scholarly journals Institutional incentives and pressures in Chinese manufacturing firms’ innovation

2019 ◽  
Vol 58 (5) ◽  
pp. 812-827
Author(s):  
Yongli Tang ◽  
Xinyue Hu ◽  
Claudio Petti ◽  
Matthias Thürer
Keyword(s):  
Systems Approach ◽  
Interaction Effects ◽  
Manufacturing Firms ◽  
Pressure Effects ◽  
Institutional Pressures ◽  
Policy Makers ◽  
Content Type ◽  
Institutional Incentives ◽  
Institutional Forces ◽  
Innovation Policies

Purpose The purpose of this paper is to investigate how Chinese firms’ innovation is related to their perceived incentives and pressures from the transitioning institutional environment. Design/methodology/approach A sample of 166 manufacturing firms located in Guangdong Province (China) is analyzed using binomial and moderated multiple regression models. Findings The results show that institutional incentives are more effective in promoting incremental innovations than radical ones, whereas institutional pressures are more pronounced in facilitating radical innovations than incremental ones. In addition, the interaction between the two divergent institutional forces is negatively related to innovation performance. Practical implications The findings inform managers and policy makers in institutional transition environments to consider and balance the effects of institutional forces. Firms should match the institutional incentives and pressures with their own innovation objectives in terms of incremental or radical goals, and take caution to deal with the divergent institutional directions, so as to avoid the negative interaction effects. Policy makers should take a systems approach when considering the incentive-based and/or command-and-control designs of innovation policies and regulations. Originality/value The study contributes to existing literature on institutions and innovation by disentangling incentive and pressure effects of institutions, regulation and innovation policies, as well as the combined and interaction effects intrinsic within institutional mixes.

Green purchasing capabilities, practices and institutional pressure

2019 ◽  
Vol 30 (5) ◽  
pp. 1171-1189 ◽  
Author(s):  
Meow Yee Foo ◽  
Kanagi Kanapathy ◽  
Suhaiza Zailani ◽  
Mohd Rizaimy Shaharudin
Keyword(s):  
Green Manufacturing ◽  
Iso 14001 ◽  
Survey Method ◽  
Successful Implementation ◽  
Institutional Pressures ◽  
Policy Makers ◽  
Content Type ◽  
Positive Effects ◽  
Institutional Pressure ◽  
Green Purchasing

Purpose The purpose of this paper is to ascertain the green-purchasing capabilities required to ensure the successful implementation of green-purchasing practices under the forces of institutional pressure. Specifically, this paper explores the green-purchasing capabilities of buyer firms under the influence of institutional pressures in supplier selection, development, collaboration and evaluation in support of environmental purchasing. Design/methodology/approach Questionnaire survey method was used to gather data from 163 ISO 14001-certified manufacturing firms in Malaysia. Partial least squares was used for hypotheses testing. Findings Green-purchasing capabilities, such as manufacturing, financial, intraorganisational and integration capabilities, have a significant positive effects on green-purchasing practices. However, innovation capabilities have no significant effect on green-purchasing practices. Regulation, customer and competitor pressure positively moderate the relationships between green manufacturing capabilities and practices. Practical implications The paper highlights the importance of green-purchasing capabilities in enhancing the green-purchasing practices of firms. The findings that pertain to moderating effect could be used to assist policy makers, particularly in setting appropriate policies and strategies to improve green purchasing. Originality/value Although more studies on green purchasing have been conducted in recent years, issues, such as the effect of green-purchasing capabilities on green-purchasing practices, are still unspecified. Besides, this study considers institutional pressure as the moderator when a model is constructed to exemplify the relationship between green-purchasing capabilities and practices.

scholarly journals Why do firms invest in accounts receivable? An empirical investigation of the Malaysian manufacturing sector

2018 ◽  
Vol 8 (2) ◽  
pp. 166-184 ◽  
Author(s):  
Salima Yassia Paul ◽  
Cherif Guermat ◽  
Susela Devi
Keyword(s):  
Trade Credit ◽  
Manufacturing Sector ◽  
Manufacturing Firms ◽  
Sales Growth ◽  
Short Term ◽  
Policy Makers ◽  
Content Type ◽  
Accounts Receivable ◽  
Developed Economies ◽  
Gross Margins

Purpose The purpose of this paper is to investigate the factors that influence Malaysian manufacturing sector investment in accounts receivable (AR), an asset seen by many as one of the riskiest in any company’s balance sheet. Design/methodology/approach The authors test several theories, related to AR, using a cross-section of 262 listed manufacturing firms over a period of five years (2007-2011). Both fixed and random effect approaches are adopted to deal with potential heterogeneity across firms. Findings The results show that investment in AR in Malaysia are influenced by firm size, short-term finance, sales growth and collateral. Profit, liquidity and gross margins have no role in affecting the decision of trade credit granting to customers. The results are inconsistent with previous studies. Size and short-term finance have a negative, rather than positive, impact. Liquidity and gross margins have no, rather than positive, effect. While profit and sales growth are predicted to feature a U-shaped relationship with investment in AR, the former is insignificant while the latter is strictly increasing. The only factor found to be consistent with prior studies is collateral. Research limitations/implications The results have two principal implications. First, policy makers should not take a holistic view of the trade credit market. Given that policy makers aim to improve liquidity and trade, they should design policies that are not only country specific but also sector specific. As is clear from our results, what holds for other countries or sectors may not necessarily be true for the Malaysian manufacturing sector. This has important implications for policy makers in emerging economies. Practical implications Investment in AR, in the Malaysian manufacturing sector, is impacted by many of the factors implied by either theory or empirical evidence. However, the main finding in this paper is that the Malaysian manufacturing sector is rather different. First, while liquidity and gross margin have been found to have a positive and significant effect on AR helping hand theory in prior studies, the results show that these two factors play no role in influencing the level of AR in the Malaysian manufacturing sector. Social implications Unlike the experience in developed economies, firms in our sample that have access to short-term finance are less likely to grant trade credit. This suggests that the helping hand theory does not hold as far as the Malaysian manufacturing firms are concerned: firm that have better access to short-term finance in Malaysia do not use trade credit to pass on the benefit to their customers by granting them trade credit. Originality/value It is unclear why firms invest in AR given the high risks of uncollectability as well as tedious, time-consuming and costly legal process for debt recovery compared to firms from more developed economies. This paper examines the reasons business-to-business lending, through AR, is widespread in Malaysia and investigates the factors that affect this decision despite the risk involved. To our knowledge, this is the first study to date that looks at the factors that influence AR level in the Malaysian manufacturing sector.

Understanding establishment mode choice of foreign manufacturing firms in Ghana

2015 ◽  
Vol 10 (4) ◽  
pp. 896-920 ◽  
Author(s):  
Samuel Ato Dadzie ◽  
Richard Afriyie Owusu
Keyword(s):  
Developing Countries ◽  
Multinational Enterprises ◽  
Cultural Distance ◽  
Manufacturing Firms ◽  
Market Size ◽  
Quantitative Methodology ◽  
Policy Makers ◽  
Content Type ◽  
Establishment Mode ◽  
Practical Implications

Purpose – The purpose of this paper is to analyse the foreign direct investment (FDI) strategies of manufacturing firms in Ghana using the eclectic model in order to understand how ownership, location and internalization factors impact FDI to developing countries like Ghana. Design/methodology/approach – The authors use a quantitative methodology in order to statistically explore the relationships between dependent and independent variables. The data comes from a sample of 75 multinational enterprises that invested in the manufacturing sector between 1994 and 2008. Findings – The results reveal that large firm size, extensive international experience and large market size lead to the choice of acquisition mode of entry, while high cultural distance, high country risk, high proprietary assets and incentives lead to the choice of greenfield mode in the context of Ghana. Research limitations/implications – The results imply that the different economic, business and legal (locational) conditions of developing countries create different FDI strategies and paths of companies compared to developed markets. Practical implications – Policy makers in developing countries should make efforts to improve market size, the institutional and regulatory environment, as well as the availability of human capital in order to attract FDI. Originality/value – FDI studies have mainly analysed establishment mode strategies of firms in advanced markets. There is an increasing amount of research on FDI in emerging markets but very little on developing countries and African markets. Therefore, this study enables the authors to develop implications for existing theory and generate practical implications for firms and policy makers related to African and developing country markets.

Interaction and higher order effects of factors affecting the performance of microfinancing institutions

2017 ◽  
Vol 44 (7) ◽  
pp. 900-920 ◽  
Author(s):  
Gemunu Nanayakkara
Keyword(s):  
Interaction Effects ◽  
Operational Efficiency ◽  
Higher Order ◽  
Order Effects ◽  
Policy Makers ◽  
Content Type ◽  
Factors Affecting ◽  
Female Literacy ◽  
Relationship Of ◽  
Higher Order Effects

Purpose The purpose of this paper is to find the factors that affect the “performance” of microfinancing institutions (MFIs) around the world and to further analyse the interaction and higher order effects of these factors on the performance. Although MFIs can have various objectives from a commercial focus to a social focus when performing their operations, this study analyses the factors that contribute to “performance” of MFIs in relation to their ability to “alleviate poverty in a sustainable manner”. Design/methodology/approach Based on the data relating to 234 MFIs across 63 countries, this study analyses eight factors that can affect performance of MFIs (as defined in this study) and their higher order and interaction effects using multiple regression models. Findings The results show that gender (female), literacy level of the borrowers, operational efficiency, offering only loans (not diversifying), age and emphasis on profitability have a significant effect on the performance. Analysis of higher order effects shows that the relationship of age with performance is a downward concave curve and that with operational efficiency is an upward concave curve. The interaction effects of gender and literacy, age and emphasis on female borrowers, and also age and emphasis on profitability were found to be significant.k Originality/value The findings contribute to understanding the factors that affect the performance of MFIs to alleviate poverty in a sustainable manner and help the policy makers and managers of MFIs to improve their performance in this area. Considering the hundreds of millions of dollars injected into microfinancing, improvement in performance as a result of these findings can lead to savings in millions of dollars.

Institutional judo: how entrepreneurs use institutional forces to create change

2015 ◽  
Vol 28 (6) ◽  
pp. 1076-1093 ◽  
Author(s):  
Hans Hansen ◽  
Angela Randolph ◽  
Shawna Chen ◽  
Robert E. Robinson ◽  
Alejandra Marin ◽  
...  
Keyword(s):  
New York ◽  
Institutional Theory ◽  
Stock Exchange ◽  
Single Case ◽  
Institutional Pressures ◽  
Content Type ◽  
Martial Art ◽  
York Stock Exchange ◽  
Institutional Forces

Purpose – The purpose of this paper is to examine an entrepreneur’s attempt to gain legitimacy and change institutions in a multiple institutions setting. Design/methodology/approach – The authors conducted a qualitative case study to track an entrepreneur’s efforts to create a new financial instrument and get it accepted and traded on the New York Stock Exchange. Findings – The authors introduce the concept of institutional judo, analogous to the martial art where a fighter uses his opponent’s forces against him. While institutional theory has focussed on how institutional pressures force actors to conform, the term judo refers to an actor using institutional pressures to their advantage in changing those very institutions. Research limitations/implications – This qualitative research involves a single case study, but is most suited to revealing extensions of theory and subtle processes. Practical implications – The approach allowed the authors to provide a nuanced look at the actual change efforts by an entrepreneur to gain legitimacy. Social implications – This study provides a nuanced look at actual attempts to change institutions. Originality/value – Institutional judo offers a new change mechanism within institutional theory.

Supply chain capabilities and competitiveness of high-tech manufacturing start-ups in India

2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Debabrata Ghosh ◽  
Peeyush Mehta ◽  
Balram Avittathur
Keyword(s):  
Supply Chain ◽  
Emerging Economies ◽  
Manufacturing Sector ◽  
Manufacturing Firms ◽  
High Tech ◽  
Structured Interviews ◽  
Policy Makers ◽  
Content Type ◽  
Quality Material ◽  
Start Ups

Purpose The purpose of this paper is to understand the practices and policies unique to high-tech manufacturing start-ups in emerging economies, such as India. The study analyzes the main features and challenges of the high-tech manufacturing sector, and the way in which enabling environment including policy making, supply chain capability and related technologies through Industry 4.0 could be leveraged to foster growth. Design/methodology/approach The paper undertakes an exploratory approach through in-depth semi-structured interviews conducted with high-tech manufacturing firms in various stages of their growth. The paper provides evidence of the challenges that high-tech manufacturing firms face in India, the strategies they adopt and highlights the role of institutional structures and policies. Findings Findings show that high-tech manufacturing start-ups in India face various challenges in the upstream, production and downstream supply chain processes. Further, issues related to availability of quality material, quality suppliers, contracts, funding and access to markets remain. Results also show that enabling operational and financial levers could be created by policy makers and other stakeholders to help the high-tech manufacturing start-ups scale faster and create value. Originality/value This paper contributes to the R&D intensive industry and high-tech manufacturing literature in the context of emerging economies, such as India, and provides a rigorous overview of the start-up ecosystem in high-tech manufacturing.

How perceived institutional pressures impact market orientation

2015 ◽  
Vol 27 (2) ◽  
pp. 267-293 ◽  
Author(s):  
Jing Zhang ◽  
Yanxin Jiang ◽  
Rizwan Shabbir ◽  
Yanling Duan
Keyword(s):  
Market Orientation ◽  
Large Scale ◽  
Driving Forces ◽  
Mainland China ◽  
Manufacturing Firms ◽  
Strategic Partnership ◽  
Institutional Pressures ◽  
Content Type ◽  
Managerial Implications ◽  
The Impact

Purpose – Literature has not paid enough attention to the antecedents of market orientation in the context of transitional economy and many authors focus on internal antecedent factors which could be controlled by the organizations. To address the research gaps, the purpose of this paper is to examine the impact of institutional pressures upon market orientation implementation in mainland China. Design/methodology/approach – Based on multiple case studies of four large B2B manufacturing firms, this paper presents a conceptual framework incorporating three kinds of institutional antecedents of market orientation. Then the developed framework is empirically tested and the impacts of antecedent factors are compared by a fully structured questionnaire survey of 235 Chinese manufacturing firms. Findings – The research findings indicate that during the market-oriented organizational change, normative and mimetic institutional pressures are important driving forces. In addition, the significant institutional antecedent factors are pressures arising from strategic partnership, system certification requirements, industry benchmarking, management consultation and intensive competition. Originality/value – This research is first of its kind as it probes into institutional antecedents of market orientation among Chinese firms by combining cross-case study and large-scale survey. It contributes greatly to the literature of market orientation and institutional theory, and also provides relevant managerial implications for firms as to how to improve market-orientation degree.

The role of institutional pressures and top management support in the intention to adopt cloud computing solutions

2015 ◽  
Vol 28 (4) ◽  
pp. 579-594 ◽  
Author(s):  
Ogan M. Yigitbasioglu
Keyword(s):  
Cloud Computing ◽  
Empirical Literature ◽  
Top Management ◽  
Institutional Pressures ◽  
Management Support ◽  
Content Type ◽  
Cloud Computing Adoption ◽  
Institutional Forces ◽  
Local Actors

Purpose – While many studies have predominantly looked at the benefits and risks of cloud computing, little is known whether and to what extent institutional forces play a role in cloud computing adoption. The purpose of this paper is to explore the role of institutional factors in top management team’s (TMT’s) decision to adopt cloud computing services. Design/methodology/approach – A model is developed and tested with data from an Australian survey using the partial least squares modeling technique. Findings – The results suggest that mimetic and coercive pressures influence TMT’s beliefs in the benefits of cloud computing. The results also show that TMT’s beliefs drive TMT’s participation, which in turn affects the intention to increase the adoption of cloud computing solutions. Research limitations/implications – Future studies could incorporate the influences of local actors who might also press for innovation. Practical implications – Given the influence of institutional forces and the plethora of cloud-based solutions on the market, it is recommended that TMTs exercise a high degree of caution when deciding for the types of applications to be outsourced as organizational requirements in terms of performance and security will differ. Originality/value – The paper contributes to the growing empirical literature on cloud computing adoption and offers the institutional framework as an alternative lens with which to interpret cloud-based information technology outsourcing.

Financial access and economic development: the moderating role of financial consumer protection

2019 ◽  
Vol 15 (4) ◽  
pp. 406-424 ◽  
Author(s):  
Maryam Kriese ◽  
Joshua Yindenaba Abor ◽  
Elikplimi Agbloyor
Keyword(s):  
Economic Development ◽  
World Bank ◽  
Financial Literacy ◽  
Compliance Monitoring ◽  
Financial Access ◽  
Policy Makers ◽  
Content Type ◽  
The World Bank ◽  
Moderating Role

Purpose The purpose of this paper is to examine the moderating role of financial consumer protection (FCP) in the access–development nexus. Design/methodology/approach The study is based on cross-country data on 102 countries surveyed in the World Bank Global Survey on FCP and Financial Literacy (2013). The White heteroscedasticity adjusted regressions and Two-stage least squares regressions (2SLS) are used for the estimation. Findings Interactions between FCP regulations that foster fair treatment, disclosure, dispute resolution and recourse and financial access have positive net effects on economic development. However, there is no sufficient evidence to suggest that interactions between financial access and enforcement and compliance monitoring regulations have a significant effect on economic development. Practical implications First, policy makers should continue with efforts aimed at instituting FCP regimes as part of strategies aimed at broadening access to financial services for enhanced economic development. Second, instituting FCP regimes per se may not be enough. Policy makers need to consider possible intervening factors such as the provision of adequate resources and supervisory authority, for compliance monitoring and enforcement to achieve the expected positive effect on economic development. Originality/value This study extends evidence in the law–finance–growth literature by providing empirical evidence on the effect of legal institution specific to the protection of retail financial consumers on the access–development nexus using a nouvel data set, the World Bank Global survey on FCP and Financial Literacy (2013).

Can housing rights be applied to modern housing systems?

2010 ◽  
Vol 2 (2) ◽  
pp. 103-117 ◽  
Author(s):  
Padraic Kenna
Keyword(s):  
International Law ◽  
Case Law ◽  
Epistemic Communities ◽  
Policy Makers ◽  
Content Type ◽  
Housing Systems ◽  
Effective Implementation ◽  
Housing Rights ◽  
The World ◽  
Effective Translation

PurposeThe purpose of this paper is to outline and examine the growing corpus of housing rights and assess their relevance and applicability to complex contemporary housing systems across the world.Design/methodology/approachThe paper sets out the principal instruments and commentaries on housing rights developed by the United Nations, regional and other bodies. It assesses their relevance in the context of contemporary analysis of housing systems, organized and directed by networks of legal and other professionals within particular domains.FindingsHousing rights instruments are accepted by all States across the world at the level of international law, national constitutions and laws. The findings suggest that there are significant gaps in the international law conception and framework of housing rights, and indeed, human rights generally, which create major obstacles for the effective implementation of these rights. There is a preoccupation with one element of housing systems, that of subsidized or social housing. However, effective housing rights implementation requires application at meso‐, micro‐ and macro‐levels of modern, dynamic housing systems as a whole. Epistemic communities of professionals develop and shape housing law and policy within these domains. The housing rights paradigm must be further fashioned for effective translation into contemporary housing systems.Research limitations/implicationsThe development of housing rights precedents, both within international and national law, is leading to a wide and diffuse corpus of legislation and case law. More research is needed on specific examples of effective coupling between housing rights and elements of housing systems.Originality/valueThis paper offers housing policy makers and lawyers an avenue into the extensive jurisprudence and writings on housing rights, which will inevitably become part of the lexicon of housing law across the world. It also highlights the limitations of housing rights implementation, but offers some new perspectives on more effective application of these rights.

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