Muhammad Anwar

BUSINESS MODEL INNOVATION AND SMEs PERFORMANCE — DOES COMPETITIVE ADVANTAGE MEDIATE?

In the era of globalisation and dynamic market, firms look for competitive advantage and survival using different sources and resources. Prior studies have indicated that Business Model Innovation (BMI) is a core driver for firm’s survival and superior performance especially in growing industries. However, the role of BMI has been discussed theoretically and exploratory while empirical studies are still lacking. Hence, this study examines the importance of BMI in SME performance and the mediating role of competitive advantage. Data were collected through structured questionnaires using a sample size of 303 manufacturing SMEs operating in the emerging market of Pakistan. Hypotheses were tested through Structural Equation Modelling (SEM) using AMOS.21. The results indicate that BMI has a significant positive impact on competitive advantage and SME performance. Competitive advantage partially mediates the relationship between BMI and SME performance. Firms are required to create an effective business model to acquire competitive advantage and superior financial performance. Implications for practice have been discussed.

Impact of Behavioral Biases on Investment Decision; Moderating Role of Financial Literacy

This study focus to check the influence of behavioral biases in investment decision making with moderating role of financial literacy in Pakistan. Theories in traditional finance consider that the individual investor is rational because he makes all decision on the bases of all available information to maximize his wealth. On the other hand behavioral finance is totally opposed this theory and consider that the individual have some psychological impact toward his investment.A simple survey questionnaire is used to collect data from 158 investors from investors trading in Pakistan Stock Market. The results show that disposition effect, overconfidence and herding have significant positive impact on investment decision. Financial literacy has negative moderating role in herding bias and positive moderating role of overconfidence bias in investment decision. Results conclude that active investors show more overconfidence bias while passive investors show more herding bias. This study will help financial advisors to better advice their clients. The one more way to overcome these biases may be the training of investor and education. Research culture must be promoted and investor must have ability of technical analysis.

Financial Risk Management Practices in Financial and Non-Financial Firms; Survey of Pakistani Firms

The study aims to explore risk management practices used by financial and non-financial firms of Pakistan. Self-reported questionnaires were distributed using convenience sampling method among financial and non-financial firms. The results indicate that non-financial firms used risk management practices but the percentage is low as compared to financial firms. Firms engaged in international trade used risk management practices and followed the procedure needed for evaluating and managing risk. Although these firms have a small portion of operating revenue and operating cost in foreign currencies. The financial managers of these firms make risk reports to their top managers as per their policies and requirement. New FASB rules also affect their derivatives usage.