate how a country's embedded financial development and institutional quality impacts the linkage of firms' external financial dependence and growth opportunities to firm growth. A dynamic system GMM approach is employed to address the endogeneity and serial correlation concern. Firms which have greater growth opportunities actually grow faster with better financial development with embedded good institutions in the case of Malaysia. So findings concluded that firms experience higher growth through better allocation of finance since they have good potential to grow. This has shed important lights to policymakers in formulating the design of many financial development policies across a wide set of countries aimed at fostering financial markets and banking services sector to provide the vital sources of external financing needed by corporations in financing their investments. A well-functioning financial systems is a necessary condition for promoting firm growth. Keywords:Firm growth; financial development; institutions; external financial dependence; growth opportunities
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Rezende, Sérgio Fernando Loureiro, Ricardo Salera, and José Márcio de Castro. "Confronting Theories of Firm Growth in Light of Degrees-of-Freedom Analysis." Organizações & Sociedade 22, no. 74 (September 2015): 385–404. http://dx.doi.org/10.1590/1984-9230745.
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This article aims to confront four theories of firm growth – Optimum Firm Size, Stage Theory of Growth, The Theory of the Growth of the Firm and Dynamic Capabilities – with empirical data derived from a backward-looking longitudinal qualitative case of the growth trajectory of a Brazilian capital goods firm. To do so, we employed Degree of Freedom-Analysis for data analysis. This technique aims to test the empirical strengths of competing theories using statistical tests, in particular Chi-square test. Our results suggest that none of the four theories fully explained the growth of the firm we chose as empirical case. Nevertheless, Dynamic Capabilities was regarded as providing a more satisfactory explanatory power.
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Lu, Wen-Cheng, and Ruo-Ling Jhuang. "Cash flow and growth considering different ownership structure." Journal of Modelling in Management 9, no. 1 (March 11, 2014): 5–17. http://dx.doi.org/10.1108/jm2-04-2011-0028.
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Purpose – The purpose of this paper is to examine the effect of financial constraints on firm growth considering six types of ownership structure. According to the theory of financial management and asymmetric information theory, external funds are costly for small firms. However, some ownership structures may alleviate cash flow-growth sensitivity. The paper considers different types of ownership structure to study cash flow-growth relation and its sensitivity. Design/methodology/approach – Results are drawn from a dynamic panel data model under the two specific empirical models. Those designs can capture important empirical meanings. Findings – The sensitivity of growth to cash flow decreases significantly when managers control larger proportions of a firm's stock and when a firm belongs to a conglomerate. The findings also show that small and young firms grow faster. R&D and advertising expenditures also motivate a firm's growth, as do profitability and abundant cash flow. Originality/value – This paper uses a dynamic panel data model to investigate the effect of cash flow on firms' growth under six types of ownership structure. The sensitivity analysis of growth to cash flow provides new results for traditional literature. In fact, different ownership structures lead to distinct cash flow-growth sensitivity.
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MAHDJOUR, SARAH. "SET UP FOR GROWTH? — AN EXPLORATORY ANALYSIS OF THE RELATIONSHIP OF GROWTH INTENTION AND BUSINESS MODELS." International Journal of Innovation Management 19, no. 06 (December 2015): 1540009. http://dx.doi.org/10.1142/s1363919615400095.
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What do growth-oriented business models look like? While several economic theories, such as the theory of the firm, are based on the assumption that firms aim to maximise their profits, past research has shown that growth intention is heterogeneous among firms and that many business owners prefer to keep their firm at a size that they can manage with few resources. This paper explores the relationship of growth intention and business models, based on a sample of 135 German ICT businesses. Following an exploratory approach, Mann–Whitney U tests are applied to analyse how different business model designs correspond with different levels of growth intention. The results indicate that growth intention relates to business owners’ decisions regarding the provision of consulting services, the level of standardisation in offered products and services, the choice of addressed markets, the implementation of competitive strategies based on cost efficiency and of revenue streams based on one-time- and performance-based payments. Furthermore, the results show that growth oriented firms are no more likely than non-growth oriented firms to adapt their business models dynamically to changed internal or external conditions.
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Sampson, Thomas. "Dynamic Selection: An Idea Flows Theory of Entry, Trade, and Growth *." Quarterly Journal of Economics 131, no. 1 (September 4, 2015): 315–80. http://dx.doi.org/10.1093/qje/qjv032.
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Abstract This article develops an idea flows theory of trade and growth with heterogeneous firms. Entrants learn from incumbent firms, and the diffusion technology is such that learning depends not on the frontier technology, but on the entire distribution of productivity. By shifting the productivity distribution upward, selection causes technology diffusion, and in equilibrium this dynamic selection process leads to endogenous growth without scale effects. On the balanced growth path, the productivity distribution is a traveling wave with a lower bound that increases over time. The free entry condition implies trade liberalization must increase the dynamic selection rate to offset the profits from new export opportunities. Consequently, trade integration raises long-run growth. Dynamic selection is a new source of gains from trade not found when firms are homogeneous. Calibrating the model implies dynamic selection approximately triples the gains from trade compared to heterogeneous firm economies with static steady states.
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Jaskiewicz, Peter, Joern H. Block, Danny Miller, and James G. Combs. "Founder Versus Family Owners’ Impact on Pay Dispersion Among Non-CEO Top Managers: Implications for Firm Performance." Journal of Management 43, no. 5 (November 17, 2014): 1524–52. http://dx.doi.org/10.1177/0149206314558487.
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Emerging evidence suggests that pay dispersion among non-CEO top management team (TMT) members harms firm performance, which raises questions about why firms’ owners tolerate or even support it. Prior research shows that the key distinction between founder and family owners is that in addition to firm performance and growth goals, family owners pursue socioemotional goals. On the basis of this distinction, we develop and test theory linking founders’ and families’ ownership to TMT pay dispersion. Consistent with our theory, a Bayesian panel analysis of Standard & Poor’s 500 firms shows that founder owners use less TMT pay dispersion and that family owners, relative to founder owners, use more, although that declines across generations. We also provide evidence that TMT pay dispersion harms firm performance. Our theory and results are significant because they help to explain why some owners favor compensation practices that cause TMT pay dispersion, despite evidence that this harms firm performance.
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Lee, Chang-Yang. "A theory of firm growth: Learning capability, knowledge threshold, and patterns of growth." Research Policy 39, no. 2 (March 2010): 278–89. http://dx.doi.org/10.1016/j.respol.2009.12.008.
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Afonso, Oscar. "R&D intensity, economic growth and firm-size growth: theory and practice." Applied Economics 48, no. 32 (February 18, 2016): 2973–93. http://dx.doi.org/10.1080/00036846.2015.1133896.
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Santos, Juan Luis, Tomás Mancha Navarro, and Federico Pablo-Martí. "An Evolutionary Simulation Model of the Effect of Innovation and Firm Dynamics on Market Power." International Journal of Applied Behavioral Economics 5, no. 3 (July 2016): 31–49. http://dx.doi.org/10.4018/ijabe.2016070103.
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This paper presents an agent-based simulation with the main insights from business theory to study firm growth and firm dynamics in a stochastic evolutionary model. Firm growth behavior and firm dynamics are defined according to the results of a panel data for a set of manufacturing markets for the Spanish economy. Then the effect of the economic growth on firm dynamics and subsequently the effect on market power are determined. The article shows that since the emergence of the current crisis three industrial sectors have increased business concentration. These three sectors were the ones with the highest concentration out of the five sectors studied. Product and process innovation are also included in the model and how they modify production and demand. The model presented also shows how firms adapt to changes in desired product characteristics and the effect of crisis on these dynamics.
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Zhou, Fujin, and Wouter Botzen. "Firm Level Evidence of Disaster Impacts on Growth in Vietnam." Environmental and Resource Economics 79, no. 2 (April 30, 2021): 277–322. http://dx.doi.org/10.1007/s10640-021-00562-0.
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AbstractThe theory about the impacts of natural disasters on firms is ambiguous and the empirical evidence on this topic is scarce, which hampers the design of disaster risk reduction and climate change adaptation policies. In this paper we identify the short-run impacts of storms and floods on firm growth in labor, capital, and sales, using Enterprise Census data (2000–2014) for Vietnam. We define storms and floods with three different disaster measures: physical intensities, number of deaths, and economic damage. The performance of these disaster measures is compared by estimating dynamic growth models using the Blundell–Bond system generalized method of moments. We find evidence that flooding increases labor growth and capital growth but reduces sales growth significantly up to 3 years after flooding. We also find some evidence of positive impacts on labor growth and capital growth but mostly negative impacts on sales growth for storms within 3 years after storms strike. The impacts of floods and storms on firm growth are more pronounced and persistent for small and medium sized firms. Finally, unlike at the macro level, the direction and scale of disaster impacts found at the firm level are fairly consistent across the three disaster measures.
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Agnihotri, Arpita. "Corporate reputation based theory of choice between organic, hybrid and inorganic growth strategies." Corporate Communications: An International Journal 19, no. 3 (July 29, 2014): 247–59. http://dx.doi.org/10.1108/ccij-11-2012-0080.
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Purpose – The purpose of this paper is to examine how organizational resources: mass media corporate reputation and relative performance influences firms choice between organic, hybrid and inorganic growth strategies and how industry competition moderates this relationship. Design/methodology/approach – Using panel data and Tobit regression on sample of firms from emerging markets, i.e. India, the study is conducted. Findings – The results indicate that firm's corporate reputation, its relative performance with respect to competitors, positively influences hybrid growth strategy and negatively influences organic growth strategies. Further, results show that competition acts as a moderator of firm's relative performance and growth choice. Originality/value – The study contribute to resource-based view of the firm and corporate reputation literature by the extending the deterministic role of corporate reputation to not only firms’ market-based performance but also strategic choice.
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DOŠENOVIĆ BONČA, Petra, Maks TAJNIKAR, Nina PONIKVAR, and Barbara MÖREC. "FIRM GROWTH TYPES AND KEY MACROECONOMIC AGGREGATES THROUGH THE ECONOMIC CYCLE." Journal of Business Economics and Management 19, no. 1 (May 3, 2018): 138–53. http://dx.doi.org/10.3846/16111699.2017.1422798.
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The paper investigates the role and impact of different groups of firms according to their growth type on macroeconomic aggregates at various stages of the economic cycle based on the entire population of firms in Slovenia. The applied classification of growing and fast-growing firms is based on microeconomic theory. Results exhibit that despite larger year-to-year fluctuations, firms with growth towards their long-term equilibrium contributed most to macroeconomic aggregates, i.e. employment, capital and sales, especially in times of economic prosperity. Firms with growth that shifts them closer to their short-term equilibrium proved to be more important primarily for assuring employment stability. Furthermore, we show that using single growth measures prevents us from identifying all growing firms and capturing the true contribution of particular growth groups of firms to studied macroeconomic aggregates. The paper provides both theoretical and empirical information for managers for designing different types of firm growth and enables policy makers to adopt adequate industrial policy measures.
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Ghafoor Awan, Prof Dr Abdul, Prof Dr ZahirFaridi, and Abdullahi ShahbazAnwer Ghaz. "DETERMINENTS OF CAPITAL STRUCTURE: EVIDENCE FROM PAKISTAN SUGAR INDUSTRY." INTERNATIONAL JOURNAL OF MANAGEMENT & INFORMATION TECHNOLOGY 11, no. 2 (June 30, 2016): 2694–701. http://dx.doi.org/10.24297/ijmit.v11i2.4861.
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Capital structure is one of the most complex areas of financial decision making because of its inter-relationship with other financial decision variables. Poor capital structure decisions can result in a high cost of capital which decreases the value of a firm. Effective capital structure decisions decrease the cost of capital and hence the value of a firm increases. The objective of this empirical study is to analyze the factors affecting capital structure of sugar industry in Pakistan and to check whether the results confirm or not pecking order theory and trade-off theory. Different theories of capital structure have been reviewed like Modigliani and miller theory, trade-off theory, pecking order theory and market timing theory to make assumptions regarding capital structure of sugar firms. The findings are based on empirical results using panel data techniques for a sample of 30 firms listed on Karachi Stock Exchange from 2008-2011. The results show that tangibility is positively associated with leverage whereas size of the firm and liquidity are negatively associated with leverage. The results of profitability and growth opportunities are insignificant.
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Nemmiche, Khadidja, Abdelkader Nassour, and Mehdi Bouchetara. "Firm Growth vs. External Growth: A Behavioral Approach." Financial Markets, Institutions and Risks 3, no. 4 (2019): 16–23. http://dx.doi.org/10.21272/fmir.3(4).16-23.2019.
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A firm is a market contradiction: as a firm grows, the market shrinks. The basis of this statement are theoretical approaches, which are called theories of the company. This work is aimed at determining the boundaries of the company in a dynamic perspective with the aim of finding effective solutions to the process of its growth. The study notes that opportunism as a behavioral factor, as Williamson noted, incurs significant operating costs that encourage the firm to change its boundaries. Therefore, the work focuses on this factor to create a systematic image and a general theoretical basis for changes that affect the size of the company. The main objective of the study is to determine the relationship between the opportunistic behavior of economic agents and the internal and external growth of the company. The author notes that opportunism is an unlawful behavior, often taking place in a double relationship between two legally independent parties and is a consequence of external and internal uncertainty and information asymmetry. The study postulates that the concept of trust, information transparency, or information balance between parties remains a dream for both theorists and practitioners. It has been ascertained that information transparency and a complete understanding between economic entities are difficult to implement in the context of the priority role of personal good over public or, at least, mutually beneficial. The results of the study confirmed the influences of opportunistic actions of economic entities, as predicted in the framework of transaction costs theory, the organizational changes of a company, its scale. The study made it possible to justify the presence of a positive effect of illegal actions on the internal expansion of the company and the negative, expanding the external structure. Keywords: Sourcing, External Relationships, Internal Relationships, Opportunism.
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Lin, Feng-Li. "Do DJIA Firms Reflect Stationary Debt Ratios?" Economies 8, no. 4 (September 28, 2020): 76. http://dx.doi.org/10.3390/economies8040076.
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To form optimum firm capital structure strategies to face unanticipated economic events, firm managers should understand the stability of a firm’s capital structure. The aim of this research was to study whether the debt ratio is stationary in listed firms on the Dow Jones Industrial Average (DJIA). Two vital capital structure concepts regarding pecking order and trade-off theory are fairly contradictory. Using opposing theoretical contexts, the Sequential Panel Selection Method apparently categorizes which and how many series are stationary processes in the panel. This method was used to test the mean reverting properties of the 25 companies listed on Dow Jones Industrial Average between 2001 and 2017 in this study, which is expected to fill the current gap in the literature. The overall results show that stationary debt ratios exist in 10 of the 25 studied firms, supporting the trade-off theory. Moreover, the 10 firms utilizing trade-off theory are affected by firm size, profitability, growth opportunity, and dividend payout ratio. These results provide vital information for firms to certify strategies to optimize capital structure.
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Chen, Wein-Hong, Min-Ping Kang, and Bella Butler. "How does top management team composition matter for continual growth? Reinvestigating Penrose’s growth theory through the lens of upper echelons theory." Management Decision 57, no. 1 (January 14, 2019): 41–70. http://dx.doi.org/10.1108/md-02-2017-0147.
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Purpose Penrose’s argument regarding the managerial constraint on continual expansion over two consecutive periods is termed the “Penrose effect,” a relatively less investigated premise in Penrose’s growth theory. The purpose of this paper is to empirically re-examine the Penrose effect from the perspective of upper echelons theory and investigated how top management team (TMT) composition influences the continual growth of a firm. Design/methodology/approach This study empirically tested the hypotheses based on a sample of listed manufacturing firms operating in Taiwan, a newly industrialized economy in the Asia–Pacific region. Moderated hierarchical regression analyses were applied to test hypotheses. Findings The empirical results suggest that low TMT diversity (in terms of educational, functional and team tenure diversity) is likely to engender a situation in which the Penrose effect might occur. Additionally, the results indicate that the proportion of functional executives plays a significant role in influencing the growth trend over two consecutive periods and may soften the impact of the Penrose effect. Practical implications This paper suggests that appropriate structuring of TMTs and appropriate management of their members’ backgrounds and team tenure diversity can help firms overcome the Penrose effect and grow continually. Furthermore, the proportion of functional executives in a TMT is influential. Originality/value This paper uniquely contributes to the theoretical and empirical development of Penrose’s growth theory, upper echelons theory and resource-based view concerning managerial resources.
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Idris, Adamu Adamu, Hussaini Bala, and Naziru Suleiman. "Dividend policy and political uncertainty: Does firm maturity matters?" Jurnal Dinamika Akuntansi dan Bisnis 7, no. 2 (September 13, 2020): 139–50. http://dx.doi.org/10.24815/jdab.v7i2.16789.
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Previous evidence has shown that numerous factors influence dividend policy, but how political uncertainty influences a firm’s cash dividend policy remains blurry. This study examines the relationship between cash dividends and political uncertainty in Nigeria. More so, the study analyses the interaction effect of firm maturity on the association between the cash dividend and political uncertainty. The study employed an ordinary least squares dummy variable fixed effects with robust standard error on a data set of non-financial listed Nigerian firms. The results revealed that political uncertainty strongly influences a firm’s cash dividend, and a matured firm tends to pay greater dividends than a firm with more growth options. Thus, this finding suggests that matured larger firms pay more dividends during a period of uncertainty. Consequently, the study supported the agency theory and life cycle theory.
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Akcigit, Ufuk, Harun Alp, and Michael Peters. "Lack of Selection and Limits to Delegation: Firm Dynamics in Developing Countries." American Economic Review 111, no. 1 (January 1, 2021): 231–75. http://dx.doi.org/10.1257/aer.20180555.
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Delegating managerial tasks is essential for firm growth. Most firms in developing countries, however, do not hire outside managers but instead rely on family members. In this paper, we ask if this lack of managerial delegation can explain why firms in poor countries are small and whether it has important aggregate consequences. We construct a model of firm growth where entrepreneurs have a fixed time endowment to run their daily operations. As firms grow large, the need to hire outside managers increases. Firms’ willingness to expand therefore depends on the ease with which delegation can take place. We calibrate the model to plant-level data from the United States and India. We identify the key parameters of our theory by targeting the experimental evidence on the effect of managerial practices on firm performance from Bloom et al. (2013). We find that inefficiencies in the delegation environment account for 11 percent of the income per capita difference between the United States and India. They also contribute to the small size of Indian producers, but would cause substantially more harm for US firms. The reason is that US firms are larger on average and managerial delegation is especially valuable for large firms, thus making delegation efficiency and other factors affecting firm growth complements. (JEL D22, G32, L25, L26, O14)
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Sugur, Nadir. "Small Firm Flexibility in Turkey: The Case of OSTIM Industrial District at Ankara." New Perspectives on Turkey 16 (1997): 87–104. http://dx.doi.org/10.1017/s089663460000265x.
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This study draws upon fieldwork to examine the role of the small firm in developing countries with special reference to the Turkish case. The fieldwork was conducted at OSTIM during 1992-93. The study will critically examine the theory of ‘flexible specialization’, which claims that certain developments in capitalist economies, such as a rapid change and differentiation in demand and growth of trade unionism in large production plants, increasingly undermine the system of mass production in large scale firms, and thus favor the growth of small firms. More specifically, it will inquire whether the Turkish case confirms the growth of the small firm sector of the economy in relation to the use of new technology, flexible production techniques, flexible work force and design.