Abstract
PurposeThe study investigates the effect of political instability and employee tenure security on the performance of firms in middle-income economies (MIEs) after controlling for the influence of corruption, international quality certification, external auditor services and firm age. It examines whether ownership and sector effects matter in the explored relationships.Design/methodology/approachThe study adopts the generalized method of moments estimator and collects firm-level cross-sectional data from 77 MIEs.FindingsThe evidence shows that political uncertainty, employee tenure security and firm age negatively impact firm performance. Also, external quality assurance mainly improves firm performance. Additionally, foreign-owned firms benefit from corruption more than their domestic counterparts. Moreover, there are ownership and sector effects in the firm performance drivers.Practical implicationsThe findings suggest the need for MIE firm managers to implement policies and programs to improve permanent employees' efficiency, commitment and honesty. Policy makers and political actors must work toward a stable political environment in MIEs. The policy must also focus on at least minimizing corruption.Originality/valueThe study shows the contributions of employee tenure security, political instability and corruption to the performance of MIE firms. It documents sector and ownership effects in the factors influencing firm performance.
Reference82 articles.
1. Insights into the reasons behind the limited implementation of ISO 9001 certification: empirical evidence from Yemen;The TQM Journal,2021
2. The political economy of productivity growth;European Journal of Political Economy,2022
3. Trust as a mediator of the relationship between organizational justice and work outcomes: Test of a social exchange mode,2002
4. Do political instability, financial instability and environmental degradation undermine growth? Evidence from belt and road initiative countries;Journal of Policy Modeling,2022
5. Does corruption affect local and foreign-owned companies differently? Evidence from the BEEPS survey;Post-communist Economies,2020
Cited by
2 articles.
订阅此论文施引文献
订阅此论文施引文献,注册后可以免费订阅5篇论文的施引文献,订阅后可以查看论文全部施引文献