Small young firms were hard hit at the onset of the pandemic

2021 ◽  
Keyword(s):  
Young Firms

Editorial

2017 ◽  
Vol 5 (1) ◽  
pp. 1-2
Author(s):  
Ibrahim Sirkeci
Keyword(s):  
Business Performance ◽  
Brand Orientation ◽  
Young Firms

In this issue of Transnational Marketing Journal, we are pleased to offer four articles covering issues from brand orientation and business performance within young firms to co-creation and challenges with technology in extending brands. Four articles look at different countries and mobility impact is a cross-cutting theme. 

Peer Effects on Investment Decisions: Do Industry Leaders and Young Firms Behave Differently?

2021 ◽  
pp. 097215092199367
Author(s):  
Abdul Rashid ◽  
Ayanle Farah Said
Keyword(s):  
Peer Effects ◽  
Intangible Assets ◽  
Investment Decisions ◽  
Leadership Role ◽  
Investment Policy ◽  
Gmm Estimation ◽  
Young Firms ◽  
Peer Firms ◽  
Industry Leader ◽  
Industry Peers

This study examines the influence of peer firms on a firm’s investment policy in Pakistan during the period 2001–2017. It also investigates the heterogeneity in peer effects by taking into account a firm’s age and its leadership role in the industry. The system-GMM estimation results suggest that peer firms significantly influence a firm’s investments on both tangible and intangible assets. Yet, peer effects are more pronounced for tangible investment. We also observe that young firms are more prone to imitate the investment decisions of their industry peers. However, the findings indicate that mimicking is not a tactical behaviour for industry leader firms. These findings have important implications for both the firm management and the owner community.

Market exits during the pandemic

2021 ◽  
pp. 113-133
Author(s):  
E. V. Bessonova ◽  
S. M. Myakisheva ◽  
A. N. Tsvetkova
Keyword(s):  
Growth Potential ◽  
Efficiency Enhancement ◽  
High Productivity ◽  
Young Firms ◽  
Lower Productivity ◽  
Fast Development ◽  
Negative Effect ◽  
Positive Effect ◽  
Substantial Rise ◽  
Stimulation Of

The new coronavirus pandemic has triggered an economic crisis different from other crises in the acuteness and non-uniformity of its impact on various sectors of the economy. This paper analyzes how the dynamics of firms entering and exiting the market have changed in this environment and which groups of firms have shown to be the most vulnerable to the negative effect of the crisis. Our analysis shows that the number of newly registered firms dwindled sharply in the period of the toughest restrictions imposed to curtail the infection spread in April — May 2020. The recovery which followed in the subsequent months has failed to compensate for the spring’s slump, which may suggest a “scarring impact” of the crisis. July and October 2020 saw a substantial rise in companies’ exits from the market. The crisis has hurt not only the hardest hit industries but also other areas of economic activity. Liquidations rose most extensively among young firms aged less than three years. Relatively higher productivity firms exited less often than lower productivity companies. This may suggest a “cleansing effect” of the crisis. But with the redundant labor being unable to move to more productive firms, the positive effect of the crisis may be brought to naught. Therefore, for the consequences of the crisis to be remedied, incentives should be provided to new firms’ entries and support for efficient companies, especially for young firms showing growth potential. Stimulation of growth in the number of high-productivity firms should go hand in hand with the creation of conditions for new entities’ fast development, expansion, and efficiency enhancement.

Organizational change: a review of theoretical conceptions that explain how and why young firms change

2015 ◽  
Vol 9 (2) ◽  
pp. 241-259 ◽  
Author(s):  
Zulaicha Parastuty ◽  
Erich J. Schwarz ◽  
Robert J. Breitenecker ◽  
Rainer Harms
Keyword(s):  
Organizational Change ◽  
Young Firms
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