Open Access Original Research Article

Saving Behavior and External Debt Service: The West African Perspective

Obi Chineze Eunice, Imo G. Ibe

Journal of Economics, Management and Trade, Page 1-20
DOI: 10.9734/jemt/2020/v26i830277

The paper investigated the effect of saving behavior and debt-service on the debt burden and its effect on some economic indicators, debt service to export, export to GDP, debt service to GDP, savings rate and income per capita of 14 West African Countries. The data from the World Bank economic indicators for the period 1985-2015 were used as models. This was analyzed using fixed and random effect regressions and houseman tests to determine the most appropriate estimator. The results revealed that the national savings of these countries should play a significant role in terms of payment of debt services and the countries' ability to reducing their total debt burden. It is also revealed that an increase in the export/GDP growth will lead to growth in the country’s economy by providing more resources to pay the national debt, both external and domestic debt. The national saving rate should aim at improving the economic growth rate through a higher saving ]rate. The paper recommends that these countries should pursue a balanced saving policy, increase the export/GDP ratio and total revenue generated for a fully sustainable reduction of total debt burden so that future generations would not inherit a huge debt burden.

Open Access Original Research Article

Social Responsibility and Marketing Impact on Hospital Business Sustainability: Lesson from Indonesia

Frinda Susanto, Farida Jasfar, Hamdy Hady, Robert Kristaung

Journal of Economics, Management and Trade, Page 21-35
DOI: 10.9734/jemt/2020/v26i830278

This research empirically examines the influence of corporate and employee social responsibility, customer satisfaction, trust, and loyalty, and sustainable business variables. The methods of this study using Partial Least Square-Structural Equation Modelling with hypothesis testing. Hospitals listed on the Indonesia Stock Exchange that carry out corporate social responsibility (CSR) were used as study objects. The number of samples collected was 96 respondents. The result showed although employee social responsibility (ESR) has a positive effect on customer satisfaction and trust, it has no significant impact on business sustainability. Likewise, patient satisfaction has a positive effect on loyalty, yet it has no significant impact on business sustainability. Trust has a positive effect on patient loyalty and business sustainability. The research novelty is corporate social responsibility as a determinant of business sustainability, as both an independent and mediating variable, including the employee social responsibility. Patient trust plays a vital role as a mediator between patient satisfaction and loyalty. Ethics has the highest contribution to CSR, furthermore, employee social responsibility and measurement are valid for marketing studies.

Open Access Original Research Article

Superior Role of Human Resource Development Climate and Its Impact on Job Attitudes

Akbar Barmaky, Huseyin Ekizler

Journal of Economics, Management and Trade, Page 36-60
DOI: 10.9734/jemt/2020/v26i830279

According to the extant literature in the context of human resource management (HRM), the preeminent role of human resource development (HRD) climate on employees’ job attitudes is irrefutable. This study aims to determine the effect of HRD climate on job attitudes, including positive and negative ones. The proposed model consists of five latent variables which are HRD climate as an exogenous variable and work engagement, organizational commitment, organizational citizenship behaviors (OCBs), and counterproductive work behaviors (CWBs) as endogenous variables. The authors use a quantitative method involving questionnaire distribution among employees in different private banks located in Tehran (Capital city of Iran). Among distributed questionnaires, 384 were retrieved. To obtain the results, structural equation modeling (SEM) technique was applied. Findings supported the notion that HRD climate has a significant determination on job attitudes. Among them, determination of HRD climate on work engagement and organizational commitment is remarkable. Also, HRD climate had a positive role in increasing OCBs and reduction in negative job attitudes. The results will be practical for academics in the field of HRM. It is worthwhile mentioning that there will be managerial implications for the managers in the Iranian private banking industry and results provide initial insights for managers on how to increase the sense of organizational commitment and work engagement as defined task duties among employees within the Iranian private banking industry. Besides, the results will be pragmatic for managers for injecting and burgeoning the sense of citizenship behaviors and diminution of counterproductive work behaviors to increase profitability, revenue, return on investment (ROI), and productivity, also avoiding stagnation in the environmental workplace of the Iranian private banking industry.

Open Access Original Research Article

Re-engineering Apprenticeship Scheme for Economic Sustainability in Industrial Cities of South East of Nigeria: Post Civil War Experience

Ifeanyi, Titus Tochukwu, Onwuchekwa, Faith Chidi, Dimgba, Chidinma Martha

Journal of Economics, Management and Trade, Page 61-71
DOI: 10.9734/jemt/2020/v26i830280

The study examined apprenticeship scheme and economic sustainability in industrial areas of South East of Nigeria. The objectives of the study were to evaluate how apprenticeship scheme influenced employment generation after civil war in South East of Nigeria, identify problems affecting apprenticeship scheme and ascertain ways apprenticeship scheme could be re-engineered in the South-East of Nigeria. As a survey research design, questionnaire was used to elicit information from one hundred and forty business operators in Aba, Nnewi and Onitsha, as the industrial cities in South East before and after the civil war, who undergone apprenticeship scheme before establishing their own business. The data were analysed using mean, percentage and simple regression at 5% level of significance. The result revealed that Successful business start-up by apprentice generated employment for people over a long period of time in the South East after civil war. Apprenticeship scheme in the recent times lacked; involvement of labour representative in the apprenticeship agreement, written agreement under the watch of a labour officer; and opportunity to further education as well as apprentice physiological and social well being. The study concluded that apprenticeship scheme provided employment after civil war in South East of Nigeria over a long period of time; notwithstanding, apprenticeship scheme faces a lot of problems in the recent times. Thus, to re-engineer apprenticeship scheme in South East, the study recommended that labour laws that would persecute the defaulting master(s) or servant(s) in the contract of apprenticeship scheme have to be established, apprentices have to be given educational opportunity while in apprenticeship scheme; and apprenticeship scheme has to be covered with an effective contract agreement under the supervision of a labour officer.

Open Access Original Research Article

Transiting to International Financial Reporting Standards for Small and Medium Sized Enterprises in Ethiopia: Benefits and Costs

Dagnachew Abera Hunde, Kefiyalew Belachew Bayu

Journal of Economics, Management and Trade, Page 72-87
DOI: 10.9734/jemt/2020/v26i830281

In every nation in the world small and medium enterprises (SME) have a crucial role in the Socio-economic development. Thus Over a decade’s they are increasingly attracting different stakeholder’s attention. It is in this regard the International Accounting standard Board (IASB) issued IFRS for SMEs in July 09, 2009. This study examined the Benefits and Costs of transiting to International financial reporting standard for Small and Medium sized Enterprises (IFRS for SMEs) in Ethiopia. So as to achieve this objective the researcher used mixed research approach. Semi-structured interview and questionnaires were used as an important tool for gathering the necessary data from tour operators as target group. From 320 SMEs given population size, 32 SMEs firms selected using systematic sampling technique and 93 is the sample size of respondents chosen from 32 SME firms based on Judgmental sampling technique.

It was found in this study the benefit of transition towards IFRS for SME is expected to decreases the information asymmetry between insiders and outsiders users of accounting information. Moreover its long run effect helps to achieve of the theoretical concept of the primary & secondary qualitative characteristics of accounting information (Relevance & Reliability Vs Comparability & understandability). Above all, the aggregate effects may increase the number of cross boarder investments, increasing the alternative of sources of financing and reducing cost of debt.

Furthermore, the finding shows transition towards IFRS for SME is costly to firms primarily because of the superior exertion of efforts, understanding and information systems needed and during post transition period additional effort needed to manage the risk of potential material misstatements appearing in the IFRS for SMEs-generated financial statements. Lack of knowledge (understanding) requires them to be engaged in a capacity building program with the coordination of Auditing and Accounting Board of Ethiopian & academicians.

Open Access Original Research Article

Assessing the Harmony of Supply Chain Actors in Live Animal Export: The Case of Gurage Zone, Ethiopia

Samuel Gemechu, Meaza Getnet, Alemu Tereda

Journal of Economics, Management and Trade, Page 88-93
DOI: 10.9734/jemt/2020/v26i830282

This article aims to study the harmony of supply chain actors in Live Animal Export at Gurage Zone, Ethiopia. This problem is relevant and researches in this sense can help policies that aim to improve the functioning of supply chains. Harmony of supply chain is the collaboration level of supply chain participants which is measured in terms of common planning and action guidelines they have, how they share information and generally the overall relations they have one another. Being descriptive in design, the study has targeted main live animals supply chain actors who are 719 producers, 6 traders and 2 exporters in Gurage zone from whom 257 producers were randomly chosen as a sample and all the traders and exporter have been used directly from whom questionnaires were collected from. The findings have proved that there is relatively consistent flow of information throughout the supply chain actors in live animals export in Gurage zone. Additionally there have been seen that there is a culture of planning jointly among the chain actors followed by having common updating means in case of plan fails to meet the expectations even though there exists problems of sitting for evaluation of actions made by the chain elements which is the key for future improvement of the export business. Finally it has been found that the overall harmony of the chain actors is attractive with some reservations.

Open Access Original Research Article

Estimating the Fiscal Reaction Function for Namibia

Evelina Julius, Jacob M. Nyambe, Omu Kakujaha Matundu

Journal of Economics, Management and Trade, Page 94-108
DOI: 10.9734/jemt/2020/v26i830283

This paper estimates the fiscal reaction function for Namibia with the aim of establishing how the Government of Namibia responds to changes in debt levels. The VECM and the ARDL models were adopted to explore the reactions between the two variables. Both the VECM and ARDL confirmed the long-run relationship between the variables and showed that government increases its primary balance (i.e. reduce its primary deficit) by 0.07 percent and 0.31 percent, respectively, for every 1 percentage increase in debt levels. On one end, the results from VECM indicated that fiscal policy in Namibia is pro-cyclical, reflected in a positive estimated effect of the output gap on the primary balance. On the other end, the ARDL model indicated an insignificant relationship between the output gap and the primary balance. The debt targeting analysis performed provides evidence that it is not enough to only reduce the primary deficit for fiscal sustainability. Instead, it is important to grow the economy and improve the ability of debt repayment so that debt accumulation declines. Thus, the paper recommends that Namibia needs not only a positive, but also a strong economic growth if it is to make significant impacts on the debt level and guarantee both debt and fiscal sustainability.

Open Access Original Research Article

A Strategic and Adaptive Plan for Resurgence of Food-Tech Delivery Service Sector During and Beyond Public Health Pandemic Crisis

Angad Munshi, Ashim Raj Singla

Journal of Economics, Management and Trade, Page 109-123
DOI: 10.9734/jemt/2020/v26i830284

Purpose: India’s highly competitive online food delivery space is at the forefront of pandemic distress due to unprecedented challenges posed by the global pandemic COVID-19.  The thrust of this paper is to focus on, how can Indian online food-tech aggregator landscape operate and sustain business ventures amidst this pandemic disaster. This article examines, investigates and delves into various issues regarding logistics, customer care and penchants coupled with related issues and elucidates various challenges and opportunities there-in. The authors while doing so endeavoured to assess and analyse the impact of COVID-19 pandemic on customer behaviour with reference to online food delivery sector in India.

Design/ Methodology/Approach: The paper is a mix of theoretical study along with author’s viewpoint. The data was also gleaned from the latest updates from various organizational and government sites. A survey involving a representative sample of randomly identified 106 food lovers patronizing online food delivery platforms was conducted using online interview method via CISCO Webex platform.

Findings: Elucidation of evidence-based avenues to work upon to overcome COVID-19 slowdown for the present and beyond is the only riposte. The survey revealed that around 98% of the respondents agreed to higher consumption of food and persons living alone have invariably placed order via online food delivery platforms. The quality and hygiene of the food endorsed by 99% was a highly significant and imperative factor. The need for more stringent safety & hygiene norms for checks and balances required emerged as a primary concern.

Research Limitations/Implications: This being a rapid turnout study, due to pandemic lockdown reaching the customer base, even identifying them, restricted the survey population.  The use of evidence-based outcomes of changing customer perceptions and behaviour in this new norm of pandemic, together with logistic avenues using a larger sample size would have further complemented and augmented the viewpoints expressed in this study thereby aided in working out a robust roadmap. 

Practical Implications: The authors suggest that business leaders in food-tech delivery firms need to have a dynamic and proactive approach towards the challenges which are evolving on a daily basis, since the impact of COVID-19 is continuous and ever-changing.

Originality/Value: The study presents a strategic and adaptive plan for resurgence of food-tech delivery service Sector using ICT tools and techniques during public health pandemic crisis and beyond.