Sleep late? Pre-reform institutional embeddedness and entrepreneurial reinvestment of private firms in China’s transition economy

Purpose This study aims to introduce an important temporal dimension to the research on institution and entrepreneurship in the transition period. This study develops the concept of pre-reform institutional embeddedness, and explores its impact on entrepreneurial reinvestment of private firms in China’s transition economy. Design/methodology/approach The authors used secondary data of a nationally representative sample of China’s private firms collected in the early days of the institutional transition period and applied ordinary least squares regressions and the Baron and Kenny approach to test the theoretical model. Findings Pre-reform institutional embeddedness has a negative impact on entrepreneurial reinvestment of private firms in the transition period. This relationship is mediated by guanxi-induced employment, such that pre-reform institutional embeddedness promotes guanxi-induced employment, which in turn discourages a private firm to reinvest. Additionally, the negative impact of guanxi-induced employment on entrepreneurial reinvestment is reduced when decentralization of decision-making is used. Practical implications First, entrepreneurs should be aware of pre-reform institutional embeddedness’ negative influence on firms’ risk-taking abilities and incentives. Private firms already constrained by this connection could alleviate the negative impacts through a widespread delegation of decision-making authority. Second, policymakers should be cautious about improper government-business relationships, which may discourage private firms from fully pursuing entrepreneurial growth opportunities. Originality/value This paper makes theoretical contributions to the literature on entrepreneurial reinvestment, embeddedness perspective of entrepreneurship and imprinting theory.

Towards sustainable development in a transition economy: The case of eco-industrial parks in Ukraine

Sustainable development for transition economies is an opportunity to accelerate and complete socio-economic transformations and at the same time an additional responsibility in situations of instability and uncertainty. The chances for strengthening sustainability are growing within the organized innovation space, which makes it possible to model scenarios of ecologically oriented development and, with the help of state and international support, to start their implementation. The paper aims to analyze the possibilities and directions of creating eco-industrial parks in a transition economy. It uses an innovative helix model in its triple, quadruple and quintuple variations for functioning and sustainable development of industrial parks in Ukraine.The study adopts a descriptive comparative analysis of data on the planning and implementation of economic, primarily environmentally relevant, activities. Based on the analysis and description of exogenous factors, in particular within GEIPP, a SWOT table on the potential of eco-industrial parks was formed. The directions of development of industrial, technological, and scientific parks in Ukraine are determined using the quintuple helix model on the plane of “knowledge-innovation”, in particular on quadruple helix transition to sustainability through the simultaneous development of socially oriented and environmental activities. Within the legislation, it is proposed to approve a sustainable form of artificially separated innovation parks, namely the “eco-industrial park”. One of the conditions for advanced sustainable development in Ukraine is the creation of a national program to support the transformation of innovation parks into their environmental versions 2.0 and 3.0, as well as investing in greenfield eco-industrial parks.

Assessment of asbestos and asbestos waste quantity in the built environment of transition country

Managing asbestos streams in developing and transition countries is particularly challenging. Deficiencies are often present for adequate procedures for the management of asbestos waste; solid quality data or databases on the quantities of asbestos production and usage are missing and asbestos inventories or the registry of asbestos-related diseases following European Union (EU) or other regulations are not in place. This paper aims to develop a model for determining and assessing the quantity of asbestos in the built environment of a transition country. Quantities of asbestos products and life expectancy of those products were assessed to develop a model that forecasts flows and stocks of asbestos products and wastes. The overall objective is to evaluate the model and show the manifestation of asbestos in the waste stream in a case study on a country with a transition economy, such as Serbia. Results show that total quantities of asbestos fibre consumption are approximately 0.5 million tonnes; the largest amount of waste generation is expected in the 2020s. Therefore, it is necessary to prepare for the forthcoming quantities of waste by improving legal procedures, implementation of existing regulations, and provision of economic resources. An important link for the adequate management of asbestos waste is to raise public awareness of the dangers and importance of proper and timely disposal of asbestos products.

Relationship between Google search and the Vietcombank stock

The overall objective of this research is to analyze the financial condition of failing companies prior to bankruptcy, in comparison with non-failing companies, which are matched on the industry, size, and time-period. The sample consists of 168 SMEs from the wholesale and retail industry, whose financial statements were analyzed for the 2011-2015 period. The analysis is primarily based on the ratio analysis and the models developed for bankruptcy prediction and financial statement manipulation. Mann-Whitney U test is used to compare differences between failing and non-failing SMEs for a set of twenty variables. Research findings indicate that there is a significant difference between failing and non-failing SMEs, especially in accruals, asset quality, leverage, profitability, and liquidity. For the very first time in the transition economy of CEE Bosnia and Herzegovina, the pre-bankruptcy behavior of failing SMEs is analyzed, providing insights into potentially manipulated areas, which represent the main contribution of the research.

The Impact of Social Media Marketing on Purchase Intention in a Transition Economy: The Mediating Role of Brand Awareness and Brand Engagement

The study aimed to investigate the impact of social media marketing on purchase intention among consumers in Kosovo as a transition economy. The survey research has been conducted with a sample of 334 respondents in Kosovo, using an online survey tool for response collection. Structural equation modeling was used for assessing the proposed theoretical model. The bootstrapping technique was used to test the hypotheses and the mediating effects of brand awareness and brand engagement. The findings revealed a positive indirect impact of social media marketing on purchase intention and a full mediating effect of brand awareness and brand engagement in the relationship between social media marketing and purchase intention. The contribution of this study is that it provides insights into the impact of social media marketing on brand awareness, brand engagement, and purchase intention in transition economies. Moreover, it highlights the impact of social media marketing on enhancing brand awareness, brand engagement, and purchase intention in emerging economies in general and in particular in Kosovo. On a practical level, research results provide customers’ insights relevant for designing effective social media marketing strategies for their potential prospects in transition economies. This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

Financial statement manipulation in failing Small and Medium-Sized Enterprises in Bosnia and Herzegovina

The overall objective of this research is to analyze the financial condition of failing companies prior to bankruptcy, in comparison with non-failing companies, which are matched on the industry, size, and time-period. The sample consists of 168 SMEs from the wholesale and retail industry, whose financial statements were analyzed for the 2011-2015 period. The analysis is primarily based on the ratio analysis and the models developed for bankruptcy prediction and financial statement manipulation. Mann-Whitney U test is used to compare differences between failing and non-failing SMEs for a set of twenty variables. Research findings indicate that there is a significant difference between failing and non-failing SMEs, especially in accruals, asset quality, leverage, profitability, and liquidity. For the very first time in the transition economy of CEE Bosnia and Herzegovina, the pre-bankruptcy behavior of failing SMEs is analyzed, providing insights into potentially manipulated areas, which represent the main contribution of the research.

SOCIAL MEDIA MARKETING AND PURCHASE INTENTION: EVIDENCE FROM KOSOVO

The main objective of this study was to explore the relationship of social media marketing and purchase intention among consumers in Kosovo as a transition economy. The study used a structured questionnaire to collect the primary data and collected a sample of 334 responses from participants in Kosovo, using google forms as an online survey tool. In order to test the proposed research model, structural equation modelling was used. The hypotheses and the mediating effects of brand awareness and brand engagement were tested using the bootstrapping method. The findings revealed a positive indirect impact of social media marketing on purchase intention. They also showed that brand engagement fully mediates the relationship between social media marketing and purchase intention, whereas brand awareness does not mediate the relationship between social media marketing and purchase intention. This study contributes to the literature by providing insights of the impact of social media marketing on brand awareness, brand engagement, and purchase intention in transition economy such as Kosovo. On a practical level, research results provide companies with customer insights relevant to designing effective social media marketing strategies for their potential prospects in transition economies.

The moderating role of subsidiary size on the association between institutional distance and subsidiary’s access to complementary local assets: evidence from Vietnam

Purpose This study aims to investigate the moderating effects of subsidiary size on the association between institutional distance and subsidiary’s access to complementary local assets (ACLA) in a transition economy. Design/methodology/approach The data of 1,027 subsidiaries located in Vietnam were extracted from the survey of General Statistics Office of Vietnam. Hausman’s test shows that random effect model is appropriate to estimate the moderating effects of subsidiary size on the association between the institutional distance and subsidiary’s ACLA. Findings The findings revealed that the greater formal and informal institutional distances between home and host countries, the lower a subsidiary’s ACLA in a transition economy. In addition, larger subsidiaries’ ACLA in a more formal and informal institutional distant country are higher than smaller subsidiaries. Research limitations/implications Multinational enterprise (MNEs) have a continuous need to use their foreign subsidiaries operating in host countries, particularly those with transition economies, to overcome institutional differences to ACLA in a transition economy. In addition, subsidiaries should be invested with greater resources to collaborate with local partners to serve for accessing to complementary local assets in transition economy characterized by an uncertainty institutional environment. Originality/value By integrating the institutional theory and the resource-based view, the study developed a theoretical model about the moderating role of subsidiary size on the association between institutional distance and subsidiary’s ACLA in transition economy. The findings confirmed that simultaneously applying the institutional theory and the resource-based view to investigate location-specific advantages exploitation of subsidiaries is relevant not only in developed economies but also in a transition economies.