scholarly journals The impact of entrepreneurship on knowledge economy in Africa

2016 ◽  
Vol 8 (1) ◽  
pp. 101-131 ◽  
Author(s):  
Simplice A. Asongu ◽  
Vanessa S. Tchamyou
Keyword(s):  
Knowledge Economy ◽  
Value Chain ◽  
Fixed Effects ◽  
Agricultural Practices ◽  
Value Added ◽  
High Tech ◽  
African Countries ◽  
Content Type ◽  
Positive Effects ◽  
The Impact

Purpose – This paper aims to assess how entrepreneurship affects knowledge economy (KE) in Africa. Design/methodology/approach – Entrepreneurship is measured by indicators of starting, doing and ending business. The four dimensions of the World Bank’s index of KE are used. Instrumental variable panel-fixed effects are applied on a sample of 53 African countries for the period of 1996-2010. Findings – The following are some of the findings. First, creating an enabling environment for starting business can substantially boost most dimensions of KE. Second, doing business through mechanisms of trade globalization has positive effects from sectors that are not information and communication technology (ICT) and high-tech oriented. Third, the time required to end business has negative effects on KE. Practical implications – The findings confirm the narrative that the technology in African countries at the moment may be more imitative and adaptive for reverse engineering in ICTs and high-tech products. Given the massive consumption of ICT and high-tech commodities in Africa, the continent has to start thinking of how to participate in the global value chain of producing what it consumes. Originality/value – This paper has a twofold motivation. First, given the ambitions of African countries of moving towards knowledge-based economies, the line of inquiry is timely. Second, investigating the nexus may have substantial poverty mitigation and sustainable development implications. These entail, inter alia, the development of technology with value-added services; enhancement of existing agricultural practices; promotion of conditions that are essential for competitiveness; and adjustment to globalization challenges.

Global value chain linkages and domestic value-added content: Empirical evidence

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Bhushan Praveen Jangam ◽  
Badri Narayan Rath
Keyword(s):  
Value Chain ◽  
Least Squares Method ◽  
Value Added ◽  
Value Chains ◽  
Global Value Chain ◽  
Content Type ◽  
Services Sector ◽  
The Impact ◽  
The Relationship ◽  
Practical Implications

Purpose This paper aims to examine the relationship between global value chains (GVCs) and domestic value-added content (DVA) in a panel of 58 countries for the period 2005–2015. Design/methodology/approach First, the authors quantify the refined measures of GVC linkages by using the Borin and Mancini (2019) decomposition technique. Second, the authors apply the feasible generalised least squares method to test the relationship between GVCs and DVA empirically. Findings First, the authors find that GVC links are crucial to the enhancement of DVA. Second, a study at the sectoral level reveals that GVC links in the primary sector raise DVA whilst reducing DVA in the services sector. Third, the authors find that only upstream activities enhance value-added content. Fourth, the authors note the augmenting role played by national policies in mediating the gains associated with GVCs. Finally, the authors note that the outcomes associated with GVCs are consistent when the sample of countries is divided into groups based on income. Practical implications The results lead us to urge policymakers to promote greater integration of business activities into GVCs to reap their benefits. Originality/value This paper contributes to the research on the impact of GVCs on DVA by emphasising the significance of the types of GVC activities and policies that improve DVA.

scholarly journals Strengthening the stability of exports through GVC participation

2018 ◽  
Vol 45 (3) ◽  
pp. 610-637 ◽  
Author(s):  
Carmen Díaz-Mora ◽  
Rosario Gandoy ◽  
Belen Gonzalez-Diaz
Keyword(s):  
Developing Countries ◽  
Value Chain ◽  
Value Added ◽  
Time Duration ◽  
Content Type ◽  
Country Level ◽  
Key Factor ◽  
Trade Relationships ◽  
The Stability ◽  
The Impact

Purpose Drawing on the literature that has shown the prevalence of short-lived trade relationships, the purpose of this paper is to provide further understanding about this issue by exploring the impact of engaging in Global Value Chains (GVCs) on the chance of export survival at product-country level, paying special attention to the differences between advanced and developing countries. The authors also investigate whether the type of GVC participation (backward or forward) matters for export survival. Design/methodology/approach To capture to what extent a country’s exports are integrated in GVCs, the authors use the OECD Inter-Country Input-Output database to estimate value added incorporated in exports. Through the estimation of a discrete-time duration model, the authors explore the impact of engaging in GVCs on export survival using highly disaggregated trade data from the CEPII’s BACI database. Findings The findings endorse the hypothesis that deeper participation in GVCs is a key factor in explaining stability in trade relationships, mainly for developing countries where the trade flows are especially fragile. The authors also find different effects depending on the type of GVC involvement and on whether the value chain partners are advanced or developing. Originality/value The paper contributes to the literature by extending the understanding on the factors that promote the stability of exports, including among them, involvement on GVCs (and its forms) which is one of the most relevant factors to explain recent behavior of trade.

Intellectual capital efficiency and bank’s performance

2019 ◽  
Vol 31 (4) ◽  
pp. 672-694 ◽  
Author(s):  
Amina Buallay ◽  
Richard Cummings ◽  
Allam Hamdan
Keyword(s):  
Financial Performance ◽  
Intellectual Capital ◽  
Positive Relationship ◽  
Market Performance ◽  
Value Added ◽  
High Tech ◽  
Islamic Banks ◽  
Content Type ◽  
Conventional Banks ◽  
The Impact

Purpose Intellectual capital (IC) plays a pivotal role in the high-tech and knowledge-based economic sectors. With the emergence of FinTech, which, with respect to the banking sector, is merging high-tech with the k-economy, there is an emerging need to highlight the importance and understand the dynamics of bank IC. With respect to Gulf Cooperation Council (GCC) economies, where FinTech has become de rigueur, banking is bifurcated into Islamic and banking sectors. Through comparative empirical analysis, the purpose of this paper is to examine IC efficiency in Islamic and conventional banks with a view to elucidating the impact of IC, in aggregate and decomposed into its components, on an operational, financial and market performance of Islamic banks juxtaposed with conventional banks. Design/methodology/approach Using data collected from 59 banks for five years (2012-2016) involving 295 observations, an independent variable derived from the modified value added IC (MVAIC) components are regressed against dependent bank performance indicator variables [Return on Assets (ROA), Return on Equity (ROE) and Tobin’s Q (TQ)]. Two types of control variables complete the regression analysis in this study: bank-specific and macroeconomic. Findings The findings elicited from the empirical results demonstrate that there is positive relationship between IC efficiency and financial performance (ROE) and market performance (TQ) in Islamic banks. In conventional banks, however, there is a positive relationship between IC and operational performance (ROE) and financial performance (ROE). Originality/value The model in this paper presents a valuable analytical framework for exploring IC efficiency as a driver of performance in dual-sector banking economies characterized by co-existence of Islamic and conventional financial institutions. In addition, this paper highlights bank management lacunae manifesting in terms of the weak nexus between: IC and asset efficiency (ROA) in Islamic banks and IC and market value (TQ) in conventional banks.

Strategic transformation in the value-added wood products companies

2015 ◽  
Vol 10 (2) ◽  
pp. 224-242 ◽  
Author(s):  
Minli Wan ◽  
Katja Lähtinen ◽  
Anne Toppinen
Keyword(s):  
Value Chain ◽  
Value Added ◽  
Wood Products ◽  
Dynamic Capability ◽  
Firm Level ◽  
Content Type ◽  
Intangible Resources ◽  
Chinese Wood ◽  
The Impact ◽  
Strategic Transformation

Purpose – China is a leading country in the production, consumption and exports of value-added wood products. Despite this fact, the sources of competitiveness and the existing strategies in the Chinese wood products companies have not been profoundly studied in an international context. The purpose of this paper is to fill these gaps by exploring managerial perceptions of these issues. Design/methodology/approach – The theoretical ingredients originating from the value chain theory, functional upgrading, the dynamic capability perspective and the natural resource-based view were combined to explore the shift of business functions and sources of the firm-level competitiveness in the Chinese wood products companies. In the empirical part, data from qualitative semi-structured interviews made with 28 managers of seven companies in China based on the case study method were used. Findings – Our results indicate a transition from non-branded manufacturing to original equipment manufacturing to original brand manufacturing business model. With this strategic transformation, the amount of resources and the relative importance of intangible resources increased and the nature of tangible resources also changed. Practical implications – Chinese companies tend to shift from low-value-added to high-value-added products production. Our results are not only informative about the current situation of the Chinese wood products companies, but also can be used as a background for assessing the impact of China’s increasing competitiveness on the future international wood products market. Originality/value – The dynamic capability perspective was incorporated in a new empirical approach to study the strategic management of woodworking industries, and our results provide new information on the importance of intangible resources for firm competitiveness.

scholarly journals Relevance of corporate boards in driving performance in the period that covers financial crisis

2019 ◽  
Vol 19 (2) ◽  
pp. 321-338 ◽  
Author(s):  
Geeta Rani Duppati ◽  
Frank Scrimgeour ◽  
Albert Sune
Keyword(s):  
Financial Crisis ◽  
Fixed Effects ◽  
Global Financial Crisis ◽  
Gender Diversity ◽  
Negative Relationship ◽  
Board Size ◽  
Content Type ◽  
Positive Effects ◽  
And Performance ◽  
The Impact

Purpose This paper aims to examine the relevance of boards in driving firm level performance. For this purpose, it considers firms listed on Ireland and Spain stock exchanges for the period 2005 to 2014, over a period that includes the global financial crisis. Design/methodology/approach This study uses panel data regression analysis to analyse the effects of board characteristics on performance and also uses alternate model specifications to test the significance of robustness of relationships. Findings The impact of board size on performance is negative and significant for Irish and Spanish firms for the study period. In general, the board independence has a positive effect on the performance of Spanish firms for the complete study period and suggests consistency with the resource dependency theory. Research limitations/implications The analysis suggests that in general, the non-executive and the board size do not affect the corporate performance of Irish and Spanish firms during the financial crisis. The fixed effects model suggests positive effects of gender diversity on performance for Spanish firms, while the random effects indicates negative relationship between gender diversity and performance for Irish companies. Practical implications The evidence on the Spanish firms suggests that female representation on the boards may be critical during the financial crisis Social implications The quota legislation on female board representation in Spain is yielding superior results over the soft law approach by Irish firms during the times of financial crisis period. Originality/value This study contributes to the literature on the corporate governance practices and performance of two countries that were strongly affected by the crisis in the European Union. As governments increasingly contemplate board gender diversity policies, this study offers useful empirical insights on Spanish and Irish firms.

Trade liberalization and productivity of Indian manufacturing firms

2019 ◽  
Vol 13 (1) ◽  
pp. 73-98 ◽  
Author(s):  
Bishwanath Goldar ◽  
Isha Chawla ◽  
Smruti Ranjan Behera
Keyword(s):  
Trade Liberalization ◽  
Fixed Effects ◽  
Value Added ◽  
Good Deal ◽  
Manufacturing Firms ◽  
Econometric Models ◽  
Fixed Effects Model ◽  
Firm Level ◽  
Content Type ◽  
The Impact

Purpose The purpose of this paper is to assess the impact of India’s trade liberalization during the late 1990s and 2000s on productivity of manufacturing firms and verify whether the productivity-enhancing impact of reductions in input tariffs was greater than that of output tariff cuts, as found in some earlier studies. Design/methodology/approach Firm-level (company-level) data drawn from Prowess database are used for the estimation of total factor productivity (TFP) at the firm level, done by using the Levinsohn–Petrin methodology. Econometric models are estimated to explain firm-level TFP. The explanatory variables used are output and input tariff rates and quantitative restrictions on imports at the industry level and firm characteristics such as firm size, export intensity and import intensity. Firm-level panel data for 2002-2010 or for a longer period 1998-2010 are used for the estimation of econometric models. Model estimation is done by applying the fixed-effects model and IV-2SLS, 3SLS estimators and EC2SLS estimators. Findings Trade liberalization had a significant positive effect on the productivity of Indian manufacturing firms. The lowering of output tariff had a greater beneficial impact on TFP of Indian manufacturing firms than the lowering of tariff on intermediate inputs. Originality/value Good deal of care has been taken in the measurement of output and inputs for the purpose of TFP measurement. Two alternative frameworks, gross output and value added, are used. This helps in making a better estimate of the impact of trade liberalization on TFP.

scholarly journals Should bankers be concerned with Intellectual capital? A study of the Thai banking sector

2018 ◽  
Vol 19 (5) ◽  
pp. 897-914 ◽  
Author(s):  
Dai Binh Tran ◽  
Duc Hong Vo
Keyword(s):  
Financial Performance ◽  
Intellectual Capital ◽  
Fixed Effects ◽  
Banking Sector ◽  
Causal Effect ◽  
Generalized Method Of Moments ◽  
Value Added ◽  
Bank Profitability ◽  
Content Type ◽  
Positive Effects

Purpose The purpose of this paper is to examine the causal effect of intellectual capital (IC) performance on financial performance at Thai listed banks. Design/methodology/approach Data are collected from 16 listed banks in Thailand for the period 1997–2016. This paper uses the value-added intellectual coefficient methodology suggested by Pulic (1998, 2004) to measure IC. This study employs a fixed-effects and random-effects model and generalized method of moments (GMM) estimator to investigate the causal effect of IC on financial performance. Findings The results show that bank profitability is driven mainly by capital employed efficiency to make a profit. However, human capital efficiency marginally reduces bank profitability in the current period but has positive effects on future profitability. Research limitations/implications First, this study does not cover data on foreign banks, which reduces the generalizability of the results. Second, financial statements can be manipulated through accounting adjustments. Lastly, subsequent research should control for more bank characteristics, such as bank ownership, the non-performing loan ratio and R&D expenditure. Practical implications To achieve higher future profitability, banks should not only manage their physical and financial capital effectively but also improve employee efficiency. Originality/value This paper contributes to the literature on IC in the banking sector in emerging countries. Moreover, this paper is the first to employ the GMM method in the banking context to address possible endogeneity problems.

Identifying successful strategies for honey value chains in Brazil: a conjoint study

2016 ◽  
Vol 118 (7) ◽  
pp. 1800-1820 ◽  
Author(s):  
Hugo Santana de Figueiredo Junior ◽  
Miranda P. M. Meuwissen ◽  
Ivo A. Van der Lans ◽  
Alfons G. J. M. Oude Lansink
Keyword(s):  
Conjoint Analysis ◽  
Value Chain ◽  
Performance Indicators ◽  
Technical Assistance ◽  
Value Added ◽  
Chain Structure ◽  
Value Chains ◽  
Content Type ◽  
Organic Certification ◽  
The Impact

Purpose – Development studies rarely measure the impact of value chain strategies on performance. The purpose of this paper is to quantify the perceived contribution of strategies to the performance of three honey value chains in Brazil. Design/methodology/approach – The value chain structure-conduct-performance (SCP) framework was used to select strategies and two performance indicators, honey production growth and local value-added. In a conjoint study, experts were asked to judge the contribution to the two performance indicators of several hypothetical combinations of value chain strategies. Findings – According to the experts, adoption of specialised technical assistance, sharing resources at the production step, increase in exports, and organic certification were the strategies which contributed the most to performance. Simulations suggested that some honey value chains could have greatly increased their performance with these higher pay-off strategies. Research limitations/implications – Quantifying the perceived impact of individual strategies contributes to improved evaluation of development interventions. Practical implications – Outcomes also show that conjoint analysis is a useful method for policy evaluations in data scarce situations. Originality/value – The paper combines an extended SCP framework for strategy selection and conjoint analysis for strategy evaluation of value chains.

The interrelationship between intellectual capital and firm performance: evidence from China's manufacturing sector

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jian Xu ◽  
Jingsuo Li
Keyword(s):  
Firm Performance ◽  
Intellectual Capital ◽  
Manufacturing Sector ◽  
Value Added ◽  
Physical Capital ◽  
Listed Companies ◽  
High Tech ◽  
Manufacturing Companies ◽  
Content Type ◽  
The Impact

PurposeThe purpose of this paper is to examine the impact of intellectual capital (IC) and its components (human, structural and relational capitals) on the performance of manufacturing listed companies in China. This paper also investigates the impacts of company ownership, industry attributes and region on the IC-performance relationship.Design/methodology/approachThe study uses the data of 953 manufacturing companies listed on the Shanghai and Shenzhen Stock Exchanges over the period 2012–2016. The modified value-added intellectual coefficient (MVAIC) model is applied to measure IC efficiency. Finally, multiple regression analysis is employed to test the research hypotheses.FindingsThis study reveals that IC can enhance firm performance in China's manufacturing sector. Overall, earnings are affected by physical capital, human capital (HC) and structural capital (SC), and profitability and productivity are influenced by physical capital, HC, SC and relational capital. Physical capital is the most influential contributor to firm performance. In addition, state-owned enterprises have a greater impact of IC on firm performance than private-owned enterprises; high-tech manufacturing companies have higher IC performance than non-high-tech manufacturing companies; manufacturing companies in China's eastern region have higher IC performance than the counterparts in central and western regions.Practical implicationsThe findings may help managers, stakeholders and policymakers in developing countries to effectively and efficiently manage their IC resources.Originality/valueThis is the first study to evaluate IC and its relationship with firm performance among Chinese manufacturing listed companies using the MVAIC model.

Financial penalties and banks’ systemic risk

2018 ◽  
Vol 19 (2) ◽  
pp. 154-173 ◽  
Author(s):  
Hannes Köster ◽  
Matthias Pelster
Keyword(s):  
Systemic Risk ◽  
Fixed Effects ◽  
Banking Sector ◽  
Risk Exposure ◽  
Content Type ◽  
Upper Management ◽  
Positive Effects ◽  
External Monitoring ◽  
The Stability ◽  
The Impact

Purpose The purpose of this paper is to analyze the impact of financial penalties on the stability of the banking sector. Design/methodology/approach A unique database of 671 financial penalties imposed on 68 international listed banks between 2007 and 2014 and a fixed-effects panel data approach were used. Findings The results show that financial penalties increase banks’ systemic risk exposure but do not significantly affect banks’ contribution to systemic risk. Additionally, the link between financial penalties and systemic risk exposure is weaker in regulatory and supervisory systems with more prompt corrective power among national authorities. By contrast, supervisory authorities’ stronger power to declare insolvency and a greater external monitoring culture exacerbate the positive effects of financial penalties on systemic risk exposure. Practical implications The punishment of misconduct should correct the social harm and prevent future misconduct while ensuring the banking system’s stability. Therefore, authorities should punish misconduct by implementing penalties against the financial institutions at a specific amount that offsets the damages of misconduct but does not threaten systemic stability. Penalties against institutions may be complemented by financial penalties against upper management to induce a more responsible culture in banks. Originality/value This paper is the first to study the effect of financial penalties on the stability of the financial system. The results contribute to the ongoing debate on the appropriateness of financial penalties and address the question of whether bank regulators reduce or contribute to banks’ systemic risk.

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