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Evidence regarding external financing in manufacturing MSEs using partial least squares regression

Author

Listed:
  • Eduard Gabriel Ceptureanu

    (Academia de Studii Economice din Bucuresti)

  • Sebastian Ceptureanu

    (Academia de Studii Economice din Bucuresti)

  • Claudiu Herteliu

    (Academia de Studii Economice din Bucuresti)

Abstract

The purpose of this study is to explore and explain the relationship between networking, external financing by banks and equity investors, and export effort in medium sized enterprises. Our research model was empirically tested on a sample of 143 MSEs in the manufacturing sector and our PLS results do not confirm the existence of a direct association between networking and export effort by MSEs. They show, however, that networking indirectly enhances MSEs’ export effort through facilitating their access to equity financing and reducing managerial risks. Whilst networking are not found to be associated with a higher access to bank financing by MSEs, this type of external financing seems to have a greater impact on export effort than equity financing. This research it is one of the first studies to explore the role of networking with stakeholders in facilitating MSEs’ access to external financing and to international markets and to merge these variables in a single model which consider simultaneously the MSE access to bank financing and to equity financing.

Suggested Citation

  • Eduard Gabriel Ceptureanu & Sebastian Ceptureanu & Claudiu Herteliu, 2021. "Evidence regarding external financing in manufacturing MSEs using partial least squares regression," Annals of Operations Research, Springer, vol. 299(1), pages 1189-1202, April.
    • Handle: RePEc:spr:annopr:v:299:y:2021:i:1:d:10.1007_s10479-019-03291-2
    DOI: 10.1007/s10479-019-03291-2
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