Imposing cooperation: the impact of institutions on the efficiency of cooperatives in the Philippines

2020 ◽  
Vol 14 (4) ◽  
pp. 421-440
Author(s):  
Roberto Martin N. Galang ◽  
Rouselle F. Lavado ◽  
George O. White III ◽  
Jamil Paolo S. Francisco
Keyword(s):  
Emerging Market ◽  
Research Question ◽  
The Philippines ◽  
Performance Outcomes ◽  
Organizational Size ◽  
Firm Level ◽  
Content Type ◽  
Positive Externalities ◽  
Political Structures ◽  
The Impact

Purpose The purpose of this study is to answer the research question: How do cooperative organizations perform when created by government fiat in an emerging market? Through the use of institutional and agency theory, this paper presents a comparative analysis of the efficiency of the cooperative form of organization and investor-owned firms-investigating how the social–political structures in a community affect the efficiency of cooperatives vis-à-vis investor-owned firms. This paper also attempts to offer a better understanding of how government quality and organizational size influence performance outcomes between different organizational forms specifically in the Philippines. Design Methodology Approach The empirical analysis of this study was conducted among electric distribution utilities in the Philippines. Firm-level data was generated for 133 distributors, consisting of 119 electric cooperatives and 14 investor-owned companies. Panel data regressions were ran to test all hypotheses. Findings Cooperative organizations operate at a less efficient rate than investor-owned firms in the Philippines, even when controlling for firm-specific factors such as size, customer density and profitability. In addition, the efficiency of these cooperative organizations is more strongly influenced by the quality of the local government than investor-owned firms. Originality Value Positive externalities generated by the propagation of cooperatives on local communities may be based primarily on our understanding of how cooperatives have functioned largely in western contexts. Within the context of Southeast Asia, where national socio-political structures may be more dysfunctional, this paper observes that there is an equivalent negative externality caused by the tendency of cooperatives to replicate the political mismanagement of the community around it.

New evidence of the relationship between employee satisfaction and firm economic performance

2015 ◽  
Vol 44 (6) ◽  
pp. 906-929 ◽  
Author(s):  
Santiago Melián-González ◽  
Jacques Bulchand-Gidumal ◽  
Beatriz González López-Valcárcel
Keyword(s):  
Firm Performance ◽  
Organizational Performance ◽  
Employee Satisfaction ◽  
Performance Outcomes ◽  
Firm Level ◽  
Content Type ◽  
Worker Satisfaction ◽  
The Impact ◽  
The Relationship ◽  
Level Performance

Purpose – Employee satisfaction appears in any discussion about how employees can contribute to organizational performance. The purpose of this paper is to test the relationship between employee satisfaction and organizational performance; this later measured with three firm-level performance outcomes (return over assets, operating margin, and revenue per employee). Design/methodology/approach – At different times and from two independent sources the authors obtained firms’ data about worker attitudes and financial and productivity performance, respectively. The analyzed sample of 475 firms is the biggest among the studies that analyze performance and employee satisfaction at the firm level. The impact of employee satisfaction over firm performance was assessed. Findings – Overall satisfaction and satisfaction with senior leadership, compensation, and work/life balance, respectively impact firm performance. Research limitations/implications – The ratings come from both employees and ex-employees and the individual characteristics were unknown. Additionally as an internet-based sample there has been a lack of control over the individuals’ response process. Practical implications – Managers have evidence about the importance of their employees’ satisfaction on firm performance, and on how the facets involved on worker satisfaction impact the performance. Social implications – Employer review web sites are increasing their popularity. However, unlike the marketing field with consumers HR area has not taken advantage of this trend. The found results may contribute to highlight the importance of this kind of data. Originality/value – Hitherto there is only one empirical evidence about the positive role of worker satisfaction in objective and financial firm level performance. That was based in best-firms type data. The current study draws in a big sample independent of this kind of rankings. Additionally, the job facet satisfaction conceptualization considered demonstrates the usefulness of this way to understand the employee satisfaction.

scholarly journals Export activity, R&D investment, and foreign ownership: does it matter for productivity?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Carlos M.P. Sousa ◽  
Ji Yan ◽  
Emanuel Gomes ◽  
Jorge Lengler
Keyword(s):  
Emerging Market ◽  
Time Lag ◽  
Foreign Ownership ◽  
National Bureau ◽  
Firm Level ◽  
Content Type ◽  
Export Activity ◽  
Learning By Exporting ◽  
The Impact ◽  
D Investment

PurposeThe paper examines the impact of export activity on productivity and how this effect is moderated by R&D investment and foreign ownership.Design/methodology/approachA time-lag effect is taken into account when examining the proposed model. Data are collected from the Annual Industrial Survey of the National Bureau of Statistics of China. A dataset containing 117,340 firms across the sample period (2001–2007) are used to test the hypotheses.FindingsThe results indicate that while R&D investment plays a significant role in strengthening the positive effect of export activity on a firm's productivity, foreign ownership surprisingly has a negative moderating role.Originality/valueScholarly interest in the links between export activity and productivity is on the rise. However, the bulk of research has been focused on understanding the effects of export activity on productivity at the country or industry level. Little has been done at the firm level. Another gap in the literature is that the mechanism through which the impact of export activity can be leveraged to enhance the firm's productivity has been largely ignored. To address these issues, the study adopts the learning-by-exporting theory to examine the relationship between export and productivity at the firm-level and how R&D investment and foreign ownership may explain how learning can be leveraged to enhance the firm's productivity. Finally, these relationships are examined in the context of firms from an emerging market, China, which is especially relevant for the learning-by-exporting argument used in this study.

Does it matter where you live? Examining the impact of gender, gender egalitarianism and city context on the work–family interface

2020 ◽  
Vol 9 (3) ◽  
pp. 391-410 ◽  
Author(s):  
Ujvala Rajadhyaksha
Keyword(s):  
Emerging Market ◽  
Research Question ◽  
Rapid Urbanization ◽  
Men And Women ◽  
Content Type ◽  
Gender Egalitarianism ◽  
Urban City ◽  
And Gender ◽  
Work Family ◽  
The Impact

PurposeThis study asks the following research question: does “city” context interact with gender and gender egalitarianism (GE) to impact the positive (WFPOS – work–family positive spillover) and negative (WFC - work-family conflict) aspects of the work–family (WF) interface of working men and women in India.Design/methodology/approachMANCOVA analysis is used to examine data gathered from 250+ working men and women from eight different Indian cities that were ranked based on the 2018 Ease of Living (EOL) Index.FindingsThere was no significant main effect of gender on WF interface variables. Low levels of GE and low EOL were significantly associated with high levels of WFC and WFPOS. There was a significant interaction between gender, GE and city. An examination of within-gender differences indicated that in low-EOL cities, men and women with low values of GE (traditionals) had significantly higher time-based WFC than men and women with high values of GE (egalitarians). Additionally, traditional women reported higher WFPOS than egalitarian women. In high-EOL cities, traditional men reported significantly higher time-based WFC than egalitarian men. There were no significant differences between women.Research limitations/implicationsGender, along with gender-related attitudinal and contextual variables, does a better job of explaining variance in the WF interface as compared to gender alone. Results support the notion that high WFPOS and high WFC can co-occur in contexts of change and transition such as rapidly growing urban centers.Practical implicationsThe results have significance for work–family practitioners as well as urban city planners looking to improve the quality of work–life in India and other similar emerging market economies experiencing rapid urbanization.Originality/valueThe study extends work–family research by bringing aspects of urban planning and gender studies into an understanding of the work–family interface.

Firm innovation and access to finance: firm-level evidence from India

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Parneet Kaur ◽  
Navneet Kaur ◽  
Paras Kanojia
Keyword(s):  
Small Firms ◽  
Small And Medium Enterprises ◽  
Emerging Market ◽  
Innovation Performance ◽  
Innovation Activity ◽  
Firm Level ◽  
Firm Innovation ◽  
Content Type ◽  
Explanatory Variables ◽  
The Impact

Purpose Based on 9,281 firm-level survey data on micro, small and medium enterprises (MSMEs) in India, this study aims to investigate how access to different finance sources and collateral requirement facilitates the firm’s innovation activity across industries. Design/methodology/approach This paper used ordered logit regression models using Stata software for explanatory variables to measure the impact of explanatory variables on firm innovation performance. Firms’ innovation performance is measured through the aggregate innovation index obtained by adding up the no. of “new-to-firm” activities. Findings The empirical results reveal that external sources of funding impact innovation activity than other financing sources. Also, the requirement of collateral for financing impacts innovation performance significantly. This paper finds that firms funded by state-owned banks or government agency are more actively engaged in innovation activities. The firm’s size, ownership structure and location of the firm also show the varying innovation performance. This paper found variation in innovation performance across industries as well. Practical implications First, the present study underlines the significance of funding sources. Second, minimizing the need for collateral to obtain external finance boosts small firms’ innovation activity and will also trigger overall economic growth. Finally, while making policies for ownership transformation of state-owned institutions, policymakers should discuss these policies’ impact on innovative firms. Originality/value What facilitates innovation performance in an emerging market is missing in the literature for MSMEs, largely due to lack of data. It is reasonable not to generalize innovation knowledge in large firms to small firms because of the constraints, particularly MSMEs face.

Does ownership concentration affect cost of debt? Evidence from an emerging market

2019 ◽  
Vol 12 (3) ◽  
pp. 282-296 ◽  
Author(s):  
Imad Jabbouri ◽  
Maryem Naili
Keyword(s):  
Stock Exchange ◽  
Emerging Market ◽  
Panel Data Analysis ◽  
Ownership Concentration ◽  
Cost Of Debt ◽  
Governance Mechanisms ◽  
Firm Level ◽  
Content Type ◽  
Controlling Shareholders ◽  
The Impact

Purpose The purpose of this paper is to explore how ownership concentration affects cost of debt (CoD) in one of the most important emerging markets in the Middle East and North Africa, Morocco. Design/methodology/approach The study employs panel data analysis using non-financial firms listed on Casablanca Stock Exchange (CSE) between 2004 and 2016. To unveil the hidden facets of the relationship between ownership concentration and CoD, and examine if this relationship changes with market conditions, we conduct a pre–post-crisis analysis. Findings The results demonstrate that controlling shareholders promote decent governance as long as they are able to generate appropriate returns. However, this behavior seems to change during the post-crisis period. In their attempts to increase their returns adversely affected by the financial crisis, controlling shareholders switch from guardians of decent governance and firm’s resources to a menace to creditors’ interests. Practical implications Our results expose the severity of agency problems in CSE. It is the duty of all market participants including regulators, board of directors, financial analysts, shareholders and creditors to scrutiny and reinforce governance mechanisms to alleviate expropriation by controlling shareholders. Improving country and firm-level governance mechanisms would enhance investors’ protection, attract international investors and boost the economic activity. Originality/value Prior research is inconclusive about the impact of ownership concentration on CoD. Hence, it is worthwhile to seek new evidence in a new market on the nature of this relationship.

Business volatility and employee performance

2018 ◽  
Vol 33 (3) ◽  
pp. 96-119 ◽  
Author(s):  
Wen-Chyuan Chiang ◽  
Li Sun ◽  
Brian R. Walkup
Keyword(s):  
Design Methodology ◽  
Positive Impact ◽  
Employee Performance ◽  
Research Question ◽  
Labor Cost ◽  
Firm Level ◽  
Content Type ◽  
Management Literature ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to examine the impact of business volatility on employee performance. Design/methodology/approach The authors use regression analysis to examine the authors’ research question. Findings The results suggest that business volatility has a significant and positive impact on employee performance. Furthermore, the authors find that the relationship between business volatility and employee performance is stronger for larger firms and firms with higher labor intensity. Originality/value The study links and contributes to two streams of literature: employee/labor cost management from the accounting literature and business volatility from the management literature. Whether business volatility affects employee performance remains an interesting question that has not been definitively answered empirically. To the best of the authors’ knowledge, this is the first empirical study that directly examines the relationship between business volatility and employee performance at the firm level.

Performance outcomes of behavioral attributes in buyer-supplier relationships

2015 ◽  
Vol 30 (7) ◽  
pp. 805-816 ◽  
Author(s):  
Sandra Simas Graca ◽  
James M. Barry ◽  
Patricia M. Doney
Keyword(s):  
Conflict Resolution ◽  
Emerging Market ◽  
Performance Outcomes ◽  
Equation Modeling ◽  
Supplier Relationships ◽  
Content Type ◽  
Behavioral Attributes ◽  
Relationship Capital ◽  
Performance Satisfaction ◽  
The Impact

Purpose – The purpose of this paper is to explain the impact of relationship capital (trust and commitment) and the exchange climate (communication, conflict resolution and cooperation) on performance satisfaction in the context of buyer–supplier relationships. The study also examines the influence of national culture on the proposed relationships. Design/methodology/approach – A conceptual model and accompanying research hypotheses are tested on data from a survey of 169 US and 110 Brazilian buyers. Structural equation modeling (AMOS 18.0) is used to test the hypotheses. Findings – Results suggest that performance satisfaction is highly dependent on the level of relationship capital and climate of information exchange between buyer and supplier. Quality communication and conflict resolution have the greatest impact on performance satisfaction while trust’s influence is both direct and mediated by the exchange climate. Research limitations/implications – The study is limited to a two-country sample in a business-to-business (B2B) context. Also, this study examines only the impact of socio-psychological behaviors on performance outcomes; economic variables are not considered. Practical implications – Results provide insight into what behavioral attributes are most influential in increasing a buyer’s satisfaction with a supplier’s performance in distinct countries. Based on the findings, suppliers can better formulate strategies to enter overseas markets. Originality/value – This study extends the strategic alliance literature on performance-relevant behaviors to the context of buyer–supplier relationships. In addition, the study contributes to the extant literature by including a sample from an emerging market.

Investigating firm heterogeneity in country-of-origin cluster location choice decisions

2019 ◽  
Vol 28 (2) ◽  
pp. 221-244 ◽  
Author(s):  
Francisco Puig ◽  
Anoop Madhok ◽  
Zhi Shen
Keyword(s):  
Firm Heterogeneity ◽  
Local Economic Development ◽  
Location Choice ◽  
Emerging Market ◽  
Multinomial Logit Model ◽  
Firm Level ◽  
Content Type ◽  
Mainland Chinese ◽  
Advantages And Disadvantages ◽  
The Impact

Purpose This paper aims to analyse which firm-level characteristics drive their location decisions when investing in a foreign country. Focusing on origin clusters, the authors will study the potential influence of the home country context and, in particular, the impact of firm-level factors, both investor- and investment-related, underlying heterogeneity in their location choice decisions. Design/methodology/approach The empirical analysis draws on data gathered from mainland Chinese MNEs that have invested in Germany between 2005 and 2013 (269 firms). The authors chose a single host (Germany) and a single home (China) country for their representativeness and for methodological reasons to control for country effects. The authors used a multinomial logit model to assess the effects of the independent variables on the probability that each of the three location possibilities would be selected. Findings The results suggest that investors preferring co-location in origin clusters have distinct structural and strategic characteristics. From a more structural point of view, Chinese foreign direct investment (FDI) undertaken by smaller firms and those without prior experience in the EU prefer an area where there are other Chinese investors. From a more strategic perspective, these FDI flows are more likely to tap into industry agglomerations when the investors’ objective is strategic asset seeking, and they have less knowledge-intensive investments. Practical implications The findings may be of great practical value to practitioners and policymakers. Knowledge of the advantages and disadvantages of the types of agglomeration networks can help managers to balance the rewards and risks in their decision-making and to select a suitable development path for their FDIs. For policymakers, an understanding of the structure and formation of different groups of firms in one location and the characteristics of investors who may enter the location can help them to improve their regulatory work and to develop policies to attract investments, thereby enhancing local economic development and community stability. Originality/value The research shifts the emphasis of the location choice decision beyond just where to locate toward with whom to collocate. It also contributes to the growing research on emerging market multinationals by providing further insight into understanding of FDI location behavior by firms from emerging economies.

The effect of the adoption of an alternative corporate governance system on firms’ performances

2016 ◽  
Vol 35 (4) ◽  
pp. 517-529 ◽  
Author(s):  
Carlo Bellavite Pellegrini ◽  
Bruno S. Sergi ◽  
Emiliano Sironi
Keyword(s):  
Corporate Governance ◽  
Propensity Score ◽  
Performance Outcomes ◽  
Corporate Law ◽  
Law Reform ◽  
Governance System ◽  
Content Type ◽  
Alternative System ◽  
The Impact ◽  
Board System

Purpose – Alternative corporate governance systems (CGSs) have attracted a significant bulk of research recently. While the connection between the adoption of an alternative system (one tier board or two tier board system) and firms’ performances has not been fully analysed yet, the purpose of this paper is to analyse whether companies which have turned into an alternative board system have eventually improved their performance over time. Design/methodology/approach – Using a sample of more than 15,000 Italian unlisted joint stock companies, the authors compare performance outcomes in 2009 of firms adopting alternative systems with performances of firms that maintained the system in force before the 2003 Corporate Law Reform (defined as “traditional”). Because of the choice of an alternative system (one tier or two tier board) instead of a traditional one is not random, the authors reduce selection bias implementing matching methods and comparing firms that are close in terms of propensity score measured in 2003 (the year before the new CGSs have been introduced by a corporate law reform). Findings – The authors do not find evidence of a significant improvement of performances in 2009 concerning those firms that have adopted a one tier or two tier board systems with respect to those which maintained a traditional one. Originality/value – The novelty of the study concerns the application of propensity score matching for the evaluation of the impact of the change of the CGS that is possible in presence of two conditions that are all verified in our setting: first, to have a country where corporate law allows for choosing among different systems; in this case Italy is a good laboratory, because it allows for the choice among three different systems; and second, to have the opportunity to evaluate the effect of the change in light of a relatively recent “pre-treatment” condition; this is made possible by the fact that before the 2003 Reform of corporate law all the companies had a traditional system.

scholarly journals The drivers of economic growth in China and India: globalization or financial development?

2017 ◽  
Vol 16 (1) ◽  
pp. 54-84 ◽  
Author(s):  
Magda Kandil ◽  
Muhammad Shahbaz ◽  
Mantu Kumar Mahalik ◽  
Duc Khuong Nguyen
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Emerging Market ◽  
Annual Data ◽  
Test Results ◽  
Causality Test ◽  
Content Type ◽  
China And India ◽  
Integration Test ◽  
The Impact

Purpose Using annual data from 1970 to 2013 for China and India, this paper aims to examine the impact of globalization and financial development on economic growth by endogenizing capital and inflation and drawing comparisons between the two fastest growing emerging market economies. Design/methodology/approach In the long run, co-integration test results indicate that financial development increases economic growth in China and India. Findings The results also reveal that globalization accelerates economic growth in India but, surprisingly, impairs economic growth in China, as it increases competition for exports. The results furthermore disclose that acceleration in capitalization and inflation, as a proxy for aggregate demand, are positively linked to economic growth in China and India. Originality/value Causality test results indicate that both financial development and economic growth are interdependent. In contrast, causality runs from higher economic growth to increased globalization in India, while the results do not support long-term causality between globalization and economic growth in China.

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