Institutional environment, innovation capacity and firm performance in Russia

2013 ◽  
Vol 9 (1/2) ◽  
pp. 19-39 ◽  
Author(s):  
Doren Chadee ◽  
Banjo Roxas
Keyword(s):  
Firm Performance ◽  
Institutional Environment ◽  
Innovation Capacity

Corporate governance and firm performance in Malaysia

2017 ◽  
Vol 17 (5) ◽  
pp. 896-912 ◽  
Author(s):  
Padmanabha Ramachandra Bhatt ◽  
R. Rathish Bhatt
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Design Methodology ◽  
Institutional Environment ◽  
Listed Companies ◽  
Resource Dependency ◽  
Government Agencies ◽  
Content Type ◽  
Corporate Governance Code ◽  
The Relationship

Purpose The purpose of this paper is to study the effect of Malaysian Code on Corporate Governance (MCCG, 2007 and 2012) on the performance of the listed companies in Malaysia. The agency theory and resource dependency theories indicate that the firms with strong corporate governance outperform firms with weaker governance. This paper explores this relationship in a developing country like Malaysia having different institutional environment compared to western countries. Design/methodology/approach The study used a sample of 113 listed companies in Malaysia. The study incorporates the endogenous relationship between corporate governance, firm performance and leverage. Findings The study analyzes how the corporate governance framework affected firm performance in Malaysia with the help of self-developed corporate governance index (MCGI). The authors’ findings show that the performance of the firm is positively and significantly related with corporate governance measured by MCGI. Secondly, corporate governance of sample firms shows marked improvements after implementation of MCCG 2012 as compared to MCCG 2007. Originality/value The findings of this paper support the agency and the resource dependency theories. The study contributes to the understanding of the relationship between the corporate governance and firm performance in emerging economy and builds a case for enforcement of strong corporate governance code by government agencies.

The Effects of Context on Trust in Firm-Stakeholder Relationships: The Institutional Environment, Trust Creation, and Firm Performance

2004 ◽  
Vol 14 (1) ◽  
pp. 141-160 ◽  
Author(s):  
Andrew C. Wicks ◽  
Shawn L. Berman
Keyword(s):  
Firm Performance ◽  
Recent Work ◽  
Institutional Environment ◽  
Empirical Work ◽  
Stakeholder Relationships ◽  
Key Stakeholders ◽  
The Subject

Abstract:Recent work on the subject speaks to the importance trust has for firm performance (e.g., Hagen and Choe, 1999; Hill, 1995). Yet little work has been done to show how context affects the ability of firms to create trust in relationships with key stakeholders. This paper looks at how the institutional environment may affect the performance of different strategies for managing firm-stakeholder relationships, and in turn, how this affects firm performance. The authors put forward propositions that build on these theoretical insights and offer prospects for future empirical work.

Strength in Stability: A Meta-Analysis of Family Firm Performance Moderated by Institutional Stability and Regime Type

2021 ◽  
pp. 104225872110268
Author(s):  
Todor S. Lohwasser ◽  
Felix Hoch ◽  
Franz W. Kellermanns
Keyword(s):  
Firm Performance ◽  
Family Involvement ◽  
Family Firms ◽  
Institutional Environment ◽  
Meta Analysis ◽  
Regime Type ◽  
Institutional Stability ◽  
Rights Protection ◽  
Property Rights Protection ◽  
The Relationship

This meta-analysis of 142 studies from 36 countries examines how the institutional environment moderates the relationship between family involvement and firm performance. Specifically, we investigate performance differences between family and nonfamily firms while using property rights protection, institutional stability, and a country’s regime type as moderators. Our analysis shows that institutional stability serves as a decisive moderator of the relationship between family involvement and firm performance and that family firms outperform nonfamily firms in democracies and autocracies but not in anocracies. Based on these findings, we provide and discuss both practical recommendations for family firms and theoretical implications for institutional theory.

Legal protection systems, corporate governance and firm performance: a cross-country comparison

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yosra Ghabri
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Legal System ◽  
Institutional Environment ◽  
Common Law ◽  
Investor Protection ◽  
Civil Law ◽  
Legal Protection ◽  
Content Type ◽  
Valuation Effect

Purpose This paper builds on the “Law and Finance” theory and aims to examine the effect of the legal and institutional environment on the governance–performance relationship in the context of non-US firms. More precisely, it examines whether and how the country’s legal system and the level of investor protection interact with the firm-level corporate governance and affect firm performance. Design/methodology/approach The authors used the “G-Index” governance score developed by the Governance Metrics International rating for a sample of 12,728 firm-year observations from 23 countries over the 2009–2016 period. Findings The results show that the interaction between the country-level institutions and corporate governance system significantly affect the firm performance. In particular, the findings indicate that firms operating in common law countries tend to exhibit a positive valuation effect and higher performance than firms with a comparable corporate governance level operating in civil law countries. More precisely, the authors find that in common law countries, higher investor protection with enhanced corporate governance is associated with better firm performance. However, firms operating in civil law countries with weaker investor protection and a comparable corporate governance level tend to experience a negative valuation effect. Originality/value The findings suggest that the institutional and legal environment is crucial and important in determining the value-maximizing level of good governance practices. Managers and regulators should carefully analyze the cost of these initiatives and should coordinate it with the needs of the country’s legal system. The challenge for the company will be how to adjust its corporate governance strategy according to the needs and demands of the country’s legal system in which the company operates to improve its performance. The regulators should ensure a fit between the specifics of the national legal and institutional environment and corporate governance standards and practices.

scholarly journals BUSINESS REGISTRATION AND FIRM PERFORMANCE: SOME LESSONS FROM INDIA

2016 ◽  
Vol 21 (03) ◽  
pp. 1650016 ◽  
Author(s):  
COLIN C WILLIAMS ◽  
ABBI M. KEDIR
Keyword(s):  
Firm Performance ◽  
World Bank ◽  
Institutional Environment ◽  
Policy Implications ◽  
Performance Reporting ◽  
Start Up ◽  
Tentative Explanation ◽  
World Bank Enterprise Survey ◽  
Enterprise Survey ◽  
Productivity Gains

The aim of this paper is to evaluate the impacts on future firm performance of a firm deciding to register from the outset of its operations. Until now, the assumption has been that starting up registered is linked to higher future firm performance. Reporting World Bank Enterprise Survey (WBES) data collected in 2014 on 9,281 formal enterprises in India, and controlling for other determinants of firm performance as well as the endogeneity of the registration decision, the finding is that formal enterprises that start up unregistered and spend longer unregistered have significantly higher subsequent annual sales and employment growth rates compared with those registered from the outset. When the number of years spent unregistered is included, there are also productivity gains from delaying registration. The tentative explanation is that in this weak institutional environment, the advantages of registering from the outset are outweighed by the benefits of deferring registration. Evaluating the policy implications, the argument is that there is a need to shift away from the conventional eradication approach toward unregistered startups based on the assumption they are unproductive, and toward a more facilitating approach that improves the benefits of being registered and tackles the systemic formal institutional deficiencies that lead entrepreneurs to delay their decision to register.

The effects of government relation and institutional environments on channel performance

2018 ◽  
Vol 30 (3) ◽  
pp. 587-604
Author(s):  
Fang Jia ◽  
Zhilin Yang ◽  
Ling (Alice) Jiang
Keyword(s):  
Firm Performance ◽  
Institutional Environment ◽  
Legal Protection ◽  
Institutional Factors ◽  
Institutional Environments ◽  
Content Type ◽  
Environment Factors ◽  
Government Relations ◽  
Government Interference ◽  
Channel Performance

PurposeThe purpose of this paper is to examine the importance of channel partners’ government relations within channel performance and explore how institutional factors interact to influence channel performance. A theoretical framework, inclusive of hypotheses, is proposed to demonstrate the interaction of government relations and institutional environments on firm performance. Drawing on an institutional perspective, this paper suggests that the effect of partner’s government relations on firm performance is moderated by institutional environment factors, such as government interference, legal protection, and the importance of guanxi.Design/methodology/approachThis study conducted a questionnaire survey and collected data from 393 Chinese manufacturer managers in China.FindingsPartner’s government relations increase focal firm’s performance and this effect is moderated by different levels of legal protection. Partner’s government relations increase firm performance only in the context of high-legal protection; whereas, when legal protection is low, partner’s government relations decrease focal firm performance. As for the interaction of institutional factors, legal protection and importance of guanxi, all three moderate the negative effect of government interference on firm performance.Originality/valueThis paper provides insights on how channel partner’s government relations, representing a key institutional capital, interact with institutional environment factors to influence channel performance.

Online social networks as an enabler of innovation in organizations

2015 ◽  
Vol 53 (9) ◽  
pp. 1906-1920 ◽  
Author(s):  
Daniel Palacios-Marqués ◽  
José M. Merigó ◽  
Pedro Soto-Acosta
Keyword(s):  
Social Networks ◽  
Knowledge Management ◽  
Firm Performance ◽  
Web 2.0 ◽  
Online Social Networks ◽  
Positive Relationship ◽  
Content Type ◽  
Significant Positive Relationship ◽  
Innovation Capacity ◽  
Hospitality Firms

Purpose – The purpose of this paper is to study the effect of online social networks on firm performance and how this technology can help to create value. The authors approach the problem from the Resource-Based View in order to analyze if online social networks can be considered source of competitive advantage and how it can enhance or complement essential marketing competences. Design/methodology/approach – The data were obtained from a survey based on the Spanish hospitality firms. This sector was chosen because Web 2.0 is becoming an important marketing channel in the tourism industry, and especially in hospitality firms. In addition, Spain is the one of the largest tourist destination in the world and has a strong presence of social media and Web 2.0 use by the population and hospitality enterprises. Between February and June 2012, the questionnaire was sent to all top managers of four-star and five-star Spanish hospitality firms. The authors received 197 questionnaires, but four of them were eliminated due to errors or because they were received too late. Findings – Results show that there is a statistically significant positive relationship between online social networks and innovation capacity and that the relationship between online social networks and firm performance is fully mediated by innovation capacity. In turn, the authors find a statistically significant positive relationship between innovation capacity and performance in the hotel industry. Originality/value – The authors discuss the importance of online social networks in the development of innovation competences through business intelligence and knowledge management that result in higher performance. The authors also consider the ways in which online social networks enhance knowledge management.

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