Do government subsidies crowd out technological capabilities?

2020 ◽  
Vol 14 (4) ◽  
pp. 895-913
Author(s):  
Shuangying Chen ◽  
Feng Fu ◽  
Tingting Xiang ◽  
Junli Zeng
Keyword(s):  
Fixed Effects ◽  
Transitional Economy ◽  
Future Research ◽  
High Tech ◽  
Crowding Out ◽  
Technological Capabilities ◽  
Firm Innovation ◽  
Content Type ◽  
Government Subsidies ◽  
Crowd Out

Purpose Extant research on the crowding-out effects of government subsidies on the positive role of firm innovation resources or activity remains limited. This paper aims to investigate the crowding-out effects of subsidies on the utilization of technological capabilities and also the contingency mechanisms of market-oriented economy based on the resource-based view (RBV), given the co-existence of the subsidies and technological capabilities for firm innovation in transitional economy. Design/methodology/approach This paper used panel data of 115 Chinese high-tech firms from 2002 to 2010. Fixed-effects model was used to test several hypotheses. Findings This paper empirically demonstrates that the subsidies crowd out the utilization of firms’ technological capabilities for invention outcomes in the near-term. Furthermore, this paper finds that the crowding-out effects are weaker when firms have high export intensity or are located in provinces with high market-oriented systems. Research limitations/implications The findings of this paper apply to Chinese firms. Future research could test their generalizability to different samples and other transitional economies. Practical implications This paper highlights the crowding-out effects of the subsidies, revealing that high-tech firms should balance the direct effects and crowding-out effects of the subsidies. Originality/value This paper highlights the neglected interactions between the subsidies and technological capabilities based on RBV and provides a more nuanced understanding of the crowding-out effects of the subsidies in transitional economy.

Impact of trade facilitation reforms on tax revenue

2017 ◽  
Vol 44 (5) ◽  
pp. 765-780 ◽  
Author(s):  
Sena Kimm Gnangnon
Keyword(s):  
Developing Countries ◽  
Fixed Effects ◽  
Data Availability ◽  
Empirical Literature ◽  
Future Research ◽  
Tax Revenue ◽  
Trade Facilitation ◽  
Content Type ◽  
The World ◽  
The Impact

Purpose The purpose of this paper is to contribute to the empirical literature of the macroeconomic effect of trade facilitation reforms by examining the impact of the latter on tax revenue in both developed and developing countries. The relevance of the topic lies on the fact that at the Bali Ministerial Conference of the World Trade Organization (WTO) in 2013, Trade Ministers agreed for the first time since the creation of the WTO (in 1995) on an Agreement to facilitate trade around the world, dubbed Trade Facilitation Agreement (TFA). The study considers both at-the-border and behind-the border measures of Trade Facilitation. Design/methodology/approach To conduct this study, the authors rely on the literature related to the structural factors that explain tax revenue mobilization. The authors mainly use within fixed effects estimator. The analysis relies on 102 countries (of which 23 industrial countries) over the period 2004-2007 (based on data availability). A focus has also been made on African countries, within the sample of developing countries. Findings The empirical analysis suggests evidence of a positive and significant effect of trade facilitation reforms on non-resources tax revenue, irrespective of the sample of countries considered in the analysis. Research limitations/implications This finding should contribute to dampening the fear of policymakers in developing countries, including Africa that the implementation of the TFA would entail higher costs, without necessarily being associated with higher benefits. An avenue for future research would be to extend the period of the study when data would be available. Originality/value To the best of the authors knowledge, this study had not been performed in the literature of the determinants of tax revenue mobilization, although fact-based analysis was performed.

Does deal size moderate the effects of board faultlines? Evidence from acquisitions

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Daniel Tidbury ◽  
Steven F. Cahan ◽  
Li Chen
Keyword(s):  
Fixed Effects ◽  
Quantitative Research ◽  
Future Research ◽  
Research Approach ◽  
Strategic Decisions ◽  
Negative Effects ◽  
Content Type ◽  
Instrumental Variable Analysis

Purpose Board faultlines, which reflect intrinsic divisions of board members into relatively homogeneous subgroups, are associated with poor firm performance. This paper aims to extend the existing board faultline research by examining how acquisition deal size moderates the negative implications of board faultlines. Design/methodology/approach This paper uses a sample of acquisitions and a quantitative research approach to conduct statistical analysis. Findings Using a sample of acquisitions announced between 2007 and 2016, this paper finds evidence suggesting that strong faultlines are associated with poorer acquisition outcomes in the long-term, but not in the short term. Further, this paper finds that the effect of faultline strength on long-term acquisition outcomes is weaker for larger acquisition deals than smaller acquisition deals. The findings are consistent with deal size moderating the relation between faultlines and acquisition outcomes. Research limitations/implications This paper addresses possible endogeneity through firm fixed effects and instrumental variable analysis. Although this paper provides evidence on the moderating role of deal size in the context of faultlines, future research could examine the role of additional moderators, such as pro-diversity, trust, board leadership and board and task characteristics. Practical implications The findings suggest that boards need to be aware of situations where the negative effects of faultlines are more likely to come to the fore. For example, faultlines are more likely to play a role in more routine, obscure monitoring than for high-profile strategic decisions. Originality/value The study is multidisciplinary as it draws on the management, organizational behaviour and psychology and finance literature. It contributes to the developing literature on faultlines in several important ways. First, this paper supports their view that faultlines have adverse effects on board performance by showing that faultlines negatively impact discrete strategic investment decisions. Second, this paper provides evidence that deals size moderates the faultline-acquisition performance relation, indicating that the role of faultlines is contextual. Third, this paper finds evidence that suggests investors do not factor in board faultlines when responding to acquisition announcements.

Assessing the effects of flight delays, distance, number of passengers and seasonality on revenue

Kybernetes ◽  
2019 ◽  
Vol 48 (9) ◽  
pp. 2138-2149
Author(s):  
Murat Guven ◽  
Eyup Calik ◽  
Basak Cetinguc ◽  
Bulent Guloglu ◽  
Fethi Calisir
Keyword(s):  
Panel Data ◽  
Fixed Effects ◽  
Future Research ◽  
Negative Effects ◽  
Flight Delays ◽  
Content Type ◽  
Positive Effects ◽  
Common Correlated Effects ◽  
Flight Delay ◽  
Airline Company

Purpose This study aims to investigate the effects of flight delays, distance, number of passengers and seasonality on revenue in the Turkish air transport industry. Design/methodology/approach The domestic return routes of a Turkish airline company were examined to address this issue. Among five cities and six airports, 14 major domestic return routes were selected. The augmented mean group (AMG) estimator and common correlated effects mean group (CCEMG) estimator were conducted with a two-way fixed effects (FE) robustness test in this study. Findings The results show that arrival flight delay and departure flight delay had negative effects on revenue, whereas the distance between airports, the number of air passengers and seasonality had positive effects on revenue. Research limitations/implications The data used in this study were retrieved from a Turkish airline company; for future research, other airline companies operating in Turkey may be included. Practical implications These findings could be evaluated by air transportation leaders to provide a guide to make strategic decisions to achieve greater performance in this competitive environment. Originality/value The originality of the paper comes from the facts that besides distance and number of passengers, the authors control for the seasonality when assessing the effects of flight delay on revenue; they use panel data techniques, which permit them to control for individual heterogeneity, and create more variability, more efficiency and less collinearity among the variables; they use two recent panel data techniques, CCEMG and AMG, allowing for cross-section dependence.

scholarly journals The effect of Islamic values on voluntary corporate governance disclosure

2017 ◽  
Vol 8 (2) ◽  
pp. 182-202 ◽  
Author(s):  
Waleed M. Albassam ◽  
Collins G. Ntim
Keyword(s):  
Corporate Governance ◽  
Fixed Effects ◽  
Future Research ◽  
Government Ownership ◽  
Firm Level ◽  
Content Type ◽  
Listed Firms ◽  
Alternative Measures ◽  
Islamic Values ◽  
Practical Implications

Purpose The study aims to examine the effect of Islamic values on the extent of voluntary corporate governance (CG) disclosure. In addition, the authors investigate the effect of traditional ownership structure and CG mechanisms on the extent of voluntary CG disclosure. Design/methodology/approach The authors distinctively construct Islamic values and voluntary CG disclosure indices using a sample of 75 Saudi-listed firms over a seven-year period in conducting multivariate regressions of the effect of Islamic values on the extent of voluntary CG disclosure. The analyses are robust to controlling for firm-level characteristics, fixed-effects, endogeneities and alternative measures. Findings The authors find that corporations that depict greater commitment towards incorporating Islamic values into their operations through high Islamic values disclosure index score engage in higher voluntary CG disclosures than those that are not. Additionally, the authors find that audit firm size, board size, government ownership, institutional ownership and the presence of a CG committee are positively associated with the level of voluntary CG disclosure, whereas block ownership is negatively associated with the extent of voluntary CG disclosure. Practical implications The study has clear practical implications for future research, practice and broader society by demonstrating empirically that corporations that voluntarily incorporate Islamic values into their operations are more likely to be transparent about their CG practices and thereby providing new crucial insights on the effect of Islamic values on voluntary CG compliance and disclosure. Originality/value This is the first empirical attempt at explicitly examining the effect of Islamic values on the extent of voluntary CG disclosure. The authors also offer evidence on the effect of traditional CG and ownership structures on the extent of voluntary CG disclosure.

Human capital and innovation: mixing apples and oranges on the board of high-tech firms

2019 ◽  
Vol 58 (5) ◽  
pp. 897-926 ◽  
Author(s):  
Fabrizia Sarto ◽  
Sara Saggese ◽  
Riccardo Viganò ◽  
Marianna Mauro
Keyword(s):  
Human Capital ◽  
Ordinary Least Squares ◽  
Primary Sources ◽  
Limited Attention ◽  
High Tech ◽  
Firm Innovation ◽  
High Tech Industry ◽  
Content Type ◽  
The Relationship ◽  
Practical Implications

Purpose The purpose of this paper is to provide insights into the implications of board human capital heterogeneity for company innovation by focusing on the educational and the functional background of directors. Moreover, it examines the moderating effect of the CEO expertise-overlap within the innovation domain on the relationship between board human capital heterogeneity and firm innovation. Design/methodology/approach The hypotheses are tested through a set of ordinary least squares regressions on a unique dataset of 149 Italian high-tech companies observed between 2012 and 2015. Findings Findings show that the educational and the functional background heterogeneity of directors increase both the innovation input and output. However, results highlight that these relationships are negatively moderated by the CEO expertise-overlap within the innovation domain. Practical implications The paper emphasizes the importance of appointing directors with different and specific educational and functional backgrounds to foster the company innovation. Originality/value The paper fills a gap in the literature as it has devoted limited attention to the performance implications of board human capital heterogeneity in the high-tech industry where knowledge and skills are the primary sources of value. Moreover, the paper integrates the research on the CEO-board interface by shedding light on how the CEO expertise within the innovation domain affects the contribution of heterogeneous boards to company innovation.

Value creation through innovation in the primary sector

2020 ◽  
Vol 12 (4) ◽  
pp. 475-487
Author(s):  
Pablo Colman ◽  
Jan Harwell ◽  
Pauline Found
Keyword(s):  
Environmental Sustainability ◽  
Global Economy ◽  
Common Property ◽  
Essential Element ◽  
Future Research ◽  
High Tech ◽  
Theoretical Frameworks ◽  
Full Spectrum ◽  
Content Type ◽  
Primary Sector

Purpose Innovation is a growing topic. The primary sector is also a subject that has great importance in the global economy. However, limited research has been conducted linking these two subjects. This paper aims to start bringing them together. Design/methodology/approach The method selected is a systematic literature review presenting a thorough analysis of the existing discussions and a summary of the findings to identify future research opportunities. Findings Innovation has played and will continue to play an essential role in the success of fisheries. The fishing industry is in crisis. A decline in wild fish stocks, regulations and quota management are some of the factors that drive the need to innovate. The discussions of innovation in this industry are non-technological, which is an emerging field with opportunities for further research. There is a strong focus on fisheries sustainability. The main theoretical frameworks discussed in the literature are common property theory, cooperation and competition theory and diffusion of innovation. Emerging environmental sustainability frameworks are also becoming an essential element in the primary sector. Research limitations/implications This paper focuses on peer-reviewed publications based on the results of the searches from selected keywords, recognizing that the literature evaluated may not cover the full spectrum of themes related to this subject. Originality/value Innovation is usually linked to high tech and fast-moving industries. This paper tries to broaden this paradigm and evaluate it from a different perspective, with a focus on the primary sector.

scholarly journals The effects of microfinance on women’s empowerment: new evidence from Bangladesh

2017 ◽  
Vol 44 (12) ◽  
pp. 1745-1757 ◽  
Author(s):  
Mohammad Mafizur Rahman ◽  
Rasheda Khanam ◽  
Son Nghiem
Keyword(s):  
Fixed Effects ◽  
Household Survey ◽  
Women's Empowerment ◽  
Baseline Data ◽  
Women’S Empowerment ◽  
Primary Data ◽  
Future Research ◽  
Development Projects ◽  
Control Groups ◽  
Content Type

Purpose The purpose of this paper is to examine the effects of microcredit on women’s empowerment in rural Bangladesh using the latest primary data. Design/methodology/approach Primary data have been collected by a household survey in the four districts of Bangladesh. Logistic regression is used to estimate the odd of improving women empowerment after participating in microfinance. Findings The results show positive impacts of microfinance on most of the selected indicators for women’s empowerment. Research limitations/implications Lack of control groups and baseline data are the main limitation of this research. Future research can address this issue by selecting institutions with baseline data or control groups. Practical implications The findings of the study can help policy makers to adopt appropriate policies that integrate empowerment in development projects with women. Social implications The results of this research could encourage more women to participate in microfinance activities and development projects. Originality/value This research provides the most updated data from a primary survey in Bangladesh. The authors also mitigate the possible selection biases by using a fixed-effects estimator.

scholarly journals Entrepreneurial preparedness: an exploratory case study of Chinese private enterprises

2014 ◽  
Vol 20 (4) ◽  
pp. 351-374 ◽  
Author(s):  
Catherine L. Wang ◽  
Mohammed Rafiq ◽  
Xiaoqing Li ◽  
Yu Zheng
Keyword(s):  
Future Research ◽  
High Tech ◽  
Private Enterprises ◽  
Longitudinal Case Study ◽  
Structured Interviews ◽  
Content Type ◽  
Exploratory Case Study ◽  
Entrepreneurial Management ◽  
Practical Implications

Purpose – The purpose of this paper is to advance the conceptualisation of entrepreneurial preparedness (EP), and study how EP occurs in new venture creation and management. Design/methodology/approach – The paper primarily draws evidence from an exploratory case study of two Chinese high-tech private enterprises operating in the healthcare industry in Beijing, following a two-stage sampling process: informal, purposive sampling; and formal, theoretical sampling. Qualitative data collected from multiple semi-structured interviews within each firm were analysed using a thematic analytical framework. Findings – The paper advances the conceptualisation of EP as a cumulative, social and purposeful learning process. Accordingly, the paper highlights the roles of experiential learning, social learning and entrepreneurial goals (both performance and learning goals) as mechanisms that enable EP in entrepreneurial management. Research limitations/implications – The findings reveal idiosyncrasies of EP in a particular context. Future research may investigate different types of entrepreneurs or entrepreneurial firms. Furthermore, this study uses triangulation of retrospective interview data with concurrent interview and secondary data. Future research may pursue concurrent longitudinal case study data to unpack real-time events in entrepreneurial management. Practical implications – The findings have practical implications for entrepreneurs and “would-be” entrepreneurs to better understand their learning needs and how they can prepare themselves for entrepreneurial challenges. Originality/value – EP as an emerging concept within the entrepreneurial learning (EL) literature requires conceptual and empirical development. The paper advances the conceptualisation of EP, supported with empirical evidence. By articulating the cumulative, social and purposeful nature of EP, the paper contributes to the understanding of the human and social dynamics of EL.

Cooperation and novelty innovation: a study for Argentina

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Carolina Pasciaroni ◽  
Andrea Barbero
Keyword(s):  
Latin American ◽  
Developed Countries ◽  
Future Research ◽  
Firm Level ◽  
Firm Innovation ◽  
Industrial Firms ◽  
Content Type ◽  
Business Partners ◽  
Innovation Surveys ◽  
Partner Types

Purpose This paper aims to analyse the influence of cooperation on the degree of novelty of technological innovations introduced by industrial firms in Argentina. This influence is analysed from three perspectives: cooperation by partner type [business partners or scientific and technological centres (S&T) partners]; cooperation by number of partner types, from no cooperation to cooperation with two partner types; and cooperation by goals pursued by firms. Design/methodology/approach The data come from one of the last national innovation surveys conducted in Argentina. The study controls for endogeneity, using instrumental variable procedures within the conditional mixed-process (CMP) framework. Findings The main result is the influence of cooperation with universities and S&T centres on the introduction of more novel innovations, which was found both in estimations with and without endogeneity correction. This influence was verified for more complex goals (R&D, technology transfer and industrial design and engineering) as well as for less complex ones (tests and trials, human resources training, quality management and certification). Business cooperation seems to impact only on a lower degree of novelty for more complex goals. The increase in the number of partners that the firm cooperates with, from no cooperation to joint cooperation with two partner types, influences more novel innovations. Research limitations/implications Limitations and proposals for future research are discussed at the end of the study. Practical implications The results of this study contrast with the high propensity to cooperate with business partners shown by firms in Argentina and other Latin American countries. Therefore, this paper may help formulate more effective policies to promote cooperation conducive to firm innovation performance. Limitations and proposals for future research are discussed at the end of the study. Originality/value Although there is empirical evidence on this topic for developed countries, firm-level studies on cooperation and degree of novelty are scarce for Latin America. In addition, this paper analyses cooperation not only by type of partner but also by type of goal. This study attempted to control for endogeneity by using instrumental variables within the CMP framework.

scholarly journals Radical innovation in family firms: a systematic analysis and research agenda

2020 ◽  
Vol 26 (6) ◽  
pp. 1199-1234 ◽  
Author(s):  
Qilin Hu ◽  
Mathew Hughes
Keyword(s):  
Family Firms ◽  
Radical Innovation ◽  
Family Firm ◽  
Critical Discussion ◽  
Incremental Innovation ◽  
Future Research ◽  
Firm Innovation ◽  
Systematic Analysis ◽  
Content Type ◽  
Research Questions

PurposeInvestigation of family firm radical innovation is burgeoning but far less prevalent than studies of family firm innovation in general. Concurrently, studies repeatedly report that family firms exhibit mostly conservative and incremental innovation rather than more radical ones. This is unfortunate because without radical innovation, family firms risk a competency trap in which long-term competitiveness is lost to more innovative rivals. This situation has led to urgent calls among scholars to explicitly acknowledge the heterogeneity of family firm innovation and to understand the conditions for family firm radical innovation.Design/methodology/approachA systematic review of 51 papers categorized into four scholarly conversations build the foundation for a critical discussion of each line of inquiry.FindingsThe authors analyze 51 leading articles and identify four persistent theoretical positions: (1) RBV and capabilities, (2) agency and stewardship, (3) behavioral agency and socioemotional wealth, and (4) the ability and willingness paradox. The authors identify key research problems and research questions needing urgent scholarly and present a framework that captures their complementary and competing assumptions to enable rigorous future research.Originality/valueTo galvanize and spearhead future research efforts, this paper provides a critical analysis of our understanding of family firm radical innovation with a specific emphasis on the theoretical assumptions at the core of existing investigations and the eight most important research questions in need of answers.

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