How globalization affects the operational efficiencies of emerging market firms?: A comparative analysis on Turkish SMEs
DOI:
https://doi.org/10.17811/ebl.7.1.2018.9-17Abstract
This paper examines the impact of globalization on the operational efficiencies of emerging market firms by concentrating on the financial outcomes of a firm’s main operations through focusing on operating income and cash conversion cycle as well as on their possible causes in an emerging market, Turkey. The findings indicate that globalization significantly deteriorates the operating income and lengthens the cash conversion cycle of Turkish firms and their components. However, although no difference could be reported on the direction of these effects, the adverse impact of globalization on operating income and its components are observed to be weaker while the lengthening impact on cash conversion cycle and its components are observed to be stronger for SMEs.
References
-Acheampong, Y. J., Epperson, J. E., Park, T. A. and Gunter, L. F. (2000) Globalization and profitability adjustment patterns in international food and consumer products industries, Department of Agricultural and Applied Economics Faculty Series 00-16, University of Georgia.
-Akinola, G. O. (2012) Effect of globalization on performance in the Nigerian banking industry, International Journal of Management and Marketing Research, 5: 79-94.
-Ardıç, N. (2009) Friend or foe? Globalization and Turkey at the turn of the 21st century, Journal of Economic and Social Research, 11: 17-42.
-Aseidu, E. and Freeman, J. A. (2007) The effect of globalization on the performance of small- and medium-sized enterprises in the United States: Does owners' race/ethnicity matter?, American Economic Review, 97(2): 368–372.
-Besley, S. and Brigham, E. F. (2005) Essentials of managerial finance, 13th ed., Thomson South-Western: USA.
-Choi, S. (2010) Beyond kantian liberalism: Peace through globalization, Conflict Management and Peace Science, 27: 272-295.
-De, U. K. and Pal, M. (2011) Dimensions of globalization and their effects on economic growth and human development index, Asian Economic and Financial Review, 1(1): 1-13.
-Dreher, A. (2006) Does globalization affect growth? Evidence from a new index of globalization, Applied Economics, 38: 1091-1110.
-Dreher, A. and Gaston, N. (2007) Has globalization really had no effect on unions?, Kyklos, 60: 165-186.
-Dreher, A., Gaston, N., and Martens, P. (2008) Measuring globalisation – Gauging its consequences, New York: Springer.
-Donadelli, M. and Prosperi, L. (2012) The equity risk premium: empirical evidence from emerging markets, CASMEF Working Paper.
-Georgiou, M. N. (2011) Globalization and ROE: a panel data empirical analysis for Europe (1999–2009), SSRN Working Papers No: 1955200.
-Giddens, A. (1990) Consequences of modernity, Cambridge: Polity Press.
-Haghi, S., Mostafavi, S. M. and Behname, M. (2015) The effects of globalization on firm's stock in the selected Asian countries, Atlantic Review of Economics, 1, 1-13.
-Hessami, Z. (2011) Globalization’s winners and losers - Evidence from life satisfaction data 1975–2001, Economics Letters, 112(3): 250-253.
-Hsu, M. and Chen, B. (2000) Labor productivity of small and large manufacturing firms: The case of Taiwan, Contemporary Economic Policy, 18(3): 270–83.
-Kaplinsky, R. (2004) How does it all add up? Caught between a rock and a hard place, Paper submitted for the Globalization, Employment, and Economic Development Workshop, Sloan Workshop Series in Industry Studies, Rockport, Massachusetts, June, 14-16.
-Karadagli, E. C. (2012) The effects of globalization on firm performance in emerging markets: Evidence from Emerging-7 Countries, Asian Economic and Financial Review, 2(7): 858-865.
-Karadagli, E. C. (2013) Globalization, firm performance and group affiliation in emerging markets: evidence from Turkey, In Financial Aspects of Recent Trends in the Global Economy, Mirdala, R. (Eds): Vol. I, Ch. 8: 164-174.
-Kefela, G. T. (2011) Driving forces of globalization in emerging market economies developing countries, Asian Economic and Financial Review, 1(2): 83-94.
-Lamla, M. (2009) Long-run determinants of pollution: a robustness analysis, Ecological Economics, 69: 135-144.
-Leibrecht, M., Klien, M. and Onaran, Ö. (2011) Globalization, welfare regimes and social protection expenditures in western and eastern European countries, Public Choice, 148: 569-594.
-Mahmutović, H., Talović, S., and Kurtović, S. (2017) Impact of globalization on the performance of the company: the case of companies from Bosnia and Herzegovina, Human, 7(1): 40-49.
-Naghshpour, S. and St. Marie, J. J. (2008) Emerging no more: do emerging market economies owe their success to globalisation?, International Journal of Trade and Global Markets, 1: 266-280.
-Padachi, K. (2006) Trends in working capital management and its impact on firms’ performance: an analysis of Mauritian small manufacturing firms, International Review of Business Research Papers, 2(2), 45-58.
-Peltonen, T. A., Skala, M., Santos Rivera, A., and Pula, G. (2008) Imports and profitability in the Euro area manufacturing sector. The role of emerging market economies, ECB Working Paper No 918 / July.
-Rao, B. B., Tamazian, A. and Vadlamannati, K. C. (2011) Growth effects of a comprehensive measure of globalization with country specific time series data, Applied Economics, 43: 551-568.
-Scheuerman, W. (2010) Globalization. In The Stanford Encyclopedia of Philosophy (Sum. 2010 Ed.), Zalta, E. N., http://plato.stanford.edu/archives/sum2010/entries/globalization/
-Szeman, I. (2003) Culture and globalization, or, the humanities in ruins, CR: The New Centennial Review, 3(2): 91-115.
-Thoumrungroje, A. and Tansuhaj, P. (2007) Globalization effects and firm performance, Journal of International Business Research, 6(2): 43-58.
-Tomschik, D. (2015) The impact of macroeconomic variables on capital structure: a comparison between companies in E7 and G7 countries (Bachelor's thesis, University of Twente).
-Tsai, M. (2007) Does globalization affect human well-being?, Social Indicators Research, 81: 103-126.
-Vinig, T., & De Kluijver, J. (2007) Does globalization impact entrepreneurship? comparative study of country level indicators, Sprouts: Working Papers on Information Systems 7(8), University of Amsterdam, Netherlands.
Downloads
Published
How to Cite
Issue
Section
License
The works published in this journal are subject to the following terms:
1. Oviedo University Press (the publisher) retains the property rights (copyright) of published works, and encourages and enables the reuse of the same under the license specified in paragraph 2.
© Ediuno. Ediciones de la Universidad de Oviedo / Oviedo University Press
2. The works are published in the online edition of the journal under a Creative Commons Attribution-Non Commercial-Non Derives 3.0 Spain (legal text). You can copy, use, distribute, transmit and publicly display, provided that: i) you cite the author and the original source of publication (journal, publisher and URL of the work), ii) they are not used for commercial purposes, iii) mentions the existence and specifications of this license.
3. Conditions of self-archiving. The author can archive the post-print version of the article (publisher’s version) on the author’s personal website and/or on the web of the institution where he belong, including a link to the page of the journal and putting the way of citation of the work. Economics and Business Letters and its URL https://reunido.uniovi.es/index.php/EBL/index are the only authorized source for correctly giving the reference of the publisher’s version in every mention of the article.
