Does Rent-seeking Affect Environmental Regulation? Evidence from The Survey Data of Private Enterprises in China

Resource utilization not only meets the needs of economic development, but also has a far-reaching negative impact on the environment. Environmental regulation is regarded as the key measure to solve environmental pollution. However, the rent-seeking behavior of local enterprises will seriously weaken the implementation effect of environmental regulations. Under the background of the development of big data era, the massive micro enterprise data provided by China's private enterprise survey database provides favorable conditions for this paper to study its impact effect from the direction of big data. This paper uses OLS model and Tobit model to investigate the impact of rent-seeking on the implementation effect of environmental regulation. The results show that environmental regulation will make honest enterprises actively reduce output to control the emission level. However, rent-seeking enterprises will further expand their output to gain greater profits because they are sheltered by local governments.

The impact of Court Fairness on Innovation: Firm-Level Evidence from World Enterprise Survey

Innovation works as an engine of growth for the country and the backbone for the performance of the firm. Pakistan is a developing country and it is lagging behind in terms of innovation activities in the region. In Pakistan, due to the weaker quality of institutions, court fairness is biased. The objective of the study was to measure the effect of court fairness on the innovation of the firm in the case of Pakistan using the World Enterprise Survey. The results of the study indicate that court fairness increases the likelihood of innovation. From the perspective of the policy proposal, it is suggested that proper reforms in the judicial system must be initiated and it is the utmost need of the society, firms, and the nation as a whole.

Formal and Informal Institutions: The Independent and Joint Impacts on Firm Innovation

ABSTRACT We study the impact of formal and informal institutions perceived and experienced by firms on their innovation using the 2012 World Bank Enterprise Survey data in China. We propose a framework to identify different innovator types of firms. Our analysis shows that (1) perceived constraints from the governmental system make firms more likely to be innovators than non-innovators; (2) perceived constraints from the legal system make firms more likely to be imitators than innovators; (3) lack of formal finance makes firms more likely to be non-innovators than innovators; (4) prevalence of bribery makes firms more likely to be non-innovators than innovators but less likely to be innovation pretenders than innovators. Our study enriches institutional theory and innovation research by establishing a framework that encompasses multiple dimensions of formal and informal institutions perceived and experienced by firms and the impacts of such perception and experience on firms’ propensity to become certain type of innovator.

Media multiplicity and collaborative innovation with suppliers: evidence from China

PurposeBased on media choice theories and real option theory, this study aims to explore the role of communication media portfolio in achieving collaborative innovation with suppliers.Design/methodology/approachUsing data of the Study of Competitiveness, Technology and Firm Linkages 2002 collected by the World Bank and the Enterprise Survey Organization of the Chinese National Bureau of Statistics, this study employed logit model to test the hypotheses. Moreover, some robustness analyses were conducted.FindingsThis study suggests that media multiplicity increases the probability for a firm to achieve collaborative innovation with suppliers on the basis of real option theory. Furthermore, distance from the suppliers and relationship formality make media multiplicity further important in collaborative innovation with suppliers.Originality/valueThrough investing how communication media portfolio affecting collaborative innovation with suppliers and the contingency factors, this study complements existing studies just concentrating on supplier capabilities, relationships with suppliers and characteristics of supplier network. Moreover, this study contributes in the information system field by exploring the role of media portfolio rather than individual media.

Study on the Impact of Institutions on the Labor Productivity of Private Enterprises in Vietnam through the Spillover Effect from State-Owned Enterprises

The paper analyzes the impact of institutions on the labor productivity of small and medium-sized private enterprises through the spillover effect from state-owned enterprises (SOEs). The authors used data samples from three datasets: (i) The Annual Enterprise Survey conducted by the General Statistics Office of Vietnam (GSO) from 2010 to 2018; (ii) Institutional data (PCI) published by the Vietnam Chamber of Commerce and Industry (VCCI) from 2010 to 2018; (iii) GSO 2012 I-O balance sheet and a set of tabular data containing 666,221 observations at the enterprise and provincial levels in Vietnam from 2010 to 2018, including both listed and unlisted enterprises. The model’s experimental result shows that institutional improvement boosts labor productivity of domestic private enterprises through a horizontal and forward spillover channel from SOEs. Through the backward spillover channel from SOEs, how institutional improvement affects the labor productivity depends on the degree of backward spillover channel from SOEs.

Technological- and Non-Technological Innovation During the Growth Phase of Industry Life Cycle: An Evidence From Vietnamese Manufacturing Enterprises

In the context of Industrial 4.0, Vietnam has emerged to play a critical role in the global supply chain while facing intense competition and fast changes. However, what drives manufacturing enterprises in Vietnam to innovate themselves and how well they perform in coping with business obstacle remains one of the central questions in the extent of studies. Therefore, this research primarily attempts to establish how innovation investment and obstacles affect technological and non-technological innovations, especially in the growth phase of the industry life cycle (ILC), with an analysis of available data obtained from the General Statistics Office of Vietnam and World Bank Enterprise Survey data with the use of descriptive statistics and regression analysis. The outcome of this article highlights that researchers and practitioners should consider the importance of the industry life cycle in the choice of technological or non-technological innovation through third significant contributions. First, the innovation investment is driven by R&D, and formal training enables both technological- and non-technological innovation. Second, the innovation obstacle related to finance, policy, competition, and regulation directly impacts the choice of innovation activities. Third, this study demonstrates that the firm’s engagement in technological- and non-technological innovation in line with innovation investment can help maintain successful post-innovation performance.

PRODUCT INNOVATION AS THE CAUSE OF EXPORT PROPENSITY IN THE CAUCASUS: EMPIRICAL EVIDENCE FOR ARMENIA, AZERBAIJAN AND GEORGIA

Despite the extensiveness and abundance of empirical research in the existing literature, there is no clear view or position with respect to the role of innovation in exporting, especially regarding the heterogeneous impacts of different types of innovations (product, process, organizational and marketing innovations) on exporting. The objective of this article is the empirical verification of innovation as the cause of export propensity in firms from the South Caucasian countries (Armenia, Azerbaijan and Georgia). The empirical investigation is based on the data collected by the Enterprise Survey (World Bank Microdata), conducted among companies located in the Southern Caucasus. Seven hundred and seventy-six firms were selected through an appropriate procedure, including 279 from Armenia, 236 from Azerbaijan, and 261 from Georgia. Logit regression models were applied to determine the chances of exporting, depending on the type of innovations implemented by each company. The results of binomial logistic regression analysis demonstrate that product innovations play an important role in explaining SMEs’ export propensity in the South Caucasian countries. Moreover, the likelihood of export is seen to be positively related to the share of foreign capital in company structure. The general level of economy innovativeness in the Caucasus is low, but the share of foreign ownership in companies under consideration was relatively high, so the foreign investors probably played a key role in the innovations implemented by local ventures. It is most likely due to Armenia, Azerbaijan and Georgia going through an early stage in economic transition, in which soft innovations (organizational and marketing innovations) lag behind hard innovations. There is an evident lack of empirical studies of the role of innovation in the development of export in emerging countries, including the South Caucasian countries, and it still remains largely underexplored; therefore, the novelty of this research lies in the exploration of the Caucasian countries as emerging markets.

Determinants of Informal Competition faced by Formal Firms inPakistan: AnEmpirical Evaluation from 2013 World Bank Enterprise Survey

There is no denying in the fact that informal sector of any economy offersemployment flexibility by absorbing a pool of labor force. However, the rapid progression of the informal sector in Pakistan andthe consequent increase in competition faced by the formal firms urge a need to understand the dynamics of informal competition.The current study is an attempt toidentifythecorefactors responsible for the incidence of informal competition faced by formal firms in Pakistan,along with an investigation of the determinantsof the severity of thiscompetition.The study investigates the variables of firm’s characteristics and regulatory measures in order to examine the incidence and severity of informal competition faced by formal firms employing World Bank Enterprise Survey 2013 (WBES).The study not only conducts frequency analysis of the variables but based on the nature of data;it uses thelogit and ordered logit techniques todetermine the significant variables.The results of the study show that out of totalof 1125 formal firms used inthe analysis, 583 firms (46.75%) reported facing informal competition. Among these firms facing informal competition, only 16.98% reported informal competition as no obstacle in terms of its severity, however, rests of the firms (almost 83 %) consider the severity of informal competition as an obstacle in one or the other form and consider informal competition as a threat to their businesses.The result of logit model shows thatcharacteristics of formal firms resembling more to the informal firms in terms of size and locality have more likelihood of facing the informal competition. However, indetermining the severityof informal competition through the ordered logit model, theregulatory variables such as taxation, licensing & permits and corruption are found to be more significant and relevant.These results call on to introduce regulatory reforms making the regulatory system less burdensome and better enforcement mechanism of those reforms. There’s a need to create ease for the existing formal firms to fulfill the regulatory requirements as well as encourage the informal firms to join the mainstream formal setup of economy. Furthermore, the current research can be extended by availing the latest datasettoexplore the dynamics of informal sector andthe resultant competitionfor the formal firms in an ever-changingbusiness environment.

The impact of firm size on the performance of Vietnamese private enterprises: A case study

This article investigates the effect of firm size on the performance of Vietnamese private enterprises. Based on the data from the Annual Enterprise Survey from 2009 to 2018, this study uses an ordinary least-squares regression model (OLS) to point out the effects of firm size (growth rate, total assets, and total labor) on the performance of Vietnamese private enterprises in both static and dynamic states. According to the results of the quantitative model, total assets are the biggest factor for determining firm performance, followed by total labor and growth rate. The results highlight the issue in Vietnamese private enterprises development in terms of scale, despite the fact that their number is growing, as the scale of enterprises decreases (the proportion of micro and small enterprises increases, but the proportion of medium and big enterprises decreases). Besides, the disadvantages of scale also negatively affect the development process of Vietnamese private enterprises, including accessing capital, increase in production or productivity, business expansion, and improving competitiveness. AcknowledgmentsThis research is supported by the National Science Project “Development of Private Enterprises in the Southwest Region in the new context” (KHCN-TNB/14-19/X15).

THE IMPACT OF IDEA MANAGEMENT SYSTEMS ON INTELLECTUAL RESOURCES DEVELOPMENT

Topicality/Problem. Idea management systems (IMS) are manageable, systematic tools, tool kits or complex systems that helps to generate and evaluate ideas and are an important element of organizational development. Many well-known organizations (e.g. Volkswagen, Microsoft, GE Healthcare, Procter and Gamble, Boeing, Siemens, etc) are successfully applying web-based IMS. But there is no research that explores the impact of web-based IMS on intellectual resources development. Research aim – to research the impact of IMS on intellectual resources development and to provide recommendations to practitioners for its broader assistance in enterprises to ensure innovation acceleration. Methodological approach. The empirical research was based on 447 enterprise survey applying. The research results show the following results: IMS application has resulted in a new intellectual resource, in a patents and improved innovation acceleration.Research limitations. Survey research may limit the generalisability of the result, because the survey target group is commercially available web-based IMS applied enterprises.Originality/value. The research based on the empirical data analysis contributes to understanding the directions and significance of IMS impact on intellectual resources development.