Industry 4.0 and clusters: complementaries or substitutes in firm’s knowledge creation?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nils Grashof ◽  
Alexander Kopka ◽  
Colin Wessendorf ◽  
Dirk Fornahl
Keyword(s):  
Industry 4.0 ◽  
Substitution Effect ◽  
Interaction Effects ◽  
Ordinary Least Squares ◽  
Knowledge Generation ◽  
Firm Level ◽  
Cluster Theory ◽  
Content Type ◽  
Industrial Iot ◽  
Key Enabling Technologies

Purpose This paper aims to show the interaction effects between clusters and cluster-specific attributes and the industrial internet of things (IoT) knowledge of a firm on the innovativeness of firms. Cluster theory and the concept of key enabling technologies are linked to test their effect on a firm’s incremental and radical knowledge generation. Design/methodology/approach Quantitative approach at the firm-level. By combining several data sources (e.g. ORBIS, PATSTAT and German subsidy catalogue) the paper relies on a unique database encompassing 8,347 firms in Germany. Ordinary least squares (OLS)-regression techniques are used for data analysis. Findings Industrial IoT is an important driver of radical patents, mediated positively by firm size. For incremental knowledge, a substitution effect occurs between a cluster and IoT effects, which is bigger for larger firms and dependent on cluster attributes and firms’ outside connections. Research limitations/implications The paper opens up new research paths considering long-term disruptive effects of the industrial IoT compared to short-term effects on the innovativeness of firms within clusters. Additionally, it enables further research enriching the discussion about cluster attributes and how these affect ongoing processes. Practical implications Linking cluster theory and policy with Industry 4.0 raises awareness for being considerate in terms of funding and scrutinising one-size-fits-all approaches. Originality/value Connecting the concepts of a cluster and advanced manufacturing technologies as a proxy for industrial IoT, specifically focussing on both radical and incremental innovations is a new approach. Especially, taking into account the interaction effects between cluster attributes and the influence of industrial IoT on the innovativeness of firms.

Political embeddedness and multi-layered interaction effects on the performance of private enterprises: lessons from China

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Eli Gimmon ◽  
Ying Teng ◽  
Xiaobin He
Keyword(s):  
Transition Economy ◽  
Economic Transition ◽  
Secondary Data ◽  
Interaction Effects ◽  
Positive Influence ◽  
Business Owners ◽  
Private Enterprises ◽  
Firm Level ◽  
Content Type ◽  
Personal Level

Purpose This study aims to present multi-layered embeddedness and explore the main and interaction effects of political embeddedness on the performance of private enterprises in China. This study tests multi-layered embeddedness through interaction effects between three layers, namely, political, territorial and inter-firm embeddedness. Political embeddedness is related at the personal and the firm levels. Design/methodology/approach The authors used secondary data of four non-panel waves (2002, 2008, 2010 and 2016) of large samples having identical questions based on the Chinese private enterprises’ survey. The accumulated number of business owners’ responses is a total of 10,686. Findings The main effects of each of the layers of embeddedness showed a positive influence on enterprise performance consistently and unchanged over time which fits the Chinese Guanxi regardless of the immense macro-economic transition. However, unexpectedly some interactions showed negative significant effects on performance. Practical implications First, business owners should be aware of the specific contribution to the performance of political embeddedness at both the firm level and the personal level. Second, the pursuit of exercising simultaneously several layers of embeddedness may be detrimental to company performance. This study provides generalizable lessons regarding different embeddedness layers beyond the context of China’s transition economy. Originality/value First, the authors extend political embeddedness to the firm level whilst in previous research this construct had been mostly related to the personal level. Second, building on the resource-based view and redundant resources the authors present the disadvantage of “over-embeddedness” as related to multi-layered embeddedness which has been understudied.

Bank competition, government intervention and SME debt financing

2017 ◽  
Vol 7 (4) ◽  
pp. 478-492 ◽  
Author(s):  
Jianhua Du ◽  
Chao Bian ◽  
Christopher Gan
Keyword(s):  
Government Intervention ◽  
Generalized Method Of Moments ◽  
External Debt ◽  
Ordinary Least Squares ◽  
Debt Financing ◽  
Bank Loans ◽  
Bank Competition ◽  
Firm Level ◽  
Content Type ◽  
The Government

Purpose The purpose of this paper is to examine the effects of the government intervention and bank competition on small and medium enterprise (SME) external debt financing in Chinese capital market. Design/methodology/approach This study uses ordinary least squares with standard errors clustered at the firm level. In addition, the authors use the dynamic system generalized method of moments to address the possible endogeneity issue in the regressions. Findings Using a sample of 908 firms from 2000 to 2010, the authors found that SMEs are more likely to access bank loans only in regions with higher level of government intervention than median government intervention. Further, the result shows that the government is motivated to help SMEs to obtain more external debt in regions where the level of bank competition is lower than the median bank competition index. Last, the authors found evidence that firms with politically connected CEOs are likely to access bank loans. Research limitations/implications This paper highlights that government intervention enables the SMEs to secure more bank loans. Second, the authors’ results imply that the government is motivated to help SMEs to obtain more external debt in regions with low level of bank competition. Originality/value This study contributes to the current literature by revealing that government intervention is the driving force alleviating SMEs’ constraints in accessing external financing. Second, this study finds the evidence to supports the argument that government has a strong motive to help SMEs to secure long-term credits for political purpose (Fan et al., 2012), when the level of bank competition is low (Berger and Udell, 2006).

Determinants of SME growth

2016 ◽  
Vol 39 (9) ◽  
pp. 966-986 ◽  
Author(s):  
Habib Kachlami ◽  
Darush Yazdanfar
Keyword(s):  
Random Effects ◽  
Financial Institutions ◽  
Significant Influence ◽  
Fixed Effects ◽  
Explanatory Power ◽  
Ordinary Least Squares ◽  
Firm Level ◽  
Data Set ◽  
Content Type

Purpose The purpose of this paper is to study the firm-level financial variables affecting the growth of small and medium-sized enterprises (SMEs). Design/methodology/approach The study applies a resource-based view to analyze the firm-level as well as industry-level determinants of SME growth. Empirical evidence has also been provided from a data set of SMEs in Sweden to support the hypotheses. For a robust statistical analysis, three models – ordinary least squares (OLS) regression, random-effects regression and fixed-effects regression – are used to examine the influence of explanatory variables on growth. Findings The findings of this study show a positive and significant influence of profitability, short-term debt and size on a firm’s growth across all three models. Results regarding the influence of long-term debt on growth, however, are mixed. While the results of a fixed-effect model show the negative and significant influence of long-term debt on growth, the results according to OLS and random effects show long-term debt positively related to growth. Research limitations/implications This study has been conducted over a period of four years and in the context of Sweden which may limit the generalizability of its results for longer periods and for different contexts. Moreover, the low explanatory power of the models implies the need to also consider other types of variables, such as managerial or socio-economic variables, to better explain the determinants of SME growth. Practical implications Understanding the determinants of growth can be important for policy makers, SME managers and financial institutions. The findings of this study can be used for designing policies which stimulate SME growth. Realizing the financial resources that influence growth can also help SME managers and financial institutions to understand each other’s need for better cooperation. Originality/value This paper applies different models for analyzing large and cross-sectoral data regarding SME growth in the context of Sweden.

Human resource executives and post-IPO firm growth

2018 ◽  
Vol 31 (7) ◽  
pp. 1401-1418
Author(s):  
Carrie A. Belsito ◽  
Christopher R. Reutzel ◽  
Jamie D. Collins
Keyword(s):  
Human Resource ◽  
Initial Public Offerings ◽  
Firm Growth ◽  
Ordinary Least Squares ◽  
Top Management ◽  
Least Squares Regression ◽  
Firm Level ◽  
Content Type ◽  
Public Firms ◽  
Test Study

Purpose The purpose of this paper is to examine the relationship between human resource (HR) executive representation in top management and the growth of newly public firms. It draws upon research on strategic leadership, strategic HR management and Penrose’s theory of firm growth to consider the role of HRs executives in addressing demands placed upon top managers in the pursuit of firm growth. This study attempts to extend the focus of research on the influence of HR executives on organizational outcomes Design/methodology/approach In order to test study hypotheses, this study analyses data from a sample of US newly public firms that underwent initial public offerings (IPO) during the 2007 calendar year. Study data were analyzed using ordinary least squares regression in order to test study hypotheses. Findings This study provides general support for study hypotheses. First, HR executive presence in top management was found to be positively related to post-IPO firm growth. Second, upper echelon size and the number of firm employees were found to weaken the positive effect of HR executive presence in top management on post-IPO firm growth. Research limitations/implications As a consequence of study design, the results found in this study may be limited with respect to their external validity. Therefore, researchers and practitioners are encouraged to use caution before generalizing study findings to other contexts. Practical implications This study provides implications for top management team staffing and the pursuit of firm growth. Newly public firms appear to benefit in terms of firm growth by including HR executives in top management. The benefits of doing so appear to be reduced for newly public firms as the size of their upper echelons and number of employees increase. Originality/value This study extends research on the firm level consequences of HR executive presence in top management as well as research on factors which influence firm growth.

scholarly journals Emergence of a digital cluster in east London: birth of a new hybrid firm

2019 ◽  
Vol 29 (3) ◽  
pp. 253-266 ◽  
Author(s):  
Graeme Lorenzo Evans
Keyword(s):  
Spatial Data ◽  
Technological Development ◽  
Spatial Data Analysis ◽  
Gis Mapping ◽  
Online Questionnaire ◽  
Location Quotient ◽  
Firm Level ◽  
Local Cluster ◽  
Cluster Theory ◽  
Content Type

PurposeThis paper aims to investigate the composition and geography of an emerging “creative digital” cluster in London, in the context of cluster theory and emerging creative cluster concepts. This argues that this cluster cannot be divorced from the wider regional creative and digital economy and that its inter-dependence with a small number of “content” industries is critical to its formation. The significance of the “creative digital” firm blending design, communications and technological development is highlighted, as is its unique position in enabling such firms to flourish.Design/methodology/approachThe research combines both quantitative with qualitative methods, based on cluster analysis of firm-level business data using GIS mapping software at a regional level; location quotient (LQ) analysis to reveal firm concentration at a local cluster level; an online questionnaire survey of firms within this cluster; participant observation of firm meet-ups over a three-year period; and face-to-face interviews with a sample of firms/owners.FindingsThe evidence generated from this research confirms the distinctive nature of this digital cluster and the benefits of co-location in an industrial district with proximities to a range of advanced producer services and cultural content provision. This has revealed an emerging “techno-creative habitus” (Scott 2010), which has been able to take advantage of market fluidity through a network of communities of interest firms, which have reshaped an existing global hub locally anchored by a highly porous locale.Originality/valueThe research is novel in combining spatial data analysis with qualitative research into firm behaviour and place-based factors that support the growth of this cluster. This has revealed new insights into the hybrid nature of tech firms that integrate content with both hardware and software applications and who innovate and grow through inter-personal cluster networks. This contributes to cluster theory and extends the range of proximities – social, institutional and cultural – that enhance the geographic advantages of clustering in this case.

Geographical diversification and corporate liquidity in Malaysia: a quantile regression approach

2020 ◽  
Vol 32 (2) ◽  
pp. 125-146
Author(s):  
Shaista Wasiuzzaman
Keyword(s):  
Quantile Regression ◽  
Cash Holdings ◽  
Developed Countries ◽  
Ordinary Least Squares ◽  
Working Capital ◽  
Firm Level ◽  
Ols Regression ◽  
Content Type ◽  
Corporate Liquidity ◽  
Geographical Diversification

Purpose This paper aims to examine the effect of geographical diversification on corporate liquidity in Malaysian firms. Liquidity is represented by both cash and working capital. Design/methodology/approach Data for this study is collected from a total of 735 firms over a period of five years, from 2010 to 2014, resulting in a total of 2,904 firm-year observations. The effect of geographical diversification on the cash and working capital of the firms is analyzed by using the ordinary least squares (OLS) with standard errors adjusted for firm level clustering and the quantile regression (QR) analyses. Control variables which represent the characteristics of the firms are also considered. Findings Analysis using the OLS regression technique indicates that geographical diversification has a highly significant positive influence on corporate cash holdings, while the influence of working capital is negative and its significance is only at the 10 per cent level. However, when QR is used to analyze the relationships, it is found that geographical diversification is only significant in positively influencing cash holdings for firms with low cash holdings, but the relationship is insignificant at high levels of cash holdings. Additionally, working capital is significantly influenced by geographical diversification at high levels of working capital but not at low levels. Originality/value To the author’s knowledge, this is the first study to analyze the influence of geographical diversification on liquidity by considering both cash and working capital. The effect of diversification on liquidity is mostly studied in developed countries, whereas this study is focused on a developing country. Additionally, this study uses QR to analyze relationships at different levels rather than at aggregate level as done in OLS regression analysis.

scholarly journals Which aspects of CSR predict firm market value?

2018 ◽  
Vol 2 (1) ◽  
pp. 50-69 ◽  
Author(s):  
Stevan Bajic ◽  
Burcin Yurtoglu
Keyword(s):  
Firm Value ◽  
Fixed Effects ◽  
Market Value ◽  
Ordinary Least Squares ◽  
Specific Aspect ◽  
Social Dimension ◽  
Omitted Variables ◽  
Firm Level ◽  
Content Type ◽  
The Social

Purpose There is evidence that corporate social responsibility (CSR) practices predict higher firm value, but little evidence on which specific aspects of CSR drive this relationship. The purpose of this paper is to study this question in a sample drawn from 35 countries over 2003-2016. Design/methodology/approach The authors employ a research design that analyzes observational data with panel data methods including ordinary least squares, firm-random effects, and firm-fixed effects. Findings The authors find in a sample drawn from 35 countries over 2003-2016 an economically significant relationship between an overall CSR measure and firm value. The overall CSR score builds on data from Asset4 and is comprised of three indices for environmental, social, and corporate governance aspects of CSR. The authors find that the social index consistently predicts higher market value. The authors also show that the use of particular elements of CSR can lead to substantial omitted variables bias when predicting firm value. The results also suggest a similar bias in studies that focus on a single index, which captures a specific aspect of CSR, but omits the remaining aspects. Research limitations/implications The study is subject to limitations common to observational studies. Practical implications The authors find robust evidence that CSR predicts market value using a country-benchmarked overall CSR index. The power to predict firm value comes solely from the social dimension of this measure, which captures firm-level practices related to treatment of employees and stakeholder relations including those with customers and the broader community. Three elements drive the social index: customer/product responsibility, human rights, and employment quality. None of the remaining 12 elements significantly predicts firm vale in an empirical setting with firm-FE and extensive covariates. The authors also show that omitted aspects of CSR can easily lead to an omitted variable bias and that the magnitude of this bias is potentially greater with an OLS specification. Social implications Among the many dimensions of CSR, only a subset drives firm value. Policies that target to improve the CSR performance of firms adopt a broader definition of CSR. Originality/value The authors provide first-hand evidence on which specific aspects of CSR drive firm market value.

scholarly journals CEO power and R&D investment

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Christine Naaman ◽  
Li Sun
Keyword(s):  
Chief Executive ◽  
Ordinary Least Squares ◽  
Financial Accounting ◽  
Least Squares Regression ◽  
Ceo Power ◽  
Firm Level ◽  
Content Type ◽  
Negative Relation ◽  
The Impact ◽  
D Investment

Purpose This study aims to examine whether and how the power of a chief executive officer (CEO) relates to firm-level research and development (R&D) investment. Design/methodology/approach The authors use clustered standard errors ordinary least squares regression using a large sample of US firms from 1994 to 2017. Findings The authors find a significant negative relation between CEO power and R&D investment, suggesting that firms with more powerful CEOs are less likely to invest in R&D activities. Besides, the study finds that this significant negative relation is largely driven by firms with weaker corporate governance. Originality/value This study contributes to the finance literature on the impact and consequences of having powerful CEOs and the financial accounting literature on the determinants of R&D expenditures.

scholarly journals How to keep teachers healthy and growing: the influence of job demands and resources

2017 ◽  
Vol 41 (8) ◽  
pp. 670-686 ◽  
Author(s):  
Arnoud T. Evers ◽  
Bogdan Yamkovenko ◽  
Daniël Van Amersfoort
Keyword(s):  
Vocational Education ◽  
Structural Equation ◽  
Explanatory Power ◽  
Job Demands ◽  
Interaction Effects ◽  
Ordinary Least Squares ◽  
Equation Modeling ◽  
Future Research ◽  
Content Type ◽  
Job Demands And Resources

Purpose Education depends on high-quality teachers who are committed to professional development and do not get burned out. The purpose of this paper was to investigate how job demands and resources can affect the health and cognitive development of teachers using the Demand-Induced Strain Compensation model. Design/methodology/approach A cross-sectional sample of 120 teachers in vocational education was used to investigate the proposed relationships and hypotheses with Ordinary Least Squares (OLS) regression method. Findings In terms of teacher health and development, significant main effects were found for several predictors. Autonomy was significantly and negatively related to emotional exhaustion. Autonomy, emotional supervisor and colleague support were significantly and positively related to teachers’ development. However, little support was found for matching hypotheses, suggesting that matching demands and resources do not offer more explanatory power for occupation outcomes than other types of interaction effects. Research limitations/implications More powerful analyses techniques like structural equation modeling could be used in future research with a larger sample size. A second limitation is common method variance. Practical implications Schools in vocational education should provide sufficient job resources, such as autonomy and emotional support, but possibly also put a limit on teacher task variety. Originality/value Job demands and resources have until now mainly been related to negative outcomes such as poor health and ill-being, while the relationship with learning has also been hypothesized and is therefore meaningful to examine. In addition, it was investigated whether interaction effects of matching demands and resources, better explain these outcomes.

A review of Industry 4.0 in supply chain management studies

2019 ◽  
Vol 31 (5) ◽  
pp. 863-886 ◽  
Author(s):  
Chetna Chauhan ◽  
Amol Singh
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Industry 4.0 ◽  
English Language ◽  
Future Research ◽  
Firm Level ◽  
Unit Of Analysis ◽  
Chain Management ◽  
Content Type ◽  
Focal Firm

Purpose The purpose of this paper is to assess how the emergent theme of Industry 4.0 is considered in the context of supply chain management (SCM) and to identify important areas for future research. Design/methodology/approach A systematic literature review of 334 studies is carried out. The papers have been analyzed by having a focus on the unit of analysis, research methods used, the key themes covered and how the debate has evolved over a period of time. Findings Findings of the study reveal that scholars have so far focused on principles and practices for digitized SCM, identified enablers and barriers, and considered the Industry 4.0 at various levels, particularly at the firm level. Majority of studies focus on manufacturing from the perspective of the focal firm. Research limitations/implications Limitation of this study is its unit of analysis where only peer-reviewed journal and conference articles published in the English language have been considered. Practical implications This review identifies the important themes and areas for practitioners to consider vis-à-vis the implementation of Industry 4.0 standards in supply chains. The review provides insights into under-researched areas and highlights the need for future researchers to develop more practical models for guiding the implementation of Industry 4.0. Originality/value This paper is one among the few studies that assess the Industry 4.0 implementation in the context of SCM and provides insights and implications for further research.

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