scholarly journals The Impact of Industry’s Concentration on Innovation: Evidence from Russia

2017 ◽  
Vol 11 (1) ◽  
pp. 37-49
Author(s):  
Anna Bykova
Keyword(s):  
Emerging Market ◽  
Research Question ◽  
Developed Countries ◽  
Empirical Literature ◽  
Innovation Activity ◽  
Local Market ◽  
Industrial Concentration ◽  
Measure Concentration ◽  
Innovation Output ◽  
The Impact

In pursuit of economic growth and development, companies have tried to strike a balance between competition and monopoly power. This paper reviews evidence on industrial concentration and its economic consequences (notably firms’ performance as measured by innovation output) in the framework of emerging market conditions. Competition theory was built in developed countries under assumptions that do not necessarily fit emerging economies. Our main research question is whether the level of local market concentration influences (and if it does, in which way) innovation activity undertaken by companies operating on emerging markets. Apart from linear association, the empirical literature suggests that industrial concentration could exhibit an inverted U-relationship as far as its link to certain economic indicators of success, such as innovation output. We measure concentration by using the Herfindahl-Hirshman Index. This paper finds empirical evidence in support of the Schumpeterian hypothesis that more concentrated industries stimulate innovation and observe the inverted U-relationship curve. Further, the empirical model demonstrates the relative importance of technological leadership in concentration industries to enhance innovations. This suggests a role for recalibrating firm and industry policies.

Does investment in innovation impact firm performance in emerging economies? An empirical investigation of the Indian food and agricultural manufacturing industry

2021 ◽  
Vol 13 (2) ◽  
pp. 233-248
Author(s):  
Manogna R.L. ◽  
Aswini Kumar Mishra
Keyword(s):  
Firm Performance ◽  
Manufacturing Industry ◽  
Emerging Market ◽  
Developed Countries ◽  
Emerging Economy ◽  
Content Type ◽  
Agricultural Industry ◽  
Indian Food ◽  
The Impact ◽  
The Relationship

Purpose The study aims to analyze the impact of Research & Development (R&D) intensity on the firm’s performance, measured by growth of sales in the emerging market like India. Innovation strategy and its outcomes for firms may be different in developing countries as compared to developed countries. Thus, a study that focuses on the emerging economy like India, with a majority of the population dependent on agriculture, is of prime importance to the firm performance in the food and agricultural manufacturing industry. For this study, the broader focus will be on one widely recognised factor which may influence the growth rate of firms, i.e. investment in innovations which is in terms of R&D expenditure. Design/methodology/approach The paper investigates the relationship between the R&D efforts and growth of firms in the Indian food and agricultural manufacturing industry during 2001–2019. To empirically test the relationship between firm’s growth (FG) and R&D investments, system generalised method of moments technique has been used, hence enabling to avoid problems related to endogeneity and simultaneity. Findings The findings reveal that investments in innovations have a positive effect on the growth of firms in the Indian food and agricultural manufacturing industry. Investment in R&D also enables the firms to reap benefits from externalities present in the industry. Further analysis reveals that younger firms grow faster when they invest in R&D. More specifically, this paper finds evidence in the case of the food and agricultural industry that import of raw materials negatively affects the FG and export intensity positively affects the growth in the case of R&D firms. Research limitations/implications This study suggests that the government should encourage the industries to invest optimally in R&D projects by providing favourable fiscal treatments and R&D subsidies which are observed to have positive effects in various developed countries. Originality/value To the best of the author’s knowledge, the current paper is the first to analyse the impact of innovation in food and agricultural industry on firm’s performance in an emerging economy context with the latest data. This paper agrees that a government initiative to increase private R&D expenditure would have favourable effects on FG as growing investments in R&D lead to further growth of the firms.

scholarly journals Implications of ownership identity and insider’s supremacy on the economic performance of the listed companies

2014 ◽  
Vol 11 (4) ◽  
pp. 399-411
Author(s):  
Qaiser Rafique Yasser ◽  
Abdullah Al-Mamun
Keyword(s):  
Firm Performance ◽  
Emerging Market ◽  
Research Question ◽  
Positive Influence ◽  
Theoretic Approach ◽  
Main Research ◽  
The Government ◽  
High Level ◽  
The Impact ◽  
The Relationship

We adopt a multi-theoretic approach to investigate a previously unexplored phenomenon in extant literature, namely the differential impact of ownership identity and director dominate shareholding on the performance of emerging market firms. The main research question addressed is, whether the impact of this relationship is conditional on the identity of the block investor. First, the relationship between overall block ownership and firm performance is tested by employing multiple regressions on 500 firm-year observations for the period from 2007 to 2011. Then, the block ownership is classified as the state, individuals, insiders, financial institutions, corporate and foreign investors and the influence of these identities on firm performance is examined. It was found that only the ownership categories such as the government, institutions and foreign ownership have positive influence on the firm performance. The results also indicate that high level of insider ownership also negatively associated with the firm performance. The main contribution of this paper is the examination of the relationship between block ownership and firm performance from the perspective of the identity of investors

Imposing cooperation: the impact of institutions on the efficiency of cooperatives in the Philippines

2020 ◽  
Vol 14 (4) ◽  
pp. 421-440
Author(s):  
Roberto Martin N. Galang ◽  
Rouselle F. Lavado ◽  
George O. White III ◽  
Jamil Paolo S. Francisco
Keyword(s):  
Emerging Market ◽  
Research Question ◽  
The Philippines ◽  
Performance Outcomes ◽  
Organizational Size ◽  
Firm Level ◽  
Content Type ◽  
Positive Externalities ◽  
Political Structures ◽  
The Impact

Purpose The purpose of this study is to answer the research question: How do cooperative organizations perform when created by government fiat in an emerging market? Through the use of institutional and agency theory, this paper presents a comparative analysis of the efficiency of the cooperative form of organization and investor-owned firms-investigating how the social–political structures in a community affect the efficiency of cooperatives vis-à-vis investor-owned firms. This paper also attempts to offer a better understanding of how government quality and organizational size influence performance outcomes between different organizational forms specifically in the Philippines. Design Methodology Approach The empirical analysis of this study was conducted among electric distribution utilities in the Philippines. Firm-level data was generated for 133 distributors, consisting of 119 electric cooperatives and 14 investor-owned companies. Panel data regressions were ran to test all hypotheses. Findings Cooperative organizations operate at a less efficient rate than investor-owned firms in the Philippines, even when controlling for firm-specific factors such as size, customer density and profitability. In addition, the efficiency of these cooperative organizations is more strongly influenced by the quality of the local government than investor-owned firms. Originality Value Positive externalities generated by the propagation of cooperatives on local communities may be based primarily on our understanding of how cooperatives have functioned largely in western contexts. Within the context of Southeast Asia, where national socio-political structures may be more dysfunctional, this paper observes that there is an equivalent negative externality caused by the tendency of cooperatives to replicate the political mismanagement of the community around it.

scholarly journals Effects of Corporate Governance Guidelines on Investors: An Experimental Examination of Bangladeshi Investors’ Decisions

2021 ◽  
Author(s):  
◽  
ATM Tariquzzaman
Keyword(s):  
Decision Making ◽  
Corporate Governance ◽  
Theoretical Model ◽  
Insider Trading ◽  
Emerging Market ◽  
Governance Structure ◽  
Developed Countries ◽  
Financial Condition ◽  
The Impact ◽  
Investor Decisions

<p>The main purpose of the study is to examine whether investors assign importance to corporate governance in making investment decisions. The study involves a 2x2x2 between-participant experiment on real investors that examines the effects of corporate governance structure, financial condition and insider trading on individual investor decisions. The findings of this study extend the literature on corporate board practices and investor perceptions by providing evidence from this emerging economy that strong corporate governance has a positive impact on investor decisions. The study also confirms the findings of prior literature that financial condition of a company positively influences investor decisions. Hence, the results provide insights into the effects of strengthening corporate governance guidelines and of variation in financial condition on investor decisions. The study provides evidence that the common occurrence of illegal insider trading in the emerging market of Bangladesh does not appear to impact on investor decision making, unlike in developed countries.  The results of this study also contribute to understanding of how the quality of corporate governance impacts on decision making. It appears that governance directly impacts the perceived reliability of financial reports and trust in the board and management and that these factors fully mediate the impact on investor decision making.  The theoretical model and instrument developed for this study will be useful for further studies to explore the impact of other corporate governance factors on investor decisions. Furthermore, the theoretical model and instrument will also be useful for further studies in other developed and developing countries, particularly where insider trading is regarded by investors as being a concern and to investigate the impact of other corporate governance factors on investors and financial analysts.</p>

scholarly journals Learning-by-export effects in the russian software industry

2018 ◽  
pp. 38-49
Author(s):  
E. O. Bozheva
Keyword(s):  
New Technologies ◽  
New Products ◽  
Spillover Effects ◽  
Absorption Capacity ◽  
Innovation Activity ◽  
Local Market ◽  
Transfer Of Knowledge ◽  
Foreign Markets ◽  
Innovation Activities ◽  
The Impact

Learning-by-export effects exist due to the nature of the creation, accumulation, transfer of knowledge, as well as the companies’ absorption capacity to accumulate and adapt the best experience, competences borrowed from abroadwithin the organization. The length and direction of exports have a significant impact on the innovation activities of organizations, while innovations do not always encourage the leaders to initiate export activities. In the course of empirical research, we have identified the following rules in relation to Russian IT-firms:1) New IT-exporters have no visible link between the introduction of new products, technologies and the start of exports. Investments in research and development, which may have been initiated after entering foreign markets or at the same time, have not yet yielded results. 2) Stable export activity encourages IT-companies to apply new technological, process and marketing innovations that were not previously part of the firm's plans, much more often than firms in the local market. 3) The impact of external knowledge effects on the productivity of IT-companies depends on the geographical direction of exports: a) the markets of the near abroad (CIS countries) and Russia itself;b) the markets of the far abroad. 4) Investments in R&D, marketing and production of new products are more typical for companies located in capitals (Moscow and Saint-Petersburg). On the contrary, the relationship between the presence of an international office and the introduction of innovations has not been proven. The size of companies has only affected the production of new technologies: if a company is a medium-sized enterprise or a larger one, the probability of innovation is increased by 22%. 5) The smaller the firm, the lower its desire to participate in extensive innovation networks, increase the number and diversity of external relations. The size of the company determines the level of influence of cooperation with other market participants on its internal innovation processThe article discusses the classification of knowledge spillover effects, the methodology of the study, the analysis of the economic impact of the process "flow" as a result of entering foreign markets. The paper’s emphasis is on assessment of recipients’ capabilities to accumulate new knowledge in the course of export activities, to extract advantages in terms of future development such as increasing innovation activity and, consequently, attractiveness, resulting in higher performance efficiency.

The Impact of a Crisis on the Innovation Systems in Europe: Evidence from the CIS10 Innovation Survey

2019 ◽  
Vol 27 (4) ◽  
pp. 543-562
Author(s):  
Katerina Toshevska-Trpchevska ◽  
Elena Makrevska Disoska ◽  
Dragan Tevdovski ◽  
Viktor Stojkoski
Keyword(s):  
Labor Productivity ◽  
Economic Crisis ◽  
Productivity Growth ◽  
Innovation Systems ◽  
European Countries ◽  
Innovation Activity ◽  
National Innovation Systems ◽  
Community Innovation Survey ◽  
Innovation Output ◽  
The Impact

The varieties of the national innovation systems among European countries are reflected in the large differences, discrepancies and sometimes unexpected results in the innovation processes and their influence on labor productivity growth. The goal of this paper is to find the differences between the drivers of the innovation systems and their influence on growth of productivity between two groups of countries with different institutional settings in the period of the financial and economic crisis in Europe. The first group consists of a selection of CEE (Central and East European) countries. The second group consists of Germany, Norway, Spain and Portugal. In order to measure the role of innovation on productivity growth we use the CDM (Crépon, Duguet and Mairesse) model of simultaneous equations. The model directly links R&D engagement and intensity to innovation outcomes measured either as process or product innovation, and then estimates the effectiveness of the innovative effort leading to productivity gains. The company-level dataset is drawn from the Community Innovation Survey (CIS10). There is one common result for the two groups, that in general the probability for a typical firm to engage in innovation increases with its size. The other factors influencing the decision process differ. A firm’s productivity increases significantly with innovation output, but only with firms operating in Western Europe. The results for firms in Central and Eastern Europe indicate that these countries’ national innovation systems are vulnerable, and in periods of crises higher level of innovation output leads to lower labor productivity. Therefore, systemic faults in the national innovation systems result in their unsustainability, especially visible in periods of crises, as was the case in 2008–2010. When it comes to Western European countries, the financial and economic crisis did not have negative effects on their innovation systems as innovation activity resulted in higher levels of labor productivity. Regarding the CEE group of countries, the crisis influenced both the innovation process and labor productivity as a whole negatively.

Does it matter where you live? Examining the impact of gender, gender egalitarianism and city context on the work–family interface

2020 ◽  
Vol 9 (3) ◽  
pp. 391-410 ◽  
Author(s):  
Ujvala Rajadhyaksha
Keyword(s):  
Emerging Market ◽  
Research Question ◽  
Rapid Urbanization ◽  
Men And Women ◽  
Content Type ◽  
Gender Egalitarianism ◽  
Urban City ◽  
And Gender ◽  
Work Family ◽  
The Impact

PurposeThis study asks the following research question: does “city” context interact with gender and gender egalitarianism (GE) to impact the positive (WFPOS – work–family positive spillover) and negative (WFC - work-family conflict) aspects of the work–family (WF) interface of working men and women in India.Design/methodology/approachMANCOVA analysis is used to examine data gathered from 250+ working men and women from eight different Indian cities that were ranked based on the 2018 Ease of Living (EOL) Index.FindingsThere was no significant main effect of gender on WF interface variables. Low levels of GE and low EOL were significantly associated with high levels of WFC and WFPOS. There was a significant interaction between gender, GE and city. An examination of within-gender differences indicated that in low-EOL cities, men and women with low values of GE (traditionals) had significantly higher time-based WFC than men and women with high values of GE (egalitarians). Additionally, traditional women reported higher WFPOS than egalitarian women. In high-EOL cities, traditional men reported significantly higher time-based WFC than egalitarian men. There were no significant differences between women.Research limitations/implicationsGender, along with gender-related attitudinal and contextual variables, does a better job of explaining variance in the WF interface as compared to gender alone. Results support the notion that high WFPOS and high WFC can co-occur in contexts of change and transition such as rapidly growing urban centers.Practical implicationsThe results have significance for work–family practitioners as well as urban city planners looking to improve the quality of work–life in India and other similar emerging market economies experiencing rapid urbanization.Originality/valueThe study extends work–family research by bringing aspects of urban planning and gender studies into an understanding of the work–family interface.

Firm innovation and access to finance: firm-level evidence from India

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Parneet Kaur ◽  
Navneet Kaur ◽  
Paras Kanojia
Keyword(s):  
Small Firms ◽  
Small And Medium Enterprises ◽  
Emerging Market ◽  
Innovation Performance ◽  
Innovation Activity ◽  
Firm Level ◽  
Firm Innovation ◽  
Content Type ◽  
Explanatory Variables ◽  
The Impact

Purpose Based on 9,281 firm-level survey data on micro, small and medium enterprises (MSMEs) in India, this study aims to investigate how access to different finance sources and collateral requirement facilitates the firm’s innovation activity across industries. Design/methodology/approach This paper used ordered logit regression models using Stata software for explanatory variables to measure the impact of explanatory variables on firm innovation performance. Firms’ innovation performance is measured through the aggregate innovation index obtained by adding up the no. of “new-to-firm” activities. Findings The empirical results reveal that external sources of funding impact innovation activity than other financing sources. Also, the requirement of collateral for financing impacts innovation performance significantly. This paper finds that firms funded by state-owned banks or government agency are more actively engaged in innovation activities. The firm’s size, ownership structure and location of the firm also show the varying innovation performance. This paper found variation in innovation performance across industries as well. Practical implications First, the present study underlines the significance of funding sources. Second, minimizing the need for collateral to obtain external finance boosts small firms’ innovation activity and will also trigger overall economic growth. Finally, while making policies for ownership transformation of state-owned institutions, policymakers should discuss these policies’ impact on innovative firms. Originality/value What facilitates innovation performance in an emerging market is missing in the literature for MSMEs, largely due to lack of data. It is reasonable not to generalize innovation knowledge in large firms to small firms because of the constraints, particularly MSMEs face.

scholarly journals The Impact of Financial Development on Carbon Emissions: A Global Perspective

2019 ◽  
Vol 11 (19) ◽  
pp. 5241 ◽  
Author(s):  
Chun Jiang ◽  
Xiaoxin Ma
Keyword(s):  
Developing Countries ◽  
Financial Development ◽  
Carbon Emissions ◽  
Emerging Market ◽  
Generalized Method Of Moments ◽  
Specific Effect ◽  
Developed Countries ◽  
Global Perspective ◽  
Empirical Results ◽  
The Impact

Financial development has been deemed to be an important factor influencing carbon emissions; however, the specific effect generated by financial development is still disputed. In this study, we examined the relationship between financial development and carbon emissions based on a system generalized method of moments and the data of 155 countries, and we further analyzed the national differences by dividing the sample countries into two sub-groups: developed countries, and emerging market and developing countries. The empirical results indicated that from a global perspective, financial development could significantly increase carbon emissions, and the analysis of the emerging market and developing countries reached the same conclusion; however, the results indicated that for developed countries, the effect of financial development on carbon emissions is insignificant. A series of robustness checks were conducted and confirmed that our empirical results were reliable. We suggest that policymakers in emerging market and developing countries should carefully balance financial development and environmental protection, as financial development will promote carbon emissions before countries reach a relatively high development level.

scholarly journals Do International Capital Flows, Institutional Quality Matter for Innovation Output: The Mediating Role of Economic Policy Uncertainty

2021 ◽  
Vol 7 (2) ◽  
pp. 141
Author(s):  
Md Qamruzzaman ◽  
Tahar Tayachi ◽  
Ahmed Muneeb Mehta ◽  
Majid Ali
Keyword(s):  
Economic Policy ◽  
Institutional Quality ◽  
Empirical Literature ◽  
Policy Uncertainty ◽  
Causality Test ◽  
Economic Policy Uncertainty ◽  
Long Run ◽  
Short Run ◽  
Innovation Output ◽  
The Impact

The determinants of innovation output in empirical literature were extensively investigated by considering diverse sets of variables. Still, the impact of economic policy uncertainty on innovation output is yet to unleash. To mitigate the existing research gap, the study investigated the association between EPU and innovation output, considering a panel of 22 countries over 1997–2018. The study employed a dynamic panel quantile regression and system-GMM specification causality test for discovering elasticity and directional association both in the long-run and the short-run. Study findings disclosed negative statistically significant effects running from EPU to innovation output except innovation measured by R&D. Moreover, institutional quality and FDI exposed positive and statistically significant association with innovation output. In terms of directional causality, unidirectional causality running from EPU and FDI to innovation output was established, whereas bidirectional causality was established between institutional quality and innovation output.

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