A substitute for poor institutions? Interorganizational affiliations in the alliance formation process

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Oliver Rossmannek ◽  
Olaf N. Rank

Purpose This study aims to investigate how the home country institutional development influences the alliance formation process. Design/methodology/approach A network of strategic alliances between 95 airlines over a 5-year period is analyzed with stochastic actor-oriented models [i.e. Simulation investigation for empirical network analysis (SIENA)]. Robustness analyses use a subsample of these airlines over a period of 10 years. Findings The results demonstrate that the membership in a firm group and a high share of state ownership are more beneficial for the number of alliances if the firm originates from a country with low institutional development. Practical implications Firms from less developed countries can use affiliations (e.g. to firm groups or the government) as signals to attract international alliance partners. Social implications Policymakers from less developed countries should support the development of (local) firm groups to stimulate interorganizational cooperation. Originality/value Firms form alliances based on two aspects: preferences for alliance partners and attractiveness to potential partners. Prior studies outlined that institutional development affects the preferences of firms for alliance partners. This study demonstrates how the institutional development influences the attractiveness to potential partners.

2018 ◽  
Vol 26 (4) ◽  
pp. 319-336 ◽  
Author(s):  
Gongming Qian ◽  
Bin Liu ◽  
Qingtao Wang

PurposeAlthough there has been much research on government support for export in China and other emerging economies, considerably less attention has been given to government subsidy-related importing activity in China. This study aims to propose that the government subsidies as the source of financial resources produce a significant increase of imports, as the firms are more likely to engage actively in importing technology-related products which are conducive for China’s future innovation. However, state ownership in firms negatively moderates this relationship and holds back technology imports. Improved formal regulatory institutions do not help to improve but rather weaken this relationship.Design/methodology/approachTo investigate how government policy affects imports of strategic resources in China, all of the listed firms on Chinese stock markets (from 2008 to 2014) have been selected, the firms that are engaged in exporting and importing activities. The data from the China Stock Market & Accounting Research database have been selected and merged with those of the General Administration Customs in China. A panel analysis has been done with several robustiness tests.FindingsFirst, the study indicates that government subsidies are a driving force for the development of importing activities. Second, it finds conflicts of interests between government subsidies and state ownership of a firm, as increased ownership will weaken and even negate the positive effect of a government policy, thus negatively affecting the national competitiveness in the long run. Third, it is important to take into account the issue on different levels of institutional development, even allowing for the fact that a nationwide government policy is applied to the firms located in all corners of the country.Research limitations/implicationsThe authors suggested a regional difference in regulatory development but did not find the proposed direction. In their future study, the authors will validate and generalize this intriguing substitutional effect. They expect the results will help the government to ensure that it can fulfill a policy (e.g. regulation) down to every gross-roots organization so the development of regulatory infrastructure will help the firm to obtain and accumulate strategic resources through increased imports of them. Another direction of their future study will explore how government policy will prompt the firms to increase their spending so that they can possess plenty of “stamina” for their future development.Practical implicationsDifferent levels of institutional development exist in China even allowing for the fact that a nationwide government policy should be applied to all firms within the territory. This certainly has impacts on technology imports and thus creates difficulties for firms located in the western parts of China about which the government is particularly concerned. The government needs to ensure that its policies (laws and regulations) can be fulfilled down to every gross-roots organization so that the development of regulatory infrastructure can be inclusive and pervasive, given its influence on technology importation and indigenization.Originality/valueBoth of the theoretical and empirical work centered on policy initiatives and particularly government subsidies in emerging economies that significantly influence imports of strategic resources, a means with which the firm is better able to maintain and develop its competitive advantages, particularly in an economy with institutional void. Relatedly, the results on a causal relationship help envision a transcending trajectory of China’s economy, suggesting that businesspeople should capitalize on the policy advantage so that they are better able to sustain their long-term development. The results also present implications for policymakers to encourage and support strategic move toward such import endeavors.


2017 ◽  
Vol 55 (2) ◽  
pp. 383-399 ◽  
Author(s):  
Lorenzo Bizzi

Purpose While previous research has developed unclear positions about the role of organizational resources on alliance formation, the purpose of this paper is to focus on financial slack resources to clarify the conditions that facilitate the formation of strategic alliances. Building on the behavioral theory of the firm, this paper theorizes that internal and external financial slack resources, measured as cash holdings and financial leverage, incentivize managers to form alliances, because they protect them against the risk of alliance failure. Design/methodology/approach Complete data were collected from 400 biotech public companies for the period from 2000 to 2015. The data set considered alliances among over 2,200 public and private companies. Hypothesis testing relied on generalized estimating equations. Findings Cash holdings positively impact alliance formation; financial leverage negatively impacts alliance formation; cash holdings and financial leverage interact in the prediction of alliance formation. Research limitations/implications While research in financial slack resources shows equivocal results, this study illustrates that they exercise a significant effect when it comes to the choice of forming strategic alliances. Limitations include the focus on multiple forms of alliances, possible restrictions in the external validity of the findings, and a lack of measurement of explanatory mechanisms. Practical implications Findings help managers understand the financial conditions in which they should choose to form or avoid alliances; findings help managers select alliance partners. Originality/value The study contributes by proposing a new outlook on alliances; identifying financial resources as alliance predictors when previous research focused on intangible resources; offering new insights into the often equivocal outcomes of financial slack; building an uncharted bridge between the finance and alliance literatures.


2018 ◽  
Vol 10 (2/3) ◽  
pp. 200-217 ◽  
Author(s):  
Abdullah Sanusi ◽  
Julia Connell

Purpose The purpose of this paper is to examine the non-market strategies adopted by government-contracted small and medium enterprises (SMEs) in order to address the challenges they faced in the business of procurement. Although SMEs are important contributors to employment and the national economy, they demonstrated different levels of effectiveness depending on the management strategies they adopted. Design/methodology/approach Using case study methodology, data were gathered by conducting interviews with the owners/managers of Indonesian SMEs. Findings were analysed using the (ia)3 framework developed to assist the understanding of non-market environments. Findings Findings indicated that a key characteristic of the Indonesian non-market environment was the influence of the government and Indonesian society. This led to differing degrees of dissatisfaction among SME owners and managers who reported that they had to work within a number of constraints for business survival, while simultaneously learning how to “play the games” demanded by the business and regulatory environment. Research limitations/implications Limitations relate to the number of empirical cases represented and the geographical area covered. Further research is recommended in order to provide the opportunity for research generalisation. Practical implications These findings illustrate the need for transparency and integrity in the procurement process in relation to Indonesian SMEs. It is proposed that SMEs in similar sectors may benefit from forming strategic alliances/industry clusters to support future knowledge sharing and promote their collective voice. Originality/value To date, studies on non-market strategies have largely focused on developed countries and large firms. Consequently, this paper goes some way towards bridging the gap in the non-market environment in developing countries concerning SMEs and potential strategies for adoption.


Kybernetes ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jie Lei ◽  
Jianming Liu ◽  
Wu Li

Purpose Hospital information system (HIS) can be examined as a vital factor for developing the quality of health care and cost managing. There exists abundant literature on HISs, but implementation-based literature of HIS is rare, typically about progressive countries. However, a study that can comprehensively review published articles is scarce. Therefore, this paper aims to examine the systematic and comprehensive study of HIS in developed countries. Together, the benefits and harms relevant to HIS’s different mechanisms have been considered, and the fundamental challenges of them are addressed to design more efficient HIS in the future. Design/methodology/approach HIS has been used globally for numerous years and is now being used in a wide area. HIS is broadly used in clinical settings. Information technology (IT) and information system have been suggested as a required piece to solve the health-care-related issues. Hence, to improve HIS’s ability, this paper conducted a review method concentratating on research related to HIS until 2019. A total of 21 papers were recognized and examined as principal research for the summary. Findings The authors found that HIS can help in reduction of medical mistakes, enhancement doctors’ performance and increase in the quality of the care provided. HIS management can be used to provide better health-care services. Therefore, HIS must be sensible and use clear structures. The authors conclude that, generally, with an increase in awareness, acceptability and the need for HIS worldwide, there will be more strategies and approaches available. Research limitations/implications First, this paper provides an outline of the status of HIS. Second, it identifies some distinct research gaps that could be worth studying. Some flawless work may be removed because of applying some filters to select the original articles. Surveying all the papers on the topic of HIS is impossible, too. Practical implications Design and sustainability of HIS is still a big issue for most developing countries, despite its wide usage in the developed countries. The technology is changing rapidly, so the field should be reviewed regularly. This paper suggests a suitable framework that will guide HIS in the local conditions of developing countries. Social implications The government will be assisted by the suggested solving ways in its performance and design of electronic health-care projects. Originality/value The study brings the viewpoints on the state of HIS mechanisms in developing countries. The paper’s results can offer visions into future research requirements. By providing comparative information and analyzing the current growths in this area, this study will support researchers and professionals to understand the progress in HIS mechanisms better.


2019 ◽  
Vol 11 (2) ◽  
pp. 102-119 ◽  
Author(s):  
Nsubili Isaga

Purpose Research on women-owned business is more extensive in developed countries than in developing countries and such one cannot compare the results. This paper aims to examine the motives of women in Tanzania (a less developed country) to start their own businesses and the challenges they faced in running their businesses. Design/methodology/approach Based on 400 response to a semi-structured questionnaire and in-depth interview with 20 female entrepreneurs. Subsequently, descriptive and factors analysis were performed to analyze the data Findings Based on survey responses, the primary reason for starting a business was to create employment for the woman herself. Other motives include supplementing income and enabling women to be able to do the kind of work they wanted to do. According to the factor analysis, female entrepreneurs are driven more by push factors than pull factors. The most serious problems faced by female entrepreneurs are lack of access to finance, gender-related problems and social and cultural commitments. Research limitations/implications The sample was selected from urban areas of only three regions, out of 26 regions in Tanzania. Researchers may extend the study to other regions; also, the non-probability sampling method used in this study essentially means that there is a limitation to the extent to which the research findings can be generalized to the rest of the population of female entrepreneurs in Tanzania. Practical implications Policy makers, financial institutions and all organization that have a stake on development on female entrepreneurs in Tanzania should design policies and programs that encourage and promote the creation and growth of businesses. Collective efforts from the government, public and private institutions and NGOs are needed to eliminate the challenges, especially gender-related problems. Practical implications By studying female owner-managers’ motivations and constraints, the author suggests that to a greater extent, gender-related problems, social and cultural commitments and access to finance and networks are the constraints faced by female entrepreneurs. Originality/value The research on female entrepreneurs in the context of Tanzania is scarce, this study responds to a need of better understanding women motivations and constraints. By studying these factors, this study shows that startup motives and constraints faced by female entrepreneurs are unique to different contexts.


2018 ◽  
Vol 20 (5) ◽  
pp. 434-448 ◽  
Author(s):  
Stuti Saxena

Purpose With the ongoing drives towards Open Government Data (OGD) initiatives across the globe, governments have been keen on pursuing their OGD policies to ensure transparency, collaboration and efficiency in administration. As a developing country, India has recently adopted the OGD policy (www.data.gov.in); however, the percolation of this policy in the States has remained slow. This paper aims to underpin the “asymmetry” in OGD framework as far as the Indian States are concerned. Besides, the study also assesses the contribution of “Open Citizens” in furthering the OGD initiatives of the country. Design/methodology/approach An exploratory qualitative following a case study approach informs the present study using documentary analysis where evidentiary support from five Indian States (Uttar Pradesh, Telangana, West Bengal, Sikkim and Gujarat) is being drawn to assess the nature and scope of the OGD framework. Further, conceptualization for “Open Citizen” framework is provided to emphasize upon the need to have aware, informed and pro-active citizens to spearhead the OGD initiatives in the country. Findings While the National OGD portal has a substantial number of data sets across different sectors, the States are lagging behind in the adoption and implementation of OGD policies, and while Telangana and Sikkim have been the frontrunners in adoption of OGD policies in a rudimentary manner, others are yet to catch up with them. Further, there is “asymmetry” in terms of the individual contribution of the government bodies to the open data sets where some government bodies are more reluctant to share their datasets than the others. Practical implications It is the conclusion of the study that governments need to institutionalize the OGD framework in the country, and all the States should appreciate the requirement of adopting a robust OGD policy for furthering transparency, collaboration and efficiency in administration. Social implications As an “Open Citizen”, it behooves upon the citizens to be pro-active and contribute towards the open data sets which would go a long way in deriving social and economic value out of these data sets. Originality/value While there are many studies on OGD in the West, studies focused upon the developing countries are starkly lacking. This study plugs this gap by attempting a comparative analysis of the OGD frameworks across Indian States. Besides, the study has provided a conceptualization of “Open Citizen” (OGD) which may be tapped for further research in developing and developed countries to ascertain the linkage between OGD and OC.


2015 ◽  
Vol 117 (5) ◽  
pp. 1440-1452 ◽  
Author(s):  
Xiaolin Liu ◽  
Lingling Xu ◽  
Dian Zhu ◽  
Linhai Wu

Purpose – The purpose of this paper is to examine consumer attitudes toward and willingness to pay (WTP) for traceability of tea in China. Design/methodology/approach – The authors used the payment card method to elicit WTP for certified traceable tea and logistic regression model to analyze the factors that affected consumers’ WTP. Findings – The results revealed that most consumers in China were concerned over tea safety; however, their WTP for certified traceable tea was limited. Only income and the degree of concern over tea safety affected the consumer’s WTP for certified traceable tea greatly. When it came to consumers’ WTP a positive price premium, income level, education, and attitude toward traceability of tea significantly influenced the actual premium consumers were willing to pay. Practical implications – The Chinese government and tea producers should pay attention when implementing tea traceability system. First, raising the consumers’ income contributes to the premiums that consumers are willing to pay for certified traceable tea. Second, social groups, consumer organizations and tea producers should popularize knowledge of tea traceability. Third, given the low price premiums that consumers are willing to pay, the establishment of viable traceability of tea in China requires the producers and the government to bear some of the cost associated with the implementation of this system. Originality/value – In past studies on WTP for certified traceable food, the study is focussed on meat in developed countries, and the research has expanded range of study, by conducting a survey in China to determine consumers’ WTP for certified traceable tea, and by empirically examining the main factors that influence the willingness of consumers to pay a price premium for certified traceable tea, as well as the premium that these consumers are willing to pay.


2021 ◽  
Author(s):  
◽  
Phoxai Inthaboualy

<p>The current literature focuses primarily on the national competitiveness of developed or developing economies. However, minimal research exists on understanding the national competitiveness of less developed countries (LDCs) whose strengths in factor endowments, government institutions and the extent of global integration are not the same as those of developed or developing countries. This study aims to fill this research gap by exploring factors contributing to the competitiveness of Laos. Laos is a small, poor and land-locked country in Southeast Asia with rich natural resources. To achieve the study objectives, 20 semi-structured interviews were conducted with senior government officials, industrial representatives, professors and NGOs in Laos. The findings suggest three key factors are critical for enhancing Lao competitiveness: factor endowments, the role of government, and global integration. Laos‘ factor endowments include hydropower, mining, agriculture, garment and textile industries, and services. Laos is interacting more with the global economy as it gets set to embrace membership of the World Trade Organisation after approximately 15 years of membership of ASEAN. The government is playing a critical role by developing Lao factor endowments and developing policies required for global integration. However, the country faces challenges of value addition to the existing natural resources, developing and leveraging human capital, and further improvement in rules and regulations.</p>


2021 ◽  
Author(s):  
◽  
Phoxai Inthaboualy

<p>The current literature focuses primarily on the national competitiveness of developed or developing economies. However, minimal research exists on understanding the national competitiveness of less developed countries (LDCs) whose strengths in factor endowments, government institutions and the extent of global integration are not the same as those of developed or developing countries. This study aims to fill this research gap by exploring factors contributing to the competitiveness of Laos. Laos is a small, poor and land-locked country in Southeast Asia with rich natural resources. To achieve the study objectives, 20 semi-structured interviews were conducted with senior government officials, industrial representatives, professors and NGOs in Laos. The findings suggest three key factors are critical for enhancing Lao competitiveness: factor endowments, the role of government, and global integration. Laos‘ factor endowments include hydropower, mining, agriculture, garment and textile industries, and services. Laos is interacting more with the global economy as it gets set to embrace membership of the World Trade Organisation after approximately 15 years of membership of ASEAN. The government is playing a critical role by developing Lao factor endowments and developing policies required for global integration. However, the country faces challenges of value addition to the existing natural resources, developing and leveraging human capital, and further improvement in rules and regulations.</p>


2019 ◽  
Vol 10 (1) ◽  
pp. 116-142
Author(s):  
Sepehr Ghazinoory ◽  
Ammar Ali Ali ◽  
AliReza Hassanzadeh ◽  
Mehdi Majidpour

PurposeBecause of importance of technological learning for less developed countries, the notion has received increasing attention of scholars. The purpose of this paper is to investigate technological learning systematically by assessing the effect of technology transfer actors on technological learning in less developed countries context.Design/methodology/approachThe paper presents assessment model by adopting technological learning concept based on technology absorption and incremental innovation at firm level and identifying key roles of technology transfer actors (State – Scientific and technological infrastructure – Industry) that affect technological learning. The paper follows survey as research methodology. Thus, a questionnaire was addressed to 33 Syrian textile factories to examine the assessment model. Simple linear, multiple linear and ordinal regression analyses are preformed to examine relationships of model components.FindingsThe regression models show notable ability of technology transfer actors to explain technological behavior of firms to accumulate operative capability and consequently to generate passive incremental innovation. The findings indicate passive technical change system of Syrian textile industry. Therefore, goal-oriented evaluation of actual technology policy is preliminary step for achieving improvements, as well as activating scientific and technological infrastructure role by enabling strong relationships with industry and supporting interactions of domestic firms of textile industry and with foreign players.Originality/valueThe paper enriches technological learning literature by proposing systematic approach that sets the nature of technical change process of less developed countries in core of analysis. Moreover, it provides a guide for technological learning practices at firm level and for policymakers based on assessing actual status of Syrian textile industry.


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