How do social entrepreneurs develop technological innovation?

2021 ◽  
Vol 17 (1) ◽  
pp. 63-93
Author(s):  
Duygu Turker ◽  
Y. Serkan Ozmen

Purpose The present study attempts to analyze how social entrepreneurs (SEs) develop technological innovation in the face of diverse institutional logics, which are embedded in the National Systems of Innovation (NSI). Design/methodology/approach Based on the content analysis of Ashoka Fellows, the study compares SEs in developed and developing countries, which represent strong versus weak NSIs. Findings SEs selectively couple the elements of diverse institutional logics to ensure the resource inflow and legitimacy of their operations. However, SEs particularly at weak NSIs are also decoupling their profit and non-for-profit branches to address conflict among diverse logics. Moreover, the study finds that 12 out of 20 entrepreneurs who identify themselves as technologically innovative did not develop any new technological innovation. Practical implications The study shows that being technologically innovative depends on the acquisition of resources and the management of legitimacy challenges, SEs can diversify their innovations by creating more incremental, architectural and modular innovations to address competing demands among logics. Social implications The study reveals that SEs in weak NSIs interact with multiple institutional logics more frequently than their counterparts in strong NSIs. Although this context leads them to diversify their technological innovation, there is a need for improving the NSIs of SEs in developing countries to facilitate the continuity of resource inflow and ensure the legitimacy of their operations. Originality/value Integrating two complementary theoretical lenses, the study contributes to the literature by exploring the impact of the interaction between logics nested within a supra system and SEs’ ability to develop technological innovation.

2019 ◽  
Vol 26 (3) ◽  
pp. 910-920 ◽  
Author(s):  
Sani Abubakar Saddiq ◽  
Abu Sufian Abu Bakar

Purpose The purpose of the study is to investigate the impact of economic and financial crimes on the economies of emerging and developing countries. Design/methodology/approach Preferred Reporting Items for Systematic review and Meta-Analysis (PRISMA) guidelines and meta-analysis of economics research reporting guidelines were used to conduct a quantitative synthesis of empirical evidence on the impact of economic and financial crimes in developing and emerging countries. Findings A total of 103 studies were searched, out of which 6 met the selection/eligibility criteria of this systematic review. The six selected studies indicated that economic and financial crimes have a negative impact in emerging and developing countries. Originality/value To the best knowledge of the authors, no published systematic review of the impact of economic and financial crimes in developing countries has been conducted to date.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohamed Hamdoun ◽  
Mohamed Akli Achabou ◽  
Sihem Dekhili

Purpose This paper aims to examine the link between corporate social responsibility (CSR) and financial performance in the context of developing countries. More specifically, the mediating role of a firm’s competitive advantage and intangible resources, namely, human capital and reputation are studied. Design/methodology/approach The study considered a sample of 100 Tunisian firms. The analysis makes use of the structural equation modelling method to explore the relationship between CSR and financial performance, by including mediator variables. Findings The results confirm that CSR has no significant direct effect on financial performance. In particular, they indicate that the social dimension of CSR has a negative impact on performance. However, CSR does have a positive impact on competitive advantage via the two intangible resources considered, human capital and company reputation. Research limitations/implications The research fills a gap that occurred in the previous literature. In effect, previous studies focussed only on the direct link between CSR and financial performance. In addition, it enriches the limited literature on CSR strategies in the context of developing countries. However, further studies should explore the opposite relationship, i.e. the impact of financial performance on CSR strategy. In addition, the authors believe that amongst other potential research avenues, it would be interesting to study the moderating role of the activity sector. Practical implications From a practical point of view, this study suggests new applications with respect to the link between CSR and financial performance. To enhance their company’s financial performance, managers need to ensure that intangible resources are managed efficiently. Originality/value The paper contributes to the literature by examining how a firm’s intangible resources mediate between CSR and competitive advantage and how competitive advantage mediates between intangible resources and financial performance. Second originality is related to the study of the link between CSR and the financial performance of business organisations in the context of a developing country.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ezlika M. Ghazali ◽  
Dilip S. Mutum ◽  
Haleh Hakim Javadi

PurposeThis study presents a framework for integrating distinct perspectives on social entrepreneurship by combining institutional theory with the social entrepreneurship intention model. The framework assesses the relationships between social support and the perceived feasibility and desirability of social entrepreneurship, the relationships between social support and the institutional environments of social workers, and the moderating role of prior experience of social work and volunteering.Design/methodology/approachThe model was tested using 266 validated responses from an online and paper-based survey distributed among social workers. Partial least squares structural equation modelling was used to analyse the data, and multi-group analysis was conducted to examine the moderation effects.FindingsThe findings indicate that experience moderates the relationships between the regulatory and cognitive environments, cognitive environments and social support, and social support and perceived feasibility. Experience negatively moderates the relationship between the normative environment and social support.Practical implicationsActive government involvement in the form of incentives and financial support would encourage the creation of social ventures.Social implicationsEducational programmes are also necessary to help raise awareness and increase the familiarity and knowledge of potential social entrepreneurs.Originality/valueThe study analyses the effects of institutional environmental components, recognised as highly influential on the development of social entrepreneurship, as well as the impact of perceived social support on the antecedents of the perceived desirability and feasibility of social entrepreneurship. It also addresses how social work experience modifies these relationships. Contrary to previous studies, the findings suggest that increasing social work experience isolates entrepreneurs from their environment.


2017 ◽  
Vol 44 (5) ◽  
pp. 765-780 ◽  
Author(s):  
Sena Kimm Gnangnon

Purpose The purpose of this paper is to contribute to the empirical literature of the macroeconomic effect of trade facilitation reforms by examining the impact of the latter on tax revenue in both developed and developing countries. The relevance of the topic lies on the fact that at the Bali Ministerial Conference of the World Trade Organization (WTO) in 2013, Trade Ministers agreed for the first time since the creation of the WTO (in 1995) on an Agreement to facilitate trade around the world, dubbed Trade Facilitation Agreement (TFA). The study considers both at-the-border and behind-the border measures of Trade Facilitation. Design/methodology/approach To conduct this study, the authors rely on the literature related to the structural factors that explain tax revenue mobilization. The authors mainly use within fixed effects estimator. The analysis relies on 102 countries (of which 23 industrial countries) over the period 2004-2007 (based on data availability). A focus has also been made on African countries, within the sample of developing countries. Findings The empirical analysis suggests evidence of a positive and significant effect of trade facilitation reforms on non-resources tax revenue, irrespective of the sample of countries considered in the analysis. Research limitations/implications This finding should contribute to dampening the fear of policymakers in developing countries, including Africa that the implementation of the TFA would entail higher costs, without necessarily being associated with higher benefits. An avenue for future research would be to extend the period of the study when data would be available. Originality/value To the best of the authors knowledge, this study had not been performed in the literature of the determinants of tax revenue mobilization, although fact-based analysis was performed.


2018 ◽  
Vol 14 (4) ◽  
pp. 410-428 ◽  
Author(s):  
Suvi Kokko

Purpose This paper aims to understand how social value is created in a context characterized by institutional complexity. By identifying stakeholders interacting in a social enterprise and the logics guiding their expected and experienced value, the study describes how social value is created when different institutional logics embedded in strong-tie networks are bridged. Design/methodology/approach Concepts of structural holes and institutional logics were applied to the empirical case of a social enterprise. Interviews provided the primary empirical material, but multiple data collection methods were used. Findings A shared goal facilitated co-existence of competing value logics, and provided common space forming multiple social value outcomes as products of the different logics. Research limitations/implications Limited to one case, this study shows that the interaction of otherwise unconnected stakeholders in a social enterprise, and their embeddedness in different institutional logics, provides one explanation for why and how social value is created. Practical implications Acknowledging and addressing gaps in knowledge and resources can lead to social value creation if social enterprises remain open to different logics. This suggests that co-existence of different logics can be a key factor for successful social value creation in social enterprises, if the competing logics are turned into complementary sources. Originality/value Dependency on logics from different networks of stakeholders shapes social enterprises to produce outcomes consistent with the different logics. The multiplicity of social value outcomes poses challenges for evaluating the success of social enterprises, especially when the tendency is to use evaluation approaches from the for-profit sector, focusing on the economic logic.


2017 ◽  
Vol 37 (9) ◽  
pp. 1164-1184 ◽  
Author(s):  
Haley Allison Beer ◽  
Pietro Micheli

Purpose The purpose of this paper is to examine the influences of performance measurement (PM) on not-for-profit (NFP) organizations’ stakeholders by studying how PM practices interact with understandings of legitimate performance goals. This study invokes institutional logics theory to explain interactions between PM and stakeholders. Design/methodology/approach An in-depth case study is conducted in a large NFP organization in the UK. Managers, employees, and external partners are interviewed and observed, and performance-related documents analyzed. Findings Both stakeholders and PM practices are found to have dominant institutional logics that portray certain goals as legitimate. PM practices can reinforce, reconcile, or inhibit stakeholders’ understandings and propensity to act toward goals, depending on the extent to which practices share the dominant logic of the stakeholders they interact with. Research limitations/implications A theoretical framework is proposed for how PM practices first interact with stakeholders at a cognitive level and second influence action. This research is based on a single case study, which limits generalizability of findings; however, results may be transferable to other environments where PM is aimed at balancing competing stakeholder objectives and organizational priorities. Practical implications PM affects the experience of stakeholders by interacting with their understanding of legitimate performance goals. PM systems should be designed and implemented on the basis of both their formal ability to represent organizational aims and objectives, and their influence on stakeholders. Originality/value Findings advance PM theory by offering an explanation for how PM influences attention and actions at an individual micro level.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Stacey Kaden ◽  
Gary Peters ◽  
Juan Manuel Sanchez ◽  
Gary M. Fleischman

PurposeThe authors extend research suggesting that external funders reduce their contributions to not-for-profit (NFP) organizations in response to media-reported CEO compensation levels.Design/methodology/approachEmploying a maximum archival sample of 44,807 observations from US Form 990s, the authors comprehensively assess the extent that high relative NFP CEO compensation is associated with decreases in future contributions.FindingsThe authors find that donors and grantors react negatively to high relative CEO compensation but do not react adversely to high absolute executive compensation. Contributors seem to take issue with CEO compensation when they perceive it absorbs a relatively large portion of the organizations’ total expenses, which may hinder the NFP’s mission. Additional findings suggest that excess cash held by the NFP significantly exacerbates the negative baseline relationship between future contributions and high relative CEO compensation. Finally, both individual donors and professional grantors are sensitive to cash NFP CEO compensation levels, but grantors are more sensitive to CEO noncash compensation.Research limitations/implicationsThe authors’ data are focused on larger NFP organizations, so this limits the generalizability of the study. Furthermore, survivorship bias potentially influences their time-series investigations because a current year large-scale decrease in funding due to high relative CEO compensation may cause some NFP firms to drop out of the sample the following year due to significant funding reductions.Originality/valueThe study makes three noteworthy contributions to the literature. First, the study documents that the negative association between high relative CEO compensation levels and future donor and grantor contributions is much more widespread than previous literature suggested. Second, the authors document that high relative CEO compensation levels that trigger reductions in future contributions are significantly exacerbated by excess cash held by the NFP. Finally, the authors find that more sophisticated grantors are more sensitive to noncash CEO compensation levels as compared with donors.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shilin Yuan ◽  
Haiyang Chen ◽  
Wei Zhang

Purpose This paper aims to examine the impact of host country corruption on foreign direct investment (FDI) from China to developing countries in Africa. With the opposing arguments that corruption is detrimental to or instrumental in FDI and mixed empirical evidence, this paper contributes to the literature by providing new evidence on the issue. Additionally, little research has been done on the impact of corruption on FDI made by developing country multinationals to developing countries. This paper fills a void in this area. Design/methodology/approach Based on the published literature, as well as China and Africa contexts, the authors develop hypotheses that host countries with low corruption receive more FDI and resource-seeking investments weaken the relationship. The annual stock of Chinese FDI in 35 African countries, host country corruption data and other control variables from 2007 to 2015 are collected. Feasible generalized least squares models are used to test the hypotheses. Additional robustness tests are also conducted. Findings The findings support the hypotheses. Specifically, Chinese investors make more investments in host countries with low corruption except for resource-seeking investments in resource-rich host counties. The results are statistically significant accounting for various control variables. The results of the robustness tests show that the main findings are robust. Originality/value First, this study provides new evidence on the impact of corruption on FDI. Second, this study also fills a void by examining FDI from a developing country, China to other developing countries in Africa. Finally, this study also has a practical implication for Chinese multinationals investing in Africa.


2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Taha Almarayeh ◽  
Modar Abdullatif ◽  
Beatriz Aibar-Guzmán

PurposeThis study examines the relationship between audit committees (ACs) and earnings management (EM) in the developing country context of Jordan. In particular, it investigates whether audit committee attributes, including their size, independence, expertise and meetings, are able to restrict discretionary accruals as a proxy for EM.Design/methodology/approachThe generalized least square (GLS) regression was used to study the association between audit committee attributes and discretionary accruals, as a proxy of EM, for a sample of industrial firms listed on the Amman Stock Exchange (ASE) during the period 2012–2020. Data were obtained from the firms' annual reports.FindingsThe regression results indicate that audit committee independence is the only audit committee attribute that seems to improve the effectiveness of ACs, in that it is significantly associated with less EM, while other audit committee attributes that were tested do not show statistically significant associations.Research limitations/implicationsIn emerging markets, like Jordan, ACs may not be an efficient monitoring mechanism; therefore, it can be argued that the prediction made by the agency theory about the role of ACs in mitigating opportunistic EM activities does not necessarily apply to all contexts.Practical implicationsA better understanding of audit committee effectiveness in developing countries could help regulators in these countries assess the impact of planned corporate governance (CG) reforms and to better monitor and enhance the performance of ACs.Social implicationsIn a setting characterized by closely held companies, high power distance and low demand for high-quality CG mechanisms, this study contributes to understanding how this business system operates, and how improving CG mechanisms could be successful in such cultures.Originality/valueThis study investigates the under-researched relationship between audit committee characteristics and EM in developing countries. In so doing, it aims to provide new insights into this relationship within the developing context case of Jordan, including if and how the institutional setting influences this relationship.


2019 ◽  
Vol 30 (7) ◽  
pp. 1097-1114 ◽  
Author(s):  
Bang-Ning Hwang ◽  
Mu-Yen Hsu

Purpose For most manufacturing firms, technological innovations are usually the key strategies to gain their competitive advantages. However, competing strategically through service provision is becoming an important strategy for most industries. A growing demand for packaged product and service delivery is blurring the traditional boundaries between manufacturing and service firms. This trend is called “servitization.” Prior research had different perspectives on the relationship between technological innovations and servitization. Some argued that as servitization exerts the innovative convergence of products and services, the possession of appropriate readiness and absorption capacity through technological innovations for a manufacturing firm is critical to the success of servitization. In contrast, some argued that the knowledge gained from developing technological innovations cannot be applied to the creation of services due to the fundamental difference between technology and service. These contradicting arguments motivated the authors to study the relationship between technological innovations and servitization a step further. The paper aims to discuss these issues. Design/methodology/approach To address the research gap, the authors conducted an empirical study based on the large-scale samples from the second Taiwan Community Innovation Survey (Taiwan CIS). A multivariate logistic regression model was applied in the research. Findings The authors found that different types of technological innovations, namely product innovation and process innovation, have different impacts on servitization. The innovativeness level of the technological innovation moderates the relationship between technological innovation and servitization. Based on the above findings, this research specifically explains the causes of the contradictory results of the prior research. Originality/value The values of this research are twofold. Its academic contribution rests on bridging the literature of innovation and servitization, and on providing a model to clarify the relationships among technological innovation type, level of innovativeness and servitization. Its practical contribution lies in its establishment of a guideline that illuminates manufacturing firms reinforcing service delivery through their existing technological innovation trajectory.


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