Entrepreneurship and economic growth: does gender matter?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sarah R. Crane
Keyword(s):  
Economic Growth ◽  
Developed Countries ◽  
Ordinary Least Squares ◽  
Cultural Barriers ◽  
Entrepreneurial Firms ◽  
Least Squares Regression ◽  
Content Type ◽  
World Survey ◽  
Country Analysis

PurposeEntrepreneurial firms contribute to economic growth, but the potential gendered nature of this contribution must be investigated as outcomes of male-owned and female-owned firms differ. The study investigates the female underperformance hypothesis in a cross-country analysis of Schumpeterian entrepreneurs. Next, it investigates if there is a gendered dimension of Schumpeterian firm contribution to economic growth.Design/methodology/approachThe study utilizes both nonparametric and parametric methodologies. Through nonparametric methods, the success of female-owned and male-owned firms is compared. Next, a parametric ordinary least squares regression model tests if there is a gendered nature of an entrepreneurial firm's economic contribution.FindingsIn nonparametric analyses, female-owned entrepreneurial firms in developed countries perform similarly to male-owned firms, while in developing countries male-owned firms significantly outperform female-owned firms. The author also finds strong evidence that the gender of the Schumpeterian entrepreneur does not matter in the contribution in economic growth.Research limitations/implicationsIn all countries, the number of female-owned entrepreneurial firms was significantly lower than that of male-owned firms. The findings point to consistent cultural barriers for women in innovation-related fields and persistent gendered norms in entrepreneurship. Thus, removal of cultural barriers and continued support for Schumpeterian entrepreneurship will benefit women and contribute to a country's economic growth.Originality/valueThe data for this study is a unique utilization of the Enterprise World Survey to identify Schumpeterian entrepreneurial firms. Additionally, the study challenges the female underperformance hypothesis and contributes to the literature on the role of entrepreneurship in economic growth.

Exploring consumers' response to text-based chatbots in e-commerce: the moderating role of task complexity and chatbot disclosure

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xusen Cheng ◽  
Ying Bao ◽  
Alex Zarifis ◽  
Wankun Gong ◽  
Jian Mou
Keyword(s):  
Task Complexity ◽  
Deep Understanding ◽  
Ordinary Least Squares ◽  
Survey Method ◽  
Least Squares Regression ◽  
Moderating Effects ◽  
Content Type ◽  
Identity Disclosure ◽  
The Relationship

PurposeArtificial intelligence (AI)-based chatbots have brought unprecedented business potential. This study aims to explore consumers' trust and response to a text-based chatbot in e-commerce, involving the moderating effects of task complexity and chatbot identity disclosure.Design/methodology/approachA survey method with 299 useable responses was conducted in this research. This study adopted the ordinary least squares regression to test the hypotheses.FindingsFirst, the consumers' perception of both the empathy and friendliness of the chatbot positively impacts their trust in it. Second, task complexity negatively moderates the relationship between friendliness and consumers' trust. Third, disclosure of the text-based chatbot negatively moderates the relationship between empathy and consumers' trust, while it positively moderates the relationship between friendliness and consumers' trust. Fourth, consumers' trust in the chatbot increases their reliance on the chatbot and decreases their resistance to the chatbot in future interactions.Research limitations/implicationsAdopting the stimulus–organism–response (SOR) framework, this study provides important insights on consumers' perception and response to the text-based chatbot. The findings of this research also make suggestions that can increase consumers' positive responses to text-based chatbots.Originality/valueExtant studies have investigated the effects of automated bots' attributes on consumers' perceptions. However, the boundary conditions of these effects are largely ignored. This research is one of the first attempts to provide a deep understanding of consumers' responses to a chatbot.

Reconciling temporal conflicts in innovation ambidexterity: the role of TMT temporal leadership

2020 ◽  
Vol 24 (8) ◽  
pp. 1899-1920
Author(s):  
Jiawen Chen ◽  
Linlin Liu
Keyword(s):  
Regression Models ◽  
Ordinary Least Squares ◽  
Least Squares Regression ◽  
Exploration And Exploitation ◽  
Temporal Perspective ◽  
Content Type ◽  
Temporal Aspects ◽  
Positive Effect ◽  
Practical Implications

Purpose This study aims to extend the temporal perspective on ambidexterity by investigating how and under what conditions top management team (TMT) temporal leadership improves innovation ambidexterity. Design/methodology/approach Using a questionnaire survey, data were collected from 165 small- and medium-sized enterprises in China. Ordinary least squares regression models were applied to test the hypotheses. Findings The findings show that TMT temporal leadership has a positive effect on innovation ambidexterity and temporal conflict mediates this relationship. Market dynamism and institutional support moderate the indirect effect of TMT temporal leadership on innovation ambidexterity. Practical implications Managers wishing to promote exploration and exploitation simultaneously should pay attention to the temporal aspects of their innovation strategy and improve their temporal leadership activities. Originality/value This study highlights the temporal conflicts in ambidexterity and clarifies the enabling role of TMT temporal leadership. It contributes new insights to the research on organizational ambidexterity and strategic leadership.

Sustainable frugality through EIA: role of socio‐ecological linkages in poverty alleviation

2007 ◽  
Vol 18 (5) ◽  
pp. 556-567 ◽  
Author(s):  
T. Rajaram ◽  
Ashutosh Das
Keyword(s):  
Economic Growth ◽  
Poverty Alleviation ◽  
Local Ecological Knowledge ◽  
Developed Countries ◽  
Ecological Knowledge ◽  
Content Type ◽  
Marginalized Communities ◽  
The Cost ◽  
Ecosystem Linkages

PurposeThe purpose of this paper is to bring out the shortcomings of the EIA model imported from developed countries when it is assessed for its focus on poverty alleviation in a developing nation (India) and to suggest improvements in the existing framework.Design/methodology/approachThe paper explores the current performance of EIA process in India, critically analyses the philosophy of continued sidelining of environmental protection in favour of unrestricted economic growth in the light of evidence regarding growing inequality.FindingsThe paper finds that for the proponent driven EIA model to contribute towards poverty alleviation, a new “socio‐ecological linkage document” is needed. This will bring out the fragile linkages that marginalized communities have with their local ecosystems and can be prepared with the help of local ecological knowledge. A framework to integrate the socio‐ecological linkage document into the EIA‐SEA‐SA domain is presented.Practical implicationsThe paper shows that the supportive framework of generating the “socio‐ecological linkage document” has the potential to enhance the EIA‐SEA‐SA process in terms of ensuring that plans, policies, programs and projects are sensitive to the need of ecosystem dependent poor.Originality/valueThe paper proposes a framework to support the alternative thinking that poverty alleviation can be enhanced through preservation of ecosystem linkages, in contrast to the modern paradigm of economic growth at the cost of ecosystem.

scholarly journals Beyond Subsidies: A Study of Sustainable Public Subordinated Debt in Spain

2019 ◽  
Vol 11 (4) ◽  
pp. 1049
Author(s):  
Elisabeth Bustos-Contell ◽  
Gregorio Labatut-Serer ◽  
Samuel Ribeiro-Navarrete ◽  
Salvador Climent-Serrano
Keyword(s):  
Developed Countries ◽  
Cash Flows ◽  
Ordinary Least Squares ◽  
Least Squares Regression ◽  
Economic Stability ◽  
Subordinated Debt ◽  
Public Authorities ◽  
Financial Measures ◽  
National Economic

Evidence from business shows that small- and medium-sized enterprises (SMEs) are fragile. They suffer from a high mortality rate that primarily owes to difficulties in securing financing as a result of major information asymmetries. Despite these difficulties, SMEs provide the economic backbone of all economically developed countries. Aware of the key role of SMEs in national economic stability and of the financial problems that SMEs face, governments have designed a range of financial and tax measures to protect them. These financial measures include a highly specific form of public financing called subordinated debt. This concept refers to debt with the lowest credit seniority, just before equity. Subordination makes sense when companies go into liquidation because subordinated debt creditors are the last creditors to receive repayment, making recovery of this debt virtually impossible. Therefore, the risk borne by lenders of subordinated debt is similar to that of shareholders of the borrowing firm. This paper presents an ordinary least squares regression model to estimate the cash flows of SMEs financed by public subordinated debt. This provides public authorities with a tool to estimate the ability of SMEs to repay their debt and to thereby ensure that public subordinated debt financing is sustainable.

Does hedging enhance firm value in good and bad times

2018 ◽  
Vol 26 (1) ◽  
pp. 132-152 ◽  
Author(s):  
Nafis Alam ◽  
Amit Gupta
Keyword(s):  
Firm Value ◽  
Negative Impact ◽  
Developed Countries ◽  
Ordinary Least Squares ◽  
Annual Reports ◽  
Least Squares Regression ◽  
Hedging Strategy ◽  
Content Type ◽  
Dummy Variable ◽  
High Volatility

Purpose The purpose of this paper is to examine if the hedging strategy of the firm adds value to the firm, and if so, is the source of the benefit consistent with the hedging theory? Design/methodology/approach The paper used data from 129 top non-financial Indian companies spanning a period of 2008-2015 and analyzed using the ordinary least squares regression technique. Findings The study finds that firms engaged in hedging compared to non-hedgers have less volatility in the firm’s value. The use of hedging during the financial crisis is found to be value enhancing for the hedgers. The results also found that some firms do not disclose the notional value of derivatives clearly, which highlights the need of clear regulation for derivative declaration in the annual reports. Research limitations/implications Research implications of this study are to gain an insight into the hedging effectiveness in the highly volatile Indian market as compared to developed countries. High volatility in the exchange rate of Indian rupee further makes it one of the most relevant markets to study the effect of hedging on the firm’s value. Practical implications Mostly hedging is done purely for risk management, and if managers try to time the market by selective hedging, it can bring a negative impact for the firm. Findings show that managers should manage their hedging strategy based on changing the economic environment and not purely on the firms’ financial value. Originality/value To the authors’ best knowledge, this is the first study to extract the dollar value of derivative usage of sample firms and analyze its effectiveness in enhancing firm value in the presence of other financial parameters. This will be an advancement of previous studies, which used hedging as a dummy variable only. Most studies on this topic are carried out in developed countries; there is a limited research on developing markets such as India, and past studies have been more generic one like determinants of hedging and overall derivative scenario.

scholarly journals Environmental-specific servant leadership as a strategic tool to accomplish environmental performance: a case of China

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ahmad Siddiquei ◽  
Fahad Asmi ◽  
Muhammad Ali Asadullah ◽  
Farhan Mir
Keyword(s):  
Servant Leadership ◽  
Environmental Performance ◽  
Environmental Behavior ◽  
Ordinary Least Squares ◽  
Least Squares Regression ◽  
Content Type ◽  
Self Identity ◽  
Individual Level ◽  
Green Performance

PurposeThe Chinese firms are keenly focused on reducing their environmental footprints as part of the competitive strategy. Within the context of sustainable organizations in China, we test a multilevel framework that examined the impact of environmental-specific servant leadership on the green individual (pro-environmental behavior) and team (project green performance) outcomes within projects. Using social identity theory, we theorize and test the mediating role of green self-identity (individual level) and team green identification (team level) in the relationships between environmental-specific servant leadership, pro-environmental behavior and project green performance.Design/methodology/approachWe used survey questionnaires to collect multi-level and multi-wave data from 42 ongoing project-based sustainable organisations in China. The multilevel team to individual-level hypothesis were analyzed using multilevel-modeling via Mplus, while team level hypotheses were tested using ordinary least squares regression.FindingsThe multilevel regression analysis showed that environmental-specific servant leadership has a trickle-down effect of green self-identity, which subsequently predicts pro-environmental behavior. The ordinary least squares regression results demonstrated that environmental-specific servant leadership predicts project green performance via team green identification. Also, environmental-specific servant leadership has a positive and direct impact on pro-environmental behavior and project green performance.Research limitations/implicationsWe offer community and service dimension of leadership as a determinant of environmental performance at multiple levels. We provide managerial and policy implications to Chinese organizations striving to reposition themselves as eco-friendly organizations both nationally and globally.Originality/valueThe study is among the first to understand the role of environmental-specific servant leadership in predicting individual-level and team-level environment-related mediator and outcomes simultaneously.

Business founders and performance of family firms: evidence from developing countries in Asia

2020 ◽  
Vol 15 (2) ◽  
pp. 217-239
Author(s):  
Yee Peng Chow
Keyword(s):  
Developing Countries ◽  
Family Firms ◽  
Global Financial Crisis ◽  
Developed Countries ◽  
Ordinary Least Squares ◽  
Superior Performance ◽  
Least Squares Regression ◽  
Content Type ◽  
And Performance ◽  
The Global Financial Crisis

Purpose The purpose of this study is to examine how business founders influence the performance of family firms in developing countries in Asia. Design/methodology/approach The pooled ordinary least squares regression is used on a sample of 134 public listed family firms from four developing countries in Asia during the period 2004–2014. This study also conducts sub-period analyses where the study period is divided into three sub-periods, i.e. before, during and after the global financial crisis (GFC). Findings This study finds that founder-led family firms outperform family firms led by nonfounders for the full study period. The results for the sub-period analyses also show that founder-led family firms outperform nonfounder-led family firms for the pre-crisis and during crisis periods. Finally, this study finds no evidence supporting the superior performance of founder-led family firms post-GFC. Originality/value Because family firm is one of the most fundamental forms of business organization in the world, policymakers have great concerns about how business founders influence the performance of these firms. Nonetheless, the existing research on family firms is chiefly concentrated on developed countries but there is a paucity of studies being conducted in the context of developing countries. Moreover, previous research has only considered the performance of these firms during normal or turbulent times but no prior studies have compared the firm performance during normal, turbulent and recovery periods. It is the aim of this paper to address these research gaps by using a new and more recent set of data.

The impact of corporate governance performance on the association between information asymmetry and opportunities' optimal levels: evidence from developed markets

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ehsan Poursoleyman ◽  
Samira Joudi ◽  
Gholamreza Mansourfar ◽  
Saeid Homayoun
Keyword(s):  
Corporate Governance ◽  
Information Asymmetry ◽  
Developed Countries ◽  
Ordinary Least Squares ◽  
Investment Efficiency ◽  
Method Of Moment ◽  
Content Type ◽  
Bid Ask Spread ◽  
The Impact

PurposePrevious literature posits that corporate governance and information asymmetry are the main factors in making efficient investments. Meanwhile, a growing body of studies is of the opinion that corporate governance can also mitigate the problem of information asymmetry and consequently exerts significant impacts on the association between information asymmetry and investment efficiency. This study aims to analyze the impact of corporate governance and information asymmetry on investment efficiency. It also tests the moderating role of corporate governance in the relationship between information asymmetry and investment efficiency.Design/methodology/approachThe sample consists of 4,082 firms domiciled in 20 developed countries over the years from 2003 to 2019, including 33,812 firm-year observations. The bid–ask spread is used as a proxy for information asymmetry. To measure corporate governance performance, a proxy provided by ASSET4 is employed, and to determine the optimal levels of investments, we relied on the growth opportunity. To estimate the models, ordinary least squares and generalized method of moment are used.FindingsThe results reveal that information asymmetry is inversely related to investment efficiency, and, corporate governance mitigates this negative association.Originality/valueThis paper sheds light on the role of corporate governance in firms as a lever for mitigating information asymmetry and tries out information asymmetry and agency theories in relation to the impact of information asymmetry on investment efficiency. It also confirms the theory stating that corporate governance can be considered as a determinant of investment efficiency.

Strong alien or weak acquaintance? The effect of perceived institutional distance and cross-national uncertainty on ownership level in foreign acquisitions

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Fatemeh Askarzadeh ◽  
Hamed Yousefi ◽  
Mahdi Forghani Bajestani
Keyword(s):  
Multinational Enterprises ◽  
Mode Selection ◽  
Ordinary Least Squares ◽  
Institutional Distance ◽  
Least Squares Regression ◽  
Content Type ◽  
Foreign Acquisitions ◽  
Foreign Acquisition ◽  
Negative Effect

Purpose Focusing on the direction of foreign acquisition, this study aims to differentiate the effect of institutional distance on the level of ownership. The authors identify several theoretical and methodological issues that might account for the inconsistencies in the literature and provide remedies accordingly. Specifically, the authors propose perceived institutional distance as a conceptualization of distance that controls for asymmetric uncertainty. Design/methodology/approach The authors test the framework with ordinary least squares regression for a sample of 14,192 firm-entries in 115 target countries over 2007–2017. Findings The authors find that institutional distance shows a negative effect on equity ownership in all-inclusive global samples, while there are two imbalanced opposite effects if direction is considered. This casts doubt on the validity of studies that ignore direction. The authors suggest that multinational enterprises entering countries with lower-quality institutions tend to perceive more pronounced distance effects than those expanding the other way around. Hence, the authors argue that “perceived institutional distance” better explains the functional role of distance than simple distance. Practical implications This study better delineates the link between distance and uncertainty and enhances managerial insights for entry mode selection. For policy-making purposes, the authors also show that improvement in institutional quality has a different effect on foreign resource commitment in developed and developing countries. Originality/value To the best of authors’ knowledge, this is the first study that considers both directionality and imbalance in institutional distance and proposes a measure to control for non-linear asymmetric relationship between distance and ownership. The authors extend the institutional theory and show the superiority of perceived institutional distance in predicting ownership implications.

The role of financial development in economic growth: empirical evidence from Indian states

2015 ◽  
Vol 10 (4) ◽  
pp. 765-780 ◽  
Author(s):  
Madhu Sehrawat ◽  
A K Giri
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Ordinary Least Squares ◽  
Annual Data ◽  
Indian States ◽  
Content Type ◽  
Long Run ◽  
Panel Granger Causality ◽  
Integration Test

Purpose – The purpose of this paper is to examine the relationship between financial development and economic growth in Indian states using annual data from 1993 to 2012. Design/methodology/approach – The stationarity properties are checked by Levin-Lin-Chu and Im-Pesaran-Shin panel unit root tests. The study employed the Pedroni’s panel co-integration test to examine the existence of long-run relationship and the coefficients of co-integration are examined by fully modified ordinary least squares. The short term and long-run causality is checked by panel granger causality. Findings – The co-integration test confirms a long-run relationship between financial development and economic growth for Indian states. The results support the supply leading hypothesis and highlight the importance of financial development in economic growth in Indian states. The findings also indicate that bank-centric financial sector of India has the potential of economic growth through credit transmission. Research limitations/implications – The present study recommends for appropriate reforms in financial market to attain economic growth in India. The findings will be useful for India’s policymakers in order to maintain the parallel expansion of financial development and economic growth. Originality/value – Till date, there is no study that includes all 28 states in analyzing the role of financial development in economic growth for Indian economy by applying latest econometric techniques. Further, the study uses gross domestic state product instead of net domestic state product as proxy for economic growth because of the presence of different depreciation rates.

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