The differentiated impacts of external and internal financing on export: the firm-level evidence

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xiangyuan Meng ◽  
Xue Li ◽  
Wenyan Xiao ◽  
Jie Li
Keyword(s):  
International Trade ◽  
Design Methodology ◽  
International Market ◽  
Export Market ◽  
Fixed Cost ◽  
External Financing ◽  
Firm Level ◽  
Content Type ◽  
Internal Financing ◽  
Financial Need

PurposeThe authors provide firm-level evidence that external financing affects international trade in a way different from internal financing.Design/methodology/approachThe authors separate new entrants from incumbent exporters and investigate the roles of external and internal financing in export market participation and export quantity.FindingsThe authors find that external financing is of particular importance, as well as internal financing, in helping a firm become a new exporter. By contrast, external financing, unlike internal financing, is not significantly important for an incumbent exporter to stay in the international market. Regarding export quantity, a firm's internal financing is positively associated with more export quantity, whereas external financing is not.Originality/valueThe authors’ findings are consistent with the existence of significant fixed cost for entering the export market and external financing is particularly needed to cover such cost. Meanwhile, the financial need for maintaining the export status is much less and can be satisfied via internal financing.

Understanding decoupling in response to corporate governance reform pressures

2015 ◽  
Vol 23 (4) ◽  
pp. 369-382 ◽  
Author(s):  
Mario Krenn
Keyword(s):  
Corporate Governance ◽  
Design Methodology ◽  
Good Governance ◽  
Regulatory Change ◽  
Compliance Monitoring ◽  
Governance Reform ◽  
Firm Level ◽  
Content Type ◽  
Good Corporate Governance ◽  
Actual Use

Purpose – The purpose of this article is to explain under what circumstances firm-level adoption of codes of good corporate governance will more likely be superficial rather than substantive in nature. The article contains lessons for any agency or country that attempts to implement deep and lasting changes in corporate governance via codes of good corporate governance. Design/methodology/approach – The article reviews the literature on compliance with codes of good corporate governance and develops a conceptual model to explain why some firms that have formally adopted a code of good governance decouple this policy from its actual use. Findings – Decoupling in response to the issuance of codes of good corporate governance will be more attractive to firms and also more sustainable under the following conditions: firms’ compliance costs are relatively high firms’ costs of outright and visible non-compliance are relatively high and outsiders’ compliance monitoring costs are relatively high. Originality/value – The article contributes to the debate on compliance and convergence and provides policymakers with a conceptual framework for assessing the likelihood of successful regulatory change in corporate governance.

The response of majority employee-owned firms during the pandemic compared to other firms

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Joseph Blasi ◽  
Douglas Kruse ◽  
Dan Weltmann
Keyword(s):  
Design Methodology ◽  
Employee Ownership ◽  
Social Implications ◽  
Firm Level ◽  
Content Type ◽  
Rutgers University ◽  
Employment Trends ◽  
The Difference ◽  
Industry Membership ◽  
Practical Implications

PurposeThe purpose of this study is to understand how majority employee-owned firms responded to the pandemic compared to firms that were not majority employee-owned. The Employee Ownership Foundation partnered with Rutgers University and the SSRS survey firm to survey ESOP and non-ESOP firms about their responses to the COVID-19 pandemic. A key purpose of the survey was to estimate firm-level changes in employment from mid-January to August (current employment figures were adjusted to August 5 using BLS industry employment trends). The survey also looked at other forms of adjustment and responses to the pandemic as reviewed below. The focus in this study is on the differences between firms that are majority owned by ESOPs and those that are not.Design/methodology/approachThe survey included 247 executives from ESOP Association member companies and 500 executives from an SSRS business panel constructed to be representative of US companies with 50 or more employees. The survey started on August 5 and ended on September 23, 2020.Findings(1) Majority ESOP firms had employment declines from January to August that were on average only one-fourth as large as for other firms. The difference is maintained when controlling for industry membership. (2) Majority ESOP firms were more likely to be declared “essential,” but the lower employment cutbacks among majority ESOP firms remain among essential and non-essential businesses. As essential businesses, majority ESOP firms were more likely receive Paycheck Protection Program or other government pandemic assistance, but both assistance recipients and non-recipients had lower employment cutbacks among majority ESOP firms. (3) The extent of employment cutbacks was higher for non-managers than for managers, but the manager/non-manager gap was higher among other firms than among majority ESOP firms.Research limitations/implicationsThis study supports empirical findings done previously.Practical implicationsThis study suggests to non-EO firms what they can do.Social implicationsThis study suggests strengths of EO firms.Originality/valueA very original and one-of-a-kind dataset.

Innovation capability: a systematic literature review

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Andrea Mendoza-Silva
Keyword(s):  
Design Methodology ◽  
Web Of Science ◽  
Relevant Literature ◽  
Extensive Literature ◽  
Innovation Capability ◽  
Firm Level ◽  
Content Type ◽  
Design And Implementation ◽  
Antecedents And Consequences ◽  
Practical Implications

PurposeInnovation is considered an important stage in the process of competitiveness of companies. While there is an extensive literature in the management and innovation field that shows the characteristics that enhance a firm's ability to innovate, there is still no consensus on its determinants and nature. This study aims to advance the understanding of innovation capability (IC) by conducting a systematic review of relevant literature at the firm level.Design/methodology/approachThe study reviews the literature by applying the categorization and contextualization of qualitative strategies. The study gathered 137 peer-reviewed papers from Scopus and Web of Science databases.FindingsThe papers were analysed and synthesized into an integrated framework that links IC with its internal and external determinants, and its consequences. In doing this, this study proposes directions for future investigations that might enlighten a better understanding of IC.Practical implicationsThe study provides elements that can be useful during the design and implementation of innovative initiatives in a firm.Originality/valueThe paper jointly examines in the same model the nature, antecedents and consequences of IC. In the same vein, the framework provides the little-researched links between those themes in the IC literature.

Creative approaches for generating growth using minimal resources

2020 ◽  
Vol 36 (12) ◽  
pp. 9-10
Keyword(s):  
International Business ◽  
Design Methodology ◽  
Business Models ◽  
Negative Impact ◽  
Export Market ◽  
Content Type ◽  
Pertinent Information ◽  
Industry Experience ◽  
Positive Effect ◽  
Practical Implications

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings This research paper clarifies that a coopetition-oriented mindset does drive coopetition-oriented behaviors. The results reveal that industry experience has a negative impact on the manifestation of coopetition-oriented behaviors, due a risk-related reticence in choosing suitable coopetition partners. Engaging in internationalization – for example, by partnering with a competitor to enter a foreign export market – with a coopetition-oriented mindset, has the positive effect of yielding further coopetition-oriented behaviors. Organizations involved in international business models are therefore more likely to partake in coopetition strategies. Originality/value The briefing saves busy executives, strategists and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Corporate diversification

2018 ◽  
Vol 17 (3) ◽  
pp. 405-424 ◽  
Author(s):  
Garrett C.C. Smith ◽  
Jeffrey M. Coy
Keyword(s):  
Design Methodology ◽  
Negative Relationship ◽  
Corporate Diversification ◽  
Diversification Discount ◽  
Firm Level ◽  
Content Type ◽  
Long Run ◽  
Fundamental Value ◽  
Diversified Firms ◽  
Investor Preference

Purpose The purpose of this study is to compare two theories that relate the proportion of diversified firms in the economy and the implied discount for diversified firms: the first is a real-options model predicting a positive relationship between the discount and management’s choice to operate a diversified firm; the second is based on catering theory, in which a negative relationship is predicted, as management is attentive to investor preference concerning diversified firms. Design/methodology/approach This study proposes a new aggregate measure of the diversification discount. The authors’ measure allows for decomposition of the discount into firm-level mispricing, industry-level mispricing and long-run fundamental value components. Findings Results support a catering theory of diversification. The discount appears to be the result of firm-level mispricing. Thus, providing an explanation for why, in light of the observed discount, a large number of diversified firms persist. Originality/value To the authors’ knowledge, this is the first study to provide evidence that firm-level mispricing may drive the observed diversification discount.

Financing organizational changes from without

2018 ◽  
Vol 14 (1) ◽  
pp. 99-116 ◽  
Author(s):  
Marta Lenartowicz
Keyword(s):  
International Organizations ◽  
Design Methodology ◽  
Necessary Condition ◽  
External Financing ◽  
Organizational Changes ◽  
Order Stream ◽  
Organizational System ◽  
Content Type ◽  
Strategic Policies ◽  
The Relationship

Purpose Achieving specific changes within autonomous organizations is often a necessary condition for the success of strategic public policy. Wherever it is impossible to induce such changes by regulations, a frequently used tool is inducing their occurrence with financial stimuli. This practice appears to have been fully substantiated by the early systems-evolutionary understanding of the relationship between organizations and their environment, whose peak popularity in the 1950s and 1960s coincided with the appearance of new international organizations formulating strategic policies on a previously unprecedented scale. The conceptual framework available at that time failed, however, to provide a solid ground for operationalization and systemic evaluation of such interventions. As a result, even though it was implicitly presumed that policy implementation depended on organizational changes taking place in a large number of organizations, a conceptualization of the exact ways of how to ensure and assess such changes was hardly pronounced. This paper aims to uncover the problematique of that missing conceptualization. Design/methodology/approach In this paper, the author draws on the second-order stream of systems thinking, arguing that without such a deliberate operationalization, it seems much more likely that the external financing of organizational changes functions merely as organizational “perturbations” which do not crystallize into lasting changes, as they are mitigated by equally potent “compensation” to cancel out the perturbations. Using the theory of social system’s autopoiesis, the author posits that adaptive fluctuations evoked in organizations by the interferences of the policymakers may thus be considered “change” just as well as non-change. Findings Once the behavior of an autopoietic organizational system is seen as a continuous perpetuation of its own identity pattern, fashioned discursively as the organization’s self-description, then the only change which seems worthy of the publicly assigned resources and efforts is a shift in that pattern. Originality/value It is argued that the assessment of whether target organizations are indeed implementing or only superficially performing (and instantly compensating for) the desired changes should be inferred from a qualitative analysis of the daily discursive practices that forge the target domains rather than by a comparison of the measurable parameters, which are currently dominating in the evidence-based paradigm.

HR signals in the context of HRM-firm performance relationship: development of a conceptual framework

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chiradip Bandyopadhyay ◽  
Kailash B. L. Srivastava
Keyword(s):  
Firm Performance ◽  
Human Resources ◽  
Conceptual Model ◽  
Design Methodology ◽  
Relationship Development ◽  
Firm Level ◽  
Content Type ◽  
Factors Affecting ◽  
The Relationship

PurposeThe purpose of this paper is to reframe human resources' (HR) systems and practices as HR signals drawing from conceptualizations of signals. The construct of the strength of signal is developed to quantify the attributional ability of HR signals. To examine the role of HR signals in influencing employee behaviours and firm performance, human resource management (HRM)-firm performance relationship is considered as a framework to develop a firm-level conceptual model which integrates factors affecting HR signals and its consequences.Design/methodology/approachThe paper examines the existing literature on the relationship between HRM and firm performance. In the process, the paper considers the concept of HR signal and makes a case for the strength of HR signal. Finally, the paper offers a conceptual model in order to link the antecedents and consequents of HR signals.FindingsThe paper offers a conceptual model to address the gaps in the relationship between HRM and firm performance. It also brings into focus an understanding of HRM as signals and its importance in understanding firm performance.Originality/valueThe paper enriches the existing literature by examining HRM as HR signals. It adds to the literature by considering the attributional ability of HR, through the construct of the strength of HR signals.

Identifying international market opportunities: the case of Italian companies in Egypt

2014 ◽  
Vol 21 (4) ◽  
pp. 665-674 ◽  
Author(s):  
Rosa Caiazza
Keyword(s):  
Cultural Difference ◽  
Design Methodology ◽  
International Market ◽  
Internationalization Process ◽  
Content Type ◽  
Mediterranean Countries ◽  
Southern Mediterranean ◽  
Market Opportunities ◽  
Structured Questionnaire

Purpose – The purpose of this paper is to investigate the differences and relations between Italy and Egypt and to identify main risks and opportunities for Italian firms that aim to operate in Egypt. Design/methodology/approach – The paper presents a qualitative analysis realized through some semi-structured questionnaire and a case study. Findings – High cultural difference, legal uncertainty and administrative instability are main problems in internationalization process of Italian firms in Egypt. Despite these problems, Italian firms still invest in Egypt because of economic opportunities and possible interactions. Originality/value – While interest towards Southern Mediterranean countries is increasing, there is little written on this topic. This article aims to fill the gap in literature on internationalization in emerging markets.

The relationship between growth and volatility in small firms

2014 ◽  
Vol 52 (8) ◽  
pp. 1516-1532 ◽  
Author(s):  
Ana Maria Moreno ◽  
Jose A. Zarrias ◽  
Jose L. Barbero
Keyword(s):  
Small Firm ◽  
Entrepreneurial Orientation ◽  
Design Methodology ◽  
Small Firms ◽  
Quantitative Information ◽  
Similar Nature ◽  
Firm Level ◽  
Content Type ◽  
The Relationship ◽  
Environmental Hostility

Purpose – The purpose of this paper is to investigate the effect of predictors of growth (entrepreneurial orientation (EO) and environmental hostility) and growth itself on small-firm volatility. The objective is to find out: first, whether growth and volatility possess a similar nature; second, what are the predictors of small-firm volatility. Design/methodology/approach – Questionnaire data were collected from CEOs of 433 Spanish small firms (<500 employees) who provided qualitative as well as quantitative information. Findings – The authors find that some of the predictors on growth can also be used to predict firm volatility. Specifically, the authors find that firm volatility is influenced by EO and environmental hostility. Growth also influences firm volatility. The authors also find a strong interaction effect of growth and firm size on firm volatility. The authors conclude that although growth and firm volatility are related concepts, they are different. Originality/value – Growth has concentrated small-firm research during the last 20 years. However, during the last few years, the environment has become very dynamic and small firms need research helping them to deal with such dynamism. There are few studies on firm-level volatility. The research helps understand more the determinants of small-firm volatility.

Sustainable consumption and growth: Examining complementary perspectives

2018 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Manjula S. Salimath ◽  
Vallari Chandna
Keyword(s):  
Value Chain ◽  
Design Methodology ◽  
Firm Growth ◽  
Sustainable Consumption ◽  
Theory And Practice ◽  
Voluntary Simplicity ◽  
Firm Level ◽  
Content Type ◽  
Physical Resources ◽  
Multiple Levels

Purpose By drawing attention to the finite rather than unlimited nature of physical resources, the purpose of this paper is to: examine the implications of the (near absolute) emphasis placed on firm growth on sustainable consumption; and discuss complementary perspectives spanning individual, firm and societal levels that allow for both firm growth and sustainable consumption. Design/methodology/approach The authors integrate multidisciplinary insights from marketing, sociology, environmental sciences, management and economics, to understand the inherent tensions between unchecked firm growth, consumption and sustainability. Five propositions link production, consumption and marketing from a resource standpoint. Findings A ceaseless economic growth paradigm and overconsumption causes an unwarranted depletion of resources and is at odds with sustainability. Firms can play an important role by guiding future marketing and production toward sustainable ends. Several alternate perspectives support the case that growth may coexist and align with sustainable consumption. Consequently the authors consolidate and reflect on seven approaches (voluntary simplicity, humane consumption, CSR 2.0, social marketing, marketing 3.0, anti-positional economy and degrowth) that hold promise for achieving sustainability via responsible growth and consumption. Originality/value The authors consider the complex triad of growth, consumption and sustainability that spans multiple levels. A focus on the pattern and nature of growth and consumption helps to identify its effects on sustainability. Specifically, two value chain activities – production and marketing may be leveraged as firm level initiatives to achieve sustainable goals. In addition, the authors present seven heterogeneous perspectives that complement firm attempts to achieve growth with sustainable consumption. Implications for theory and practice are discussed.

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