Bank market power and firm creation: a multi-country analysis

2016 ◽  
Vol 23 (2) ◽  
pp. 562-589 ◽  
Author(s):  
Mariarosaria Agostino ◽  
Francesco Trivieri
Keyword(s):  
Empirical Evidence ◽  
Market Power ◽  
Market Competition ◽  
International Perspective ◽  
Large Set ◽  
Banking Competition ◽  
Content Type ◽  
Firm Creation ◽  
The Relationship

Purpose – The purpose of this paper is to investigate the relationship between bank market power and firm creation, which represents a debated issue in the economic literature, still lacking empirical evidence. Design/methodology/approach – The analysis is carried out by taking an international perspective, using different measures of banking competition, and controlling for a large set of determinants suggested by the variegate literature on firms’ birth drivers. Findings – The main finding suggests that credit market competition may benefit firms’ creation, as the relationship between the latter and bank market power – when statistically significant – appears to be negative. In addition, the detrimental impact of market power appears greater (in absolute terms) when departing from higher levels of banking competition. Research limitations/implications – The empirical evidence seems supporting the competitive position in the debate on the role of banking competition. Furthermore, the authors reckon that the findings reinforce the belief of a crucial role played by the availability of funds for nascent firms, with evident implications for the policy strategies more appropriate to foster entrepreneurship. The “fashion” followed by several countries of lowering administrative entry barriers (van Stel et al., 2007) needs to be reappraised, pondering also means to enrich resources availability. Originality/value – To the best of the knowledge, the paper is the first one addressing the issue of the role of bank market structure on firms’ creation in a multi-country setting.

scholarly journals Winery website loyalty: the role of sales promotion and service attributes

2018 ◽  
Vol 30 (2) ◽  
pp. 138-152 ◽  
Author(s):  
Jean-Eric Pelet ◽  
Benoît Lecat ◽  
Jashim Khan ◽  
Sharyn Rundle-Thiele ◽  
Linda W. Lee ◽  
...  
Keyword(s):  
South Africa ◽  
Mobile Phones ◽  
International Perspective ◽  
Sales Promotion ◽  
Content Type ◽  
Mediating Role ◽  
Probability Criterion ◽  
The Relationship ◽  
Purposive Sample

Purpose This paper aims to examine the relationship between feelings toward buying wine on mobile phones and m-commerce website loyalty by examining the mediating role of sales promotion and the moderating role of service attributes of the m-commerce websites in influencing the mediation. Design/methodology/approach A total of 3,318 completed surveys were collected. Drawing on a large non-probability criterion-based purposive sample across six countries (France, Germany, Greece, South Africa, USA and Canada), mediation analysis was performed to examine the hypothesized relationships. Findings Results show that sales promotion mediates the relationship between feelings toward buying wine on mobile phones and m-commerce website loyalty. Moderated mediation reveals that the indirect pathways (sales promotion) through which feelings toward buying wine over mobile exert its effect on m-commerce website loyalty are dependent on the value of service (wine delivery) attributes of the website. The results demonstrate that sales promotion and service are of paramount importance to wineries and wine marketers. Research limitations/implications Wine producers and retailers should consider the use of sales promotion to enhance sales and loyalty to m-commerce websites. Practical implications Wine producers and retailers should consider use sales promotion (such as SMS or push notifications) to enhance sales and influence consumer feelings and hence their loyalty. Originality/value Wine m-commerce studies are limited, especially with an international perspective comparing six different countries: three from the old world (France, Germany and Greece) and three from the new world (North America with USA and Canada; and South Africa). Altogether, these six countries represent around 40 per cent of the world’s wine consumption.

Competition and exposure of returns to the C-CAPM

2018 ◽  
Vol 35 (4) ◽  
pp. 525-541
Author(s):  
Hussein Abdoh ◽  
Oscar Varela
Keyword(s):  
Market Competition ◽  
Systematic Risk ◽  
Product Market ◽  
Product Market Competition ◽  
Content Type ◽  
Capm Beta ◽  
The Relationship ◽  
Consumption Fluctuations ◽  
Tariff Reductions

Purpose This study aims to investigate the effect of product market competition on the exposure of firms’ returns to consumption fluctuations (C-CAPM beta). Design/methodology/approach The C-CAPM beta comes from a regression of a stock’s returns against consumption growth, with controls for the Fama–French three factors and momentum. The Herfindahl–Hirschman index of concentration measures competition, with other measures like deregulation and tariff reductions used for robustness tests. Industries are categorized using different SIC digits, with the NAICS measure used for robustness tests. The C-CAPM beta is regressed to competition, with appropriate control variables, to find its relationship. Findings Higher levels of competition reduces the C-CAPM beta. The results are consistently robust to different measures of product market competition and industry identification. Practical implications Product market competition influences the sensitivity of systematic risk, as measured by the C-CAPM beta, to consumption, such that higher levels of competition reduce systematic risk. Originality/value This research contributes to a literature that admittedly is still murky, as the relationship between competition and systematic risk is still unsettled. No study (to the authors’ knowledge) examines the effect of competition on firms’ exposure to consumption. This research adds to the literature on the role of competition in risk, specifically with respect to consumption.

Capital structure, competitive intensity and firm performance: an analysis of Indian pharmaceutical companies

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Neeti Mathur ◽  
Satish Chandra Tiwari ◽  
T. Sita Ramaiah ◽  
Himanshu Mathur
Keyword(s):  
Firm Performance ◽  
Capital Structure ◽  
Financial Performance ◽  
Market Competition ◽  
Competitive Intensity ◽  
Content Type ◽  
Relationship Of ◽  
The Relationship ◽  
Moderating Role

PurposeThis research paper aims to explore the relationship of financial performance and capital structure of Indian pharma firms of BSE 500, the impact of research and development (R&D) expenditure on financial performance and also explore the moderating role of competitive intensity between the existing relationship of capital structure and firm performance.Design/methodology/approachThe balanced panel data of listed pharma firms of BSE 500 are used for the research study, and the present study adopts both the panel and ordinary least square (OLS) estimation techniques to draw the results.FindingsThe results exhibit that the high debt ratio is harmful for the accounting performance of the selected sample of pharma firms of BSE 500. Besides, market competition negatively moderates the relationship between capital structure and firm performance.Research limitations/implicationsThe research findings provide evidence for the policymakers/regulators that the sample firms should discourage the high debt financing in the presence of competitive intensity in the product marketplace.Originality/valueThe core contribution of the current research is to examine impact of R&D expenditure on financial performance and the moderating role of market competition on the relationship of capital structure and firm performance to the best of the authors' knowledge, and no single study has previously explored this relationship in the context of BSE 500 pharma firms.

Product market competition, market munificence and firms’ unethical behavior

2019 ◽  
Vol 13 (2) ◽  
pp. 468-488 ◽  
Author(s):  
Jingbo Yuan ◽  
Zhimin Zhou ◽  
Nan Zhou ◽  
Ge Zhan
Keyword(s):  
Market Power ◽  
Unethical Behavior ◽  
Market Competition ◽  
Product Market ◽  
Market Concentration ◽  
Product Market Competition ◽  
Short Term ◽  
Content Type ◽  
The Impact ◽  
The Relationship

Purpose This paper aims to examine the effect of product market competition on firms’ unethical behavior (FUB) in the Chinese insurance industry and to further explore the boundary conditions of the main effects. On the basis of China’s commercial foundation, the study constructs a conceptual framework of FUB by drawing from the perspective of horizontal competition. Design/methodology/approach Data were collected from 52 property insurance firms at the branch level observed over the six-year period, 2011-2016. Within this framework, market power and market concentration were used to describe product market competition at firm and industry levels, respectively. The moderating effect of market munificence was analyzed to reveal the theoretical boundaries of the main effect. By drawing upon cost–benefit analysis and social network theory, the study used negative binomial model and Poisson model to quantitatively examine the relationship. Findings The relationship between product market competition and FUB is curvilinear. Especially at the firm level, market power exhibits a U-shape relationship with FUB; at the industry level, market concentration exhibits a U-shape relationship with FUB. In addition, market munificence positively moderates the impact of firm’s market power on FUB, whereas, market munificence negatively moderates the impact of industrial market concentration on FUB. Research limitations/implications This paper explored a new type of unethical behavior that concerns consumers or the third party by emphasizing horizontal competitive contexts; it also provides a better understanding of the FUB–financial performance relationship from the perspective of competition. The moderating effects suggest that when the cause of FUB is different (market power vs market concentration), firms may make opposite ethical choice. However, the sample is from a single industry; it will be fruitful to further verify these findings in other industries such as the manufacturing sector. Moreover, the definition of FUB is confined to explicit forms such as participation or collusion but there is no way to measure the implicit forms of FUB. Practical implications First, the governance of FUB should not only focus on the firms themselves, but also take into account the industrial market structure. Second, proper use of governance measures for FUB can increase firms’ benefits from “compliance with the law”, enticing firms to decrease FUB. The third, firms with weak market positions, facing fierce competition, should not be involved in FUB for short-term benefit; indeed, a low-cost strategy can be adopted as the dominant competitive strategy. While, in cases of highly concentrated market structure, firms should strive to avoid involvement in FUB through collusion with other rivals. Social implications As it is a very common phenomenon that firms in competitive relationships may adopt FUB toward third parties or consumers, this trend has become a hot topic in the economic and social development in China. The study’s conclusions reveal that a more proactive and ambitious ethical decision is desirable for all kinds of firms; moreover, firms should make a rational choice between “short-term interest” and “long-term survival”. When firms identify the compliance of business ethics as an opportunity to differentiate themselves and perceive the benefits of decreasing FUB as outweighing the costs, the level of FUB will be inhibited, and social welfare will increase. Originality/value The primary contribution of this research resides in identifying product market competition as a previously unexplored predictor of FUB, thus revealing the dark side of product market competition. In addition, nonlinear relationships between product market competition and FUB indicate that situations of competition exert an important influence on FUB both at the firm and industry level. This paper’s conclusion provides a more meticulous theoretical explanation for FUB. This research demonstrates that the traditional ethical framework is not sufficient to explain FUB in a horizontal competitive context. Indeed, resource constraints and competitive pressures should also be considered.

Mediating role of organizational learning on the relationship between market orientation and innovativeness

2016 ◽  
Vol 23 (5) ◽  
pp. 370-384 ◽  
Author(s):  
Rahul Raj ◽  
Kailash B.L. Srivastava
Keyword(s):  
Organizational Learning ◽  
Empirical Evidence ◽  
Market Orientation ◽  
Business Environment ◽  
Equation Modeling ◽  
External Information ◽  
Content Type ◽  
Mediating Role ◽  
The Relationship

Purpose This paper has three purposes – first, to establish the direction of relationship between market orientation (MO) and organizational learning (OL); second, to assess the effect of MO and OL on organizational innovativeness (OI); and third, to examine the mediating role of OL on the relationship between MO and innovativeness. Design/methodology/approach This research was carried out with a sample size of 321 respondents from Indian private and government/public sector industries, applying structural equation modeling (maximum likelihood estimation technique) using AMOS 16. To check the mediation, the study adopts the method suggested by Baron and Kenny (1986). Findings The study finds that MO acts as an antecedent to OL, and the direct effect of both the variables on innovativeness is positive. The study also exhibits that though OL plays a role of mediator between MO and innovativeness, yet the mediation is partial. However, the study also demonstrates the dominance of OL over MO to improve OI. Research limitations/implications The study is survey-based, where self-reporting bias can occur. The study considers the cross-sectional data only, whereas OL is a dynamic process which constrains the ability to make causal relations. Therefore, to firmly show relationships, the use of longitudinal study is necessary. Moreover, the study mainly includes Indian organizations. The diverse sample from different multi-national companies could lead to a better understanding of the model. Practical implications The study suggests that organizations need an inclination toward market information to improve their innovativeness in changing the business environment. The innovativeness of the organization can be improved further with the introduction of proper organizational learning processes which includes both adaptive and generative learning. The partial mediation of OL suggests that firms have several other ways to improve innovativeness; however, learning offers opportunity to process the external information adequately that can be combined with other resources to enhance innovativeness. Originality/value The study contributes to the literature in three ways. First, it addresses a gap in literature by responding to issues regarding the direction of relationship between MO and OL. It also provides empirical evidence that MO precedes OL. Second, it bridges the gap between MO and innovativeness literature by providing empirical evidence. Third, it also demonstrates the possible mediating role of OL between MO and innovativeness.

Implications of strategic flexibility in small firms: the moderating role of absorptive capacity

2019 ◽  
Vol 8 (3) ◽  
pp. 370-386 ◽  
Author(s):  
Sanjay Chaudhary
Keyword(s):  
Firm Performance ◽  
Empirical Evidence ◽  
Absorptive Capacity ◽  
Entrepreneurial Orientation ◽  
Small Firms ◽  
Dynamic Capabilities ◽  
Strategic Flexibility ◽  
Content Type ◽  
The Relationship

Purpose Guided by the theory of dynamic capabilities and the knowledge-based view of an organization, the purpose of this paper is to examine the crucial role played by entrepreneurial orientation and absorptive capacity in the relationship between strategic flexibility and firm performance, with a specific focus on small firms. Design/methodology/approach The study uses survey data collected from owners of 272 small businesses in India and follows the linear regression method to establish the link between strategic flexibility and firm performance. It hypothesizes that the strategic flexibility of a small firm impacts entrepreneurial orientation, and subsequently its performance, while absorptive capacity further enhances this relationship. Findings The conclusions drawn from the study provide empirical evidence on the mediating role of entrepreneurial orientation in the relationship between strategic flexibility and firm performance. The findings also point out that the potential absorptive capacity of a firm strengthens the relationship between its strategic flexibility and entrepreneurial orientation. Research limitations/implications The empirical findings of the study are limited to small firms from the automotive service industry. Practical implications The study contributes to the existing knowledge on managerial practice by pointing out the importance of strategic flexibility as a dynamic capability and illustrating its impact in the case of a small firm’s performance. Originality/value As yet, there is a dearth of empirical evidence derived from large samples of small firms. The study supplements available literature on dynamic capabilities and knowledge management.

Role of burnout on job level, job satisfaction, and task performance

2017 ◽  
Vol 38 (5) ◽  
pp. 630-645 ◽  
Author(s):  
Won Ho Kim ◽  
Young-An Ra ◽  
Jong Gyu Park ◽  
Bora Kwon
Keyword(s):  
Job Satisfaction ◽  
Task Performance ◽  
Organizational Context ◽  
Content Type ◽  
Job Level ◽  
Mediating Role ◽  
Final Sample ◽  
The Relationship ◽  
And Task

Purpose The purpose of this paper is to examine the mediating role of burnout (i.e. exhaustion, cynicism, professional inefficacy) in the relationship between job level and job satisfaction as well as between job level and task performance. Design/methodology/approach The final sample included 342 Korean workers from selected companies. The authors employed the Hayes (2013) PROCESS tool for analyzing the data. Findings The results showed that all three subscales of burnout (i.e. exhaustion, cynicism, professional inefficacy) mediate the relationship between job level and job satisfaction. However, only two mediators (i.e. cynicism, professional inefficacy) indicated the mediating effects on the association between job level and task performance. Originality/value This research presented the role of burnout on the relationships between job level, job satisfaction, and task performance especially in South Korean organizational context. In addition to role of burnout, findings should prove helpful in improving job satisfaction and task performance. The authors provide implications and limitations of the findings.

Impact of perceived corporate social responsibility on attitudes and behaviors of pharmacists working in MNCs

Humanomics ◽  
2017 ◽  
Vol 33 (4) ◽  
pp. 453-469 ◽  
Author(s):  
Muhammad Khaleel ◽  
Shankar Chelliah ◽  
Sana Rauf ◽  
Muhammad Jamil
Keyword(s):  
Corporate Social Responsibility ◽  
Organizational Commitment ◽  
Supervisory Support ◽  
Content Type ◽  
Attitudes And Behaviors ◽  
Perceived Supervisory Support ◽  
And Behaviors ◽  
Corporate Social ◽  
The Relationship

Purpose This study aims to find out how corporate social responsibility (CSR) initiatives are perceived by pharmacists and how it influences employees’ organizational commitment and organizational citizenship behavior (OCB) and role of perceived supervisor support in the study. Design/methodology/approach Pharmacists of different hierarchical levels from five multinational pharmaceutical industries in Pakistan were selected as study samples. Data were collected from 136 pharmacists working in Punjab Region. PLS-SEM was used to test the hypotheses. Findings The results from this study found that CSR was a predictor of affective organizational commitment (AOC) and OCB. AOC fully mediates the relationship between CSR and OCB. While perceived supervisory support did not moderate the relationship between AOC and OCB. Pharmaceutical firms can promote commitment toward organization and OCBs by initiating CSR activities. Research limitations/implications This research is one of the innovative studies that empirically examine the predicting role of CSR and moderating role of perceived supervisory support on employees’ attitude and behaviors in the pharmaceutical companies’ context. Moreover, this research will also help the management by adopting CSR activities as core element in shaping employees attitudes and behaviors. Originality/value It is a significant study shifting the focus of research into organizational behavior context and further influences employee’s attitudes and behavior because of perceived CSR in the pharmacy industry.

Overconfidence of vocational education students when entering higher education

2015 ◽  
Vol 57 (4) ◽  
pp. 429-447 ◽  
Author(s):  
Mark P. Bowden ◽  
Subhash Abhayawansa ◽  
John Bahtsevanoglou
Keyword(s):  
Higher Education ◽  
Self Efficacy ◽  
Further Education ◽  
Small Sample ◽  
First Year ◽  
Education Students ◽  
Content Type ◽  
The Relationship ◽  
Practical Implications

Purpose – There is evidence that students who attend Technical and Further Education (TAFE) prior to entering higher education underperform in their first year of study. The purpose of this paper is to examine the role of self-efficacy in understanding the performance of students who completed TAFE in the previous year in a first year subject of microeconomics in a dual sector university in Melbourne, Australia. Design/methodology/approach – The study utilises data collected by surveys of 151 students. Findings – A student’s self-efficacy is positively associated with their marks in a first year subject of microeconomics. However, the relationship between final marks and self-efficacy is negative for those students who attended TAFE in the previous year suggesting that they suffer from the problem of overconfidence. When holding self-efficacy constant, using econometric techniques, TAFE attendance is found to be positively related to final marks. Research limitations/implications – The findings are exploratory (based on a small sample) and lead to a need to conduct cross institutional studies. Practical implications – The research points to the need for early interventions so that TAFE students perform well in their first year of higher education. It also points to potential issues in the development of Victorian Certificate of Applied Learning (VCAL) programs. Originality/value – To the best of the authors’ knowledge, this is the first paper to examine the inter-related impact of attendance at TAFE in the previous year and self-efficacy on the subsequent academic performance of TAFE students.

Managing different forms of distances in Dutch healthcare organizations

2015 ◽  
Vol 29 (7) ◽  
pp. 1080-1097
Author(s):  
Annemiek Stoopendaal
Keyword(s):  
Design Methodology ◽  
Healthcare Organization ◽  
Ethnographic Study ◽  
Healthcare Organizations ◽  
Content Type ◽  
Daily Work ◽  
Healthcare Executives ◽  
Governance Practices ◽  
The Relationship

Purpose – Dichotomous “gap” thinking about professionals and managers has important limits. The purpose of this paper is to study the specific ontology of “the gap” in which different forms of distances are defined. Design/methodology/approach – In order to deepen the knowledge of the actual day-to-day tasks of Dutch healthcare executives an ethnographic study of the daily work of Dutch healthcare executives and an ontological exploration of the concept “gap” was provided. The study empirically investigates the meaning given to the concept of “distance” in healthcare governance practices. Findings – The study reveals that healthcare executives have to fulfil a dual role of maintaining distance and creating proximity. Coping with different forms of distances seems to be an integral part of their work. They make use of four potential mechanisms to cope with distance in their healthcare organization practices. Originality/value – The relationship between managers and professionals is often defined as a dichotomous gap. The findings in this research suggest a more dynamic picture of the relationship between managers and professionals than is currently present in literature. This study moves “beyond” the gap and investigates processes of distancing in-depth.

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