scholarly journals The impact of national social capital on business creation rates in the formal vs informal sectors

2020 ◽  
Vol 26 (8) ◽  
pp. 1739-1768
Author(s):  
Mai Thi Thanh Thai ◽  
Ekaterina Turkina ◽  
Amon Simba

PurposeThrough utilizing social capital as an overarching concept, the purpose of this article is to investigate cross-country rates of business formation in the formal vs informal sectors. Plus, empirically assess the impact of social capital constructs on the national rates of entrepreneurship.Design/methodology/approachAdopting a regression-oriented methodology, partial least squares (PLS), the study used a sample comprising 50 nations. National rates of registered and nonregistered business creation were utilized as endogenous variables. To determine the indigenous variables, constructs of social capital were measured which is consistent with the World Value Survey (WWS).FindingsThe results of this study show that in the formal and the informal sectors, social networking enables business creation with varying levels of impact. It establishes that institutional trust has a negative effect on informal business creation and a positive effect on business registration; interpersonal trust drives entrepreneurship in the informal sector but has less impact on business registration; norms of trustworthiness are related to business registration than informal business creation.Practical implicationsThe findings of this research have theoretical and practical implications. They stimulate academic debate on the application of social capital constructs at the national level. The indications that social capital promotes business formation in both the informal and formal sectors can influence entrepreneurship policy development in many countries.Originality/valueThe originality of the results of this study lies in how it conceptualizes social capital as having direct impact on business creation in the informal vs formal sector. Thus, the findings elevated the conceptualization of social capital to the national level thereby enhancing knowledge on the entrepreneurship process as well as developmental economics.

2014 ◽  
Vol 21 (4) ◽  
pp. 453-475 ◽  
Author(s):  
Sepehr Ghazinoory ◽  
Ali Bitaab ◽  
Ardeshir Lohrasbi

Purpose – In the last two decades, researchers have paid much attention to the role of cultural values on economic and social development. In particular, the crucial role of different aspects of culture on the development of innovation has been stressed in the literature. Consequently, it is vital to understand how social capital, as a core cultural value, affects the innovation process and the innovative performance at the national level. However, to date, the impact of different dimensions of social capital and innovation has not been properly portrayed or explained. Thus, the purpose of this paper is to investigate the influence of four different dimensions of social capital (institutional and interpersonal, associational life and norms) on two of the main functions of national innovation system (NIS) (entrepreneurship and knowledge creation) based on over 50,000 observations in 34 countries. Design/methodology/approach – In this regard, national-level data from the World Values Survey database was employed to quantify social capital. Entrepreneurship is, in turn, assumed to consist of three sub-indexes and 14 indicators based on the Global Entrepreneurship Index. Knowledge creation is also measured through US Patent Office applications. Also, exploratory factor analysis and structural equation modeling approach were used to build the measurement model and investigate the impact that each factor of social capital had on entrepreneurship and knowledge application, respectively. Measurement and structural models were built and their reliability and validity were tested using various fit indices. Research findings suggest the strong positive effect of institutional trust and networking on entrepreneurship. Also, interpersonal trust and networks were shown to have high influence on knowledge development at the national level. Norms appear to have naïve to medium negative effects on both functions. Findings – Research findings suggest the strong positive effect of institutional trust and networking on entrepreneurship. Also, interpersonal trust and networks were shown to have high influence on knowledge development at the national level. Norms appear to have naïve to medium negative effects on both functions. Originality/value – However, to date, the impact of different dimensions of social capital and innovation has not been properly portrayed or explained.


Author(s):  
Jill Miller

Purpose The purpose of this paper is to position well-being as a necessary component of the productivity debate and highlights the need for a deeper understanding of the nature of such a link. It first considers productivity at the national level in order to show how this affects both the climate and the economic policies within which organisations operate. Design/methodology/approach The paper presents an overview of current research and practice in the area. It treats the organisation as the primary level of analysis, and before highlights some of the apparent challenges in conceptualising well-being. Findings The importance of well-being is rising up national and employer agendas. Organisations need people to perform at their best in a sustainable way. The paper argues that an organisation with well-being at its core will reap productivity gains. It supports the view in the literature that improvements at national level can only be made on the back of sophisticated strategies across numerous organisations. However, for this to happen shared actions and understanding of these challenges has first to be created and acted upon across institutions and organisations. There are notable costs of poor well-being to productivity, and identifiable benefits of promoting and supporting employee well-being for productivity. Practical implications There is a clear practice implementation gap. Some organisations are embracing the opportunities to invest in their staff, but those who make employee well-being a business priority and a fundamental part of how the organisation operates are in the minority. There is also an ongoing challenge of measuring the impact of well-being programmes which can inform ROI assessments and enable organisations to demonstrate the business benefits of employee well-being. Originality/value There remain many unanswered questions about both the nature of the link between well-being and productivity and the economic impact of an association. This paper sparks further interest in expanding the understanding of the well-being and productivity link or peripheral issues.


2019 ◽  
Vol 10 (4) ◽  
pp. 339-354 ◽  
Author(s):  
Scott Hipsher

Purpose The purpose of this study is to explore and compare the perceptions of workers in the tourism industry in Thailand in foreign-owned and locally owned firms to provide an underrepresented perspective in the debate over whether international trade and tourism primarily exploits workers or provides valuable opportunities. Design/methodology/approach A matched-pairs comparative analysis was used. Findings Workers at foreign-owned companies showed slightly, although statistically insignificant, more positive attitudes toward tourism as a means of creating opportunities for themselves. Workers in foreign-owned companies showed a statistically significant more positive attitude toward the impact of tourism on the country. It appears the vast majority of the workers interviewed did not feel exploited, but empowered by opportunities to engage in employment in the tourism industry. Research limitations/implications The use of self-reported measures has been acknowledged to be problematic and the size and composition of the sample limit the ability to generalize the findings to a broader population. Practical implications Understanding the perspectives of the workers in an industry can be useful in policy development and implementing corporate social responsibility programs. The results suggest workers would support programs which encourage increases in tourism and foreign investment in the industry. Social implications reflect the perceptions of an under-represented segment of society. Originality/value The intention is to help bring into the debate the perspectives of individuals who are most directly affected by these activities.


2017 ◽  
Vol 20 (3) ◽  
pp. 463-492 ◽  
Author(s):  
Valentina Lazzarotti ◽  
Lars Bengtsson ◽  
Raffaella Manzini ◽  
Luisa Pellegrini ◽  
Pierluigi Rippa

Purpose Focusing on some relevant constructs defined by the open innovation (OI) literature (i.e. determinants of openness; openness choices operationalized in terms of collaboration depth with scientific and business partners; organizational and social context; innovation performance in terms of novelty and efficiency), this paper investigates the relationships among such constructs. More specifically, the purpose of this paper is to empirically analyse two types of relationships: between some contextual factors and firms’ openness choices; and among openness choices, a set of organizational-managerial and social factors, and OI performance outcomes. Design/methodology/approach The authors carried out a theory testing survey, involving four European countries (Finland, Italy, Sweden and the UK). The authors applied descriptive statistics and a series of regressions. Findings The authors analysed the impact exerted by external and internal variables on the collaboration depth with scientific and business partners: technological trends are relevant to move firms towards external collaborations, with both types of partners; efficiency goals pursued in collaborations are related to the collaboration depth with both types of partners, while an aggressive innovation strategy is positively related only to scientific-partner depth. Besides, collaboration depths with both partners are positively related to the both sides of innovation performance (i.e. novelty and efficiency), but the organizational-managerial and social contexts emerge as relevant mediator variables. Organizational-managerial and external relational social capital exert a beneficial role on the both types of innovation performance, while internal relational social capital benefits only novelty. Research limitations/implications The work shows important limitations such as the low level of the explanatory values in the regression models. Therefore, the results must be considered as preliminary explorative insights that may be useful to encourage further studies. Practical implications This work serves to raise managers’ awareness on the opportunity of developing organizational-managerial mechanisms, as well as on the importance of social capital to profit from collaborations. Originality/value Although during the last decade many researchers have claimed that we are in the era of OI, empirical works, which provide both a more comprehensive and detailed understanding of the phenomenon, are still few. Moreover, the specific action of the context (managerial, organizational and social) as possible mediator of the performance outcomes of openness is empirically under-studied. The authors’ work attempts to fulfil these gaps.


2016 ◽  
Vol 58 (2) ◽  
pp. 209-228 ◽  
Author(s):  
Patricia P. Iglesias-Sánchez ◽  
Carmen Jambrino-Maldonado ◽  
Antonio Peñafiel Velasco ◽  
Husam Kokash

Purpose – The purpose of this paper is to investigate entrepreneurship in Malaga University based on the Theory of Planned Behaviour model. There are two objectives: to analyse the influence of the main elements of orientation to entrepreneurship and to evaluate the efficiency of education programmes in the university system. Design/methodology/approach – The authors have chosen Ajzen’s influential model (1991) for analysing entrepreneurial intention as the basis for the analysis of a sample of 392 students at Malaga University. Findings – The results suggest that the students’ predisposition to entrepreneurship is moderate because perceived risk and ideas about their own abilities hinder their decision to start up a business. Practical implications – This research has practical implications for universities involved in designing programmes aimed at business creation. Social implications – This research provides interesting insights which could help new companies to be created, thus alleviating the unemployment resulting from the economic crisis. Originality/value – With the help of this widely used theoretical model to study, the authors analyse the impact of Entrepreneurship Education Programmes in higher education. It is only a starting point from which to evaluate which elements should be reinforced in entrepreneurship programmes if they are to achieve effective results.


2016 ◽  
Vol 23 (1) ◽  
pp. 149-162 ◽  
Author(s):  
Jarna Heinonen ◽  
Ulla Hytti

Purpose – The purpose of this paper is to understand the roles and mission assigned to entrepreneurship and entrepreneurs in Finnish entrepreneurship policy, and how they are reflected in policy actions. Design/methodology/approach – A discourse analysis of policy missions and content was conducted based on selected policy documents related to the government entrepreneurship programmes run in 1999, 2003, 2007 and 2011. Findings – The analysis identifies a clear evolution in the policies over the years, but no radical changes; indicating that policies develop incrementally by adding to previous schemes. In addition, the analysis reveals the changes in focus, measures and key actors involved in the policies. In general, the documents emphasise the need to create more jobs of better quality, to stimulate economic growth and recently also to foster a more sustainable society. There is a limited role for entrepreneurship in introducing innovation and change to society. Research limitations/implications – Besides analysing entrepreneurship policy there is a need to develop a better understanding of policy entrepreneurship, that is, the promotion of significant policy change. In addition, research evidence needs to be better incorporated into the formulation of policies. Practical implications – Policymakers should be critical of policy development in order to create truly entrepreneurial policies. In order to promote entrepreneurship, more emphasis should be placed on developing incentives and measures supporting the identification and discovery of entrepreneurial opportunities, not merely on facilitating exploitation. Originality/value – The paper contributes to entrepreneurship policy discussions by offering fresh insights into where entrepreneurship literature, policies and actions, and social reality intersect. The paper’s main contribution is to clearly show what is being promoted by the entrepreneurship policies and how, and the pitfalls of the current approaches compared to the understanding of entrepreneurship as a phenomenon.


2019 ◽  
Vol 43 (3/4) ◽  
pp. 339-353 ◽  
Author(s):  
Siham Lekchiri ◽  
Cindy Crowder ◽  
Anna Schnerre ◽  
Barbara A.W. Eversole

Purpose The purpose of this paper is to explore the experiences of working women in a male-dominated country (Morocco) and unveil the unique challenges and everyday gender-bias they face, the psychological impact of the perceived gender-bias and, finally, identify a variety of coping strategies or combatting mechanisms affecting their motivation and retention in the workplace. Design/methodology/approach Empirical evidence was obtained using a qualitative research method. The Critical Incident Technique (CIT) was used to collect incidents recalled by women in the select institution reflecting their perceptions of their managers’ ineffective behaviors towards them and the impact of these behaviors. The critical incidents were inductively coded, and behavioral statements were derived from the coded data. Findings The qualitative data analysis led them to structure the data according to two theme clusters: The perceived gender-bias behaviors (Covert and evident personal and organizational behaviors) and Psychological impacts resulting from the perceived bias. These behavioral practices included abusive behaviors, unfair treatment, bias and lack of recognition. The psychological impact elements involved decreased productivity, depression, anxiety and low self-esteem. Practical implications Understanding these experiences can facilitate the identification of strategies geared towards the retention of women in the workforce, and Moroccan organizations can develop and implement strategies and policies that are geared towards eliminating gender-bias in the workplace and to retaining and motivating women who remain ambitious to work in male-dominated environments and cultures. Originality/value This paper provides evidence that sufficient organizational mechanisms to support women in male-dominated environments are still unavailable, leaving them to find the proper coping mechanisms to persevere and resist.


2015 ◽  
Vol 7 (2) ◽  
pp. 205-218
Author(s):  
Sunil Sahadev ◽  
Pongsak Hoontrakul

Purpose – This conceptual paper aims to discuss issues relevant to fostering cooperation between India and countries in the ASEAN region in the area of technological innovation. Design/methodology/approach – This is a conceptual paper, based on insights from the existing body of literature and secondary data. Findings – The study looks at the competitiveness of different countries in the ASEAN region and considers their technological competitiveness vis-à-vis India. Broad policy issues related to fostering technological innovation as well as the main advantages of such collaboration are discussed. Research limitations/implications – This is a conceptual paper mainly intended for discussion. Practical implications – The paper provides guidelines for fostering technological innovation and could, therefore, help policy development. Originality/value – Although the Indo-ASEAN free-trade agreement is helping trade flow between the countries in the region, the potential for technological collaborations still lies unutilised. This paper looks at the possibilities for such collaborations and is one of the few papers that consider this line of thinking.


2019 ◽  
Vol 9 (3) ◽  
pp. 319-328
Author(s):  
Ian Pepper ◽  
Ruth McGrath

Purpose The purpose of this paper is to evaluate the impact of an employability module, the College of Policing Certificate in Knowledge of Policing (CKP), on students’ career aspirations, their confidence and wish to join the police along with the appropriateness of the module. This will inform the implementation of employability as part of the College of Policing-managed Police Education Qualifications Framework (PEQF). Design/methodology/approach A three-year longitudinal research study used mixed methods across four points in time to evaluate the impact on students studying the employability module. Findings The research suggests that the employability-focussed CKP was useful as an introduction to policing, it developed interest in the police and enhanced the confidence of learners applying to join. Lessons learnt from the CKP should be considered during the implementation of the PEQF. Research limitations/implications The ability to generalise findings across different groups is limited as other influences may impact on a learner’s confidence and employability. However, the implications for the PEQF curriculum are worthy of consideration. Practical implications As the police service moves towards standardised higher educational provision and evolution of policing as a profession, lessons can be learnt from the CKP with regards to the future employability of graduates. Originality/value Enhancing the employability evidence base, focussing on policing, the research identified aspects which may impact on graduates completing a degree mapped to the PEQF. The research is therefore of value to higher education and the professional body for policing.


2019 ◽  
Vol 31 (1) ◽  
pp. 115-136 ◽  
Author(s):  
Magnus Soderlund ◽  
Hanna Berg

Purpose The purpose of this paper is to examine the impact of happiness expressed by service firm employees when they are depicted in marketing communications materials, such as printed ads and videos. Design/methodology/approach Two experiments were conducted in a fitness service setting, in which employee display of happiness was manipulated (low vs high). Findings Both experiments showed that expressions of high levels of happiness produced a more positive attitude toward the service employee than expressions of low levels of happiness. Moreover, the impact of the expression of happiness on the evaluation of the employee was mediated by several variables, which suggests that the influence of depicted employees’ emotional expressions can take several routes. Practical implications The results imply that service firms should not only be mindful about which specific employee they select for appearing in marketing communications materials, they should also pay attention to the emotional displays of selected employees. Originality/value The present study contributes to previous research by assessing a set of potential mediators to explain why displays of happiness influence consumers, and by examining these effects in a marketing communications setting in which the customer is exposed to still images or video-based representations of the employee. The present study also focuses explicitly on happiness rather than on smiles.


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