gender differential paper IJCRB

ijcrb.webs.com
JUNE 2011
INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS VOL 3, NO 2
entrepreneurship. Schumpeter argued that the bank plays an important role in entrepreneurship
and innovation in the society. As these financial institutions tend to mobilize the savings, this is a
very crucial and important decision to which firm the credit should be given. If the financial
institutions give credit to their relatives or cronies or near one means they are discouraging
entrepreneurship, innovation and overall prosperity of the economy (Schumpeter, 1912). Same is
the case with SMEs in Pakistan. Due to irregular and wrong credit financing entrepreneurship is
being discouraged as it is validated by the above mentioned results. According to the results
entrepreneurship is not contributing significantly towards sustainability and growth in the SMEs.
The demographics (location and experience) in case of Pakistan are also significantly associated
with the growth of the firm and it is justified by the above mentioned results.
The location of the firm has an important effect on the productivity and growth of the firm. If the
firm is located near the big cities, the firm has an easy access to the raw material and it will be
easily available to the firm. If the firm is located in rural the raw material will not be timely
available and hence growth rate will be retarded (Beck, 2005). Similarly experience of the
worker too contributes towards the sustainable growth, innovation and competitiveness of the
firm (Salojärvi, 2005). So from the above results we can conclude that human capital, social
capital, external capital, organizational capital, technological capital, knowledge management
awareness, firm size, innovation, demographics are positively associated with the sustainable
growth of the SME’s of Pakistan. It means that if these variables are given space and implement
in true letter and spirit, it can enhance the sustainability and can create competitive advantage for
the SME’s.
Mangerial and acadamic Implications
Several interesting implications arise by the investigation of this study for academia, business,
and research. This study is valuable from managerial or business point of view because
practitioners can consider all these variables helpful not only for small industries but for the
multinational organizations. Above all this study can be helpful for the management decisionmaking
because this will play a significant role to enhance the sustainability and productivity of
organization. This study besides its managerial worth has its academic implications too. For
business education, case studies can be added up in the curriculum that raises the students’
ability to investigate and learn more and more about the small and medium size enterprises. To
enhance the aptitude of students, case studies can be given. To create awareness about
knowledge management, the students should be given different tasks. On the other side there is
some responsibility of institutions also that they must revise their academic programs and must
add up some moral awareness courses like, knowledge management, social capital, human
capital etc. This research study helps in knowing the factors that have some impact on
sustainable growth and creating mutually beneficial decisions.
Practical Limitations
The study has several limitations as the research was limited to the small industries located in
different cities all over Pakistan but the major issue was of the time and cost constraint. Hence
the findings can be generalized. However this field requires further research to have a clear and
broader picture of the relationship and factors that affect the knowledge management, innovation
and sustainable growth in SME’s of Pakistan. The sample size was limited due to time and
financial constraint however the response rate was good enough. It is believed that the nonresponse
bias has not unsubstantiated the results of this study. However, generalizing the results
to other Asian Countries may be not a wise idea as the economic and political situations are very
much different among the third world countries.
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