Open Access Original Research Article

The Role of Transactional Leadership Style of Owner/Managers in Adopting a Market Oriented Culture: A Case of Manufacturing SME’S

Christina Appiah-Nimo

Asian Journal of Economics, Business and Accounting, Page 1-12
DOI: 10.9734/AJEBA/2018/42162

The purpose of this study is to examine the possible relationship of transactional leadership style on the three tenets of market orientation, thus, competitor orientation, customer orientation and inter-functional coordination. Questionnaires were used to gather data from 200 owner/managers of manufacturing SME’s in the Accra metropolis of Ghana. The collected data from the questionnaires were analysed through the Structural Equation Modelling using the Partial Least Squares approach (SEM-PLS). The findings showed that transactional leadership style had an inverse but a significant relationship to customer orientation and inter-functional coordination. The implication is that, an owner/manager who expresses positive outcomes to employees for performing their duties in line with instructions and also focuses on employee mistakes and complaints and also emphasizes development of process in setting goals, directing, and striving to manipulate and control the situation inhibits the adoption and practice of a market-oriented culture. Also with the manufacturing, SME's in Ghana, adopting a transactional leadership style will not encourage market-oriented culture. It is therefore recommended that owner/managers to adopt other styles of leadership which can translate in the practice of market-oriented culture.

Open Access Original Research Article

Sri Lankan SMEs and Perceived Export Barriers: Evidence from Manufacturing Sector

J. M. D. S. Wijayarathne, M. P. S. R. Perera

Asian Journal of Economics, Business and Accounting, Page 1-10
DOI: 10.9734/AJEBA/2018/42459

At present globalized world, export sector plays a vital role in promoting economic growth in each and every economy. Developing countries use SMEs as a strategic tool to develop their export sector. But barriers existing in the export market hamper the maximum contribution of SMEs. Therefore the purpose of this study is to identify the major export barriers as well as sub barriers faced under each major export barrier by Sri Lankan exporters of Small and Medium Enterprises (SMEs). Export barriers were mainly divided into two; internal export barriers and external export barriers in line with the literature. In order to achieve the purpose of this study, the quantitative method was used. Data was collected from 129 SME owners and managers who operate in the manufacturing sector and Western Province in Sri Lanka. Data was analyzed by using the Statistical Package for Social Sciences (SPSS). The parametric test of ANOVA and Robust Test of Equality of Measure was performed to identify the major export barriers. Mean value of each barrier were calculated to identify the sub-barriers coming under each major export barrier. This study found that financial barriers, governmental barriers and economic barriers are the major export barriers faced by Sri Lankan exporters. On the other hand, high cost of capital to finance exports, lack of government incentives, lack of new technology, complexity of export documentation procedure, lack of financing sources, high tariff and non-tariff barriers, currency fluctuations, lack of                 competitive prices to foreign customers, high insurance cost and inadequate institutional support were the top ten sub barriers faced by Sri Lankan SMEs in the export market. The findings of this study may provide insights to make effective decisions to both exporters and non-exporters, SME owners, government policymakers, business educators, researchers as well as other decision makers.

Open Access Original Research Article

Integrated Internal Audit Model for Effective Internal Auditing Performance in Nigerian Tax Administration

Zakariya’u Gurama, Muzainah Mansor

Asian Journal of Economics, Business and Accounting, Page 1-7
DOI: 10.9734/AJEBA/2018/42596

This study aimed to develop a model that can improve the internal audit performance in tax administration. To achieve its objectives, the literature on internal audit performance models were reviewed and analyzed. Internal audit cannot perform efficiently and effectively without understanding the necessary needs of the auditors such as input, process and output that can determine the outcome impact of the auditing function. Therefore, one approach to improve internal audit effectiveness is to develop a good model that can explain the required components that would improve the performance of the auditing function. This study developed a model called ‘Integrated Internal Audit Model’ for effective internal audit performance. The model aimed to improve internal audit efficiency and effectiveness in tax administration in Nigeria.

Open Access Original Research Article

Dynamics of Stock Markets Interdependence in the Pre-and Post Global Financial Crisis Period: Evidence from Toda-Yamamoto Causality Test

Abdul-Nasir T. Yola, Shazida Jan Mohd Khan, Mohamad Helmi Hidthir

Asian Journal of Economics, Business and Accounting, Page 1-9
DOI: 10.9734/AJEBA/2018/42761

This paper analysed the causal relationship between the three largest African stock markets; Nigeria, South-Africa and Egypt. The analysis was conducted for two sample periods using the index of the stock markets. The pre-crisis period between January 2000-April 2008, and the crisis/post-crisis period between May 2008-December 2016. The study employed Toda and Yamamoto robust causality test. The result from the study found evidence of no causal relationship between the three selected stock markets in the pre-crisis period. In the crisis/post-crisis period, we found a unidirectional causality from South-Africa to Nigeria stock markets. Beside this, there is no evidence of causal relationship between the stock exchange markets. Therefore, the study concluded that there is no strong difference between the causal relationship in the two analysed periods which signifies benefits of diversification between the three stock exchange markets.

Open Access Original Research Article

Can University Connections of Independent Directors Improve Firm Performance? Evidence of Chinese Listed Manufacturing Companies over 2008-2013

Changzheng Zhang, Jiao Zhang, Qian Guo

Asian Journal of Economics, Business and Accounting, Page 1-18
DOI: 10.9734/AJEBA/2018/42219

The paper investigates the effect of the university connections of independent directors on firm performance by choosing the panel data consisting of 2994 firm-year observations in Chinese listed manufacturing companies during 2008-2013 as research sample. Empirical analysis by adopting the multiple regression analysis based on OLS and the independent samples test with SPSS19.0 makes the following new finding: In the manufacturing companies in China, there is a positive relationship between the university connections of independent directors and firm performance measured by ROE, ROA and EPS. Further investigation shows that the independent directors from the universities would produce a higher productivity in the traditional labor-intensive firms rather in the technology-intensive firms, and what is more, if the independent directors from the universities attend more board meetings, their positive role in affecting firm performance would be enhanced.