scholarly journals Competitiveness and managerial discretion: an empirical investigation at the national-level

2019 ◽  
Vol 29 (2) ◽  
pp. 181-203 ◽  
Author(s):  
Moustafa Salman Haj Youssef ◽  
Hiba Maher Hussein ◽  
Ioannis Christodoulou
Keyword(s):  
National Level ◽  
Positive Influence ◽  
Managerial Discretion ◽  
Strategic Decisions ◽  
Data Set ◽  
Content Type ◽  
Global Competitiveness ◽  
National Competitiveness ◽  
Survey Responses ◽  
Country Competitiveness

PurposeThe purpose of this paper is to examine the national-level predictors of country competitiveness using the concept of managerial discretion. The objective is to empirically link the strategic management discipline particularly the upper echelon theory to the concept of country performance measured by competitiveness.Design/methodology/approachThis paper tests the proposed relationship between managerial discretion and country competitiveness using a sample of 18 countries from 6 different regional clusters. Discretion scores are generated from survey responses of prominent senior management consultants, while country competitiveness is measured via the Global Competitiveness Index developed by the World Economic Forum. A multi-level regression analysis on the panel data set spanning 10 years of national competitiveness levels is used to empirically demonstrate the association between managerial discretion and country competitiveness.FindingsThe authors show that managerial discretion is a direct predictor of national competitiveness through its ability to provide CEOs with a wider array of actions to innovate and enhance firm performance which will ultimately contribute to country competitiveness.Practical implicationsThe positive influence of managerial discretion on country competitiveness provide an interesting framework to examine the influence of firms over public policy-making. Additionally, with businesses becoming increasingly globalized, the profile of countries becomes of a great importance and can become a tool for corporate strategic decisions, such as: market entry strategies.Originality/valueBy linking the well-known term of competitiveness to the concept of managerial discretion, the authors provide a totally new approach to assess country performance. Additionally, this paper contributes to the growing literature of managerial discretion by discovering new national-level consequences.

Does logistics influence economic growth? The European experience

2017 ◽  
Vol 55 (8) ◽  
pp. 1613-1628 ◽  
Author(s):  
Vittorio D’Aleo ◽  
Bruno S. Sergi
Keyword(s):  
Economic Growth ◽  
Equation System ◽  
Simultaneous Equation ◽  
Positive Influence ◽  
Strategic Decisions ◽  
Content Type ◽  
Global Competitiveness ◽  
Simultaneous Equation System ◽  
Global Competitiveness Index ◽  
Competitiveness Index

Purpose The purpose of this paper is to set forth a new economic model that includes variables that take account the mediator effect of global competitiveness index to better identify the whole phenomenon behind the relationship between GDP and competition in Europe. Design/methodology/approach The authors test the consistency of the Baron and Kenny mediator model through an explanatory linear regression model, then the authors deploy a panel analysis and a simultaneous equation system to assess the model consistency to bypass much of the endogeneity problem. Findings This paper’s findings show a positive influence of global competitiveness index on GDP and this effect is by far more evident when other variables (e.g. the logistics performance index) interact simultaneously. Research limitations/implications The GCI is a correct variable to assess growth. The study shows how the recent economic crisis has increased the importance of competitiveness for economic recovery as well as key strategic decisions aimed at strengthening growth and competitiveness. Originality/value This paper’s theoretical construct is a unique methodology applied to disentangle the role of a new model that takes account of global competitiveness index as a mediator variable to economic growth.

scholarly journals Strategizing in a focused context: managerial discretion in the Arab world

2017 ◽  
Vol 10 (4) ◽  
pp. 430-452 ◽  
Author(s):  
Moustafa Salman Haj Youssef ◽  
Ioannis Christodoulou
Keyword(s):  
Cultural Context ◽  
Cultural Practices ◽  
Arab World ◽  
National Level ◽  
Managerial Discretion ◽  
Cultural Dimensions ◽  
Context Dependency ◽  
Content Type ◽  
Gender Egalitarianism ◽  
Survey Responses

Purpose The purpose of this paper is to broaden the national-level construct of managerial discretion and to investigate the effect of cultural practices on executive discretion. Design/methodology/approach Based on a sample of six Arabian countries and using a panel of prominent cross-cultural scholars who provided 262 discretion scores for the sample countries, the authors replicate and extend the national framework of Crossland and Hambrick (2011) in a new cultural context. The cultural dimensions were measured using survey responses of middle managers based on House et al.’s (2004) cultural practices scale. Findings The authors extend the national-level framework of managerial discretion and find that an encompassing array of cultural practices plays a crucial role in shaping the degree of discretion provided to CEOs. The authors empirically demonstrate that power distance, future and performance orientation, along with gender egalitarianism and assertiveness have positive relationships with managerial discretion. However, institutional collectivism, uncertainty avoidance and humane orientation negatively affect the degree of discretion provided to CEOs. Originality/value The study fills a gap in the literature regarding the national-level framework of managerial discretion. The results indicate that executives can take idiosyncratic and bold actions to the extent to which the cultural environment allows them to do so. Also, the authors discover new national-level antecedents of managerial discretion that have not been considered in earlier studies and confirm the context dependency of this concept.

Smart economic development patterns in Europe: interaction with competitiveness

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jurgita Bruneckienė ◽  
Jonas Rapsikevičius ◽  
Mantas Lukauskas ◽  
Ineta Zykienė ◽  
Robertas Jucevičius
Keyword(s):  
Economic Development ◽  
Industrial Revolution ◽  
European Countries ◽  
Low Carbon ◽  
Data Set ◽  
Content Type ◽  
Low Carbon Economy ◽  
Global Competitiveness ◽  
Cross Country ◽  
The 2008 Financial Crisis

Purpose This paper aims to investigate the smart economic development (SED) patterns in Europe in relation to competitiveness. Motivational focus corresponds to global events: the fourth industrial revolution, transition to a low-carbon economy, economic shocks (such as the 2008 financial crisis, Brexit or the coronavirus pandemic), which requires rethinking development policies, targeting competitiveness increase and reducing imbalances in economic development. Design/methodology/approach The analysis includes self-organising neural networks cluster analysis and correlations, comparative analysis of SED indicators structure and cumulative index estimation with World Economic Forum (WEF) global competitiveness index. The panel data set of 19 years from 2000 to 2018 for 30 European countries. Findings Overall, cross-country examination suggests that European countries of higher competitiveness illustrate higher estimates in SED. The key determinants are juridical fairness, social responsibility, competence building, intelligence and welfare employment to develop smart patterns for reaching higher competitiveness. Research limitations/implications The limitations relate to the particular sample of European countries and gathering statistical data and a methodology of the SED index calculation. In addition, the paper contains a macroeconomic environment focus on competitiveness estimation. Further research may be improved with micro and mezzo environment incorporation at a cross-country analysis level. Practical implications By linking well-known terms of competitiveness and economic development with a concept of smartness, new approaches to policymaking emerged. The methodology presented in this paper has implications for territorial cohesion policies, competitiveness and branching strategies. The combination of SED sub-indexes and WEF GCI might aid a more accurate ex ante measurement. Social implications The findings are essential for fostering a smart approach in economic development for long-term competitiveness. Originality/value This paper provides original empirical evidence about the relationship between SED and competitiveness and adds new knowledge that smartness becomes a way for building countries’ competitiveness by identified two profiles of SED patterns by development stages, namely, integrated to economic development and institutional-based which is divided to focus and balanced.

Impact of exchange rates on exports from India’s sub-national economies

2019 ◽  
Vol 8 (2) ◽  
pp. 166-184
Author(s):  
Khee Giap Tan ◽  
Sasidaran Gopalan ◽  
Jigyasa Sharma
Keyword(s):  
Exchange Rates ◽  
Export Performance ◽  
National Level ◽  
Skewed Distribution ◽  
Significant Finding ◽  
Data Set ◽  
Content Type ◽  
National Economies ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to examine the impact of real effective exchange rates (REER), both in terms of levels and volatility, on the export performance of India’s sub-national economies, given the recent slowdown in India’s exports. Design/methodology/approach India’s export distribution is highly asymmetric, with 90 percent of India’s exports concentrated in 11 sub-national economies. Exploiting this concentration, this paper constructs a panel data set using available data between 2002 and 2014 to understand the relationship between REER and exports from the top exporting cluster. Moreover, the paper constructs a sub-national competitiveness index to capture the supply capacity of the states. Findings The empirical findings of this paper reveal that a higher REER volatility deters exports and movements in REER do not matter as much as volatility. The most significant finding of the paper is that state competitiveness is the most crucial factor affecting trade. Therefore, policy makers at the state level must lay more emphasis on the supply side such as addressing logistical bottlenecks to help revive exports growth. Originality/value This study makes a departure from the plethora of extant aggregate-level studies by examining the relationship between REER and exports at the sub-national level for India. Considering the highly skewed distribution of India’s exports, the study provides important insights into the exporting patterns and determinants that are at play at the sub-national level.

scholarly journals The more you value, the less you practice: a study on culture and managerial discretion

2019 ◽  
Vol 27 (1) ◽  
pp. 26-50
Author(s):  
Moustafa Salman Haj Youssef ◽  
Hiba Maher Hussein ◽  
Hoda Awada
Keyword(s):  
Decision Making ◽  
Organizational Performance ◽  
Cultural Values ◽  
Cultural Practices ◽  
National Level ◽  
Holistic Approach ◽  
Managerial Discretion ◽  
Cross Cultural ◽  
Cultural Dimensions ◽  
Content Type

Purpose The purpose of this paper is to examine cross-cultural differences in managerial discretion and the extent to which variations and interaction of cultural practices and values affect the degree of freedom in decision making that is accorded to executives. This paper offers a holistic approach to investigating culture in addition to acknowledging its paradoxical nature. Design/methodology/approach Using a panel of prominent management consultants to rate discretion across 18 countries, the authors further develop the national-level construct of managerial discretion by empirically investigating the influence of cultural practices and values on CEOs’ discretion. Findings The study reveals that cultural values moderate the relationship between cultural practices and managerial discretion for three cultural dimensions: individualism, uncertainty tolerance and power distance (PD). By adopting the logic of marginal utility, the authors also show that the more a society values individualism, uncertainty tolerance and PD, the weaker the effect of their practices on managerial discretion. Originality/value Few research has attempted to assess both cultural values and practices in relation to managerial discretion. By showing the mechanism in which culture affects the level of managerial discretion, the authors offer new theoretical insights and practical implications, overall contributing to the field of cross-cultural and strategic management. Finally, this will offer CEO’s a new perspective of leveraging culture as a tool, enhancing their decision-making capabilities in the aim of improving organizational performance.

Does video games’ popularity affect unemployment rate? Evidence from macro-level analysis

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Petr Parshakov ◽  
Sofiia Paklina ◽  
Dennis Coates ◽  
Aleksei Chadov
Keyword(s):  
Video Games ◽  
Unemployment Rate ◽  
Video Game ◽  
Leisure Activities ◽  
Leisure Activity ◽  
Youth Unemployment ◽  
Positive Influence ◽  
Data Set ◽  
Prize Money ◽  
Content Type

PurposeVideo games are considered as a leisure activity that makes being unemployed more attractive than before. In this study, the authors use eSports prizes as a proxy for the popularity of video games to analyze its influence on total and youth unemployment.Design/methodology/approachThe authors develop a theoretical model and empirically test it using the total prize money won by representatives of a country in a given season in eSports tournaments, via a panel regression model with the country-year as a unit of observation. The data set includes information about 191 countries between 2000 and 2015.FindingsThe authors’ results of regression analysis show a positive influence of the popularity of video games on the unemployment rate. In addition, the authors analyze this effect for countries with different levels of income and labor productivity. The authors found a significant inverse relationship between income level and the effect of the popularity of video games on total and youth unemployment.Originality/valueWhile previous studies rely mostly on self-reported data, the authors suggest a new approach to measure video game popularity. This paper contributes to existing knowledge with empirical evidence on how leisure activities affect unemployment at the country level.

Corporate tax planning and corporate tax disclosure

2019 ◽  
Vol 28 (2) ◽  
pp. 327-364
Author(s):  
Mahfoudh Hussein Mgammal
Keyword(s):  
Positive Impact ◽  
Positive Influence ◽  
Tax Planning ◽  
Corporate Tax ◽  
Effective Tax Rate ◽  
Firm Level ◽  
Data Set ◽  
Content Type ◽  
The Impact ◽  
Practical Implications

Purpose This paper aims to examine the impact of corporate tax planning (TP) on tax disclosure (TD). Using tax expenses data set, with the detailed effective tax rate (ETR) by reconciling individual items of income and expenses. Design/methodology/approach A firm-level panel data set is used to analyse 286 non-financial listed companies on Bursa Malaysia that spans the period 2010-2012. Multivariate statistical analyses were run on the sample data. The empirical understanding of TD depends on public sources of data in the financial statement, characterized in the aggregated note of tax expenses. Fitting with Malaysian environment, the authors measured TD using modified ETR reconciling items. Findings Results show that TP, exhibit a robust positive influence on TD. This suggests that TP is related to lower corporate TD. In addition, companies with high TP attempt to mitigate the disclosure problem by increasing various TD. The authors further find significant positive impact between each of firm size and industry dummy, on TD. This means that company-specific characteristics are significant factors affecting corporate TD. Research limitations/implications This study contributes to the literature on the effect of TP on TD. It depends on both the signalling theory and the Scholes–Wolfson framework, which are the main theories concerned with TP and TD. Therefore, from a theoretical side, the authors add to the current theories by verifying that users are the party influenced whether positively or negatively, by the extent of TD or the extent of TP activities through Malaysian organizations. Practical implications The evidence found in this paper has important policy and practical implications for the authorities, researchers, decision makers and company managers. The findings can provide them some relevant insights on the importance of TP actions from companies’ perspective and contribute to the discussion of who verifies and deduces from TD directed by companies. Originality/value This paper originality is regarded as the first attempt to examine the impact of TP on TD in a developing country such as Malaysia. Malaysian setting is an interesting one to examine because Malaysia could be similar to other countries in Southeast Asia. Results contribute significant insights to the discussion about TD regarding, which parties are responsible for the verification of TD by firms, and which parties benefit from this disclosure. Findings suggest that companies face a trade-off between tax benefits and TD when selecting the type of their TP.

Entrepreneurial orientation and performance of SMEs in the services industry

2015 ◽  
Vol 28 (2) ◽  
pp. 194-212 ◽  
Author(s):  
María José Rodríguez-Gutiérrez ◽  
Pilar Moreno ◽  
Pilar Tejada
Keyword(s):  
Entrepreneurial Orientation ◽  
National Level ◽  
Business Environment ◽  
Data Set ◽  
Unit Of Analysis ◽  
Content Type ◽  
Competitive Success ◽  
Resources And Capabilities ◽  
Services Industry ◽  
And Performance

Purpose – The purpose of this paper is to examine both the sources of competitiveness of small and medium- sized enterprises (SMEs) in the services industry measured by their capability to grow, and the relative importance of each of these sources. More specifically, the resources and capabilities of Spanish SMEs in the services industry that may become sources of competitive advantage are analysed. Design/methodology/approach – In order to achieve this objective, this paper is organized as follows. First, a concise overview of prior research on determinants of performance of SMES is provided, outlining the role of factors regarding resources and capabilities. Second, a set of lineal regression models are performed to test the hypothesis research. In line with several previous studies, competitive success and performance of the company are approached through the recent evolution of firms in terms of employment, turnover and productive investment. The data set comes from a survey on Spanish SMEs operating in the services industry that was carried out between the end of 2010 and the beginning of 2011. Findings – The findings reveal that entrepreneur characteristics, firm features and managerial attributes have significant effect on the business performance. The results from the empirical analysis indicate that competitive success of the Spanish SMEs in the service industry is conditioned by macroeconomic and social factors related to the general business environment and especially by business factors concerning the entrepreneurial orientation of the firm, these findings are consistent with those of earlier research conducted at both an international level a national level. Originality/value – The fundamental contribution of SMEs to the overall performance of the economy constitutes a crucial motive for researchers to investigate and examine the key success factors behind these enterprises. This issue has been analysed exhaustively for the manufactured goods industry, but has scarcely been addressed for the services industry. Thus, further research is needed to clarify the variables explaining survival and success for services SMEs. Furthermore, since this research is focused on the microeconomic level, by considering the firm as the unit of analysis, it contributes towards complementing previous research on this topic that has been conducted from a macroeconomic approach. Thus it attempts to provide certain empirical evidences for support the traditional academic debate between economic and administrative disciplines concerning the appropriate unit of analysis for the understanding and explanation of businesses competitiveness.

scholarly journals Exploring cultural heterogeneity

2018 ◽  
Vol 18 (2) ◽  
pp. 241-263 ◽  
Author(s):  
Moustafa Salman Haj Youssef ◽  
Ioannis Christodoulou
Keyword(s):  
National Level ◽  
Strong Relationship ◽  
Managerial Discretion ◽  
Strategic Decision ◽  
Cultural Variation ◽  
Spatial Homogeneity ◽  
Cultural Heterogeneity ◽  
Business Executives ◽  
Cultural Research ◽  
Survey Responses

Research on the degree of managerial discretion, or latitude of action, accorded to executives at the national level has primarily focused on the effect of intercultural variation in values on managerial discretion by assuming spatial homogeneity within countries. However, evidence in cross-cultural research indicates that cultural heterogeneity within countries can be as salient as or sometimes even more than inter-country variation. Thus, this study examines the extent to which intra-cultural variation affects the degree of discretion accorded to executives. The study tests the proposed relationships using fixed-effect regression analysis by measuring managerial discretion through survey responses of senior management consultants. It operationalizes intra-cultural variation by the standard deviation in societal members’ behaviour in terms of individualism, uncertainty tolerance and power distance. Results show that a strong relationship exists between intra-cultural variation and managerial discretion and that the direction of the relationship is negative. Executives operating in countries with high heterogeneity are subject to increased constraints from the national environment and, as such, are not able to take idiosyncratic or bold actions. Managerial discretion not only is a function of the central tendency of a society but depends on the homogeneity/heterogeneity in views innate therein. Using institutional, stakeholder and upper echelons theories, the study shows that greater intra-cultural variation negatively affects the degree of executive discretion. Thus, it provides a more nuanced understanding of such relationship and introduces a new national conceptualization that plays an important role in the strategic decision-making of business executives.

Dichotomous impacts on social and environmental sustainability: competitiveness and development levels matter

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Eleanor Doyle ◽  
Mauricio Perez Alaniz
Keyword(s):  
Sustainable Development ◽  
Developing Countries ◽  
Environmental Sustainability ◽  
Building Blocks ◽  
Developed Countries ◽  
Dynamic Panel Data ◽  
Data Set ◽  
Content Type ◽  
Global Competitiveness ◽  
Development Levels

Purpose Whereas in developed countries, sustainability primarily focuses on environmental topics, in developing countries the issues of poverty, development and equity are equally, if not more, important. The purpose of this paper is to apply measures of social and environmental sustainability to assess sustainable development for the period 2005–2015 across a sample of 94 countries for which relevant data are available. Countries include two groups: developed and developing countries. Design/methodology/approach Using the index-based approach introduced by the World Economic Forum in its Global Competitiveness Project, a range of indicators are collected for estimating trends in both social and environmental sustainability. For the panel of data identified, a dynamic panel data estimator method is applied to the data set constructed. This paper presents the empirical results identifying key competitiveness factors related to social and environmental sustainability (separately and combining both aspects in a comprehensive sustainability framework). Findings This study explores how sustainable competitiveness offers a comprehensive assessment of the inter-related dynamics of the social, the environmental and economic building blocks of sustainable development simultaneously. Performance impacts are found to differ substantially across two groups of countries depending on their development level. This highlights the challenges in shaping and achieving sustainable development goals. Originality/value To the best of the authors’ knowledge, this research is novel in examining the intersections between economic competitiveness and environmental and social sustainability addressing an identified research gap. In addition, the paper investigates the most important competitiveness pillars focusing on both strengths and weaknesses in sustainable competitiveness across developed and developing countries.

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