A Systems View Across Time and Space
Table 4 Summary of variables operational definition and scale of measurement
Variables incorporated in the model | Unit of measurement | Sign expected |
|---|---|---|
Dependent variable | ||
 Sustainability MSMEs: increasing in sustainability indicators, such as increasing number of employees, sales volumes, market share, customer base as highly decreased (1), decreased (2), constant (3), improved (4), and highly improved (5) since last 12 months | Likert scale questionnaire |  |
Explanatory variables | ||
 Tax holiday: tax holidays are the temporary exemption of a new firm or investment from certain specified taxes, typically at least corporate income tax | Likert scale questionnaire |  +  |
 Tax allowance: tax allowance is a deduction of a certain fraction of investment from taxable profits (in addition to depreciation) | Likert scale questionnaire |  +  |
 Reduction in tax rate: reduction in tax rates leads to lower production, distribution, and selling costs which lead to higher prices, and as a result, consumers change their buying behavior | Likert scale questionnaire |  +  |
 Accelerated depreciation: accelerated depreciation is depreciation at a faster schedule than available for the rest of the economy. This can be implemented in different ways, including a higher first-year allowance, or increased depreciation rates. Total tax payments in nominal terms over time are unaffected, but their net present value is reduced and the liquidity of firms is improved | Likert scale questionnaire |  +  |
 Loss carry forward: loss carried forward refers to an accounting technique that applies the current year's net operating loss (NOL) to future years' net income to reduce tax liability. This results in lower taxable income in positive NOI years and reduces the amount the company owes the government in taxes | Likert scale questionnaire |  +  |
 Tax Exemption: a tax exemption is the right to exclude all or some income from taxation by federal or states governments. Most taxpayers are entitled to various exemptions to reduce their taxable income, and certain individuals and organizations are completely exempt from paying taxes | Likert scale questionnaire |  +  |