scholarly journals Technological innovation and the distribution of employment growth: a firm-level analysis

2018 ◽  
Vol 28 (1) ◽  
pp. 177-202 ◽  
Author(s):  
Flavio Calvino
Keyword(s):  
Technological Innovation ◽  
Employment Growth ◽  
Firm Level ◽  
Level Analysis

The Consequences of Accounting Failure for Innovation: A Multi-Level Analysis

2020 ◽  
Vol 34 (2) ◽  
pp. 109-124
Author(s):  
Megan F. Hess ◽  
Andrew M. Hess
Keyword(s):  
Firm Level ◽  
Psychological Response ◽  
Top Executives ◽  
Innovation Activities ◽  
Threat Rigidity ◽  
Multi Level ◽  
Multiple Levels ◽  
Financial Misconduct ◽  
Public Disclosures ◽  
Level Analysis

SYNOPSIS In this study, we investigate the relation between accounting failure and innovation at multiple levels in an organization by developing and testing a model for how top executives and functional managers might change their risk preferences and their innovation investments in response to public disclosures of financial misconduct. At the firm level, we find that accounting failures reduce subsequent investments in R&D, as predicted by a threat rigidity (“play it safe”) psychological response among top executives. At the project level, accounting failures have the opposite effect, resulting in an increase in the number of exploratory projects, as predicted by a failure trap (“swing for the fences”) psychological response among functional managers. Unpacking this relation at multiple levels of analysis helps us to understand the complex ways in which financial misconduct shapes a firm's innovation activities and appreciate the far-reaching consequences of accounting failure.

scholarly journals An Exploratory Study of How Latecomers Transform Strategic Path in Catch-Up Cycle

2021 ◽  
Vol 13 (9) ◽  
pp. 4929
Author(s):  
Xiaoli Li ◽  
Hongqi Wang
Keyword(s):  
Technological Innovation ◽  
Industrial Policy ◽  
Emerging Economies ◽  
Evolutionary Process ◽  
Sustainable Growth ◽  
Rolling Stock ◽  
Innovation Capability ◽  
Firm Level ◽  
Industrial Leadership ◽  
Catch Up

In catch-up cycles, the industrial leadership of an incumbent is replaced by a latecomer. Latecomers from emerging economies compress time and skip amplitude by breaking the original strategic path and form a new appropriate strategic path to catch up with the incumbents. Previous studies have found that the original strategic path is difficult to break and difficult to transform. This paper proposes a firm-level framework and identifies the impetus and trigger factors for latecomers to transform the strategic path. The impetus is the mismatch between strategic mode and technological innovation capability. The trigger is the progressive industrial policy. Based on a Chinese rail transit equipment supplier’s (China Railway Rolling Stock Corporation; CRRC) catch-up process, this paper finds that the strategic path transformation is an evolutionary process from mismatch to rematch between strategic mode and technological innovation capability. With the implementation of industrial policy, the technological innovation capability will change. The original strategic mode does not match with changed technological innovation capability, which leads to performance pressure. With the adjustment of industrial policy, a new strategic mode adapted to new technological innovation capability emerges. This paper clarifies the source that determines successful catch-up practices for latecomers and contributes to latecomers’ sustainable growth in emerging economies.

scholarly journals Zombie Lending and Depressed Restructuring in Japan

2008 ◽  
Vol 98 (5) ◽  
pp. 1943-1977 ◽  
Author(s):  
Ricardo J Caballero ◽  
Takeo Hoshi ◽  
Anil K Kashyap
Keyword(s):  
Market Share ◽  
Employment Growth ◽  
Job Creation ◽  
Firm Level ◽  
Competitive Process ◽  
Lower Productivity ◽  
Zombie Lending ◽  
Job Creation And Destruction ◽  
Productivity Gap

Large Japanese banks often engaged in sham loan restructurings that kept credit flowing to otherwise insolvent borrowers (which we call zombies). We examine the implications of suppressing the normal competitive process whereby the zombies would shed workers and lose market share. The congestion created by the zombies reduces the profits for healthy firms, which discourages their entry and investment. We confirm that zombie-dominated industries exhibit more depressed job creation and destruction, and lower productivity. We present firm-level regressions showing that the increase in zombies depressed the investment and employment growth of non-zombies and widened the productivity gap between zombies and non-zombies. (JEL G21, G32, L25)

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