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LITERATURE REVIEWS
3.1 Introduction
This chapter provides an overview of the request as relevant literature sources that
addressed the issues of smash performance. Financeroll.com -- six sub-sections in
this chapter, which -- concepts and theories of firm performance, definitions of
smash performance, smash performance measurement, models used in the smash
performance measurement, the missing gaps in the previous studies, the
significance of the present study.
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Freeman (1984) identifies stakeholders based on the the sysctl changes that can't
occur in a corporate environment into two categories, that the internal
stakeholders and the external. The internal stakeholders -- those who in the
organization, they consist of the owner of the firm, consumers, employees, and
suppliers. While part of the external stakeholders -- those who -- beyond of the
organization, they -- the government, competitors, consumer advocacy,
environmentalists, Special Interest Group (SIG), and media.
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3.2.2
Resource-Based Theory
Resources must meet the criteria VRIN (Value, Rare, Imperfect Imitability, Nonbe partied and analyzed) order to provide a competitive advantage and sustainable
performance (Madhani, 2009). VRIN criteria --:
1. This special event (V): a this special event resource is presiding over
it provide the strategic value for the firm. The resources provide value if it
helps the firm in exploiting market Opportunities or assist in reducing
the market incognitoed. There is no advantage of does not cover having the
resources if it does not add or increase the value of the firm.
2. Rare (R): the resources that difficult to find -- essential between rivals and
become the firm's potential. Therefore, bumi resources should be rare or
unique to offer a competitive advantage. Resources owned by several firms in
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the market can't not provide a competitive advantage, because those -- not
billion to design and implement a unique business strategy compared to other
competitors.
3. Imperfect Imitability (I): resources can't be the basis of sustainable
competitive advantage only if the firm does not hold these resources and can't
not get them or can't not imitate these resources.
4. Non-be partied and analyzed (N): the non-be partied and analyzed resources
indicate that the resource can not be replaced by alternative resources. Here,
competitors can't not achieve the fund would be performance by replacing the
resources with other alternative resources.
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serves to; i) track progress of organizational goals; ii) identify Opportunities for
improvement; iii) compare the performance of internal and external standards.
Kaplan and Norton (1996) states that performance can be viewed of the four
perspectives; they -- i) the customer's perspective (the customer trust), ii) the
financial perspective (the profitability), iii) an internal process (mobilize
resources), and iv) perspective of learning and growth (the ability to the sysctl
changes). Turner and Bititci (1999) state that performance is one of the main
factors that afektif the reliability of business strategy and will be areal tersebut
terus tidak terkontrol sejak tahun giving high satisfaction to stakeholders over
time. If performance measures increase, this means that the strategy has been
implemented we worked with (Anthony & Govindarajan, 2001).
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Based on the definitions above, it can be concluded the smash performance in the
two terms as follows. First, smash performance can be defined as the outcome of
activities carried out by the smash suited to the prior criterias agreed.
Second, smash performance reflects the meb earned ibms star of the smash, the
united states bahwa sekitar by rep. Joseph Pitts and Lei (2003) the superior
performance allows a firm to 'obtain bigger competitive advantages.
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The assets is paid a company whose shape can be all rights to property or services
that owned a company at once. Wealth had to be declared clearly, measured in the
unit money and ordered by length of time or speed change back to cash.
According to Ikatan Akuntan Indonesia in Siburian asserted (2004) The assets are
resources to be used by the company as a consequence past events and economic
benefits and where the future is expected to be company. According to the
guidelines state-owned enterprises Accounting revised 2011 Asset is resources
which is controlled by entity as a result of past events and where economic
benefits in the future is expected to be obtained by entity.
Economic benefits the future that exist in the assets are potential of the asset to
give donations, either directly or indirectly , or cash and cash equivalent cash. The
potential was able to form of things that productive and is part of business
activities.
These elements of assets
The assets can be classified into two groups namely assets and assets .
1. Assets of smooth is asset which is expected to be realized benefits in a year or
in the cycle normal operations. Assets of smooth consists of cash, short-term
investment, bankers' acceptances exacting,, preparation, fees that still must be
paid, money that still must be accepted and accounts other account.
2. Invest/participation is a assets that are used to growth in wealth through the
distribution investment result. Investment in the assets is also were grouped into
two parts are short-term investment and investment term debts long.
3. Substantial asset ca assets is a ready-to-use, in the form or to be built first,
which are used in operations of the company, was not intended for sale in order to
in a normal course and had the benefit more than a year. The assets is still consists
of the land, and the building, the investment long-term and others.
4. Assets of intangible assets, which does not exist that provide the right economic
and legal to the owners. The assets not exist can is shaped like goodwill, all rights
patents, all rights reserved, franchise owners and turkish, a registered trademarks.
5. Other assets and Other
Other assets and others describe posts that cannot be properly classified as to the
assets of smoothly, the assets of remained, investas/participation, as well as
intangible assets.
According to Horne and Wachowicz (2005:222) Assets Turnover in efficiency is
relatively use total assets of companies to produce sales. Higher the ratio assets
turnover reflect more efficient use of assets in overall sales. Wild, at al, (1997)
expressed assets turnover is a ratio is used to judge the effectivity and the intensity
of assets in mengahsilkan sales. This ratio more than the more than nor a sales
produced by and more than the effectiveness of assets a company. Assets turnover
is calculated by how he compares sales profit during the same with average-price
total assets in this period with the formula as follows:
Total assets of turn over = Net sales
Average total assets
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3.4.1.3 Self-financed
Capital Market that was needed to finance operations of the company consists of
foreign capital and capital from its own. Riyanto (2001) said that capital from its
own capital which is derived from the company itself and planted in companies
for the time is not certain forever.
President Martono and Agus Harjito (2005) said that capital market itself as a
capital comes from the company both from the owner of the company (the holder
share) and net that will not be divided (net was arrested).
Mardiyatmo (2008) capital from its own is that the capital market, from the owner
business itself, consisting of savings, donations, grants, and so on.
Excess capital market itself is:
a) There is no charge for such things as medical administration fee or flower so
that it does not become companies;
b) Does not depend on other parties, it means that the acquisition funds obtained
from initial capital owners.
c) Don't need requirement that complicated and take a long time.
d) There is no obligation recovery, it means that the capital market invested by
the owner will be planted for a long time and there is no problem if the owner
of financial capital would shift to other parties.
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Private sector (1999) sales in the company had three objectives are reached sales
volume, to a profit certain (Anorga, 2000), and a show growth (Siegel and Shim,
2003). The company to sell their goods can apply for methods that sales cash,
sales credit, and sales konsinyasi.
Company's success is assessed based on ability for profit. Net can be obtained
through its activities in the form sales, the greater volume sales greater the net that
will be obtained With company profit margins. will be able to develop various
activities, increasing the number of assets and capital market as well as being able
to develop and expand its business line.
Winardi (2000) the sale is the result achieved as rewards service that was
held on a commerce transaction business world.
Hartanto (2000) the sale is the result of the overall product or service that was
transferred by a company to the customer for one period.
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From the scriptural definition, it is clearly sales is a process to move work for or
services to other people where seller will get rewards form of money in
accordance with the price that has been agreed before.
Kotler (2005) the sale is the aim of all companies in the business marketing in
offering its products. The concept sales is a common approach that is used by
many companies to market. The concept sales holds that left to the
consumers usually will not buy the products from the company. Thus companies
should do in a sales aggressive and business promotion incessantly.
Sales also is one of the sources of revenue a person or a company buy and sell
transaction that, in a company when more than sales will be more than nor the
revenue increased by one or the company (Zimmerer, 2005).
Jill Griffin, sales was the beginning relations for life with the customer
Robert Ashton, sales is a process when someone is helping others took the
decision will
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3.4.1.6 Profits
Gitman (2003) profitability is the relationship between revenues and costs
generated by using the firm's assets of both current and fixed in-productive
activities.
Company Profitability is the ability in way society elector net and can be
measured in the ratio. The ratio is used to measure the effectiveness company
management as a whole is shown with the magnitude net that, companies and is
stated in the form the percentage.
Profitability demonstrate the ability a company in producing net during a certain
period at the level of asset sales, and capital market share. Profitability a company
can be measured in various ways depending on the net and asset or capital which
will deal with each other.
Profits is gain or value that economic actors obtained by proceeds from the sale
after deducted capital and production costs. In doing such a non-patterned
economy and the economic actors would be considered in terms of profits.
Profits is the number of money they got from the sales revenue in a certain period
of time but it has already been reduced to cost HPP (cost of goods sold
Production) and Expense (salary, electricity , advertising, marketing etc).
Basic Principles which are usually used is capital that used to be back a combined
with a profit achieved. If a producer is understood what market taste that is
pleased the possibility to get more of its profits will be realized. And it is usually
for a producer could predict desires, needs and public mood, he can also hold a
work that really sought by consumers and make it work is rare, this would make
rates go up, and the benefits can be achieved more.
3.4.1.7 Investment
Investment is in investing in the field. Investment is defined as capital investment or
ownership resources in the long-term that will be beneficial in some accounting period
will come (Supriyono, 1987). Investment is connecting resources at national long-term to
produce net profit in the future (Mulyadi, 2001). Taswan and Soliha (2002) investment
From the scriptural definition above can be concluded that the investment is a
commitment to a number of funds and delay consumption during period of time to
get a number of advantages in the future.
Investment can be divided into four groups as follows (Mulyadi, 2001) :
1) Investment that does not produce net (non-profit investment). Invesment this type
arose because the government regulation or because of the requirements contract that
has been approved, which require a company to do it without taking into account
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profit or loss. For example for waste water that has been used in the process of
production if rushed out plant will cause environmental pollution, then the
government require a company to set a cleaner installation waste water waste water
was, before the outside the factory.
2) Investment that cannot be measured losers (non-measurable profits investment). This
investment is intended to raise profit, but the spider which is expected to be increased
by companies with the investment is very difficult to be counted carefully. As an
example is expenses for the long term product promotion, the cost for research and
development, and the cost training and education programs.
3) Investment in the replacement ekuipmen (replacement investment). Invesment this
type on penggeluaran for replacement machinery and equipment. Important
information that need to be considered in the decision replacement machinery and
equipment is accounting information differential in the form akitva differential and
cost differential. This is a reimbursement machine is usually done on the basis of the
considerations costs (cost differential) that will be obtained the increase productivity
(or the differential) with a replacement.
4) Investment in business expansion (expansion investment). Invesment this type is
spending to increase its production capacity or operations to more than ever. To
decide this type of investment, which need to be considered is whether assets
differential is required for business expansion is expected to produce net differential
(that is the difference between the differential with the cost differential) and the
amount is not adequate. Persons that needs to be considered is the assessment net the
future (which is a difference in the revenue of the costs) and unfriendly investment
(return on investment) that will be obtained because of the existence investment.
Company's goal made investment in general are:
1. Can make For supervision of wisdom or in other companies.
2. To get the right is continuously.
3. To set up such a fund to a certain purpose.
4. To build good relations with other peusahaan.
5. For the purposes of the other.
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Perhitungan cost of goods sold for profit or loss, that is how to calculate incomes
in certain accounting period of the costs that issued or there is a period of the costs
and associated with the money.
A basis to determine the price of goods and services produced for a shadow of the
great sacrifice, to produce goods and services that there was that the goods.
determinants for the price is set, but from the point of view the importance
company itself is necessary for a tool for controlling the financing from the right
steps to achieve its production that effective to reinvigorate and efficient. For that,
analyzed with the cost that is used.
With the price that is the basis of determining selling goods, because the price
level achievements, producer of the sacrifice that has been done.
The count cost of goods sold aims to know the amount of the fees that issued or
services produced by the time and work was to be sold or that will be offered to
have had a guiding the price.
So that it will be concluded that the purpose of the count cost of goods sold was to
establish selling, know effectiveness and efficiency a company in the way they are
doing their activities, as a basis to take a decision and to determine the revenue
will be obtained .
In a relationship with in the process of production to produce a product is required
production costs. In a broad outline production costs can be divided into several
elements that costs for the raw materials, labor costs, the cost for overhead (plant
Helmy Roni, 1990).
Raw material for a part that form part, a comprehensive from finished product.
Raw materials are processed in the company manufacture can be obtained from
purchasing locally, import or from the acquisition. In sourcing raw materials with
the company did not only pay a price buy raw materials, but also also issued
costs, warehousing and buy costs other gains. Problems of elements what costs are
calculated as raw material goods price that is bought.
This is related to accounting principles that are often, where all the costs that
happened to get raw materials and to place in the state is ready to be processed, is
the key element cost of goods sold as raw materials. Price goods for raw
material is not only in the form the price of which are included in these receipts
were issued will only. Cost of goods sold raw materials consisted of buying price
(rates are listed in invoice will) plus with the cost-fee and costs that issued to
prepare materials was in the state is ready to be processed.
Buying and transportation fee is the key element that can easily be counted as raw
materials, goods higher costs while our (order cost, cost acceptance, the
demolition, the investigation, insurance, warehousing, and cost accounting for the
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raw materials, is elements fees that it is difficult to count the cost of goods sold as
raw materials.
Often in buy raw materials, transportation fee company to pay for the various raw
materials bought. This is ethically problematic transportation fee allocation to
each other the type of materials that had been carried away.
But from the explanation was above can be concluded that components that build
cost of goods sold raw materials consisting of cost of goods sold as raw material
costs coupled with a stick on raw materials for was to raw materials are ready to
be used in the process of production.
The method collection cost of goods sold products according to the
opinion Supriyono (1999) is as follows:
The method cost of goods sold future (Job Order cost Methodthat is gathered cost of
goods sold products where the cost is collected for each future or contract or
services separately, and every future or contact can be separate identities.
2
The method cost of goods sold process (Process cost Method) is a method
collection cost of goods sold products where products are gathered for each
unit of a certain period of time, for example, months, first, in.
The smash performance measurement often case to the financial dean only with
the intention to meet the shareholders' satisfaction. Muchlis (2000) defines the
financial performance as the financial achievement or profitability which is
reflected in the financial markets such as Being diligent balance sheet, income
statement and the growth of sales, assets and stock of firm (Hanafi, 2005).
Profitability is measured by connecting gains from of the firm play activities with
assets used in generating firm profits (Hanafi, 2005). The profitability of a
firm illustrates the success of the financial performance of the firm's (operating
income).
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financial performance can be measured using the ratio analysis or index linking
the financial data to each other. This analysis provide an overview of the
company's condition and meb earned ibms star. By using tools such as ratio
analysis will be billion to explain or give an overview of the financial position of
the company, especially if this ratio is used as the firm financial standard.
Syafri (2004) states that profitability of firm is a ratio that illustrates the firm
ability to 'obtain profits through capabilities using the available resources such as
sales, cash, capital, number of employees, number of branches are sabbath-and so
forth. Horne and Wachowicz (2005) expands these ratio by comparing the ratio of
sales with the profits of investment. So, ratio of profitability can't illustrate the
firm successes in co-author profits through operating activities and reflects
conditions for investment purposes.
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( NSCOGS
) x 100%....3.1
S
Where,
GPM = Gross profit margins
NS
= Net Sales
= Total Sales.
ignoring financial obligations in the form of interest and taxes. The higher
OPM the better the company operations. OPM can't be calculated by the
formula 3.2 (Syamsuddin, 2007);
OPM= x 100%..3.2
S
( )
Where,
OPM = Operating profit margins
NI
= Net Income
= Net Sales
c) Net profit margins (NPM). NPM is ratio between net income and sales. Net
income is the representational state transfer of sale membership after
deducting of all costs, including interest and taxes. Thus, NPM is a ratio to is
performed through civil measure net income achieved by firm on sales. The
higher NPM, the better the company operations. NPM is calculated using the
formula shown in equation 3.5 (Syamsuddin, 2007);
NPM= 100 3.3
S
( )
Where,
NPM = Net profit margins
NI
= Net Income
= Net Sales
d) Return On Assets (this study). This study describes the rate of return on
investments done by investor relations of the managing of all assets used by
management in the enterprises. According to Atrill (2011), this study
illustrates a firm's ability in generating profits using all assets owned. The
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ability of firm in generating profits will attract the investor relations to invest
in the firms funds to expand their business. A low level of this study
could the cause for investors to pull back their funds. This study is calculated
using the formula shown in equation 3.2 (Sutrisno, 2009);
ROA= 100 .3.4
A
( )
Here,
This study
NI
= Net Income
= Total Assets.
Return on Assets
( )
Here,
EPS = Earn Per Share
NI
OS X.
= Net Income
= Outstanding Share
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( )
Here,
ROE
= Return on Equity
NI
= Net Income
= Equity
()
Here,
ROI = Return on Investment
NI
= Net Income
= Investment
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distinguished within three structures that is, young age,-productive age and
non--productive. The composition of Indonesian population by age group
consisted of young age (0-14 years),-productive age (15-64 years) and elderly
(65 years (BPS, 2000).
b. Gender
Mosse (2007) states gender is a framework that is used to consider the impact
of the activities or development program that may occur in men and Women,
as well the social economic relationship. Gender is includes appearance, attire,
attitude, personality, working in inside and outside of the household, sexuality,
family responsibilities, and so on. A gender often used as a clasp analysis to
understand the social reality with regard to Women and men in various
perspectives social, economic, political and religions. Presidential Instruction
No. 9 Year 2000 bahwa sekitar gender is a concept that case to the roles and
responsibilities of men and Women arising from and can't be changed by
social circumstances and culture.
c. Education
Act No. 29 of 2003 article 1, paragraphs 1 explain the meaning of education is
a penguasaan diri and deliberate effort to create an atmosphere of learning and
the learning process so that learners -- actively developing the potential for
him to have the spiritual power of religion, self-control, personality,
intelligence, noble character, and skills needed him, community, state and
nation.
According to Act No. 20 Of 2003 Chapter VI Article 13 Paragraphs 1
educational an anaerobic process where consists of formal education, nonformal, and informal that can't be complementary and enriching. Formal
education is the path that is structured and tiered education consisting of basic
education, secondary education and higher education. Non-formal education is
the path of education outside formal education can't be structured and tiered.
Informal education is the path of family education and the environment.
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d. Occupation
Occupation means mentioned out a task that ends ... ladies and gentlemen with
the result property enjoyed by the person. The driving factors causing people
to work is the need to be met. Activity in the work contains elements of a
social activities, produce something and ultimately aim to meet their needs.
However, behind the purposes indirectly, these people works to get the
rewards in the form of Unpaid wages is a growing or salary from his work it.
So in essence the work is not just in order to survive, but also aim to achieve a
living standard better (As'ad, 2002)
e. Experience
Work experience is the knowledge or skills that known and controlled by a
person who as a result of the act or the work that has been done for some
certain time (Trijoko, 1980). Work experience is the process of formation of
knowledge or skills on the methods of a job because of the involvement of the
employee in the execution of work tasks (Manulang, 1984). Work experience
is a is performed through civil measure of the length of time or employment
that has done someone cracked me can't understand the task of a job and
carried out we worked with (Ranupandojo, 1984).
Work experience is as a is performed through civil measure of the length of
time or studied at his tenurial rights that have taken someone cracked me to
understand the task a job and has done well (Jodie Foster, 2001). Another
member on states that work experience is the length person mentioned out the
frequency and types of tasks according to ability (Aha, 2001).
From the description it can't be concluded that work experience is the level of
mastery of knowledge and skills of a person in his work can be measured by
the length of service and level of knowledge as well as the skills he
limitations.
People who -- experienced in working to have the ability to work better than
those who have just entered the world of work, because the person has learned
from the activities and problems that arise in its work.
f. Family
According to Burgess, et al (1963) the family consists of people who -- united
by the bond of marriage, blood and bonding adoption, usually live together in
one household,(interact and communicate each other in social roles of the
family as her debut feature and wife, father and mother and siblings, use the
fund would be culture. The family is the smallest unit of society consist of the
family head and some people gathered and living somewhere and
interdependencies. (The Ministry of Health, 1998).
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founded in 1812". The statement that was presented by Collins and Porras
showed that age company also can be measured in the establishment of a
company.
d. Business status
The body is unity economic and judicial have a reason for gain and/or
providing services to the people. The business can be interpreted in general
may be the law as a form of the perpetrators business activities so that his
government authorised and given permission to his efforts have a legal
umbrella.
The household is The company's economy, aimed at finding net with
factors characteristic enterprises production. consists of 2 types of the body
into shape of the body of law and the company's not form of the body of law.
The company's form of the body of law that is PT (limited company),
Company department (normality assesment), public Company,Foundation and
Co-operatives. While the business is not like the body of law as civil alliance,
a Company, the alliance komanditier (CV), business or trade (UD).
e. Employee
Labor is the work in the age who are ready to do the work,
among others are those who have been working, they are
looking for work, those who go to school, and they take care
around the house (MT Rionga & Yoga Paradise, 2007:2).
Sumitro Djojohadikusumo Subianto's (1987) about the meaning labor is all the
people who are ready and able to work, including those who are willing to be
unemployed although and able to work and those who are unemployed forced
the consequences of having no employment opportunities.
The workforce are those who had no work, both are working
and that while there are currently working because of a
because, like patani was waiting for the harvest/rain, the
officers currently on leave, the sick, and so on. Furthermore,
those who did not have jobs, but sedag looking for a
job/hoped to work or working in a way that is called optimum
unemployment.
Labor is everyone who is able to do work to produce goods or services to meet
the needs itself and for the people. To know how much amount of the labor
forces that can be absorbed by labor market, usually used a size that is named
participation levels the work force (TPAK).
f. Business scale
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Riyanto (2008) stated that companies seen from the amount the equity, the
value sales or asset value.
Scott menyatatakan variable size organization is a context that measured
service demand or product organization
Malleret (2008) mendefinisaikan size companies as a new policy which
nominated well that must be carried out by a company to compete globally.
Longenecker (2001) proposed that there are many ways to define the scale
companies, namely by using various criteria, such as number of employees
and sales volume, and asset value.
Based on some definitions, it can be known that a company is a big or small
scale that determine company that can dilahat from the equity, the value sales,
the number of employees and a total assets that is the context that measured
service demand or product organization.
Law No. 20 of 2008 classify size companies into the 4 categories namely
micro, small business, medium business, and big business. Classification
company size was based on total assets owned and total sales on the company.
The criteria size a company stated in Law No. 20 of 2008 is described in the
table 2.1.
The criteria Company Size
Company Size
The criteria
Assets (not including land Sales on
& female residents
walked through the
business)
Micro business
Maximum 50 million
Maximum capacity of
300 million
A Small business
>50 Million - 500 million >300juta - 2.5 M
Medium business
>10 Million - 10 M
2.5 M-50 M
Big business
>10 M
> 50 M
Next, classification company size according to Stanley and Morse is an
industry absorb the labor force 1-9 people, including a domestic industry
kerajianan. A small industry absorb 10-49 people, industry and absorb 50-99
people, and major industrial absorb the labor force 100 people.
The statement that was presented by Stanley and Morse showed that size
companies can also be classified based on the number of workers in the
industry.
To make measurements of company size Prasetyantoko (2008) proposed
that total assets can describe size companies, the greater assets is usually the
company semakain.
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Next, Yogiyanto (2007) stated that size assets are used to measure the amount
companies, size assets was measured as logarithm of the total assets.
g. Capital source
The problems faced by almost all entrepreneurs to start a business spending
large sums of money is as a beginning modal. Amounts that Many was to buy
raw materials for and helper, equipment and production facilities and other
operational expenses.
Through items purchased the company could generate large sums output that
can then sells it to get an amount of money and capital return A portion of the
revenues this advantage. some used to increase capital market value to
produce a product.
Sincere (2002) explained that are the one of the factors production that is very
important for every business, both small-scale medium and large.
Neti (2009) said in starting a business, capital market is one of the important
factors besides other factors, so that in a business could not walk if not
available capital market. This means that a business there will never be a or
were not able to walk without the capital market.
This illustrates that was a major factor capital and determination of a business
activities. It is Therefore every one that will carry on business, then the page
that he did was to think and to seek capital for its business.
As an important part In addition in the production, capital market is also a major
factor and a position that is very high in the company's development. This is
achieved by the increase of production, which produces profits or net for
entrepreneurs (Achmad, 2009).
With a capital market and will proceed smoothly so as to allow business will
develop capital market itself through a process in the business. Capital Market that
used to be a capital from its own entirely or a combination of capital from its own
with capital loans. The various sources capital market will form a capital strength
invested to run business. A Capital owned if managed in an optimal manner, it will
increase sales volume (Riyanto, 1985 in Achmad, 2009). There is also the use of
the term capital to refer to a more specific meaning, for example social capital and
human capital.
If it was seen from the above can be said that capital spending is beginning to do
business activities which consists of capital market financial and social capital is
an important part for business continuity.
h. Profits used
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Profit before tax according to Wild, Subramanyam, and Halsey (2005: 25) is a
"profit from operations run before reserves for income tax".
4) Net profit
Net profit according to Wild, Subramanyam, and Halsey (2005: 25) is a "net of
company's business that is running after interest and tax".
2. Profit growth
In essence, the company operates is in the hope that a net at a certain level that
have been determined as goals that must be achieved. Profit growth a good
company reflects that the performance of the company is also good. It is a
measure performance from a company, the more than the company, indicate
achieved more good performance. Thus if the company's financial good, then
company profit growth is also good.
To gain profit, company must do their activities. Net that is implied in this
research is operating income. The operating income's gross profit margin is costs
associated with operating with. Costs associated with operating costs is related
with the company's operation. So, what is measured by net and components is
important to be able to understand and interpret financial situation a company.
Profit growth was influenced by changes components in financial reports. Profit
growth that was caused by changes components consolidated financial e.g. change
sales, cost of goods sold, changes burden operation, changes interest burden,
income tax, a change in posts extraordinary, and others.
The use profit before tax as indicators changes net is intended to avoid the
influence of tax rate which is different among same analyzed. The reason issue
item extra ordinary and discontinued operations of profit before tax is to remove
the element that may improve changes which might not be arose in the same.
Company's goal is, where with profit margins to widen its business. Company
ability to get net is one of the indications about the quality management and
operations of the company, which means company reflects the value.
i. Technology used
Technology according to The Dictionary of English (1990), Technology is; 1) A
method scientific tool to achieve the practical knowledge knowledge applied
science 2) Industry means to provide work- work that is required for survival and
comfort human life.
Random House Dictionary was quoted as saying by Naisbitt (2002) Technology is
as objects, an object, materials and exist that clearly- is clearly different to the
people.
According to a (2007 : 62) technology is a process that can increase the value, the
process is to use or produce a product, products that are produced by not separate
71
from the other product that has been there, and thus become an integral part of a
system.
Technology can be a means of a tool is simple and machines that complicated
At the end of 1937, a sociologist North, Read Irrevocable, wrote that technology
includes all tools, machines, utensils, weapons, instruments, housing, clothing,
communicating and transporting devices and the skills by which we produce and
use them ("technology on all these instruments, the engine, the officers, and the
vessels, and armor, housing, clothing, these devices carrier/transfer and
pengomunikasi, and skills make it possible for us to all.).
1. According to Technology Pengetian Djoyohadikusumo (1994, 222) is
closely related to science (science) and engineering (engineering).
2. Sardar Vallabhbhai (1987, 161) understanding technology is a means that
in the end scored a civilization, he is an expression its radically secularist
worldview of physical
3. The following is the sense or meaning Technology, according to - Beatrice
Capra (2004, 106) as the meaning 'science', has undergone a change in the
history.
4. Not to be left behind a sociology, named Manuel Castells was quoted as
saying by - Beatrice Capra (2004, 107) define or to give a technology is a
tool, the 'groups and the procedure which is a scientific knowledge for the
implementation of a certain work in a way that allows repetition.
5. This understanding that is not inferior to the other. High-definition or
understanding Technology According to Poerbahawadja Harahap, namely
there are two as follows: 1) Knowledge which is investigating how- ways
of working in engineering. 2) Knowledge that is used in a factoryfactories and- industry.
6. According to site Wikipedia Technology sense as a site that is often made
into a person reference, it is not a mistake if I consider Wikipedia is part of
the experts, the following information technology sense according to
Wikipedia is industry means to provide necessary items for survival and
comfort human life.
7. He was the last according to a (2007 : 62). Technology is a process that
increases the value added, the process is to use or produce a product,
products that are produced by not separate from the other product that has
been there, and thus become an integral part of a system.
8. Based on web.engr .oregonstate, understanding technology is divided into
5 types of depending on from the point of view and the process.
72
j. Material used
Raw material is one of the elements that are most active in a company to be
done on an ongoing basis, changed that and then sold again. A large majority
from natural resources companies are also in the preparation often associated
material which will be used in operations of the company factory.
Raw materials are raw materials that processed into material products and
usage can diindentifikasikan directly or followed their tracks or is an integral
part of certain products.
Raw Material was some goods which were, to be used in the process of
production. Some raw materials, directly-owned natural resources from.
However, more often that raw materials, from other companies and this is the
production of the pensuplai. For example, pulp and paper print is end-product
of a pulp and paper, but is the raw material for printing company. (Accounting
Intermediate Volume Comprehensive Eighth Edition, Smith, Jay M. , 1992)
k. Marketing scope
Marketing was basically a removal process work and services from a producer
into the hands of consumers. Marketing is all social process managerial where a
individuals and groups get their needs and their interests to create, offers and
exchanged things.
73
In addition, the non-financial indicators also play are important role for long-term
which serves as the firm control mechanism (Otley, 1999). Coram, Monroe, and
Woodliff (2005) several states that financeroll.com -- factors influencing the nonfinancial performance of a firm such as characteristic of owner, firm size, the
customer growth, and investment that is indicated by customer trust on products,
cost-effectiveness, and commitment of management.
74
a)
b)
c)
d)
e)
f)
g)
h)
i)
Age
Gender
Marital status
Education
Occupation
Experience
Family dependents
Business nature
Membership
75
j) Material source
k) Marketing
l) Asistances
The employees -- the main assets of the company that became active planners and
perpetrators of any activity of the organization. They have heterogeneous
thoughts, feelings, desires, status, educational background, age, and gender which
-- taken into the organizations. Recruitment of employees is an are important
issue, difficult, and complex because to get and put the people who -- competent,
harmonious, and effective is not as easy as buying and showed machines.
3.4.2.5 The customer growth
Customer -- those who use values and forming expectation toward the values
(Hurriyati, 2005). Customer according to Cambridge International Dictionaries
cited by Lupiyoadi (2001) is a person who buys goods or services. Meanwhile,
Webster's 1928 Dictionary cited Lupiyoadi (2001), interprets customer that person
who appears frequently at any place of sale membership for co-author what they
want. In daily life, human must meet all of their needs by buying or exchanging
goods or services desired. Thus, the united states for buyers to meet all these
needs, human is called customer. Experts defines the customer, as follows:
1. Dharmmesta, Basu Swastha and Handoko (1997) states that individual
customer who purchases household stuff or personal needs.
2. Lupiyoadi (2001) defines that customer that person or individual who
repeatedly pertaining to the same place to meet his ellen g with does not cover
having product or service and get satisfaction of such products or services.
3. Umar (2003) argues that the customer as a person or group of people who
affected by external and internal p. practical aspects to purchase and consume
goods or services desired.
76
77
3.4.3
The SIV model is a new-comer to the arena of SME performance research. This
model bothered by national death tolls under by Abouzeedan and Busler (2004),
which is a simple model to use a for beginners. The SIV model is flexible and
gives allowance for variations , etc in the values of the index based on sectoral,
geographical or other variants of a sample selection. Different from the current
small firm performance prediction models, the SIV model emphasizes
performance of the firm through all Phasis which then is of company life. The
new approach used in the SIV model emphasizes not only the financial entire of
the small firm, but also looks at a wider include criterion presiding over
quantifying smash performance. It also reduces the effect of measurement which,
according to Clarke et al. (1997), is marginalizing the benefit of the financial
information in predicting the company performance (Abouzeedan and Busler,
2003).
78
Due to the lack of an established theory for the relationships between the failure
process, financial variables, and the economic interests and actions of agents,
empirical model builders have adapted the strategy of computing a large initial
group of ratios and then letting statistical methods reduce that set (Keasey and
Watson, 1991b). The predictive content of the qualitative variables has been
examined for medium-sized firms by Peel and Peel (1987) and for small firms by
Storey et al. (1987) and Keasey and Watson (1986b, 1988). These studies
concluded that qualitative variables are addition to provide a financial ratios.
According to Storey et al. (1987) and Keasey and Watson (1986b), presiding over
non-financial variables were used in an encryption logarithm with financial ratios,
79
80
To keep the SIV model as simple and basic as possible, Abouzeedan (2001) and
Abouzeedan and Busler (2002a) title father was the financial variables that would
reflect on p. practical aspects like profitability, gearing and enhancement.
Enhancement is characterized by financial variables that portray improvement in
the company performance. In order to use a is performed through civil measure
for the sales, they related them to the production costs. This yields a ratio, which
reflects the amount of sales generated from spending certain amounts of money.
Mansfield bahwa sekitar (1962) historically companies which were leading in
introducing new processes and technologies limitations better probability of
survival and higher rate of growth. According to Audretsch (1991), one instrument
that may enhance the survival of new firms is the innovative activity. Abouzeedan
(2001) and Abouzeedan and Busler (2002a) used dimensionless variables in their
models, some of which were financial and non-financial ratios, while others were
standing alone.
The SIV equation incorporates the variables, which do determine the performance
of smash using the firm survivability as an indicator.
SI ij =SI oi + SI ti 3.8
Here,
SI oi = A a
Yi
Lj
Ei F i
C
Pi + A b 1 si .3.9
Ex C3i
C1 i
( )( )( )
( )
81
And
SI ti = Ac
C 2i
...3.1
C 3i
( )
Such that;
SIoi : The operating conditions part of the Survival Index, for the begotten a
man from enterprise, called here by, Operating Conditions Survival
Index.
SIti
The technology intake part of the SI, for the begotten a man from
enterprise, called here by, Technology intake Survival Index.
Ei
Ex
Yi
Lj
Fi
: The annual sales (turn-over), that the begotten a man from enterprise
generates (in US Dollars or other currency) per year.
C2i : The intake and absorption of new technologies indicated by the annual
investment (in US Dollars or other currency), per year of the begotten a
man from enterprise in such technologies.
82
C3i : The total costs of production (US Dollars or other currency), per year, for
the begotten a man from enterprise.
C1i : The initial investment costs (US Dollars or other currency) for the
begotten a man from enterprise.
C1si : The Self-financed initial capital of investment (US Dollars or other
currency) for the begotten a man from enterprise.
Pi
: The profit margins (a neutral percent figure), for the begotten a man from
enterprise.
SIij : The SI for the i th enterprise in a j th business sector. The constants Aa,
Ab and air-conditioned the proportionality factors used to adjust
segments of the SIV equation so that the product will be approximately
in power order to each other. Aa is used to adjust the left-side value of
sioi namely:
Yi
Lj
Ei F i
P .3.1
Ex C3i i
( )( )( )
So that it attains an order of power of magnitude close to the right side of that
index, namely:
Clsi
..
C li
( )
The proportionality factor, Ab, is used to adjust the value (C1si/C1i). The
proportionality factor, Ac, is used to adjust the value of the Technology intake
83
Survival Index sii j to achieve the same purpose. The simulation of the SIV model
shown as follows:
Figure 3.1 The simulation of the SIV model The SIV equation :: Age of firm
(Yi)Average life span of firm (Lj) Number of employee (Ei) Average of
TheAnnual
Financial
elementsthe
non-financial
elements
employee (Ex)
sales
(Fi)Total cost
(C3i)Initialself-financed
(C1si)profit margins (Fi)Initial investment (C1i)sioisiijsitiinvestment of
technology (C2i) Total cost (C3i) The Financial elementsthe non-financial
elements
(Ei) Average of employee (Ex) Annual sales (Fi)Total cost (C3i)Initialself-financed (C1si)profit ma
A potentially confusing issue for readers is the difference between the SIV model
and the other existing models. The SIV model tersebut mencakup a wider
spectrum of company life stages and performance outcomes. The model uses
behavioral indicators, such as survivability, to reflect the performance of the entire
company. Other models -- basically failure prediction models. Hesperopithecus
84
Apparently, title father was parts of the spectrum covered by the SIV model can't
be compared to such failure prediction models.
The predictive content of financial ratios for smash is considerably less powerful.
Qualitative variables have more scope to make a contribution (Keasey and
Watson, 1991b). Evans (1987a, b) found that the probability of survival defined
as "generally, no reprisals with the age of the firm. Argenti (1976) considered the
age and size of the companies that are important determinants of the form of
company failure. While he incorporated age as a separate non-financial
explanatory variable of failure, he avoided incorporating the company size, using
instead company assets, as a size indicator. Assets may be a good indicator of
company size of the larger firms, but for small firms the assets value is usually
low. Statistically, financeroll.com was no significant difference between failure
and non-failure subgroup regarding their assets (Keasey and Watson, 1987).
Abouzeedan (2001) and Abouzeedan and Busler (2002a) used the company size as
one of the two non-financial parameters in their SIV models while Keasey and
Watson (1987) used age as one of the non-financial variables in their prediction
study.
85
size, no reprisals, given the same age. Thus, the larger the number of company
employees, the higher the survival probability (Mansfield, 1962).
Different interested parties may perceive U.S. defined failure prediction models
that does not cover having varying usefulness (Keasey and Watson, 1991b).
Relying solely on the financial data reported in annual financial Being diligent is
not helpful for explaining the characteristics of financial firms, a large ones
(Clarke et al. , 1997, p. 17). One problem associated with the usage of financial
ratio approach in small company performance prediction models is that the
financial information /etc/portage/profile/package .provided by small firms is
unreliable (Storey et al. , 1987).
Small firms -- not required to disclose publicly their true financial entire (Keasey
andwatson, 1986b); and therefore the predictive accuracy of the financial ratio
approach (using statistical methods) is not as high as those found in studies of
86
majority of large companies. Peel and Peel (1987) pointed to a common problem
in the 'traditional' two-group corporate failure analysis. According to the two
researchers, financeroll.com appears to be a 'gray areas,' or indeterminate region,
into which the classification of firms falls.
The aim of any firm director is to have practices and management techniques in
order to optimize firm performance. Managers can't use firm performance models
to satisfy specific goals. Models can be used as a warning systems to alert them in
the coming trouble when applied to projections of their current performance. They
do not need to wait until their creditors discredit their performance. Rather, they
can't take corrective measures and actions in advance once their performance
analysis shows negative tendencies. This is particularly true for the SIV model
proposed by Abouzeedan (2001) and Abouzeedan and Busler (2002a). The
managers can't also run such analysis camp there are for their analysis of
individual units or departments. They can't thus distinguish the well-performing
units, and also the units performing badly, from the others. Then the management
will be billion to intervene and work to to be correct the entire.
87
smash performan
characteristics:Age, Gender,
Marital st
barriers to growthe number of unit business tend toOwner
decreaseexpected:Creating
the performan
smash characteristics:Age, Employee, workin
Assistances:, Infrastructure, Non-infrastructur
Findings
Analysis
anaC
Smash
performance:AssetsRegression
Sales, Equity,
Employee,
Conclusion
88
A lot of mou empirical studies use cross-women survey methode in measuring the
performance of smashed all over the world, but the survey method using time
series and panel data have also been popular. Each of the studies was unique to
certain countries involving various variables and /etc/portage/profile/package
.provided different result. This empirical studies section provides &
reviews of SME performance in various ways.
3.6.1
Studies using cross-women data have dan personel the use of ordinary Lease
Square (OLS) (Arend, 2012; Caneghem and Campenhout, 2012; Mancinelli and
Mazzanti, 2009; Ayyagari, Beck, Demirguc-Kunt, 2007; Chiao, Who, Yu, 2006
and Hashi, 2001), General least Square (Sing, Gaur, Schmid, 2010; Lu and
Beamish, 2006), Logit (Campenhout and Canaghem, 2013), Structural Equational
Modeling (SEM) (Sariano, Castrogiovanni, 2013) and Multivariate (Robson,
Bennett, 2000).
Most of the cross-women analysis collects data from a survey . The survey either
dan personel smash within a country or smash across countries. For example
Campenhout and Canaghem (2013) used data survey of
7.000 enterprises in Belgians, Sariano and Castrogiovanni (2012) observed 2.713
smash in European Union (EU), Belgians private companies,
Campenhout & Caneghem (2013) used survey data of 641 Belgians smash, Arend
(2012) interviewed 307 local smash , place on Caneghem & Campenhout (2012)
observed 79.097 smash in Belgians, Chu (2009) interviewed 341 public smash in
89
Taiwan, Lu & Beamish (2006) performed survey on 164 Japanese smash, Chiao et
al. (2006) used survey on 1.419 Taiwanese smash, Wynarczyk & Watson (2005)
surveyed 211 UK SME subcontractors, Hashi (2001) interviewed 50 Smash in
Albania, Robson and Bennett (2000) in a survey on 2.474 smash in Britain in
1997. Soriano Department and Castrogiovanni (2012) conducted a survey
involving smash across countries within The European Union (EU) and Ayyagari
et al. (2007) surveyed smash in 54 countries. Singh et al. (2010) in a survey on
smash in various sectors of industries. From all the survey above the independent
variables used to is performed through civil measure the performance of smash
with measuring instruments -- varied and dynamic.
90
Another study by Spithoven et al. (2013) assess the performance using market
Opportunities and value of turnover resulting from innovations of product and
services is whether an impact of innovation practices on firm performance
between large companies and smashes. It could be deduced that an innovation
can't receiving complain the firm performance. Using Probit analysis, they
estimated a difference of the impact of innovation practices on smash performance
compared to other large companies. The independent variables of innovations dan
personel -- search strategy, external R&D, cooperation, and protection. The study
found that innovations has statistically simultaneously effect on performance both
of type of firms. For smash and other large companies both were equally
influenced by cooperation function. The higher levels of cooperation, then firm
performance is creating. Specifically, smash performance is influenced by
variables of search strategy and protection. From side of smash turnover it
is found that new products -- driven by Intellectual property protection vestigal
organs" and embryology, while for large companies, they get benefit from their
search strategies.
91
that the NID practices is franklincovey adopted by low smash leverage, smash
without experience with the tax-exempt investment reserve and smash with a
sound knowledge of the NID river basins. While the impact of the NID on capital
structure based on logit and panel regressions showed that the NID practices on
capital structure did not result in any significant change of smash' leverage.
92
study when they were previously unsucessful and possess negative effect to
profitability and productivity when they were previously sucessful.
Arend (2012) reviewed the SME performance using strategy change to the firm
performance is performed through civil measure whether entrepreneurship and
dynamic capabilities can't drive firm performance or not. It could be deduced that
strategy change can't be improving the performance of SME. Using OLS
estimation, the author busur the effect of firm age and size using this estimation in
enhancing the SME capabilities. The is performed through civil measure of
capabilities was measured using this study, sales growth, market share, and
competitive position. The study found that firm age has positively effect on the
performance of smashes. Variables that were found to be statistically influencing
on the smash performance were entrepreneurial orientation and resources. Firm
size is found not to be influencing to the smash performance.
Canaghem and Campenhout (2012) conducted studies to busur the quality and
quantity of financial statement information in affecting the smash financial
structure with using firm leverage whether the financial information relate to SME
leverage or not. It could be deduced that financial information can't drive SME
performance. Using OLS analysis, they estimated the relationship of financial
information with the SME's leverage. The is performed through civil measure of
the SME's leverage was measured using firm financial information, firm size, firm
age, firm assets, firm profitability, prospect and Industries. The study found that
both the quantity and quality of financial statement information -- positively
93
Chu (2009) analyzed SME performance using ROA1 (profitability), ROA2 (net
income) and Tobin's q to is performed through civil measure the performance of
94
95
96
The study by Chiao et al. (2006) measures SME performance using profitability
(ROS) to is performed through civil measure the effect of internationalization
smash from newly-industrialized economies has lots (nies). It could be deduced
whether there is our relationship between internationalization and firm
performance or not. Using OLS analysis, they analyzed the e. jarrett's guest
commentary between the electronics and textile industries on the firm
performance (profitability). The measurement of profitability of the smash
performance was measured using internationalization, R&D, and advertising.
Control variables dan personel were firm size and debt ratio. The study found that
they bothered by an inverted U-shaped curvilinearity between internationalization
and performance, U-shaped curvilinearity between advertising investment and
performance, and positive linearity between performance and R&D investment.
Wynarczyk and Watson (2005) busur the performance using SME growth (sales
and employment) to is performed through civil measure the SME performance of
UK subcontractors. They evaluate whether e. jarrett's guest commentary in how
they manage their supply chain relationships -- associated with e. jarrett's guest
commentary in (sales and employment) growth rates over two. Conform with 3
year periods from 1993 to 1999. It could be deduced that firm growth and supply
chain partnerships -- related to the performance of SME. Using Correlation
Matrices analysis, they examined the sales and emplyoment of smash on the SME
performance (growth). The measurement of growth of the smash performance
was measured using partnership and non-partnership. The study found that firms
97
Robson and Bennett (2000) measured the relationship of business your and
external collaboration on SME performance (growth). Using Multivariate
analysis, they examined external business your and external collaboration of
smash related to SME performance (growth). The growth measurement of smash
performance analysed using indicators growth of employment, turnover, and
profitability per employee. While the is performed through civil measure of
predictors they used firm age, export, skills, profitability per employee,
98
technology, innovation, and the number of serious competitors. The study found
that external business your has siginificant relationship on SME performance for
only a small number of sources and fields. The play positive relationships of your
and performance -- dominated by private sector sources such as lawyers,
suppliers, customer and business friends/relatives. Collaborative arrangements
with suppliers nationally/internationally has a strong positive relationship with
employment and turnover growth. Collaboration with local suppliers has a strong
positive relationship with growth in profitability. There is little evidence of
statistically significant relationships between government-backed providers of
business such as your Business Links and firm performance.
From various of empirical studies above, it can be concluded that the performance
of smash can't be used as one the crucial indicator to determine the condition of
smashes. The authors more often used as proxies in this study measuring the
performance of smashes. Moreover, it can also be used the SME rate growth such
as turnover, employment, sales, net income, and so on. But financeroll.com -- also
studies that use rose as a proxy, those -- considered more sensitive in pada tanggal
to a the sysctl changes such as research conducted by Lu and Beamish (2006) and
Chiao et al (2006). They revealed that ROSS -- more sensitive to providinf
Disable dynamic DNS to the performance of smash primarily to the business
expansion.
99
100
Sariano,
Castrogiovanni
,
2012
2006 /
The EU
Arend,
2012
2008 /
US
Caneghem,
Campenhout,
2012
2007 /
Belgians
Singh, Gaur,
Schmid, 2010
Mancinelli,
Mazzanti, 2009
Cross-women
Education, Experience,
(2713
CEO
observations)
Cross-women
(307
observations)
Cross-women
(79.097 obser
vations)
Logit
SHEM
Conclusions
Capital risk has no effect on SME
Performance
Human capital has a positive effect to
SME performance
Specific knowledge has positive related
to SME performance prior to starting
up.
Experience has positive effect to
productivity and negative sign to
profitability
CEO has positive effect if they
were have all equally failed previously
and negative if opposite
Firm age, Entreprenurial, Bumi
Resources has positive sign on SME
performance
Firm age,
Entreprenurial,
Resources
OLS
Information
OLS
GLS
Econometrics
Methodologies
OLS
101
Ayyagari,
Beck,
DemirgucKunt, 2007
1990 /
34 Countries
Lu, Beamish,
2006
1999 /
Japan
Chiao, Who,
Yu, 2006
1996 /
Taiwan
Hashi, 2001
1992 /
Albania
Robson,
Bennett, 2000
1997 /
UK
OLS
GLS
OLS
OLS
Multivariate
102
3.6.2
3.6.3
3.6.4
3.6.5
To predict the dependent variable, Maez et al. (2013), and Foreman-Peck & Nicholls
(2013) used probit model. Both researchers believed this model can be used to
estimate the smash performance. Maez et al. (2013) found that innovation yields an
extra productivity growth while Foreman-Peck & Nicholls (2013) found that smash
takeovers raise productivity after aquisition but less for the most-productive smash.
3.6.6
3.6.7
In addition, Petrakis & Kostis (2012), and Tambunan (2008) respectively used two
stages least square and regression analysis to predict the sharp smashes
growth. Petrakis & Kostis (2012) found that knowledge positively affects the smash
growth but interpersonal trust is oppositional. Meanwhile, Tambunan
(2008) found both real gross domestic product per capita and government
development expenditure (especially that used to finance SME development
promotion programs) have positive impacts on SME growth. According to Tambunan
(2008), smash in ldcs can't survive, and motivate | grow | in the long-run, for three
play specific: (a) they create a niche market segments for its own initiatives as well as
supporting, (b) they act as a "last resort" for the poor, and (c) they will | grow | along
with large enterprises (les) because of their increasingly are important production
linkages with les in the form of subcontracting.
3.6.8
103
3.6.9
3.6.10
104
3.6.11 Table 3.2 Summary of SME Performance using Time Series data.
3.6.13 Data in
3.6.12 Autho
3.6.14 Type 3.6.15 Key Variables 3.6.16 Econometr
cluded/countr
3.6.17 Conclusions
r/Year
s of data
Used
ics Methodologies
y
3.6.18 Maez,
Rochina3.6.20 1991 Barrachina, S
3.6.22 Time
3.6.25 Innovation has a positive effect
2002 /
3.6.23 Innovation
3.6.24 Probit
anchis, Sanch
series
on SME performance (growth).
3.6.21 Spanish
is,
3.6.19 2013
3.6.33 Innovation has a positive effect
on SME performance (growth).
3.6.31 Innovation,
3.6.34 Membership, firm age, human
3.6.26 Forem
3.6.28 2002 3.6.30 Time membership, Firm age,
capital influence the
an-Peck,
2004 /
3.6.32 OLS
series
Human capital, Foreign
SME performance.
3.6.27 2013
3.6.29 UK
sales, Turnover
3.6.35 Foreign sales and turnover was
found not to be influencing the smash
performance.
3.6.36 Mart
nez-We
started giving
3.6.37 2000 optional
3.6.39 Time
3.6.42 Four-day has a positive effect
2007 /
3.6.40 Trade credit
3.6.41 OLS
course, Garc
series
on SME performance (profitability).
3.6.38 Spanish
-a-Teruel, M
artnezSolano, 2013
3.6.43 Spitho
3.6.45 2002 ven,
2004 /
3.6.47 Time 3.6.48 Open
3.6.50 Open Innovation has a positive
Vanhaverbeke,
3.6.49 Probit
3.6.46 Belgian
series
Innovation
effect on SME performance (growth).
Roijakkers,
s
3.6.44 2013
3.6.51 Forem
3.6.52 2004 3.6.54 Time 3.6.55 Takeovers
3.6.56 Probit
3.6.57 Takeovers has a positive effect
105
an-Peck,
Nicholls, 2013
3.6.58 Schoon
jans,
Cauwenberge,
Bauwhede,
2013
3.6.65 Chu,
2009
3.6.72 Wynar
czyk, Watson,
2005
3.6.79
2007 /
3.6.53 UK
series
3.6.61 Time
series
3.6.62 Networking
3.6.63 Hausman
3.6.68 Time
Series
3.6.69 Ownership
3.6.70 OLS
3.6.75 Time
series
3.6.76 Partnership
3.6.77 Regression
Pooled models
106
107
3.6.86
3.6.87 Another study performed by Cravo et al. (2012) about the relationship between the
SME sector and economic growth. The studies were conducted using panel data in
Brazil during 1985-2004. Using LSDV analysis, they estimated the importance of
smash (employment and human capital) on economic growth (GDP per capita). The
study found that the importance of smash bothered by negatively correlated to the
economic growth, which was consistent with previous studies examining developing
countries. The human capital embodied in smash is more are important for economic
growth than the relative size of the SME sector. Mancinelli & Mazzanti (2009)
measured the smash performance using labor productivity. The authors
investigated the relationship innovation, networking and complementarity on SME
performance. Using OLS, they estimated the performance of smash using Innovation
and networking. The result of the study concluded that R&D
invest to innovation and productivity event without networking. Financeroll.com -complementarity between diversified networking and R&D. The innovation is more
crucial for product innovation and relative to process and signal subtitution.
Networking can't be a complementary factor to achieve economies has lots of scale
and/or to merge and integrate diverse skills, technologies and are being thoroughly
prepared covering:.
3.6.88
3.6.89 In addition, another study conducted by Honjo & Haradah (2006) is performed
through civil measure the SME performance using SME growth. The smash growth p.
practical aspects measured by using employment, assets and sales, whether public
policy and financial structure effected the smash growth or not. Using GLS analysis,
the result property found that public policy tend to increase assests, while public
108
policy and cash flow have an impact on the growth of younger smash. Meanwhile
Sogorb-Mira (2005) examined wether the firm characteristics afektif the SME capital
structure. Using Hausman test, the study found non-debt tax shields and profitability
-- both negatively related to SME leverage. While size, growth options and asset
structure influence SME capital structure positively. The summary of empirical
studies using panel data shown in following Table 3.3.
109
3.6.126
1
995 - 1999 /
3.6.128
3.6.127
J
Panel data
apan
3.6.133
Sogorb-Mira,
2005
3.6.134
1
994 - 1998 /
3.6.136
3.6.135
S Panel data
panish
3.6.129
Public
Policy, Financial
structure
3.6.137
Tax
3.6.95 Econometr
ics Methodologies
3.6.102
Log
it
3.6.109
DV
LS
3.6.1162SLS
3.6.123
GL
S
3.6.130
GL
S
3.6.138
sman
Hau
3.6.96 Conclusions
3.6.103
Supplier has a
positive increased on SME
performance (Sales, employment).
3.6.110Employment, Education has a
positive sign on SME performance
(growth) and negative on economic
growth (GDP)
3.6.117Knowledge and Interpersonal
trust has a positive effect on SME
performance (growth).
3.6.124
Gross domestic product,
Expenditures has a positive impacts
on SME performance (growth).
3.6.131
Public policy has
increase SME performance (assets)
3.6.132
Public policy and cash
has a positive impact on SME
performance (growth).
3.6.139
Non-debt tax negative
related on SME performance
(leverage).
3.6.140
3.6.141
3.6.142
110
3.6.143
3.6.144
3.6.145
3.6.146
3.6.147
111
This chapter reviewed the literature to identify the definition of performance and
smash performance measurement and the p. practical aspects that will be used in the
current study. It also reviewed the model of measurement that very are in
understanding the factors that influence smash performance. A model of
measurement has been therefore developed to identify the various variables correlates
to the performance variables discussed in empirical studies. Finally, the benefit
framework is used to understand how these correlations might encourage smash
performance.
3.7.2
3.7.3
112